Commissioners Court approve to transfer $800K from Road & Bridge Department to General Fund
By: Jose G. Landa, Eagle Pass Business Journal, Inc. Copyright 2015
Maverick County Commissioners Court approved to transfer up to $800,000 from the County Road and Bridge Department’s 2014 Fiscal Year Budget to the County’s General Fund to assist the County pay its financial obligations for the remaining months of the 2014 Fiscal Year ending September 30, 2015 due to the severe financial problems experienced by the County at their special meeting held on June 29, 2015.
The approval of the Road and Bridge Department’s transfer of $800,000 from its 2014 Fiscal Year Budget means that Maverick County will not have sufficient funds available to do public services such as paving and maintenance of County streets, roads, and bridges to the detriment of County taxpayers needing these public services.
Commissioner Roberto Ruiz of Precinct 4 raised this issue complaining that this transfer of such a large amount of monies from the Road and Bridge Department may leave County citizens without much needed public services during the next three months.
“I was requested since there is a shortfall of funds and there are additional funds we expect to be remaining in the Road and Bridge fund, to put it through commissioner’s court whether to enable Mr.Valdez to transfer $800,000 as needed to the general fund. I’m sure that this will be permanent transfer,” said County Auditor Sandra Watkins.
“$800,000, whose idea was this anyway?”, asked Ruiz.
“I think it was initiated from my Chief Financial Budget Officer (County Judge David R. Saucedo). He knows where we need money and when we are going to need money,” replied Watkins.
County Judge David R. Saucedo concurred with Watkins.
Watkins explained that it needed to be done through the proper channels to assure that it is done properly and according to regulatory standards.
Watkins further explained the details behind how the county would be adding a line item to the Road and Bridge books transferring $800,000 onto it thus freeing up the funds to be used if needed through the general fund.
“It’s up to you that the specific wording is written and only you as commissioner’s court can determine whether it would be an emergency expenditure or not. That is the only time that you can add an line item other than additional revenues those are the exceptions.” Said Watkins.
“The only way to do these is, if commissioner’s court declares it an emergency.” Said Watkins.
Watkins explained that then and only then would they add another line item to the Road And Bridge fund to facilitate the transfer process if needed.
“It doesn’t mean that they are going to be transferred but then you will authorize the treasurer, to transfer those funds, if needed,” said Watkins.
Commissioners Court discussed that the $800,000 from Road and Bridge Department would only be used if the County does not obtain the $2 Million loan it is currently applying for to fund the remainder of the 2014 fiscal year until September 30th, 2015. The County is estimating that it has a $2 Million shortfall or lack of revenues to pay its financial debts and obligations to employees and creditors for the next three months until September 30th.
Judge Saucedo stated it was a precautionary measures to assure the county have the sufficient funding to finish of the fiscal year if for some reason the $2,000,000 loan was not obtained.
“I have to everything based on we’re not going to get this funding. Until I get that funding and it’s in the bank I have to continue to operate as if it not there, that were not going to get it,” said Judge Saucedo.
“This is just an option. If he doesn’t make payroll, then this enables him to do it,” said Watkins. County Treasurer Rito J. Valdez, III, would be authorized to use these $800,000 from Road and Bridge Department funds to pay any County expenses such as payroll or anything else in the event the County does not have sufficient monies in the General Fund or fails to obtain the $2 Million loan.
“It hurts. What we are doing is putting a band-aid here and there,” said Ruiz.
Watkins stated this wasn’t reducing the budgets but was a reduction of cash from one place.
“Well, the Road and Bridge, we need to tap into that to finish off our fiscal year,” said Ruiz.
Watkins and County Treasurer Valdez stated there are certain funds that are needed on a monthly basis and by setting up the proper steps to allow for such transfer would allow the county to be able to cover those expenses.
“The summer months are the hurting months,” said Ruiz.
“Remember, this year it’s hurting more because you have another shortfall,” said Watkins.
Watkins stated that the revenues that are coming in and how the move of prisoners from the Tom Bowles Detention Center to the Maverick County Detention Center had put the Maverick County in a very bad financial predicament.
Watkins stated that the County is at present time supporting the Maverick County Detention Center through its operations and other issues that arose from the Geo Group leaving the Detention Center. In other words, Count taxpayers are footing the bill for operating the 625 bed Maverick County Detention Center through its General Fund at a tune to a loss of $2 Million in this 2014 fiscal year.
Judge Saucedo noted that this 2014 fiscal year, the County did not receive the $1.4 Million from the Maverick County Solid Waste Authority like it did previous years. Saucedo noted that the County needed to get this going again next year.
After discussion, Commissioners Court approved the transfer of up to $800,000 from Road and Bridge Department to the County’s General Fund to assist it pay its financial debts and obligations for the remaining next three months, at the expense of County taxpayers not having their county streets, roads, and bridges taken care of or maintained properly.
It remains to be seen whether County Judge Saucedo and Commissioners Court will propose a tax increase for 2015 to County taxpayers to pay for County debts and services such as the Maverick County Detention Center and other public services.
