The council has entered into a memorandum of understanding with the Crown for $4.73 million to spend on operating and capital expenditure to improve three waters (drinking water, wastewater, stormwater) infrastructure.
Executive manager infrastructure services Julie Muir said the council expected to receive a further $4.73 million from an Otago regional allocation of $20.4 million.
The funds come from a $761 million Covid-19 stimulus package announced by the Government in July.
Ms Muir said the stimulus funding will go towards a range of "shovel ready" projects including water treatment upgrades, pump station capacity upgrades in Cromwell, falling mains pipe upgrades in Roxburgh, Clyde and Alexandra, water pressure upgrades in Omakau, flood protection for Roxburgh, an additional reservoir in Alexandra, additional staffing to deliver the programme as well as a contribution towards a regional work programme.
"The real benefit to council being involved in this process is that we are able to ensure that the wider needs of the Central Otago community are understood and considered in the design of the reform process, that might end up being legislated by the Government," Ms Muir said.
Central Otago Mayor Tim Cadogan said agreeing to participate in the initial stage of the reform programme was the first "step in good faith" towards a pathway that could see water management move away from being managed by councils and instead being managed by a separate entity.
Cr Tracy Paterson said she was concerned there had been little time to consider how the three waters reform process might take place, and what it might mean for the council.
"I don’t even think the Government has thought about it properly yet," she said.
Ms Muir said as this was the first stage in discussions on three water reform, there was still the opportunity for the council to not progress at later stages, but it would allow the council to "get a say" on what separate water management entities might look like.
"That is what this whole process is about, us being involved in establishing that with the Government, so we will get a say in how those organisations would be structured and how they would be governed."
A funding agreement and delivery plan will be submitted to the Crown before the end of September.
