The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, April 7, 1995                  TAG: 9504070515
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY PAUL SOUTH, STAFF WRITER 
DATELINE: MANTEO                             LENGTH: Medium:   64 lines

MANTEO ALTERS PLAN TO EXTEND SERVICES

In a 4-2 vote, the Manteo Board of Commissioners has approved a change in the Land Use Plan that would allow the town to provide water and sewer service to outside residents.

Commissioners Edward Etheridge and Edward Greene voted against the change, approved shortly before midnight Wednesday.

The amendment goes to the Coastal Resources Commission for final approval.

Supporters urged the commission to take a broad view of the matter, and said selling the service to customers outside the town limits would not threaten the plant's capacity, and would lead to lower water rates.

Opponents said the town's Board of Commissioners adopted the change illegally at a Jan. 4 meeting. The amendment, they said, would create an overcapacity demand on the system, and force the town to build a new plant. Critics said that would lead to higher water rates.

Former Manteo Mayor John Wilson IV called the amendment short-sighted.

``With land values so high, millions of dollars stand to be made by individuals outside the town securing our wastewater capacity,'' Wilson said. ``The demand is so great, the town's capacity will be sold out in a very few years, and long-term tax-paying residents are the ones that will come up short in the years ahead.''

Others pointed to the long-term debt already faced by the town for the construction of now-obsolete plants, as well as expansion of the system.

A Manteo resident, Terry McDowell, said the town owes $2.65 million on the current facility, and has a total debt of $3.4 million.

McDowell said water and sewer rates have climbed from $9 per month in 1970 to $33 per month currently.

Another resident, Gina Owens, expressed fear that a change in the Land Use Plan would lead to higher bills in the future. ``I struggle to pay my water and sewer bill now,'' she said. ``Please don't change this.''

Developer Ray Hollowell said that modifications in the current plant could give the town the needed capacity. He pointed to figures he claimed showed that neighboring municipalities, such as Elizabeth City, Greenville and Edenton pay significantly lower water and sewer rates than Manteo does.

Hollowell also argued that allowing outside customers to get service from Manteo would reduce bills.

Another supporter, Glenn Futrell, praised the commission's action.

``What you're doing is in the best interest of the town of Manteo,'' said Futrell. ``People in the town of Manteo should get priority. But it makes economic sense to get additional customers to keep rates down.''

Earlier in Wednesday's public hearing, the commission rejected - again on a 4-2 vote - a separate motion by Etheridge and Greene to rescind action taken at the January meeting. At that time, a majority of the commissioners said, they only adopted language to be considered at the public hearing.

Following the 4-2 vote against the motion Wednesday, some in the audience shouted, ``Travesty'' and, ``Wait until the next election.''

Some in the audience said the new language was the product of a ``back-room deal,'' a characterization Commissioner Lee Tugwell dismissed. ``I resent that implication,'' he said. ``This was not something that was done behind closed doors. We're not giving anything away.''

In addition to Tugwell, the supporters were Commissioners Rocky Midgette, Melvin Jackson and Bill Daniels. by CNB