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Highway fund shows negative cash after 2024 overruns; staff proposes deferring seal-coating projects
Summary
Staff told the committee that highway fund 260 ended 2024 with a negative cash balance driven by roughly $476,000 in project overruns and about $580,000 in receivables; to address the shortfall, the department proposes deferring two seal-coating projects and exploring funding transfers and LRIP timing.
Adams County highway staff told the committee on July 10 that the highway fund ended 2024 with a negative cash balance and detailed measures to cover the shortfall, including deferring planned seal-coating projects.
Kyle (staff) summarized the 2024 financial review: "One of the factors is project overruns. That was roughly $476,000 in project overruns. And then receivables, we had about $580,000 in grants that we had not yet received by year end." He said the combined effect contributed to a roughly $1.1 million negative cash position.
To address cash and fund-balance pressure, staff proposed deferring two seal-coating projects (referred to as projects J and O) from 2025 into later years and reworking the capital improvement schedule. "Those are the two projects that we deferred ... those are going to have to be deferred to an alternate year," Pat said, explaining the deferred work will be rescheduled into the 2026–2029 planning window.
Pat and Kyle said the county will identify funding sources and consider transfers into the highway enterprise fund (Fund 700) and will consult auditors to ensure transfers comply with accounting and grant restrictions. "We have to talk about Pat and I and others about what is the proper use of those funds ... we're gonna already talk to the auditors to make sure the enterprise fund can give money to the ... operating fund," Cynthia said.
Committee members raised strategic questions about whether the county should undertake smaller one-mile projects annually or consolidate funds to complete longer segments and avoid repeated mobilization costs. Supervisor Bork warned of repeated mobilization expense: "You're looking at $200,000 worth of mobilization just to come in for each project every year. ... it's just a thought."
Staff also discussed general transportation aids and LRIP timing; Kyle said LRIP allocations for the next cycle are expected to be announced in late September and that LRIP components have differing restrictions. "The Chai d and the Chai s are the most restrictive ... If I, today or tomorrow, fill out my application ... I can move that money down the county z," Pat said, describing how staff can request reallocations through the regional program if needed.
No formal budget reallocation was approved at the meeting; staff said they will return with updated capital-improvement schedules and options for funding overruns and deferred work.
