Town still exploring options for past-due debt
Fontana Dam – With all the uncertainty pertaining to the future of Fontana Village Resort, the town is proactively looking ahead.
At July 15’s council meeting, Mayor Rob Hardy spoke about the importance of settling the debt owed to the town by the former shareholders of the resort – amassed from user fees and water/wastewater reimbursement requests – which total $77,591.19.
The balance was being paid via a monthly installment until the resort shut down in March. Most recently, the town attempted to speak with its legal counsel – Asheville attorney John Henning – about how to move forward with the matter. However, since Henning also represents the resort, no such communication could take place.
“We figure that sooner or later, there’s going to be some resolution,” Hardy said. “We’ve already provided the services, and we haven’t been paid. We don’t just want to sit back and quietly hope; we want to become a little more proactive and try to collect this debt.
“It’s becoming a priority issue; we’re looking at our long-term stability, and we’re not feeling so stable.”
Town Administrator Zelerie Rogers later stated that she would contact the League of Municipalities, seeking guidance on what Fontana Dam’s next move is. In the meantime, the Tennessee Valley Authority holds the lease to the resort, but is actively looking for lessees. The TVA sent a letter to the town, which contained what Hardy called “broad” language about an agreement with Fontana Dam.
A binding agreement would help avoid the issues the town has had collecting on its past-due balance with the resort, as the nearly $78K is an unsecured debt.
The town turned the letter over to its attorney for review.
“We just want to do our due diligence,” Hardy added. “We don’t want to sign something that (later) we wish we hadn’t signed.”
Other news and notes from the meeting included:
* Rogers presented the financial report. With a spending freeze in place, the town’s balance is $121,593.42. “I know we’re being very careful with money but, of course, there’s things you have to pay,” Rogers said.
* Unrestricted funds – totaling $2,172.68 – were left over from the 2019-20 fiscal year budget. Following a vote by the council, the funds was moved into the current general fund.
* The town will be reaching out to past-due water customers, once Executive Order No. 124 – signed by Gov. Roy Cooper on March 30, which prohibited utility companies from disconnecting due to non-payment – expires on July 31. Customers owe a total of $2,067.