By Nicole Bowman-Layton

EDENTON — The Edenton Town Council will meet at 6 p.m. Tuesday, March 10, 2026, at the Council Chambers, 504 S. Broad St., to take up a slate of financial and facilities matters, including formally accepting an $850,000 state grant for downtown lighting, considering a renewed push for Chowan County to hand over Swain Auditorium, and approving a corrective action plan tied to the town’s most recent annual audit.

Remote access is available via Zoom at meeting ID 252 482 2155, passcode 458434. A dial-in option is available at 301-715-8592.

A copy of the agenda can be found below the story.

Lighting grant

One of the more significant items on Tuesday’s agenda is the formal acceptance of an $850,000 grant from the North Carolina Rural Downtown Economic Development program — an award that was already announced.

The N.C. Rural Infrastructure Authority approved the grant Feb. 19 as part of a batch of 12 awards to local governments statewide totaling nearly $5.9 million. The grant agreement carries an effective date of Feb. 20, 2026, and runs through Feb. 18, 2029.

According to the grant agreement, the funds will pay for the replacement, addition and installation of period-appropriate lamp fixtures designed to improve safety and security for downtown businesses and visitors. The project is expected to leverage an additional $458,331 in public and private investment. The town is required to provide a 5% local match and must submit progress reports each Jan. 31 and July 31 for the life of the grant.

Work connected to the broader downtown streetscape initiative is already underway. As the Observer previously reported, the town’s Electric Department began boring underground to relocate overhead power and telecommunications lines along portions of Queen and Court streets — work described as part of the same downtown improvement effort the lighting grant supports.

The project is still underway and involves several road closures.

Tuesday’s council vote would formally execute the grant contract with the N.C. Department of Commerce, a step required before the town can seek reimbursements.

Swain Auditorium

Also on the agenda is a request letter to the Chowan County Board of Commissioners asking that ownership of the property at 200 E. Church St. — commonly known as Swain Auditorium — be transferred to the Town of Edenton.

The issue has a history before council. In November 2025, the council considered the acquisition at a special meeting, with the stated goal of using the facility to expand performing arts opportunities. The matter was tabled at that time to allow further discussion.

The Town of Edenton gifted the building to Chowan County in 1989. It has been the home of the Chowan County Senior Center for over 30 years. The front section of the building, which had been school classrooms, was converted into apartments.

In 2024, the senior center staff asked the Board of Commissioners to consider doing a study as to how to better use the auditorium. During that meeting, the commissioners noted that they were in the process of building a 350-seat, state-of-the-art performing arts center at the new John A. Holmes High School, according to a local new source. That center, located in the section of the building closest to Park Avenue, is still under construction.

The letter, which was drafted by March 2025, cites Swain Auditorium’s location within Edenton’s National Register Historic District as justification for municipal ownership. It argues that the town, as steward of one of North Carolina’s most intact colonial-era communities, is better positioned than the county to pursue long-term restoration and adaptive reuse of the building.

“Municipal ownership would position the Town to pursue long-term preservation planning, restoration opportunities, and appropriate adaptive use of the facility while maintaining the historic character and public value of the building,” the letter states.

The town’s 2025 planning documents had previously flagged improving the town-county relationship — including the use of Swain Auditorium — as a priority. It is worth noting that any transfer of the property would require the county’s consent; Tuesday’s action would authorize the mayor to formally request it.

Budget amendments

Council members will also vote on a pair of budget amendments, both prepared by Finance Officer Virginia Smith.

The first records $91,698.48 in interest earnings on funds held in the USDA Wastewater Treatment Plant project account. The amendment moves that amount from a revenue line for investment interest into a miscellaneous expense line within the USDA WWTP capital project fund, keeping the books in balance.

The second is a correction to Amendment No. 7 for the Airport Small Capital Project Fund, related to the Runway 1-19 Pavement and Lighting Rehabilitation project. The amendment adds $20,480 in North Carolina Division of Aviation grant proceeds and applies those funds to engineering and grant administration services for the runway project, which has been the subject of multiple prior amendments dating to a work authorization originally adopted in February 2021.

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Audit response

Council members will also review and approve a response letter and corrective action plan stemming from the town’s fiscal year 2024-25 audit, which was presented at the Feb. 10 regular meeting by Greg Adams of Thompson, Price, Scott and Adams Co.

The corrective action plan, signed by council members and town staff, addresses a financial statement finding labeled 2025-001, which cited non-compliance with budget across several funds.

In the General Fund’s special revenue accounts, auditors flagged a situation where a contractor submitted an invoice for work performed in fiscal year 2024-25 that was not dated, received or paid until July 2025. Recording that payable caused spending to exceed the budgeted amount. A budget amendment was subsequently entered to cover the shortfall, and the town said it will require all special project contractors to provide invoices before June 30 going forward.

In the Electric Fund, a recently hired purchasing agent discovered during year-end inventory that stock had been overstated in the prior year due to a miscalculation. An adjusting entry corrected the inventory value, which produced a budget deficit in that fund. Additionally, a one-time prior-year entry under GASB 101 for accrued paid leave also created deficits in several Electric Fund departments. The town said future entries will reflect current-year activity only.

Beyond the specific findings, the audit also flagged several financial condition indicators. Among them: the General Fund’s available balance fell below the required minimum, the Electric Fund’s quick ratio was less than 1 and several cash flow indicators fell short of thresholds, and the Water/Sewer Fund’s operating net income was negative with capital asset condition below 50%.

The corrective action plan acknowledges each finding. On the General Fund balance, council noted that large receivables from water, sewer and airport capital projects — which are grant and loan-related — were not recognized in fiscal year 2025 and are expected to be captured in the upcoming fiscal year 2026 audit. On the Electric Fund, a rate increase was approved for the current budget year and installation of the town’s new automatic meter reading system is ongoing; as of February, 1,480 meters had been installed. On Water/Sewer, the town said reimbursements for ARPA-funded projects are typically received in the fiscal year following expenditure, and that once current projects are complete, operating income and asset values should improve.

Other notes

The meeting begins at 6 p.m. Council will also be asked to approve minutes from the regular February 10 meeting as well as the special meetings of Dec. 22, 2025, and Feb. 23, 2026. Public comment is open to all, with speakers limited to three minutes each.

The Edenton Town Council meets on the second Tuesday of each month. The public may attend in person or view meetings remotely. Minutes from past meetings and agenda packets are available from the town clerk’s office and online.