Kossuth County: emergency response complex contract unfinished; sub fund has no cash, officials say

Kossuth County officials told the Board of Supervisors that a contract tied to the county's emergency response complex has not been completed and the sub fund created to receive related revenues currently holds no cash.

County staff said the contract, which staff said was still being worked on by a person named Todd, has not been finalized and so the county has not received any money for the new sub fund. "So, we have 0 funds in that sub fund, but of course we have expenses coming out of that sub fund for that building," a county staff member said during the meeting.

The absence of incoming funds has led to questions about cashflow and budgeting. The same staff member said county accounting staff have reviewed the situation and noted that state/local code "does make provisions for this as long as the yearly revenues will exceed the expenditures. Positive fund balance at June 30 is allowable." The staff member also said that, as of the meeting, the county's records made it look "like we're already over budget." The official said some expenses could be covered from other departmental budgets in the meantime but that the contract needs to be finished and funds need to start flowing "as soon as possible."

Supervisors and staff discussed how billing from the party that will fund the sub fund should be handled once the contract is completed. One county official said yearly billing would be simpler for the payer, while others suggested a shorter cycle so the county is not left with a gap at the end of its fiscal year. The staff member said the payers are "splitting the $20,000," and recommended getting at least a year's payment in the account initially so the sub fund is current.

No formal action was taken at the meeting on the contract or on transfers into the sub fund; staff said they will follow up with the contractor and finish the agreement. Officials emphasized the priority of completing the contract and starting revenue receipts so the sub fund can cover ongoing building costs.

Looking ahead, the staff member asked supervisors to "keep that eye on the radar" and indicated staff will continue trying to get the contract completed and the billing schedule set. The board did not set a deadline at the meeting for finalizing the contract or for when receipt of funds must begin.