La Paz supervisors approve midyear accounting moves; $25,135 tax bill covered after payroll‑tax penalty

La Paz County's finance staff presented a midyear budget‑to‑actuals update March 2 and the Board of Supervisors approved two budget‑authority actions: a $264,669.50 accounting transfer and a $25,135.36 payment to cover an IRS penalty caused by a late payroll tax submission.

Finance staff told the board general fund revenues are seasonal and that a roughly $2,000,000 federal payment is expected late in the fiscal year. Staff emphasized the percent‑remaining figure on the slide should read 57% for revenues and noted expenditures are running near 64% of budget while the fiscal year is about 58% complete.

Cheryl (county finance staff) explained that $264,669.50 in projects were paid in fiscal year 2025 but were not completed until fiscal year 2026; because the FY25 budget authority was not carried forward, staff asked the board to authorize moving budget authority from the solar fund to cover those costs. The board moved to authorize that transfer, and the motion carried.

Separately, staff reported an IRS penalty stemming from a late payroll tax submission in April 2025 that resulted in a $25,135.36 bill, which the county paid last week after an abatement request was denied. Cheryl said Parker Accounting (the county's payroll firm) has filed an insurance claim seeking reimbursement. Board members asked whether any recovery would reimburse the health department; staff answered that recoveries would be recorded as general fund revenue, not returned to the health department. The board approved moving $25,135.36 from the health department budget to non‑departmental to cover the payment.

Finance staff also discussed enterprise funds: parks and golf are seasonal and expected to recover in Q3; public works revenues are slightly behind; landfill funds are on track; and the solar fund shows about $11.9 million in fund balance but roughly $4.2 million in cash, with the remainder represented by expected (unrealized) revenue and accounting entries. Staff committed to improved accounts‑receivable tracking for solar projects and to reconcile large deposits (including substantial Jan. 5 receipts that will appear in Q3 reports).

What the board did: authorized an accounting reclassification of $264,669.50 from the solar fund to appropriate departmental budgets to reflect work completed in FY26 and authorized moving $25,135.36 from health department to non‑departmental to cover an IRS penalty payment; both motions passed unanimously.

Next steps: County staff will continue reconciling solar fund receivables, provide a revenue forecast ahead of the FY27 budget process, and the County Attorney will review bond and financial documents where required.