Council finance committee gives numbers
By Debbie Lowe Staff writer

On behalf of the Carroll County Council-established finance committee, Ann Brown presented a written report to her fellow council members at the Friday morning meeting. The document listed bank accounts with current figures and a historical perspective.

"With much thought and cooperation from everyone involved, we consider the state of Carroll County finances to be serious but not insurmountable," the report read.

"We (committee members Brown, Steve Ashby and Ron Slavens) don't feel like we can do any more until the commissioners act on our recommendations," Brown explained.

She said the county spent $2.23 more than it took in last year. However, $400,000 less was spent than was budgeted.

"...If we do not control our spending, and if our income is a repeat disappointment of year 2006, we will be forced into operating on our restricted funds," the report continued. "If we are forced into that situation, we must reimburse the restricted funds by year end. It is possible that we might not be in a position to repay."

(Restricted funds include cumulative capital projects, cumulative bridge, tax increment financing, etc.)

According to figures supplied to the committee by county treasurer Jane Brewington, the year-end balance for 2004 was $15,668,095, for 2005 it was $11,000,143 and for 2006 it was $8,628,668. The balance numbers mean there was a reduction of the cash balance, or the amount of cash available to pay county bills, of $7,039,427 in three years.

"I'm as much at fault as anyone here," Ashby said. "I kept looking at expenses when I should have been looking at income."

"We can no longer go on what we expect to collect," Slavens added. "We have to look at what we've received in the past."

"This has happened over a period of time," Brown said, "and it's going to take a period of time to fix it."

"We have to turn this into a business, folks," Hendress said.

The report indicated the current checking account balance is $1.3 million and monthly claims total in excess of $1 million. Homestead credit funds are not expected until mid-July.

Carl Abbott emphasized there are outside entities, not under county control, which affect the county's income and spending significantly.

The committee report said that school corporations sometimes request semi-annual settlement funds early. The Rossville School Corporation has already requested funds. There is no option but to pay on demand when the request is made. Tax bills may not be sent out until the middle of June at the earliest with a July due date.

Committee members included recommendations in the report.

"We suggest the council and commissioners consider meeting with all county department heads/elected officials to inform them of the serious financial condition of the county and to ask for cooperation in spending, and to request suggestions from those individuals who should be more familiar with their departments and budgets. That same meeting should be also provide any instructions for 2008 budget preparation..."

It was decided the group would invite the commissioners and department heads to the May 31 council meeting to explain the situation.

County auditor Beth Myers announced the Department of Local Government Finance verbally approved a budget of $7,306,364 for 2007. DLGF told the county two weeks ago to either reduce planned spending by $337,824 or show an increase in income. Myers said she worked with department heads to decrease their combined budgets by approximately $112,000.

The DLGF accepted the addition of the 2006 budget surplus (which was more than the actual income) as additional income for 2007. Those two figures then satisfied the DLGF reduction in the county budget.

Slavens asked for a breakdown of the decreases however one was not available at the meeting. He noted that $112,000 was "insignificant" compared to a $2 million shortfall in 2006.

Slavens said the council should have been given the opportunity to make budget changes before it was re-submitted to DLGF.

Council members met April 27 in special session to discuss the repair of the courthouse air conditioning system. Brown asked about the budget amendments at that meeting and was told by other council members that "it was taken care of."

"We had a golden opportunity to make significant changes when we met in special session last week, but we didn't get the chance," Slavens said.

"It is a council issue and should have been discussed by the council," Slavens continued. "The budget is approved by the council and the council should have approved any amendments. We should have been given the opportunity."

"It frustrated me (last Friday) because I didn't know what was going on," Hendress said.

However, speaking to Myers Hendress said, "I commend you for what you did."

"I can show you the figures," Myers said. "All you had to do was come in and ask for them."

Baker said the council requested information from the county treasurer that had not been received.

"We want a monthly snapshot of our finances," Baker said. "How close are we to getting that?"

"I don't know," was Brewington's reply.

"What is the balance for county general right now," Slavens asked her.

"I don't know what the balance is," she said. "Monthly comparisons (with the auditors' office) do not balance fund-wise."

However, Myers disagreed.

"I believe we are in balance except for county general," she said. She said comparison amounts were approximately $3,000 different. Myers said her office was beginning to work on locating discrepancies between the two offices.

"We need a quarterly report on income," Brown said.

Baker added, "I'd like to see it monthly. I want a figure."

Ashby explained that a cash balance is very important. "We need a cash number," he said.

Ashby recommended council members be given a copy of the yearly audit when it is received by the council president.

The issue of the county policy, which allows employees to be paid for compensatory (comp) time, was discussed. Highway Superintendent Ron Francis quoted page 20 of the county employee handbook. The policy explained employees are to be paid for any amount of comp-time over 240 hours.

"No other county pays supervisors for comp-time that I'm aware of," Ashby said.

He said it would be costly for the county to pay Awwad for suspected accumulated comp-time.

"I don't know of any business that pays for comp-time for supervisors," Cripe said.

Francis said Awwad would not have comp-time when he left his post.

Brown pointed out the handbook dictated everyone employed at the county highway is required to work 40 hours per week. However one employee works 40 hours, gets paid for 36 hours, and is granted comp-time for the other four hours each week.

"We must share with department heads the understanding of what the problem is," Brown said. "We want to give them the opportunity to become part of the solution to the problem."