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Smithfield council declines one-time $60,000 payoff for Smithfield Recreation Association
Summary
After an hour of debate, the Town Council voted down a motion to apply $60,000 of interest earnings to reduce the Smithfield Recreation Association's remaining debt to the town; members instead directed further study by the Parks & Recreation committee.
The Smithfield Town Council on Feb. 4 rejected a motion to apply $60,000 from interest earned on a previously returned $6 million payment to reduce the Smithfield Recreation Association's outstanding debt to the town.
Councilman Darren Bowman made the motion, saying the transfer would support youth sports and relieve SRA's debt burden. "In the interest of advancing and supporting our youth sports in the town of Smithfield, I would like to make a motion that this council authorize the allocation of $60,000," Bowman said.
The proposal drew extended debate about equity and precedent. Council members raised concerns about treating SRA differently from other youth organizations, the proper process for changing a receivable, and whether the town should instead distribute the funds more broadly or use them for capital projects.
"If you forget your past you're bound to repeat it," Councilwoman (name as recorded: speaker labeled 7) said while urging caution about singling out one organization. Other council members urged a committee review. "Rather than make a divisive vote, a better decision be made on what we want to do with that money wholly," another council member said, proposing Parks & Recreation review.
A substitute motion to send the matter to the Parks & Recreation committee failed on a 4-3 vote. The original $60,000 allocation motion later failed on a recorded vote that council members repeated as: Yes: 2; No: 4. After the failed motion council members said the issue could be reconsidered in committee and during the budget process.
Town staff clarified there was no immediate payment due: SRA had made its 2024 payment and the next installment is not due until the end of the year. Finance staff also confirmed the interest proceeds were not contractually restricted to a specific use.
Council members and staff suggested alternatives including: (1) Parks & Recreation committee review and recommendations; (2) using the funds for facility upgrades at Luder (Luda) Sports Complex; or (3) broader distribution across youth programs. No final allocation was made.
The council adjourned the discussion by agreeing the matter could return to committee for more study rather than be decided that night.
Ending: Council members left open multiple options for the interest funds, including committee study and later budget deliberations; no council money was reallocated on Feb. 4.
