Committee hears $62M city response estimate, $220M in infrastructure damage; leaders warn FEMA reimbursement is uncertain

The Committee on Budget and Finance on Feb. 18 received a preliminary briefing on recovery costs from January wind and fire events and approved instructions for the chief executive to provide monthly recovery briefings to the council. Committee members were told staff currently estimate immediate city response costs at about $62 million and infrastructure damage at roughly $220 million; those figures are preliminary and subject to ongoing refinement.

Het Huber of the city’s administrative recovery team presented the estimates and the recovery process. "Our response costs reached $62 million," Huber said, adding that staff continue to gather department-level invoices and that damage tallies remain subject to change as project development continues for FEMA review.

Why it matters: Committee members pressed staff on how the city will protect the general fund if federal or state reimbursements do not materialize, and on the mechanics of short-term financing to cover incurred costs while reimbursement requests are processed.

Key points from the briefing

- Preliminary estimates: Presenters said current, preliminary estimates show approximately $62 million in city response costs and about $220 million in infrastructure damage. Staff said those numbers could grow as debris removal, project development and field inspections continue.

- Reimbursement mechanisms: Staff described applications filed for FEMA public assistance and for state disaster assistance. The city has created a dedicated emergency account and the council previously approved a $15 million interfund loan from building-safety funds to provide liquidity for immediate recovery expenses; staff said they will prioritize costs they expect FEMA to deem reimbursable under federal rules.

- Risk and budget protection: Officials warned of a meaningful risk the federal reimbursement process could be delayed or curtailed. One presenter noted the city’s approach is to use temporary emergency funds and to restrict charging to costs the city believes meet federal reimbursement rules so the general fund is less exposed. Staff said the city has already begun project development and will submit detailed documentation to maximize reimbursement.

- Staffing and contracting: Staff acknowledged the workload is large and that the city currently relies on a small number of experts to prepare FEMA project worksheets; the administration suggested using short-term contract hires (including retired staff on limited-term contracts) to meet the documentation and project-construction window.

Committee action and direction

The committee voted 5-0 to concur with the related committee referral and to instruct the CEO to provide short monthly recovery updates on the January 2025 storm and fire recovery efforts. Members asked staff to return with more detailed breakdowns of debris-removal costs, department overtime exposure, and contracts used for emergency work.

Ending

Committee members said they expect ongoing updates and asked the administration to continue prioritizing documentation and project development to maximize federal and state reimbursements while limiting risk to the city’s general fund.