Rate Increase FAQ
Isn’t FEMA paying for most of the fire and storm damage? What about insurance?
Insurance for damage to infrastructure is not available (though SLVWD does have liability insurance). FEMA will pay up to 90% of the cost of repairs from the CZU Fire and up to 75% for repairs from storms. However, not all costs are covered (for example, most staff time associated with the repairs), and FEMA requires the repairs be completed before they will reimburse. Delays in receiving payments can take years, creating cash flow problems and additional financial burdens. CZU Fire recovery costs are being partially recovered by the five-year special CZU Fire Surcharge approved in 2022 that will ultimately bring in $5 million for infrastructure repair. SLVWD’s analysis of its revenue requirements takes all of these factors into account.
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