FEMA offers $2M to Settle Iowa Water Works Agency Flood Repair Suit

March 27, 2014

The Des Moines Waterworks board is scheduled to consider a settlement offer of more than $2 million from the federal government to resolve a lawsuit over flood repair funding approved by the Federal Emergency Management Agency and later withdrawn.

The utility filed the lawsuit in December 2012 after FEMA withdrew $7.6 million in approved disaster funding to help repair damage along the Des Moines and Raccoon rivers caused by the 2008 flood.

FEMA approved money in 2010 but rescinded it in 2011 after the waterworks agency had already spent $2 million. FEMA concluded after that improvements on natural river banks do not meet funding requirements.

Waterworks CEO Bill Stowe says he recommends approval of the $2.17 million settlement offer.

The board is to meet Tuesday afternoon to consider it.

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