Treasurer warns Leavenworth County motor-vehicle fund could face shortfalls; holds $17,200 to cover 2025 risk

The county treasurer briefed the Leavenworth County Commission on the motor-vehicle fund’s finances and projected a potential shortfall if current revenue trends and rising benefit costs continue. The treasurer recommended holding $17,200 that would otherwise be transferred to the general fund to cover possible shortfalls through the end of 2025 and flagged larger risks for 2026.

Treasurer said motor-vehicle fund revenue has recently grown only about 0.4%–0.5% annually. By contrast, the fund’s personnel benefit payouts have shown double-digit increases in some years: a 20% jump in benefits in 2022, 6.5% in 2024, and a projected 17.2% for 2025 in the treasurer’s extrapolation. Combining conservative revenue growth with pending benefit increases, the treasurer forecast a worst-case shortfall of about $13,000 for the current year and as much as $30,000–$34,000 for 2026 under conservative assumptions.

“As a precaution,” the treasurer said, “I’m holding $17,200 that was left over from last year” in the motor-vehicle fund rather than transferring it statutorily to the general fund ahead of June 1. The treasurer said the money is being held for monitoring through the final quarter of the year and recommended the commission consider the fund’s balance before approving any transfer.

Commissioners and staff discussed options the treasurer outlined to avoid future shortfalls, including not filling a recently vacated annex position (which would reduce outlays) or filling it as part-time to preserve driver's-license services at the annex. The treasurer said remaining open would risk reduced hours or suspension of driver's-license processing at the annex — a state-provided service the county performs as a local convenience and that brings roughly $5 per transaction but does not fully cover staffing costs.

County staff and commissioners clarified governance: the motor-vehicle fund is a distinct statutory fund; any decision to forgo the statutory year-end transfer to the general fund would require a commission vote and a formal agenda item. Commissioners signaled willingness to leave the $17,200 in the motor-vehicle fund for now and asked staff to monitor monthly results and return with proposals if the shortfall materializes.

The treasurer emphasized the long-term structural issue: if state funding for motor-vehicle operations stays modest while benefits and personnel costs rise, counties face either staffing/service reductions or shifting costs to property taxes or other local revenues. The treasurer urged close monitoring and said a decision on filling an annex position will be delayed until updated fund projections are available.