Council surplus hit by weather insurance claims costs

Extreme weather events continue to take toll on New Zealanders

Council surplus hit by weather insurance claims costs

Insurance News

By Krizzel Canlas

Extreme weather events over the last year have left the Waitaki District Council with a reduced surplus expectation for this financial year.

In a report by Otago Daily Times, the council’s expected surplus was $381,000 – a far cry from the budgeted surplus of $3,432,000 and last year’s surplus of $1,531,000.

The publication detailed that the figures reflect an unbudgeted increase in depreciation resulting from the roading revaluation ($1,250,000), reduced revenue due to the reset on the $6 million redevelopment of the Forrester Gallery ($2,000,000), and the costs incurred from extreme weather events ($1,600,000).

However, Waitaki District Council accounting manager Ian Wells reportedly said they could expect the resolution of related insurance claims in the coming week. He expects anything from nothing to $500,000 “or better.”

The council has already received $550,000 in NZ Transport Agency subsidies for flood damage, and $85,000 from insurance payouts.

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