Published on Thursday, 23 January 2025 at 3:20:18 PM
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. It is also concerning to see so much misinformation in the public domain when the City has worked tirelessly to support the KBRC ensuring the future of racing remains strong into the future.
To be clear, the City has been in a position to supply recycled water to the KBRC since late last year, once the KBRC had their Department of Health approval reinstated. However, the KBRC and RWA were unable to reach an agreement that did not impose future financial impacts on the City and, in turn, Kalgoorlie-Boulder’s ratepayers. The City has made significant offers to support the KBRC, including writing off payments owed, a proposed tiered pricing structure, Council purchasing land from the KBRC for additional water storage infrastructure, and a combination of other arrangements. Despite these efforts and negotiating in good faith, an agreement has not been reached, noting the City is still waiting for a formal response to its proposal.
In February 2023, the City wrote to the KBRC informing them the City was reviewing recycled water allocations given the impact of low rainfall and low levels of water capture forecasted. At that point in time, the KBRC’s recycled water agreement was over 10 years old, having not been reviewed or renewed since 2014. The City could simply not continue to provide an unlimited supply of recycled water. The KBRC was also paying a subsidised rate of 0.32 per kilolitre, which means ratepayers were significantly subsidising recycled water for the KBRC, but other community users had to pay the rates as per the current fees and charges. This was neither fair nor in good governance.
The use of and re-use of water has always been a significant priority for the City. In July 2023, the City’s pricing structure for recycled water was set at $2.30 per kilolitre, increasing to $2.50 for the 2024/25 financial year—representing a break-even rate for supply. The City does not make a profit from treating and providing recycled water to users. Historically, the City heavily subsidised this cost and allowed unrestricted usage. However, to ensure long-term availability for all users, the City must take a more sustainable approach to managing supply and impose a fair rate across all recycled water users whilst working within legislative requirements.
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 would delay the availability of water to the KBRC.
The City does not compromise on good governance and transparency. No deals will be made that are not in accordance with the City’s current Fees and Charges. The current charge is considered to be fair across recycled water users, including our schools and not-for-profit organisations.
We know how vital recycled water is for our region and the ongoing work required to keep our parks, sporting fields, and recreational green spaces in top condition. Something we have been proud to maintain for many years. The City assures our community that all Elected Members, Executive Leadership, and staff are taking this matter very seriously and have been working since October last year (and for some time before that) to find a resolution that is acceptable to all parties.
The City has been in constant contact with the State Government, including all relevant Ministers, RWA, and the KBRC, to explore every opportunity to come to a resolution.
While the City has not previously commented widely on the negotiations to date, there has been a substantial undertaking across our organisation to ensure a solution for the provision of recycled water to the KBRC to meet their needs. Every option presented to the KBRC will have a financial impact on ratepayers and City staff have looked for ways to minimise this impact as much as possible.
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 a summary of the most recent proposal outlined below:
- Recycled Water Charges for 2023/24: The City acknowledged that the KBRC accessed water between 1 July 2023 and 30 June 2024, charged at the rate outlined in the City’s Fees and Charges ($2.30/kL). To resolve any dispute over these charges, the City proposed writing off the difference between the charged rate and the historical rate, meaning no additional cost to the KBRC beyond what they had already paid.
- New Agreement Proposal: The KBRC would need to enter into a new agreement at the current rate of $2.50/kL, meeting all Department of Health requirements. This would allow water access to resume immediately upon signing.
- Land Purchase Offer: The City offered to purchase land from the KBRC at an independently valued price of approximately $300,000. This land had previously been offered to the City on a peppercorn lease to support the Water Bank Project. The purchase would serve as a further financial support to the KBRC while enabling the City to use the land for additional water storage infrastructure, such as new collection dams, to support future water supplies.
- Revised Water Pricing Structure: The City also agreed to review water charges and implement a tiered pricing structure to encourage water efficiency. For example, a sliding scale was proposed, starting at $0.60/kL and increasing based on usage. While this would still result in higher costs for the KBRC, the City’s offer to purchase the land would effectively further subsidise these charges.
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, while ensuring sustainable management of recycled water for the benefit of the entire community and we welcome further discussions with stakeholders on the matter.
Frequently Asked Questions
For more information regarding the provision of recycled water and the negotiations with the Kalgoorlie-Boulder Racing Club visit CKB YourSay.
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