Virgin — During the May 14 work session, councilors walked through grant and loan items that remain incompletely coded in the posted budget and asked staff for clarity ahead of the public hearing.

Grants and matching requirements

Staff reported the town had received a competitive grant for a BMX track (the amount discussed in the session was $53,000) and that the town must provide a local match; councilors agreed that the grant and matching expense must be added to the budget so the public packet reflects the total project cost.

Groundwater study loan

Staff identified a $60,000 loan line (coded in the draft as a loan proceeds account) tied to a groundwater protection study. At the meeting staff said the full project totals about $120,000; the town’s understanding is that the Water Conservancy District would cover roughly $40,000, the town would pay about $20,000, and the remaining $60,000 would be financed via the noted loan. Staff asked the council to confirm where the loan proceeds should be shown and to plan for eventual repayment when invoices arrive.

Town hall / Townsquare loan and payoff discussion

Councilors discussed the long‑term loan connected to the purchase of the former church (Heritage Town Square/town hall). Staff said the annual payment to the bank is approximately $171,544 (principal plus interest) and asked for authorization to request a full payoff amount from the bank so the council can evaluate whether paying the loan early makes fiscal sense. Councilors noted the loan’s interest rate is low and that, if payoff strengthens the town’s overall borrowing capacity (by returning funds to the lender for re‑lending), the town should weigh that public benefit against the immediate use of general‑fund reserves.

State liquor allotment and accounting codes

During the budget review staff raised a question about the town’s state liquor distribution (a recurring allotment in some towns). Staff said the town receives something coded in their general ledger but that it is not showing up as a discrete revenue line in the community’s posted budget; they will seek guidance on state coding and distribution so that the revenue (or lack of a recurring distribution) is accurately presented.

Next steps

- Staff will post the BMX grant and matching expense and confirm where the groundwater loan proceeds should be coded.

- Staff will ask the bank for a loan payoff amount for the town hall loan and return to council with analysis of the fiscal impacts of payoff versus continuing scheduled payments.

Ending

Councilors reiterated the need for all grants and loans to be clearly coded and explained in the budget packet so the public hearing reflects accurate project totals and repayment obligations.