Park County commissioners to revisit nearly $2 million road fund shortfall in July

Park County commissioners on June 18 discussed options for addressing a negative fund balance in the county road fund estimated at about $1.97 million but took no immediate remedial action, voting instead to revisit the issue in July.

County staff presented the figures and options during a budget workshop, telling commissioners that the audit shows about $1,958,000 and that, after accounting for inventory, the amount to consider is roughly $1,970,000. The staff member said they had “reached out to the auditor and talked to them about possibilities, for courses of action.” The presentation listed options including obtaining a loan, selling equipment to repay the internal loan, forgiving the internal loan by commission resolution, or transferring unrestricted PILT (payment in lieu of taxes) funds to cover the shortfall without moving restricted road funds.

The matter drew public comment and several commissioners’ questions. Resident Tim Miller told the board, “you’re looking at the problem the wrong way. It’s not about paying back a loan. It’s about spending too much money that you don’t have,” urging stronger departmental spending controls. Commissioners Collins, Vermillion and Woods discussed timing and the legal/accounting limits on moving funds; commissioners generally expressed that the county has the money internally but wished to correct the appearance and accounting treatment flagged by the audit.

Staff described numerical options in more detail. One scenario presented estimated that selling equipment and other adjustments could reduce the balance so the road fund would still owe about $300,000; staff said that remaining amount would “work out to $40,000 a year to pay back.” An alternative amortization example in the materials showed an annual budgetary adjustment of about $255,000 under a different repayment approach. The staff member emphasized that road funds are restricted and cannot be moved directly to cover the internal loan, but PILT funds are not restricted and could be directed by commission action.

No final remedy was approved at the workshop. Commissioners agreed they needed more time for analysis and consultation with the auditor and budget staff. Commissioner David Clee moved that the board revisit the issue in July; the motion was seconded and approved. The staff member said a four- to six-week review period would be reasonable to return with recommended options before the county’s final budget work in August.

Next steps: staff will continue consultations with the county auditor and provide updated accounting options for the commissioners in July. The board did not adopt a loan forgiveness resolution or any transfer at the June 18 meeting.