Walworth County closes fiscal 2024 with net positive results; finance committee approves year‑end resolutions

The Walworth County Finance Committee on April 24 voted to approve two resolutions to close fiscal year 2024 and to commit year‑end fund balances for future use.

Todd, a county finance staff member who presented the year‑end review, told the committee: "Bottom line up front, we achieved net positive results, which maintain the county's healthy financial position." The committee voted to adopt Resolution 5‑25 closing FY2024 and a companion Resolution 5‑25 committing fund balances; the motion carried after a motion by Karbowski and a second by Schaeffer.

The presentation said the county ended the year with net positive results that preserve the county’s debt‑free status and leave available funds for capital and reserves. Major revenue and expenditure drivers identified for the variance to budget included higher investment income, stronger fourth‑quarter sales and use tax and real estate transfer receipts, and lower than budgeted wages and benefits in several departments.

Investment income was a major contributor: the presenter said roughly $4.6 million more was collected than budgeted, driven in part by unrealized gains on longer‑term investments and higher yields as the county locked in 3‑ to 5‑year maturities averaging above 4 percent. The packet presented a proposed allocation that directs a portion of interest earnings to departmental reserves per county ordinance.

On the revenue side, the presenter noted that the county’s half‑percent sales tax returned about $1.6 million and real estate transfer tax added roughly $200,000, with a strong fourth quarter supporting transfer tax returns. The presenter cautioned that 2021–2022 were outlier years and that volatility remains.

On expenditures, the county returned about $4.4 million in wages and benefits across departments, driven by vacancies and lower use of crisis pay at Lakeland Health Care Center and other staffing gaps; the Sheriff’s Office saw increased overtime but still contributed to overall payroll underspending. Professional services returned about $2.3 million, largely from transportation and some medical and specialized care services that were not used at budgeted levels. Roadway supplies, notably salt purchases, returned roughly $900,000 owing to a mild winter and cooperative procurement. Contingencies returned approximately $1 million.

The presenter also reviewed prior year budget assumptions and strategic reserves. The committee packet noted a prior transfer of $2,000,000 from the general fund to the property and risk insurance fund earlier this year and a change that raised the insurance fund minimum to $6,250,000. The closing and committing resolutions set up the formal reappropriation of capital and other encumbrances into 2025 and identify funds available for appropriation during the 2026 budget process.

Committee members asked for further detail on specialized care and certain department variances; the presenter described specialized care as residential placements and inpatient psychiatric services, which are high‑cost and often unpredictable. The committee approved the resolutions and requested that staff bring budget allocation proposals during the fall budget cycle.

Plans going forward include using the year‑end results to inform the 2026 budget process and returning recommended allocations to the County Board during the regular budget cycle.