Wellington metro amalgamation to cost $270m, deliver three times the savings over 25 years
A financial analysis suggests that amalgamating Wellington's local councils into a metro authority could cost $270 million but generate over $900 million in savings over 25 years. Local leaders are currently evaluating these options ahead of an August deadline.
Why it matters
The proposal represents a significant shift in local government structure, aiming for long-term fiscal efficiency at the cost of high initial investment.
Setting up a metro authority encompassing Wellington, Porirua and the Hutt Valley could cost its residents $269 million - but projected savings will only come over the next 25 years.
A new financial analysis estimates efficiencies of $930m over 25 years, or a net $159.80 a year for each property.
The mayoral forum of the nine Wellington and Wairarapa leaders commissioned advisory firm MartinJenkins for the indicative analysis, before their respective local councils decide the details of the final plan that must be sent to the Government by its August 9 deadline.
The firm already briefed Wellington and Wairarapa councillors earlier this week, with Wellington City's councillors discussing the details at open briefings on Thursday.
Kāpiti mayor Janet Holborow, whose council is about to decide whether to ask for a standalone Kāpiti Coast unitary authority in the final proposal, said there was limited financial benefit across the board.
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