Much of the original allocation of "Better Off" funding to the Dunedin City Council had to be redirected after a change of government.
The results of this redirection were disclosed to the Otago Daily Times after a Local Government Official Information and Meetings Act request.
They show government money tagged to a Treaty of Waitangi partnerships package reducing from a planned $1.89 million to $408,049.
A climate action category had its allocation cut by more than $1.2m, but a South Dunedin Future component of $1.45m was retained.
On the other side of the ledger, $776,666 was redirected to enhanced Three Waters hydraulic models, on top of the $850,000 original allocation, and there was a $1.8m boost to "accelerated condition assessment of lifelines and trunk infrastructure", which was added on top of the original allocation of $720,000.
There was also up to $500,000 available relating to the government’s Local Water Done Well policy - potentially $250,000 for new organisational structures and $250,000 for financial and commercial options.
The total allocation remains the same at $11.54m.
A draft infrastructure strategy for the council highlighted some assets were more than 150 years old and still operated as essential pieces of the network.
"Some Three Waters assets require replacement based on their age and condition and the likelihood they will not be able to maintain service levels in the future," the report released under LGOIMA said.
The council’s overall 2025-34 draft long-term plan featured a $1 billion nine-year programme for renewal of water assets and upgrades.
Projected levels of expense faced by councils for upgrades were a key factor behind water reform pursued by the previous government and it brought in Better Off funding as part of this.
Councils used it in various ways to assist community wellbeing, but the new government unpicked aspects of reform and it was critical, so little of the funding was being used for Three Waters.
In Dunedin’s case, councillors were not initially in the loop about the details of their council’s application.
The Department of Internal Affairs had discussions with the council, and others, about how unspent Better Off money could be redirected.
The original allocation to the Dunedin City Council for Treaty partnerships was cut by more than $1.48m - $363,049 was retained for cultural capability advisers and $45,000 for strategic Treaty advisers.
A grouping described as future development and planning had an increase of more than $1.77m to more than $8.31m.
The original allocation was retained for new carbon assessments of Three Waters and transport infrastructure ($800,000) and various infrastructure impact assessments ($760,000).
The city council has also been working through its own draft budgets.
This included rates revenue of $910,000 for a sector called Treaty Partnership, which had an increase of $338,000 "due to removal of Better Off funding", a document from last month stated.
Permitted funding
Permitted government funding for the Dunedin City Council to support Three Waters activity:
• Up to $8,312,852: For future development and planning, such as enhanced Three Waters hydraulic models and leading and delivering growth.
• Up to $408,048: For Treaty partnerships, such as cultural capability advisers.
• Up to $1,873,378: For climate action, including the South Dunedin Future programme.
• Up to $500,000: For implementing the government’s Local Water Done Well policy.
• Up to $445,722: For infrastructure, such as resilience and system improvements.
Total allocation: $11,540,000.
- Sources: DCC/Department of Internal Affairs
