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Peoria County committee inactivates automatic transfer of surplus to long-term care fund
Summary
Peoria County committee voted unanimously to inactivate a policy that had automatically assigned 50% of general fund surpluses to the long-term care services fund, restoring discretion to the board on how to allocate year-end surpluses.
Peoria County committee members voted unanimously to inactivate a December 2023 policy that had required transferring 50% of any general fund surplus to the long-term care services fund.
The action restores discretion to the board over how year‑end general fund surpluses are allocated, allowing the board to decide case-by-case whether to put money into reserves, capital projects or the long-term care fund.
County staff described the policy inactivated as originally intended to accelerate payoff of the Headington Oaks bonds callable in December 2032. Scott (staff member) told the committee the December 2023 policy had led to a one-time contribution of about $3,269,000 to the long-term care services fund after a strong fiscal-2023 surplus.
Shadi Lunden, a county staff member who presented the March financial report, said she re-ran long-term-care projections including a 3% annual inflation assumption for the ombudsman contract. Lunden said, with that inflation assumption and using the current contract, “we'd still have $920,000 of a surplus projected, which would be about 8 years' worth of additional long term care through that program, including inflationary adjustments.”
Committee members asked whether the inactivation would bar future contributions; staff clarified it does not. The inactivation removes the automatic requirement but leaves the board free to make discretionary transfers in future years.
The committee called for the vote and recorded it as unanimous. The committee did not adopt any new automatic transfer amount or new schedule; the board retains the authority to allocate any future surpluses as it chooses.
The change affects how Peoria County will treat future year‑end surpluses; staff said they will continue to present fund-balance and reserve projections in quarterly reports so the board can decide on discretionary transfers.
Members and staff indicated no immediate operational changes to the long-term care services program itself; the resolution only changes the automatic transfer policy.
