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Committee advances resolution to authorize $810,000 intergovernmental loan for landfill compactor
Summary
The Butte‑Silver Bow Judiciary Committee voted to move Resolution 2025‑21 to final reading, enabling the county to enter an intergovernmental promissory note from the general fund to the Solid Waste Division to purchase an $810,000 BOMAG compactor with a variable interest rate tied to the Montana Board of Investments intercap program.
Butte‑Silver Bow County’s Judiciary Committee voted to move Resolution 2025‑21 to final reading, a measure authorizing the chief executive and finance and budget director to execute a variable‑rate intergovernmental promissory note from the general fund to the Solid Waste Division to purchase a compactor priced at $810,000.
The resolution would allow the county to loan funds from its general fund to the landfill rather than seek bank financing, using the Montana Board of Investments' intercap rate structure so the interest rate adjusts annually. Director Hassler, Finance and Budget Director, said, “The money will be paid back to the general fund with interest over a period of 10 years.”
Committee members pressed for clarification on why the county was using an intergovernmental loan instead of a bank loan or bond. Director Hassler explained the difference: a bank loan would be fixed‑rate and likely higher today, while the intercap program uses a variable rate tied to market movements and is adjusted every February. He noted that similar intergovernmental loans have been used in the past for equipment purchases, citing earlier loans between Metro Sewer and Transit for buses.
Commissioner Hattie Thatcher moved to advance Resolution 2025‑21 to final reading; a second was recorded and the motion carried on a voice vote.
The resolution authorizes a 10‑year repayment schedule and follows the county’s preference to avoid bond covenants and debt service requirements that accompany issuance of revenue bonds. If the resolution clears final reading, the county will proceed with the promissory note and equipment purchase under the terms described.
