Boonsboro council forgives $1.808 million internal sewer fund loan

The Boonsboro Mayor and Council voted on April 14, 2025 to forgive the remaining $1.808 million that the town’s Sewer Fund owed to the General Fund. Assistant Mayor Tony Nally moved the measure and Council Member Eric Kitchen seconded; the motion carried.

The action followed discussion of past audit findings. Town Auditor Jason Knode, referenced during the meeting, told the council at an earlier audit review that “it would be in the best interest of the Town to formally discuss what to do with the $2,808,309 Sewer Fund debt to the General Fund,” noting the long-standing nature of internal borrowing and the need for a plan. Council documents and discussion at the April 14 meeting show $1 million had been repaid earlier, leaving the $1.808 million balance the council forgave.

Assistant Mayor Nally said the forgiveness would clean the slate for the Sewer Fund and that going forward any internal loans to the Sewer Fund should be repaid as soon as possible. The council did not specify additional repayment conditions or offsetting entries in the minutes beyond approving the forgiveness motion.

Town Manager Rachel Souders noted the Sewer Fund still carries $350,000 in the fiscal-year budget labeled “Debt Service – General Fund” and recommended the council consider priorities for that funding; staff noted a possible purchase of a sewer router for roughly $290,000 but council members asked for further revenue review before committing funds.

The council recorded no further procedural conditions in the minutes; no public hearing or outside creditor action was recorded. The council did not provide a roll-call vote tally in the minutes for this motion beyond “motion carried.”