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.
Copyright 2026 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Topics Flood
Was this article valuable?
Here are more articles you may enjoy.
How One Hacker Used AI Agents, a Few Thousand Dollars to Break Into Websites
Oaktree’s Deal to Buy A-Cap Insurer Crumbles, Spawning New Talks
EU Cyber Agency Warns Websites May Go Dark as PHP Prepares Critical Fix
Alabama Pharmacy, Not Agent, at Fault for Not Reading Policy Before $5M Judgment 

