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Sioux County adopts 2018–19 budget and uses short-term borrowing to cover year-end cash shortfalls
Summary
After adopting a $1.2 million property tax request and the 2018–19 budget, the board approved short-term loans from the Inheritance Fund to cover November and December cash shortfalls while exploring bank borrowing and transfers to balance the Road Fund.
The Sioux County Board of Commissioners adopted the fiscal year 2018–19 budget and associated appropriations in September and later approved short-term borrowing from its Inheritance Fund to cover temporary cash shortfalls in November and December.
At the Sept. 4 meeting the board unanimously adopted the budget and appropriations for July 1, 2018–June 30, 2019. The adopted plan requires a Property Tax Request of $1,200,000 and resulted in a proposed tax rate of 0.183056.
Facing tighter cash flow later in the year, clerk Michelle Zimmerman and County Treasurer Lacy Klein informed the board about near-term liquidity needs and options. On Oct. 22 the board discussed bank loan options and the limitations of county borrowing, including that any borrowed money must be repaid within the fiscal year. The board also discussed transferring Inheritance Fund balances and consulting the county auditor about appropriate procedures for transfers.
Formal action followed: on Nov. 1 the board approved Resolution 2018-2 to borrow $34,000 from the Inheritance Fund to cover November expenses and recorded that the transfer would be repaid prior to Feb. 1, 2019. On Dec. 3 the board approved Resolution 2018-3 to borrow $54,000 from the Inheritance Fund to cover December expenses; the minutes state the loan will be repaid before May 1, 2019. County Treasurer Lacy Klein had earlier reported a negative Road Fund balance and said she would issue registered warrants only as a last resort while working with the board on transfers and cashflow planning.
The minutes show the board considered bank loan terms presented by local bank representatives (Security First Bank and Sandhills/Panhandle bank reps) and discussed moving funds between funds (General, Road & Bridge, Inheritance) to ensure payroll and claim payments could be made in November and December. Commissioners and the clerk agreed to consult the auditor and to execute transfers or borrowing consistent with Nebraska statutory requirements.
Next steps: the board directed the treasurer and clerk to provide ongoing cash-flow updates and to complete repayment of the specified loans within the stated windows.
