Hurricane Florence: Historic storm brings a historic price tag - Insurance News | InsuranceNewsNet

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October 21, 2018 Newswires
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Hurricane Florence: Historic storm brings a historic price tag

Star-News (Wilmington, NC)

Oct. 21--SOUTHEASTERN N.C. -- Local government costs to respond to Hurricane Florence were, in most cases, the highest ever, officials said.

"I'd venture to say this will be the most expensive cleanup in the city's history," Wilmington Mayor Bill Saffo said.

During the storm, local governments responded with emergency personnel and officials coordinating rescue responses and keeping the public informed about road closings and other hazards. After Florence roared through, cleanup efforts began, which will make up the lion's share of expenses.

While most expenses likely will be reimbursed by the Federal Emergency Management Agency (FEMA) -- the region and state were declared disaster areas by President Donald Trump -- upfront costs are borne by local taxpayers, mainly through municipal governments tapping their savings accounts, of fund balance.

Here is a breakdown of how much various local governments have either budgeted or estimated the storm will cost them:

New Hanover County

Storm costs are expected to reach at least $20 million. The bulk of the cost is in cleaning up nearly 1 million cubic yards of debris left by the storm. That said, several county buildings were damaged by the storm and will have to be repaired, county spokeswoman Jessica Loeper said.

"Property Management is still assessing the damage to county building, and they are working with the Insurance company to determine actual damage estimates," Loeper wrote in an email.

The buildings include the historic courthouse, Cape Fear Museum, county office building on Chestnut Street and the New Hanover County Government Center, she said.

Wilmington

Officials said the city will likely end up spending as much as $20 million on storm response. Like New Hanover County, the majority of the cost will be in removing an estimated 800,000 cubic yards of debris.

The city council recently approved spending $9 million on initial responses, but city officials told the council that the amount would be just the beginning of costs associated with the storm.

New Hanover County Schools

With numerous schools damaged by the storm, including structural damage, mold and mildew, the tab is expected to come in around $20 million.

District leaders anticipate getting $3 million from insurance, and a to-be-determined amount from the $25 million in N.C. lottery funds Gov. Roy Cooper earmarked this month for school repairs.

Officials also expect FEMA reimbursements for some costs.

Brunswick County

The cost to the county could come in as much as $12 million, according to officials. The county's costs include an estimated $3.5 million in utility repairs, $1.6 million for debris collection, $1 million in damage to county buildings and payroll costs of about $3.1 million, said County Manager Ann Hardy.

"The recovery for Hurricane Florence will take many months and I anticipate costs to grow over the coming months," she said. "During the event, the staff prioritized life protection, rescue, sheltering and public information. Now that we have moved into a long recovery process, staff are continuing to work in harmony with other agencies and with skill and professionalism to support our citizens and businesses."

Most of the upfront cost should be reimbursed by FEMA, Hardy said.

Brunswick County Schools

The school system has estimated that repairs from hurricane damage will cost at least $3.5 million, though the figure could be higher, spokesman Daniel Seamans said.

Pender County

Early estimates had the storm costing the county at least $2 million.

"It's probably going to be a lot more than that," said Pender County Manager Randell Woodruff.

Woodruff said county staff has "documented every expense" to ensure local taxpayers will be reimbursed by FEMA.

Pender County Schools

About $12 million in estimated damages, the majority caused by mold and mildew.

Reporter Cammie Bellamy contributed to this report.

Reporter Tim Buckland can be reached at [email protected].

___

(c)2018 the Star-News (Wilmington, N.C.)

Visit the Star-News (Wilmington, N.C.) at www.starnewsonline.com

Distributed by Tribune Content Agency, LLC.

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