Snowqualami council approves budget amendments, $4.9M interfund loan to bridge utility cash flow and awards Sandy Cove restoration contract

The Snowqualami City Council on June 22 approved a package of budget adjustments, an interfund loan to cover near-term utility capital cash needs and the construction contract for the Sandy Cove Park riverbank restoration project.

By unanimous vote the council authorized a resolution allowing the non-utility capital fund to lend up to $4.9 million to the utility capital fund at an estimated 3.91% interest rate as a bridge until planned external financing in 2027. Director Bouty told the council the internal loan would keep interest paid in-house, avoid immediate issuance and underwriting costs, and reduce short-term debt-service pressure compared with a higher-cost external borrowing.

Budget Manager Jana Walker summarized a multi-part budget amendment package the evening described as a $9,358,478 adjustment to account for capital projects and emergent repairs; not all of that amount represents cash leaving the city, she said, and roughly $4.1 million is expected to be disbursed. Specific items discussed included a $1.9 million increase for a railroad crossing project (largely grant-funded), a $438,199 appropriation to expand a business-park lift station (the hospital is expected to pay contract costs), and several smaller transfers and emergent facilities repairs.

On parks business the council awarded the Phase II Sandy Cove Riverbank Restoration and Outfall construction contract to Goodfellow Brothers LLC. Parks staff and the city's CIP manager explained the work is time-sensitive because in-river construction must occur during a fish-window (roughly July 15—Oct. 1). Delaying the work, staff said, would likely increase costs and risk further erosion to parkland and stormwater outfalls. The project increase for Sandy Cove (including historical true-up and internal labor) was described as $1,627,793; staff proposed specific offsets within the utility CIP to keep biennial appropriations within the totals used for the utility rate study.

Council members expressed concern about timing and cost overruns but supported moving forward to protect park infrastructure and to keep the city within the parameters of its multi-year rate and capital plans. Council voted unanimously to approve the interfund loan resolution and to award the Sandy Cove contract.

Next steps: administration will execute the approved contracts and incorporate the amended project appropriations into the city's capital accounting; the interfund loan will be repaid or rolled into planned 2027 financing when market conditions allow.