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Council approves $108,000 transfer from pressurized-irrigation fund to general fund over objections
Summary
After a public hearing, Highland City Council approved a $108,000 transfer from the pressurized irrigation (PI) fund to the general fund, a practice several council members questioned as a de facto subsidy on PI users; the measure passed 4'1 with Council Member Doug Courtney voting no.
Highland — The Highland City Council voted 4'1 on Tuesday to transfer $108,000 from the city's pressurized irrigation (PI) fund to the general fund for fiscal 2025'26.
The transfer represents 3.4% of the PI fund's total budget for the year and roughly 4% of user-fee revenues in the PI fund, Finance Director David Mortensen told the council during the statutorily required public hearing. The transfer pays for the city's use of PI water to irrigate open spaces and parks.
Why this mattered: The topic prompted substantive debate among council members about transparency and whether the general fund should directly pay for park irrigation rather than recovering the cost through a PI transfer. Some council members argued the current practice effectively spreads the parks' cost across all PI users, while others said the transfer is a longstanding practice and that, without it, the general fund would need to find another $108,000 or reduce services.
Council action and vote Council Member Kim moved to approve the resolution authorizing the $108,000 transfer; Council Member Ron seconded. The roll call vote was 4 yes, 1 no; Council Member Doug Courtney voted no and asked staff to consider alternatives that would avoid embedding the parks'cost in the PI user base.
What staff said Mortensen said the transfer practice dates to prior years and that the amount is modest in the context of the PI fund, but acknowledged other council members' concerns about transparency and long-term policy. "Essentially, we're charging all of our PI users a little bit more in order to subsidize the city's usage of PI water," he said, arguing the transfer has been used to keep the general fund balanced.
Council reaction Council Member Scott said he favored moving toward a clearer policy where the general fund directly pays park irrigation costs rather than relying on an annual transfer charged to all PI users. Council Member Kim, who moved the resolution, said the transfer was a recognized practice and that the council could propose alternatives in future budget cycles.
Outcome and next steps The resolution passed and the transfer will be included in the adopted FY2025'26 budget. Council asked staff to document the history of the transfer practice and to present alternatives for council consideration in future budgeting.
