Havelock commissioners show support for sewer deal

The Havelock Board of Commissioners expressed support for a proposed agreement between the city and New Bern to connect sewer lines at a Wednesday night meeting.

"I think the board is impressed with where we are. Somebody did a lot of work," Mayor Jimmy Sanders said. "I believe it is a good deal for Havelock and a good deal for New Bern."

City Manager Jim Freeman outlined the proposal to commissioners Wednesday night.

The deal would also establish Catfish Lake Road as the dividing line between the two cities across which neither could annex.

"We need to thank the city of New Bern," Sanders said. "I'm certain that if the elected body (in New Bern) was not behind this, then it wouldn't have happened."

The proposal also has an out clause for Havelock. If development is slower than anticipated west of Havelock, the city could opt out within the first five years.

"There is a very important escape hatch for the city of Havelock," said attorney Frank Sheffield, of the firm of Ward and Smith, which drafted the document.

Two residential subdivisions have been proposed for areas across U.S. 70 from near Carolina Pines and Stately Pines. About 500 homes could be located in the area, with those homes receiving sewage from Havelock.

The agreement calls for Havelock to be guaranteed 500,000 gallons per day of sewage for 40 years.

Havelock will pay a sewer capacity fee of $750,000 up front within 30 days of the acceptance date.

Havelock will also pay $2.25 million for construction, but the city will not have to make its first payment toward the debt until the sixth year of the agreement.

Havelock will have to pay for a minimum of 150,000 gallons of treated waste per day at an initial price of 1.15 times New Bern's in-city sewer rate.

The agreement would not cause an increase in sewer rates for existing Havelock customers, according to Lee Tillman, finance director.

Freeman said the agreement is drafted as to not be dependent on any specific developer.

"It is economically sound the citizens of Havelock and does not hinder our long-term wastewater capacity solution," Freeman said.