Waimea Community Dam Cost and Rates Estimates

This page provides a breakdown of operating costs and capital cost estimates for the proposed Waimea Community Dam. It also provides information on rates

Please Note:

  • Cost estimates continue to be refined as the more detailed financial planning by the JV partners occurs.
  • Some detailed cost estimates are commercially sensitive as release would impact on current and future negotiations.
  • The operating costs in the Statement of Proposal relate to the full costs when the dam is operational.
  • The current overall estimate is that the operating costs would fall into the range from $1.4 to $1.5m a year.
  • Depreciation is not intended to be funded.

Cost Estimates

Major items making up these annual costs are:

Operating CostEstimate
Resource Consent requirements

150,000

Administration and company board support

77,000

Professional Directors fees (7)

157,000

Repairs and maintenance (programmed and reactive)

200,000

Management contract

58,000

Council rates

  215,000

Insurance (Material Damage)

  365,000

Insurance (Public Liability)

  100,000

Insurance (Other)

32,000

Other operating costs

  45,000

 

 $ 1,399,000

Capital Cost Estimates

 

Base Construction cost

  49,800,000

Forestry Roads and Power

  800,000

Vegetation Clearance

  1,200,000

Land and Access

  2,000,000

Consulting fees & Project costs

  5,400,000

Inflation

  3,200,000

Scope change and risk contingency  P95

13,500,000

 

$ 75,900,000

Consent and other Sunk costs to 30 June 2015

6,600,000

Total  Estimated Capital costs

$ 82,500,000

Waimea Community Dam Proposed Annual Rates Income and Expenditure

 BaseUnitsRateAnnual Income

District Wide Fixed charge

per rateable unit

23,000

Units

$29

$673,000

Zone Of Benefit Rate on CV

5,200,000,000

$/Cv

$0.000055

$289,000

Increase in water charges

 

% inc

10%

$934,000

       

$1,896,000 GST Inclusive

Annual Expenditure 
Loan Servicing and principal repayments $860,000
51% Share of dam operating costs $788,000
Total Annual Expenditure

$1,648,000 GST Exclusive =

$1,896,000 GST Inclusive

The above figure is an indicative amount for the 2021/22 which is
the year after the dam becomes fully operational.

 

While the Loan Servicing costs (interest & repayments) will remain the same as
they are based on a table mortgage the operational costs will increase because of 
the annual Cost Adjustor applied.
As such there will be rate increases year on year because of this.