Co-funding the Hokitika and Kaniere 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 for projects across the West Coast, which included a $7 million project for the Hokitika and Kaniere communities.
The proposed Hokitika and Kaniere Resilience Project is the extension of the sea wall to Richards Drive, and the construction of a river flood protection scheme to provide far greater resilience and protection between Kaniere and Sunset Point from a 1:100 year flood event.
Outcomes of funding applications
Up to $3.8 million of funding has been made available for the Hokitika and Kaniere Resilience Project. However, co-funding of $3.2 million is required in order to secure this $3.8 million. The $3.2 million is proposed to be funded via a merged, and extended, Rating District encompassing the current Hokitika and Kaniere Rating Districts.
Note: If the required co-funding is not secured for the resilience project then the project will not proceed.
The proposed breakdown of the $3.2 million co-funding is:
- $2.7 million is proposed to be funded via a merged and extended Rating District
- $250,000 is proposed to be funded by West Coast Regional Council
- $250,000 is proposed to be funded by Westland District Council
Council is working hard to secure additional co-funding which will reduce the amount sought from the Rating District but is unable to confirm how much, or when that additional co-funding will be secured.
How can I find out more?
Information Drop-in Sessions
More detailed information on this project will be able to be viewed and discussed at two “drop in” sessions. These sessions will be held at the Wests Rugby Clubrooms on 50 Brittan Street, Hokitika on Tuesday 29 September between 10.00am and 6.00pm, and on Wednesday 30 September between 9.00am and 2.00pm. Councillors and staff from both the Westland District Council and West Coast Regional Council will be available for one on one discussion.
Proposed boundary and differential 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. The new Rating District would have one differential meaning that each rateable property would pay the same amount per $100,000 of capital value. A copy of the proposed new Rating District can be viewed here.
Over the last 12 months Council has undertaken short term protection works to reduce damage from coastal erosion at the northern end of the existing sea wall. It is intended that this will contribute to the required co-funding.
The Hokitika and Kaniere Rating Districts have existing loans from previous protection works. It is proposed that the existing debt is re-financed to include the co-funding component. This will result in a loan of $4.3 million comprised of:
- Total existing debt $1,600,000
- Co-funding required $2,700,000
A new Rating District Loan (including co-funding) of $4.3 million is an annual cost of $45/$100,000 Capital Value) based on a 25 year loan @1.5% interest rate. The final interest rate will be that prevailing at the time of borrowing. The new rating will not begin until the 2021/22 financial year.
A maintenance rate is also required to ensure that funds are available to undertake any necessary repairs to the assets. It is proposed the maintenance required per year is $50,000 plus GST. The proposed maintenance rate has a financial impact of $10.81 plus GST per $100,000 of Capital Value. The maintenance rate is reviewed annually by the Joint Committee.
It is proposed that the merged 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 Westland District Councillors, the West Coast Regional Council Chair and the two Westland Constituency Regional Councillors.
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: email@example.com
Submission forms must be received by Council no later than 5.00pm, Friday 9 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 Hokitika Resilience Project.
Completed submission forms need to be received by Council by 5.00pm, 9 October 2020.