County revenues (green) & expenses (red), by year.
After several flush years, the County budget looks as if it will be a bit tight over the next several years.
The Observer’s analysis shows that the County had a surplus in its operating budget (as defined by the WV State Auditor’s Office) for the past several years. This surplus allowed the County Commission to accumulate almost $18 million in the Capital Outlay fund. Based on numbers released by the Commission, The Observer’s analysis shows an operating deficit for the next several years (as shown in the chart below, with green indicating surplus and red indicating deficit).
The Commission plans to take on $16 million in debt and allocate $7.5 million from the Capital Outlay fund to purchase the buildings that will serve as the future county administration and judicial center. It plans to use another $2.5 million from the Capital Outlay fund to renovate the Lawrence Street building that will house county offices (the funding plan to renovate the George Street building for use as a judicial center is not yet finalized).
The debt service for the buildings (recorded on the County books as “rent”) will cost an estimated $1.2 million per year for the next 20 years. The Commission plans to transfer another $2 million from the Capital Outlay fund to cover the first two years of this debt expense.
According to the numbers shared by the Commission during its budget deliberations, after accounting for the $12 million designated for the new buildings plus the amounts previously designated for other projects, the Capital Outlay fund will have approximately $1 million of unencumbered funds remaining.
In addition to the Capital Outlay fund, the County also maintains an operating reserve in its General Fund. The County’s budget shows $6 million in the General Fund to start the fiscal year on July 1, 2025. If the County’s current expenses continue to exceed its current revenues as projected, that General Fund reserve would be depleted by 2030.
More coverage of the Jefferson County budget…
By Steve Pearson