Iowa Town Out of Money After Floods
City leaders in Palo, Iowa say they have spent the city’s entire general fund budget on flood recovery.
Officials say the town, which has about 900 residents and a $300,000 budget, is out of money.
City Hall alone sustained $465,000 in damage in June, 2008, flooding. And, officials say the wastewater treatment plant suffered another $325,000 in damage.
The city is waiting to be reimbursed for some of the costs by the Federal Emergency Management Agency.
City leaders spoke with Sen. Tom Harkin, D-Iowa, on August 11.
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