Sylva town manager dismissed
SYLVA–Sylva Town Manager Jay Denton was relieved of his duties by the Sylva Town Board in its regular meeting Thursday evening, September 4.
The board voted 3-2 in support of the removal of their manager, who had worked for the town since 2005.
The vote came one day after a public meeting of the board’s personnel and finance committee, during which the committee discussed the mishandling of the investment of town funds by Denton. The town’s recent annual audit revealed that Denton invested $1.995 million of town funds in financial vehicles unapproved by the North Carolina Local Government Commission, and in doing so was in violation of North Carolina general statute 159-30.
The Local Government Commission is part of the North Carolina Department of State Treasurer. The purpose of the LGC’s list of approved investment conditions, in part, is to prevent the risk of public funds through uncertain investments or deposits.
In addition, the investments were handled by a close relative of Denton’s who works in the investment banking industry — an action not strictly illegal, but one that could raise ethical questions.
The funds in question are part of the $3.5 million that Sylva gained from the transferral of development rights of its watershed to the North Carolina Clean Water Management Trust Fund, and are generally considered Sylva’s “nest egg.”
No money was lost through Denton’s investments.
Voting for the dismissal were board members Maurice Moody (who made the motion), Sarah Graham and Stacy Knotts. Voting against the discharge were board members Harold Hensley and Ray Lewis.
The news about careless investing came three months after Denton brought other unwelcome news to the board: at that time, Denton told his employers that the town project to construct a pedestrian bridge over Scotts Creek — already over a year behind schedule — was going to overshoot the budget he’d written for it by $101,000.
The project was originally budgeted for and approved by the board in the spring of 2006, with a projected budget of $148,000.
The extra $101,000, Denton told the town, came as a result of a failure to secure soil samples on the south bank of Scotts Creek before the budget was written. The discovery that the south bank is comprised of fill dirt led to a more complex project.
The board voted 3-2 to approve a $101,000 budget amendment, financed from the town’s fund balance, to build the bridge despite the overage, primarily because the steel bridge itself, valued at approximately $80,000, had been purchased and was awaiting shipment.
Board members Knotts, Hensley and Lewis voted to approve a budget amendment and complete construction. Board members Moody and Graham voted against.
The south abutment, ramps and steps, along with the bridge span itself, were recently installed by subcontractors. Construction of bridge access on the north bank of Scotts Creek is proceeding under the auspices of town crews.
Additional details involving the bridge budget overrun are available from the Smoky Mountain News here and the Sylva Herald here. Coverage of Denton’s firing will appear in both papers later today.
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Excellent report! I’m not in a position to imply there was any impropriety, but I must say that as soon as I read about the shift of those investments, I immediately thought of that “close relative.” So, seeing that confirmed a couple of paragraphs later was no surprise. Just wanted to share my reaction to this news.