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Government Watch: Town of Hope Mills' state audit shows serious concerns
- Details
- Tuesday, 12 May 2026
- Written by Jami McLaughlin
Greater Fayetteville Chamber
The Greater Fayetteville Chamber, along with the City of Fayetteville, Cumberland County, Fayetteville PWC and many other local partners, stands together in opposition to the Town of Fuquay-Varina’s request for an interbasin transfer certificate to transfer up to 6.17 million gallons per day of water from the Cape Fear River Basin to the Neuse River Basin. The transfer of moving water would reduce river flow, threaten water availability and potentially damage vital infrastructure. It would affect generations to come who depend on water from the Cape Fear River Basin and future economic development.
Recently, two bills were introduced at the House and Senate levels that would significantly help our cause and we will continue to watch these as they go through the state.
Rep. Ted Davis of New Hanover County has introduced House Bill 1136, which places a temporary moratorium on new or increased surface water transfers from areas of the Cape Fear River Basin upstream of Lock and Dam #2 in Bladen County, with exemptions for existing or emergency transfers. The moratorium lasts until June 1, 2030.
According to the bill summary, during this period, the North Carolina Collaboratory at UNC Chapel Hill is tasked with studying the water supply capacity and sustainability of in-basin water uses in the Cape Fear River Basin, cataloguing current water uses, evaluating scientific and economic impacts of interbasin transfers, and analyzing environmental and ecological consequences. The Collaboratory must consult key public and private stakeholders and report its findings and legislative recommendations by July 1, 2029. Funding of $1.5 million is allocated to support this study.
Another bill introduced to the State Senate known as the 2026 Water Safety Act (SB 1043) also imposes a moratorium, effective until June 1, 2030, on new or increased interbasin transfers of surface water from the Cape Fear River Basin upstream of Lock and Dam #2, with exceptions for existing or emergency transfers and directs the Collaboratory to study the Cape Fear River Basin's water supply yield, water uses, environmental and economic impacts of interbasin transfers and report findings and recommendations by July 1, 2029 appropriating $1.5 million for this study, available through 2028-2029.
City of Fayetteville
The Fayetteville City Council has focused on debating a moratorium for data centers and participating in statewide municipal conferences.
On Apr. 27, Fayetteville City Council board members voted 6-3 to approve a 120-day delay on considering a proposed year-long moratorium on data centers. This decision was met with protests from residents chanting "shame" and carrying signs such as "Data centers make bad neighbors.”
The decision came during a debate over a proposed $6.4 billion data center on 50 acres along Dunn Road and the current lack of specific zoning regulations for such facilities.
Also, from May 5-7, several council members attended the North Carolina League of Municipalities CityVision conference in Raleigh. They were able to connect with other municipal leaders to discuss state-level issues.
Cumberland County
The Cumberland County Board of Commissioners has looked at major infrastructure projects, including the Crown Complex renovations, and issued several public proclamations.
On May 4, during their regularly scheduled meeting, the board voted 5-1 to approve TA/Loving Metcon as the Construction Manager at Risk for the multi-million-dollar modernization of the Crown Complex Theatre and Arena. Five proposals were received in March and reviewed by representatives from Cumberland County, SFL+A Architects, Oak View Group and Turner & Townsend Heery, according to county officials.
In the same session, they voted 5-1 to issue another rebid with modified specifications for a new sound system at the Crown Coliseum. The Board rejected all bids for the Expo Center chiller replacement because they exceeded the project's budget.
The board also adopted a resolution to lease county property at 412 Russell St. to Coastal Horizons Center, Inc. The public hearing for the 2027 budget will be held on June 1.
Town of Hope Mills
An investigative report released on April 24 by the North Carolina Office of the State Auditor uncovered serious financial deficiencies in Hope Mills, most notably a $1.55 million loss in the town's fund balance for fiscal year 2025. This loss, the first in five years, occurred because the town spent $1.7 million in reserve funds—far exceeding the typical $500,000 budgeted for one-time capital costs—to cover routine operational expenses.
State Auditor Dave Boliek warned that if this trend of using emergency savings to balance the budget continues, the town could completely exhaust its cash reserves by 2028. Beyond budget concerns, the audit substantiated findings of unjustified salary increases for certain employees and weak internal controls that allowed spending to bypass established policies.
In response to the formal recommendations issued, town officials have committed to a corrective action plan, which includes adopting a new fund balance policy to limit reserve spending to no more than 3% of the total budget.
About the Greater Fayetteville Chamber
Advocacy is a cornerstone of the Greater Fayetteville Chamber. Every week, the Chamber dedicates staff to attend City of Fayetteville and Cumberland County meetings as well as monitoring updates on the state and federal levels. We monitor legislation locally, statewide and federally to protect our community’s business interests. With 91% of U.S. adults recognizing a Chamber of Commerce's impact on growth, membership ensures a strong voice shaping policies, driving economic success and building a thriving business community—together. To learn more, visit www.faybiz.com or email jmclaughlin@faybiz.com.
