Co-funding the Hokitika and Kaniere Resilience Project
Background
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 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.
Up to $3.8 million of funding was made available for the Hokitika and Kaniere Resilience Project, with co-funding of $3.2 million which is to be funded via a merged and extended Rating District encompassing the current Hokitika and Kaniere Rating Districts.
Community consultation was undertaken in September. The new Rating District will have one differential, meaning each rateable property will pay the same amount per $100,000 of capital value.
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. The new rating will begin in the 2021/22 financial year.
Feedback
Based on the feedback received, Council made the following recommendations at their Council meeting on Tuesday, 10 November 2020:
- That Council strikes a rate to meet the required co-funding for the Hokitika flood and coastal erosion IRG “shovel ready” project;
- The Kaniere and Hokitika Rating District boundaries are merged and extended as publicly consulted;
- Council will consult through the Long Term Plan (LTP) process on extending the boundaries identified in this consultation;
- And Council will consult with Southside residents via the LTP process on erosion and flood risk
