Flood disaster could lift Whakatane rates 4.3pc

The Matata disaster could inflate rate demands to all Whakatane property owners by 4.3 per cent next year and for the following 30 years if the Government does not provide any funding.

The increase is based on figures presented to a Whakatane District Council meeting on Friday by acting corporate services director Arthur Treble.

Following the flooding of the coastal township on May 18, preferred options for its protection against future debris flow events were approved at the meeting and an estimate of the capital cost to the rest of the district -- $5.9 million -- was tabled.

Mr Treble's figures include an assumption the council would foot the bill for 45 per cent of the cost of acquiring properties to carry out required works and that this share would equate to $1.74 million. On that basis, the total acquisition of Matata properties would cost $3.6 million.

The property figures are based on government valuations at September 2004. The Earthquake Commission and insurance companies, and possibly the Government are parties that would pay the remaining 55 per cent.

The capital cost of engineering works is estimated to be a further $4.15 million. The largest component will be incurred in the Awatarariki catchment at the western end of Matata.

A debris dam 200m above the town, a new flood channel alongside the stream's present location, a single-span railway bridge and a new state highway bridge add up to $2.7 million.

If the council pays the entire cost, paying off loans to repair the damage, depreciation of new built assets, such as the debris dam, maintenance, asset management and silt removal will add an extra $900,000 to the district's annual rates bill, an amount that will need to be sustained over the 30-year loan repayment period.

This figure equates to a 4.3 per cent rate increase.

- nzpa