County Treasurer provides 4th quarter finance report

DAYTON—County finances have “definitely” been affected by the flood and COVID-19, said County Commissioner Ryan Rundell, following an update on fourth-quarter finances from County Treasurer Carla Rowe last week.

“As Carla said, because we are a bare-bones taxed county, we have been less affected by COVID-19 than some counties who rely on extra taxes, like an entertainment tax, with large venues, and the like. However, the flood coupled with COVID-19 has done visible damage to the county and its finances.”

Rundell said he is cautiously optimistic but wants to be prepared for a worst-case scenario.

In her report, Rowe reported on 2020 property tax collections. There is an outstanding balance owed to the county of $722,000, 71-percent of which one taxpayer owes. There is a payment agreement in place and is being honored by the taxpayer, she said. The majority of the property tax collection for 2020 is relatively normal, she told the commissioners.

Rowe is concerned about state legislation that has been introduced, which would give the state treasurer’s office the authority to extend by twelve months leniency given to taxpayers beyond the terms of the current state of emergency for COVID-19 relief.

The outstanding balance for the Current Expense Fund is $109,000, and the outstanding balance for the County Road Fund is $119,000, she said.

Sales Tax Revenue for the fourth quarter in 2020 is $117,629, compared to $858,689 for the fourth quarter in 2019. The 2019 number is larger because the county received a large distribution from the state for the 2019 wind farm refurbish project at Marengo.

The Rural County Sales Tax distribution for 2020 was $50,098.37, compared to $133,15.54, in 2019.

Rowe said the state has been withholding the Rural County Sales Tax throughout the year. She has reached out to the state’s Dept. of Revenue (DOR) to ensure the county will get what is due. The DOR may only be considering what the county paid in sales tax and not what the county has refunded back to the state (over one million).

“This is the lowest distribution going back as far as 2014,” Rowe said.

Interest rates are down, and interest earned on Current Expense Interest Income is low.

Revenue Without Taxes is $259,311 in the fourth quarter of 2020 compared to $292,951 in the fourth quarter of 2019. The revenue in 2020 includes COVID-related grants and fees from various county departments.

At the end of December, the county held a little over 2.5 million in cash, reserve, and investments compared to about 2.2 million in 2019.

The County has a couple of money market accounts at HomeStreet Bank.

Rowe has invested $125,153 in an 18-month bond, maturing on Jan. 15, and has earned $2,500 in interest. Rowe said she is reinvesting $125,000 into a 5-year bond.

“Even with the interest markets dropping, it turned out to be okay.”

Rowe said she has been working to develop a debt policy, which she hopes to present to the commissioners for adoption this spring. Public debt management policies are the guidelines and procedures that guide the debt issuance practices of governments. One reason a debt policy is implemented is to take out debt bonds. According to Rowe, Columbia County has relied mainly on loans.