Each delivery model’s impact on rates, debt, borrowing capacity, and long-term sustainability has been evaluated. We have assessed whether the three delivery models are affordable, fiscally responsible, and capable of meeting Christchurch’s water services delivery needs without compromising service levels or financial stability.
Between FY2026/27 and FY2027/28, both CCO models incur higher rates due to additional governance and stranded overhead costs.
From FY2028/29 onward, efficiency gains in the CCO models offset initial increases, resulting in lower rates compared to the in-house model.
The net debt to operating revenue benchmark compares planned net borrowing to a quantified limit. It is an indicator of debt affordability and prudence and is assessed at an organisational level. The following graphs outline the net debt to operating revenue and available debt headroom of both the Christchurch City Council and the Water Services CCO under each of the water services delivery models.
Under an in-house delivery model:
The Three Waters CCO net debt to operating revenue
The Two Waters CCO net debt to operating revenue
The Council’s net debt to operating revenue
Please note that the financial assessment modelling is based on a number of key assumptions. See pages 101–108 of our Indicative Business Case for more information on these.
The full financial assessment is also available on page 63 of the Indicative Business Case.
