The Englewood Water and Sewer Board voted Jan. 13 to recommend that City Council approve a $3,000,000 interfund loan from the sewer enterprise fund to the storm drainage (stormwater) enterprise fund to cover near‑term obligations and operations while staff pursues a planned reimbursement from Mile High Flood District.

City staff said the stormwater fund faces immediate cash‑flow pressure after large final invoices and retainage were paid late in the year for capital work including the South Englewood flood reduction project and Old Hampton Utilities stormwater work. Sarah (finance) told the board that, after those payments and with December revenue not yet posted, the stormwater fund balance was about $300,000 (she said it should appear closer to $600,000 once December revenue is booked) while outstanding obligations and debt service totaled about $2.6 million. Staff requested a $3,000,000 loan to ensure operations and near‑term debt service can be met.

Deputy City Attorney McDermott advised the board that City Charter section 41 authorizes Council to adopt an emergency ordinance when ‘‘necessary to protect public health, safety, or welfare’’ and tied the emergency finding to cash‑flow risks and impending debt service deadlines. McDermott said an emergency ordinance, if used, would allow an earlier effective date than a regular ordinance.

Staff said they had a tentative agreement with the Mile High Flood District to retroactively apply joint funds the district has been holding and to return roughly $8,000,000 to Englewood’s stormwater fund if the Mile High Flood board approves the approach. According to staff, the returned funds would be used to repay the interfund loan when the transfer is completed in spring; staff described the Mile High Flood solution as a one‑time, retroactive match and stressed that the loan is intended as a short‑term bridge.

Board members pressed staff on the cause of the shortfall, noting the stormwater enterprise fund had been managed by Public Works since 2020 and was transferred to Utilities in September. Staff said the obligations predated Utilities’ stewardship and that their more detailed enterprise‑style forecasting revealed the fund’s full exposure only recently. Members also raised equity concerns about using sewer reserves and questioned whether Littleton (a joint partner in South Platte Renew) would be affected; staff said the city’s sewer enterprise reserve would remain above policy minimums after the loan and that the loan would not change the city’s South Platte Renew payments.

After discussion about interest, Chair Moore moved — and the board seconded — a motion recommending Council approve the $3,000,000 loan for one year at a 3% interest rate (the motion text on the record: "I’m making a motion to approve and recommend that council approve an interfund loan from the sewer enterprise fund and the storm drainage fund in the amount of $3,000,000 for a term of 1 year at an interest rate of 3%."). The board voted in favor and the chair announced the motion carried. Staff said the recommendation will be forwarded to Council, where staff anticipates asking Council to adopt an emergency ordinance to enable a quicker effective date.

Next steps: Council will consider the loan recommendation and the possible emergency ordinance; if Mile High Flood District’s board approves the retroactive transfer, staff expect the stormwater fund to receive approximately $8,000,000 in spring and to repay the interfund loan at that time.