Chair asks council to rescind 2023 forgiveness of BCWA promissory note while partner town still owes debt

Sparta’s chair urged the town council to undo a 2023 vote that had removed a $76,434.61 promissory note from the Burke County Water Authority’s books, saying the town’s partner, Independence, has not forgiven its parallel liability of $159,277.28.

“...there was a vote made by the council at that point in time to remove a promissory note that the BCWA still had on file... The promissory note was for the remaining balance of $76,434.61,” the chair said, arguing that unless Independence forgives its debt the BCWA will still carry liabilities that affect upcoming budgets.

The chair told council finance planners that the note’s removal had been intended to treat the amount as invested capital, which could be repaid by a future third-party buyer if the water authority were sold. He said North Carolina Rural Water advisers told the BCWA that the towns must agree to forgive such debt for it to be removed from the books.

Councilmember (Speaker 5) asked what action was needed. The chair replied the council should “make a motion to rescind that vote to forgive that promissory note.” Committee member (Speaker 4) said, “I’ll make that motion,” and the motion received a second; the transcript records the motion and a second but does not include a roll-call tally or a formal recorded outcome.

The chair emphasized the practical budget impact: if Independence does not forgive its share, the BCWA budget will continue to show the liabilities and the towns will need to repay amounts for labor and other costs. He said staff and the BCWA will revisit the line item next Thursday as budget preparation proceeds.

Next steps: the chair said the matter will be discussed at the BCWA’s Thursday budget meeting and that council action to rescind would be followed by a subsequent rescission or forgiveness motion if Independence later agrees to forgive its debt.