Ever since the city and PG&E to support the city’s recovery efforts following the tragic 2010 pipeline explosion, many have wondered how the money will be spent.
The City Council agreed in March that a nonprofit agency will be set up to manage the funds, and that process is expected to take nine months to a year to set up.
So is the money just sitting dormant somewhere? Not quite.
Here's an update on the settlement funds by the numbers:
Of the $70 million, the city has decided to use $1.25 million to purchase five vacant lots in the Crestmoor neighborhood. The homes on those lots were destroyed in the fire and the homeowners decided not to return to the neighborhood, so the city is taking over the properties as it works to rebuild the infrastructure of the area. It is not yet clear what the city plans to do with those five vacant lots.
The other $68.75 million has been put in a Wells Fargo account and invested in three-month and six-month Treasury bills. According to City Treasurer John Marty, the latest purchases, which will mature in September and December, will yield 0.096 percent and 0.152 percent respectively.
City Manager Connie Jackson said the funds were invested very conservatively because the city didn't want to take any risk with the money.
"Our purpose and intent is to assure the safety of the funds so that we still have the full amount once the funds are turned over to the nonprofit," Jackson recently said.