Board chair concerned about county's operating funds

LEE COUNTY - Lee County Board Chairman Matt Pflug expressed concern Monday about the status of the county's operating reserves.

Pflug said the county is currently carrying about $1.4 million in it's operating fund, according to Budget Director Cindy Renstrom, and that's about half of what the county likes to have in reserves.

"I've talked to Cindy about this and I don't know that any of you are aware of it, but our reserves have gotten critically low," Pflug told the board at the end of Monday's regular Lee County Supervisors meeting in Fort Madison.

"What does that mean? We've gotten down to $1.4 million. We don't like to get that low and really we don't like to get below $3 million."

The county has absorbed the front end of costs associated with the start up of the Lee County Ambulance service, but Pflug said that fund should start evening out soon. He said county officials knew they would have to absorb costs initially until reimbursements and payments started coming in for services.

"Keep in mind that the ambulance has done some of this. Getting that started up has caused some of this, but eventually we'll see more money out of that."

Pflug asked Renstrom if the county had ever been that low and she said maybe a couple times before she took over managing the budget.

Pflug said the county used to give to many groups but has since shut a lot of that funding off.

"This is kind of a snapshot of what can happen if your giving money to this group or that gorup. They all are viable, but we have to run this county as a whole. Going forward we need to really keep that in front of us," he said.

Supervisor Ron Fedler said the current situation will get heavy consideration when the county takes up budgeting sessions again in 2023.

"This is going to make budget time come January very difficult," Fedler said.

Pflug said the county is starting to bring in tax revenue and things are starting to look a little better, but he said the county has to be careful not to run out of funds.

Renstrom said people don't realize when they see fund balances during budget times, that money is there to pay the bills until revenues come in.

Fedler said he was aware of the situation, but was glad Pflug brought it up during the public meeting.