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Sherburn council approves $53,000 transfer to help Temperance Lake Ridge meet payroll
Summary
The council approved Resolution 2026-05 to transfer $53,000 from capital expense to Temperance Lake Ridge’s operating account after Cornerstone Management cited a temporary Medicaid funding interruption and payroll timing as causes of short-term cash shortfall.
The Sherburn City Council approved a $53,000 transfer on March 2 to provide short-term operating cash for Temperance Lake Ridge, according to materials from Cornerstone Management.
Andrea summarized the request, saying the council had received supporting documentation from Ryan Ravallet of Cornerstone Management asking for a cash infusion so Temperance Lake Ridge could meet payroll on Feb. 27. "There is supporting documentation from Ryan Ravallet with Cornerstone Management writing to request a cash infusion for Temperance Lake Ridge to ensure that they can meet payroll on Friday, February 27th," Andrea said.
Council materials and Andrea’s summary attribute the shortfall primarily to an interruption in disability waiver funding tied to a provider enrollment lapse and an unfinished DWRS cost report under prior leadership. Andrea told the council the waiver funding stopped at the end of December 2025, creating an estimated $40,000-per-month cash flow gap for January and February, and that Cornerstone expects approximately $80,000 in back billing from the state, likely in March.
Andrea also described payroll timing issues that increased near-term cash needs: January had three payrolls (Jan. 2, Jan. 16 and Jan. 30), and some payrolls were effectively funded by February rent receipts, leaving a temporary gap. The documentation states Cornerstone plans to reimburse the Temperance capital fund once back billings arrive.
A motion to approve Resolution 2026-05 was moved and seconded; the council conducted a roll call and approved the resolution. One member voiced opposition during discussion before roll call but the measure carried.
Why it matters: the transfer is short-term assistance to prevent payroll disruption at a local facility providing services to vulnerable residents; the root cause is described in council materials as an administrative lapse affecting Medicaid-related reimbursement, not a permanent funding cut.
Next steps: council members recorded approval; Andrea noted staff and Cornerstone anticipate state backbillings that would allow repayment to the capital fund, but timing is uncertain.
