Abstract
The Lower Cape Fear Water & Sewer Authority was a public entity formed to provide water to its six members. Brunswick County, the only member to contribute, advanced about $5.6 million to the authority to help finance construction. The authority and the county agreed that if the authority were to implement any improvements not directly or indirectly beneficial to the county in its opinion, the county would not have to pay the improvement‐related part of any rate unless it so consented. On appeal the county argued that the authority may grant it a different rate because no other members contributed to the financing. The authority argued that the county had advanced a loan, not a gift. The appeal court agreed that the authority could charge the county a different rate.
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