Restraining Order by Swain County Prevents Disbursement of FRL Cash

Dear Friends:

We have a short update regarding Fontana Regional Library's (FRL) proposed distribution of approximately $1.35 million in surplus funds.

Public court records show Swain County has obtained a temporary restraining order against FRL (Case Number 26CV000161-860). The filing challenges the FRL Board’s May 12 decision to divide surplus funds among the three member counties ahead of Jackson’s withdrawal (effective July 1, 2026) and Macon’s (effective July 1, 2027). The FRL board had planned to finalize the disbursement at its June 22 meeting, but the restraining order prohibits any distribution, so that vote cannot proceed.

Swain’s argument is that the Interlocal Agreement (Nov. 2024) only allows asset distribution in two circumstances:

• when a county withdraws (limited to physical materials), or

• when FRL formally dissolves (a process requiring a multi‑party committee, including the State Library).

Because neither condition has occurred, Swain contends the board lacks authority to distribute cash. A Superior Court judge granted the restraining order on June 17, finding Swain likely to succeed and noting the urgency created by the planned June 22 vote. A hearing is scheduled for June 29.

These developments reinforce our concern that major decisions about FRL are being made without adequate expertise or adherence to required procedures, and creating unnecessary risk and significant financial harm for all three counties.

We will continue to monitor and share updates. We are deeply grateful for any news on these and other legal fronts.

The JCPL Allies

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