Lessee now owes $111K in user fees; water-plant expenses also weighing heavily
Rob Hardy
Fontana Dam – It may seem to many that the Town of Fontana Dam is relatively new.
That’s because – relatively speaking – it is: its first council was sworn in May 8, 2011.
But only 13 ½ years after its formation, the final months of Fontana Dam as a municipality could very well lie ahead.
Plagued by an inability to nail down a binding payment arrangement for user fees with past – and present – lessees of Fontana Village Resort and Marina, the literal one-horse town began publicly discussion the possibility that it might have to forfeit its charter and cease to exist in January 2024.
One year later – and with an ominous tone looming over the room – the sentiment remained Jan. 23, as the council held a special-called meeting to address what could be the inevitable: a lack of steady income for user fees and costly water repairs could spell the end of the Town of Fontana Dam.
Town administrator Zelerie Rogers reported a general fund balance of $69,505.93 – of which $34,832.74 is restricted, meaning the town can only spend $34,673.19 as needed at the moment.
Rogers estimated that the town is currently spending $8,000 monthly on expenses.
“We can’t spend that (balance) all the way down, because if the town was going to go all the way under, we would need time to unravel it,” Rogers said.
The presentation of the town’s finances followed yet another lengthy discussion on the brick wall that has been hit concerning replacing the municipality’s aging water lines. Most sections date back to when the village itself was filled with workers and their families during the construction of Fontana Dam from 1942-44.
Today, the lines are causing the town’s eight-year-old water plant to operate 14-20 hours a day, while losing over a foot of water an hour. Various leaks pop up and cannot be traced. A grant through the Appalachian Regional Commission to replace major portions of the water-line system sits idle, however, as the town waits for a required environmental assessment to be approved.
Rogers noted that the utility fund was “even worse,” stating that checks for a recent order of water treatments had yet to clear the bank – yet, half the chemicals from the order had already been used.
At the Jan. 23 meeting, there was $18,523 in the fund, but one check issued for chemicals alone was for $9,189.97; another was for $260.26, for phone and internet services; and one for a weekly analysis totaled $4,558.
The town is literally in a race against the clock, as its current lessee – Fontana Ventures, LLC – has not maintained payments for user fees (such as trash removal and water service to the village itself, both supplied by the town) since taking over April 27, 2023.
“It’s the opposite of a light at the end of a tunnel; this is a doomsday clock that we can see counting down for the town,” said mayor Rob Hardy. “We’re below $5,000 in the utility fund and that’s allocated toward the analysis. It’s perplexing to say the least.”
Fontana Dam has indicated that Fontana Ventures will not sign a user agreement with the municipality; the reason why remains unclear. Rogers revealed that the total balance past due in user fees has now reached $111,000, which covers all of 2024.
At Jan. 23’s meeting, Rogers stated that the 2024-25 fiscal budget was supposed to include monthly payments of $8,000 from Fontana Ventures for user fees.
“If they feel like the town is valuable enough to keep aboard, then there’s got to be money,” Rogers said.
“It’s like stages of grief,” Hardy added. “It’s frustration, it’s anger, but I think I’m actually starting to accept the fact that the town is actually going to die.
“If I feel hopeless, it’s because I have no information for hope. I would welcome anyone to have a conversation to change my mind, my tone and my tenor.”
The meeting can be viewed on The Graham Star’s YouTube channel.