County won't tap capital project reserve fund

Plans to use $500,000 of county sales tax money for capital projects are likely dead. The Shawano County Finance Committee decided earlier this week not to take action on a request by the Administrative Committee to revise the ordinance on the county sales tax to reduce or eliminate the amount of money placed in reserve for capital projects. The $500,000 can only be used in emergencies. Supervisors on the committee were reluctant to make changes during such a turbulent budget time, they said. With reduced state aid and the likelihood that environmental impact fees could be eliminated after 2014, they agreed that raiding the account will only produce more belt-tightening in the future. Even some members of the Administrative Committee seem to regret bringing the issue up. Supervisor Deb Noffke, who sits on that committee, had proposed the county use the money for capital projects instead of having to borrow more money to complete the work. Noffke has since changed her mind, noting in a memo to the Finance Committee that it would not be easy to replace the $500,000 once it is spent. She noted that using the money to bolster the county’s operating budget “will only kick the can further down the road — and it will be a very empty can next year.” “You all know I am opposed to ‘slush funds,’ but ask that you please consider the long-range effects on future budgeting cycles prior to tapping this fund for operations, or releasing it for use without a specific project need,” Noffke said. Finance Director Diane Rusch echoed Noffke’s sentiments, fearing that once the money is gone, the county will once again be looking at borrowing money to pay for capital needs. Besides the sales tax and environmental impact fees, the only additional funds available for capital projects is money received from the Ho-Chunk tribe, which totals $82,500 per year. General fund money is only used when a project goes over budget. Supervisor Arlyn Tober also opposed the proposed change. “People would be raiding that fund steady,” Tober said.