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Westfir committee adds interfund transfers, proposes $30,000 Sewer loan for plant maintenance
Summary
The Budget Committee added transfers to shore up the Water Fund and proposed a $30,000 bank loan in the Sewer Fund to repay an interfund loan used for wastewater-plant maintenance; staff said a single loan could cover multiple fund deficits.
City staff told the Westfir Budget Committee that shortfalls in enterprise funds required immediate adjustments on May 19. An Interfund Transfer of $6,300 from the General Fund was added to the Water Fund to address insufficient cash on hand, and a $30,000 bank loan was added to the Sewer Fund to repay a prior interfund loan used for critical wastewater plant maintenance.
"An Interfund Transfer of $6,300 from the General Fund was added to resources to cover insufficient cash on hand," Nicole Tritten said when describing the Water Fund change. On the Sewer Fund, Nicole said the $30,000 loan was added "to pay back an Interfund Loan in the current fiscal year from the Sewer Reserve Fund. The Interfund Loan was necessary for vital maintenance at the wastewater plant."
Nicole told the committee that a single loan arrangement could cover deficits in both the Sewer and General funds and that loan fees would be divided evenly between the affected funds. The General Fund transfer to the Sewer Fund increased from $30,000 to $39,400 to reflect insufficient cash and added debt service.
Committee members asked clarifying questions after a remote member joined; staff summarized prior discussion for the member before continuing. No final loan agreement was recorded as adopted on the minutes; the entries record the proposed additions to the draft budget.
