“I panic every year,” that the county will make its budget, said Allen County commission chairman Dick Works at Tuesday’s meeting. BILL KING’S concern about Public Works Department finances also wasn’t as critical as first thought.
He’s had to reach for the Rolaids more than once in recent weeks as department heads have struggled to find a missing $500,000.
His concern arose from the fact that the county still had $1.5 million in the general fund budget that could be spent in November and December, and had $1 million in the bank.
Works also was concerned about $250,000 commissioners wanted to carry over to its 2013 budget.
Tuesday morning, commissioners sighed relief. The shortfall was explained.
Here’s how:
— When commissioners put together this year’s budget in July 2011, they anticipated $413,000 in reimbursement from hospital bond proceeds would occur in January. Instead, the reimbursement came in December, which made it revenue for the 2011 budget not this year’s. Reimbursement occurred because general fund money was used for hospital expenses before bond proceeds became available.
— Sales tax and interest revenues are about $80,000 less than anticipated for the year, but proceeds for November and December have yet to be received, meaning that part of the shortfall will be less.
— Revenue from use of the jail by other jurisdictions is about $60,000 less than $125,000 budgeted.
— The county did not budget $80,000 to subsidize Iola’s ambulance service, but then followed through with the expenditure.
— Finally, revenue from a number of sources will come to the budget during November and December, but amounts won’t be known until distributions are made.
When those things are taken into consideration, the difference between cash on hand ($1 million) and projected revenue is reconciled, Works said.
While a lecture Works gave department heads last week to watch spending closely may not have been borne out by financial facts that came to light Tuesday, he noted it was beneficial in encouraging them to look closely at expenditures and hold down spending whenever possible.
“I’m confident we have enough revenue — or will have — to get through the year,” Works concluded.
An examination of his department’s budget Tuesday found $1.6 million of $2.3 million budgeted expenditures had been made and for the remaining $700,000, $420,000 is covered by money in hand.
King said he thought revenue coming to his department the final two months of the year should be sufficient.
Budget concerns reconciled
