Board hears history of utility transfers, plans borrowing and capital work after FY26 budget

County finance staff presented a multiyear history of transfers between the general fund and the utilities fund and told supervisors the last general-fund transfer to utilities was $430,005.24 in fiscal 2018.

Staff said between fiscal 2021 and 2024 utilities paid indirect charges to the general fund—between about $166,000 and $195,000 annually—to reimburse administrative services; those interfund charges were removed from the FY25 budget when it became clear the utilities fund lacked sufficient operating revenue.

Board and staff members repeatedly linked the loss of recurring transfers to the current strain on the county’s water and sewer system. Supervisors said earlier decisions to shift costs were intended to keep the county tax rate lower but acknowledged they may have reduced capacity to fund needed utilities work.

County staff told the board they are planning an initial borrowing this summer—roughly $2.2 million—as the first tranche of capital funding and estimated about $66 million of utilities projects over a 10-year horizon. Staff said borrowing would fund capital projects and that debt service would not begin until fiscal 2027 under the current plan.

Supervisors asked for follow-up options that could combine any excess one-time general revenue with planned borrowing to increase early capital spending and to preserve operating reserves for emergencies. Staff also reported recent emergency repair invoices, including individual repairs around $70,000, underscoring near-term capital needs.

The board did not approve an immediate reallocation of budgeted funds for utilities at the meeting; members asked staff to return with an implementation plan tied to the county’s borrowing timeline.