- Published on Wednesday, 17 July 2013 00:38
- Written by Super User
By WILLARD KILLOUGH III
CAROLINA BEACH - The Carolina Beach Town Council was informed at their July 16th meeting they'll have to refund the Town of Kure Beach for overpayment of sewer charges for a number of years in the amount of $276,209.40. The Towns of Carolina Beach and Kure Beach both utilize the wastewater treatment plant operated by and located in the Town of Carolina Beach off Dow Road.
They both form the Carolina Beach and Kure Beach Sewer Authority.
Each year they meet to examine the amount of Kure Beach sewer treated at the plant and bill accordingly.
Town Finance Director Dawn Johnson explained, "We did have a meeting. The sewer authority met on July 3rd and discussed the rates for Kure Beach. We did discover and had discovered that we had been overbilling Kure Beach for a loan that had been retired in 2008-2009. So it was agreed upon to refund them their overpayment for that loan in the amount of $276,209.40."
She explained, "We did agree to refund them in total one payment for that. I need Council's authorization to do that even though the board has met it requires Council's approval."
Mayor Bob Lewis said, "This has been an outstanding issue for years. Kure Beach didn't catch it on their side. Carolina Beach didn't catch it on our side. It's been going on for four or five years. It had to do with them paying for a loan against a building. That loan expired but somehow the rate kept the same. We have the money in the sewer fund to pay for it. We've been collecting more than we actually should. They are not charging us interest. They want their fair share back and it’s not a big deal."
Johnson said, "As of now the rate the board approved was $7,322.57 per month for fixed operation cost. $3,746.25 for capital recovery cost and .6838 per thousand gallons of sewage treated."
That's a reduction based on adjusting for the issue of overbilling.
The Council voted unanimously to approve the refund and the new rates.