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County finance staff reports balanced 2024 general fund, flags sales tax and investment shortfalls; commissioners discuss reserves and purchasing thresholds
Summary
Assistant county administrator Lucas Mellinger reported that the 2024 general fund finished near budget with about $5.5 million in cash balance but warned 2025 revenue risks from falling sales tax receipts, a shortfall in projected investment income and health department grant timing.
Lucas Mellinger, assistant county administrator, presented a year‑end financial overview for 2024 and brought a draft comprehensive financial management policy for commissioners’ review.
Mellinger reported the general fund ended the year with roughly $5.5 million in cash balance and that revenues and expenses for 2024 were close to budget after midyear adjustments. He noted several revenue variances: the sheriff’s office recognized approximately $335,000 in grant revenue that also carried corresponding expenses; the treasurer recorded roughly $422,000 in investment interest driven by higher interest rates in 2024; and EMS revenue was about $300,000 over budget. Sales tax receipts trended downward relative to 2023 and may present stress for the Road and Bridge budget, which depends heavily on the county’s one‑cent sales tax allocation.
Mellinger raised three items of concern for 2025: (1) lower projected investment interest at current investment activity because about $10 million of cash the county planned to invest remained on deposit instead of invested, (2) sales tax receipts that have fallen relative to 2023 and (3) health department grant revenue that came in lower than budgeted in 2024 but is budgeted higher for 2025.
On policy items, staff proposed formalizing a fund‑balance target. Commissioners discussed a range — 15% to 20% of the general fund — and agreed to language framing a goal of maintaining reserves between 15% and 20%, with the exact policy to be refined and returned for formal adoption. Commissioners also discussed purchasing and contract thresholds: staff proposed raising department head purchase authority from $750 to $1,500, raising a department‑director or county manager threshold and clarifying that any county contract commits funds and therefore should come before the commission. Commissioners asked staff to return the draft policy with redlined changes for review prior to budget hearings.
Ending: Staff will provide a refined comprehensive financial management policy and return with redlines and a recommended fund‑balance policy; commissioners directed staff to address procurement adherence and to coordinate with the treasurer on outstanding uninvested cash.
