Mid Canterbury’s three waters future in the pipeline

Monday, 10 March 2025

Options are being considered for Mid Canterbury’s future water service delivery , with Selwyn already presenting its preferred option.

Mid Canterbury will soon have its say on options for future water service delivery under the Government’s Local Water Done Well reform.

The Ashburton District Council is preparing to release its options for public consultation.

Democracy and engagement group manager Toni Durham said the council would present a proposed model for consultation at the March 19 council meeting.

She said ratepayers would 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%) of the local lines and fibre provider.

Prime Minister Christopher Luxon and Local Government Minister Simeon Brown discuss the government’s plans to rein in local council rate hikes with a package of reforms focused on essential services and fiscal responsibility.

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”.

The government paid $63.8 million to consultants for the Three Waters proposal, with PWC receiving $35 million, raising questions about the effectiveness and value of the spending.

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, the 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.

Ashburton’s budget awaits water reform figures

Ashburton ratepayers look set to still have an average rates rise under 10%, but a “few balls” remain in the air before a figure will be confirmed.

Ashburton looks to have an average rates rise under 10% as two core budgets are reviewed

Two budgets - the roading and drinking water and wastewater budgets - are being examined with a fine-toothed comb on the 2025-26 annual plan.

Councillors will have one last look at the annual plan budgets on March 21.

Council democracy and engagement group manager Toni Durham said factoring in the future cost of water services is one of the final steps to finalising the 2025-26 annual plan.

“We are making sure we are being realistic with the increases needed given what is coming under the Government's Local Water Done Well reform.

Under the reform, councils have to demonstrate financially sustainable water services from July 1, 2028.

Following another budget workshop last Thursday, staff have been asked to look at modelling for how renewals and depreciation are being funded, Durham said.

With the question marks around water services and “the ripple effect” that can have on the budgets, there wasn't a solid average rates rise figure yet, Durham said.

“There are still a few balls in the air before we can settle on figures.”

The second round of budget workshops required an extra session last week to focus on the roading budget.

Durham said this was the result of the timing issues of the council setting its long-term plan budgets before the NZ Transport Agency announced its funding, which didn’t match what the council had budgeted for.

“You can’t just roll the numbers over, so we have made sure we made the right adjustments.”

The budgets will be finalised at a workshop on March 21.

Consultation is unlikely to be required as the weren't deemed significantly different from the long-term plan.

That decision will be made by the councillors at the April 2 council meeting.

The annual plan needs to be adopted by June, and without a consultation process, it could be adopted earlier.