RESOLUTION AUTHORIZING TRANSFER OF USDA-RD SHORT TERM ASSET RESERVE FUND TO THE WATER FUND TO COVER EMERGENCY REPAIR COSTS FOR WELL 12

Resolution #24-2026 — 2026-05-26

WHEREAS

on Monday, April 20, 2026, a low-level alarm was triggered at the water tanks, caused by the wells not producing enough water to keep up with demand
Smith Well Drilling, Inc., responded to our emergency request to assist with the investigation of the wells and well pumps and motors to determine the problem
Smith Well Drilling, Inc., lifted the pump and motor from Well 12 and discovered a hole in the pump at the connection of the pipe. Replacing the pipe did not fix the problem so a new pump and motor was purchased and installed the same day
the expenses for Well 12 related to this emergency are as follows: Smith Well Drilling, Inc. $2,851.23 and D&S Pump & Supply Co. $2,075.45
the Village of Red Hook maintains a USDA-RD Short Term Asset Reserve Fund in line with requirements of the USDA-RD loan to ensure there are funds on hand for short term asset repair or replacement such as these
this fund is maintained as a separate account, funded by the Water Budget at $25,000 each year; and has approximately $151,570 as a balance

the Village Board of Trustees approves the use of funds from the USDA-RD Short Term Asset Reserve Fund to pay for these expenses
the Treasurer is directed to transfer $4,926.68 from the USDA-RD Reserve account and pay these two invoices