Co-funding the Franz Josef Resilience Project
During the COVID-19 lockdown Central Government announced an economic stimulus package which included funding for resilience projects that were “shovel ready”. Council submitted for a total of $45.1 million funding to the Crown Infrastructure Projects fund, which included a $24 million project for the Franz Josef community.
Outcomes of funding applications
A total of $18 million has been made available from Central Government provided that $6 million of co-funding can be secured. The proposed breakdown of the $6 million co-funding is: $3.6 million is proposed to be funded by the New Zealand Transport Agency (NZTA) $1.9 million is proposed to be funded via a Rating District $250,000 is proposed to be funded by the West Coast Regional Council $250,000 is proposed to be funded by Westland District Council.
Note: If the required co-funding is not secured then the project will not proceed.
Every $1 invested by the Rating District attracts $9.50 from Central Government (up to $18 million).
How can I find out more?
Information Drop-in Sessions
More detailed information on the project and Rating District changes will be able to be viewed and discussed at a “drop in” session. This session will be held the Franz Josef Medical Centre on Tuesday 6 October between 10.30am and 6.00pm. Councillors and staff from both the Westland District Council and the West Coast Regional Council will be available for one on one discussion. NZTA staff will also be present.
Proposed boundary changes
To ensure that the required co-funding is shared by all benefitting parties it is proposed to merge the two existing rating districts as well as having the current boundaries extended (see attached map for proposed Rating District). The proposed boundary extension includes the old Canavan Knob Rating District as well as an extension of the northern boundary to Lake Mapourika. A copy of the proposed Rating District can be viewed here.
The current Franz Josef Rating District has a credit balance of $365,000 as at 30/06/2020. It is proposed that this be repaid to the existing members @ $379.00 plus GST per $100,000 of Capital Value. The Rating District also has rock assets of 5,300T that is in addition to the cash credit balance. This is valued at $246,450 plus GST. It is proposed that this rock be sold to the project with the funds from the sale distributed to the current members at @ $220.00 plus GST per $100,000 of Capital Value. The current Lower Waiho Rating District has a loan of $450,000 inclusive of the existing loan, recent Rata Knoll upgrade and the shortfall of Milton and Other stop bank re-build. It is proposed that this debt is “ring fenced” against the current members on a 20 year loan at a cost of $160.37 per $100,000 of Capital Value. The new Rating District co-funding of $1.9 million is proposed to be a cost of $64.00 per $100,000 of Capital Value based on a 20 year loan @1.5% interest rate. The final interest rate will that prevailing at the time of borrowing.
It is proposed that NZTA and the new Rating District contribute $100,000 each year to a maintenance budget that will be reviewed annually by the Joint Committee. The prudent reserve for the Rating District will also be reviewed annually by the Joint Committee. The proposed maintenance rate has a financial impact of $58.00 plus GST per $100,000 of Capital Value. Governance structure It is proposed that the new Rating District establishes a Joint Committee to make future recommendations to Council. The Joint Committee would be comprised of the Westland District Council Mayor, two Southern Ward Westland District Councillors, the West Coast Regional Council Chair, two Westland Constituency West Coast Regional Councillors, a representative from NZTA, a representative from the Department of Conservation and a representative from Te Rūnanga o Makaawhio.
How can I provide feedback?
Complete a submission form online now or download and fill out a copy. Click here for a submission form.
- Post your survey forms to: West Coast Regional Council PO Box 66, Greymouth 7840.
- Drop it into our office: 388 Main South Road, Paroa (8am-5pm weekdays).
- Email to: firstname.lastname@example.org
Submission forms must be received by Council no later than 5.00pm, Wednesday 14 October 2020.
Council will review the feedback provided and make a decision on whether or not to proceed with establishing the Rating District to secure the co-funding required to undertake the Franz Josef Resilience Project.