Waitaki District Council's water plan approved

Waitaki District Council's plan to rejoin the Southern Waters partnership it abandoned last year has been approved.

The council's amended plan would see it team back up with Central Otago, Clutha and Gore district councils to deliver drinking water, wastewater and stormwater services.

Last year, Waitaki District Council agreed to accept Crown intervention after it backed out of the partnership and its in-house water services delivery plan was rejected.

The amended plan has now been accepted by the Secretary for Local Government.

Council chief executive Alex Parmley said the water investment required by government reforms has put financial pressure on council budgets, services and rates in recent years, but this decision would help to manage that.

"Waitaki has already borrowed to invest in treatment plants, pipework and stormwater, and around $80 million of water-related debt is expected to transfer to Southern Waters next year," he said.

"That will leave council with net debt of around $20 million and put water investment on a more sustainable footing."

The partnership meant Waitaki could retain public ownership of water services while sharing skills, regulatory costs and investment capacity with other councils, he said.

"It is the most affordable way to deliver the considerable investment still required to meet legally binding water standards and renew ageing infrastructure, and it reflects the careful work staff have

done to test options and protect the long-term interests of ratepayers."

Waitaki mayor Mel Tavendale said it was an important milestone that reflected months of work.

"The accepted plan provides a more affordable future for water services, gives our community

certainty, and brings to a close nearly ten years of reform and uncertainty following the Havelock North water contamination incident in 2016," she said.

The joint council controlled organisation Southern Waters will take responsibility of water services, charging and infrastructure from next July.