Swain County filed a complaint seeking to temporarily stop the Fontana Regional Library from dispersing funds to Macon, Jackson and Swain counties.
The Swain County Board of Commissioners went into closed session for 40 minutes following its June 15 meeting to “consult with counsel on claims, lawsuits or settlements to maintain attorney-client privilege.” The board emerged from the session without taking further action in open session.
According to documents taken from the N.C. eCourts portal, on Wednesday, June 17, Swain County filed a complaint against Fontana Regional Library, Inc. requesting a temporary restraining order against the FRL to prevent its board from voting to disperse money from its fund balance to FRL member counties. The request was granted by Swain Superior Court Judge Tessa Sellers, barring the FRL from voting to distribute the funds pending “further order of the court.”
On May 12, Lori Richards, a Jackson County-appointed trustee on the FRL board, gave a presentation on the FRL fund balance saying the regional system has been hoarding excess funds from member counties for 80 years, with previous boards asking for more resources than the FRL needed. Richards’ proposal would distribute $1,350,311.38 to Macon, Jackson and Swain counties, with Swain County receiving $86,213.25; Macon County, $525,401.97; and Jackson County, $738,696.16.
In a motion made by Denise Boothby, the board voted to disperse the funds only after using a financial professional or interim director Bill McGaha to check the amounts to make sure they do not include marked funds from the federal government, grants or private donations.
Swain County trustees Cheryl Taylor and Cynthia Womble, Jackson County trustee Deborah Smith and Macon County trustees Kathy Smith and Denise Boothby all voted in favor of the motion. Jackson County trustees Lori Richards and Marva Jennings, and Swain County trustee Tony Monnat voted against the motion. Board chair and Macon County trustee Bill McGaha abstained.
McGaha said at a special called June 16 meeting he was not prepared to vote on dispersing the funds as he had not had time to review the numbers.
Swain County’s complaint alleges the board voted on this motion in violation of interlocal agreement provisions agreed upon by the three county governments and FRL board, which do not authorize the board to distribute funds except under narrow conditions which were not met ahead of the FRL board’s vote. These conditions only refer to the dissolution of the FRL, which is not currently under consideration.
The complaint argues, “The FRL Board voted to distribute funds and assets to participating units of local government contrary to the terms of the Interlocal Agreement. ... Nothing in the Interlocal Agreement authorizes the distribution of those assets merely because one participating county elects to withdraw from the regional arrangement. ... FRL lacks authority to accelerate or invoke dissolution-related asset distribution provisions while the corporation remains in existence and continues operations.”
The temporary restraining order found the plaintiff “has demonstrated a likelihood of success on the merits.”
Reporter Shelby Powell can be reached at reporter@thefranklinpress.com.