County staff urges central-services chargeback, riverboat fund review to protect general fund

County staff at the Kane County Finance and Budget Special Committee meeting on May 21 outlined a range of operational changes intended to reduce general-fund pressure, including a central-services allocation plan, requiring grant-funded programs to include administrative reimbursements, and exploring reallocation of Grand Victoria riverboat funds.

Mavis Bates, a county budget staffer who compiled feedback from department heads, told the committee department leaders were "eager to work together" and that many grant-funded programs rely on general-fund-paid central services such as IT, payroll and human resources. "Even though these programs are funded through grants, they are relying on services paid for by the general fund," Bates said.

Bates described a central-services allocation plan that would more systematically charge departments and grant programs for the general services they use and urged that grants include administrative costs up front so the general fund is reimbursed. She also recommended considering reimbursement-based disbursements for certain grants to prevent unspent surpluses in recipient accounts. "We don't want our recipients to be building up a piggy bank," Bates said, referring to ARPA and other grant processes.

On riverboat funds, Bates asked the riverboat-committee chair to consider whether some of those funds could be applied to internal salaries when the work aligns with the riverboat grant purposes (environmental, economic, educational). "Maybe we should be doing our funding on a reimbursement basis," she said, and suggested taking the proposal to the riverboat committee for discussion.

Committee members debated the proposals' practicality and legality. Several members welcomed the ideas but cautioned about statutory and policy limits. Committee member Cliff (surname not specified) warned that using grant funds for salaries must follow grant conditions and sunset timelines. The state's attorney also cautioned members about informal consensus and procedural requirements when developing policy recommendations.

Bates and members also flagged recurring budget practices that inflate apparent need, including overbudgeting vacant positions and the timing of the audit that reveals unspent funds. Bates recommended listing vacant positions without fully budgeting the line until a position is filled to avoid cushion padding the budget.

The committee asked staff to continue analysis and to bring back details on feasible allocation and reimbursement mechanisms for central services, the legal constraints for reallocating riverboat and interest-earned funds, and practical rules for grant applications so administrative costs are included when allowed by grantors.