Finance director says flood costs posted to reserve fund; federal aid could cover ~75%

Finance Director Boutet told the Finance & Administration Committee that the city has posted costs from the 2025 flood event to its reserve fund and will propose options to replenish that fund during the upcoming biennial budget process. "Currently, right now, the finance department has posted any costs incurred from that flood event to our reserve fund," Boutet said, describing the reserve as the city's mechanism to respond to emergencies without depleting operating funds.

Boutet cautioned the figures presented were estimates. "This is my best estimate of what we could potentially ask for and ideally receive from the federal government," he said, adding that about 75% of eligible costs could be recoverable through federal disaster assistance but that eligibility and amounts remain uncertain. He emphasized the estimate will be refined as bids and additional assessments arrive and noted the finance team submitted a preliminary damage assessment to the state earlier the same day.

Committee members pressed for clarity about the numbers and whether the estimate might grow. Boutet said the total is "getting closer to where we're gonna end up" but declined to guarantee a final amount, calling the situation "very fluid." The mayor reported ongoing conversations with federal staff and Representative Schreyer's office and said federal contact was monitoring the city's figures.

The committee agreed to place a "Flood financial impact" item on the upcoming council agenda (to be titled with language making clear the discussion covers funding and financial impacts, not operational or emergency-response actions). The administration committed to regular updates: Boutet said staff will return to the committee every couple of weeks with updated numbers until the assessment is closed out.

Key clarifying details from the briefing: the city posted flood costs to the reserve fund rather than the general fund, the reserve will be replenished through options to be presented during the biennial budget process, the current estimate discussed (roughly $667,000) is preliminary and may change, and federal and state assistance remain uncertain.