A preliminary report to the Los Angeles City Council estimates that the first few days of the Palisades Fire will cost the city $374 million.
That figure includes $24 million for the emergency response and $350 million for infrastructure and buildings destroyed in just the first three days of the fire, which burned for 24 days before it was fully contained. Once all the damage is tallied, Mayor Karen Bass expects the final price tag to be in the billions.
Councilmember Monica Rodriguez told KNX News’ Craig Fiegener the total cost may not be known for years.
“We don't have a real definitive answer on what the costs are gonna be, but I think the reality is is that we recognize that it's going to be a challenge for us to have the financial means to be able to do all of the things that we need to do all at once,” she said.
FEMA is expected to cover at least 75% of the recovery costs. After federal and state reimbursements, the city of L.A. is projected to be on the hook for just 6.25% of the funds.
Rodriguez pointed out that beyond the cost of rebuilding lost infrastructure, the fire will have a “tremendous and detrimental effect to our local economy,” including revenue from property, income, and sales tax.
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