Initial Aid Distribution Mitigates Houston's Need For Short-Term Borrowing

DALLAS (S&P Global Ratings) Oct. 23, 2017--The City of Houston (AA/Negative) remains in recovery and rebuilding mode following Hurricane Harvey, which hit Texas' gulf coast Aug. 25. The city has completed its first wave of storm damage removal, targeting large and heavy debris; and has plans to complete a second and third phase soon, targeting smaller items. Houston estimates that debris clean-up will roughly cost $260 million, and has already received advance payments from the Federal Emergency Management Agency (FEMA) of $105 million to help fund initial costs. The city also appropriated $20 million of its budget stabilization reserve to support ongoing costs related to the storm's impact. Officials expect FEMA reimbursements will cover 90% of clean-up related costs. Houston

...DALLAS (S&P Global Ratings) Oct. 23, 2017--The City of Houston (##/Negative) remains in recovery and rebuilding mode following Hurricane Harvey, which hit Texas' gulf coast Aug. 25. The city has completed its first wave of storm damage removal, targeting large and heavy debris; and has plans to complete a second and third phase soon, targeting smaller items. Houston estimates that debris clean-up will roughly cost $260 million, and has already received advance payments from the Federal Emergency Management Agency (FEMA) of $105 million to help fund initial costs. The city also appropriated $20 million of its budget stabilization reserve to support ongoing costs related to the storm's impact. Officials expect FEMA reimbursements will cover 90% of clean-up related costs. Houston has also received additional advance payments totaling $56.6 million from FEMA for emergency response and related overtime costs. Damage to city buildings was initially an estimated $175 million. In comparison, city...

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