Roadwork Funding After Cyclone Gabrielle

The Times-Age asked a series of questions about the cost and funding of road works related to Cyclone Gabrielle. The following information was provided, attributable to Kaine Jaquiery, Roading Services Manager:

• Can I please have a total for the amount Council has spent on cyclone recovery, broken down into categories?

The cost of the initial response has been estimated at $1,350,000, with work expected to continue for most of March to bring major roads to a safe level of service removing slips/overburden and trees. Work has also involved the reinstatement of bridge abutments/removal of forestry slash.

Temporary traffic management will be required for the next six months on roads where dropouts and washouts require additional safety measures in place. The above cost does not include road reinstatement. Professional services from specialist geotech teams and structural engineers will be required to design the works needed to achieve the complete reinstatement.

• What do you estimate the final spend to be, broken down into categories?

In terms of reinstatement of roads to their pre-event state, it is not possible to provide a meaningful estimate at this point, but this will be multiple millions of dollars.

• How much of the total spend will fall on the ratepayer?

Like other councils affected by the recent weather events, Masterton District Council is awaiting information from Waka Kotahi on the subsidy rate for this work. See below for reference to the rating requirement to replenish the Council’s Flood Damage Fund.

• How much money will be left in the corresponding reserves, e.g. the rural roading reserve? (this is actually called the Flood Damage Fund)

As stated in the annual plan consultation paper considered at the 1 March Council meeting, the weather events over 2022 and 2023 have generated significant damage to the road network. There have been major costs incurred responding to those weather events and repairing damage in order to keep the roads open. Increased subsidy rates from Waka Kotahi are expected to reduce the impact on the Council, but the Council’s Flood Damage Fund is already in deficit. A provision of a nominal $500,000 from rates next year to begin to rebuild those funds back to being positive has been included (1.3% of the proposed rates increase).

• If/when another cyclone hits, does the council have the means to pay for recovery to roads? If not, what is the plan?

While the Council’s Flood Damage Fund is projected to be carrying a significant deficit, the Council has other funds in reserves to balance cashflows and fund immediate work required as a result of a future weather event. These are general capital reserves and depreciation reserves that the Council is able to fall back on. If/when another cyclone occurs, future rates increases, greater than what has been proposed, will be required to fund the recovery. Borrowing to meet road repair costs also remains an option for the Council.

• Have any roads been earmarked as unrecoverable, if so, which ones and why?

No

• Is the council confident that it'll be able to obtain Waka Kotahi or other government funding in another natural disaster?
• What percentage of the repairs for Cyclone Gabrielle will be paid for by central government?
• How much money has central government provided for recovery works so far?

The detail of Waka Kotahi’s financial contribution is not yet known.

Waka Kotahi’s website sets out their approach to emergency works.