HAY RIVER - A misunderstanding has resulted in the payment of some compensation claims filed because of flooding in Hay River in 2008, according to a GNWT official.

A building in Hay River's Old Town is surrounded by flooding on May 5, 2008. - NNSL file photo

"I know it sounds a little bit unusual," said Eric Bussey, territorial emergency management co-ordinator with the Department of Municipal and Community Affairs (MACA).

Bussey said the 2008 flood did not pass the 100-year flood level, meaning there was no disaster declared.

Some other damaged property did not comply with town bylaws.

However, Bussey said there was a misunderstanding over compensation eligibility and some residents thought they had been approved for assistance even though they hadn't been.

"It wasn't widespread confusion," he said. "There was just some misunderstanding."

Bussey said some people went ahead and spent money to repair their properties as a result of the communication breakdown, and those people are being compensated by the GNWT.

"It was an attempt to be reasonable," Bussey said.

The misunderstanding was the result of a public meeting just after the 2008 flooding caused by the spring breakup of the Hay River.

A MACA official, who is no longer with the department, outlined the compensation process to affected residents.Hay River North MLA Paul Delorey was at that meeting.

"He (the former bureaucrat) made it quite clear, if people made repairs and kept receipts, they would be compensated," Delorey said, noting the MACA official even provided application forms.

The MLA said there was no doubt whatsoever that people would be compensated.

However, a review committee later recommended that no one be compensated.

Delorey said he got "pretty upset" at the review committee report and took the matter to the MACA minister, who agreed to look at the issue in light of the people who had followed the MACA official's advice.

"They had gone ahead and done some work and submitted the claim the way they were told to," Delorey said, noting he is still working on obtaining compensation for a couple more people.

The MLA said he argued for the people who made claims as instructed by the MACA representative.

However, he said he didn't argue for compensation for people who had made repairs, but weren't following the advice of the MACA representative.

"I couldn't argue for those people," Delorey said.

Letters from MACA informing claimants of approval or denial began going out in early May.

Bussey said MACA has revamped its process of providing information.

"We thought the process was clear, but we plan to be more precise and definite in future events," he said.

Kyle Reid, a resident of Vale Island, was one of the people who did not receive compensation.

"I'm not going to make a big issue out of it," he said, noting he took the necessary steps to repair his property and make it more resistant to flooding.

Reid noted he had talked to an adjuster after last year's flood and had anticipated compensation.

"I was given the impression there was no problem, but it didn't materialize," he said.

Reid said it is very important to get the right information out to people.

Under the GNWT's disaster assistance policy, compensation is given for property and possessions considered essential, to a maximum of 80 per cent of value.

For example, a house would be covered, but not a cottage; furniture is generally covered, but not artwork.

There were 30 claims for compensation totalling $140,500 from individuals and small businesses in the town and on the Hay River Reserve.

Of those claims, Bussey said just over $13,500 was paid out for five claims by individuals and small businesses on Hay River's Vale Island. One individual on the reserve was also compensated with about $4,000, while two others were turned down.

Three other people on Vale Island have been asked for more information to back up their claims. Bussey said there is no appeals process.

The Town of Hay River was compensated with just over $57,000 for its emergency response and work such as clearing culverts and removing debris.

That compensation doesn't depend on the 100-year flood rule.

The compensation paid on the Hay River Reserve comes from the Department of Indian and Northern Affairs Canada.

K'atlodeeche First Nation was compensated with almost $122,700 for its emergency response.