PIKE COUNTY BOARD BEGINS WORK TO CLOSE GENERAL FUND BUDGET GAP

PITTSFIELD, Ill. — Pike County officials say the county has money in the bank, but much of it cannot be used to solve what officials describe as a continuing revenue problem in the county’s General Fund.

During a Pike County Board committee meeting Monday evening, board members discussed the developing county budget, the status of the long-awaited 2023 county audit and the distinction between cash held by the county and money legally available for general county operations.

Officials said budget information submitted by county department heads has now been entered into a working spreadsheet and distributed to county board members.

The department requests are a starting point, not an adopted county budget. Board members will now have the opportunity to review those requests and determine where spending may need to be reduced as they work toward a balanced budget.

The discussion repeatedly returned to one central issue: Pike County’s General Fund has been spending more than it receives in revenue.

Officials said the county has been able to cover some of that imbalance in previous years with available money, including funds associated with highway operations, but warned that the county cannot continue relying on those resources indefinitely.

Board members also stressed that describing Pike County as simply “broke” would be misleading. The county has millions of dollars in various accounts, but substantial portions of that money are restricted or earmarked for specific purposes.

Township Motor Fuel Tax money was cited as one example. Those funds accumulate for township road projects and cannot simply be transferred to pay ordinary General

Fund expenses. Highway, ambulance and health department finances also operate differently from the county’s General Fund.

The board’s immediate concern is therefore not simply how much cash Pike County possesses, but how much unrestricted revenue is available to support the offices and services financed through the General Fund.

Officials acknowledged that the county must either reduce General Fund expenses, identify additional revenue, or use some combination of the two to address the imbalance.

The committee also discussed the authority of the County Board during the budgeting process. Department heads provide estimates of what their offices expect to need, but the County Board ultimately establishes the appropriations. Board members are now reviewing those departmental requests and can propose changes before a final budget is adopted.

Another subject was enforcement once a budget has been approved. Officials discussed the difficulty of ensuring departments remain within their appropriations after the County Board establishes spending levels, an issue expected to receive additional attention as budget discussions continue.

Meanwhile, Pike County's delayed 2023 audit could soon be completed.

Officials said the county has received a preliminary draft of the audit and several offices, including the Treasurer's Office, County Clerk's Office, Ambulance Service and Health Department, have been providing additional information requested by auditors.

A final draft could arrive within days.

The audit is expected to be placed on the agenda for the full Pike County Board meeting on the fourth Monday of September. Representatives of the auditing firm are expected to participate remotely and provide an overview to board members. If accepted, officials said the audit would then be submitted to the state and posted on the county's website.

The committee also addressed questions concerning financial spreadsheets being maintained during the budget process. Officials rejected the characterization that there is a separate or secret set of county books, explaining that the spreadsheet uses financial information already contained in the county's accounting system and reports distributed by the Treasurer's Office. The spreadsheet is being used as a working tool to organize departmental requests and potential board adjustments.

Members also discussed finding outside money to offset county expenses.

Two Rivers Regional Council recently appeared before the County Board and offered assistance identifying grant opportunities. Committee members discussed making sure department heads know that resource is available and encouraging them to identify projects that could potentially qualify for outside funding.

Among the possibilities discussed were aerial photography and a larger effort to digitize county records. Officials suggested a regional records project involving multiple counties could potentially make a stronger candidate for grant assistance than

Pike County attempting to finance the work alone.

Economic development representatives are also maintaining contact with Two Rivers, and officials noted that incorporating county projects into regional planning efforts can sometimes strengthen future grant applications.

The budget remains a work in progress. No final spending plan was adopted during Monday's committee meeting, and board members are expected to continue reviewing departmental requests and county revenues before taking action on the next Pike County budget.

RiverNewsLive.com will continue following the Pike County budget process as the County Board works toward a final spending plan.