County finance finds $22 million in excess fund balances; commissioners agree in principle to use nonrecurring funds for capital projects

County finance staff presented a year-end computation of excess fund balances as of Sept. 30, 2024, stating total excess reserves across funds of about $22 million and recommending the board consider using nonrecurring funds for one-time capital projects and debt payoffs. The finance presentation broke the available, appropriable balances into three general categories: the general fund (about $9,000,000), the transportation trust (about $3,500,000) and municipal services (about $1,400,000), with other restricted funds for economic development, tourist development and library enhancement not available for general expenditures. "Overall, the excess fund balances were about $22,000,000," the presenter said. Staff recommended paying off two near-term loans with a combined payoff of about $2,000,000; staff said paying those loans would free roughly $988,000 in recurring revenue in the current year. Commissioners asked for more detail on which loans would be paid; staff said one was a Hancock loan tied to past road projects and the other was a loan for fire equipment/station purchases. A group of proposed capital projects (grant-funded and county-funded) was discussed, ranging from waterline and lift-station projects to park and road design and construction, and staff asked for a consensus that the board supported funding a prioritized list of nonrecurring capital projects from the excess funds. Commissioners voiced general support and asked staff to include one commissioner—s earlier proposed interior remodeling items for Winfield and to proceed with the project list and scope. Why it matters: The board must decide how to allocate nonrecurring year-end funds; staff recommended using some excess to pay off debt to create recurring-budget capacity and the remainder for one-time capital uses to avoid imposing recurring costs on next year—s operating budget. Action and next steps: Commissioners gave general consensus approval to proceed with the proposed capital projects list and to use excess nonrecurring funds for one-time projects; staff will prepare detailed project budgets, CEI/contract awards and project schedules so the board can approve specific contracts and allocations in future meetings. Ending: Staff will return with project-specific contract awards, grant reimbursements status and recommendations for use of the general fund, transportation trust and municipal services balances; commissioners emphasized the distinction between nonrecurring funding and recurring budget items.