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Cash flow looks good

County finances spur optimism

Butler County officials expect no fiscal woes headed into 2017.

The county has collected 78 percent of its 2016 general fund revenue and covered 44 percent of its expenses at the year’s halfway mark.

“Each department is under 50 percent,” said county chief clerk Scott Andrejchak.

He anticipates the county’s general fund balance will remain healthy.

“I’m cautiously optimistic,” Andrejchak said.

He credited the discount for early payment of property taxes as a good incentive bringing in revenue promptly.

“That does help the budget,” Andrejchak said.

Commissioner Leslie Osche, board chairman, said the numbers are encouraging.

“I’m pleased they’re not out of line,” Osche said.

According to the controller’s office, the general fund has roughly $21 million.

Of the total $150.6 million county budget, nearly $62 million is for general fund expenses and revenue.

Most of the county’s budget is pass-through state and federal funding for state-mandated programs.

Commissioner Kim Geyer said county finances appear in good shape.

“We’re moving in the right direction,” Geyer said. “We won’t be surprised at the eleventh hour.”

Commissioner Kevin Boozel agreed.

“I think the end of year numbers will tell a really good story,” he said.

County Controller Ben Holland said there is time to further improve the bottom line.

“They have a half a year to prune it further,” Holland said.

Osche pointed out the county is ahead compared to last year.

The county has repaid the $7.5 million tax anticipation loan (TAN), which government entities use to cover operational costs until tax revenue is collected.

Along with the TAN, the county already made the required contributions to the county pension fund and quarterly contributions to Butler County Community College.

“We were really lagging behind last year in payments,” Geyer said. “It’s because the cash flow was dwindling.”

She said this may be the first time the county paid the TAN this early in the year.

Holland lauded the commissioners for paying obligations promptly.

“I give them a lot of credit for working with this office to make those payments,” he said.

Andrejchak said the monthly budget review process begun under the board, which took office in January, is essential in ensuring the county has sufficient funds.

“It’s a way to identify a problem,” he said. “It allows you to take corrective action.”

The 2016 budget included a 3-mill property tax increase passed by the prior board to generate revenue.

The current commissioners then worked with departments and row offices to make reductions this year.

“I thought there would be more resistance,” Boozel said. “I’m pleased with the cooperation.”

Geyer said the county is continuing to refrain from filling staffing vacancies that arise as well as chipping away at expenses wherever possible.

She said a $2,000 contract for black fly suppression in Slippery Rock was not renewed.

Boozel said the board also planned for the eventuality of another state budget impasse.

“We made a lot of changes,” he said. “We just started to steer this ship.”

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