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Kinston moves forward with $2.8M Grove Park waterline project application to state funding
Summary
Council revised the water capital improvement plan and adopted a resolution to apply to the North Carolina Department of Environmental Quality for a $2.8 million Grove Park waterline replacement project, noting a 2% closing fee (~$55,000) and roughly $143,000 annual payments if financed over 20 years; up to $500,000 principal forgiveness may be available.
Assistant Public Services Director Henry McLean and Sharmane Powell presented a revision to Kinston's water capital improvement plan required to apply to state funding managed by the North Carolina Department of Environmental Quality. The city is applying for the Grove Park Waterline Replacement Project, estimated at $2.8 million, to address 60–80-year-old lines in the MLK area between East Washington and King Street that have experienced repeated failures.
McLean said the funding cycle has approximately $50 million in loan funding and $18 million in principal forgiveness available; if the city secures the loan, closing fees would be about 2% (approximately $55,000) and repayment spread over 20 years would equate to roughly $143,000 annually. He noted projects already completed were removed from the updated capital improvement plan to highlight priorities; Grove Park is listed as the top priority.
Council approved the capital improvement plan revision to support the application and adopted a resolution authorizing staff to submit the drinking-water funding application before the April 30 deadline. Councilmember Lipford asked to confirm that the request was solely for application purposes; McLean confirmed the application seeks low-interest loan funding with up to $500,000 of forgiveness available.
If awarded, the city will return to the council for final acceptance of loan terms and any required local matching obligations. Staff said the application does not commit Kinston to borrow until the council approves loan acceptance and associated budget adjustments.
