Regional council corporate services manager Wayne Scott confirmed yesterday public consultation would be required before any special rate was created and introduced.
The regional council's finance and corporate committee agreed this week a special Stoney Creek rating area could be imposed to pay to complete stage one of the flood works, which was budgeted at $250,000 but are now expected to cost up to $400,000.
Completion has been delayed because the Hopgood Family Trust has refused to give the council access to its land on Studholme Rd.
The budget blowout has been caused by a combination of factors, including the delays and increased construction costs, Mr Scott said.
Mr Bullen co-ordinated a ratepayers protest against a proposed special rate in 2005.
The community would be "hugely annoyed" with the situation, he said.
"We have been there, done that, had the ORC edict. Now they are short of money and going to the weakest link," Mr Bullen said yesterday.
Mr Bullen presented a submission signed by 190 residents to the regional council in 2005.
He successfully persuaded the councillors to throw out the special rate in favour of an cost-sharing agreement between Stoney Creek developer Willowridge Developments Ltd, the Queenstown Lakes district and the regional council.
Willowridge and the QLDC agreed to pay $80,000 each but those amounts have not been fully spent because they were linked to specific parts of the project.
The regional council has shouldered the bulk of the cost ($166,000) so far.
The special rate proposal was "as ridiculous now as it was then", Mr Bullen said.
"It is unfair to rate a predetermined area for something that should have been the developer's, the Queenstown Lakes District Council's and the Otago Regional Council's cost and responsibility."
"I think people will be even more focused [in opposing it] now even more landowners have built houses there," Mr Bullen said.
The committee's recommendation was carried on Thursday, and will be ratified by the regional council at a meeting in two weeks.
All regional councillors are on the finance and corporate committee, and all except Cr Sam Neill attended Thursday's meeting.
Mr Bullen said he would like to know more details, such as how much the special rate would cost, and whether those living in the special rate zone would have to pay more than ratepayers outside the zone.
Mr Scott said the 2005 proposal would be "a good starting point" for public discussion and reviewing the costs and benefits of the scheme.
"If such a rate was contemplated, we would have to establish a rating district and levy a rate. That can only be done with public consultation," he said.
There was no timeframe for the process to begin but costs were already significantly greater than anticipated, Mr Scott said.
Meanwhile, the regional council and the Hopgood Family Trust have so far been unable to resolve the access issue.
The Otago Daily Times sought an interview with brothers Eric and Owen Hopgood yesterday.
Eric Hopgood could not be contacted and Owen Hopgood referred questions to his Dunedin solicitor, Michael Nidd. who could not be contacted yesterday.
The story so far
1999: A flash flood in Stoney Creek inundates houses in the suburb of Rippon Lea.
2004: Another damaging flash flood forces ORC and QLDC to confront flood protection.
2005: The QLDC imposes a moratorium on building in the flood-prone area while the ORC draws up plans for a $1.4 million flood protection scheme. The ORC decides to proceed with stage one at a cost of $250,000, providing protection from a one-in-50 year flood. Other stages would be completed as and when required by future development.
2005: ORC proposes a $250,000 special rate to be collected over five years from Wanaka ratepayers. The preferred option was for ratepayers living in a zone including Stoney Creek, Meadowstone, Rippon Lea, Far Horizon Park and Studholme Rd to pay 70%.
2005: After ratepayer protests, the ORC signed an agreement with Willowridge Developments, and the QLDC to foot the $250,000 bill. Willowridge and QLDC were to pay $80,000 each and the ORC was to pay the balance from the Wanaka river management special rating area.
2009: Stage one works, except for those on Hopgood land where access has been denied, have been completed at a cost so far of $260,000. Willowridge Developments has paid $67,000 and the QLDC has paid $27,000 so far. The cost of the works to be done on Hopgood land has been estimated at $170,000.
