THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, March 20, 1996 TAG: 9603200518
SECTION: LOCAL PAGE: B3 EDITION: NORTH CAROLINA
SOURCE: BY CATHERINE KOZAK, STAFF WRITER
DATELINE: MANTEO LENGTH: Short : 50 lines
Dare County did better than it anticipated on the 1994 water revenue bond project, with more than half a million dollars left over for new construction.
The county had issued a $9,690,000 bond for two new wells at the Kill Devil Hills water plant, acquisition of the Colington water system and construction of the Rodanthe reverse osmosis plant .
County Finance Director J. David Clawson said a combination of unanticipated interest income, liquidated assets from a reserve fund and less-than-budgeted construction costs resulted in a surplus of $558,903 after completion of the projects.
In his report to the county Board of Commissioners Monday, Clawson updated officials about the reasons behind the savings and made suggested uses of the excess funds.
Of the savings, $293,887 was gained from the reserve fund, $157,683 from interest, and $319,638 in construction savings.
The board approved the finance department recommendation to put the dividend into construction of the 12-inch water main in Duck, water line extensions in Southern Shores and Kitty Hawk, and capital outlays from the Rodanthe-Waves-Salvo plant fund.
In addition, the board agreed to put the remaining funds toward 1996 water system improvements, which include $50,000 for membranes at a reverse osmosis plant, $680,055 for Duck line extensions and ties, $76,400 for Southern Shores line extensions, and $100,000 in contingency for the Duck, Kitty Hawk and Southern Shores water line work.
Clawson also recommended that the board remain with its current auditor Johnson, Burgess & Company of Kill Devil Hills, but suggested a four-year contract rather than the previous one-year arrangement. The contract calls for an annual fee of $34,000, a 9.52 percent increase over last year, but Clawson said the advantage is that the price is fixed for each year.
``We're likely better off with this proposal,'' Clawson said. ``People will often low-ball you just to get the job. Then the second year, they often ask for an increase.''
The board unanimously approved the contract for four years.
The audit will be conducted on county legal statements and disclosure of funds from July 1 1995 through June 30, 1996. The report is scheduled be submitted by Oct. 31, 1996. by CNB