As Los Angeles works to recover from the devastating January wildfires, the Los Angeles City Council wants to keep a closer eye on the financial toll.
On Wednesday, Feb. 26, the City Council voted to require city staff to provide quarterly updates on the city’s fiscal recovery, tracking everything from damage estimates, the status of special funds loans, to FEMA reimbursement.
Councilmember Traci Park, who represents the hard-hit Pacific Palisades, said she introduced a motion this month calling for these reports from the Emergency Management Department (EMD), which prepares for and responds to disasters and emergencies.
“I’ve introduced a motion this month asking for quarterly reports from the EMD, in addition to asking them to present the contract to City Council so that we can understand the scope of work, and ensure that we have an operational plan, aside from what we’ve already done and what we’re working on,” Park said.
Councilmember Monica Rodriguez stressed the need for careful oversight of recovery spending to ensure taxpayer dollars are used efficiently.
She pointed out that some departments are contracting with the same outside entities, warning that this could lead to financial inefficiencies since taxpayers ultimately bear the cost.
“I don’t want to see other entities, any other proprietaries going and embarking upon their own efforts separately, because I feel like it’s the same taxpayers that are being affected by these financial costs,” Rodriguez said.
The latest update from Los Angeles City Administrative Officer Matt Szabo’s office about the city’s wildfire costs, presented on Feb. 6, differ slightly from the initial estimate in January.
The Jan. 21 estimate put city personnel costs for field and Emergency Operations Center response at $24 million, while infrastructure and structural damage was estimated at $350 million. But the February report revised those figures, increasing personnel costs to $41 million while lowering the estimated structural damage to $220 million.
The updated report also adjusted the breakdown of structural damage to city assets.
While the January estimate placed damage to city recreation centers and parks at $155.7 million, the February update lowered that figure to $56 million. Similarly, the estimated costs to replace stormwater structures and pumping plants were scaled down from nearly $48 million to $10 million.
The city is currently covering all wildfire recovery costs by using its general fund while awaiting final approval for reimbursements from FEMA and the state.
The final impact on the general fund will depend on how much is ultimately approved through FEMA and the California Disaster Assistance Act funds, city staff said.
The wildfire costs come as the city faces existing financial challenges. In December, the City Council approved its second financial status report, which projected nearly $250 million in overspending and showed the city’s reserve fund sitting at just 4%.