Commissioners again sidetrack rainy-day fund

Whitman County commissioners Monday unanimously eliminated a plan to increase the county’s rainy day fund this year by 1.5 percent.

Created in 2009, the reserve fund, initially set aside 7.5 percent of the 2008 current expense budget, which amounted to $1,119,029.

The restricted account was scheduled to ramp up by 1.5 percent each year until 2014. That would have put it at nine percent of the 2009 budget.

Because of the county’s budget deficit, the increase has been delayed each of the last two years.

The reserve was created to counter unexpected expenses like a disaster, major trial or lawsuit. It can only be tapped by a commissioners’ resolution.

Commissioner Michael Largent expressed concern last year when the same increase was tabled. He worried changes to the restricted reserve policy could impact the county’s bond rating.

Whitman County’s bond rating may be important as they have pledged to issue bonds to fund infrastructure construction at Hawkins’ Companies proposed stateline stripmall.

Largent this week said he still had those concerns, but felt the county’s budget could not shoulder the 1.5 percent cost of building the reserve fund in light of the operational deficit facing the county. Last week’s report pegged the county’s budget deficit projection for the year $570,000.

“I think it’s a balance. Our bond rating is still good, and we still have an adequate reserve,” Largent said. “Given the current economic situation, I think we’re in a pretty good spot.”