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Commissioners debate reserve‑accumulation practice, consider capital funds and tightening outside‑agency funding
Summary
Commissioners questioned decades‑long practice of accumulating reserves outside the formal budget and discussed creating transparent capital outlay funds; some members recommended scaling back or pausing non‑mandated outside agency funding.
A prolonged discussion at the July 23 Pennington County commission meeting focused on the county’s longstanding practice of building reserve accumulations outside of line‑item budgets and how the practice affects transparency and the use of cash for capital projects.
Commissioner Durr urged a change in practice: “This practice of budgeting ... I don't want those and I have talked to you know departments about this and what I would like to see is ... if we knew in this fiscal year ... that we were going to purchase a jail transport bus ... let's just budget for it and so let's put it in the budget so we can have a conversation about it.” Durr said reserve accumulations totaling about $11,000,000 are being tracked separately and then expended later via budget supplements.
Staff and other commissioners proposed alternatives. Jordan Ebb said the board could set up separate capital outlay funds and transfer cash from the general fund into those funds so the transfers and balances appear in the budget and financial statements rather than only in an auditor’s internal tracking. “You could set up a separate fund specifically dedicated towards capital outlay projects,” Ebb said; “you could set up a fund where you can allocate … you’re gonna build up this reserve fund but it's gonna be in. You create a fund for that and you set that up and then when you set up that fund … then you can say at that point in time what I'm allocating these dollars for.”
Commissioner Durr also proposed reconsidering funding levels for non‑mandated outside agencies and said he was “down to looking at 0 funding from me on those outside entities with anomalies,” while noting the library levy and statutorily required domestic violence funding would require discussion. Commissioner Roskinek urged a more gradual approach: “maybe we should consider taking baby steps and not slamming any doors in front of people's faces.”
No formal vote was taken to end the reserve accumulation practice. Staff was asked to draft options for the next meeting, including establishing dedicated capital funds, clarifying which outside agencies are mandated by statute and producing lists that separate mandated from discretionary funding. Cindy, the county auditor, confirmed staff could produce the fund transfers and that the approach would show transfers and balances in the financials.
