Butler County Finance Director summarizes Q2 finances; revenue mix and encumbrances highlighted

Butler County’s finance director presented the quarter-two financial report, telling commissioners the county remains fiscally stable but is using encumbrances more actively to reflect approved purchases that reduce available unencumbered cash.

Ryan Edson, finance director, said the county’s revenues remain heavily dependent on ad valorem property tax, which is up about 5% over the prior year. Edson said charges for services are down about 14.3% year over year — driven by landfill, EMS and jail revenues — and that interest on idle funds is down almost 10% compared with prior reporting but still contributes nearly $1 million per quarter.

Edson noted expenditures are up roughly 3% in salaries and benefits and said the county has begun recording encumbrances and accounts payable as soon as purchases are approved. “As soon as you approve the purchase of that paver, another example… it goes in as an encumbrance in our system and it takes away from available cash,” he said, explaining that $3.5 million of approved expenditures are encumbered but not yet spent.

The report covered multiple funds: the consolidated road and bridge fund (which absorbed the bridge fund), an emergency medical services fund showing charges for service up over prior year and a jail fund with reserves approaching a 25% target of current-year budget. Edson also discussed the landfill fund’s lower charges for service because an out-of-county hauler was bought out and the self-insurance fund’s unusually strong balance, noting the fund had built reserves over past years and is considering a one-time “rate holiday” distribution of roughly $150,000 as a bonus for participating employees.

On some items Edson said details were not immediately available. For example, he said an intergovernmental revenue line of about $200,000 “should be a grant” but he would research and report back.

The Commission voted 4-0 to receive the Q2 financial report.

Why it matters: The presentation shows how the county is accounting for previously approved capital purchases, tracks key revenue drivers and highlights available reserves in the self-insurance fund that the county may use for one-time employee bonuses.

What’s next: Staff will research the $200,000 intergovernmental line item and return with clarification; encumbrances will continue to be recorded when contracts are approved and staff will report on capital spending and reserve positions in future updates.