MINUTES
Of the
MEETING OF THE COMMISSIONERS
Of the
BUFFALO RAPIDS IRRIGATION DISTRICT NO. 2
Terry, Montana
July 8, 2026
The Third Regular Meeting of the members of the Buffalo Rapids Irrigation District No. 2 at Terry, Prairie County, Montana, was held on the Eighth day of July, 2026 at 1:30 p.m.
There were present and participating at the meeting:
Jackson Dion
Barry Rakes
Lance Kalfell
Also present and participating were: Jessica Schott, Treasurer, and Tim Kortum, Secretary.
President Jackson Dion called the meeting to order at 1:18 p.m., stating that all necessary and advisable business be conducted during this time and that notice had been received by each Board Member.
Thereupon, President Jackson Dion announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business.
The Minutes from the June 10, 2026, Regular Board Meeting were approved, with no corrections or additions, on a motion made by Lance Kalfell and seconded by Barry Rakes at 1:19 p.m. All in Favor. Motion Carried.
FINANCIAL REPORT:
Jessica Schott presented current budget figures which included payroll and expenditures through July to all Board members for their review. Ms. Schott reported that expenses for July include the Fiscal Year 2024 and 2025 Year-End Adjustments and Review from Mehling Tax and accounting, as well as the invoice for Strom & Associates’ Fiscal Year 2025 audit services. Ms. Schott also reported that an additional transfer authorization was signed with the June 30, 2026 payroll pay cycle to pay the renewal of the 2026-2027 property/auto/liability package premium with Grundy/Philadelphia in the amount of $50,926.00; an increase of $2,613.00 from 2025. A list of invoices to be paid was submitted and a form for the Prairie County Treasurer to transfer funds in the amount of $72,904.56, to cover payroll and invoices were signed. July 15th estimated payroll: $16,435.94, July invoices: $38,732.09, and July 31st estimated payroll: $17,736.53. This transfer authorization was approved on a motion made by Barry Rakes, seconded by Lance Kalfell at 1:34 p.m. All in Favor. Motion Carried.
Ms. Schott reported that second payment assessments were received from Custer and Prairie Counties in June, and that investment interest disbursements for May and June were received in June prior to the County’s fiscal year end on June 30th. Ms. Schott then announced that the insurance claim filed for the August 10, 2025 breakdown of the Fallon River No. 1 pump had been paid and closed for the total amount of the loss less the District’s $1,000. A check for $125,524.06 was received and deposited on June 30, 2026.
Ms. Schott then presented the investment statement, which was signed to invest the remaining monthly District No. 2 cash balances in the amount of $696,146.20 with the Prairie County Investment Pool. Warrant numbers from June 12, 2026 to July 9, 2026 range from 29680-29679.
The treasurer's report was approved at 1:37 p.m. on a motion made by Lance Kalfell, seconded by Barry Rakes. All in Favor. Motion Carried.
Jessica Schott stated that the Annual Financial Report for Fiscal Year 2025 had been submitted to the Montana Department of Administration. Ms. Schott additionally reported that the audit for Fiscal Year 2025 had been completed by Strom & Associates with no findings reported. Ms. Schott relayed to the District No. 2 Board the auditor’s recommendation for employee charge accounts to be paid within 90 days of the charge being invoiced to prevent aging accounts receivable. Ms. Schott also informed all present that the threshold for a required audit had been increased to gross revenues of $1 Million within a fiscal year. She explained that Strom & Associates would offer an Agreed-Upon Procedures engagement in the event the District does not gross revenues in a fiscal year that meet the threshold requiring an audit. An AUP would provide a more generalized review of the fiscal year’s accounting at a rate less than the full audit.
At 1:51 p.m. Jessica Schott presented to the Board Assessment projection worksheets to assist the Buffalo Rapids Irrigation District No. 2 Board in their review of the financials for the 2027 water season assessments. After much discussion and consideration, the 2027 Operating Year assessments are set as follows. The amount per acre will remain at $65.00 per acre.
O&M = $54.00
EQUIP RESERVE = $5.00
SYSTEM REHAB = $6.00
TOTAL = $65.00
At 2:03 p.m., on a motion made by
Lance Kalfell, seconded by Barry Rakes, it was RESOLVED,
To assess $65.00 per acre for the 2027 Operating Year Assessments for Buffalo Rapids Irrigation District No. 2.
The 2027 Water Overage rate is set as follows.
The Overage Fee will remain at a rate of $22.00 per acre foot. At 2:04
p.m., on a motion made by Barry Rakes and seconded by Lance Kalfell, it was
RESOLVED,
That the 2027 Water Overage Fee for Buffalo Rapids Irrigation District No. 2 will be a fee of $22.00 per acre foot. All in Favor. Motion Carried.
The Buffalo Rapids Irrigation District No. 2 Board then had
a brief discussion regarding the insurance claim payment for the repairs of the
Fallon River No. 1 pump and motor, confirming that the invoices for repairs had
been paid directly from the Cash O & M Operating account and no money had
been transferred from reserve accounts to cover the costs. At 2:07 p.m., on a motion made by Barry Rakes
and seconded by Lance Kalfell, it was RESOLVED,
To transfer the $125,524.06 claim payment from Philadelphia Indemnity Insurance Co. for the August 10, 2025 breakdown of the Fallon River No. 1 pump and motor from District 2 Cash O & M to the System Rehab reserve account.
MANAGER’S REPORT:
Mr. Tim Kortum informed all present that all divisions have been fortunate with recent rainfall and have been able to run fewer pumps, due to decreased demand for water.
Mr. Kortum then reported that he was looking to trade the District’s John Deere 120 backhoe in on medium sized backhoe to replace it. He explained this need had been incoming for a while due to ongoing issues, and that the machine would require extensive repairs soon. He expressed the opinion that the District’s money would be better spent replacing the machine rather than continuing to try to repair the 120.
Tim Kortum additionally announced to the Buffalo Rapids Irrigation District No. 2 Board that he was making plans to retire from his position as the District Manager at the end of December, 2026. He suggested that the Board begin looking for a suitable replacement for the District Manager position to allow time for training prior to his departure.
The meeting was adjourned at 3:05 p.m. on a motion made by Lance Kalfell, seconded by Barry Rakes. All in Favor. Motion Carried.
ATTESTED:
________________________________ ____________________________________
Tim Kortum,
Secretary Jackson
Dion, President
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