Tippecanoe County government started the new year flush with cash.
The county began 2013 with $8.6 million in cash reserves, more than triple the amount — $2.7 million — on hand to start 2012. Of that reserve, $7.5 million is uncommitted funding, which means that money is not yet appropriated for a specific expenditure.
With the addition of $7.5 million in uncommitted funds to the county’s two rainy day funds — which have a balance of $11 million — the county has a healthy $18.5 million cushion in its general fund that will spend $38.4 million this year.
Tippecanoe County Auditor Jennifer Weston estimated in the fall that the county would end the year with $3.5 million cash on hand. But circumstances worked even more in the county’s favor.
“We had $2.2 million in revenue that was above and beyond what we expected. Part of that was the (County Option Income Tax) money,” Weston said, noting the $1.8 million COIT money that was distributed to Tippecanoe County earlier in 2012 from the $300 million in misplaced funds at the state level.
Excise taxes and inheritance taxes also generated more revenue than expected, as did building permits and fees paid to the recorder, Weston said.
“The biggest surprise was what we had in unspent budget,” she said. “Our project back at budget time assumes we’re going to spend all of our appropriated budget. We had $2.8 million left over. The departments didn’t spend all of their budgets.”
With $18.5 million in rainy day funds and uncommitted funds, the council plans to begin conversations about what to do with the reserves, Weston said.
“We’re pleasantly surprised with the numbers coming in after the end of the year,” said Roland Winger, Tippecanoe County Council president.
The cash on hand and the healthy rainy day funds are the result of conservative estimates of tax revenues and controlling expenditures, Winger said. This was especially critical as the county adjusted to market-based property assessments and property tax caps.
Weston said the council might consider doing one-time projects, and possibly reducing the general fund levy next year, which would mean property owners would pay less in taxes, Weston said.
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Winger cautioned about the danger of not having enough funds in reserve, and he indicated the council would look at the all of the county’s operations and expense before deciding whether to reduce the levy and where to spend some of the uncommitted revenue.
