3/5/13 Due to new law, county rainy day line item may be capped at $600,000

  • By Nick Sabo
  • March 5, 2013
  • 321
                        
SUMMARY: Line item to help with capital improvements, emergencies The Holmes County Commissioners are saving for a rainy day, but a state law limits the size of the reserve. Commissioners made the first quarterly payment of $49,490.39 into a reserve account line item in the county’s capital improvements budget Monday, March 4. It brings the line item balance to $549,490.39, the line item having been built up to $500,000 last year. The commissioners created the line item in capital improvements because, had it been left in the general fund, it would become part of the carryover at year’s end. Commissioner want to grow a fund that can be applied to capital improvements, as well as serve the county in times of fiscal emergency. However, a state law passed in March 2012 limits the amount that commissioners can deposit into a reserve account. The law caps the line item to five percent of the previous fiscal year revenues or 16.6 percent of expenditures, Holmes County Auditor Jackie McKee said. Last year’s revenues were a little over $12 million. The five percent law means the line item will reach its cap at approximately $600,000. However, the commissioners may draw from the reserve, or abolish it, at any time. Commissioner Rob Ault said he hopes the reserve line item and capital improvements can be built up to the point that capitol improvements can be completed without having to borrow money. The fund can also be used as a reserve to help the county through difficult financial times, Ault said. The $49,490.39 is half of revenues paid to the county from four casinos located around the state. The other half goes toward the capital improvement fund. The casino dollars are paid to the counties every quarter. Last year, the county collected $111,787.58 in two payments. Ault said there are several long-term projects in mind for the capitol improvements fund. The county’s Clinton Street office building needs a new roof and work to the heating system. Several parking lots owned by the county need attention as well, Ault said. In a Thursday, Feb. 28 meeting, commissioners reappointed Jane Graven and Roman Raber to six year terms on the Pomerene Hospital board of trustees. Both Graven and Raber’s term expire Mar. 1, 2019. The next meeting of the Holmes County Commissioners will be held March 11 at 10 a.m.


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