Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
City staff find restricted water‑share fund and leftover capital outlay money; council discusses options
Summary
Staff told the council they found a restricted water‑share account with about $47,000 and a capital outlay account with about $24,000; council discussed contract restrictions, possible interfund transfer hearings and renegotiation with the service district.
City staff told the council on May 14 that routine bookkeeping uncovered two legacy accounts whose allowed uses require review.
A staff member reported the discovery of a water‑share account holding roughly $47,000 that had been set aside over decades by a dollar taken from utility accounts; that money, the staff member said, was restricted by an earlier council vote "to purchase water shares as they come available." The same staff update flagged a capital outlay account with about $24,000 in leftover grant funds.
Council members asked whether the city has authority to reassign restricted funds if a service‑district contract or other agreement prevents purchasing shares. The staff member and other council members recommended reviewing the service‑district contract and, if necessary, pursuing an interfund transfer hearing or renegotiating the restriction with the district. As one participant said in the meeting, the city may need to "have an interfund transfer hearing" or try to renegotiate the contract terms to allow alternate uses of the restricted money.
Council members emphasized the potential value of even modest annual purchases of water shares to improve the city's standing, but they did not take a final vote on reallocating the funds during the meeting. Staff said they will complete a contract review and present options for next steps.
Representative quotes from the meeting:
"There's about 47,000 in that, and that was set aside," the staff member said, describing the water‑share account.
"I haven't run entirely through it yet," Amanda said when asked about the contract language that might constrain the funds, indicating staff would complete the review.
Next steps: Staff will review the service‑district agreement to determine whether the funds are legally restricted and, if necessary, schedule the interfund transfer hearing or seek renegotiation with the district. Council asked staff to bring concrete options back to a future meeting.
