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Council approves interfund loan to start water service line replacements
Summary
The Donald City Council adopted Resolution 610-26 authorizing an interfund loan from the Sewer Fund to the Water Fund to begin a water service line replacement project; the loan carries 1% annual interest, payable in a lump sum at loan end. Vote: 6-0-0.
The Donald City Council on Feb. 10 adopted Resolution 610-26 to allow the Water Fund to borrow from the Sewer Fund to begin a water service line replacement project. City Manager Eric Underwood explained the measure and said the loan will carry 1% annual interest, to be paid in a lump sum when the loan is repaid.
Councilors approved the resolution unanimously, 6-0-0. The approval authorizes the city to begin replacement work using internal funds while preserving long-term accounting via the interfund loan. The council did not specify loan term dates in the minutes.
Council discussion included clarification of the interest rate and repayment mechanism; no public opposition or amendments were recorded. The motion to approve was made by Councilor Coffman and seconded by Councilor Hungate.
