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74 days ago

Hokitika coastal protection project to push on

Nicole Mathewson Reporter from The Press

By local democracy reporter Brendon McMahon:

The Hokitika seawall extension project is to be pushed ahead despite the West Coast Regional Council not having any money yet to build it.

The northern extension to the 2013-built Hokitika Seawall has been in the pipeline for the past two years under council's Infrastructure Resilience Group 'shovel ready' programme for the town.

The programme includes the three stage Hokitika River stopbank programme on the southern edge of Hokitika, now at its second stage and awaiting final sign off by KiwiRail.

On Wednesday, the council announced it will drive forward its goal of providing better long-term coastal protection for the Hokitika residential area along the Revell Street-north beachfront.

Council chairperson Peter Haddock said they hope council can win some of the new 'shovel ready' money, set aside in the Coalition Government deal with NZ First, to build the extension.

But a requirement for the new money is the consent application is lodged to ensure no subsequent delay to what are supposed to be 'shovel ready' projects.

Haddock warned council is contesting for an annual pool of about $100m of funding nationwide.

"The priority for the Government will be that the projects are all ready to go because in the past a lot of projects that were 'shovel ready', weren't ready."

Haddock said council has applied knowing it will need to show it has the consent in train to qualify.

"It is in one of the tranches for funding. We have put that up for the Hokitika seawall, however it will depend on priorities around the country."

The new consent application encompassed future sea protection emergency work, a retrospective emergency work provision for the current 2013 seawall, and consent for the proposed extension.

Haddock said the emergency provision would allow council to be more proactive in the face of a future extreme event.

At the same time he expected some pushback from residents in the seawall extension area who stood to lose easy beach access from their properties.

"It will be contentious."

The township, founded in 1864, has a long history of inundation with the sea flooding the CBD within living memory.

Haddock said they hoped to have a formal hearing by about September - dependent on the availability of commissioners.

Council natural hazards analyst Dr Sharon Hornblow said Hokitika's natural hazard exposure is clear as it is built "within a dynamic coastal environment".

"Erosion issues are part of a long-term balance between sediment supply and highly active coastal processes," she said.

In particular the Hokitika shoreline is in a state of "dynamic equilibrium" balancing sediment supply from the river and earthquake induced landslides, with coastal bars and erosion troughs impacted by flood flows and storms.

Hokitika's seismic location between the Alpine Fault and the offshore Cape Foulwind Fault meant vertical land movement, along with sea level rise, is a future consideration, Hornblow said.

Council had decades of coastal erosion monitoring data, with the most recent data from 2021 showing "the potential" for river and storm surge flooding.

"Future projections for the Hokitika shoreline are more frequent severe flood events, coastal storms, future sea level rise from measured temperature increases and ice melt, and further sediment transport as well as coastal erosion," Hornblow said.

Extending and completing a new sea wall presented "a proactive short to medium-term option".

Hornblow said it would potentially help mitigate the ongoing impacts of sea level rise and the increased coastal hazard exposure while council worked towards a longer-term strategy for the area.

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4 hours ago

Coast council LTP submissions ‘fairly low’

Nicole Mathewson Reporter from The Press

By local democracy reporter Brendon McMahon:

Just six of 25 submitters to the West Coast Regional Council 2024-34 long-term plan (LTP) will appear at a hearing in Greymouth on Tuesday.

The proposed 10 year plan proposes an average 27% general rates increase in 2024-25 to partly fund a proposed budget of $25.2 million for the next financial year.

The other option in year one - to increase general rates by 44% - was based on rates alone funding.

However the preferred option in the proposed LTP is to reduce the full annual budget impact on ratepayers in the first few years by borrowing.

Engagement in this LTP has been relatively low compared to the previous two LTP processes in the past seven years.

A report for Tuesday's hearing notes previous LTPs received "moderate to high" submissions.

The current 2021-31 LTP received 621 submissions while the previous LTP in 2018 saw 73 submissions.

"Compared to the 22,000 rating units on the Coast, it's a fairly low turnout," West Coast Regional Council chairperson Peter Haddock admitted on Monday.

But he believed the low submissions in 2024 was a positive reflection on what the current council had moved on in the past year.

"It shows clearly that people understand that there has been clear change at council for the better.

"No-one wants rates increased but I think that it shows that change was necessary.

"The council was in a pretty broken state and it needed money spent on it right across the board."

Haddock cited the council's less than fit IT system, and accounting system linked to the "rates error" late in 2023 as an example, aside from the governance upheaval.

He said the LTP strategy was to invest in staff and systems to ensure "a well oiled machine".

At the same time the regional council general rate, compared to the three district councils was "relatively low," he said.

People still needed to watch their targeted special rating district levies, above the general rates and uniform annual general charge.

Significantly the proposed LTP ushered in special rates for Westport residents (a 539% bump) for the first time to pay for the already budgeted share of their Government co-funded $22.9m flood resilience scheme.

Yet there was apparently little kickback on it, Haddock said.

"I think it shows that people accepted that they want that for the betterment for their community.

"It's unfortunate it does cost … let's not forget they are being subsidised."

Haddock compared the future benefit for Westport to that of the Greymouth Floodwall scheme via special rates for 30 years, "for the betterment of the town".

Under the proposed LTP "balancing the budget" and whether council should shoulder the Predator Free Te Kinga project were the two main consultation topics.

Ratepayers were also asked to comment on the LTP financial and infrastructure strategy, policies, and user fees and charges.

Comment was also sought feedback on the planned transfer to its ownership of the Grey District Council owned Greymouth Floodwall, and the Westland District Council-built Havill Wall protection bank at Franz Josef.

Under the first general rates increase option all properties in the Grey District will pay the following per $100,000 of capital value:
* General rate, a $14.70 increase from $50.26 to $64.96 in 2024-25,
* Emergency management levy increase from $10.17 to $4.58,
* The one district plan (Te Tai o Poutini Plan) decreases from $15.22 to $3.99 in 2024-25,
* The Uniform Annual General Charge in 2024-25 increases $36.31 to $192.59.

It means a Grey District dwelling worth $300,000 will see their total general rates bill increase to $443.70 in 2024-25.

This is made up of:
* General rate, $194.89
* Emergency management, $4.27
* Te Tai o Poutini Plan, $11.96
* Fixed UAG charge, $192.59

That excludes any special rating district levy, such as for the Greymouth Floodwall area.

8 hours ago

$700,000 mistake left to fester at Coast council for three years

Nicole Mathewson Reporter from The Press

By local democracy reporter Brendon McMahon:

A billing mistake that saw a debt of just over $701,000 sit on the West Coast Regional Council books for three years should never happen again, according to the head of its finance committee.

Council this week congratulated itself on the recovery of long standing debt in the past few months, the ongoing rebuild of its finance management system, and a pending report back on four internal audits driving the rebuild.

However, Risk and Assurance Committee chairperson Frank Dooley (pictured) said the error made back in 2021, leaving a $701,718 debt on the council's books, still needed to be cleared up through the council's annual reporting.

Caused by a "clerical error", the debt was indicative of the council's previous dysfunction where a billing mistake was left to fester instead of being proactively followed up, he said.

"It was a double up in an invoice.

"You just don't follow up three years later," Dooley said.

A public outcry in late 2023 spurred a flurry of activity by council to sort out its rates and debt systems after some ratepayers were overcharged by up to 300% in the first installment for 2023-24.

It has already adopted a new system to chase up external debt and internal audit reviews are currently underway into:
* cash handling
* credit card and fuel card expenditure
* procurement (capital and operational)
* rates setting and charging processes.

Chief executive Darryl Lew said the findings should be reported directly to the committee by June.

He said it reflected "a significant body of work" with new actions out of it needing to align now with the 2024-34 long-term plan and a planned revision of council's committee structures, he said.

Councillor Peter Haddock said council's commitment to do a fix up had been quite a resource commitment when it was "running low".

But it was essential to rebuild the organisation.

Councillor Peter Ewen said that was significantly helped by changes at the top in the past year, with the chair replaced and a new chief executive.

"A lot of the progress that has come about is because we now have communication between the chair and the chief executive.
"It's made a hell of a difference," Ewen said.

On May 16, Dooley told LDR the $701,718 dated back to a claimant being invoiced twice and the amount then being carried over in council's debtors' ledger.

He said there had been no inquiry until recently about it when it became clear the amount was disputed.

The "mistake" had made a $700,000 impact on council's bottom line.

"The impact of that $700,000 reversal will probably be in the annual report."

Dooley said at this point he was unsure if that particular mistake could have been repeated.

"I don't really know but that's why you have to drill down debtors on a regular basis - that's when you pick it up.

"Errors have to be investigated and corrected, and that hasn't been happening," he said.

Council was now working with its auditors to build new systems including ensuring accurate rendering of rates debt.

"We're starting to drill down, asking are they accurate or not?

"I've got a lot of confidence now … we're putting in place the appropriate procedures and controls so we can manage this on a day to day basis and make it effective."

Dooley said part of the issue had been inadequate staff numbers - despite some question around an increase in staff at council.

"If you don't have those people doing the right job, it creates inefficiencies, and creates a massive cost to the ratepayers - every time we make a mistake it costs.

"I'm really pleased about the progress."

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