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Committee approves using LATCF funds to pay jail HVAC work; borrowing option left open
Summary
The finance committee approved using Local Aid to Tribal County Funding (LATCF) money to pay for the sheriffs office HVAC replacement at the jail, with an option to borrow later if needed.
Ashland Countys Finance and Economic Development Committee voted to fund replacement of the sheriff department's jail HVAC system using LATCF funds and other available balances, while leaving the option to borrow or use bonding later.
Committee members said the HVAC vendor's proposal allows invoicing as equipment arrives and in some cases can delay invoicing beyond net-30 if the county needs more time. "When they order the equipment, they usually invoice once the equipment arrives on job site," Dave Dawson said on the line. He also said the contractor indicated they could push invoices out if needed.
Members discussed payment options and liquidity. Committee members noted $68,000 in excess bonding cash (an overestimate of insurance in prior bonding) is immediately available; capital contingency and LATCF balances were discussed as additional possible sources. Steve and Mike, the committee's financial consultants, noted that LATCF funds currently earn interest and that short-term borrowing would cost a small spread over that rate, making a cash-preserve approach reasonable if the county prefers to keep liquid reserves.
Faced with near-term invoicing (equipment charges expected to represent a large portion of the early invoice), the committee made a motion to authorize use of LATCF funding to pay for the jail HVAC installation and to permit borrowing later if required. Blake Ellefsen moved the motion; it was seconded and passed on a voice vote. Committee members instructed staff to document the funding decision to present to the county board and to reserve the option of replacing LATCF funding with bond or note proceeds later in the budget process if that is fiscally preferable.
