City of Freeport officials told Walton County commissioners that the McDaniels Fish Camp/331 South wastewater project — funded with $6 million in ARPA awards — was underspent and that roughly $1.5 million could be deobligated to expand sewer infrastructure into nearby neighborhoods.

Freeport’s representative explained that the $6 million had been used to connect roughly 400 septic systems and to complete the McDaniels Fish Camp tie-in; with the project under budget the city proposed amending the interlocal agreement to use excess funds to install pipe down LaGrange Road (and related alignments) to create trunk infrastructure. County and city engineers noted that the ARPA/SLFRF rules require careful de‑obligation and reallocation steps and that if the county chooses to deobligate funds they must treat them according to Treasury guidance and local procurement rules.

Commissioners asked whether the deobligated funds would pay for septic-to-sewer hookups (staff explained the funds would primarily pay for pipe and infrastructure; actual homeowner taps would require separate septic-to-sewer connection grants or funding), whether the work could be completed within federal deadlines, and whether the city would pursue follow-on grants to cover tap costs. Staff said the scope could be completed by expected reimbursement/closeout dates if the engineering schedule holds.

The commission voted to amend and expand the interlocal agreement to include the LaGrange Road project; motion passed unanimously (recorded as 5-0).