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HARTINGTON — County Commissioners are looking for a new way to save funds.
During their July 22 meeting, the Cedar County commissioners discussed and approved a plan to incorporate “sinking funds” into their budget.
Cedar County Clerk Jessica Schmit brought the proposal before the board after the matter was brought up at a recent statewide budgeting workshop she attended.
“With the changes in the budget procedures, one thing that was talked about by the state auditor was using recipient funds so individual budgets can remain consistent,” said Schmit.
The sinking funds would be special savings accounts set aside by the county for future big expenses. Instead of waiting until something breaks or needs urgent attention, the county sets aside a little money at a time so they’re prepared when the cost comes up.
Schmit used an example of common vehicle extensions or purchases.
“I know other counties are using it,” said Schmit. “Every four or five years, they need to purchase a vehicle, and they adjust their budget $30,000 in that year. That is going to be harder to do with the new budget calculations. (With the sinking funds) they’ll put five or six thousand in every year, and then it doesn’t change their tax request when that purchase needs to be made.”
Schmit and County Commissioner David McGregor agreed more counties will likely be implementing this plan after the recent workshop stressed its importance.
“Two of the counties that I talked to just did the same thing last month,” said Schmit.
Funds for the outlet could be budgeted into already existing budgets or could simply be remaining funds that were not used or needed.
“Let’s say you have a terrible winter and there is nothing left at the end of the year to transfer in there, but other offices have consistency, and they can transfer that into the budget,” said Schmit.
Having a shared pot of funds could be an asset to community programs, allowing easier access to funds when needed.
“If I have left over (funds), I would push that into there and then in maybe two and a half or three years, we have enough for a patrol car or something,” said Cedar County Sheriff Larry Koranda.
Schmit said this was the correct idea, and the philosophy could be applied to other departments as well. She said in years past, if there was money you didn’t spend in your budget, it would go into a general fund, but now it could be better dedicated to a department’s needs.
“There was no incentive to pinch pennies back then,” said Koranda. “Because you use it or lose it, but now if you don’t use it, you can save it for a rainy day.”
The idea was adopted and will begin application when budgets reset.
Also at the Tuesday meeting, Nebraska Association of County Officials analyst Luke Bonkiewicz, said the organization is looking to continuously update its website with new information on counties.
