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Faulkner County treasurer reports carryover shortfall tied to delayed $996,000 payment; ARP funds available through 2026
Summary
Treasurer Sanson told the Faulkner County Quorum Court that a roughly $996,000 receivable from ACD has caused a timing shortfall but county finances remain solvent; the county also holds about $24 million in American Rescue Plan funds that must be spent by 2026.
Treasurer Sanson reported to the Faulkner County Quorum Court on Jan. 31 that an expected payment of about $996,000 from ACD has not yet cleared, creating a timing-driven shortfall in the county’s reported 2024 net income but not an immediate cash crisis.
The treasurer said the county’s ending general balance was roughly $4 million and that the projected carryover had been about $4.5 million. "If that money had come in like it was supposed, we would have been over the 4 and a half million carryover, and we'd also been positive on our net income," Treasurer Sanson said, attributing the gap to timing and noting the sheriff’s office is coordinating with ACD to resolve the receivable.
Why it matters: the court uses carryover estimates when setting the 2025 budget. Sanson told the court the missing receivable is expected to be recorded when it arrives and that even with a reduced carryover the county would still have available funds to cover near-term needs.
Sanson walked members through several revenue and fund balances. He reported December sales tax receipts of $1,212,307.83 and total sales tax for the year of $14,723,005.23, an increase of 5.81% year over year. He warned that January comparisons are distorted by a roughly $400,000 anomaly in the prior-year data, and said his working projection for 2025 sales tax receipts is about $14.3 million after excluding that anomaly.
On the county’s investment position, Sanson said the county earned interest on ARP deposits and on time investments, and that many certificates of deposit were locked in at comparatively good rates during the prior year.
American Rescue Plan funds: Sanson confirmed the county still holds ARP funds in the bank and that "this part of the $24,000,000 that we got with American Rescue Plan, they are in our bank account, and they have to be spent by the end of 2026," adding that some ARP amounts were moved into a separate revenue-replacement fund for county general use. He said roughly $10,000,000 of ARP funds had been earmarked as revenue replacement and about $1.3 million was moved to county general functions during the prior year.
Court members asked whether federal oversight or changes in Washington would affect the county’s ability to use those funds. Sanson said the ARP deposits were received in mid-2022 and mid-2023 and that the county is tracking the deadline and accounting requirements. "The money is in the bank, but we're earning interest on it," Sanson said.
Court members also reviewed other fund details reported by Sanson, including county road and criminal justice sales tax funds. He noted criminal justice had a small deficit in the month after some one-time expenditures and that staff had followed up with the relevant offices to confirm whether those were one-time items.
Sanson closed by offering additional detail at members’ requests and inviting them to meet for further review of the revenue and investment breakdowns.
Ending: the treasurer advised the court that revenues and expenditures are tracking near projections, the ACD receivable remains outstanding and is being pursued, and that ARP funds remain available but subject to federal spending deadlines.
