By Leah Justice

leah.justice@tryondailybulletin.com

Polk County’s fund balance decreased by $745,848 between fiscal year end 2014 and 2015 but the county still has a fund balance of 32.8 percent of its general fund expenditures, or $7,714,340 available for a rainy day, according to the audit report.

The Polk County Board of Commissioners met Nov. 16 and heard from Brian Broom, of Dixon Hughes Goodman, the county’s auditors.

Broom said the most important key factor in local governments is its fund balance. The state recommends local governments keep at least eight percent of expenditures in savings, which represents approximately one month’s worth of expenditures.

At year-end 2014, Polk County had an available fund balance of $8,460,188 or 40.16 percent of its general fund.

The county’s 2015 expenditures increased by more than $2 million over its 2014 expenditures. In 2014, Polk’s total expenditures and transfers out was $21,065,255 compared to $23,518,443 in fiscal year 2015, according to the audit report.

Polk County’s property tax collection percentage decreased in 2015 from 2014, according to the audit report. The county’s tax collection rate in 2014 was 97.46 percent, compared to 96.75 percent in 2015.

“Property tax revenue is the county’s largest source of revenue, accounting for 62.6 percent of total revenue,” states the county’s financial statement. “The current year property tax base was approximately $2.8 billion at a rate of 0.5175 per $100. While the tax rate was the same as the previous year, property tax revenue decreased approximately 1.8 percent due to the slight decrease of tax valuations combined with a lower property tax collection rate.”

The financial statement goes on to say the county’s decrease in property tax collection rate was slightly offset in 2015 by a higher collection rate for motor vehicle taxes after a full year of the state collecting vehicle taxes at the same time as license plate registration fees.

Polk collected $14,144,553 in property taxes as of June 30, 2014 with $368,978 left outstanding. As of June 30, 2015, Polk had collected $13,885,558 in property taxes, with $466,880 left outstanding.

Noted in the county’s financial statements for fiscal year 2015 included that water is a key issue facing Polk County.

“The county purchased Lake Adger in fiscal year 2010,” states the report. “The county is slowing adding to the waterline infrastructure. It is expected to be the future water source for the county. The county spent approximately 1.6 million during the fiscal year for the construction of another major waterline that connects all of the county’s waterlines with the ability to tie onto adjoining county waterlines.”

Polk County is almost halfway through its current 2015-2016 fiscal year. The county’s budget year’s run from July 1-June 30.