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Van Bibber Lake board hears RCAP financial guidance, discusses sales tax and utility budgeting
Summary
Mike Novak of RCAP advised the board on depreciation and debt reserve funds and urged a separate utility budget; the board also discussed embedding sales tax into water rates and will consult its financial advisor before any resolution.
The Van Bibber Lake Conservancy District on March 14 heard financial-structure guidance from the Rural Community Assistance Program and discussed changes to how sales tax appears on water bills.
Mike Novak, representing RCAP, told the board the Depreciation Fund should be used for infrastructure replacement and the Debt Reserve Fund should act as a backup for loan payments. Novak confirmed the district currently meets Rural Development account requirements and said an annual report is nearing completion. He recommended the board consider a separate utility budget to improve clarity around water and sewer finances.
Board members discussed whether to show sales tax as a separate line item on customer bills or to embed the tax into published rates. Members noted the district must continue remitting sales tax to the state regardless of presentation and that embedding tax into rates would likely require a future formal resolution and additional guidance from the district’s financial advisor, Janet.
The board agreed to coordinate with the financial advisor to confirm compliance and next steps before making policy changes. The SRF/grant update in the meeting also noted the district was not selected for 2026 funding, reinforcing the need to review budget structure and alternative funding sources.
