Council authorizes $108,000 transfer from pressurized irrigation fund amid divided framing

Highland City Council voted unanimously on June 16 to authorize a $108,000 transfer from the pressurized irrigation (PI) enterprise fund to the general fund for fiscal year 2026–27.

Staff explained the transfer covers the city’s cost for irrigation water used on parks and open space, an amount historically included in the budget but now explicitly shown for transparency and statutory compliance. Erin and David Mortonson explained that state law requires public notice to utility users and a line‑by‑line accounting in the PI fund document; staff said the state auditor’s office confirmed the city’s notice and budget schedule met legal requirements.

Council debate centered on whether the transfer is functionally a subsidy or a user charge. Council Member Campbell argued, “It’s not a tax because we don’t tax the schools. We don’t tax the churches,” framing the transfer as the appropriate allocation of a utility charge. Council Member Courtney and Council Member Rice expressed concern about perception and recommended early study for next year; Council Member Rice preferred keeping more funds in the PI fund for meter replacements.

After discussion, Council approved the resolution authorizing the transfer. Staff said the transfer currently represents about 3.5–4% of PI expenditures; staff will include the transfer and related notices in utility billing communications.

What happens next: staff will mail required notices to PI customers, reflect the transfer in the interim budget and monitor PI fund balance, and the council may revisit the policy during the next budget cycle.