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Budget committee moves to pursue Banner Bank loan to cover shortfalls
Summary
Committee staff proposed a Banner Bank loan of roughly $45,000 (with ~ $10,000 in fees and $50,000 of debt service shown in the general fund) to cover general- and sewer-fund shortages; the committee agreed to bring a loan resolution to city council for formal approval.
The Westfir Budget Committee discussed adding a Banner Bank loan to the 2026–2027 budget to cover shortfalls in the general and sewer funds. Nicole, the committee’s budget lead, said the draft shows a $45,000 loan with an estimated $10,000 in bank fees and that she used a 10-year amortization in the draft because it reduced annual interest payments but carries a rate reset after five years. "It's 6.5, so not low," she said of the quoted rate.
Nicole told the committee she recommended moving forward with the loan now so the city can close funding gaps and then, if an exchange of county highway funds becomes available later, pay the loan off early. Committee members asked whether a council resolution would be required; Nicole said the city council will have to approve the loan and that bank paperwork would be prepared before that council meeting. The committee did not take a formal loan vote at this meeting.
