In just a few months, Star Valley will write a $775,000 check for the local water company and pour at least another $75,000 into start-up costs.
With such large expenses on the books, the Star Valley Town Council will get an update on where town finances are at a meeting Tuesday.
The 6:30 p.m. meeting will also include discussion on the March 13 home rule election, a proposed water ordinance and ending a well agreement with a family.
The town plans to take over the Payson Water Company in Star Valley from Brooke Utilities on May 1 after paying outright for the 360-hookup system.
Town Manager Tim Grier said the town has the money needed to finance the purchase, but doing so will affect the budget.
Financing the purchase with a government loan would have upped the cost long-term, something the town decided against since it has more than $2 million in the bank and a “rainy day” fund.
Grier and town finance manager Chancy Nutt have given the council quarterly finance reports for some time. When big purchases come up, the council can decide intelligently if it is feasible, Grier said.
“We want to keep the council updated and with the tools they need to make good decisions,” he said.
On the topic of water, the council will discuss in executive session ending a well agreement with Chris Benjamin. The Benjamin family donated a well on their property to the town five years ago for fire suppression use.
Per the agreement, the town could only use water from the well for fire use, Grier said.
Five years has passed and the town never used the well. The Benjamins have asked for the well back and to end the agreement, he said. The Feb. 7 meeting will be held at Star Valley’s town hall, 3675 E. Highway 260.