Chair opens hearing on $40,000 transfer from utility fund to general fund; residents warned rates could rise if mine revenue stops

The chair called a public hearing June 9 on a proposed transfer of $40,000 from Scofield’s utility fund to the general fund for fiscal year 2026, saying the money would support general town operations and planned improvements.

A staff member told those attending the transfer is intended to cover costs that enterprise (utility) revenue does not typically pay for — payroll, accounts payable, human resources, phones and internet, insurance, building and park maintenance and street lights — and said the move can help keep property taxes lower. “It helps keep our taxes down a little lower,” the staff member said.

The Nut Graf: Town officials described the transfer as a routine accounting move used when enterprise funds (like water and sewer) generate revenue that can subsidize general governmental services. Speakers noted that some fixed general-fund costs — for example street lights and insurance — must come from the general fund. The staff member said the town had checked with the county finance office and was acting under state code to notify the public and make the transfer.

Council discussion and public questions focused on revenue source and risk. A committee member explained the town receives utility revenue through a sewer contract to haul wastewater from a nearby mine and that revenue flows into the utility fund. “We have a sewer contract where we haul wastewater from the mine… and that goes into the utility fund,” the committee member said. Residents pressed officials on what would happen if that revenue stopped: the chair answered, “Your only option is to make up the shortfall with water and sewer rates.”

Speakers also discussed specific budget items and constraints. The staff member said the town pays about $410 a month for street lighting and described planned capital work that would be costly to delay, including an Americans with Disabilities Act ramp at the town building. Council pay was reported in the hearing as $400 per quarter, and participants noted the limited pool of residents available to take on maintenance work, making volunteer substitution difficult.

Several residents raised scheduling and notice concerns that limit public participation; one asked whether meetings could be held at a different time so weekend commuters could attend and volunteer. Staff acknowledged notice timing issues and said they would look into follow-up options.

A council member moved to close the hearing on the proposed transfer; the motion was seconded and passed by voice vote. The chair announced the hearing closed at about 6:30 p.m. The hearing record in the transcript does not show a final council vote on the transfer amount itself during this meeting; the proceeding recorded here was the public hearing and the close of that hearing.

The next procedural step was not recorded in the transcript: the hearing was closed and any formal action on the transfer (a subsequent motion or ordinance authorizing the actual fund transfer) was not shown in the record provided.