But the project won't be approved until the town is assured that a sinkhole that occurred in January as a result of a Surgoinsville Utility District water line leak on Old Stage Road earlier this year has been addressed and there won't be any more sinking.
Mayor Merrell Graham said the paving will be paid from USDA zero interest loan funds that were acquired as part of the Phase 1 sewer system installation but were left over.
Alderman Dale Byington expressed concern about paving Old Stage Road until the sinkhole is "fixed right."
Graham said there are also some nearby "dips" in the road that need to be investigated and/or addressed before any paving begins as well.
"The water department has been informed," Graham said. "I don't want to pave the road and then have to tear it all to pieces."
The town received permission to use the funds to pave sections of Church Street and Old Stage Road where the sewer line was buried in the middle of the roadway.
Pavement in the center of the roadway was patched on Old Stage Road from Main Street to Church Street and then on Church Street north to Pine Street.
About $300,000 is left over in the USDA fund, but not all of that will be needed for this project.
"We thought we were going to need that money for the last 30 homes that was on our list in Phase 1, and as it turned out we didn't," Graham said.
Anything that isn't spent when they close out Phase 1 project goes back to the USDA.
About $100,000 of the leftover funds are also earmarked for purchasing mandatory backup equipment for the sewer system and paying the remaining balance owed the contractor.
In other business Monday, the BMA:
* Heard a report from Graham that the annual Dr. Lyons Day Festival will be Saturday, June 24 with the breakfast 8-10 a.m. and the actual festival at Riverfront Park from noon until 10 p.m.
The event includes live entertainment all day, as well as inflatables and games for children, door prizes, a tractor show, a variety of food and fireworks. Vendors are welcome and can call (423) 354-2213 for more information.
* Agreed to vacate a platted but unopened public right of way off Church Street that abuts the property of Robert E. and Renee Cook and Mitchell M. and Susan Houston. The property is 15 feet wide and 140 feet long.
* Agreed to declare a fork lift truck as surplus for the purpose of selling it at auction.