Board Approves Depositing $219,000 into Fund to be Reserved for Restricted Future Purposes
Carlinville – In April, the Macoupin County Board welcomed news from its independent auditors that the county had finished “in the black” to the tune of more than $219,000 in its General Fund. Board Chairman Andy Manar credited the county board and the county officials for undertaking a dedicated and disciplined approach to the spending of taxpayer dollars to achieve the positive result.
At the May County Board meeting, Manar described the creation of a Budget Stabilization Fund as “part two” of a two step process toward paving a way for continued responsible spending practices moving forward in Macoupin County government.
“In April, we welcomed positive news of a budget surplus that showed us we responsibly spend our taxpayer’s money in Macoupin County government,” said Manar. “This month, we are capitalizing on that positive achievement by seeking a solution that will ‘lockbox’ county dollars in an effort to preserve services and reinforce to taxpayers that we understand that spending their dollars should always be considered carefully.”
At the May meeting of the County Board, Manar said action was taken to create a Budget Stabilization Fund and make an initial deposit of $219,000 which was realized as a result of effectively managing the FY 2010-11 budget. The Fund will exist as a restricted fund in the County treasury, only allowing the Board to appropriate to or make expenditures from the Fund with a two-thirds supermajority vote.
Furthermore, Manar explained that additional safeguards will exist with the creation of the Fund such as prohibiting the levying of additional taxes solely to ensure a balance in the fund and a provision restricting the Fund’s balance to be no more than 15% of the county’s total General Fund.
“The idea isn’t to create a fund with an open checkbook so that future county boards can spend recklessly,” said Manar. “By restricting the ability to actually spend this money and also specifically defining purposes for which it can be spent, we are promoting responsible spending and avoiding any possibility of this money ever being used as some type of ‘government slush fund.’”
Manar referred to the fact that on top of the two-thirds supermajority approval requirement for making expenditures, the money will only be able to be used in the future to prevent a reduction in services or employees, to cover a General Fund deficit following an audit, or for costs associated with a natural disaster.
“Ultimately, creating a Budget Stabilization Fund for the County will amount to ensuring that services for our county taxpayers remain at a quality level and that people are able to keep their jobs,” said Manar.
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