‘We’re stuffed’: Franz ratepayers’ anguish over flood walls deal

Franz Josef ratepayers have grudgingly agreed to a government finance deal for flood protection which they need but can ill-afford.

The town's joint rating district committee - made up of residents and local council members - voted on Wednesday night to recommend the West Coast Regional Council accept up to $7.9 million, to boost the glacier town's flood defences against the chaotic forces of the Waiho (Waiau) River.

The original government offer was for $10m - made up of a $6m grant, and a loan of $4m to be repaid through rates.

But according to a council survey, the community was split 50/50 over accepting the offer.

And ratepayers challenged the council to explain why they should pay to top up a section of the stopbank network built by transport authorities to protect State Highway 6.

Regional council chairperson Peter Haddock agreed with them.

"The NZTA stopbanks are not rating district assets. The agency has a commitment to keep the highway open, and that should be coming out of the public purse, not from a small group of ratepayers who can't afford it."

The council went back to Franz Josef on Wednesday with reworked figures, taking the NZTA stop banks out of the equation, reducing the cost to ratepayers and leaving the Transport Agency to find its own funding.

The revised costs include the charges residents are already paying for the first stage of the Franz Josef flood protection scheme, along with general rates, uniform annual general charges, finance and maintenance costs.

A property worth $800,000 would pay $4669 in rates next year if the deal goes through.

The Stage 2 loan component would cost the ratepayer about $200 a year for ten years, for every $100,000 of CV.

The funding would cover the extension of the north bank's Havill wall to protect the town's sewerage ponds and the rebuilding of flood defences on the south bank of the Waiho, where farms, homes, an airfield and an old rubbish dump are at risk.

Geologists and engineers have warned the council that the rapidly aggrading bed of the Waiho is now much higher than the town, and the only long-term way to reduce risk is to release the river to the south.

Topping up the stopbanks could buy the town some time, the experts say.

But the cost- and doubts over how the work would be managed - had some south bank residents at the meeting close to despair.

Their hopes of a government buyout had been dashed, their properties devalued and now they were being asked to pay through the nose for a short-term solution, one woman said.

"It's a nice plan but just a crock of shit to us. We're stuck on the land … and you want to build a beautiful new stopbank and a few years later let the river go?"

"Do you councillors actually think this is affordable? People can't pay this - we're stuffed - what are we going to do?" another asked.

"We've got a $2.4m dollar farm - this is going to cost us $14,000 a year."

Others questioned the regional council's ability to manage a project of the size and complexity of the Franz Josef scheme, and work on the north bank had already caused a stormwater flooding problem.

And there were tense exchanges as members of the public complained the council had cut them out of the loop in the past.

"If we accept this money can we trust the council to spend it wisely? We had so little information on the Stage 1 work, no one here has any confidence in the council to manage this properly."

Haddock said the council could not change the past, but he was committed to keeping the community informed.

He urged the community to accept the government's full offer of $10m.

"It's free money … we don't have to draw down the full amount but only spend what's needed, in consultation with the community."

The council had to tell the government by Monday if it wanted the money or the funds would go elsewhere, Haddock warned.

Westland mayor Helen Lash, who chairs the Franz Josef rating district committee, brought matters to a head by moving to accept funding for a project of $7.9m - with strings attached.

The regional council would have to consult the ratepayers on exactly what work would be done and in what order; draw down the loan only as needed, with the approval of the Franz Josef committee and submit invoices and financial reports and invoices to it on a monthly basis, she moved.

Council chief executive Darryl Lew's suggestion that the usual practice was simply to inform the committee of any variances in the budgets was met with instant scepticism.

"That means you could come back to us with a cock-up," one south sider shot back.

"We have a special river - let's have a special joint committee," said south bank farmer Kelley Molloy.

The mayor's motion was carried with only two dissenting votes, from north bank ratepayers Logan Skinner and Ian Hartshorne.

The regional council meets on Friday to decide if it will accept the government's funding offer, on the terms recommended by the Franz Josef ratepayers.

LDR is local body journalism co-funded by RNZ and NZ On Air.