Stearns County board approves transfer of excess operating funds to capital and project accounts

The Stearns County Board of Commissioners voted to transfer excess balances from operating funds into capital and project accounts, the board announced after a voice vote at its regular meeting.

County officials told the board the transfers — a combined amount described in the public packet as “over $25,000,000” — will be used for capital and one‑time project expenses, to smooth cash flow ahead of bond issuance for the planned justice center, and to keep costs off the levy.

The county’s Auditor–Treasurer, Randy, told the board its fund‑balance policy aims to hold 35–50% of annual expenditures in reserves and that several operating funds had grown above that range. “We’re looking to move those into a capital fund and some into a law enforcement account for the justice center,” Randy said, describing the transfers as an internal cash‑flow measure so the county can pay early project costs and then reimburse itself after a bond sale.

Sarah Uch, finance director in the auditor‑treasurer’s office, summarized how the moves will be allocated. She said the board packet described three main requests: transfers into project/capital funds including the justice center and highway construction fund; a $1,000,000 seed for a future enterprise resource planning (ERP) replacement; and up to $200,000 for an initial artificial‑intelligence pilot and related consulting to explore Microsoft Copilot and other tools. Uch also cited funds for Workday contract configuration and post‑go‑live support and “one‑time funding put aside for HR and administration” for employee recognition and wellness initiatives.

Board members framed the transfer as a cash‑management step rather than new ongoing spending. “It truly is a move for cash flow,” one commissioner said, noting the county will begin collecting the local option sales tax in a future quarter and expects to replenish the project accounts as revenue arrives.

The motion to approve the transfer was made by Commissioner Clark and seconded by Commissioner Persky. The board approved the transfer by voice vote.

The county said some transfers may later be used temporarily to shore up debt‑service cash flow until long‑term financing is in place; officials plan to reimburse the project accounts after bond proceeds are received. Details about exact timing, allocation to specific line items and any future budget amendments were described in the board packet and will be returned to the board for subsequent approvals as required.

Why it matters: moving operating surpluses into capital and project accounts lets the county pay upfront costs for large projects (IT systems, justice center pre‑bond expenses, highway construction) without increasing the levy immediately. It also creates near‑term budget flexibility while retaining the option to reimburse the county from future bond proceeds or tax receipts.

The board’s action does not change existing collective‑bargaining commitments or create ongoing operating budgets for the new initiatives; those steps will require separate approvals. The county will return to the board with more detailed cost estimates and requests if projects require additional appropriation or amendment.