Southern Utah News Articles
Top Stories for March 16, 2011
Commission studies cash flow of county money
Kane County Commissioners and elected officials met for an educational session on how the money flows in county government.
Clerk/Auditor Karla Johnson and Treasurer Georgia Baca led a discussion in an effort to simplify a very complicated and detailed account of how the county cash flow works. Using bucket shaped diagrams, they separated the different layers of complexity into understandable bites of information.
Using bucket # 1 Baca mapped out how money, funding, finances and reporting work. The county has money in the three banks in Kanab, as well as a Public Treasure Investment Fund (PTIF) through the State Treasurer. The county complies with all the terms of the Utah Money Management Act.
Johnson, using bucket #2, explained the complexities of where the money goes and what restrictions apply to each fund. There are seven major funds:
•Fund #10 General Fund, which covers most of county expenditures, where property and sales taxes are allocated.
•Fund #21 is the B & C Road money.
•Fund #42 is Capital Depreciation, money that is used for long-term purchases.
•Fund #43 is SITLA.
•Fund #45 is the Municipal Building Authority (MBA) used for construction.
•Fund #48 is the Public Safety Facility. This fund was recently created so the county can track revenues and expenditures and specific costs related to the facility.
•Fund #74 is the hospital 1% and is a pass through; all of the money is committed to the hospital.
Most of these funds are restricted, by code, on how the money can be spent. There are an additional 25 funds covering general governmental, revenue funds, bonds, capital and trusts.
Additional discussion regarding recent construction noted that the Southwest Public Health Building, the hangar and the Bullfrog Substation are paid in full. The mental health building is paid for in a pass through from South West Mental Health Funds in and out of the MBA fund. The Search and Rescue (SAR) building is paid for from a strike force grant and some TRT funds transferred to the MBA. The Public Safety Facility will be paid for from inmate revenues. Mineral lease monies, and sales tax may also be used if needed.
Grant money is important to the operations and utilities of the county and for those few grants that are reimbursable, the county budgets their utility in advance. Special Improvement Districts (SID) are formed for improvements such as roads, etc., and will have a special account.
People move into rural areas. As the area grows, the needs for more infrastructures develop. The county will maintain, but it is the resident’s responsibility to pay for those improvements.
Bucket #3 is Cash Flow. The revenue coming in bucket #2 is what drives cash flow in bucket #3. The county is spending money each month, yet most of the incoming money is in the month of December. According to State Statute, the county must keep a certain amount of money at all times. If revenues run low, the county is forced to do cash flow borrowing. Most counties will need to borrow in order to make it through the year. Kane County has not had to cash flow borrow since 2008. The commissioners were full of questions and requested a more detailed session on the complexities of bucket #3, revenue and cash flow at the next meeting.