May 7, 2008 By Amy Zalar 3 min read

The Fayette County commissioners on Thursday will consider transferring the county’s $1.7 million fund balance from the general fund to other funds in which it can be used for future projects. The proposed action came at Tuesday’s agenda meeting following a suggestion of Commissioner Angela M. Zimmerlink, who first brought the issue to her colleagues earlier this year.

Zimmerlink said the audit ending Dec. 31, 2006, showed a fund balance of $1.7 million. Zimmerlink said she didn’t want the surplus to remain there.

The commissioners voted to place on Thursday’s agenda a motion to allocate the fund balance ending Dec. 31, 2006, from the general fund to the capital reserve fund, capital projects fund and operating reserve fund. Zimmerlink said she only has an estimate of what the fund balance was at the end of 2007.

Having a $1.7 million fund balance is a far cry from the county’s financial status a few years ago when deficit projections were made of several million dollars.

Zimmerlink said there are $107,000 in the capital reserve fund and $3,600 in the capital project fund.

“We should consider an operating reserve fund,” Zimmerlink said.

Zimmerlink said the prior board of commissioners increased the millage rate 11/2 mills to go effect in 2005, and subsequently reduced the millage by one-quarter mill each year after that.

She said with a fund balance now of $1.7 million, it may be time to again look at decreasing the property tax levy and put some money back in the taxpayers’ pockets.

Commissioner Vincent A. Vicites expressed concerns about putting money in a capital reserve fund, saying only capital projects could be funded using that money.

Zimmerlink said the county code stipulates what money placed in any of the funds she has proposed could be spent on. She said it must be made clear that none of the surplus money can be spent without a specific resolution.

“It’s only wise for the county to earmark money in those funds to look at what type of projects the county needs to get involved in to enhance buildings, machinery or equipment,” Zimmerlink said.

Zimmerlink pointed out that a one-quarter mill decrease amounted to $900,000.

She said the millage needed to be increased several years ago but now the commissioners need to make sure they are being fiscally responsible.

Vicites said having a surplus now confirms that in 2004 when a deficit was projected that necessitated the need for the tax increase, it was $1 million less that what was projected.

During public comment, Delinda Young referenced the surplus when speaking in favor of the county undertaking an exhaustive voter purge. She urged the commissioners to not drop the millage rate until the county has funding a purge of the voter rolls. Young also suggested that some budget surplus money could be used to pay for the eScan voting machines the county purchased earlier this year.

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