The two recent Kona low storms could cost the City and County of Honolulu as much as $100 million.
Mayor Rick Blangiardi’s administration has given the Honolulu City Council a preliminary cost and damage estimate of up to $52 million, and that's likely to grow.
City officials hope federal funding will cover a large part of that.
“We've been working with (the Federal Emergency Management Agency), who's been going out with our teams in vans to verify the losses, and we're confident that we've reached FEMA eligible declaration,” said city Managing Director Mike Formby.
If FEMA determines that the recent flooding is considered a disaster, it can cover 75% of the cost of repairs, debris removal and other recovery efforts.
Some of the highest costs the city has estimated so far include $10 million for “housing” and “community assistance,” another $10 million for flood control efforts, and $5 million for debris removal. There’s also $9 million in repairs for damage to city property in Chinatown alone.
The city hasn’t yet determined costs for city overtime work, pumping and hauling work, or the maintenance of city streets.
The council and the Blangiardi administration discussed where flood recovery funds would come from in an already tight budget year.
Aside from federal funds, the city will request pulling money from its Fiscal Stability Fund, a rainy day fund meant for emergencies. But the city is careful about depleting the fund too much, as that could affect its bond rating and ability to borrow funds for projects.
“The council and administrations from the past have diligently built the fund up to almost $200 million, so the goal is to use it prudently and ensure that we only use the fund for exact needs that have to be addressed right away,” said Honolulu Department of Budget and Fiscal Services Director Andy Kawano.
The council is currently going over Blangiardi’s proposed $5 billion budget for the upcoming fiscal year, though the administration is set to modify its proposal over the next couple of weeks to account for flood recovery.
Council Chair Tommy Waters said he wants to ensure that as much funding as possible goes to those who were affected by the storms.
“These numbers are staggering, but it doesn't compare to the loss that people sustained with private property. I think it's estimated and reported up to $1 billion,” Waters said. “People lost everything … their cars, their homes, their computers, and just (we’re) trying to get them as much help as we can and as much as we can afford.”
