The new council-controlled organisations are seeking LGFA funding
Bell Gully has helped Waikato Waters and Selwyn Water to join the borrowing arrangements of the New Zealand Local Government Funding Agency (LGFA) programme.
Waikato Waters is the first water services council-controlled organisation (CCO) to join the program, while Selwyn Water is the water organisation to be established under the government’s Local Water Done Well reform. Both organisations were assisted by teams led by partner Zac Kedgley-Foot.
Waikato Waters is jointly owned by the Hauraki, Ōtorohanga, Matamata‑Piako, South Waikato, Waipā and Waitomo district councils. According to Bell Gully, the CCO’s accession is a significant milestone in the Local Water Done Well reform.
Waikato Waters is expected to borrow ~$300m in new debt by 2034 as per its water service delivery plan. The plan will back a $800m water and wastewater infrastructure investment programme.
The CCO will begin running under the Local Water Done Well policy on 1 July. It is the first water organisation to receive early access to the LGFA.
“Access to LGFA funding is a significant step for us. It means we can invest in critical infrastructure in a financially responsible way, helping to keep costs down over the long term while still delivering the upgrades our communities need”, interim chief executive Neil Brennan said.
Waikato Waters has also inked transfer agreements with the Waipā, Waitomo and South Waikato district councils; it is expected to enter into similar agreements with the Hauraki, Ōtorohanga and Matamata‑Piako district councils. Starting 1 July, the CCO will start providing water and wastewater services in the Waipā, Waitomo and South Waikato areas.
Nonetheless, councils will still collect water and wastewater charges for Waikato Waters for at least the next 12 months to facilitate a smooth transition. Customers will still pay councils and direct billing and service queries to council customer service teams.
Waikato Waters will be headquartered in central Hamilton.
“We’re pleased to be part of a project that will help to provide access to cost-effective funding for delivery of critical water infrastructure in the future”, Kedgley-Foot said.
Hamish Robinson and Willa Aitken supported Kedgley-Foot in working on this deal.
The team also worked together to help Selwyn Water join the LGFA programme. They worked together with partners Rachael Brown, Amon Nunns and Toni Forrest; senior associate Dr Laura Hardcastle; and lawyers Sydney Blyde and Olivia Overfield.
The team tackled all aspects of Selwyn Water’s establishment and the transfer of water services from Selwyn District Council. A Statement of Expectations will guide decisions and actions.
Per Selwyn Water’s media release, the water assets will be transferred in the next 6-12 months. Nonetheless, the council will deliver certain services for continuity and reliability of service while Selwyn Water builds its internal capability and systems.
Selwyn Water focuses on the delivery of drinking and wastewater services in the Waikirikiri Selwyn district. It is run by an independent board.
By 1 July 2027, a maximum of 18 water CCOs are anticipated to join the LGFA programme. Bell Gully is guiding other councils and water organisations on the Local Water Done Well reforms.
