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Mitchell County supervisors consider shifting carryover funds and raising road transfer to shore up projects
Summary
Supervisors reviewed fund-balance worksheets showing general-basic carryover near 42% and discussed moving money into a project fund or increasing transfers to roads (options discussed included raising the general-to-roads transfer from 75% toward 85% or 95%) to lower the county's apparent carryover percentage and provide money for IT, facility repairs and bridge-related expenses.
Mitchell County supervisors spent the bulk of their Feb. 3 meeting examining fund balances and possible reallocation of reserve dollars to address near-term capital and maintenance needs. County staff presented updated worksheets showing carryover percentages roughly at 42% for the general-basic fund, 34% for general supplemental and 32% for rural basic, and outlined the effect of bonded capital projects on reported balances.
The board discussed two principal approaches to reduce the apparent carryover while preserving capacity for planned work: (1) create or add to a subproject/project fund earmarked for immediates needs such as IT upgrades and the courthouse cupola repair (the board noted an existing project fund of $300,000 and discussed adding $100,000–$300,000 more); and (2) increase the percentage of general fund transfers to roads (members discussed moving the general-to-roads transfer from 75% toward 85% or 95% to free additional dollars for projects).
County staff explained that some funds show negative balances on internal reports because the accounting reflects bonded project amounts that may span fiscal years; that timing, not actual insolvency, was the primary driver of the apparent deficits. Staff also noted that some designated funds (for example, American Rescue Plan Act and certain mental-health lines) were fully expended or budgeted and therefore appear negative on summary reports.
Supervisors stressed the need for a prudent reserve while also using carryover dollars for planned work. One supervisor argued the county should aim to lower carryovers into the low 30% range and convert some reserves into defined projects rather than holding them as undesignated taxes. After discussion the board reached a consensus for staff to proceed with the updated worksheet numbers and the proposed transfer level so the auditor's office can finalize figures for formal budget submission to the state.
Next steps: county staff will update and re-submit the balance worksheets with the agreed transfer and project-fund assumptions and bring final budget files forward for formal upload to the state. The board did not take a formal roll-call vote on a specific budget ordinance at this meeting; supervisors instructed staff to continue preparing the budget under the agreed direction.
