Delay in revenue causing cash-flow problems for county

It makes sense for homeowners to wait. They can accrue just a little more interest on their money before turning it over to the county.

For Dyer County, though, the delay causes a cash-flow problem. The bulk of the county's revenues don't arrive until halfway through the budget year.

One glance at the current budget illustrates the situation.

In the first four months of the fiscal year, the county collected $1.4 million in revenues, or about 13.66 percent of all anticipated revenues for the year.

The county spent about $3.26 million, or about 30.40 percent of all budgeted expenditures.

To cover the General Fund expenses until the revenues arrive, the county borrows money from its Debt Service Fund. County Trustee Judy Patton said $550,000 has already been transferred from Debt Service to provide cash flow in the General Fund.

The practice works, but it is making county officials a bit nervous this year - given the economic situation.

Patton said property tax collections last month were the lowest she's seen since the 1990s. The total was $400,000 below collections from October 2008. Of course, she noted, collections in October 2008 were the best she's ever seen.

Sales tax collections also were down 4.5 percent between this year and last year, Patton said. She hopes the holiday shopping season will help the sales tax collections return to normal.

Patton met recently with members of the Dyer County Commission's Budget Committee, who are keeping a careful watch on the budget this year.

County Mayor Richard Hill acknowledged that one-third of the budget year has passed and the county has spent slightly less than one-third of the budget. But, revenue collections are nowhere near one-third. "The cash money is not there," he said.

"We can control expenses, but we have no control over revenues," Hill said. "We have practically no income for the first six months" of the budget year.

Just because the budget was approved and went into effect on July 1 doesn't mean the money is there, the mayor said. Hill worries people don't understand that.

"How do you get that message across?" he asked the budget committee.

While some expenses can be delayed for a few months, the $150,000 payroll must be paid every two weeks - regardless of whether people have paid their property taxes.

For Steve Walker, a county commissioner serving on the budget committee, the percentages of money collected and money spent doesn't provide a true picture of the budget. Outside of payroll, few expenses are spread evenly throughout the year. And, some revenues are likely to be more abundant during certain months. For example, Patton said property taxes from mortgage companies usually begin arriving on Dec. 15.

Walker asked if it were possible to create a spreadsheet showing anticipated monthly expenses and revenues.

"We could see the revenue flow through the year and see how we're doing according to the plan," Walker said.

County Budget and Finance Director Nancy Broadstone said she could prepare the spreadsheet with Walker's input.

The committee agreed to meet again at 9 a.m. Jan. 11 to assess the budget situation at the halfway mark. The meeting will be held in the lower-level conference room of the Dyer County Courthouse.

In other business, the committee approved one amendment in the General Sessions Court budget. It moved $400 from "dues and memberships" to "office supplies."