Rates rise and loan to pay for storm's damage

The Far North District Council will increase rates this year and raise a $2.7 million loan to help pay for damage caused by the storm on March 29.

The 1 per cent general rate increase, expected to raise $270,000 for interest and loan repayments, will take this year's rate rise to about 6.7 per cent on a median Far North residential property.

Damage caused by the March flooding has been assessed as costing $35 million.

A council report says this includes more than 1700 insurance claims made by private property owners totalling $6.5 million and 272 claims to the Earthquake Commission totalling $5.9 million.

It says 17 properties are still uninhabitable and 45 are "at risk".

The council plans to raise a loan of $2.7 million to help pay for flood recovery costs pending advice on how much Government financial help will be available.

Far North Mayor Yvonne Sharp said the council would make a case to the Government for nearly $2 million which should substantially offset overall costs of recovery efforts.