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Union County finance director explains COLA and 'cap bank'; deputy manager says CDBG fully funded
Summary
Director Taylor told the commissioners how the county applies state levy tests to add a cost-of-living adjustment and to 'bank' unused cap; she said the county is banking more than $1 million this year and described over $25 million available in reserve. Deputy County Manager Amy Wagner said Community Development Block Grant funding was "fully funded" for the year.
Director Taylor of the Union County Department of Finance walked commissioners through the mechanics of the cost-of-living adjustment and the county's use of a cap bank during the agenda-setting session.
Taylor said the COLA can be added only within the limits of state levy tests and that the county compares two statutory levy measures to determine the most conservative figure. "So the COLA is essentially the cost-of-living adjustment," she said, and explained that, under applicable levy tests, the county is able to bank unused cap. "What we are doing is we are actually banking over $1 million in this year's cap, plus all of the prior years," Taylor said, adding that the county has, she said, "to our discretion over $25 million" in cap bank funds that are available but can be used only under the state's constraints.
Commissioners asked for clarification about how the cap bank operates; Taylor said the bank provides fiscal flexibility but its use is limited by the statutory tests that compare historic levies.
Separately, Deputy County Manager Director Amy Wagner reported that the county was "fully funded for this year" for the Community Development Block Grant (CDBG) program, while acknowledging potential but as-yet-unpacked federal changes and ongoing monitoring with consultants in Washington.
No formal budget vote occurred during the agenda-setting session; the finance items were presented as resolutions for later consideration during the regular meeting.
