Hampstead has secured major federal funding to replace raw water mains and build four new water treatment plants, Town Administrator Jim told the Hampstead Planning Commission on Nov. 19.
"We have basically available to us $18,900,000 in a grant, that we do not have to pay back," Jim said, adding the town also has access to a $5,000,000 loan that "technically, it's a grant" if conditions are met. He said the two awards should cover construction costs, excluding some early engineering paid from town funds.
The project has completed Tasks 1 and 2 and Mineral Lake Utilities has begun Task 3, which includes Dakota Road, Panther Drive and Shiloh Road. The Shiloh Road alignment will pass Hampstead Elementary toward the site of a new treatment plant.
Jim said earlier engineering cost estimates were as high as $33 million but current costs are "right around $20,500,000," and that the town paid early engineering fees out of pocket to move the project ahead of other applicants.
Work will be phased: the town will bring the new plants online one at a time because only one shutdown is possible during start‑up. Jim estimated the overall project would conclude in January 2028, with roughly six months needed to commission each plant once a unit is constructed and started.
The funds originate from an EPA emerging contaminants program that the state allocated to municipalities. Jim said MDE awarded Hampstead the $18.9 million after reviewing applications and that Hampstead's advanced readiness helped secure the allocation.
A resident asked whether other Carroll County towns are part of the same award; Jim said municipalities applied separately and that Hampstead was far enough along in design and documentation to receive priority funding. He added MDE remains engaged and has continued oversight as the town begins spending funds.
Next steps include submitting the water treatment plant construction bid package to MDE for review and approval; barring issues, Jim said he expects MDE approval by the end of the year and to begin earthwork in February or March of the following year.