ESCONDIDO - Last month's wildfires cost the city nearly $1.2 million for employee overtime, debris removal and related expenses, but city officials said they expect reimbursements from the federal government and insurance companies to cover all but $210,000 of the money.

The money includes $824,000 for employee overtime and supplies during the fires, and $310,000 to cover the demolition and clearing of 27 homes destroyed by the fire. The city expects to be reimbursed for 75 percent of the overtime and supply costs, and for nearly 100 percent of the demolition costs.

The city spent an estimated $555,000 on overtime during the fires and another $287,000 on supplies and equipment to repair local recreation areas and a canal that brings water to the city from Lake Henshaw, according to a summary provided by finance director Gilbert Rojas.

The Federal Emergency Management Agency (FEMA) reimburses cities a maximum of 75 percent for such expenses, and Rojas said there is no reason to expect Escondido will receive less than $631,500, or 75 percent of $842,000. City officials are slated to meet with FEMA representatives Dec. 10, said Rojas.

Another $310,000 in city money is being spent demolishing and removing 27 homes that were destroyed by the Witch Creek fire. A city-hired contractor began that work Nov. 14 and is slated to continue removing homes and fire debris through the end of the year, according to assistant city attorney Steve Nelson.

Nelson said the city expects to be reimbursed for 100 percent of those expenses by the insurance companies representing the individual homeowners, or FEMA if the homeowner had inadequate insurance. Nelson said the city will cover any shortfalls for individual homeowners who do not receive enough insurance or FEMA money to cover the demolition costs.

More than $200,000 in unforeseen wildfire-related expenses will make it harder for the city to balance its $84.3 million operating budget for 2007-08, which was already predicted to run a $1 million deficit, said Rojas. The extra money will come out of the city's $14 million reserve fund, unless sagging sales tax revenue suddenly reverses direction or other city revenue streams sharply increase, he said.

The state's financial troubles, which have been blamed primarily on the real estate slump, make it unlikely the city will receive any help in covering the costs that FEMA does not reimburse, said Rojas.

The bulk of the city overtime expense was logged by fire and police personnel, with firefighters generating $240,000 and police officers $150,000.

Rojas said he is confident things will go smoothly with FEMA because he learned some valuable lessons about dealing with the agency during the 2003 wildfires. To receive full overtime reimbursement for employees working extra hours, it is crucial for cities and counties not to replace them during the emergency with employees who have not worked enough hours to qualify for overtime, he said.

Rojas said early meetings with FEMA have gone well so far, but that some disputes are inevitable.

"We gave them some estimates because they wanted to know if they were looking at $500,000 or $2 million for Escondido," said Rojas. "Sometimes they warn us that we shouldn't get our hopes up on some submissions, and we know there will be some disputes."

Of the 36 Escondido homes destroyed by last month's fires, 27 homeowners have agreed to allow a city-hired contractor to demolish their homes and safely clear the debris, said Nelson. The other homeowners have been reluctant to participate until the city can provide a good estimate of when their homes will be demolished, he said.

The process began in southern Escondido with six homes in the Allegro area, which includes Fino Glen. The contractor, Clauss Construction of Lakeside, has since moved on to Concerto Glen. Nelson said these areas went first because they have homeowners associations, which made it easier for the city to quickly make demolition agreements with multiple owners.

- Contact staff writer David Garrick at (760) 740-5468 or dgarrick@nctimes.com.