Treasurer: Lee County prepared draft financial statements in-house; committee approves quarterly report amid tax and PPRT fluctuations

Lee County Treasurer Reid told the Finance Committee on March 13 that county staff prepared a draft of the countyfinancial statements in-house this year and submitted them to auditors Wipfli for review. Reid said the auditors would comb through the drafts and return notes, and that the process should wrap up soon.

Reid and other staff gave the committee a quarterly financial update. At a high level, revenues and expenses were tracking close to budget when excluding property-tax receipts that are collected later in the year. Committee members were told that cash balances in the general fund were lower than in prior years because of timing: the county made an early annual liability-insurance and bond payment and the associated interfund transfers had not yet been completed.

Staff explained a January anomaly in use-tax receipts. They said the state reclassified a major retailer's transactions for multiple months, producing a statewide adjustment that was reflected in Lee County's January use-tax distribution; sales-tax receipts have trended higher since the correction. The county is monitoring distribution mechanics and will watch subsequent quarters.

Members also discussed the Personal Property Replacement Tax (PPRT), which is down substantially compared with recent years. Staff said state guidance had forecast declines and that the county planned conservatively, but the current quarter's PPRT was well below earlier expectations; staff will continue tracking and report adjustments for the budget cycle.

The finance committee approved the quarterly report. The motion was moved by Nancy Naylor, seconded by Tom Kitson, and carried by voice vote.

Ending: Staff will continue to work with auditors on the financial statements, monitor use-tax and PPRT receipts across the next quarter, and report any budgetary adjustments to the committee.