June 10, 2021 at 1:12 p.m.
Cass County debt free at the end of 2012
The state expects to complete an audit of Cass's 2012 records Friday, so numbers Wolfe presented Tuesday are unaudited. State audits in recent years have not materially changed Cass's final financial report.
Cass County had no outstanding debt at the end of 2012.
The county had combined ending fund balances of $61,876,208 as of Dec. 31, 2012, an increase of $1,831,786 over the $60,044,422 the county had at the end of 2011.
Of that total, $12,584,087 (20.3 percent) was restricted, meaning it was unspendable or could only be used for an already assigned use.
The unrestricted balance of the total, $49,292,121 (79.7 percent) included $11,200,000 that was already committed, $28,300,317 that was assigned and $9,791,804 that was unassigned.
The unassigned balance is only used in the general fund unless there are deficit fund balances in other funds, Wolfe reported.
At earlier meetings this year, Wolfe has informed the board he does not expect the county to show significant fund balance increases in future years. This is because the county board has chosen to maintain the same dollar levy for six years and has set that same goal for 2014.
Through 2012, the county has operated on fewer dollars than levied and received as expected income. In fact, in 2012, the county actually received more income than the budget anticipated.
By holding levies at the same amount, the gap between income and expenditures has narrowed. As costs rise, Wolfe expects the county will reach a point where there will be less carry-over into the next year or not any.
Further restricting how a county can spend any carry-over funds are state laws, which restrict a county from spending some money from one fund for a shortfall in another. For example, money designated for human services uses cannot be spent on a road, nor can state aid highway money be spent on a county road or for human services needs. General fund money may be spent for any purpose the county board chooses or to cover a deficit in another fund.
Cass has five primary funds within the total fund balance.
Cass General Fund unrestricted fund balance at the end of 2012 was $19,410,309, compared with $18,023,607 at the end of 2011, mainly due to income exceeding expenditures. The office of the state auditor recommends that counties maintain unrestricted fund balance in their general fund of 35 to 50 percent of operating revenues or no less than five months (41.7 percent) or expenditures. Cass was at 54 percent of operating expenditures.
Road and Bridge unassigned fund balance at the end of 2012 was $2,290,469, down from $4,277,143 at the end of 2011. This reduction was due to additional construction projects undertaken during the year. The 2012 balance represented 16.5 percent of operating expenditures.
Road and Bridge Fund balances may vary widely from year to year, depending upon the stage of completion (therefore state aid fund receipts and expenditures) of various road construction projects for that year.
Health, Human and Veterans Services unrestricted-assigned fund balance at the end of 2012 was $12,380,307, up from the $10,064,444 end 2011 balance, primarily due to lower expenditures. The end of 2012 balance represents 112.3 percent of operating expenditures.
Capital Projects assigned fund balance at the end of 2012 was $11,820,309, compared with $11,439,264 at end of 2011. This balance is held for future capital projects such as a future law enforcement center and courts building.
Administrator Robert Yochum noted the county board has set a policy that any unassigned fund carryover money held at the end of a year and money placed in the capital fund must be spent only for purchases of items that have an expected life of at least 10 years.
Cass also has a Forfeited Tax Sale Fund, which is generated from the sale of timber or haying rights from county land or the sale of tax forfeited land. These sales receipts are shared annually with the schools, cities and townships where the sales took place. In 2012, those distributions totaled $1,396,809, up from $375,000.
The increase came largely from a higher number of land sales in 2012.
Actual total Cass revenues in 2012 were $976,214 more than the final budget, with intergovernmental revenues representing $649,560 of that. Actual expenditures were $701,640 less than the final 2012 budget anticipated.
Cass had $118,614,963 in assets at the end of 2012, including land, infrastructure, buildings, machinery, furniture and equipment and construction in progress.
Second publication rights after Brainerd Dispatch.
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