Rutherford County still waiting on millions in Helene reimbursements

County has recovered most storm-related costs, but officials say delays tied up tens of millions and cost about $1.6 million in lost interest

Nearly two years after Hurricane Helene, Rutherford County has recovered much of the money it spent on disaster cleanup, but millions remain tied up in the FEMA reimbursement process.

At the Sept. 8 Board of Commissioners meeting, Deputy County Manager and Finance Director Paula Roach said the county at one point had about $35 million tied up in Helene-related expenses.

A major $17 million reimbursement arrived in February, and Roach said fewer than $6 million remained pending.

That represents significant progress. But Roach also said the long reimbursement timeline came with a cost. She estimated Rutherford County lost about $1.6 million in interest income while local funds were being used to carry disaster expenses.

The issue dates back to decisions made shortly after Helene struck western North Carolina on Sept. 27, 2024.

On Oct. 7, 2024, commissioners unanimously authorized then-County Manager Steve Garrison and the county attorney to negotiate contracts with Southern Disaster Recovery and Debris Tech.

That placed Rutherford County largely in a contractor-and-reimbursement model, meaning the county paid eligible costs and then sought reimbursement through FEMA.

That structure differed from some major recovery operations in Lake Lure and Chimney Rock, where Direct Federal Assistance allowed the federal government, including the US Army Corps of Engineers, to directly perform certain work under a mission assignment from FEMA.

To help manage that burden, the county has received $4.6 million in state cash-flow loans and has applied for another $2.7 million.

Roach said one $2.6 million debris project remains under further FEMA review. Other debris projects totaled about $10 million, with roughly 75% already reimbursed.

The Sept. 8 meeting also marked a leadership transition.

New County Manager Scott Webber was sworn in by Chief District Court Judge Robert Martelle before commissioners moved through an agenda that included transportation funding hearings, board appointments, recognition of the downtown Forest City fire response, budget amendments, and county operations.

Webber and current commissioners Hunter Haynes and Donnie Haulk were not involved in the original Helene contracting decision.

Garrison has since left county government and now works with Gov. Josh Stein’s western North Carolina recovery operation, GROW NC.

Despite the financial delays, Rutherford County has made substantial progress since the storm. Most of the money tied up in recovery has been returned, major debris operations have advanced and local governments across the Hickory Nut Gorge continue rebuilding.

Roach said a recent trip through Chimney Rock and toward Bat Cave also showed how much work remains.

“That’s the part of western North Carolina that’s going to be three to five years out and will never be the same,” she told commissioners.

As Helene’s second anniversary approaches Sept. 27, the county’s recovery story is increasingly both a success story and an accountability question.