Teton County commissioners continue SPET distribution; public urges more water funding

Teton County commissioners continued consideration of the third‑year distribution schedule for the 2022 Specific Purpose Excise Tax (SPET) after more than an hour of public comment urging greater funding for water‑quality projects and technical staff discussion about timing and cash flow.

Treasurer Katie Smits presented the draft schedule and said the combined requests from all SPET entities totaled about $53,000,000 for fiscal year 2026 while forecast revenue was roughly $24,000,000, leaving a shortfall of roughly $29,000,000. She described her outreach to applicants to verify readiness and alternate funding sources and noted the draft would allocate water projects only about $620,000 in the coming year. “I give them a list of how much is collected each month … $53,000,000 was asked for. There's only about 22,000,000 to go around,” Smits said during her presentation.

Public speakers — including members of Protect Our Water Jackson Hole, the Hoback Junction Water and Sewer District and the Jackson Hole Conservation Alliance — told commissioners they expected the SPET revenue to be prioritized for water because the 2022 measure passed with very strong voter support. Brad Nielsen of Protect Our Water Jackson Hole noted the water measure “was approved by almost—I mean, it might have been 79% ... 80% of the people in this valley said water matters,” and called the proposed allocation, in which water projects initially receive a small share, a “disconnect” with voter intent.

Hoback Junction Water and Sewer District Chair Robert Frodeman said his district already has design work underway and anticipated release of matching state funds in April, and that the district planned to advertise construction bids in fall 2025 with construction beginning spring 2026. County Water Resources Coordinator Chris Peltz estimated three near‑term projects (Hoback, Munger Mountain sewer and the Highway 89 North sewer) would need roughly $5,000,000 over the next 18 months and that several additional projects would bring the near‑term need closer to $7,000,000.

Public Works Director Heather Oberholster warned that using a county reserve to bridge the gap now could leave fewer SPET receipts available to fund projects later: if the county advances money from its capital depreciation/future‑use reserve, those internal loans would need to be repaid from future SPET receipts and therefore might reduce available cash for future projects. Treasurer Smits confirmed the capital depreciation/future‑use reserve currently holds about $2,500,000 and said she could bring a resolution if the board wanted the county to use that fund to bridge water needs.

Commissioners debated sequencing and options: some members pressed to allocate more SPET to water now, others favored keeping the draft percentages and using the capital reserve or reallocating overages to water if collections exceed projections. Commissioner Gardner asked the treasurer for a multi‑year outlook; Smits said she will compile a two‑ to three‑year funding outlook after spring break to improve planning for large multi‑year projects.

After extended public comment and staff discussion, the board voted unanimously to continue the SPET allocation resolution to the April 15 regular meeting to allow staff to prepare alternative schedules, consult with affected applicants and provide additional financial detail. Commissioner Macker made the motion to continue; Commissioner Gardner seconded. The board voted unanimously in favor.

Why this matters: SPET funding supports multiple capital priorities across the valley. Water‑quality projects cited by speakers are time‑sensitive, tied to matching state funds and to public‑health considerations; advocates and some commissioners argued the county should prioritize those projects where construction is shovel‑ready.

What comes next: Treasurer Smits and county staff will return with a multi‑year outlook, options for using the capital depreciation/future‑use reserve and proposed sequencing for any reallocation if the board chooses to adjust draft percentages. The board scheduled the SPET allocation for further consideration at its April 15 regular meeting.

Votes at a glance

- Motion to continue consideration of the 2022 SPET year‑three allocation to April 15, 2025. Motion: Commissioner Macker. Second: Commissioner Gardner. Outcome: approved unanimously (five commissioners present).