Targeted rates for Westport to increase 539 percent

The flooded southeastern approach to Westport under flood in July 2021, with the Buller River in the background. Photo: NZ Defence Force

West Coast ratepayers face targeted rates well above the 27 percent or 44 percent general rates increase proposed by the regional council - particularly in Westport.

Targeted rates include a special rating district levy for ratepayers within 23 Special Rating Districts on the West Coast.

The levy, administered by council, helps to cover the cost to maintain river, coastal, and erosion protection assets in local neighbourhoods.

These include the entire Greymouth area under the Greymouth Floodwall, the Hokitika Seawall, the Franz Josef area protection banks - and now Westport, where foundational work for an intergenerational resilience scheme has started.

The town was badly affected by record floods from July 2021 and the following February. It remains very vulnerable until substantial work can be completed.

Under the proposed Long Term Plan (LTP), the total targeted rates increase across the West Coast Regional Council area will be 10 percent in 2024-25 (year 1 of the LTP). There will be increases of 20 percent each in years two and three.

Westport ratepayers will have the biggest increases due to the co-funded $22.9 million Westport Resilience Package announced under Budget 2023.

Under the LTP, Westport's targeted rate annual increase will be:

• 36 percent in 2024-25
• 248 percent in 2025-26
• 33 percent in 2026-27.

The targeted rate increase - cumulative from 2023-24 - will be up 539 percent by 2026-27.

For Westport, the rate requirement cumulative increase for the targeted rate will rise to $165,513 (2023-24: $121,332) in 2024-25, $575,268 in 2025-26, and $762,680 in 2026-27.

The West Coast Regional Council headquarters at Pāroa near Greymouth. Photo: Supplied / Greymouth Star

The West Coast Regional Council is on Tuesday debating the 2024-34 Long Term Plan with a view to releasing it to the public for consultation into May.

Under the plan, the preferred option in year one is a substantial general rates increase of 27 percent for 2024-25.

The draft consultation document states council has held down the rates "artificially for too long" and it has no option but to bump them up radically.

Council in mid-2023 approved a 16.4 percent general rates increase.

For 2024-25, council's preference is a 27 percent increase in the general rate borrowing to "smooth out" the impact on ratepayers by pinging them for the entire council budget. A second option, a 44 percent increase option, is based on a rates only funding approach.

Meanwhile, ratepayers within special rating districts, such as the Greymouth Floodwall, should watch out for their annual meetings in May.

The budgets proposed for 2024-25 at those meetings will impact what they will pay in targeted rates.

The LTP document acknowledges "some big movements" for Westport in its targeted rate.

"Due to construction of the Westport Flood Protection Project, there is a higher targeted rate demand on this rating district than elsewhere on the West Coast."

The regional council in 2022 budgeted $10.2m to address Westport flood solutions. It also now has $15.6m through the 2023 Westport Resilience Pack for floodwalls and other initiatives based on an "intergenerational approach".

There is also $1.5m set aside to replant the Organs Island area inland from Westport to help mitigate flooding impacts, $500,000 to improve local emergency management capability, and $250,000 for a sea level monitor/tide gauge to improve early warning systems.

Council has already started building some flood protection infrastructure for Westport - with an anticipated $1.38m spend this year "funded by $1.03m of grant funding and $0.35m in debt funding as the local share".

"As this work progresses, there will be ongoing financial implications. We want ratepayers in this area to be aware of what this means for their Targeted Rate," the consultation document says.

LDR is local body journalism co-funded by RNZ and NZ On Air.