Providing clarity on recycled water supply
The City is extremely disappointed that the Kalgoorlie-Boulder Racing Club (KBRC) and Racing WA (RWA) have decided to change the location of this season's first race meet.
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The City is the sole owner and operator of recycled water services to Kalgoorlie-Boulder and is the largest operator in Western Australia of its kind, outside of the Water Corporation.
Current wastewater services involves the collection of sewage through an underground pipe network across the City. The network connects to the City’s Waste Water Treatment Plant where the waste is processed.
Utilising primary and secondary treatments, the City is able to beneficially re-use treated water by irrigating parks and gardens and supplying water to local users.
The City is committed to ensuring the fair and equitable distribution of recycled water for the benefit of the entire community.
Council considers the short, medium, and long-term strategies when it comes to the equitable and sustainable allocation of recycled water.
Recycled water is distributed to local parks, gardens, and sporting ovals, as well as users including schools, not for profit organisations and various industries.
The City has supply agreements with external users which are reviewed annually (or as determined in the agreement). These agreements are based on their required annual allocation of recycled water.
All recycled water users need to meet the Department of Health’s water re-use requirements in order for the City supply them with recycled water.
The City proactively reviews water usage on an ongoing basis in response to pro-longed dry weather, levels of stormwater reserves in dams and to ensure adequate future forecasting.
The City has supply agreements with external users for the provision of recycled water. The rate for this is part of the City's Schedule of Fees and Charges which is reviewed annually by Council.
In the past, several irrigators had access to an unlimited supply of recycled water, heavily subsidised by the City. However, with increasing demand and changing forecasts, the City has to take a more equitable and sustainable approach to recycled water use and distribution.
Under the City's 2024/25 Fees and Charges the rate for users with recycled water agreements is $2.50 per kilolitre.
The City does not profit from this rate. This rate represents a break-even approach for the City to produce and provide recycled water to users.
The City does not profit from charging users $2.50 per kilolitre (as per the 2024/25 Fees and Charges).
This rate represents a break-even approach for the City to produce and provide recycled water to users.
The City can provide recycled water under commercial agreements, which are negotiated with the relevant parties. Under a commercial agreement the rate reflects the cost of supply and is charged regardless of whether the contracted volume is fully utilised.
Commercial agreements are beneficial for the City as they generate a more secure revenue stream for the City over a longer term, therefore reducing the burden on ratepayers.
At present, the City only has one commercial supply agreement which was adopted by Council on 26 July 2021. The City has not entered into other commercial agreements at this point in time to ensure continued supply of recycled water to community users.
Following the completion of the Water Bank Project further agreements may be considered based on a supply and demand analysis.
The fees charged for recycled water reflect the cost of producing and supplying recycled water.
Historically, the City significantly subsidised the cost of providing recycled water and allowed irrigators to use unlimited amounts of recycled water, which was not sustainable in the long-term.
Recycled water is a vital resource for Kalgoorlie-Boulder. Due to low rainfall and challenges of growing demand, the City's fee reflects a break-even cost to produce and supply recycled water.
The City does not profit from selling recycled water, and only breaks even from producing and supplying it. The current rate of $2.50 is as low as it gets in our region, and as inland as we are.
While some other local governments may charge lower fees for recycled water, this is often because they have limited storage capacity and need to dispose of the water, resulting in cheaper prices. However, these situations are not directly comparable to ours. In Kalgoorlie-Boulder, recycled water is a scarce and valuable resource that must be managed carefully and distributed fairly among all users who rely on it.
No. The City has been in a position to supply recycled water to the Kalgoorlie-Boulder Racing Club (KBRC) since 2024. However, the KBRC and Racing WA (RWA) were unable to reach an agreement that did not impose further financial impacts on the City (and therefore Kalgoorlie-Boulder ratepayers).
KBRC's recycled water agreement was over 10 years old, having not been reviewed (or renewed) since 2014.
In February 2023, the City informed the KBRC that it was reviewing recycled water allocations and existing agreements, given the impact of low rainfall and low levels of water capture forecasted.
The City could not simply continue to provide an unlimited supply of recycled water any longer. The KBRC were also paying a subsidised rate of 0.32 per kilolitre, this meant ratepayers were effectively paying for the KBRC’s water supply, while other community users were paying according to the current fees and charges.
This situation was neither fair nor in line with good governance.
The City does not profit from supplying recycled water; however, the fees must cover the actual costs of production and supply. Unfortunately, as much as we wish otherwise, nothing today costs the same as it did a decade ago.
The City remains fully committed to supporting the KBRC and the future of racing in Kalgoorlie-Boulder. We have made significant efforts to assist the KBRC and have been negotiating in good faith to reach a fair agreement that works for both parties and welcome further discussions at any time.
All recycled water users need to meet the Department of Health’s water re-use requirements in order for the City to supply them with recycled water.
In July 2024 the City was advised by the Department of Health that the KBRC had failed to complete all their requirements and to cease supplying recycled water to the site.
We believe this compliance requirement as not been provided to the Department.
There has been speculation about a supposed "historical agreement" between the City and the KBRC for an unlimited supply of recycled water. However, the City has no record of such an agreement. We have requested documentation from the KBRC and assured them that, if such an agreement exists, it would be honoured. To date, no record of this agreement has been provided to the City.
Throughout negotiations with the Kalgoorlie-Boulder Racing Club (KBRC), the City has acted in good faith with the interests of our entire community in mind. Several proposals and solutions have been offered, with the latest outlined below:
The City’s overall offer to support the KBRC equated to approximately $550,000 over three years, including the land purchase and revised water charges.
In comparison, the KBRC’s counteroffer—based on a rate of $0.57/kL—would result in a subsidy from the City, and by extension, ratepayers, of approximately $777,250 over three years.
The City remains fully committed to supporting the KBRC and the future of racing in Kalgoorlie-Boulder. Significant efforts have been made to reach a fair and sustainable agreement that works for both parties.
Unfortunately, negotiations have currently stalled, despite the City’s best efforts. The City remains open to further discussions at any time to find a resolution that ensures both the sustainability of our resources and the continued success of racing in our community.
Yes the City is open to reviewing the fees charged for recycled water, however this must be done in line with set procedures under the City's governing legislations.
Due to the number of Elected members with a financial interest in the KBRC disclosures apply. This means any decisions on fee reductions would require Ministerial approvals, which if done now would delay the availability of water to the KBRC further.
When the City moved to impose water restrictions in 2023 (which have since been lifted), the Department of Education took steps to future proof the schools through the installation of infrastructure to allow for scheme water to be used which supplied by Water Corporation.
This is a supplementary agreement and the supply of recycled water still remains the preferred option for schools.
While the City is not able to comment on commercial agreements (as there are in confidence clauses), the fees charged under such agreements reflect the cost to supply the recycled water.
Under the agreement with Lynas, the fees are paid even if they don't use the recycled water. Since the agreement was signed on 2021, Lynas have been paying for recycled water even though they have not used the allocation.
Recycled water is distributed to local parks, gardens, and sporting ovals, as well as users including schools, not for profit organisations and various industries.
Kalgoorlie-Boulder has some of the best green spaces in the region, and that’s something we’re incredibly proud of.
The City monitors current levels of recycled water and storm water reserves to ensure accurate forecasting for both city and community facilities as well as external recycled water users.
Sustainable water solutions are critical to supporting Kalgoorlie-Boulder’s growing population and diverse industries.
Between 2020 and 2023, the City invested $12.2m to upgrade the South Boulder Waste Water Treatment Plant lagoons, installing a new pipeline and pump facility, as well as making improvements to the Old Boulder Lagoons Pump Station.
The City is has developed a Waterbank Project which will cost $90M in total.
The Water Bank Project will improve the city’s stormwater capture, boost the flow of recycled water, and enhance its quality for community use. This will help build greater water resilience and contribute to a more sustainable environment.
The City is actively seeking continued support to secure funding for this project. More information about the project is available here.
The City is extremely disappointed that the Kalgoorlie-Boulder Racing Club (KBRC) and Racing WA (RWA) have decided to change the location of this season's first race meet.
Improving the City’s capture of stormwater, enhancing the movement of recycled water, and improving the quality of recycled water for our community.
Have questions or want to learn more about a project, contact us below:
Phone | 9021 9600 |
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mailbag@ckb.wa.gov.au | |
Website | www.ckb.wa.gov.au |
In writing | PO Box 2042, Boulder, WA 6432 |
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