The approval also came with a condition that the YVSA pay back the initial funding after its third year of operation.
The decision was made during Monday night’s Project Update Meeting, an annual planning session that includes the town board, Manager Lloyd Payne and town staff.
The board voted unanimously to provide funding to create a reserve fund for YVSA for the first three years of its operation beginning July 1, 2010 in the amounts of $100,000 for the first two years and $50,000 for the third year.
The YSVA would be responsible for returning Elkin’s investment of $250,000 beginning in 2013.
Payne’s proposal would have the sewer authority paying back Elkin’s $250,000 investment over a period of 10 years. However, he said during the meeting Monday night that he believes the town would recoup its investment within six and a half years.
The repayment schedule, however, for Elkin is not firm. If the YVSA fund balance dipped below a certain percentage it would trigger a mechanism that would allow it to defer repayments from year-to-year.
If that were to happen, the YVSA would not be required to make a payment in that fiscal year.
If, as anticipated, the fund balance reaches and maintains a level, as yet to be determined, payments to the town will be made during the 10th or 11th month of that fiscal year to allow the YVSA the opportunity to meet its major current expenses.
The plan will now be forwarded to the sewer authority board, the town of Jonesville and Ronda.
Further discussion centered around the date of ‘stand up’ and the actual date of operation of the sewer lines in Elkin.
John Holcomb, Elkin’s finance director explained that the projected stand up date is July 1, but that the flow of the sewer in Elkin is not expected to happen until Sept. or Oct.
Other departments presented updates at the meeting as well. Chief Monroe Wagoner spoke about the proposed walkway on Church Street and explained although the town could certainly go ahead and do their portion, the N.C. Department of Transportation is not sure whether the placement of the electronic hand signal signs and crosswalk markers would be complete by the start of the 2010 - 2011 school year. The town agreed to move forward with their portion.
Elkin Fire Chief Tommy Wheeler presented an update on the proposal for the new fire station, which would be located on C. C. Camp Road, adjacent to the new Coffee House.
The fire station would include housing for three on-duty firefighters, a meeting room, code compliance bathrooms and the fire truck bays. The town is waiting for approval on a grant submission to move forward with the proposed fire department.
Adam McComb presented an update on the projects underway by the Parks and Recreation department.
Repair work is planned for the tennis courts at the Elkin Municipal Park, as well as having the swimming pool building pressure washed. McComb reported that the floor of the band shell has been replaced with improvements to prevent water from collecting. He also reported that portions of the former weight room floor would be replaced and the weight room moved to one of the rooms with concrete flooring and weight pads.
With the development of a rehabilitation center at the new Hugh Chatham Memorial hospital, the hospital is no longer using a portion of the gymnasium. With this development, the summer day camp program will move into the gym and benefit 90 children.
He also told the board of an opportunity with the N. C. Wildlife Commission and Crater Park’s access. The board agreed to pursue the opportunity by gathering all the information needed for a joint venture.
The Elkin Town Board of Commissioners are preparing for their budget talks in preparation for the 2010 - 2011 budget year which begins July 1.
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