The group of residents had a meeting with BVSC staff and councillors last Thursday, November 19, where general manager Leanne Barnes was handed the letter.

The letter stated, "We have been instructed to obtain quotes for the BVSC for the damage to be repaired in full and as a result the damages have totalled in excess of $355,000 to date with quotes still coming in from affected residents.

"We are requesting that you action our complaints within 14 days and address the damages within 14 days of receiving this letter."

The letter of demand includes concerns residents have regarding the impact of the lime dust on their physical health.

Resident Malcolm Terry said he is experiencing health difficulties and is handling it through a lawyer separately.

"At least four residents I know of with no prior respiratory issues are now suffering," he said.

"I've had problems with my breathing and have now been given a specialist report... my lungs are OK, but I have developed a disease in my throat and nose.

"Hopefully it will improve, but it's unknown and more tests are required.

"What about the school kids who might have breathed it in?" Mr Terry said.

The letter also stated, "A number of residents also feel this has affected their health and they are following this up with their medical practitioners. Complaints were made to council at the time the incident occurred of burning eyes and throat."

Mr Terry said residents had explored making claims via their own insurers for damage to homes and vehicles but have not had positive results.

"NRMA told me my car is not covered for chemical damage, I imagine it's probably the same for others," Mr Terry said.

"Council's insurance has to do something now."

"Even if we can stop it from ever happening in town again, that would be something," Mr Terry said.

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