Jefferson County posts roughly $3 million general fund surplus; board approves large carryovers and targeted budget fixes

Jefferson County officials on March 11 reported stronger-than-expected 2024 financial results and approved budget amendments to move unspent funds into 2025. Chief Financial Officer Mark Riser told the Board the county ended 2024 with a materially positive result in the general fund — driven mainly by a delayed $2 million disbursement to the Live Local development fund, higher interest income and unfilled staff positions — and presented carryover recommendations for the Board to ratify.

Riser said the county’s general fund recorded “almost a $3,000,000” gain for 2024 and attributed that to three principal causes: the $2 million Live Local payment to Thrive ED that did not occur in 2024 and is planned for 2025; stronger-than-budgeted interest and investment returns; and lower wage and benefit spending due to vacancies (about $2.82 million under budget, with roughly $2 million of that tied to vacancies in the sheriff’s department). Sales-tax receipts exceeded budget by about $500,000, Riser said, but he cautioned he does not expect that pace to continue in 2025.

The Board then took two formal budget votes tied to Riser’s presentation. A resolution to transfer $27,509.76 from contingency to cover department deficits passed on a recorded vote (29 yes, 1 no). A separate carryover resolution authorizing departments’ unspent 2024 appropriations to move into 2025 passed on a recorded vote (29 yes, 1 no). Finance staff said a total of $46,773,757.21 was proposed to carry forward from 2024 to 2025, of which $21,935,422.21 required County Board approval.

Riser reviewed how proceeds from prior land sales had been allocated and how those allocations remain on the books: $1,000,000 to the Live Local development fund (Thrive ED), $1,000,000 for restoration of general fund balance, $500,000 for strategic plan initiatives, $500,000 for PACE (preservation) program, $200,000 for improvements to the parks building, and $166,477 preserved for closing costs. He said the $1 million Live Local distribution remains planned but will occur in 2025 as part of the approved carryovers.

On capital projects, Riser said the county’s capital projects fund finished 2024 with about $900,000 of remaining fund balance and that approximately $1.2 million is needed to close out the courthouse/building project, prompting a recommended $500,000 transfer from the general fund into the capital projects fund. He said all bond proceeds have been spent and ARPA funds are fully expended for the project; the remaining capital balance is primarily general-fund transfers the board must authorize.

Riser walked the Board through the county’s fund-balance policy application and working-capital targets. He said the county’s working capital policy target (three months) is about $26.6 million and that the county is roughly $3 million under that three-month goal but comfortably above the two-month required minimum. Riser noted the county had approximately $41 million in total fund balance (as presented to the Board) before adjusting for nonspendable, restricted, committed and assigned amounts.

Department-level results cited by Riser include: the health department finishing roughly $65,000 positive (noting some short-term relief from ARPA funds that will not last indefinitely), human services finishing about $108,000 positive, the highway shop finishing about $825,000 positive largely because of an end-of-year transfer for the Highway D bridge project, and the fleet fund finishing about $130,000 positive because a planned vehicle purchase was deferred to 2025.

Riser also outlined carryover requests and specific amounts staff recommended be carried forward to 2025. Examples he listed to the Board included $500,000 for strategic plan initiatives, $32,000 for a financial education center project, $50,000 for EMS planning (potentially reimbursed by state grant), roughly $200,000-plus for highway-site remediation (pending negotiation with a private party), $70,000 to restructure alcohol and drug treatment-court work, $30,000 for a Fair Park feasibility study plus a $90,000 capital carryforward for Fair Park capital needs, and multiple law-enforcement and technology carryforwards (including $94,000 for sheriff squads and $40,000 for CAD software). Riser noted the county’s interurban trail carryforward of about $121,000 should complete in 2025 but that a remaining funding gap of roughly $250,000 exists for parts of that project.

Looking ahead, Riser told the Board he expects sales-tax growth to slow (December collections declined from about $1,000,000 last year to about $800,000 this year), that he expects Federal Reserve interest rates to remain steady at least through the next meeting cycle, and that upward pressure on wages and on health-plan premiums is likely in the near term.

After Riser’s presentation, supervisors had a few clarifying questions about bidding on park-shop work and other line items; the CFO said some work is being done in-house and thus was not competitively bid. The Board approved the carryovers and the contingency transfer in separate roll-call actions.