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County attorney outlines options for refunding decades‑old tap fees; board leans toward opt‑in approach and outreach
Summary
County attorney Barbara Jones advised the board on legal options for refunds of long‑held advance payments (tap fees), saying contracts differ and the county is not automatically in breach; she estimated up to 1,552 people may be affected and recommended an opt‑in refund policy with a look‑back period and public notice.
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County Attorney Barbara Jones presented a legal framework for how Pender County might handle customers who paid advanced tap or connection fees but have not received water service.
Jones told commissioners that the county holds a mix of contractual documents: some were advance payments of tap fees, others conveyed easements in exchange for future discounted taps, and many agreements did not include a timeline guaranteeing service. She said reversing some agreements could require buying back easements and that the county is not automatically in breach because many contracts only become effective when infrastructure reaches a property. "Right now, this will potentially affect up to 1,552 people in the county who have paid these fees and have not received water service to their properties," Jones said. She recommended the board consider adopting a policy that allows property owners to opt in for refunds, coupled with an education campaign and a look‑back period for interest (for example, up to 10–15 years), while noting that a mass automatic refund would have complex legal and fiscal consequences.
Commissioners debated whether refunds should be opt‑in or automatic and discussed whether to pursue bonding or loans to accelerate water extensions. Several commissioners said they support quick action to help residents; one commissioner called the ongoing situation "stealing" when individuals are charged availability fees for service they do not receive and urged stopping those monthly charges if the meter is not connected. The board gave direction to prepare a formal policy and outreach materials and to include discussion of bonding and loan options at the next utilities planning meeting.

