MEDIA ADVISORY
Preliminary Hurricane Costs Prepared
(Tuesday, November 18/2003)-- Preliminary estimates of damage and clean-up costs as a result of Hurricane Juan are approaching the $25 million mark so far, Halifax Regional Council was advised today.
In an information report prepared by staff, it was stated that approximately $5.4 million has been spent as a result of Hurricane Juan to date, with anticipated future costs of $19 million, for a total cost of $24.4 million of incremental costs to HRM .
Not included in the figure are regular time wages of HRM staff who worked exclusively on the Hurricane Juan recovery operation. These costs exceed $1 million and, while they do not represent incremental costs to HRM, they do represent an opportunity cost. Further details of this figure will be included in a future report.
Staff advised in the report that, as of this date, only about 800 of a total 1,200 HRM properties have been assessed for damage and clean-up. Therefore, these preliminary estimates are subject to change. In addition, it is anticipated the work caused by Hurricane Juan will continue for the next 18 months.
Funding for the costs associated with Hurricane Juan will come from one of four sources: insurance claims, the federal Disaster Financial Assistance (DFA) program, public donations, and the HRM budget. The staff are now examining the potential impact on this year's Operating Budget and will report to Council at a later date.
It is anticipated that $1.8 million of the $24.4 million incremental costs will be recovered through insurance, leaving a figure of $22.6 million which HRM is pursuing through the Federal government's Disaster Financial Assistance program. The first financial claims will be submitted within the next couple of weeks. Final rulings by provincial and federal officials will not be made until HRM's claims are audited sometime in 2004.
Approximately $1 million has been raised to date through corporate and public donations and the HRM Infrastructure Recovery Fund.
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George McLellan
Chief Administrative Officer
(902) 490-4026
