Cedar Rapids faces a $50 million shortfall in expected funding after the Federal Emergency Management Agency reassessed the 2008 flood damage to the city’s wastewater treatment plant.
According to The Gazette, Mayor Ron Corbett says that the city has paid or obligated $16 million in repair work to make the first of the necessary repairs to an incinerator with the expectation that FEMA would reimburse the costs.
FEMA spokeswoman Barb Sturner says the agency notified Cedar Rapids last week that it had “de-obligated” $50 million in disaster payments at the plant because some of the funds were identified for things at are not eligible for reimbursement.
The city is also in a dispute with FEMA over payment for the removal of demolition debris at the former Sinclair meatpacking plant.
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