Helene: Cash flow in small towns is problem FEMA cannot fix

(The Center Square) – Like many towns in western North Carolina, Beech Mountain was heavily damaged by Hurricane Helene in the fall of 2024.

The town suffered about $30 million in damage, much of it to vital public facilities such as roads, water and sewer, and drainage.

Beech Mountain sought the federal government’s help for financial assistance but the Federal Emergency Management Agency process can be cumbersome, town manager Bob Pudney told The Center Square. In the meantime, local governments are having to pay for emergency repairs and then permanent fixes to storm damaged systems.

“We had an immediate cash flow problem that FEMA was unable to address,” Pudney said.

For debris removal, FEMA does offer an expedited payment for up to 50% of the cost.

- Advertisement -

“We took advantage of that,” Pudney said.

But the cost turned out to be far more expensive than the original estimate.

“When you are estimating your debris removal, believe me, you better estimate high,” the town manager said. “The cost exploded through the roof.”

There was no federal expedited funding for the many repairs the town had to make.

“Most of our critical infrastructure projects have still not been funded by FEMA,” Pudney said.

The state of North Carolina, however, has stepped in to help towns like Beech Mountain by issuing interest free loans to tide them over until federal dollars arrive.

- Advertisement -

The state has issued $150 million so far as part of its Cash Flow loan program. Beech Mountain has received $7.8 million.

Beech Mountain, with a permanent population of only 780, is a ski-resort town, with an economy that relies heavily on tourism. A busy ski weekend can attract 10,000 people.

Helene hit in September. The ski season typically starts around Thanksgiving and runs through the middle of March.

“We are going into season number two and we still haven’t recovered,” Pudney said. “We’re in better shape. But we’re still struggling with water and sewer. But it’s a double-edged sword. You don’t want to tell people not to come. That would create more problems.”

The town has managed to keep the water and sewer systems working, to serve both tourists and residents and also for fire protection.

Without the cash flow loans from the state, that may not have been possible, the town manager said.

“We had the ability with the cash from the state to make emergency repairs,” he said. “If we could not have done that, the town would not have had the financial ability to continue. If we had to rely on the federal government, we would have had to lay off employees, reduce services, in order to get the money to make repairs.”

spot_img
spot_img

Hot this week

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

IL lawmakers could address energy prices, transit, taxes during veto session

(The Center Square) – The Illinois General Assembly’s fall...

Illinois quick hits: Another quantum company announced for incentives

Another quantum company announced for incentives ...

Trump threatens tariffs on China over ‘hostile’ rare earths policy

President Donald Trump threatened a "massive increase" in tariffs...

Trump administration appeals Illinois TRO blocking National Guard deployment

(The Center Square) – The Trump administration is appealing...

2024 was deadliest year for journalists on record

Last year was the deadliest year for journalists on...

Arctic cutters pact led by Louisiana shipbuilder

(The Center Square) − Louisiana-based Bollinger Shipyards has been...

Govt shutdown raises concerns over national security

(The Center Square) - As partisan divides appear to...

More like this
Related

IL lawmakers could address energy prices, transit, taxes during veto session

(The Center Square) – The Illinois General Assembly’s fall...

Illinois quick hits: Another quantum company announced for incentives

Another quantum company announced for incentives ...

Trump threatens tariffs on China over ‘hostile’ rare earths policy

President Donald Trump threatened a "massive increase" in tariffs...

Trump administration appeals Illinois TRO blocking National Guard deployment

(The Center Square) – The Trump administration is appealing...