Marshall County Regional Sewer District approves final fund transfers, rejects easements and readies dissolution

The Marshall County Regional Sewer District voted during a meeting to transfer its remaining funds to Star Financial, reject previously submitted easements tied to a stalled project, hand district records to the county and authorize counsel to file a stipulation dismissing an appeal that would dissolve the district once an insurance reimbursement is received.

Treasurer Brenda Myers told the board the district’s ending balance was $2,010,613.60 and that current claims totaled about $33,003.16. "They will have treasurer's checks so we can wire the balance of the money today to Star Financial," Myers said, indicating the transfer would reduce the district balance to zero. The board approved the financial report, claims and the transfer by voice vote.

Legal counsel (Chris Spear) updated trustees on a pending reimbursement from Philadelphia Insurance Company related to the Billwood Woodward v. Thomas McFadden matter and said, "We expect that we will get that reimbursement not later than February 17." He asked the board to authorize his office to accept the reimbursement into the firm’s trust account, allow the funds to clear (he estimated roughly three business days) and then issue a check to the county. Counsel and trustees discussed timing; counsel said dispersal to the county could occur "on or about the February 20," assuming normal clearing times.

Counsel also advised that easements requested from potential users during planning for PSA 1 were never countersigned or recorded and therefore do not affect property rights. He asked the board to "reject all the easements received by the district" so there would be a clear public record, and the board approved the rejection.

The board approved a motion to authorize delivery of compiled district records — assembled by consultant JPR — to the county attorney. Counsel said that, together with transferring funds and stipulating to dismissal of the appeal, the actions would return the original court order to effect and "effectively dissolve the district." He requested authority to stipulate to dismissal of the pending appeal once the reimbursement is received but no later than Feb. 28, 2026; trustees voted to proceed as described.

Procedural items on the agenda included corrections to prior meeting minutes (removing an incorrect name and replacing it with the correct attendee), and approval of the Jan. 29, 2026 minutes. The meeting concluded after routine wrap-up and adjournment.

What happens next: Counsel will accept and, after bank clearance, transfer the insurance reimbursement to the county and file the stipulation to dismiss the appeal. When the court enters the dismissal and the original order comes back into effect, the district’s dissolution will be final per counsel's explanation.