Mid Canterbury will soon have its say on options for future water service delivery under the Government’s Local Water Done Well reform.
Ashburton District Council is preparing to release its options for public consultation.
Democracy and engagement group manager Toni Durham said the council will present a proposed model for consultation at the March 19 council meeting.
She said ratepayers will then be asked to provide feedback on their preferred model over four weeks from March 27.
Mayor Neil Brown said the council will present a preferred option and a second option for the public to consider.
He said time is of the essence for the council to get its plan together.
All councils need to have an approved Water Services Delivery Plan to the Minister of Local Government by September 3.
Councils have acknowledged that regardless of the service delivery model they go with, it is highly likely rates for water services will need to increase to meet the requirements set down by the Government.
Ashburton was investigating local options – an in-house model, creating a new Water Services Council Controlled Organisation (WSCCO), or a single-council CCO with an existing local board-governed entity – EA Networks.
The council is the majority shareholder (95 per cent) of the local lines and fibre provider.
Selwyn’s is consulting on its proposal to set up a WSCCO.
In its consultation document, it states “a WSCCO provides greater borrowing capacity than council alone, allowing for essential infrastructure investment without sudden rate hikes”.
The rates the council takes for drinking, waste and stormwater would be removed from its balance sheet and shifted to the WSCCO, along with any debt.
An independent board would handle the governance, “reducing the risk of political decision-making and interference”, while the council remains the sole shareholder to ensure local ownership and accountability.
The other option is an in-house model, which would “not mean things will stay the same”.
“Significant investment will still be required to meet new government legislation and compliance requirements.”
Selwyn already hired Murray Strong as the establishment chairperson of its Local Water Done Well Programme which “does not mean a final decision has been made”.
His appointment ensures if WSCCO goes ahead it can move forward smoothly and quickly, or be absorbed into an in-house model.
Elsewhere in Canterbury, Christchurch City Council opted to keep water services under total council control rather than spend millions of dollars on an independent entity in February.
It has also linked up with Dunedin City Councils to investigate working together on aspects of delivering water services.
In North Canterbury, Waimakariri District Council is proposing to establish an internal business unit while the Hurunui and Kaikōura councils are looking to create a joint water services council-controlled organisation.
To the south, Timaru District Council is looking to join with Central Otago, Gore, Clutha and Waitaki councils to establish a joint water services organisation.
Mackenzie District Council is looking at a standalone internal business unit or a CCO.
By Jonathan Leask