This week, council staff have been scrambling to find ways to resolve massive holes in a draft plan, following scathing feedback from the Department of Internal Affairs.
Waitaki District Council (WDC) was asked to present the draft plan by secretary for local government Paul James, who had previously sent a scathing letter to WDC, saying it will face significant barriers to achieving financial stability under a standalone model.
A Department of Internal Affairs (DIA) spokesperson confirmed to the Oamaru Mail that the department recently sent letters to half a dozen councils noting their decisions to pursue stand-alone models, and the implications of these decisions on the financial sustainability of water services.
"This is part of the department’s ongoing engagement to ensure councils are on track to be able to produce a financially sustainable plan," the spokesperson said.
"These letters also included requests for draft water services delivery plans.
"These letters were sent to: Stratford District Council, Kawerau District Council, Mackenzie District Council, Waitaki District Council, Whakatane District Council (working towards a multi council CCO but intending to submit a plan for a standalone model), Gisborne District Council," the spokesperson said.
"Of these, the letters to Stratford, Mackenzie and Waitaki District councils also stated the department’s position that these councils would likely be better placed to address barriers to financial sustainability as part of the respective multi-council arrangements they had been previously considering.
"More generally, the department has been consistent in its messaging to councils via a range of channels, including face-to-face to discussions, on the benefits of the multi-council CCO option under Local Water Done Well in addressing the financial sustainability challenges for water services," the spokesperson said.
The deadline for all councils to provide the department with a final Water Services Delivery Plan (WSDP) is September 3.
It is required under the government’s Local Water Done Well reforms.
The council last month voted to follow an in-house (ring-fenced) model, after public consultation showed it was the most popular, but against the Department of Internal Affairs’ advice, which had previously advised that a joint venture with Central Otago, Clutha and Gore district councils was the only viable option.
Once the plan is submitted, if it is found to not be up to standard the council could either be asked to resubmit a modified plan, or the government could install either a "facilitator’ to work with the council to help close the gap to an acceptable plan, or appoint a "specialist" with full decision-making powers to establish an acceptable plan.
Department of Internal Affairs representatives at last week’s workshop told councillors the department "had issues" with large parts of the draft plan.
Cr Jim Thomson told this week’s workshop he agreed with a suggestion from Cr Tim Blackler that councillors adopt the more expensive option put forward by Morrison Low at the workshop, as that was more likely to pass the Department of Internal Affairs’ assessment criteria.
"We need to include everything possible because at the end of the day we know that DIA are going to stick it up us and sending a half-baked option is not going to cut the mustard," Cr Thomson said.
"We need to actually be totally up front with what we need to deliver to the community and face the consequences," he said.
Councillors next week will likely decide between finding an extra $9.79million to pay for "must have" water investments and a more expensive option to pay for another additional $9.4m of further "should do — but not nice to have" capital investments on top.
Council staff and consultants Morrison Low will also confirm just how much rates will have to rise to fund the plan, as well as how much water charges will be and how much they will rise over the following 10 years.
