Local Government Minister Simeon Brown has announced council controlled-controlled organisations - known as CCOs - can immediately receive increased borrowing from the Local Government Funding Agency.
That support will be up to 500 percent of a CCO's operating revenues - providing they're supported by parent councils.
Brown says that is twice that of existing councils' leverage.
The government and funding agency are also exploring increasing debt limits, potentially up to 350 percent of revenue, for high-growth councils, and allowing lending to CCOs not supported by parent councils.
“The government has today set out the enduring components of water services delivery in New Zealand under our Local Water Done Well plan. This is about providing local government with the certainty it needs to deliver water services, while minimising costs on ratepayers,” Brown said in a statement.
“Councils and voters overwhelmingly rejected Labour’s expensive and divisive Three Waters reforms. This government has swiftly repealed those policies and restored local control over water assets.
"The key details announced today will enable new models for financially sustainable water organisations and increased borrowing from the New Zealand Local Government Funding Agency Limited (LGFA) for water services, reducing the burden on ratepayers."
