Agenda Item Request
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Authorize the County Treasurer to adjust the Tax Stabilization Reserve, the Special Revenue accounts, establish Capital Reserve accounts and re-authorize ARPA interest funded expenditures.
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Background and Purpose of Request
County staff have been working on the County’s Special Revenue chart of accounts, some dating back a number of years. Some of these accounts had negative balances and would require funding to be credited to eliminate the liability. Additionally, staff have looked at establishing a more consistent and sustainable way to aid in the funding of the capital budget through the development of “reserves”. Lastly, items that have previously been presented as using ARPA interest funding are brought forward for re-authorization in order to formally account for these large projects that the interest was used to fund.
Special Revenue Accounts
The Issue: Long-standing negative balances in Special Revenue funds are being carried forward as liabilities.
The County Commissioners must execute authorization to credit these accounts and eliminate the liabilities.
ACFR Impact: This eliminates negative fund balances; which auditors view as a red flag. It prevents future material weakness or significant deficiency findings in your annual audit
Capital Reserves and Contingency Limits
Capital Reserves: Formally establishing these accounts through dedicated revenue streams is an excellent way to smooth out short-term capital spikes.
Contingency Reserve Limitation:
The county budgets $45,000 annually for the Commissioners' emergency fund.
The state statute caps this specific reserve at $100,000.00.
Action Needed: Because contingency funds roll over, you must implement an accounting control that prevents the cumulative cash balance from exceeding $100,000. If the balance reaches $100,000, further annual appropriations must be paused or redirected.
ARPA Interest Re-Authorization
The Request: Re-authorizing capital and operational costs previously charged against ARPA interest earnings to formalize them under the ARPA funding source.
The Rules: The U.S. Treasury allows local governments to utilize interest earned on advanced ARPA State and Local Fiscal Recovery Funds (SLFRF). However, these interest earnings are not subject to the strict ARPA programmatic restrictions and deadlines. They become local funds, but they must still be spent in accordance with state law and local procurement policies.
Action Needed: Pass a formal re-authorization through the Board of Commissioners. This creates a clean paper trail for auditors, showing that while the funds were initially approved, they are now officially categorized and tracked under the formalized ARPA-interest budget line.
1. Motion to transfer $427,348 from the MAT Reserve Fund (Account # 31067) to Account
#51389 to cover medication-assisted treatment (MAT) expenditures.
2. Motion to establish the following reserve accounts:
- A “Buildings and Grounds Reserve” for the purpose of funding necessary maintenance
of County-owned buildings and grounds.
- A “RCC Radio Communications and Frequency Reserve” for the purpose of funding
radio communication initiatives, such frequency sharing and acquisition of P25 licenses.
- A “Non-Public Safety Fleet Reserve” for the purpose of funding acquisition and
maintenance of County vehicles used by County departments not involved in law
enforcement functions.
- A “Regional Service Expansion Reserve” for the purpose of funding the development of
new County-run regional services.
- A “Cross Insurance Reserve” for the purpose of funding maintenance and capital
improvements to the Cross Insurance Arena.
- A “Fire and EMS Reserve” for the purpose of funding initiatives and equipment to
support regional fire and EMS collaboration.
3. Motion to transfer a total of $4,646,013.45 from the Investment Revenue Account
(Account #54000-4901) to the following accounts:
- $250,000 to Account #31342-4008
- $390,000 to Account #70601-4100
- $205,000 to the Buildings and Grounds Reserve Account
- $200,000 to the RCC Radio Comms/Freq. Reserve Account
- $100,000 to the Non-Public Safety Fleet Reserve Account
- $300,000 to the Regional Service Expansion Reserve Account
- $230,000 to the Cross Insurance Arena Reserve Account
- $75,000 to the Fire and EMS Reserve Account
- $1,400,304.59 to Fund 21
- $214,092 to Fund 31
- $54,052 to Fund 42
- $11,186 to Fund 51
- $135,198 to Fund 52
4. Motion to transfer $400,000 from the Tax Stabilization Reserve Account (Account #
31391-4100) to the following accounts:
- $125,000 to the Buildings and Grounds Reserve Account
- $50,568.67 to the RCC Radio Comms/Freq. Reserve Account
- $75,000 to the Regional Service Expansion Reserve Account
- $148,931.33 to Fund 21
- $500 to Fund 31
5. Motion to re-authorize a total expenditure of $1,081,180.80 previously made from the
Investment Revenue Account (Account #54000-4901) for the following purposes:
- $26,850.28 for Recruitment
- $997,617.35 for Northport Construction
- $56,713.17 for Cross Insurance Arena maintenance
Funding Amount and Source: Special Revenue Accounts, Tax Stabilization Account and ARPA Interest
Effective Date: June 15, 2026
Attachments: Spreadsheet showing the proposed use and transfer of funding.