Warren County approves occupancy-tax award to Johnsburg to help fund North Creek wastewater project

The Warren County Board of Supervisors voted to approve Resolution 36, authorizing an agreement with the town of Johnsburg to award occupancy-tax funds to support construction of a wastewater treatment system in North Creek, passing with 694 votes in favor.

Supporters said the allocation is driven by immediate public-health and economic concerns in North Creek, where failing septic systems have caused sewage overflows. "We had sewage running down Main Street," Supervisor Bean said during discussion, describing recent failures in the hamlet's systems.

The board heard that the town faces a narrow deadline tied to construction bids. "As of February 19, our bids expire," Supervisor Dean said. "If we go back to the voters, there's a good chance we won't have a sewer district. It also basically puts in jeopardy whether [the lodge] can open ... in September or not." Dean and other speakers described a mix of short-term borrowing, USDA financing and potential grant applications being pursued alongside the county contribution.

County staff and presenters outlined the financing that underpins the project. A speaker said Johnsburg is pursuing a USDA loan of roughly $3,700,000 at 1.5% for 38 years and plans additional bonding of about $2,500,000 that requires a county commitment before USDA will finalize its loan. Board members also referenced a county contribution structured as $250,000 per year for 10 years (totaling $2.5 million) under the occupancy-tax award; speakers described that figure as the county’s requested commitment for the project.

The county attorney addressed the board’s legal basis for using occupancy-tax revenue in this case, saying the award would be "for the promotion of tourism in the North Creek area ... tie[ing] into this system project," and that a 20-room hotel under construction would be a related tourism facility connecting the project to occupancy-tax purposes.

Several supervisors said they were sympathetic to Johnsburg’s urgent needs but worried about setting a precedent for using occupancy-tax revenue for infrastructure. "I'm very sympathetic. I'm worried about setting the precedent using this amount of [occupancy] tax money for infrastructure," Supervisor Straub said. Supervisor White recommended exploring a standing infrastructure fund funded from occupancy-tax receipts to reduce ad hoc decisions going forward.

Speakers said the town is pursuing other grants and funding sources; board members were told those potential grants may not be confirmed until April or May. "If the money does come from elsewhere through grants ... would they still need this funding from the county? No, I don't believe so," one speaker said when asking whether Johnsburg would reduce the county award if other funds arrive.

After extended discussion and a roll-call vote, the board approved Resolution 36. The motion does not specify in the meeting transcript any amendment to the award amount or a requirement to return unneeded funds if external grants arrive.

The board moved on after the roll call; no further conditions or explicit implementation deadlines were stated on the record.