Matthews approves $1.75M tourism‑fund installment financing, board authorizes potential early principal payments from fund balance

The Board of Commissioners on April 28 approved a 10‑year installment financing agreement with Town Bank to cover $1,750,000 in tourism‑fund‑eligible costs tied to a recent property purchase.

Finance staff presented two proposals received in response to an RFP and recommended a 10‑year agreement with Town Bank at a 4.20% rate and annual payments of $218,570. Theresa told the board the town modeled the proposed repayment in the tourism‑fund forecast and said the financing would not affect the general fund. Commissioners discussed whether to use existing fund balance to reduce future interest costs. Commissioner John Urban moved to approve the agreement, to authorize staff to apply to the Local Government Commission for approval and to authorize the town manager to enter the agreement once LGC approval is granted, with an additional provision that any fund‑balance surplus above the board’s policy level at fiscal‑year close could be used to make principal payments and reduce interest costs. Commissioner Ken McCool seconded the motion; the board voted unanimously to approve.

Why this matters: The financing reimburses tourism funds used to purchase property the town expects to use for tourism‑related development (for example, the planned Discovery Place kids museum and downtown park). Using installment financing preserves general‑fund capacity while committing tourism funds to repay the debt.

Next steps: Staff will submit the application to the Local Government Commission and return any documentation required for closing.