North Canterbury’s two rural councils expect to have their new water entity up and running by July next year.
The Hurunui and Kaikōura district councils approved a commitment agreement to form a joint council controlled organisation (WSCCO) to manage water services across the two districts at their respective council meetings this week.
The agreement proposes setting up the new WSCCO early next year, with the aim of having the new entity fully operational by July 1, 2026.
The two councils plan to sign off their water services delivery plan next week, after considering feedback from the Department of Internal Affairs (DIA).
Kaikōura District Council chief executive Will Doughty said the two councils decided to send their draft plan for DIA feedback to ensure a ‘‘smoother’’ path once they do submit the final plan.
Councils need to submit their water services delivery plans to the DIA by September 3.
The commitment agreement sets out how the two councils plan to work together, Hurunui District Council chief executive Hamish Dobbie said.
‘‘The agreement is an important document, ensuring both councils have a common understanding of how the WSCCO will be set up and how it will operate.’’
A reference group, comprising two elected members from each council and the two chief executives, will be appointed after October’s local government election to oversee the establishment of the new entity.
A project budget of $870,000 has been approved by both councils to cover the set up costs of the new WSCCO.
It comprises the two councils’ remaining transitional support funding from the DIA and loan funding, which will be transferred to the new entity.
The new WSCCO will be a stand-alone entity with both councils as shareholders, but the agreement leaves the door open for working with other councils.
The two councils initially collaborated with the Waimakariri District Council to consider different models for water service delivery, before Waimakariri opted to go it alone.
The Waimakariri District Council’s water service delivery plan for its own beefed up in-house water services unit was approved by the DIA last week.
Councils will have until June 30, 2028, to demonstrate they are financially sustainable.
LDR is local body journalism co-funded by RNZ and NZ On Air.

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