SNOW HILL – County officials agreed to use a $16 million surplus to fund various capital projects and increase the county’s reserve.
The Worcester County Commissioners voted 4-3 this week to approve the assignment of fund balance after the county ended the year with a surplus of $16.1 million. The money will be used for various projects, including increasing the county’s reserve to 12%, replacing the roof at Pocomoke Middle School, a bulkhead at the commercial harbor and supporting Other Post Employment Benefits (OPEB).
“We’re fortunate that we do have this excess,” Commissioner Joe Mitrecic said.
Staff told the commissioners the $16.1 million surplus was attributable to a strong labor market and related income tax revenues as well as better than anticipated transfer and recordation tax revenues related to a robust real estate market. The commissioners were presented with a list of projects, including $4.6 million in board of education initiatives, funding for OPEB and $4.5 million to bolster the county’s reserve, for approval.
Commissioner Josh Nordstrom said he’d like to see $150,000 assigned to support a boys and girls club in Pocomoke. His motion to add that to the fund balance list failed with lack of a second, however.
Commissioner Chip Bertino said he’d like to see fund balance cover the total requested cost of an HVAC automation system for county buildings as well as the initially projected $2.5 million OPEB contribution. The list by staff left the HVAC project $150,000 short and the OPEB contribution down $400,000. He proposed removing a few of the items requested by the Worcester County Board of Education. Bertino suggested the $85,000 requested for a new partition wall at Stephen Decatur Middle School be built into the bond being sought for the renovation there. He also suggested delaying track repairs at Stephen Decatur and Pocomoke High Schools.
Superintendent Lou Taylor said he was aware the school system had presented an extensive list of items to be accomplished with the county’s fund balance. While he said moving the cost of the wall to the bond was not a problem, he’ll likely have to return next year to seek funding for track resurfacing.
“Both of them need to be resurfaced,” he said. “Can they wait a year or so, yes. I’m okay with that because again I’m grateful for anything you give us. But at some point, possibly a year from now, I’m going to have to come back to you about those because they will become a safety issue.”
With those adjustments, Bertino noted that the county would still need to identify another $190,000 that could be moved to pay for the changes he’d proposed.
Mitrecic asked about the reasoning behind increasing the county’s reserve from 10% to 12%. Phil Thompson, the county’s finance officer, said it was to maintain a stable reserve. He added that most counties had 15-17% in reserves.
“When you compare us to our peer rated counties across the state and across the country we’re still a little bit below the benchmark there,” Thompson said.
Bertino pointed out that if the commissioners reduced the $600,000 assigned to be used for the sports complex to $400,000, the county would be able to cover the changes he’d proposed to OPEB and the HVAC system. The commissioners voted 4-3, with Mitrecic, Commissioner Bud Church and Commissioner Diana Purnell opposed, to approve the changes.
“I’m in favor of everything except removing the $200,000 for the sports complex,” Church said.
