Finance reports: 2024 year-end reconciliation shows vacancy savings, higher interest earnings; ARPA fully obligated

Chautauqua County finance staff presented the Audit & Control Committee with unaudited 2024 year-end reconciliations, an investment-portfolio review and an update on American Rescue Plan Act (ARPA) projects.

Finance director Katie Crow and budget director Jen Swan told the committee the current unaudited variance to the amended 2024 budget is roughly $3.93 million after adjustments. Notable items included sales-tax surplus, mortgage-tax and PILOT variances, and a reported increase in uncollected property-tax balances that the county will pursue administratively. County finance identified material vacancy-savings amounts in several departments and said those savings and contingency balances reduced the net 2024 draw on the unobligated fund balance. The county expects to reduce the vacancy-savings assumption for the 2026 budget cycle because hiring conditions have eased.

Investment results: The county reported better-than-expected investment income in 2024. Crow said the county locked in higher yields where possible and used a municipal liquidity pool to keep operating cash invested while preserving daily liquidity. Interest earnings dedicated to capital totaled about $1.47 million and will be returned to capital reserves per county policy.

Safety-net and social-services pressures: County staff and committee members noted rising safety-net costs (temporary assistance, emergency housing and related social-service outlays). Officials said safety-net growth that persisted following the COVID-era changes has material fiscal consequences because local taxpayers pay a large share of long-term safety-net costs (county share cited at roughly 71% for some long-duration cases). The county flagged that the safety-net trajectory requires close monitoring as Medicaid and federal-aid risks evolve.

ARPA update: Blake Ehrig, administrative services director, reported that the county has obligated the full $24,600,000 of ARPA funds required by Treasury rules as of the 12/31/2024 report and that only 28 projects remained open at that date; since year-end eight of those projects have closed and roughly 20 projects remain open, with a small number of contracted items extending into 2026. Ehrig said the county submitted the required reports to Treasury and is tracking closeout timelines.

Committee implications: Finance staff said they will continue to monitor uncollected taxes, safety-net spending and vacancy-savings assumptions as they develop the 2026 budget. The investment strategy will continue to balance liquidity needs with yield opportunities and the earnings will remain dedicated to capital projects.