Major environmental projects in and around Manawatū, including large-scale flood protection for Foxton, may be significantly scaled back as rising costs mess with bu
The council did spend $2.14m less than expected, but much of that was down to not paying expected staff wages or for external contractors.
Catchment operations group manager Jon Roygard said there had initially been $27m worth of flood protection work planned, but that was set to be scaled back to $17m.
It was a case of ensuring everything was lined up for jobs, with ones which had Government money behind them taking priority.
”If we don’t do the projects, we don’t get the revenue,” Roygard said.
”That will come at the expense of fully ratepayer-funded projects.”
But even those Government projects, including a plan to significantly upgrade Foxton’s flood protection, were impacted.
The Foxton work is needed, given parts to the east of the Horowhenua town have flooded four times between 2007 and 2017, while some houses had water to the ceiling during the large 2004 flood.
Getting land for the Foxton project was a big issue, with the hold-up meaning Horizons had to withdraw its resource consent application, Roygard said.
Rising costs was another problem, as they were not matched with more Government funding.
That left the council either having to cut back on projects or using rates to fund it, he said.
Staff were putting together options for councillors to consider at a meeting in April.
Roygard said the plan to upgrade the Reid Line floodway, which protects Feilding from significant flooding, was also part of the conversation.
Putting off flood protection work which was not Government funded did come with risks, but inflation, a tight job market and the unavailability of contractors – either by them being busy or isolating due to Covid-19 cases – left few options.
“We have been cutting our clothing to make it fit.
dgets.
Inflation, Covid-19 and even the war in Ukraine were raised as reasons behind Horizons Regional Council’s issues during the council’s audit, risk and investment committee meeting on Tuesday.
Much of the meeting focused on how the council performed during the first eight months of the current financial year.
It was not an accountancy bloodbath, with the books $1.01 million unfavourable largely because grants from Government sources had not been paid out yet.
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