According to the Commercial News, It took little discussion to convince Vermilion County Board members to extend a line of credit for one of the county’s funds.
Board members voted at Tuesday night’s meeting to approve the ordinance, 21-0. Four board members were absent.
The ordinance establishes a $1.5 million line of credit for the Public Safety Building Rent Fund for fiscal years 2015 through 2017. The line of credit, according to the ordinance, is a deal with a cash flow problem in the fund, which includes expenses from the Public Safety Building and the Juvenile Detention Center.
Board Chairman Mike Marron called the loan a “housekeeping measure” for the county. He noted that the balance of the Public Safety Building Rent Fund has dropped in recent years, especially following the movement of the expenses from the Juvenile Detention Center to that fund.
“The fund balance has gotten to a level where we have a lot of upfront expenses in that fund,” he told board members.
The line of credit will allow the county to handle the expenses until property tax revenue comes in.
The county is expecting $5.5 million in real estate taxes, according to figures from the current fiscal year budget. Those funds aren’t expected to be received by the county until after payment is due the building commission.
Funds for the loan will come from the county’s general fund and will be paid back to that fund.
The county attempted to bolster that fund in recent years, receiving approval for a small tax increase in 2013 that upped the levy for that fund. Marron told the board the fund is getting closer to having a balanced budget.
According to figures from the current county budget, the PSB Rent Fund has estimated revenues for the fiscal year at $11.1 million. Total estimated expenditures are listed at $11.8 million. The revenues are up from $10.7 million for the 2012-13 fiscal year while the expenditures are up from $11.06 million.