Fontana Dam – The outlook for Fontana Village Resort & Marina looks bleak.
The Town of Fontana Dam – which is entering its 10th year of existence – provided little in the way of clarity at its May 20 council meeting, because little is known to even the town about its main revenue source.
“It’s been … interesting,” Fontana Dam Mayor Rob Hardy said with a pause. “It seems like every week we thought we were going to have information, but then we would be told it would be the next week.
“We don’t have anything definitive, but there were a couple of meetings with the Tennessee Valley Authority, and the resort has been exploring the possibility of not proceeding with the lease.”
The town has even based its 2020-21 fiscal year budget around the resort not resuming operations, as the budget reflects no user, maintenance nor sanitation fees being paid from the resort. Barring any unforeseen expenses, the town has enough in reserves to make it through June 2021.
“As you know, the town operates through billed, monthly user fees,” the budget message reads. “It is still unclear in what capacity the resort is going to operate, going forward. This year’s budget is currently comprised – almost entirely – of unrestricted, general fund monies.
“The town continues to seek out ways to expand its revenue sources, but without property, other businesses or more residents to provide opportunities, we are very limited in what we can do.”
The resort itself closed down March 23, as part of Graham County’s State of Emergency declaration. A request for comment from the resort was not returned by Wednesday’s press deadline.
“I don’t want to speak for the resort, but we are moving in our direction,” Hardy said.
Other news and notes from the meeting included:
* Town Administrator Zelerie Rogers presented the financial report, saying the town has $145,830.71 in its account. “That amount will have to provide for us, until something happens with the resort,” Rogers added.
* Several water customers have kept up payments – despite a deferment period put in place – but for the ones that have not, the town plans to begin setting up payment arrangements in June. “We don’t want to turn off anybody’s water; especially right now since nobody is working,” Rogers said.
* The council accepted the resignation of member Sabrina Garrison, who is relocating. As of today, the town has no plans to fill the vacancy.