PONTIAC - The federal government has denied a disaster declaration that would have helped numerous Pontiac residents overcome the devastation of January's Vermilion River flood, angering numerous city officials. | Floodstock benefit set in Pontiac

"This is devastating news," Mayor Scott McCoy said in a statement. "It's hard to believe that so many people can lose so much and be impacted like this, and it's not enough for the federal government to help us in our time of need."

The declaration would have provided assistance for individuals and households by using cash grants to help with temporary housing, home repairs and replacement, medical, dental, funeral and other disaster-related costs. Businesses would have received low-interest loans by the U.S. Small Business Administration and hazard mitigation assistance could have funded future projects to prevent any similar flooding and storm damage in the future.

Gov. Rod Blagojevich received a statement from Federal Emergency Management Agency Administrator R. David Paulison on Wednesday, saying, "It has been determined that the damage was not of such severity and magnitude as to be beyond the capabilities of the State and affected local governments."

Illinois Emergency Management Agency spokeswoman Patti Thompson said the news shocked her office and the governor, because the assistance was denied to people, not to governments.

"It's interesting to note here that we did not ask for assistance to recoup losses for the governments involved," Thompson said. "We asked for grants for the people whose homes were severely damaged by the flood. We certainly thought that it was something that we could get, and if we didn't think we could get it then we wouldn't have applied."

In mid-January, IEMA and FEMA teams were in Pontiac surveying the damage and going door-to-door to hear from residents. Based on those reviews, the information prompted Blagojevich to seek a federal declaration on Jan. 18.

"In talking with the IEMA and FEMA teams, I got the sense that we were in good shape for the declaration," McCoy said. "These people spent the time to visit homes, talk with those affected and tour the city filled with piles of debris. I can only assume that there is a disconnect with those who make the ultimate decision from reading the IEMA and FEMA reports.

"I'd like for those who denied us to come here and tell (us) … that there just wasn't enough damage."

McCoy is reviewing the appeal process with ESDA, IEMA, Congressman Tim Johnson and others .

Paulison's statement said the denial can be appealed within 30 days and additional information justifying the appeal can be sent to President Bush through another FEMA regional administrator.

Thompson said the appeal needs to have new information regarding damage, because structural damage may not be found immediately.

"We don't give up," McCoy said in the release. "We have a lot of wonderful people volunteering their time and donating to help those in need. Pontiac will get through this and prove to the world that in the face of devastation, good people make all the difference."

On Jan. 9, massive amounts of melted snow and rain caused the Vermilion River to reach a record height of 19.5 feet. The water flooded numerous streets and residences, leaving several feet of water in in basements. Hundreds were evacuated from their homes.

Iroquois County was denied as well. Cities such as Watseka were also impacted by the flood.