Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Fiscal Policy topic
No spam. Unsubscribe anytime.
Cross Plains committee debates revised investment-income policy and library interest treatment
Summary
Village committee recommended clarifying which accounts receive investment income after members debated whether interest earned on library funds should remain with the library or be swept to the general fund; staff will revise the policy to list funds and return it for final approval next month.
The Village of Cross Plains Finance Advisory Enhancement Committee reviewed a draft investment-income allocation policy and asked staff to add explicit language defining which funds keep earned interest and which are swept to the general fund.
Elizabeth, speaking for the library, urged the committee to preserve interest earned on library funds. "I'm concerned if the interest that we're earning on the money that should be just in the library fund is going back into the general fund," she said, adding that state statute and library board control support keeping library interest within the library's fund.
Committee member Michael Kelsey said he wanted the policy to spell out where remaining interest would go. "I would like something be added into there that says and the remaining interest from all of the funds is allocated to the general fund," Kelsey said, arguing the change would make the policy clearer for staff and auditors.
Members and staff discussed technical examples — CDs and bank accounts already designated 100% to sewer or water, interest in a main sweep account, and tax-increment (TID) balances — and noted potential arbitrage concerns if capital funds are pooled. Staff confirmed they would add a clear list of funds that should retain their interest (for example, any funds the board specifically designates such as a library line if the board chooses) and an explicit clause that all other funds' interest would be allocated to the general fund; the revised policy will return to the committee next month for final approval.
Why it matters: The allocation affects how much revenue the village and separate funds (library, water, sewer, capital projects) will report and could change budget assumptions for coming years. Committee members emphasized transparency and asked staff to track retroactive allocations back to January if the revised policy is approved.
Staff follow-up: Committee directed staff to (1) add explicit language listing funds that retain interest, (2) add a clause directing all remaining interest to the general fund, (3) check TID and arbitrage implications, and (4) return the revised policy to the committee for formal recommendation to the board.
