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The costs flowing from the Auckland floods in early 2023 could reach $4 billion, according to ongoing calculations being done by Auckland Council.
As well as costs faced by the council, the new figure takes into account the higher price of more resilient infrastructure that might be needed in the future.
Five people died and as many as 800 homes have been badly affected by two weather emergencies: torrential rain at the end of January, followed by Cyclone Gabrielle just over a week later.
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Auckland Council has produced the new estimate in an update it filed to the stock exchange NZX.
Earlier this year, the council had estimated the direct impact on its finances as $1.2b, but the new figure takes a wider view on spending that might be linked to the floods.
“$4b is a rather confronting figure and we must stress that this is an overall envelope – the potential total cost to Auckland, not the cost to be borne in its entirety by Auckland Council ratepayers,” said Phil Wilson, the acting chief executive.
RYAN ANDERSON/Stuff
National Director of Taskforce Kiwi Richard Adams and his crew of volunteers go to work cleaning up properties after January’s heavy flooding in Auckland.
One example of new unknown costs is the property buy-out scheme – still being negotiated confidentially with the government – to purchase housing in areas considered unfit for future living.
“Work continues to confirm the number of severely affected properties, the detailed infrastructure that might be needed to protect properties and communities, and the specific details of the property buy-out scheme,” said Wilson.
The statement to the NZX carries little new detail, but is intended to inform investors who hold council bonds that are listed on the exchange.
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