Paradise Town Council allocates $36.7M for sewer project by reconsidering funding priorities

The Town of Paradise is making significant strides towards securing funding for its critical sewer project, with a proposed reallocation plan that could inject an additional $36.7 million into the initiative. During a special town council meeting on August 14, 2025, officials discussed the urgent need to address a funding shortfall of $30 million for the Paradise Sewer Project, which is essential for the community's recovery and infrastructure improvement.

The council previously approved a rate subsidy plan aimed at keeping monthly utility costs affordable for residents, targeting an average rate of $85, which aligns with federal funding metrics. The project has already secured $84 million in funding, including $30 million for the design phase and $35 million specifically allocated for sewer improvements. However, the total project cost is estimated at $114 million, necessitating the search for additional funds.

To bridge the funding gap, the council is considering suspending the Railroad Phase 2 project, which could free up $52 million in Community Development Block Grant Disaster Recovery (CDBG-DR) funds. This controversial decision has sparked concerns among community members about the potential impacts on transportation and evacuation routes, which are critical for safety in the wake of past disasters.

The proposed reallocation would not only fully fund the sewer project but also allow for the construction of pedestrian facilities along Oliver Curve, addressing safety concerns raised by residents. However, the decision to de-obligate $33 million in Local Transportation Climate Adaptation Program funds tied to the Railroad project poses a significant risk, as it could mean losing vital resources for future transportation improvements.

As the council weighs its options, the urgency of the sewer project remains clear. With the backing of state and federal officials, the town is poised to move forward, but the path ahead will require careful consideration of community needs and funding priorities. The council's next steps will be crucial in determining the future of both the sewer project and the broader infrastructure landscape in Paradise.