BENTONVILLE -- Benton County's finances appear to be in good shape, with more than $20 million in reserve, but justices of the peace said they will remain cautious on spending.
The Finance Committee last week endorsed putting $2 million in turnback money into the capital projects fund. The fund typically has been used to pay for larger projects such as the Juvenile Justice Center. Justices of the peace said March 3 they want to build up the fund as a decision on a courts building approaches.
The county has $3,125,000 in the fund with the $2 million added. Money in the fund is restricted. A vote of two-thirds of the justices of the peace is needed to spend it for any use.
The county has other reserve funds as well. Brenda Guenther, comptroller, told justices of the peace the county has about $6.5 million in a state-mandated reserve all counties must maintain. That reserve has to equal at least 10 percent of the available funds and must be replenished if spent.
The county also has about $16.3 million in unappropriated money available for use. The Quorum Court decided to keep at least $10 million in that reserve fund for major building projects, capital spending or unspecified emergencies. Several justices of the peace said the courts building may be partly paid for from that source.
"The county judge and many others have said the new courts building is priority No. 1," said Kurt Moore of District 13. "We still don't have a funding source for that and, until we do, we need to be putting aside every penny we can."
Moore is certain the reserve will be tapped as a source to reduce the amount the county needs to borrow or finance once the location is settled and a price is known.
"About 10 minutes after we decide where it's going, that conversation will begin," Moore said.
The county has to keep a substantial reserve fund available for large projects and unanticipated needs that can't be met from normal revenue sources, Moore said.
"One thing we know about government is the need always exceeds the revenue," he said.
Barry Moehring of District 15 said the county has to keep money in reserve for a number of things, including the courts building, War Eagle Bridge and a new voting system. The $16 million won't fully pay for the courts building, but justices of the peace can lessen the burden by having money available, Moehring said.
"What's starting to crystallize my thinking is that the actual costs of the courts facility are starting to become known," Moehring said.
The downtown option carried a cost estimate of about $32.2 million.
"We have to start thinking about how we're going to pay for that," Moehring said. "I'm of the opinion that the county is going to have to have a variety of funding options but we're going to pay for some of it, at least, out of reserves. So while it does appear the county has a lot of money just sitting there, it's actually going to be put to some specific uses."
At least two elected officials said they wanted justices of the peace to be mindful of other needs beyond building projects.
County Clerk Tena O'Brien said some thought has to be given to employees as well, particularly since elected officials were asked to cut costs last year, which produced the turnback now being earmarked for capital projects. O'Brien said she still needs another employee to fully staff her probate clerk's office but she didn't ask the Quorum Court for money after last year's directive to cut personnel costs.
County Judge Bob Clinard said he wasn't aware of the justices' plan to put the turnback money into the capital projects fund, and he hasn't yet been asked to discuss the funding for the courts building.
"I don't know their strategy," Clinard said. "It's their job to appropriate the money. I would like to add my two cents worth before a decision is made."
The county has enough options for the building that other needs don't necessarily have to go unmet, Clinard said.
"I would hope the new courts building when we fund it, we're not going to do it on the backs of the county employees and we're not going to do it by cutting services unreasonably," Clinard said. "The county officials did cut their budgets and they did come up with that turnback. There are things we might want to do with that money. They decided to do that."
Tom Allen of District 4 said the courts building alone could cut the $16 million reserve in half.
"I don't think anybody wants to drain it but, personally, I think at least half of it would go to the courts facility," Allen said.
Allen said he hadn't heard of any personnel requests or needs of elected officials. A project the size of a new courts building is going to overshadow many other needs, he said.
"We're all in this together; it's all the same taxpayers' money," Allen said. "We all have to take part in helping out the county every year. This may be a time when they'll have to take one for the team."
Tom Sissom can be reached by email at [email protected] or on Twitter at @NWATom.
General News on 03/11/2015