ALPENA — After setting aside enough to cover 30% of annual expenses, as the Alpena County Board of Commissioners likes to do, the county has about $420,000 in its general fund cash account, Treasurer Kim Ludlow said on Wednesday.

But, at Wednesday’s county board Finance Committee meeting, Ludlow recommended the county spend only $250,000 and leave the rest where it is.

The cash account is used to pay bills until revenue comes in and to cover any gaps between expenses and income. The county treasurer recommends how the board should utilize any money over that 30% threshold each fiscal year, after auditors tell the commissioners how much cash is available.

The committee voted to recommend to the full board that $200,000 be added to the Building and Grounds Maintenance Fund and $50,000 to the Equipment Replacement fund.

Ludlow said the unreserved total cash is projected to be $3.5 million by the end of 2020, 30% of the 2020 expenses would be about $3.1 million, leaving the slightly over $400,000 excess.

“When there is a gain in the value from the previous year … and after the minimum value of 30% of budgeted expenses has been achieved, the treasurer is to recommend a course of action for the board to consider,” Ludlow said. “The intent is to fund both long-term and short-term capital outlay items until such time the treasurer and board feel these items have been sufficiently funded.”

Ludlow said the capital projects could include repairs to the county-owned buildings, new equipment, and other needs. She said letting fund balance go much higher than 30% is not, in her opinion, being responsible with taxpayer funds. Still, she said, keeping additional money in the fund is prudent.

“I think we still need to be conservative and to keep as much in the fund as possible, but then at the same time we are obligated to spend the taxpayers’ dollars, as well, to keep the buildings and equipment moving forward,” she said.

During the meeting Wednesday, the committee also passed a series of resolutions that will be recommended to the full board on Tuesday. Among them was approval of a county budget policy dictating steps the county must take if unrestricted fund balance dips below 30%.

If that happens, all part-time and temporary positions would be terminated, according to the policy. If it dips to 19.97% or lower, layoff notices would be sent out to full-time staff.

The county is not near those benchmarks, even after spending $250,000, as it will still have well over $3 million in reserve.

Steve Schulwitz can be reached at 989-358-5689 at sschulwitz@thealpenanews.com. Follow him on Twitter @ss_alpenanews.com.