Commissioners pass 2005 budget

CHARLESTON - Spending more than comes in may work for the federal government, but can only last so long for Mississippi County.

Mississippi County commissioners passed the county's 2005 budget during their regular meeting Thursday.

The 2005 budget is "not a good budget," according to Junior DeLay, county clerk and budget officer for the county. "When your surplus levels are forecast to decline it's not a good budget."

Total revenues for the county are projected at $5,799,773.41 in the budget with $6,593,781.84 in expenditures budgeted for an operating deficit of $794,008.43 for 2005.

"The cumulative fund balance on Jan. 1, 2005, totaled $1,506,252.29, thus the net funds available for appropriation are sufficient to cover the annual operating deficit," DeLay said during the delivery of his annual budget message.

The general revenue fund began 2005 with a balance of $594,710.47 and has revenues of $1,472,300 forecast, making a total of $2,067,010.47 available for appropriation.

As appropriated expenditures for general revenue are $1,896,292.83, the projected year-end balance is $170,717.64 for the fund.

"Operating expenditures for each operating department within this fund mirror that of the previous year as county officials who operate from this fund continue their prudent financial management," DeLay said.

DeLay said the general revenue fund needs sales tax revenues to stay up and the Mississippi County Detention Center to become more self-sufficient so the fund can minimize its transfers to the law enforcement fund.

"Over the past three years, the detention center's revenue peaked and began a gradual decline, but expenditure levels have continued to rise at an alarming rate, particularly in the last fiscal year," DeLay said. "As a result of that fund's overspending its initial appropriation by $193,508 and generating $138,151 less revenue than what was forecast, the general revenue fund had to transfer an additional $332,000 over the budgeted allocation for 2004, an amount that caused the general revenue fund's ending year balance to decline for the first time in several years."

In 2005, "this fund will once again require a large transfer from the general revenue fund to remain solvent, and the size of this transfer will once again cut into the general revenue surplus funds," DeLay said.

DeLay said the road and bridge fund "will be financially challenged this year, just as in '04, as funding levels are lower than they have been in several years." It begins the year with a balance of $125,848.64 and projected revenues of $1,211,453.00.

"The highway department attempted an alternative methodology to paved roadway maintenance last year as the 'chip and seal' method was used and proved less costly than the traditional 'cold-mix' asphalt application that had been performed for years," DeLay noted. "This approach will allow the highway department to sustain the level of roadway maintenance with less available funding than the highway department is accustomed."

Four-Mile Pond Bridge is scheduled to be replaced in 2005 using Off-System Bridge Replacement program funds, according to DeLay. Federal funds will cover 80 percent of the bridge replacement cost. The project has bumped up both revenue and expenditure categories in the road and bridge fund $300,000 higher than 2004.

"In summation, I would, again, stress the importance of reversing the trend that has been established within the law enforcement fund, the practice of forecasting high levels of revenues and basing expenditure levels on that revenue forecast, and subsequently not curtailing the expenditures to correlate with the actual revenues generated," DeLay said in the budget message's closing remarks.

"As budget officer, I will be working very closely with the new administration in the establishment of sound fiscal policies and the utilization of sound fiscal management principles. I, again, applaud the county officials who operate from the general revenue fund in how they manage their budgets wisely and expend funds only for necessary items," he said.

County officials are hoping revenue from boarding Immigration and Naturalization Service prisoners, which DeLay described as "a roller coaster," will pick up some. "If it doesn't, they'll just have to start curbing expenditures," DeLay said.

In other Mississippi County business Thursday, commissioners refused to approve a professional services contract for the county assessor's office.

Although a contract for appraisal services was a budgeted item with $11,000 appropriated, commissioners found no evidence of a bidding process.

"How can you do that without a bid?" said Presiding Commissioner Jim Blumenberg. "Is that legal or not? ... If he doesn't have a legal bid I can't sign off on it."

State auditors see a difference between approving $1,000 each month for the services and approving a $11,000 contract, commissioners agreed.

Commissioners will meet with auditors Tuesday.

"I assume it's going to be the final," DeLay said. "She did say 'exit conference' - but then last time she said 'exit conference.'"

Auditors reportedly only have about three or four findings for commissioners about the general revenue fund.