Councilmember Stone sharply criticized the Towns planned acquisition of the Village Woods community water system and urged the council to keep the item on the agenda for public discussion, saying the deal violates town water rules and shifts costs to other customers. The council instead approved a motion to amend the agenda that removed the Village Woods conveyance and several related items and added a closed session under North Carolina General Statute 143-318.11(a)(3).

Stone told the council the Village Woods system is owned and operated by Environ Links and that, as presented by the Water Advisory Committee, the systems annual operating cost is $16,100 for 18 homes. He said the town would collect $12,960 a year from Village Woods residents under the proposed arrangement and accept an annual shortfall of about $3,140 that would be borne by other water customers, specifically Honeycutt Reserves.

"In other words, the town knowingly purchases a system, knowing that theyre going to lose money and transfer the cost to other citizens in the town," Stone said.

Stone also cited a town ordinance and the Water Advisory Committees analysis that a town-owned community well system should have a minimum threshold of 30 units to avoid operating losses. He said Village Woods, at 18 units, falls short of that threshold and therefore represents an exception to the ordinance.

Stone raised conflict-of-interest concerns about the Water Advisory Committee chair, saying the chair lives in Village Woods and lobbied council members for a rate reduction. He said the chair should have recused himself and that "3 town council members are choosing to ignore the town's ordinance and water rules for this 1 deal."

Councilmember Schneider responded that the prior special-called meeting that approved the conveyance was properly noticed and that council members had the opportunity to make their case. "There were no shenanigans," Schneider said, adding that updates from the Water Advisory Committee were intended to address questions raised over the last 14 months.

No formal vote on acceptance of Village Woods occurred at this meeting; the agenda amendment to remove the item and add a closed session passed, and Stone's remarks were recorded during the agenda discussion and public-comment portion.

Why it matters: Stones comments raise fiscal and governance questions that residents asked be explained publicly: the cost impact on other ratepayers, the towns adherence to its water rules, and whether advisory-board members with personal ties to a proposed transaction should recuse themselves. Town staff and the Water Advisory Committee are continuing outreach and said more information will be available as water projects and bids proceed.

Background and next steps: Council members and water committee members said the town is preparing larger water-main bids and a water-tower project, and that additional data from those efforts could change system-wide forecasts. The council removed the Village Woods item from tonights agenda; if members or residents want further public discussion, the council must re-add the item in a future meeting packet.

Details and clarifications: Stone cited figures presented to the Water Advisory Committee: $16,100 annual operating cost; 18 homes in Village Woods; town collections of $12,960 from Village Woods residents under the proposed rate; and an expected annual subsidy of about $3,140. Stone said the town ordinance and water rules set a 30-unit minimum for town-owned community wells; that threshold was referenced in the Water Advisory Committees calculations. The transcript shows these figures were presented as committee data.

No council motion tonight changed the previously adopted special-called meeting action accepting Village Woods; the transcript shows debate and public comment but no new formal conveyance vote at this session.