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Gilbert council reallocates bond funds to North Water Treatment Plant, approves water development fee resolution
Summary
On April 21, 2026, the Gilbert Town Council voted 7–0 to adopt Resolution No. 4655 to reallocate bond funds to the North Water Treatment Plant project and to address internal accounting for water system development fees so future water-right purchases remain fundable.
Gilbert — The Gilbert Town Council unanimously approved a resolution on April 21 to reallocate previously issued bond funds to the North Water Treatment Plant and to retire an internal loan in the water resources system development fee (SDF) fund.
Kelly, a town staff presenter, told the council that the town had issued bonds in 2022 to cover several water projects, including a planned purchase of water rights that has been delayed because federal approvals have not arrived. With a timeline for bond spending approaching and no near-term federal approval, staff recommended using the bond funds on the North Water Treatment Plant, which meets both bond and SDF eligibility criteria.
The adopted action directs staff to apply the bond funds to the North Water Treatment Plant capital work and to pay down an existing internal SDF loan tied to a 2018 water purchase so SDF cash remains available for future water-right projects. Kelly said system development fees are regulated by state statute and must be used for new capacity and proportionate growth-related capital, not for operations or routine maintenance.
The council voted 7–0 to accept the staff recommendation and adopt Resolution No. 4655. Mayor Scott Anderson confirmed the motion carried by unanimous vote.
The decision keeps both funding pools intact by using bonds where they are permitted and moving SDF receipts to cover the designated SDF projects in the future, according to the staff presentation. The resolution also aims to minimize long-term cost impacts by addressing the internal loan before allocating SDFs to smaller cost-recovery gaps.
Public comment included residents expressing general support for preserving water resources; a brief public comment period followed the staff presentation before the vote. The council did not add conditions to the action; staff will return with any required implementation steps or reporting as appropriate.
The resolution and background materials were presented as Item 20 on the April 21 agenda; the motion passed 7–0. The council record indicates follow-up accounting steps to ensure compliance with state SDF rules.
