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County reports $266M in storm damage projects; reimbursement gaps and debt service remain risks
Summary
County staff reported 414 storm-damage sites across 2016–17 and 2023 events valued at about $266 million; 76% of projects are complete, but reimbursement delays and eligibility questions leave roughly $33 million in future needs and created $89 million in interim debt.
Santa Cruz County officials told the Board of Supervisors April 28 that the county has documented 414 storm-damage sites from the 2016–17 winter storms and 2023 atmospheric rivers with an estimated total damage value of about $266 million, and that roughly three-quarters of projects are now complete.
Director Matt Machado reported the county issued approximately $89 million in debt in 2024 to sustain project work while awaiting reimbursements from FEMA, the Federal Highway Administration and state disaster programs (CDAA). The department quantified outstanding gaps in reimbursements and future funding: roughly $33.3 million in future needs without an identified funding plan, and additional exposure where time extensions or eligibility have not been granted by federal agencies. Machado described common obstacles: detailed documentation requirements, evolving federal guidance, environmental and historical reviews and some denied FEMA claims tied to earlier events.
Staff said they are working with external consultants (Sikitch) to expedite reimbursement, and are prioritizing the most critical transportation and culvert replacements that reduce future failure risk. Supervisors asked for aggregate reimbursement status and requested continued federal advocacy. The board accepted the annual status report and asked staff to return with another update no later than April 2027.
The report highlighted both progress and remaining risks: for 2016–17 the county completed 160 of 192 FEMA-designated sites; for federal-highway-funded sites, 77 of 94 projects were complete. For the 2023 storms, 153 of 222 projects are complete and 44 are classified as "future" with no finance plan yet. Machado said reimbursement timing and eligibility will determine whether outstanding debt can be retired without shifting funds from other transportation priorities.
