The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Thursday, January 4, 1996              TAG: 9601040302
SECTION: LOCAL                    PAGE: B7   EDITION: FINAL 
SOURCE: BY ANNE SAITA, STAFF WRITER 
DATELINE: KNOTTS ISLAND                      LENGTH: Medium:   52 lines

ALL-VOLUNTEER FIRE DEPARTMENT NEEDS COUNTY FUNDS, SOON

Fire and rescue services on Knotts Island may come to a halt - perhaps as soon as the middle of the month - if a contract dispute is not resolved.

The Knotts Island Volunteer Fire Department, Inc., may shut down if it does not receive county funds that were cut off last summer after contract negotiations broke down between Currituck County and fire station officials, a fire department spokesman said Wednesday.

The station, which has operated for 35 years, serves about 2,000 residents on this community, separated by water from the rest of North Carolina. Last year the station responded to more than 200 calls for emergency services and fires.

Currituck County officials have withheld funding for fiscal year 1995-96 because they claim the all-volunteer unit has not fully cooperated with an independent audit begun 2-1/2 years ago.

County officials said they do not plan to release public funds until they know exactly how the station has spent its money since 1993.

The Board of Commissioners, after meeting in a 30-minute closed session on Tuesday night, formally asked for a signed contract that is identical to those agreed upon by the county's other volunteer fire departments.

Commissioners also asked the Knotts Island department to turn over all necessary materials needed for an independent audit of the 1993-94 ng minutes, volunteer hours, bank account transfers and sources of deposits.

``I didn't request any information from Knotts Island that I didn't request from the others,'' Romm said.

Knotts Island Fire Chief Terry King said Wednesday that his department does not oppose an audit. However, the fire department believes Romm's requests go beyond the scope of their contracts.

``If you want those things, put them in the contract. If you don't put them in the contract, you can't ask for them,'' said King, a paramedic.

Flora said the Knotts Island station, which is an independent organization, initially rejected this year's contract because of a new provision requiring purchases above $5,000 be approved by county commissioners.

The original contract was reluctantly signed about a month ago, Flora said. The attorney said he did not know until after Tuesday's meeting that the county had not accepted that contract.

Flora said in a Dec. 21 letter to County Manager Bill Richardson that the county breached its contract by withholding local funds, which amount to $39,568 through December. Another $6,594.67 is due this month.

Both Flora and King said the station, which has about 34 volunteer workers, cannot survive much longer without the county money. by CNB