Caswell County staff told the board they had corrected prior accounting and moved Pelham business-park expenses into the water-and-sewer enterprise account, and they said the next step is to update Pelhams tap and monthly rates to reflect true operating costs.

Accounting correction and why it matters: Renee (county staff) said the county previously charged some Pelham utility expenses to the maintenance budget, which hid the enterprise funds true costs. For FY2026 staff reallocated expenses so the Pelham system reflects the cost of operation, maintenance and capital outlay. That reallocation increased the enterprise funds expenditures and means the county must reassess the schedule of tap fees and monthly rates before adopting the FY2026 ordinance.

Board comment and next steps: Commissioners asked staff for a rate and fee schedule and for a short briefing on whether any current transfers will be required to balance Pelham accounts. Staff said they will present proposed tap fees and rate changes later in the days budget work session and at the June ordinance stage, and that any rate changes will be justified with a clear cost accounting of collection, transmission and treatment and an estimate of customers once the Pelham development phases proceed.

Taper: Staff noted that accurate enterprise accounting is a prerequisite to any rate decision and that the county will report recommended rates alongside projected costs for FY2026.