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Commissioners say agreement on sewer stinks
 

By NICOLE CARTRETTE
Staff Writer

It’s a five-party agreement commissioners signed off on more than two years ago.

But terms of that agreement are looking as though it may cost county taxpayers and commissioners seem hesitant to agree to a 40-year lease to own agreement that is related to the project.

The multi-million-dollar system, paid for entirely with grants, will pump sewer from three Columbus County municipalities, to a treatment plant in Fairmont.

Columbus County will own, maintain and operate certain parts of the system and under the proposed lease rent land from Boardman where certain components of the towns’ sewer systems will be located.

Tabor City Town Manager Al Leonard has been working as a consultant for the towns of Cerro Gordo, Fair Bluff and Boardman in the matter and told commissioners based on his figures the county would break-even.

“Taxpayers of Water District II will never see those rates go up,” Leonard said of the board’s concern that the agreement would result in additional tax. Leonard pointed out voters in the water districts didn’t vote for a sewer system and that the project was one the towns intended to make self-supporting.

County officials tell a different story.

According to cost estimates presented by Public Utilities Director Leroy Sellers, the projected revenue the county will earn on the system is $9,600 compared to the $28,316 it expects to spend operating it.

“It’s about as clear as mud,” Commissioner James Prevatte declared of the two documents.

“If we own them, why do we need to lease it?” Prevatte asked. “$4,800 a year for 40 years –that don’t make sense to me.

“There is no way you can get $9,600 in revenue and pay $28,000 a year.

“Where are you going to get the additional money?” he insisted.

Leonard pointed out rates could be raised.

“The contract says you have to wait 12 months to do it,” Prevatte declared. “That don’t seem exactly right.”

Prevatte said he feared the burden would fall on taxpayers in Water District II who are already paying special taxes on a water system that is not self-supporting.

“The people in those municipalities do not pay water taxes,” he said.

“I guess I’m a little surprised that anyone is surprised,” Leonard said of commissioners’ complaints about the five-party agreement.

Commissioner Bill Memory said the general public and taxpayers shouldn’t have to pay any part of the system they will have no access to.

People in Prosper or Western Prong shouldn’t have to pay for sewer service in Boardman, he said.

“Is there any money in the budget to take care of this?” Commissioner Ricky Bullard asked.

“At budget time I was not aware of it,” Interim Finance Director Leo Hunt said.

“Who is going to be responsible?” Commissioner Amon McKenzie asked.

Commissioner Ronald Gore pointed out that it was the previous board’s understanding it would cost the county nothing.

“I’m not sure it’s a binding contract,” he said.

“Boardman and Cerro Gordo are not trying to get out of the sewer business –they have never been in it,” Leonard pointed out.

“It was portrayed to us that it would not cost Columbus County anything and revenues would offset maintenance,” Memory added.

“I am in District II –I cannot support more taxes especially (a project) that’s going to create taxes,” Bullard said. ‘There are things in my own business I need to improve but I have to wait until I can afford it.”

“I can’t help but feel I am caught in the crossfire here,” Leonard said. He pointed out that the main agreement is already signed and he was there to discuss the $4,800 a year.

He said the county had agreed to the lease years ago as well but it was never signed.

“Your lease agreement doesn’t jive with your five party agreement,” Prevatte said before asking the issue be tabled and details worked out “to where it will be profitable to operate.”

“I love the people in Boardman,” Bullard said. “It’s not that we are being hard on those people.”

“Evidently you’ve got numbers that none of us have ever seen,” Leonard said of the county cost figures.

“Where there is a problem there is always a solution,” Chairman Sammie Jacobs said.

The multimillion-dollar sewer system project involving the towns of Boardman, Fair Bluff and Cerro Gordo will pump sewage from the three towns to Fairmont’s treatment plant in Robeson County.

The construction is 100 percent financed by grants –one worth more than $3 million.

Columbus County will operate the system and pay sewage treatment fees ($2.29 per 1,000 gallon) to Fairmont. The towns in turn will pay their respective portions of the sewer treatment bill ($2.29 per 1,000 gallon) to Columbus County.

Boardman and Cerro Gordo will pay an additional $2.50 per 1,000 gallon for operational and maintenance expenses to Columbus County.

Fair Bluff will operate the aspects of the system within their town. The new sewer replaces an older system that has been in place there for decades and a public works department is in place.

Certain upkeep expenses and parts of the system (force mains and pump stations) will be the county’s sole responsibility under the agreement dating back to 2004.

Leonard, has said revenues from the project and sewer fees will likely cover the county expense.

The separate lease agreement still in negotiation may be a key factor in clearing up — at least on the county’s part — if one water district will pay for overages, if any.

County Water District II is named the responsible authority for paying $4,800 a year for 40 years to lease property from Boardman for two of the pump stations. The county is given the option to buy the location and pump station from Boardman for the sum of all payments made at the end of the 40 years.

For property owners in Water District II, that may not sound like such a great deal, especially if they may not be able to hook on to the service.

Water District II is one of two county water districts where special water taxes are levied at a rate of 9 cents per $100 value to pay debt service and operational expenses. More than 40 percent of the district’s budget comes from the tax.