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Presque Isle County ends fiscal year with deficit

ROGERS CITY — The Presque Isle County Board of Commissioners learned the county ended the 2018-19 fiscal year with a deficit.

Treasurer Bridget LaLonde told commissioners recently that the county had exceeded their general fund budget by $31,858 for the fiscal year ending July 31, 2019. The county brought in a total of $5,558,486 in general fund revenues and spent a total of $5,590,345 from its general fund, according to LaLonde’s year end figures.

“There were certain things that were not budgeted that were approved throughout the year,” LaLonde told commissioners of the vehicles that were purchased, projects that required additional funds and contract negotiations, which exceeded their original projections.

LaLonde told commissioners they are still waiting for an audit, which has been scheduled for Sept. 17. The Alpena-based firm Schulze, Oswald, Miller and Edwards PC will be conducting the audit.

The county ended up dipping into its fund balance to cover the cost of those additional expenses, according to LaLonde, who also explained that while there was a shortfall for the county’s general fund budget last year, it does not mean there was a loss at the bank.

LaLonde says that’s because the county had ended with a surplus of funding for the previous four fiscal years. Data she presented to the board shows the county saw a general fund surplus of $212,897 for the 2014-15 fiscal year, a surplus of $200,880 for the 2015-16 fiscal year, a surplus of $214,857 for the 2016-17 fiscal year and a surplus of $40,104 for the 2017-18 fiscal year.

LaLonde says the county has a “nest egg,” or enough to cover the amount equal to 15% and 18% of its general fund expenses and that, overall, the county’s fiscal health is doing “much better than it was several years ago.” She said the county began reigning in a lot of their expenses during the 2013-14 fiscal year when the county’s fund balance was below that 15% to 18% threshold.

LaLonde said at that time County Clerk Ann Marie Main had changed the budgeting process to hold each department accountable for its spending. LaLonde says each department begins the year with a set budget.

“If they move beyond that number, for whatever reason, unexpected costs, they have to go before the board and ask for an amendment,” she said. “So it’s kind of made them think about how they spend. So that helps a lot.”

The county also saw a deficit in its recycling fund for the 2018-19 fiscal year, which is a separate fund from the county’s general fund budget. The county’s recycling fund fell short of its budget by $30,863 even with the county’s recycling millage increase being levied for the first time.

LaLonde said in the past, the general fund has always supported the recycling fund with about $30,000 in funding. The millage increase was supposed to relieve the county of contributing money from its general fund to pay for recycling and make the program more sustainable.

“The community supported the increase and then the recycling company stopped providing us credits based on the trade markets,” she said. “That was not something we took into account, and when we didn’t get those credits, it made our expenses go right up.”

County Commissioners scheduled a workshop to further discuss its recycling program, and other items, for 5 p.m. Sept. 12. It’s regular meeting will follow at 5:45 p.m.

Crystal Nelson can be reached at 989-358-5687 or cnelson@thealpenanews.com.

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