Two Mid North Coast councils are carrying millions of dollars in debt while they wait for the state government to reimburse them for flood recovery works.
What happened: Following multiple major disasters, Mid Coast Council and Kempsey Shire Council funded immediate repairs, including roads, bridges, water infrastructure and clean-up, before state or federal funding could be accessed.
This is standard procedure, and done with the expectation of reimbursement from the NSW Reconstruction Authority.
The costs: Mid Coast Council has spent $43 million on emergency repairs but has received only $6 million back, leaving it $37 million out of pocket. Kempsey Shire Council is still owed a further $6 million.
Both councils have drawn on cash reserves to cover the costs.
What they’re saying: "The funding gap means projects the money would have been spent on get delayed," said Mid North Coaster reporter Ellie Chamberlain.
The Reconstruction Authority said it continues to work with councils on outstanding payments but has not provided a timeline.
Chamberlain said the pressure was compounded by the frequency of disasters in the region, which has recorded flood or storm declarations every year from 2020 to 2025.
"In the regions, councils aren't usually flowing with cash. This just puts that extra bit of pressure on them," she said.
The NSW Government is progressing its State Disaster Mitigation Plan, with 19 of 37 actions delivered as of February this year. Chamberlain said the situation pointed to a broader shift needed in how governments respond to extreme weather.
"Rather than just looking at funding recovery, it's about funding resilience," she said.
Watch the full interview below:
Thumbnail: AAP