Sylva to pay for pool repairs with UDAG funds

By Lynn Hotaling

Sylva officials agreed unanimously Monday (Nov. 20) to use town-controlled economic development funds, UDAG money, to finance its planned $688,000 swimming pool improvement project.

During a called meeting Monday night, Sylva board members voted unanimously to change directions on funding the project. During a public hearing intended to take comment on bank financing for the pool repairs, town administrator Tommy Thompson told board members that UDAG funds were an option to pay for the project.

Initially, he said, members of the town finance committee understood that the town could borrow the money from its own UDAG funds and set up a payment schedule to replace the money. However, research by accountant Mitch Crisp of Crisp Hughes Evans, accounting firm for the town of Sylva, indicated that the transfer could not be handled in that fashion.

Board member Maurice Moody initially objected to using the UDAG funds, saying that if the town couldn't literally "borrow" the money, there would be no obligation on the part of future boards to replenish the UDAG fund.

"I guess my preference, therefore, would be to borrow the money from a bank," Moody said. Thompson brought up the additional costs associated with bank loans - not only interest but also closing costs and a loan application fee to the Local Government Commission.

Thompson agreed with Moody that borrowing from a bank would bind both the current and future boards with regard to repaying the loan in a way that using UDAG funding would not.

Board member Audrey Tritt stated her preference for using the town-controlled UDAG funds. "If we write something up indicating we expect the money will be paid back, I don't think future boards would refuse to honor that," she said.

Board member Lynda Sossamon agreed.

Crisp pointed out that it is extremely difficult for one board to bind future boards.

"There's nothing to prohibit a future board from changing its mind and refusing to honor the agreement," he said.

"If the future board is that kind of board, it doesn't matter whether there's any money there or not," Tritt said.

"Absolutely," Crisp said. "It's an issue of trust."

Crisp advised board members against including dollar amounts or time limits in their resolution, but said they could state their "intent to replenish and rebuild the UDAG fund."

Sylva's UDAG fund currently contains some $1.2 million, said Thompson.

In the works for more than three years, the planned swimming pool project will upgrade and enlarge Sylva's 31-year-old facility. It will be a complete renovation that will add a swimming lane and refurbish the dressing rooms.

A portion of the project's cost will be paid with the remainder of a $250,000 state Recreation Trust Fund grant.

In other business Monday:

- Town leaders unanimously agreed to be the temporary fiscal agent for the Jackson County Greenways Commission and allocate $2,500 to pay the salary of an Americorps worker hired to coordinate the effort. Mayor Brenda Oliver, chairman of the commission, made the request. She asked the town to step in because, while the legal documents structuring the task force wait required approvals, the greenways coordinator is not getting paid. Jackson County intends to be the fiscal agent for the group, Oliver said, but can't disburse funds until the necessary agreements are in place.

- Board member Moody recommended the town develop a list of ongoing projects and receive an update on each during monthly board meetings.

Sylva's board meets regularly on the first Thursday of each month at 7 p.m. in Municipal Hall.

Back to Archive: 11/23/00.