Commissioners debate handling of Round Mountain wastewater donations; motion to set up county fund withdrawn

Custer County commissioners on April 9 debated how to receive and manage private donations intended to support a prototype sludge/septic treatment project for Round Mountain Water and Sanitation. Commissioners discussed options including having the county receive and track donations in a restricted account, or asking Round Mountain to act as the fiscal agent. A motion to create a restricted revenue and expense line in the commissioners’ general fund was introduced but later withdrawn so the board could seek additional legal and administrative clarity.

Why it matters: residents and local governments have already pledged money to help Round Mountain address a wastewater sludge issue. How donations are handled affects tax-deduction receipts for donors, transparency and whether county resources will be used to administer the funds.

What was reported and proposed

County staff said Round Mountain had an operational issue with sludge at its treatment plant and that local entities and residents had offered donations; the county previously advanced $40,000 from contingency to support the initial effort. The county reported it had already received private checks totaling roughly $45,000. Staff proposed two practical approaches: 1) set up a restricted revenue and expense line (a three-code) within the county general fund so the treasurer could receipt and track donations as restricted funds, or 2) confirm whether Round Mountain Water and Sanitation can legally and practically act as the fiscal agent to accept donations directly. Vernon Roth, the county finance director, described an internal accounting approach to track donated funds as restricted and suggested two authorized signatures for disbursement.

Arguments and concerns raised

Some commissioners and members of the public questioned whether donations should flow through the county. Commissioner comments emphasized that county contingency dollars already used to support Round Mountain are effectively taxpayer money and that accepting donations through the county could create expectations about reimbursement. One commissioner said a donation is not necessarily expected to be repaid, and another asked why Round Mountain itself could not accept donations. A county representative said she had raised the question with Round Mountain and with banks; she was told Round Mountain (a water and sanitation special district) could not, in that account, issue tax receipts that donors could use. At least one attendee disputed that interpretation and suggested the board re-check with Round Mountain’s board and legal counsel.

Outcome

The motion to open a restricted revenue and expense line within the commissioners’ general fund was introduced but then formally withdrawn pending further clarification with Round Mountain and the banks. Commissioners directed staff to return with additional information on whether Round Mountain could be the fiscal agent and to provide options for transparent handling of donations. Several commissioners expressed a preference to keep the process transparent and to avoid any implication of misuse of donated funds.

Speakers and sources

Speakers on this item included Chair Candace; county staff who described the county’s prior $40,000 contingency contribution; Bob Senderhoff (citizen who helped organize local donors); Vernon Roth, Custer County finance director; and commissioners who debated the motion. Staff said some checks already had been written and were being held pending direction from the board.

Follow-up

Staff were directed to reconvene with Round Mountain officials (including a suggested discussion with Charles Bogle and the Round Mountain board) and with county legal counsel to confirm whether the sanitation district can accept donations directly and whether those donations can be receipted for tax purposes. The board will reconsider a formal motion if necessary after that clarification.