Last week, councillors approved a proposal to accelerate 16 water infrastructure projects in the district, costing about $60million, ahead of the transition to a new South Island Three Waters entity in 2024.
The projects include major upgrades to the Oamaru water supply, and the possible connection of Windsor and Kauru Hill systems to Oamaru, to meet new drinking water standards.
The projects are already in the long-term plan, but when the Government announced participation in the Three Waters reform programme would be mandatory, the council reviewed its work programme and identified projects that could be brought forward to the 2022-24 period.
While the council continued to oppose the Government’s Three Waters reform proposal — and this was another example of the "perverse outcomes" of the legislation — it was important to prepare for the transition and put the district in the best position possible, Mr Kircher said.
The projects would be loan-funded, as it was anticipated the new entity would take over any council debt.
However, several councillors raised concerns about the financial impact on ratepayers if the projects were accelerated and the council’s Three Waters assets were not taken over by the new entity.
Finance and corporate development group manager Paul Hope said there would be plenty of opportunities to review and, as necessary, adjust the programme to meet the decisions coming from the Government, election results, refinement from any of the regulators and feedback from the community.
"It’s important we get some of this stuff under way, so we can take advantage of the market as opportunities arise," he said.
Council chief executive Alex Parmley said it was about "balancing risks", despite the unknowns.
"What we do know is that the Government has decided to mandate it, and that poses a risk to our communities in terms of the infrastructure we know they need investment in, in the coming years," Mr Parmley said.
"So whilst this approach isn't risk free, and the Government could make decisions that have an impact on us, we are recommending this . . . to make sure that investment happens, and it isn't de-prioritised through the new entities being established.
"It means our communities don’t run the risk of not being looked after as the new entity gets on with the big jobs, possibly overlooking the smaller communities which also require attention."
Councillors also delegated authority to Mr Parmley to approve non-standard procurement for projects costing between $500,000 and $1.5million as a more efficient approach than the normal open tender process.
