Halifax faces repair bills of more than $20M after year of hurricane, wildfire, floods

Halifax is likely to pay more than $20 million to recover from a year of extreme weather.

A staff report coming to the municipality's audit and finance committee Wednesday lays out the recent costs and asks councillors to approve a request to dip into reserves

"Wildfires, hurricanes and flooding rarely seen in the region have caused damage to the municipality's assets and required a significant emergency operational response," the report said.

So far, staff said Halifax has paid out around $10 million for these events with more costs still to be assessed and "major road work still to be completed."

Currently, the municipality is estimating the following costs:
• $4.4 million for post-tropical storm Fiona. 
• $13.7 million for wildfires. 
• $2.4 million for flooding.   

The money will go toward repairing buildings, roads and vehicles, as well as costs from its emergency response like overtime, security, and fuel.

However, the report said these figures are still only estimates since work on the damage is ongoing, and the final costs are not yet known.

Staff are asking the audit and finance committee to recommend that regional council approve the transfer of $15 million from the city's capital reserve to boost the risk and resiliency reserve, and then withdraw $25 million from the risk reserve.

Provincial funds, insurance take time

The risk and resiliency reserve is to deal with "unforeseen events involving substantial costs."  

While some of these costs may be recovered through insurance or provincial disaster assistance claims, the report said those funds are "not expected to be received for a significant period of time."

Since the risk reserve doesn't have a regular funding source, staff suggested that any funds recovered through insurance or a disaster relief claims be put back into that reserve.   

As these severe events become more frequent due to climate change, staff said they will be coming forward with a plan for maintaining all reserve funds.

Municipal spokesperson Klara Needler said Tuesday that Halifax has not yet received funding from the province for damage caused by 2022's post-tropical storm Fiona, but a claim is currently being prepared by the municipality.

Provinces can receive up to 90 per cent of eligible expenses from the federal government through a disaster relief program and then redistribute the money.

John Lohr, minister responsible for the Office of Emergency Management, said Tuesday that municipalities have up to five years to apply for that program, but can also get extensions. He said the province provides funds for processed claims upfront, then is reimbursed by the federal government — which can "sometimes take years."