Audit report: SCC unassigned fund balance is $18.2 million
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By LeAnn R. Ralph
HUDSON – St. Croix County had an unassigned fund balance of $18.2 million as of December 31, 2022, which is 41.9 percent of the general fund expenditures.
The St. Croix County Board has a policy that the unassigned fund balance should be 35 percent, plus or minus three percent, of the general fund expenditures, said Ken Witt, county administrator, at the St. Croix County Board’s September 5 meeting.
Witt told the county board that the auditor had been expected to present the 2022 audit report, but that in the auditor’s absence, he would be presenting the audit report.
The unassigned fund balance is $1 million or $2 million “over target,” Witt said.
According to governmental accounting principles, the unassigned fund balance should be between 25 percent and 35 percent of the general fund expenditures.
The administrative committee will draft a resolution on what to do with the excess funds in the unassigned fund balance, Witt said.
In the past, excess unassigned fund balance has been used on capital projects or on debt service, he said.
In 2021, the unassigned fund balance was $19.8 million, representing 47.2 percent of the unassigned fund balance, according to the audit report.
In 2020, the unassigned fund balance was $19.5 million, representing 47 percent of the unassigned fund balance.
In 2019, the unassigned fund balance was $17.2 million, representing 44.2 percent of the unassigned fund balance.
Special revenue funds
The health and human services fund, which is a special revenue fund, had a balance of $5.4 million as of December 31, 2022.
The health and human services fund contains “lots of COVID money,” Witt said.
There is a plan to spend the rest of the COVID money by the deadline in 2024, he said.
Other balances in the special revenue funds include:
• Jail assessment fund – $484,645 (compared to $424,234 the previous year).
• K-9 fund – $20,772 (compared to a negative balance of $1,405 the previous year).
• St. Croix Valley Drug Task Force fund – $38,800 (compared to $26,773 the previous year).
• County drug fund – $40,623 (compared to $10,549 the previous year).
• Stop Drugs Fund – negative balance of $9,197 (compared to a negative balance of $6,215 the previous year).
• Land records fund – $185,869 (compared to $212,709 the previous year).
• Dog license fund – $32,181 (compared to $29,739 the previous year).
Capital projects
The capital projects fund had a balance of $88.3 million at the end of 2022.
Of the total balance, $80 million is for the government center project, Witt said.
The money for the government center has been borrowed but has not been spent and was borrowed at 2.7 percent to 2.8 percent interest and is paying 3 percent to 4 percent to 5 percent interest, he said.
St. Croix County will earn a premium of $3.7 million on the borrowed money, and the county will use it to reduce debt service. Some of the principle was paid in 2023, Witt said.
The capital projects fund had balance of $8.14 million in 2021.
Enterprise funds
The St. Croix County Health Care Campus had an unrestricted fund balance $391,317 as of December 31, 2022.
The value of the health care campus increased by $135,000, Witt said.
The highway department had an unrestricted fund balance of $6.9 million at the end of 2022, representing an increase of $1 million over the previous year, Witt said.
The county built a new highway facility in 2019, and while the asset stays the same, the value of the asset increases, he said.
Internal service funds
St. Croix County has self-funded insurance plans, Witt said.
Here are the year-end balances for internal service funds for 2022:
• Liability insurance fund – $3,643,136 (compared to $3,407,066 the previous year).
• Health insurance funds – $3,240,433 (compared to $2,356,848 the previous year).
• Workers compensation fund – $869,394 (compared to $623,384 the previous year).
• Retirement health savings fund – $2,079,501 (compared to $405,312 the previous year).
• County fleet – $170,684 (compared to $156,898 the previous year).
Long-term debt
According to the audit report, St. Croix County had $130,676,000 in general obligation bonds as of December 31, 2022, which compares to $54,873,000 in 2021.
St. Croix County has a borrowing capacity of $725,630,355, which is 5 percent of the county’s equalized value.
State law allows a municipality to borrow up to 5 percent of the equalized value of the municipality.
The county has used 18 percent of the total borrowing capacity.
At the end of 2021, St. Croix County had used 8.8 percent of the total borrowing capacity.
