Chippewa County reports $4.14 million in 2024 fund-balance transfers; board begins 2026 budget process

Chippewa County Finance Director Lori Sweeveler told the County Board on Thursday that pre-audited 2024 financial results included $4,141,174.84 in year-end fund-balance transfers and that the county transferred $2,300,000 to its self-funded health insurance reserve to stabilize that fund.

Sweeveler said those transfers, combined with other routine closings, would have increased the county’s unassigned fund balance by $4,141,174.84 but that, to comply with the county’s fund-balance policy, additional transfers were made. “If all of our lapsing funds closed to the general fund, we would have increased our unassigned fund balance by $4,141,174.84,” she said.

The transfers were tallied as $2.3 million to the health-insurance reserve to address an unexpected loss in the self-funded plan; $600,000 for M&T projects identified by Highway Commissioner Brian Kelly; and other set-asides for planned projects and juvenile-detention costs. Sweeveler said the county moved $2,300,000 into the health-insurance account at the end of 2024 to keep that reserve healthy. She also reported that, after transfers and adjustments, the county’s net increase in unassigned fund balance for 2024 was $805,741.84.

Why it matters: the fund-balance levels affect the county’s borrowing profile and interest rates for future bonds, and transfers reduce the amount available for general use. Sweeveler told the board that higher unassigned fund balance helps the county when it issues bonds and can lower interest costs.

Among specifics presented: - The county created a nonmetallic-mining reclamation fund in late 2024 after capturing bonding tied to reclamation and placing the proceeds in the state investment pool to earn interest. - Sales tax revenues grew 2.44% in 2024; Sweeveler cited “ordinance two-three 61” as governing the use of sales-tax revenue and said those revenues cannot be used until the subsequent budget year. - The county’s outstanding long-term debt principal at the end of 2024 was $10,380,000; projected outstanding principal for the end of 2025 was reported as $8,510,000. - Sweeveler described a $150,000-per-year juvenile-detention case that prompted creation of a directed account so departments can transfer funds at year-end to cover unexpected detention costs rather than overstating an operating department’s budget.

The finance presentation was followed immediately by a formal kickoff of the 2026 budget process from Assistant Finance Director Jennifer Steinmetz, who outlined a multi‑month timeline, the three phases of the county’s budget (department-head requested, county-administrator proposed, and the final County Board approval), and statutory constraints on levy-setting. Steinmetz told the board that department heads will submit their requested budgets to the county administrator and that the administrator will present a proposed, balanced budget to the board in October and November, with a required public hearing and final levy resolution to follow.

Sweeveler noted the auditors started fieldwork on the 2024 financial audit and that a final audited report is expected in August or September.

The board did not take any immediate budget-adoption votes at the meeting; the presentation launches the public and departmental engagement steps ahead of the fall hearings.