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Cherokee County CFO: Reserves shrinking as insurance, E911 costs tighten budget
Summary
Cherokee County CFO Lonnie Chuck Denkins told commissioners the county remains on budget year-to-date but is drawing reserves by design and faces rising pressures from group insurance, E911 funding shortfalls and several smaller funds that together could require $9.2 million in offsets or cuts.
Lonnie Chuck Denkins, Cherokee County chief financial officer, told the Board of Commissioners on June 16 that year‑to‑date revenues and expenditures are tracking close to budget but that the county is intentionally using reserves and faces near‑term funding pressures.
“We're projected to come out to a fund balance of about $54,500,000 at the end of this year with an estimated cost per day of $489,000 that gives us about 112 days of reserve,” Denkins said, adding that the current budget plans to use roughly $9,200,000 of reserves.
Denkins said revenues collected through May were about $278 million of a roughly $353 million budget and that overall expenditures are about 63.9% of budget with 64% of the year elapsed. He highlighted three specific areas of concern: the E911 fund, the court trust fund used for accountability courts, and the group insurance fund.
On E911, Denkins warned the fund is drawing reserves rapidly and could end the year with roughly a 40‑day reserve under the current funding model, a shortfall that “ultimately will affect… the general fund directly” if the state funding model does not change. Director Bonebrake, who answered technical questions about the recorder service, confirmed the importance of maintaining core equipment and operations.
Denkins also singled out the group insurance fund as “the major accelerator for the budget,” explaining that medical costs, pharmaceuticals and chronic claims can push the county toward a negative true‑up at quarter end. He estimated the general‑fund impact of insurance adjustments could be in the low millions and recommended vigilance as staff finalizes quarterly true‑ups.
Commissioners and staff discussed fire fund reserves (projected at about 55 days), and the county’s prior decision to use reserves in the previous budget to hold tax rates low. Chair (functional role) and other commissioners questioned possible ways to close the gap—spending reductions, revenue growth or targeted transfers—while cautioning about the tradeoffs involved.
The presentation closed with staff noting that the county will need to consider whether to stop using reserves and, if so, how to make up the roughly $9 million difference through cuts or revenue increases going into the next budget cycle.
