Tauranga City Council is facing escalating financial commitments in the wake of January’s deadly storm and landslide disaster, with total costs expected to run into several million dollars as recovery efforts continue.
According to a council report, more than $2 million has already been spent responding to the event, which followed record rainfall on January 21 that triggered landslides across parts of the Bay of Plenty.
The disaster resulted in multiple fatalities, including deaths at a residential property in Pāpāmoa and at council-owned facilities near Mauao in Mount Maunganui.
The report outlines that total spending for the current financial year is expected to reach approximately $2.4 million by June. These costs include emergency response measures such as securing access to Mauao, conducting geotechnical investigations, installing monitoring systems, and supporting welfare initiatives, including the establishment of a community care centre.
Physical works have accounted for more than $600,000, while security-related costs have reached around $350,000.
Looking ahead, the council estimates that a further $8.6 million will be required in the next financial year to support ongoing recovery. This includes a provisional $6 million allocation for capital works, alongside operational expenses tied to monitoring, safety management, and continued response efforts.
A significant portion of the expenditure is linked to legal and professional services, as multiple investigations into the incident remain ongoing. The council has already spent close to $500,000 on legal and technical support, with a further $850,000 expected by the end of the current financial year. Legal-related costs could rise to approximately $2 million in the following year as reviews and inquiries progress.
Several investigations have been launched by the coroner, WorkSafe New Zealand, police, the council itself, and central government authorities.
In terms of funding, the council is considering drawing from its risk reserve fund, which held around $5 million as of mid-2025, as an alternative to increasing rates. Insurance is also expected to offset some costs, with a $1 million advance payment already received. However, coverage limitations remain, particularly for uninsured assets such as walking tracks and certain infrastructure.
The financial impact of the disaster will also be reflected in the council’s draft Annual Plan for 2026/27, as it evaluates the longer-term budget implications of recovery and rebuilding efforts.
