At a City Council meeting a couple of years back before the annexation happened, this very issue was brought up. Councilwoman Padgett seemed not to know this was going to be the City's expense, but at least the Mayor was knowledgable enough about the ILA to know this was the case.
Quite simply, the COW can annex to hell and back, but CFPUA doesn't have to pay for the whims of the city with the money they don't have.
There are places the COW annexed in 1995, 1998, and other areas (Masonboro Loop) that still don't have water and sewer as promised and required by Annexation.
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