Timaru District Council To Decide On Accepting Three Waters ‘Better Off’ Funding

The Timaru District Council (TDC) is about to join the government’s Three Waters Reform “Better Off” funding package, which could mean a windfall of nearly $20 million.

On Tuesday, councilors will discuss a report from his Three Waters stimulus advisor Ashley Harper and director of user experience and community engagement Beth Stewart-Wright that recommends an application for the first phase (tranche 1) of the fund that could raise $4.97 million.

the TDC, who has spoken out against the three water reformshas asked the Department of the Interior (DIA) for clarification on the implications of accepting such funding from councils proposing an alternative model to the reforms.

The report cites a DIA response stating: “The better off package financing agreement does not prevent or prohibit municipalities from doing so.” [ie, opposing the Three Waters Reform].

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“For the avoidance of doubt, publicly criticizing or expressing views on reforms cannot reasonably be expected to adversely affect the reputation, good standing or goodwill of the Ministry or the New Zealand Government, and would not constitute a violation of the Financing Agreement.” to be.” .”

However, page six of the seven-page report states:

“Upon signing the funding agreement, under Schedule 2, the council would agree to cooperate and cooperate with the DIA, including the National Transition Unit, to provide for the implementation and implementation of certain portions of the Three Waters Reform Program (to the extent permitted by law), with a view to achieving the reform objectives.

“This would be done in view of the Board’s available resources and competitive requirements, so that the Board can continue to perform its other functions and activities.”

Harper and Stewart-Wright say the purpose of their report is to enable the board to consider and determine whether to participate.

“…the [the funding] has the potential to materially affect a limited number of investment projects or services in the next five years, may change the level of community service and any impact on Māori.

“It also has definitive impact potential for the municipality with the receipt of extraordinary revenues of up to $19.9 million.”

The reports also note that the council’s involvement in the Communities 4 Local Democracy (C4LD) campaign and the action by the Supreme Court to propose an alternative model to Three Waters reform could spark increased interest in the way the council balances its position to propose an alternative model for reform and participate. in an important financing option.

The Timaru District Council (TDC) is about to join the government's Three Waters Reform "Better of" financing package that could represent a windfall of nearly $20 million.  (File photo)

JOHN BISSET/Things

The Timaru District Council (TDC) is about to join the government’s Three Waters Reform “Better Off” funding package, which could mean a windfall of nearly $20 million. (File photo)

The Better Off package comes in two tranches, the first is $500 million for projects not falling in years 1-3 of the long-term plans 2021-31 and the second tranche of $1.5 billion from July 2024. each district is determined by population (75%), NZ Deprivation Index (20%) and land area, excluding national parks (5%).

The report warns of risks in delaying an application for only tranche two, for example that an election could lead to a change of government, in which case the guidelines and application process could be changed or withdrawn altogether and there is a risk that tranche two could become possible. not made available.

“A well-considered funding application offers a unique opportunity to start new projects or initiatives that would otherwise require a substantial injection of funds.”

The package is described as “an investment by the Crown in the future for the good of local government and the community; and is a recognition of the importance to the local government sector (and the communities they serve) of the proposed transfer of the responsibility for the provision of water services”.

The three broad criteria for funding applications are:

  • Supporting communities in the transition to a sustainable and low-emission economy, including by building resilience to climate change and natural hazards.
  • Delivery of infrastructure and/or services that enable housing and growth, with a focus on brownfield and infill development opportunities where available.
  • Delivery of infrastructure and/or services that support local placemaking and improvements in community well-being.

The report suggests there are a range of Timaru District projects or initiatives that could potentially be considered for funding, including the Southern Trust Events Centre, art gallery redevelopment, new bike/walking trails, solar power generation for municipal facilities, establishment from a formal penguin colony sanctuary or ecocenter in Caroline Bay, a “sea-to-city” story, CPlay playground expansions, CBD revitalization or infrastructure to enable housing.

The report states that “there is little risk in accepting funding from tranche one, given the current status of the reform process and the council’s ability to maintain its current stance on Three Waters Reform”.

“Risks increase if funding for the first tranche is not applied for, as spending would not begin until July 1, 2024, meaning it would be more difficult to spend all $19.9 million within the remaining 3 years.

“If the city decides not to accept funding for tranche one and then stops Three Waters Reform, the $4.97 million in funding could be lost along with the rest of the Better Off Funding.”

Another factor to consider was having the organizational capacity to deliver additional new projects beyond those included in the LTP.

“Should an application be submitted that includes new projects, further consideration will have to be given to how such projects can be delivered.”