Ames would pay in cases of misuse of flood relief funds
By Traci Kasperbauer — Daily Staff Writer
Published: Friday, November 14, 2008 12:24 AM CST
The 2008 Jumpstart Iowa flood relief program was recently approved by the Ames City Council, allowing state and federal funds to reach Ames citizens affected by the summer floods.
In order to attain the funds, the city of Ames had to agree to be held responsible for any problems that arise, even though the aid will be administered through an outside council of governments group.
“We don’t directly administer the program. We’re relying on another agency to do that,” said Vanessa Baker-Latimer, Ames housing coordinator. “There could be some liability on our part. If it wasn’t done in accordance to whatever guidelines are out there, we could be held liable for repayment for federal or state funds.”
The North Iowa Area Council of Governments is responsible for processing the applications of residents and businesses that may have been affected by the floods of 2008, Baker-Latimer said. Jumpstart Iowa will provide aid to those affected by the 2008 summer floods in a variety of ways: by purchasing homes that were destroyed, assisting with the cost of repairs, helping residents with mortgage payments until they get back in their homes, and helping businesses with loans if their building was flooded.
Bob Kindred, assistant city manager of Ames, said the state and federal governments are using councils of governments to coordinate distribution of the Jumpstart Flood mitigation money. However, central Iowa’s council of governments disbanded in the 1980s and was never replaced. In order for central Iowa to receive the Jumpstart Iowa aid, the North Iowa Area Council of Governments (NIACOG) needed to oversee central Iowa. NIACOG normally serves eight Iowa counties: Cerro Gordo, Floyd, Franklin, Hancock, Kossuth, Mitchell, Winnebago and Worth.
“We, Ames, are holding NIACOG harmless. These are legal terms — we’re indemnifying them and holding them harmless so that if something goes wrong, they’re protected,” Kindred said. “We didn’t really want to sign that provision, but they insisted.”
In the 1970s the federal government encouraged the creation of councils of governments across the nation. The councils, Kindred said, did planning services for small towns that could not afford their own staff and served as a local handler for federal funding. The council of governments in Iowa allowed the government to deal with 19 councils as opposed to Iowa’s 99 counties, Kindred said.
Central Iowa’s money came through its council of government, the Central Iowa Regional Association of Local Governments (CIRALG). The money that came through the association in the early 1980s was not spent according to the federal regulations, Kindred said. So the federal government ordered the cities and counties that were members the association to pay back all misappropriated funds.
“All the cities in central Iowa had to pay it back and were very unhappy with CIRALG. They all pulled out and it [CIRALG] ceased to exist,” Kindred said. “If you look at a map today, there are councils of governments like NIACOG that serve all around the state except right in the middle. There’s like a doughnut hole.”
Kindred went on to say no interest has been expressed in starting another council of governments for central Iowa because of the association scandal more than 25 years ago.