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Commissioners approve application for interest-free loan, release most fire funds and clear year-end budget moves
Summary
Alleghany County commissioners voted to seek an interest-free loan application with Blue Ridge Energy for up to $1.3 million, approved payouts to four fire departments in compliance with contract terms while withholding one disbursement pending an audit, and adopted several year-end budget amendments and transfers.
Alleghany County commissioners voted Aug. 18 to proceed with an application to Blue Ridge Energy for an interest-free loan of up to $1.3 million and approved a package of related budget amendments and transfers to close the 2024–25 fiscal year.
The board also voted to disburse fire-tax funds to four volunteer fire departments that had met contract requirements and to withhold one department’s payment until an ongoing audit is complete. Commissioners approved the actions unanimously.
Why it matters: The loan application and budget adjustments are the county’s immediate steps toward funding capital needs — notably upgrades at the county transfer station — without raising taxes. Withholding one fire department’s payment signals the county’s insistence on contract compliance after auditors requested additional records.
The board authorized county staff to “proceed with any type of application with Blue Ridge Energy,” subject to a separate Local Government Commission (LGC) review because of the loan amount and repayment terms. County Manager Bill Shepley told the board the loan will require an LGC process in addition to Blue Ridge Energy’s procedures; the motion directs staff to begin the application process. The board recorded a 5-0 vote in favor.
During discussion, staff said the application would be for an interest-free loan and that county staff would present details, including the LGC steps and draft terms, for a future formal vote. The motion did not specify the loan’s proposed repayment schedule; the board requested staff return with the full financing plan.
Transfer station financing County Manager Bill Shepley and finance staff described the transfer station as a major capital priority that will require a mix of fund-balance use, the Blue Ridge Energy loan if approved, and grant applications. Shepley asked Finance Director April to prepare a funding-options plan for the board; staff offered to present the options either in a regular meeting or a separate work session.
Fire department disbursement and audit County staff reported that the standard contract for fire-tax funds included an audit requirement. Auditors have been working with one department for several months and said they had obtained most but not all receipts; staff reported the audit is nearing completion and expected to be available to the board within about a month. The board voted to release funds to the four departments that complied with contract terms and to withhold the disbursement for the one department until the audit is complete. The motion to pay compliant departments and withhold the one audit-related payment passed unanimously.
Other votes and year-end accounting The board approved multiple end-of-year housekeeping items, including line-item transfers and budget amendments (including a budget amendment related to a veterans-service grant and a DSS rental-assistance grant). The board adopted the consent agenda and vote motions with unanimous approval.
What’s next Staff will return with the finalized Blue Ridge Energy application materials and the LGC-required documentation. Finance staff will present detailed funding scenarios for transfer-station capital work, and auditors expect to complete the outstanding fire-department audit in the coming weeks, after which the board may release the withheld payment.
