County looking to fund $9 million in capital projects

Avery Shanahan, The Leader-Telegram, Eau Claire, Wis.
·2 min read

Sep. 13—EAU CLAIRE — Eau Claire County could utilize increased revenue and American Rescue Plan funds to lower borrowing costs to finish out the 2022 budget, officials said Monday.

The county is looking to fund more than $9 million in additional capital projects for the remainder of the 2022 fiscal year.

The Eau Claire County Finance and Budget Committee discussed a resolution Monday to authorize borrowing an amount that does not exceed $9.5 million to fund the projects.

The committee voted against recommending the resolution to the County Board, concluding that the borrowing increase could raise taxes for Eau Claire County residents and raise the debt service for the county.

"I am a person that believes in transparency and this is anything but transparent when you put a tax increase on the people without giving them an opportunity for input," Supervisor John Folstad said.

County Board Supervisor and Committee Chair Dane Zook agreed and stated that the funds could be found elsewhere.

Zook cited a significant revenue increase from sales tax and undesignated ARPA funds could be use to alleviate the borrowing amount.

"We have sufficient funds to pay the bills by the end of the year without going to borrow," Zook said.

The county has about $5.3 million of ARPA funds in the 2022 adopted budget from revenue replacement and general ARPA funding that could be used.

Finance Director Norb Kirk said the resolution only proposed not exceeding the amount and doesn't specify the specific amount borrowed. However, there is a need to specify the bond amount sooner rather than later so the debt issuance can be budgeted for 2023.

Although the committee did not recommend the resolution, the County Board will still be presented with the resolution for consideration.

Quarter 2 financial report

Finance Director Kirk also presented the committee with the quarter 2 financial report.

The county had several annual and multi-year software contracts that came due in the second quarter which affected the results of the report.

"If you exclude that then we were relatively above where we were last year at this time from a general fund perspective," Kirk said.

Some of the highlights of the report include the increase in highway expenditures due to the construction of the new highway facility, a decrease in unpaid taxes and an improvement in full-time employee vacancies.

"At the end of Q2, I'm showing 46 I think that improved quite a bit even from that point to where we're at right now," Kirk said.

County Administrator Kathryn Schauf told the committee there are 17 full-time vacancies in the county, but noted that the number can fluctuate.

Kirk also noted inflation has not had a significant impact on county sales tax collection.