Hamlet city manager outlines $35 million in grants and loans, promises water and wastewater projects to break ground

The Hamlet City manager told the council on Monday that the city has secured what he described as the largest combined funding package in Hamlethistory, totaling "over $35,000,000" in grants and loans to modernize the water and wastewater systems and support downtown revitalization.

At a year-end review, the manager said engineering and design for the water treatment plant are 100% complete with state civil, mechanical and structural approvals and that an updated construction bid is expected this winter; he said he will bring the bid to the council in January and expects a February groundbreaking. The wastewater treatment modernization is roughly 80% through engineering, he said, with a $6,000,000 grant and an $11,500,000 low-interest USDA loan pledged to the project.

"We've never seen that $12,000,000," the manager said, addressing circulating claims that loan proceeds had disappeared. "We're approved for a loan, but the federal government holds that money, and it has to be spent, invoiced, and then we get reimbursed for that money. Allegations of $12,000,000 disappearing are completely fabricated and misinformation to our public." (City manager)

The manager said the city is funding two asset-inventory assessments (about $150,000 each) to develop a 10-year capital plan for buried water and sewer infrastructure. He described recent emergency repairs that totaled about $238,000 (one $162,000 and another $76,000) and said the enterprise fund still posted an increase of roughly $107,000 this fiscal year.

On financing and repayment, the manager said the USDA loan is a low-interest obligation amortized over 40 years and that recent water and sewer rate changes, together with forthcoming system-development fees (he cited an example figure of about $43,000 for a large development), should make repayment manageable.

The report listed multiple grant awards and local projects: a $10.3 million water treatment grant, a $6 million wastewater grant, a $4.9 million critical infrastructure grant, smaller community grants and two $10,000 awards from Amazon Web Services. The manager said the cityhas also applied for or received federal and state reimbursements tied to construction and stressed that many grants are reimbursement-based and require project documentation before funds are disbursed.

The manager closed by listing strategic priorities: raising city revenue through approved development, finishing critical infrastructure, developing a substation and adopting an updated unified development ordinance within the next six months.

Council members asked about the citycredit-like rating that underpins USDA eligibility, and the manager said staff is tracking deadlines to preserve the loan; he warned USDA could rescind approval if the city fails to meet time requirements. The council did not take a separate formal vote on the report; the manager invited follow-up questions and said staff will return with procurement documents and budget items as projects advance.