The Magnolia Town Board convened for its regular meeting on Jan. 13. Mayor Dawn Ward explained that the originally scheduled 2024–25 audit presentation was postponed after auditors identified late adjustments that needed to be corrected. The auditors requested additional time to revise the audit, prompting the board to remove the item from the agenda and replace it with a time-sensitive grant matter.
The primary item of new business centered on a request for additional Community Development Block Grant (CDBG) funding for the Sun Valley Mobile Home Park sewer improvement project. Town Manager Charles Banks explained that although the town had previously been awarded grant funding for the project, recent bid openings revealed costs far exceeding expectations. According to Banks, bids came in roughly 200% higher than anticipated due to rising construction and material costs. Because the project involves a comprehensive sewer replacement, it could not be scaled back or completed in phases, making additional funding necessary to proceed.
After the town’s application for a new CDBG grant was denied, officials were informed that unused funds from a 2020 CDBG allocation could potentially be repurposed. To access those funds, the town was required to commit a modest local match of approximately $3,000 in exchange for an additional $525,000 in grant funding. Banks emphasized the value of the proposal, stating, “$3,000 for an additional $525,000 if we want this project to go through, I think is a good use of the funds.” He also noted that the matching funds would not be required immediately and could be budgeted in a future fiscal year.
Further discussion detailed the scope and importance of the Sun Valley sewer project. The existing system relies largely on outdated gravity-based lines that were installed decades ago.
“A lot of those lines were actually put in by previous owners that were not even contractors, they just owned the land years, many years ago,” Banks explained.
Poor grading, undersized pipes, and limited flow have resulted in frequent blockages and service issues for residents. The proposed project will replace all sewer lines and install a lift station capable of providing sufficient pressure to move wastewater efficiently to the town’s treatment plant. Officials said the improvements would significantly reduce backups, increase capacity, and improve reliability while also opening the southeastern portion of town to future development.
“They’re going to do all new lines through, down the right of way through Sun Valley and all of those mobile homes and then come out to the main road there,” he added. “With that pump being at the end, everything that is on those roads, East Carroll, Polk, anything on that end should have better capacity because that pressure is pushing it towards the sewage plant.”
Following questions from commissioners, the board unanimously approved the $3,000 local match required to secure the additional CDBG funding. Banks confirmed that the necessary documentation would be submitted immediately to meet the grant deadline.
During departmental updates, Chief Jerry Wood provided a report detailing recent enforcement activity, speed control initiatives, and ongoing code enforcement efforts. Wood provided updates on traffic measures, including the installation of speed bumps on selected residential streets once required signage is in place.
“One location is on Sandy, you’re looking at one on West Carroll, West Bleeker, South Peterson, and North Peterson,” said Wood. Discussions also addressed junk and debris issues on private property. Officials expressed optimism that partnerships with county agencies would help improve compliance and neighborhood conditions.
Banks provided a financial update indicating that the town remains in stable condition. Liquid cash balances were reported at just over $81,000, with additional deposits expected before the end of the cycle. The Capital Management Trust continued to show steady growth, reaching approximately $590,000, generating monthly interest revenue that Banks said could help fund future projects, including community building renovations.
Banks also acknowledged that a recent CDBG application for housing and community improvements was unsuccessful due to competitive funding priorities statewide. Despite the setback, officials reiterated their commitment to pursuing future grant opportunities and alternative funding strategies. Banks noted that only six of 38 applicants were funded in the most recent cycle, with a significant portion of funds directed toward western North Carolina communities still recovering from hurricane impacts.
Plans for a mobile banking unit remain delayed. Officials said the provider was unable to provide a definitive start date, though they remain committed to serving the town. “This is not how they typically do business … These things can happen, and everybody wants to make sure it’s secure,” Ward said, adding that she hopes to have new information in the coming months.