Hendersonville secures $20.1m for wastewater plant resilience scheme
City of Hendersonville Water and Sewer Department, North Carolina · Meeting date: October 28, 2026 · Published: October 29, 2026
A new Economic Development Administration award takes secured funding for Hendersonville's wastewater treatment facility expansion and flood-mitigation project to more than $72 million. The city is seeking to avoid additional rate pressure as it closes the remaining funding gap.
Key points
- The US Economic Development Administration has awarded $20.1 million for the wastewater treatment facility capacity expansion.
- The combined expansion and flood-mitigation project is at 90% design and carries an estimated cost of about $126 million.
- Hendersonville has secured more than $72.8 million, including nearly $34 million in grants or cash and about $39 million in low-interest loans.
- The plant's treatment capacity is planned to increase from 4.8mgd to 6mgd, while critical infrastructure will be moved or protected against future flooding.
- The city estimates that about $53 million remains to be funded and is pursuing FEMA public-assistance and hazard-mitigation support.
Full report
Hendersonville has added $20.1 million of federal grant support to its wastewater treatment facility expansion and flood-mitigation project, taking the funding secured for the scheme to more than $72.8 million.
The Economic Development Administration award will support the capacity-expansion portion of a combined project intended both to increase treatment capability and reduce the facility's vulnerability to flooding. Utilities director Adam Steurer told city council that the project is at the 90% design stage.
The expansion is planned to raise wastewater treatment capacity from 4.8mgd to 6mgd at an estimated cost of approximately $25 million. The flood-mitigation element, estimated at more than $100 million, responds to flooding experienced during Hurricane Helene. It includes relocating existing process infrastructure to higher ground, floodproofing some assets through barriers and doors, and elevating electrical equipment.
The current financing package comprises nearly $34 million in grants or cash and about $39 million in low-interest loans. Of the loan funding, $35 million carries a 2.34% interest rate, which Steurer described as half the 10-year bond rate.
Despite the new award, the city estimates roughly $53 million remains to be secured for the approximately $126 million programme. Hendersonville is continuing to pursue FEMA public-assistance and hazard-mitigation funding.
The unresolved funding need could affect utility finances. Steurer said the current rate model had projected roughly $37 million in low-interest borrowing, close to the approximately $39 million now secured. If the remaining gap must be financed, the city may need to increase rates beyond its current projections or defer less pressing capital improvement programme projects. Staff's current direction is to retain planned rate increases where possible and examine the capital programme and operational efficiencies during the next budget process.
City manager Brian Pahle described the scheme as a critical, generational utility investment, comparing its significance to the French Broad River intake project. He said the works would move the facility's headworks outside flood exposure and include equalisation basins, helping prepare the utility for future needs.
This summary was generated by AI based on the source document and may contain errors.
Source: City Council Second Monthly Meeting, City of Hendersonville Water and Sewer Department