In the wake of the devastating floods that hit large parts of the City of Greater Shepparton in October last year, the municipality is still grappling with the financial aftermath.
The floods, which inundated much of Shepparton and Mooroopna, had a significant impact on both residents’ homes and businesses, as well as council assets. Among the council assets affected were Victoria Lake Holiday Park, Riverlinks Eastbank, the BMX track, and Aquamoves.
Nine months on, the council reports that “reinstatement works” are still ongoing. Riverlinks Eastbank is operating, albeit at partial capacity, while Victoria Lake Holiday Park is due to reopen to camping and motor homes in the coming weeks.
The council has been proactive in undertaking essential works, not waiting for claims to be processed before starting the necessary repairs and restorations, according to Shepparton news.
The financial impact on the council has been twofold: the cost of damage and the loss of revenue to services. The full extent of this cost is yet to be fully calculated.
However, the council is hopeful that all eligible expenditure under its insurance policy will be fully recouped, and the cost to the council from expenditure falling under the Disaster Recovery Funding Arrangement is yet to be determined.
The council has received AU$1.5 million from the Victorian Government Council Flood Support Fund, which will help reduce the financial impact of the flood. This funding will cover items not covered by insurance or the DRFA, such as the clean-up of open spaces and repairs to the shared path network.
The municipality’s road network was also impacted by the floods, with the council committing to remediation works on sealed roads at an estimated cost of $16.5 million.
The 2023/2024 capital works program budget will also see drainage projects in Lenne St, Mooroopna and the purchase of a new portable stormwater pump to reduce impacts of future flooding events, although this is contingent on funding.
The impact of the floods on the council’s insurance premiums is also yet to be fully revealed. Given the nature of council business, it has a number of insurance policies and the combined increase for some of those policies for 2023/24 has risen by around $9000.
The council is still waiting on the premiums for property and business interruption insurance for 2023/24, and any impact from the floods on those is currently unknown.
The council’s 2023/24 budget aims to meet the needs of the municipality’s residents while also dealing with the financial impact of inflation and the floods, which closely followed the COVID-19 pandemic.
The council is committed to bringing the deficit back while also being versatile with the budget moving forward due to the economic climate.
The City of Greater Shepparton is still counting the cost of the devastating floods. The impact has been significant, affecting both the council’s assets and its financial situation.
However, with ongoing reinstatement works, financial assistance, and a proactive approach, the council is working hard to recover and prepare for the future.
