County finance consultant reports improved unassigned fund balance after ARPA closeout; explains short‑term borrowing practice

Ashland County’s Finance and Economic Development Committee received an update from the county’s financial consultant on first‑quarter finances and on the closing of American Rescue Plan Act (ARPA) funds.

The consultant summarized the county’s first‑quarter report through March 31, noting no major anomalies and explaining that year‑over‑year revenue differences were driven largely by one‑time items received in the prior year. He also explained the county’s short‑term borrowing routine: the county typically issues a note of 366 days (a year plus one day) in late fall to fund capital purchases for the coming year; the note qualifies as long‑term debt under Wisconsin levy‑limit law and is repaid when property tax collections arrive.

Why it matters: The consultant told the committee that by claiming eligible 2024 expenses against ARPA — including previously incurred sheriff salaries and courthouse emergency repairs — the county fully earned its remaining ARPA allocation and expects to add roughly $750,000 to the general fund balance, increasing the county’s unassigned fund balance to about $2.6 million. That increase gives the county discretionary capacity to address items such as health and dental insurance deficits.

Key points

- First quarter: The consultant said he saw no unusual results for the general fund and that highway fund expense entries had been delayed but were being posted by highway staff.

- Short‑term borrowing: The consultant explained that the county’s 366‑day note practice is used to fit capital spending under the levy‑limit exemption for long‑term notes; there is no prepayment penalty, and taxes collected the following spring are used to pay the note.

- ARPA closeout: County staff and consultants filed the ARPA closeout by the April 30 deadline. The consultant said they claimed qualifying 2024 expenses (for example, sheriff salaries and certain courthouse repair costs) to earn the remaining allocation. “That money will flow to your general fund. Then you can, as a county board, decide what you want to do with that,” the consultant said.

- Fund balance projections: The consultant presented a projection that shows unassigned fund balance rising from prior‑year levels near $139,000 to an estimated $2.6 million after the ARPA closeout and adjustments. He cautioned that accruals, opioid fund earmarks and last‑minute audit journal entries could move the number by tens or hundreds of thousands.

Committee outcome

The committee asked clarifying questions about debt service timing, accruals for elevator repair costs and the mechanics of the ARPA claim; there was no formal vote associated with the update. The consultant and staff will present amended state financial reporting as needed to match final audited entries.

Ending

Committee members said the improved projected unassigned fund balance relieves some short‑term budget pressure, but they emphasized continued oversight as audits and accruals are finalized.