Targeted rates for Westport set to increase by a whopping 539%

West Coast ratepayers face targeted rates well above the 27% or 44% 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, helped to cover the cost to maintain river, coastal, and erosion protection assets in local neighbourhoods.

These included 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 remained very vulnerable until substantial work could be completed.

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

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

Under the Long Term Plan, Westport's targeted rate annual increase would be:

The targeted rate increase — cumulative from 2023-24 — would be up 539% by 2026-27.

For Westport, the rate requirement cumulative increase for the targeted rate would 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 was today 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 was a substantial general rates increase of 27% for 2024-25.

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

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

For 2024-25, council's preference was a 27% 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% increase option, was 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 would impact what they would pay in targeted rates.

The LTP document acknowledged "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 had $15.6m through the 2023 Westport Resilience Pack for floodwalls and other initiatives based on an "intergenerational approach".

There was 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.