Council approves use of LOST funds for furniture, equipment lost in flood; details to be worked out

CEDAR RAPIDS - The City Council this week backed a Budget Committee recommendation that the city use some of its revenue from the local-option sales tax to reimburse flood victims for some of the cost of furniture, fixtures and equipment lost in the June 2008 flood.

The council referred the matter to the city manager's office to devise an outline of how such a program would work. As now conceived, the program will be available to owners of flood-damaged, owner-occupied homes.

Drew Westberg, special assistant to the city manager, estimates that some 1,400 households might qualify for the program. The awards would be for up to $10,000 each minus funds earlier given to owners for similar items from other programs or insurance. The total cost could be up to $10 million in revenue from the city's 1 percent local-option sales tax.

The tax is being collected for 63 months running until June 30, 2014, and it is expected to raise about $80 million for flood relief. Another 10 percent of the tax revenue goes for other city uses.