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Council hears plan to loan capital funds to water fund for Snow King Estates waterline
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Summary
Staff proposed an interfund loan from capital to the water fund to complete the Snow King Estates waterline (~$1.3M) while rate increases and longer-term work reestablish enterprise reserves; council asked for more narrative and schedule details.
At the April 13 budget review, staff told the council the water enterprise fund’s ending balance is below targets after recent capital projects and recommended an interfund loan from the capital fund to complete a necessary Snow King Estates waterline project.
"The recommended budget includes an interfund loan from the capital fund to ensure an adequate fund balance and funding to complete necessary water projects while we work to reestablish the water fund balance through rate increases," the Town Manager said. Staff described the Snow King Estates pipeline as roughly a $1.3 million project and noted proposed water-rate adjustments would add roughly $730,000 in revenue to the utility’s budget.
Public Works noted the Snow King work is essentially the final 5% tying into prior work; the town previously completed the larger portions of the water work in 2018. Councilors pressed for a clearer narrative on fund-balance trends and how to avoid surprise capital draws in the future. Manager and staff promised a deeper water-fund briefing with consultants and a proposed schedule for repayment terms if the council approves a loan.
No formal loan was approved at the meeting; staff presented the loan as a recommended option and a policy question for council: whether to treat the interfund transfer as a loan with interest and repayment schedule or as an unrestricted supplement.
