Wed, 08 Feb 2012 10:05:00
Cash Flow, Budget Issues Discussed
Van Zandt County may be looking at another budget shortfall this summer, but not as bad as the one in 2011.
In a budget workshop Tuesday during a county commissioners’ court session, Van Zandt County Auditor John Shinn explained a little of the accounting process and how his office arrives at fund balance estimates.
Estimated revenue sources in the current budget — something that had to be developed last summer — have fallen way short of the mark in a couple of cases, Shinn noted.
One of those revenue sources, a contract to house excess inmates from Smith County at the Van Zandt County Jail, was estimated to bring in about $180,000 this fiscal year.
“We haven’t had very many of their inmates brought over so far,” said Shinn. “It (the revenue) is not going to hit that $180,000 estimate.”
All told, Shinn said he estimates the county will come up about $734,000 in the red, but that number is significantly lower than the $1.3 million budget shortfall at the end of fiscal year 2011.
As has been the case in previous years, a Tax Anticipation Note (TAN) has been used by the county to help its cash flow situation in the first quarter of the new fiscal year from October to December.
“Those are the months that have been a concern for the county. It is the time period before most people start paying their property taxes in January,” Van Zandt County Judge Rhita Koches stated.
Use of a TAN is likely not to go away soon, Shinn noted.
“That TAN is for the purpose of cash flow so the county can pay its bills in that first quarter,” he said. “It would take at least $2 million in the fund balance for the county to be in a ‘healthy’ cash flow situation in October.
“With the economy right now, it is going to be difficult to bring that fund balance up to that level,” Shinn added.
Tuesday’s discussion is likely to lead to monthly budget workshop updates through the rest of the current fiscal year, something the commissioners’ court expressed interest in having. It was also suggested that a representative from Texas Association of Counties be brought in at a future meeting to discuss possible budget strategies.
Fuel expense, another area Shinn said would finish well over budget this year, came up in the discussion, and Koches said the county may decide to advertise a request for proposals on a new fleet fuel system on county-owned vehicles.
Van Zandt County currently uses the Wright Express fuel card system that includes a five-cents-per-gallon discount on purchases at Exxon/Mobil pumps.
In a budget workshop Tuesday during a county commissioners’ court session, Van Zandt County Auditor John Shinn explained a little of the accounting process and how his office arrives at fund balance estimates.
Estimated revenue sources in the current budget — something that had to be developed last summer — have fallen way short of the mark in a couple of cases, Shinn noted.
One of those revenue sources, a contract to house excess inmates from Smith County at the Van Zandt County Jail, was estimated to bring in about $180,000 this fiscal year.
“We haven’t had very many of their inmates brought over so far,” said Shinn. “It (the revenue) is not going to hit that $180,000 estimate.”
All told, Shinn said he estimates the county will come up about $734,000 in the red, but that number is significantly lower than the $1.3 million budget shortfall at the end of fiscal year 2011.
As has been the case in previous years, a Tax Anticipation Note (TAN) has been used by the county to help its cash flow situation in the first quarter of the new fiscal year from October to December.
“Those are the months that have been a concern for the county. It is the time period before most people start paying their property taxes in January,” Van Zandt County Judge Rhita Koches stated.
Use of a TAN is likely not to go away soon, Shinn noted.
“That TAN is for the purpose of cash flow so the county can pay its bills in that first quarter,” he said. “It would take at least $2 million in the fund balance for the county to be in a ‘healthy’ cash flow situation in October.
“With the economy right now, it is going to be difficult to bring that fund balance up to that level,” Shinn added.
Tuesday’s discussion is likely to lead to monthly budget workshop updates through the rest of the current fiscal year, something the commissioners’ court expressed interest in having. It was also suggested that a representative from Texas Association of Counties be brought in at a future meeting to discuss possible budget strategies.
Fuel expense, another area Shinn said would finish well over budget this year, came up in the discussion, and Koches said the county may decide to advertise a request for proposals on a new fleet fuel system on county-owned vehicles.
Van Zandt County currently uses the Wright Express fuel card system that includes a five-cents-per-gallon discount on purchases at Exxon/Mobil pumps.