Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the County Finances topic
No spam. Unsubscribe anytime.
Long County manager warns of immediate cash shortfall, urges hiring freeze
Summary
County Manager Chuck Scragg told the board the general fund may have only about $52,000 after current bills are paid and warned an approximately $815,000 bond payment due April 15 could push the county toward default without short-term financing or other actions.
Long County Manager Chuck Scragg told the Board of Commissioners on April 1 that the county faces an immediate cash shortfall and could struggle to meet payroll if the board does not secure short-term financing or other relief.
"After paying current bills, only about $52,000 may remain in the general fund," Scragg said, and he warned that a bond note of approximately $815,000 was due April 15. He said the county is currently about $955,000 in debt and recommended a hiring freeze for the current and next fiscal years to preserve cash.
Scragg addressed public concern about the jail project, saying, "there is no $22 million missing; the cost of the jail project is $18 million, and it will require about $300,000 to open the facility." He noted the county holds funds in other accounts that are restricted by voter-approved uses and therefore not available for general operations.
The county manager listed several options the board should consider to avoid a default: seek a short-term loan or extension for the bond payment, pursue short-term financing instruments, sell or finance county-owned property, and implement budget cuts and staff reductions if necessary.
The board responded procedurally by moving into an executive session later in the meeting to discuss real estate and personnel matters. The Long County Board subsequently approved TSPLOST expenditures related to equipment repairs and authorized several surplus vehicle sales during the same meeting.
Next steps: The board held a called meeting April 8 to adopt a tax-anticipation note and an MOU for a short-term loan from the Development Authority to address immediate cash needs (see separate report).
