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Columbus County approves budget amendments, freezes 35 vacant positions after audits reveal overstated revenue
Summary
Following recent audit findings, the Columbus County Board of Commissioners approved budget amendments that include freezing about 35 vacant positions to offset an approximately $1.02 million shortfall tied to a major taxpayer release and overstated utility franchise revenue.
The Columbus County Board of Commissioners approved a package of budget amendments that includes freezing roughly 35 vacant county positions to produce estimated savings of $1,024,703, after county staff reported audit-driven corrections that reduced projected revenues.
County Manager Eddie Madden and Internal Finance Director Heather Woody told the board that recent audits and a review by the Local Government Commission identified overstated budget items. Madden said a large tax-release tied to the International Paper site reduced property-tax revenue by more than $2 million, and revised collections and billing work reduced the net loss to just over $1 million.
"We have proposed ... to reduce staffing levels by freezing additional vacant positions, in total of about 35 positions resulting in a net savings to the county of $1,024,703," Eddie Madden, county manager, said. Madden emphasized the hiring freeze is not a reduction-in-force and does not affect current employees.
Heather Woody, the county's internal finance director, reported other findings: the county's utility franchise tax revenues were budgeted at roughly $5 million in error and should be closer to historical ranges of $2.25 million to $2.5 million, an overstatement the county will address in a future amendment. Woody also noted the county is collecting about $130,000 per month in interest income and recommended raising the interest-income budget to capture expected receipts.
The board also directed departments to propose operational reductions of at least 5 percent by a specified deadline so the county can consider targeted cuts instead of unplanned year-end amendments. Madden said the county consulted contract CPA Ryan Marlar and Melanie Bridal, the Local Government Commission representative, and that both concurred with the audit findings and the recommended approach.
The amendments approved at the meeting included a specific sheriff's office budget revision that increased vehicle maintenance and repair spending by $33,492, funded by insurance receipts for wrecked vehicles. Commissioners discussed the county's long-term vehicle-replacement plan and noted 42 leased vehicles are scheduled to come off lease this year.
A motion to approve the vacancy-freeze budget amendment passed unanimously after a motion by Commissioner Todd Floyd and a second by Vice Chair Chris Smith.
Commissioners asked staff to return to the board with recommended operational reductions by the board's meeting on Feb. 17 and to present a follow-up budget amendment to address overstated utility franchise tax revenue.
