New Option Is CALABASH SANITARY DISTRICT PROPOSFD Offered For Sewer Service To 'Old Calabash ' BY ERIC CARLSON Residents of Calabash were asked to consider a new method of provid ing downtown sewer service last week ? one that would avoid partici pation in a regional sewer authority without scrapping nearly two years of costly engineering work A crowd of about 120 people, nearly all from the Carolina Shores area of District II. attended a public forum Nov. 10 to discuss three pro posals for collecting and treating sewage from District I. The group heard a presentation from Billy Burnett, owner of the Carolina Blythe utility company, which currently provides water and sewer service to Carolina Shores. He wants the town to purchase the sys tem for $4.5 million and expand it to serve the downtown area. Also discussed was the town's on going plan to join Sunset Beach in building a regional sewerage system to serve both towns. As currently crafted, the proposal calls for the towns to fund the project with about $10 million in state and federal grants and loans through a joint South Brunswick Water and Sewer Authority. Many residents of Carolina Shores have voiced opposition to the idea of an authority, fearing that it could grow beyond the control of the people it is intended to serve. Which is why a third proposal has surfaced calling for the creation of a Calabash Sanitary District. Under the new plan outlined by Commissioner Jon Sanborn Wednesday night, the sanitary dis trict would leave the Town of " ...If (Burnett) has a business that's generating that much money, why would he want to sell it?" ? Accountant Johnny Britt Calabash out of the sewer business and financially obligate only those who receive its services. It would al so allow the joint sewer system to go forward as planned without com mitting the town's tax base to any loan agreements signed by the re gional authority. "It (the sewer district) would be eligible for the same grant and loan funding. It would not slow down or require us to re-do any of the exist ing engineering documents. And it can be done quickly," Sanborn told the group. Under state law, a sewer district can be formed by gathering petitions from 51 percent of the residents or landowners in a designated area, such as downtown Calabash. If ap proved by the Brunswick County Commissioners, they would set a public hearing on the proposal. The county board also would choose three to five people to sit on an initial sanitary district board with staggered terms of office. Elections would be held to select new mem bers of the district board, which would oversee the construction and operation of the sewer system and set rates for its customers. In response to a question from the audience, Sanborn said that if a sani tary district were formed, "there would be no reason for the (own of Calabash to be a member of the au thority. The authority could go for ward with its plans and work with the sanitary district." Sanborn said that the new plan al so would allow the downtown area to get sewer service more quickly than with the purchase of Carolina Blythe. During the discussion of that op tion. Engineer Joseph Hill told the gathering that he had inspected the Carolina Blythe system and found the water system, the sewage treat ment plant and the sewage collec tion lines to be "in good shape." Accountant Johnny Britt said he had reviewed data provided by Bu rnett which show that the town could purchase his utility company for $4.5 million, spend another $1.2 million to extend sewer service to the downtown area, pay back a 30 year loan at 5.25 percent and make a profit while charging lower rates. "The figures show cash flows in excess of debt service, but we have no way of verifying his estimate of expenses," Britt said. "There don't seem to be any additional operating or maintenance expenses with the $1.2 million expansion and we have some questions about that. "We also wonder, if he has a busi ness that's generating that much money, why would he want to sell it?" said Britt. Burnett said Carolina Blythe has "outgrown being a private system" and could be run more efficiently as a public utility. He said the town could charge lower rates and still make a profit because it would not be subject to the same taxes and reg ulations as a private company. "If we don't sell the utility, we're going to go up with the rates," Burnett said. "If you don't buy it, it's going to be for sale to someone else. It might not be in your best in terest who buys it." Jim Billups of Powell Associates, engineers for the proposed joint sewer project, said the towns' finan cial feasibility study for the project has been reviewed and approved by the state, paving the way for ap proval of the grant and loan pack age. Asked why Calabash should em bark on such a large-scale system, Billups said that "because of the economy of scale," a bigger cus tomer base will allow a regional sewer system to charge lower rates than a small one. He also cautioned that if the town withdraws its current funding appli cations, it would take "at least a year and perhaps longer" to re-qualify for grants and loans to expand the Carolina Blythe system. Sanborn asked the audience to consider the comments made at the meeting, to read the informational handouts provided and to make their opinions known to members of the town board. STAFF PHOTO BY ERIC CARLSON BILLY BURNETT, owner of Carolina Blythe, tells a group of about 120 Calabash residents last week that the $4. 5 million pur chase of his company would be the best of three options being con sidered as a means of sewering the town 's restaurant district. Career changes. Medical costs. Accidents. Build a nest egg for life's emergencies with insurance protec tion. 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