Council reserves fund flooding cleanup

Omakau Bridge was damaged during October flooding. PHOTO: SUPPLIED
Omakau Bridge was damaged during October flooding. PHOTO: SUPPLIED
Council reserves have been tapped for the third time in two years to fund flood-damaged roads.

At the Central Otago District Council meeting last month, the council approved taking $480,494 from its roading emergency reserves fund after October’s heavy rain event that resulted in temporary road closures and restrictions, flooding, scouring, washouts, blocked culverts, and debris build-up throughout the district.

In his report, council roading asset manager Mark Hardman said the estimated cost was $980,600.

Council had applied for a 51% New Zealand Transport Agency emergency works subsidy, which the roading team was reasonably confident of securing, Mr Hardman said.

The remaining $480,494 would be funded from the council’s roading emergency reserve account.

One of the hardest hit areas in October was the Maniototo, which had widespread demand for grading and spot metalling.

In 2023 the council approved $103,986 for the repair of Bridge 93, on St Bathans Loop Rd, and in February $89,795 was released for repairs across the district.

Council had two emergency works reserve accounts, which prompted some discussion between councillors about which account should be used to fund the work.

While the council’s emergency works reserve account had a balance of about $2.6million, at June 30, the roading emergency works reserve account was in deficit by about $525,000 on June 30.

The 2024/25 annual plan had budgeted to reduce the deficit by $162,000.

It was decided the funding would be taken from roading emergency works account and the amount allocated to the fund would be reviewed during the long-term plan process because of repeated impact of weather events on roading.

The full impact of October’s rain would not be known until all recovery work was completed.

Any costs over $980,600 would be funded through normal roading maintenance and renewal budgets. 

— APL