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Commissioners question WAVES charter request, staff flags promissory-note requirement for county-funded assets
Summary
Board discussed a $250,000 funding request tied to a charter school project, including tap fees and joint-ownership/promissory-note legal requirements if the county funds capital assets; commissioners debated whether the request fits economic-development statute criteria.
Currituck County commissioners discussed a $250,000 funding request related to a charter school project called WAVES during the June 2 budget work session, focusing on whether the county can cover water tap fees and whether the request fits state economic-development statute criteria. Commissioners did not take final action on the request at the meeting.
Commissioners and staff identified the request as $250,000 in total, with approximately $50,000 intended to cover water tap fees. Some commissioners questioned whether the economic-development statute would allow the county to fund tap fees tied to a school project, with staff characterizing the legal fit as “tenuous” and saying the statute’s examples emphasize commercial and industrial uses.
County staff also told the board that state law requires protections if the county provides funding for capital assets to a charter school. To protect the county’s investment, the county must execute a promissory note with the charter school and take a deed of trust on county‑funded capital assets. Under that structure, the charter school retains ownership of the purchased assets; the promissory note and deed of trust secure the county’s interest. If the charter school dissolves and has not repaid the county, county‑funded assets revert to the county. Staff said the charter school is not legally required to repay the funding but that the county’s interest would be extinguished if repayment occurs.
Commissioners asked staff to confirm whether the charter school would accept those terms and whether the county legally could waive or cover the tap fee; staff said they would follow up and clarify the options and any limitations on using particular funding sources. Commissioners also discussed possible funding sources: occupancy‑tax revenues cannot be used for the tap‑fee item, staff said, and other general‑fund sources would have to be identified.
No board vote on WAVES funding occurred at the meeting; staff was asked to return with legal clarifications and options for funding if the board wishes to proceed.
