KIAWAH ISLAND — Town voters here will go to the polls Tuesday to decide if they want to enter the utility business. The resort island's 33-year-old water and sewer system has been run by a private company, Kiawah Development Partners. But the company notified the town government in August that it is willing to sell the utility, and the town has the first right to buy it. If the island's 1,472 eligible voters reject the referendum Tuesday, then the deal's off. If they approve it, the town would continue working with its engineering and legal consultants to propose a deal, said Kiawah Island Town Councilman Charles Lipuma, chairman of the town's utility task force. There's been little or no politicking over the question, Lipuma said. Instead, the town has held several informational meetings to lay out the facts. Lipuma said there are several advantages to the town owning and running the utility as opposed to a private company. The town would be exempt from local, state and federal taxes, would have lower borrowing costs, would be eligible for state and federal grants, would not be looking to make a profit and could set its own rates. The disadvantages would include operating challenges, including the possibility of a big maintenance bill should part of the system break down. The town also might be restricted in imposing water and sewer impact fees for possible development on Cougar Island and Captain Sam's spit. 'We've tried to give as balanced a picture as possible. ... There has been no politicking,' Lipuma said. 'Personally, I'm very, very strongly for it.' The utility currently is seeking its first rate increase in a decade from the S.C. Public Service Commission. If approved, the first phase would increase water and sewer bills by about 17 percent, said Townsend Clarkson, Kiawah Development Partner's chief operating officer. Clarkson said Kiawah Development Partners always intended to sell the utility as it neared the end of developing the island, which has only about 400 lots left out of about 4,500. The utility is not part of the company's core business, he added. Kiawah Development Partners has received three private offers on the plant, and some of those bidders will be watching to see what town voters do, he added. The utility has about 3,700 water customers, 3,300 sewer customers and annual revenues of about $5.5 million, Clarkson said. It employs 17 people. The town's government currently employs about nine. If voters approve the referendum, then Lipuma said the town would have until December or January to make a formal offer. Ultimately, voters might return to the polls for another referendum to finance the purchase and decide how the new utility should be governed. Referendum The question: Shall the town of Kiawah Island be empowered to acquire by purchase, operate and maintain a waterworks and sewer system? Poll info: Voting will open Tuesday from 7 a.m. to 7 p.m. at the Kiawah Island St. Johns Fire Station No. 4, 12 Sora Rail Road.

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