FAQs - Water & Sewerage charge

The Water Reserve is the funds collected through water supply fees and charges, to meet the costs of operating and upgrading the water supply network.

Funds generated by water supply fees and charges can only be used for the provision of water supply and the associated infrastructure.

Harmonisation is the process of ensuring fees and charges are calculated consistently throughout the region. It is a necessary part of the amalgamation of the Armidale Dumaresq and Guyra Shire local government areas, which had different fee structures and levels.

The harmonisation process in 2020/21 will include water, waste and sewer fees and charges. It will bring a decrease in charges for some customers and an increase for others, to keep the overall Water and Sewerage funds at levels consistent with previous years so Council can operate and upgrade infrastructure so it is fit for future generations.

Council has been progressively implementing the harmonisation of fees and charges since the amalgamation of the Guyra Shire and ArmidaleDumaresq local government areas in 2017.

The harmonisation of water, waste and sewerage fees and charges is among the final stages of this process. It will adjust the water and sewerage fees and charges paid by residents and businesses from the 2020/21 financial year.

Guyra residents and many Guyra-based businesses would have reduced sewerage charges under the proposed charges for 2020/21.

Guyra residential ratepayers would save $162 on their annual sewerage access fee and many Guyra businesses would switch from a higher access charge to a $465 minimum rate.

Armidale households would experience a small increase of $15 to their annual sewerage charge. The much larger number of households in the Armidale area, compared to Guyra, means the adjustment of charges will be much less for Armidale residents to keep the Sewerage Reserve close to historic levels.

There are two main reasons for a proposed increase in water supply fees and charges for 2020/21:

• The effects of the ongoing drought and consequent reduction of water consumption by households and business, in line with the Water Restrictions still in place
• The urgent need to upgrade the ageing water infrastructure in Guyra and Armidale, to avoid failures in the system and prevent interruptions in supply to customers

The community has done an incredible job responding to the Level 5 water restrictions in place and reducing its water consumption during the drought. While that has been extremely valuable in protecting our region’s water supply, the reduced water sales have had a huge impact on Council’s Water Reserve to operate and maintain our water supply assets.

Council’s actions to combat the drought also brought additional costs, including a range of water saving measures and the development of a ground water supply network at Guyra.

All these factors contributed to reducing the Water Reserve by around $6 million in 2019/20 and the impact is expected to continue in 2020/21.

It is important to maintain the levels of the Water Reserve to ensure the necessary funds are available for Council to operate and upgrade the region’s water infrastructure, to maintain current water supply standards and ensure the network is fit for future generations.

Importantly, the increases are not aimed at generating more funds for the Water Reserve compared to previous years. They will merely restore the fund close to pre-drought levels, when average water consumption was much higher.

In addition, the drought has further demonstrated that Armidale and Guyra's water infrastructure is ageing and requires significant and urgent investment to avoid failures.

Council cannot rely on State Government to fix its water assets. Water fees and charges are being adjusted to undertake asset renewal, be water secure for residents and businesses, and develop water infrastructure fit for future generations.

The community has done an incredible job responding to the Level 5 water restrictions in place and reducing its water consumption during the drought. While that has been extremely valuable in protecting our region’s water supply, the reduced water sales have had a huge impact on Council’s Water Reserve to operate and maintain our water supply assets.

Council’s actions to combat the drought also brought additional costs, including a range of water saving measures and the development of a ground water supply network at Guyra.

All these factors contributed to reducing the Water Reserve by around $6 million in 2019/20 and the impact is expected to continue in 2020/21.

Increasing the charges apply a greater value to our water, recognising it as a scarce resource and encouraging wise use. Importantly, the increases are not aimed at generating more funds for the Water Reserve compared to previous years. They will merely restore the fund close to pre-drought levels, when average water consumption was much higher.

This will not only enable us to properly maintain our water assets, now and for the long term. It will serve to ensure that all we have achieved in water conservation is not lost, and will equip us to deal with the ongoing effects of the drought that continues to keep our dam water storage at persistently low levels.

The drought has further demonstrated that Armidale and Guyra's water infrastructure is ageing and requires significant and urgent investment to avoid failures.

Increased water charges will help enhance our future water security by:

• Applying greater value to our water, recognising it as a scarce and precious resource and encouraging wise use.   It further discourages people from wasting water.
• It will help restore Council’s Water Reserve, so funds are available for initiatives for improved efficiencies in water supply management.
• It will help ensure funds are available for necessary upgrades to the ageing water infrastructure in Guyra and Armidale, to avoid failures and inefficiencies in the system.

Before the drought, the average household in the Armidale region consumed about 200 kilolitres in a year (or 220 litres per person per day) and received a bill of about $745.per annum. That typical household has reduced its consumption to approximately 146 kL/year (a 30% reduction equating to 160 litres per person per day), because of water efficient behaviour embraced by residents during the ongoing drought. The consumption of 146 kL/year under the proposed 2020/21 fees and charges would result in a typical annual bill of $863.

The levels of water fees and charges beyond 2020/21 will depend on prevailing water consumption levels  and the projected costs of operating and upgrading the water supply network, to ensure it continues to meet the needs of the community.

Public feedback indicates strong support for the region’s water consumption levels to remain below our average usage levels before water restrictions were implemented in 2019 – to help increase water security for our region. Water fees and charges will need to be adjusted in response to those consumption levels to maintain the Water Reserve close to its historic levels.

While reduced water consumption levels bring some reductions in operating costs, they are offset by additional challenges of transporting and treating water during the drought.   Council has undertaken a number of measures during this drought to maintain security of supply and water quality.

We have received valuable government assistance for a number of measures to improve water security for our region.

The NSW Government provided $12.375 million to construct the Malpas Dam to Guyra pipeline, which was officially launched last October.

The NSW Government has also committed $5.77 million in State Government funding for an $11.5 million upgrade of the pipeline from Puddledock Dam, to improve access to this back-up supply if there is an interruption to the supply rom Malpas Dam.

However, we cannot reply on future State Government support to fix our region’s water assets. Water fees and charges are being adjusted to undertake asset renewal, be water secure for residents and businesses, and develop water infrastructure fit for future generations.