Funding
Kāpiti ratepayers have invested proactively in our water infrastructure and services, and we're well positioned for the future.
There's currently no concrete plan for how councils will be reimbursed once our water assets are transferred to Entity G. We do know the Government will not pay us what they're worth.
We're very aware that losing three waters assets also impacts our ability to borrow for other community-based infrastructure and improvements.
We're committed to achieving positive three waters outcomes for our community, and will continue to advocate for our district's interests to make sure the needs of Kāpiti are prioritised in a changing climate and unprecedented growth. This includes taking advantage of any funding available to us.
Central government funding
Government has made various funding avenues available to councils as part of the Three Waters reform. These include:
- A $761 million Three Waters stimulus package to assist councils' investment in critical water infrastructure and services, and to help to stimulate economic activity and jobs (2020).
- A $44 million support package to ensure councils have the necessary resourcing to implement the Three Waters reforms (2022).
- A $500 million no-worse-off fund to ensure no local authority is financially worse off in the short term as a direct result of the reform (2021).
- *A $2 billion better-off fund to enable investment in the future of local government and community wellbeing (2021). *In the April 2023 Water Services Reform reset, tranche 2 of $1.5 billion was withdrawn.
Below is a breakdown of the budget allocation our Council has received from each of these funding packages.
Infrastructure stimulus funding
- 2020/21 – $3.13 million
- 2021/22 – $3.13 million
The main projects Council has used this funding for includes:
- Water safety and asset management improvements
- Local authority reform programme support
- Stormwater modelling and network connectivity
- Stormwater condition assessments
- Water safety and resilience projects
Financial support package
Council has secured $541,000 which will be spread over the 2022/23 financial year.
This funding will support our resourcing and the supply of information to the National Transition Unit, as well as responding to any additional requirements or processes required by the Water Services Entities Bill and relevant legislation.
No worse off funding
Of the $500 million available, we anticipate receiving $3 million for the 2024/25 financial year.
Better off funding
Of the $2 billion that was initially available through the Better Off package, Council's secured $21.05 million.
In January 2023 we secured $5.26 million (Tranche 1) for 14 new or accelerated, scaled up, or enhanced projects already consulted on and planned for in Council’s Long-term Plan 2021–41 (LTP).
*Tranche 2, of $15.79 million, has been withdrawn as part of the Government's Water Service Reform reset.
Allocated funding must be spent by 30 June 2027, and used on projects that:
- build our community’s resilience to climate change and other natural hazards
- deliver infrastructure supporting housing development
- enhance local placemaking and community wellbeing.
Tranche 1
In early 2023, Te Tari Taiwhenua – Department of Internal Affairs (DIA) confirmed the 14 projects, totalling $5.26 million we put forward for funding were accepted.
These projects are new initiatives or requests to accelerate, scale up, or enhance projects already consulted on and planned for in Council’s Long-term Plan 2021–41 (LTP).
In April 2023, Council proposed to reallocate $3.2 million of tranche 1 Better Off funding as part of their 2023/24 Annual Plan. The proposal is to borrow funds for projects such as the Ōtaki Pool low-emissions power source and storytelling related to Kāpiti Island at Paraparaumu Beach’s Maclean Park. These projects would then be funded through Capex instead. This proposal must be approved by the Department of Internal Affairs and discussed and agreed with the Council’s iwi partners.
Install a new heat recovery and low-emissions power source for Ōtaki Pool.
This is a scope increase not covered in the current Long–Term Plan (LTP) budget for the Stage 2 upgrades. This project will help reduce emissions by approximately 180 tCO2
Initial projects to enable collaboration, capability-building and sustainability as part of the Food and beverage cluster work. There's an immediate need for resource to support the needs of Ngā Hapu/Ōtaki Porirua Trust Board to realise their aspirations and opportunities for sustainable food production involving regenerative horticulture, including Maatauranga Māori.
The proposed budget of $325,000 will fund project costs, workshops, business support, communication strategy, and Ngā Hapu o Ōtaki Capacity Funding of 1.5 FTE for 12–18 months.
Benefits include:
- providing capacity for Ngā Hapu o Ōtaki
- supporting the economic development of one of Kāpiti’s most important sectors
- building resilience in view of the impending national recession
- creating job opportunities for local people
- attracting new businesses
- growing the local economy.
Progress with strategic partners the key outputs and next steps from the Education Hub and Skills Needs Assessment and Feasibility Study. Skills and labour shortages are the number one challenge for most of our sectors.
The proposed budget of $250,000 will fund project costs, workshops with strategic partners, community engagement in terms of possible locations for the hub, and various expertise, and Iwi Capacity Funding of 1.5 FTE for 12–18 months.
Accelerating this kaupapa (project) with access to funding for this next step will be critical to maintaining the current momentum set by Council in Feb 2022, when elected members adopted the Workforce Plan.
Maclean Park Stage 2 – Lighting and shading improvements to skatepark and basketball court – $185,000
Improved lighting has been requested during public engagement as part of the Maclean Park refresh project, including path lighting in the park to improve safety around the amenity block. Lighting of the basketball court has been requested by the community board.
This will allow for a high-quality skatepark upgrade and improve the space for families and youth to use.
To cover the additional cost of installing modern accessible facilities, including more toilets and new showers, as part of the Maclean Park refresh project. Changing Places Trust specifies the requirements for these facilities, and operates a national network of access to them.
Design and implementation of storytelling related to Kāpiti Island, in a way that is appropriate to be told within Maclean Park as part of the Maclean Park refresh project.
Mahara Gallery operating costs are expected to exceed budget by approximately $400,000 per annum. This is proposed as interim funding until an operating model is established, and actual costs are definitive.
Benefits include ensuring our district gallery meets accepted museum and gallery standards.
Introduction of a stimulus fund to help fund sustainability projects in the district, working in partnership with the community.
Benefits include:
- increasing leadership in Climate and Sustainability
- driving and supporting Kāpiti’s overall emissions reductions
- increasing community resilience
- expanding sustainability education.
Additional funding is required to supplement the current Long-term Plan budget of $13.8 million.
High-level cost estimates based on square-metre rates and similar projects suggest a new building would be likely to cost over $18 million.
Funding of $535,000 for toilets and amenity projects has been secured through the Ministry of Business, Innovation and Employment’s Tourism Infrastructure Fund (TIF), but a further $300,000 needs to be funded by Council. This funding will ensure these projects are delivered within 18 months.
Benefits include improving tourism infrastructure needs and protecting the environment, as there are no existing facilities at the sites.
The toilets will be located at:
- Waikanae River Trail
- Chrystall’s Bend on the Ōtaki riverbank
- Hemi Matenga Reserve.
$250,000 per annum operational funding for two years to advance the housing portfolio and programme, such as work on housing development feasibility and older peoples’ housing.
This is a key step to ensure our people have access to suitable housing in Kāpiti so they can live and thrive.
To support the Āti Awa, Toa, Raukawa Confederation to enable the development and implementation of Māori housing solutions for whānau and hapū to live and prosper on the Kāpiti Coast, as agreed in the Housing Strategy.
The age-friendly strategic approach and action plan is under development, and will soon be adopted by Council.
There's currently no specific budget for implementation, on the basis that activity would occur within existing budgets and projects, with additional costs to be identified for inclusion in the next Long-term Plan. This funding would mean additional funds likely will not be required in the Annual Plan 2023/24.
Contribution towards new clubrooms and function room for community use. Note this is not a Council asset – it is a public access agreement like the Te Raukura ki Kāpiti Performing Art Centre.
This will provide new clubrooms and function room for community use.