By BRADEN LAMMERS
Braden.Lammers@newsandtribune.com
CLARK COUNTY —
The Clark County Council entered its meeting Friday afternoon with a plan to cover the $3 million gap between the budget it submitted and the certified budget that came back this month from the state Department of Local Government Finance.
It was going to use the $3,185,750 left in the county’s rainy-day fund to cover the difference. Even after the council agreed to move forward with that plan, $96,393 remained in the fund, which the council promptly spent.
The county council approved $38,261 in additional appropriations to be paid to the Clark County Treasurer; $2,500 for additional appropriations for fuel to Weights and Measures; and $55,632 paid to the Clark County Clerk for salaries.
All of the money came out of the county’s rainy-day fund, and each motion passed unanimously.
“I would just point out that totally does wipe out the rainy-day fund,” said Council President Jack Coffman before the final vote to appropriate money to the clerk’s office.
Additional money that will float the county through the remainder of the year will hopefully come from the Clark County Commissioners. The council will ask the commissioners to pay for encumbrances left over from the previous year in the amount of $523,190 out of the Cumulative Capital Fund.
The amount excluded $104,000 in encumbrances for the county jail, which is planned to be paid out of Local Option Income Tax money, a tax that was approved late last year.
“If that doesn’t get approved, we’re going to have to lower the budget you already have,” said Councilwoman Barbara Hollis.
To address additional costs the council will still have to cover, it pledged to pay $85,125 out of the county’s riverboat fund when the disbursements are collected in August. That will cover operations for the Purdue University Clark County Extension office, Soil and Water office, the Auditor’s office and the council.
But more costs may still be incurred. A reassessment that may be facing the county would continue to eat into its reserve funds.
The cost to do an 18-month reassessment — the reassessment would begin in June and must be completed in May 2012 — could be paid over the span of three years, and is likely to cost $600,000 each year.
In addition, tax bills likely would be late again if the county is forced to do the reassessment. This year’s bills are expected to be due on time for the first time in three years.
“There has never been tax bills go out on time in the year of a reassessment,” said Assessor Vicky Kent-Haire.
Late tax bills likely would add costs to the county because it would be forced to borrow money and pay interest to cover its expenses. It also would make future budget planning more difficult.
“If we do have to spend the $600,000 [a year] for reassessment and if they do approve the encumbrances, that will pretty much, I think, take care [of the balance in the cumulative capital fund],” Hollis said.
But what happens going into 2011 with no money left in reserve?
“This really spends down absolutely everything we have,” Hollis said. “It makes us live fairly decent this year, but then we will have nothing going into next year.”
To address concerns going into 2011, Clark County is applying for an excess-levy appeal. But the appeal is at the discretion of the DLGF and if it isn’t approved, more cuts are likely.
“If we do not get any excess-levy appeal next year, we will have, in round numbers, $11,150,000 [to spend],” Hollis said. “This year, we’re budgeting $13,800,000. So that means that there will be drastic cuts next year, barring approval of an excess-levy appeal.”
If unforeseen costs pop up before the end of the year, the council will be stuck asking the commissioners for money.
“We will have to go to the commissioners and use the cum cap fund,” Coffman said. “And that is considered an emergency fund and anything that would happen from now on would be considered an emergency.”
But if the commissioners are forced to pledge money to cover the reassessment, nothing will be left in their reserve account to help cover emergencies.
The options will then be slim for the council.
“Then we’ll have to discontinue spending at the end of the year,” Hollis said.
IN OTHER BUSINESS
• The council approved a salary ordinance for Superior Court No. 2 in the amount of $99,630, which was tabled from a previous meeting and required no additional funding from the county.
However, additional appropriations requested from Superior Court No. 2 in the amount of $94,822 were tabled for the next meeting.
The additional appropriations were issued in the form of a mandate by Judge Jerry Jacobi to acquire the funds. Discussion on that will take place in an executive session scheduled for 4 p.m. April 12. The session would be allowed to be closed to the public, as the mandate can be viewed as threatened litigation.
• The county council approved the transfer of funds for $47,900 to the Board of Aviation for a salary ordinance, which had been approved at a previous meeting. The actual salary totaled $35,750, but with all benefits added in rose to the amount transferred.
• Approval of $534,500 to fund operations for the Building Authority was granted, but must still be approved by the commissioners to be paid out of County Economic Development Income Tax funds.
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CLARK COUNTY FUNDS BY THE NUMBERS
• GENERAL FUND SUBMITTED — $13,810,111
• BUDGET CERTIFIED BY STATE — $10,720,754
• DIFFERENCE — $3,089,357
• RAINY-DAY FUND — $3,185,750
