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HUNTSVILLE — Just as County Commission was set to vote on a pair of resolutions regarding Scott County’s participation in the Boys and Girls Club project Monday night, County Mayor Rick Keeton announced that the tax-free bond financing plan had fallen through.

That announcement came as the Commission met in regular monthly session at the Scott County Office Building. Mayor Keeton informed the commissioners that the Tennessee County Loan Association (TCLA) had informed him “just this afternoon” that the financing plan “would not pass the private activity bond test,” and other financing would have to be sought.

Mayor Keeton explained that the plan was to use a low interest county services loan to finance the county’s $1.36 million obligation to the construction costs of the Boys and Girls Club, which would be retired by an already-budgeted $75,000 a year obligation.

But, Keeton added, if a more conventional loan is required, that $75,000 a year obligation won’t be enough due to much higher interest rates on conventional loans.

Keeton’s surprise announcement put a halt to the commission’s planned adoption of an ownership agreement with the Town of Oneida and officials of the Boys and Girls Club, as well as a companion management agreement.

And, as one commissioner put it, “It’s back to square one.”

The sole reason that the county service loan funds can’t be used for a project such as this, Mayor Keeton and County Attorney John Beaty both explained, is because the facility is being used for purposes other than government service.

Despite this setback, Mayor Keeton urged the commissioners to proceed with adopting the ownership and management agreements, then meet in a previously scheduled informal meeting with the Town of Oneida and Boys and Girls Club Tuesday night to discuss those agreements.

But a majority of the commissioners apparently felt that would be a case of putting the cart before the horse.

Despite the apparent opposition to vote on the two resolutions, Keeton continued to press for going ahead with the Tuesday night meeting with officials of the town and the Boys and Girls Club.

“It’s extremely hard to get three groups together,” Mayor Keeton stated, adding that the planned meeting has already be rescheduled once. “I’d like to see us go forward.”

On a motion by Seventh District Commissioner Mike Slaven, the commission voted 11-1 to direct Finance Director Keith Jeffers begin a search for alternative financing for the county’s obligation, including local banks. It carried by an 11-1 vote with two members absent. Third District Commissioner Joel Newport cast the dissenting vote.

After that vote was recorded, Mayor Keeton announced that Tuesday night’s meeting with officials of the town and the Boys and Girls Club would begin at 5:30 p.m. at the Scott County Office Building.

In other business Monday night, the Commission:

• Adopted a resolution to allow electronic fund transfers for direct deposit of county employee paychecks;

• Approved a request by General Sessions Court Judge Jamie Cotton to appoint Betty Matthews and Daniel Murley as unpaid Judicial Commissioners/Magistrates;

• Approved a resolution banning smoking for all county-owned buildings with a provision that no smoking would be allowed within 20 feet of any of the county’s buildings or facilities;

• Corrected a typographical error in the 2007-2008 Appropriations Resolution to reflect $761,000 instead of $671,000 be in a line item for “Transfers to Other Funds;”

• Voted 12-0 to reelect Mayor Keeton as chairman of County Commission for another year, and voted 9-1 with one member abstaining to reelect Mike Slaven as chairman pro tem of the commission;

• Heard a request from Scott County Road Supt. Dick Sexton that the Commission consider allowing him to borrow up to eight to ten million dollars next year to bring the county’s roads up to standards, with the majority of that money being used for asphalt. Sexton also asked that the Commission consider sharing the costs of retiring that debt with his department. “We need to get roads in Scott County that people deserve,”: Sexton said;

• Approved a motion by Sixth District Commissioner Ron Blevins to work out a plan for a proposed library-multipurpose building at the Robbins Community Park and submit it to the state for review, prior to taking action on a request to construct such a building which is being donated to the county;

• Rescheduled the November work session of the Commission from Monday, Nov. 5 to Tuesday, Nov. 6 due to a conflict with the Boys and Girls Club’s Hall of Fame Banquet set for Nov. 5;

• Voted to purchase two tables at $550 each for Commissioners and their guests at the Hall of Fame Banquet; and,

• Heard a report from Brenda Sexton, representing the Mid-County Fire Department, that reflective house number signs are now available for installation on mail boxes and/or homes at a cost of $15 from the fire department, in an effort to assist emergency response time by law enforcement, firefighters and the Scott County Ambulance Service, as well as a fundraising project for the fire department. She said the number signs could be ordered by calling the fire department (569-2408) or, within the next week, via the Internet at www.midcountyfire.com. After her brief presentation, Sheriff Anthony Lay stated: “This little sign can make a difference in saving somebody’s life. I’d really like to promote that.”