Mayor of Port Stephens Bruce MacKenzie labelled it an “utter disgrace” that the council was still more than $6 million in the red for storm damage, despite receiving a $1.9 million payout from its private insurer.

It has put in claims worth $3.6 million with the State Government’s Public Works department and is asking for a further $2.5 million in Category D funding from the federal government, which requires a sign-off from the Prime Minister.

Councillor MacKenzie said the council had spent the funds in “good faith” they would be reimbursed and the shortfall meant available cash was “severely depleted.”

“We want the money that is rightfully owed to us,” Cr MacKenzie said. “And it doesn’t seem to be forthcoming, from a government that is purportedly in a great financial position.

“They’ve only given us scraps through [Parliamentary Secretary for the Hunter] Scot MacDonald. That’s peanuts. That’s only interest on the money owed to us. Lets have the $6 million, Mr Baird.” 

Lake Macquarie council’s claim to NSW public works - for $3.5 million - has also gone unanswered for the last eight months.

Mayor Jodie Harrison said that was a “long time to wait” and the equivalent of a 3.5 per cent rate rise for ratepayers.

“That gives people an idea of what the financial impost is on the council,” she said.

“We’ve actually used the ratepayer’s money to do the storm clean-up, that the state government should of done. 

“It is about the right level of government paying for things.

“What we would like to do is get back to the point where we had planned to be, had the storm not happened.”

The council has been paid in full for a $106,000 claim it lodged with its private insurer, Statewide Mutual, less a $20,000 excess.

But a council spokesperson said daily services for the community would go unfunded if the money owed by the state government was not reimbursed.  

Maitland Council is in the same boat, out of pocket $858,000 while it waits for its claim to be assessed by NSW Public Works.

And it is yet to settle the ledger with its private insurer.

“The total value of insurance claims from Maitland City Council for the April storm was $796,887 and the amount still in deliberation is $13,103,” Group Manager of Administration and Governance Graeme Tolhurst said.

“This includes an excess of $2000 deducted from the claim.” 

A Public Works Advisory spokesperson said the claims for all three councils were currently in the “final stages of approval.” 

“We expect to finalise them in the next month,” he said. 

“The delay is due to the Government granting councils an extension on the standard 21 day emergency clean up period, and due to the size and complexity of the claims.”

Newcastle and Cessnock councils did not put in requests for state government assistance but are both still chasing outstanding insurance claims from Statewide Mutual; for $221,000 and $18,000 respectively.

Newcastle Liberal councillor Lisa Tierney raised concerns about the debt at the most recent meeting of Newcastle Council, pointing out the claim was now spread across three financial years.

“At the end of the day, it is the ratepayer’s money,” she said. “It is an unacceptable time to wait.

“Maybe there is a dispute and we as a council need to know about it, if that’s the case.”

A Newcastle Council spokesperson would not say whether the claim had been disputed by the insurer.

“Council is still in negotiations with assessors and insurers over storm damage insurance claims,” he said.

Dungog Council was saddled with a bill “in the order of a million dollars” – according to general manager Craig Deasey – after Statewide Mutual refused to pay for repairs to the Alison Court unit complex. 

The insurer said it was not liable because floodwater, rather than storm water, swept through the complex.