Christchurch City Council

Supplementary Agenda



Notice of Meeting:

An ordinary meeting of the Christchurch City Council will be held on:


Date:                                    Thursday 12 May 2022

Time:                                   9.30am

Venue:                                 Council Chambers, Civic Offices,
53 Hereford Street, Christchurch





Deputy Chairperson


Mayor Lianne Dalziel

Deputy Mayor Andrew Turner

Councillor Jimmy Chen

Councillor Catherine Chu

Councillor Melanie Coker

Councillor Pauline Cotter

Councillor Mike Davidson

Councillor Celeste Donovan

Councillor Anne Galloway

Councillor James Gough

Councillor Yani Johanson

Councillor Aaron Keown

Councillor Sam MacDonald

Councillor Phil Mauger

Councillor Jake McLellan

Councillor Tim Scandrett

Councillor Sara Templeton



10 May 2022




Principal Advisor

Dawn Baxendale

Chief Executive

Tel: 941 6996



Jo Daly

Council Secretary

941 8581

Note:  The reports contained within this agenda are for consideration and should not be construed as Council policy unless and until adopted.  If you require further information relating to any reports, please contact the person named on the report.
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12 May 2022




12 May 2022




14.      Resolution to Include Supplementary Reports...................................................... 4

15.      Mayor's Report................................................................................................. 5


12 May 2022



14. Resolution to Include Supplementary Reports

1.       Background

1.1          Approval is sought to submit the following report to the Council meeting on 12 May 2022:

15.   Mayor's Report

1.2          The reason, in terms of section 46A(7) of the Local Government Official Information and Meetings Act 1987, why the report was not included on the main agenda is that it was not available at the time the agenda was prepared.

1.3          It is appropriate that the Council receive the report at the current meeting.

2.       Recommendation

2.1          That the report be received and considered at the Council meeting on 12 May 2022.

15.   Mayor's Report



12 May 2022



15.   Mayor's Report

Reference / Te Tohutoro:


Report of / Te Pou Matua:

Lianne Dalziel, Mayor,

General Manager / Pouwhakarae:

Dawn Baxendale, Chief Executive,



1.   Purpose of Report Te Pūtake Pūrongo

1.1       The purpose of this report is to provide an update on Three Waters reforms, including the recent announcements on next steps and the “better off” funding available to local authorities.

2.   Mayors Recommendations Ngā Tūtohu o Te Koromatua

That the Council:

1.         Receive the information in this Report.

2.         Note that the Government response to the Three Waters Working Group on Representation, Governance and Accountability will inform the Water Services Entities Bill, which is expected to be introduced and referred to a Select Committee for submissions mid-2022.

3.         Note that the Council has received advice on the criteria and requirements for applying for Tranche 1 of the “better off” funding, which would require us to submit an online Funding Proposal by 30 September 2022.

4.         Note that the Mayor has written to the Minister with concerns about the content of the Funding Agreement, and also the allocation of debt to the Water Services Entities.

5.         Note that staff will hold a workshop with councillors to discuss the process, and prepare a report for Council in time for an application should councillors wish to proceed.  


3.   Three Waters reform update

3.1       In April, there were two updates from central government on the Three Waters Reform. On 29 April, Ministers Robertson and Mahuta announced that Cabinet has accepted and is to take forward the majority of the recommendations of the Representation, Governance and Accountability Working Group. Some of the key changes are highlighted below.

3.2       As a member of this group, I am disappointed that this announcement failed to address the key funding concerns raised by the Working Group. This includes the Crown ignoring the recommendation that they confirm the size of investment required to address issues of historic degradation of waterways and inequalities in the provision of water services, and how it will address the funding.

3.3       On 4 April, the Department of Internal Affairs released further information on Crown funding available to local authorities as part of the Three Waters support package.

4.   Working Group recommendations on representation, governance and accountability

4.1       Cabinet has committed to the majority of the Working Group’s recommendations. The majority of these changes will be reflected via the Water Services Entity Bill, which is due mid-2022, however some will be implemented via the entity constitution, to allow for more flexibility in implementation. Key changes include:

4.2       Ownership of water entities.  The Government has agreed with the Working Group’s recommendations to strengthen community ownership of the new entities by using a public shareholding structure that makes community ownership clear, with shares held by councils on behalf of their communities (one share per 50,000 people, rounded up).  To preserve balance sheet separation between council owners and water service entities, and provide further protection against any future privatisation, the council shares cannot be sold or transferred for any reason and will not carry any financial or decision-making interests.

4.3       Co-governance. Equal representation between local government and mana whenua will apply to the regional representative oversight groups, which will have co-chairs and consensus decision-making to cement co-governance principles. However, this will not be applied to the entity boards. The entity boards will be independent, with merit-based appointments taking into account relevant knowledge, competency and experience.

4.4       Accountability.  The legislation will provide for tighter accountability from each water services entity board to the community, including strengthening and clarifying the role of the Regional Representative Group.

4.5       Te Mana o te Wai. This will apply as a korowai or principle applicable across the water services framework to all functions and powers enacted by the Bill.

4.6       Strengthening connections.  The legislation will include provisions that strengthen connections to local communities, including sub-groups feeding into the regional representative group, comprised of representatives of local communities to provide community-based input into the entity board’s decision-making on investment prioritisation and service standards.

5.   Crown funding available to local authorities

5.1       The Government last year announced a $2.5 billion funding package for local authorities to support transition through the three waters reforms.  This comprises a ‘no worse off’ package of $500 million, to support councils through the transition and ensure the financial impacts of reforms are managed.

5.2       A “better off” package of $2 billion is also available, comprising $1 billion in Crown funding and $1 billion which will be from the new water services entities. This will be made available in two tranches.

5.3       The first tranche ($500 million) is available now, and the second ($1.5 billion) will be available from 1 July 2024.  The deadline for applying for tranche one funding is 30 September 2022.

5.4       Christchurch City Council has been allocated $30.61 million in the first tranche and $91.82 million in the second tranche (total: $122.42 million) (based on a nationally consistent formula which factors in population, deprivation and land area).

Funding criteria

5.5       Funding proposals must be for new initiatives/projects or to accelerate, scale-up or enhance the quality of planned investment.  The duration of the programme of expenditure must be 5 years or less. 

5.6       The Government has established some funding criteria for assessing funding proposals which are:

·   supporting communities to transition to a sustainable and low-emissions economy, by building resilience to climate change and natural hazards;

·   delivery of infrastructure and/or services that enable housing development and growth, with a focus on brownfield and infill development opportunities where those are available;

·   delivery of infrastructure and/or services that support local place-making and improvements in community well-being.

5.7       Crown Infrastructure Partners (CIP) have been appointed to provide relationship managers to assist local authorities in preparing and submitting proposals to use this funding. 

5.8       Local authorities’ funding proposals are required to include a wellbeing assessment for each project included in the proposal.  We are also required to demonstrate how we engaged with iwi/Māori in developing the proposal.

5.9       Enclosed at Attachment A is the Department of Internal Affairs’ letter announcing the funding package.

6.   Next Steps

6.1       Councils around New Zealand have commenced workshops with elected members, and I have proposed to staff that we do the same to identify a framework for considering options for application. Any proposal for using these funds will need to align across multiple criteria in order to meet our needs as well as Government direction on use of these funds.  Our proposal would need to reflect:

·   the Government’s three criteria (see para 5.6 above);

·   Ngāi Tahu priorities;

·   direction provided by Council strategies and strategic plans; and

·   deliverability considerations: funding is available for expenditure over a period of up to five years.

6.2       I have written to the Minister for Local Government to express disappointment in the wording of the funding agreement, which does not demonstrate a partnership approach, as well as to express my concerns on the allocation of debt to the Water Services Entities. I have requested that the agreement is modified.

6.3       The Water Services Entity Bill is due to be introduced mid-2022. Amendments to the exposure draft released late last year will be required as a result of the above changes confirmed by Cabinet. We will make a submission on the Bill once submissions are called for and encourage residents to do the same.

6.4       There will be another Bill released later this year which will also relate to the Water Services Entities.

Attachments Ngā Tāpirihanga





Better off support package information letter





12 May 2022