Council puts it in black and white for all to see
Joint meeting with commissioners and department heads
By Debbie Lowe Staff writer

Carroll County Council appointed a three-member finance committee earlier this year to fully examine county finances. It was suspected at that time county cash reserves had dwindled considerably over the past four years.

As a result of hours of research, council finance committee members Ann Brown, Steve Ashby and Ron Slavens presented a written report detailing their findings at a Thursday morning council meeting. Community members, along with commissioners and department heads were given the opportunity to comprehend what appears to be a dire county financial situation.

"These are important facts you need to know to explain why we are in the position we are in," committee chair Brown explained as she distributed the report.

According to the report, the county budgeted more than it received each year since 2002. Each year the deficit increased, from $715,235 in 2002 to $2,389,053 in 2006.

"The tax money we received from the state was less than expected," Brown said. "And the tax money we receive from this county does not begin to cover our budget."

Brown continued by explaining the solution lies in spending much less on the county level.

"We are going to have to live without some things," she said.

Brown explained all counties have what are known as "restricted funds," which contain money for specific projects and accounts. Examples of restricted funds include, but are not limited to, cumulative bridge fund, cumulative capital improvement, tax increment financing, area plan, health department, highway department, book fees, property reassessment and other various funds.

"Restricted funds are those funds that cannot/should not be spent for other than the intended purpose," according to the report distributed by Brown. "It appears we are currently operating on our restricted funds," it continued. "If approved and spent, those amounts must be repaid to the accounts before year end."

The report continued to state county auditor Beth Myers had not provided an income report to the council since the beginning of 2007. However it was deduced that, "if the income trend of past years is repeated, with less income received from the state than expected, county government most likely will not be in a position to repay those accounts."

"We must align our expenses with our income," Slavens stated. "There is no smoking gun."

Brown said the committee did not believe that money was spent needlessly, but that the amount of income received by the county had to be monitored closely to begin to correct the problem.

"We know we have to spend less and we're asking for your cooperation," Brown told department heads and commissioners.

"This situation is not unique to our county. It is happening in other communities as well," Ashby added.

After the presentation, department heads were invited by council president Rob Baker to stay for the remainder of the meeting or they were free to go. Most left. Council members then proceeded to address remaining agenda items, which included two library board appointments, one transfer and a report by Baker about a meeting he had with sheriff deputies and jail staff to quell rumors and discuss the county financial situation.

After the agenda items were exhausted, but before the meeting adjourned, Myers announced she was adding agenda items for discussion. She informed council members she was not required to place the additions on the agenda prior to the meeting, although the request was made by Baker.

Myers told council members she prepared an income report, then dis- tributed it around the table.

"I've never been asked for these reports before," Myers stated.

She said she worked the previous Wednesday afternoon, after the courthouse closed for the business day at noon, to prepare the reports. Myers said she did not prepare an expense report "because I did not want to kill a tree."

"There was no discussion about the income reports because that was the first the council had seen them," Brown told the Comet in a follow-up interview about the lack of discussion of the new reports. "We couldn't start discussing the information until we had time to digest it."

Sheriff Tony Burns told the Comet on Friday that he did not understand how the county could get into the current financial situation without the council knowing what was happening.

"You should be able to require monthly reports for information," he said.

Burns likened operating a county to operating a business.

"Any business owner knows where they stand financially," he said. "I don't know how we got to this point. I think from this point on, they (county council) have to have monthly reports about what comes in and what goes out."

"The council has a very tough job ahead of them. I wouldn't want to be in their position," Burns added. "All I can do is do my part, and I support the council to fix this problem - it's a good council."

Prosecutor Tricia Thompson said she has found ways to reduce her office's spending, but not because of the current situation.

"I'm just being responsible as a department head," she said.

County assessor Doris McLeland said she was surprised to learn the county is operating on restricted funds. She said she thought the purpose for the department heads to be specifically invited to the meeting was to be asked to reduce their workforce in 2008 to save money.

"It was helpful to have the information in black and white," she said. "I'll consider that information when I develop my 2008 budget."

McLeland further suggested council members meet one-onone with department heads to give them the opportunity to provide input about ways the county could save money across the board.

Although all three commissioners attended the meeting, none asked a question or offered a thought or opinion. However, commissioner Loren Hylton spoke to the Comet Thursday about the information learned at the meeting.

"It's very confusing," he said. "We aren't even holding steady. I believe there's a definite trend."

Hylton said the commissioners will play a role in "getting things back in line." He said the record keeping system may need to be updated and said the concept of a county manager "might be a good thing."

"I hate to stop bridge projects," he added. "I realize this needs to be addressed."

Other business

Marion Hathaway was appointed to the Camden-Jackson Township Library Board and Wayne Esserman was re-appointed to the Flora-Monroe Township Library Board.

Commissioners were granted a transfer of $2,500 from the cost of keeping juveniles to unemployment.

Council members Jerry Hendress, Nancy Cripe and Baker met with jail employees and deputies to discuss rumors circulating about the county's financial situation.

"They heard what was going on, but not what they wanted to hear," Baker reported.

Hendress noted that incomegenerating departments must compare income to expenses and look for a way to cope with delinquent payments to become more independent from county financial assistance to survive.

"It's business - cash flow is what the whole thing is about," Councilman Carl Abbott responded.

Baker said council members will be expected to exhibit a shift in mindset from previous years as they begin to discuss the 2008 budget at a special June 7 meeting. He recommended each member look at essential versus non-essential expenses for county government in developing recommendations.

Although not on the agenda, highway superintendent Ron Francis requested an additional employee for his department. He explained that due to a mathematical error, one position was omitted in the 2007 budget request. He was told to bring the matter to the next council meeting.

Myer asked if a cell phone reimbursement policy was developed to guide her in knowing what amounts to reimburse to county employees for use of their personal cell phones for county business.

Although no policy to determine amounts for reimbursements is in place, she was directed to require the standard documentation of expenses before making any reimbursements.

The next council meeting will be June 7 at 8:30 a.m. This will be a special meeting to discuss the 2008 budget.

The next regular council meeting will be June 27 at 8 a.m.