By David Hill, Local Democracy Reporter
Kaikōura’s council has approved a $2m contingency loan as it faces a hefty repair bill following the July 7 flood event.
Councillors voted to allow chief executive Will Doughty to borrow up to $2 million, at a council meeting on Wednesday, July 29, to allow the council to get on with repair work as it waits for Government assistance.
Council corporate services senior manager Peter Kearney said staff estimated the repair bill could be between $3m and $5m.
The $2m loan funding was based on what staff predicted Waka Kotahi NZ Transport Agency ‘‘won’t be funding’’, he said. ‘‘Our fear is it wasn’t big enough to warrant large Government funding.’’
An estimated 450mm of rain fell on July 7 and 8, with flood waters moving an enormous amount of gravel and sediment down the Kowhai River.
Rivers, bridge approaches and rural roads throughout the district suffered considerable damage.
But the town came through relatively unscathed, which has been credited to the investment in flood protection following the devastating 1993 flood.
‘‘At this stage infrastructure costs, including access to Cribb Creek, Inland Road, Puhi Puhi Road and roads on the flat (north of the town), we estimate will be between $3m to $5m,’’ Mr Kearney said.
The council will be able to apply to NZTA’s emergency works fund to assist with roading infrastructure repairs at the usual co-funding rate of 51 percent.
Any increase in the Government share would be subject to approval from the NZTA board.
Council emergency management officer Alison Moore said staff would prepare an economic impact statement and highlight the impact on a small population to support its case.
Mr Kearney said even a 75% subsidy on a $5m repair bill would leave the council with a significant level of debt for its small population, with just 3000 ratepayers.
‘‘Ideally for us it would be a 95% subsidy.’’
Cr Tony Blunt said after the 7.8 magnitude earthquake in November 2016, the council faced a $3m deficit in its roading budget due to the damage.
But after presenting its case to the NZTA board, the council received a 95% subsidy on several projects, he said.
Ms Moore said flood protections on the Kowhai River had been severely damaged and the riverbed raised due to the movement of gravel, leaving the town vulnerable to another flood.
Staff are working with Environment Canterbury on a new evacuation plan.
‘‘It will need to be put out to the community and people just need to be prepared,’’ she said.
Mr Kearney said the $2m loan would be in addition to the $10.2m debt limit forecast in the 2026/27 annual plan, and would only be drawn down if needed.
The council’s present debt level is $9m, he said.
LDR is local body journalism co-funded by RNZ and NZ On Air.
