Mitchell County adopts final budget amendment as FEMA reimbursements, cash‑flow loans reshape finances

Mitchell County commissioners approved Final Budget Amendment No. 6 on a voice vote, wrapping adjustments driven primarily by storm response costs and federal reimbursements.

The amendment pushes the county’s fiscal year totals close to $50 million, the presenter said, with roughly $17 million recorded in FEMA-related categories and an initial $10 million of expedited FEMA funds already used. County staff told commissioners they have drawn state cash‑flow loans to cover expenses while waiting for FEMA reimbursement and have used those loans in full.

The change is meant to avoid drawing on the county’s fund balance as reimbursements work through state and federal processes. County staff described the current budget as “very, very tight,” saying they pulled funds into the amendment to keep the year‑end balance from being exceeded. Insurance costs tied to storm response were cited as roughly $640,000.

Staff explained how expedited FEMA payments were used through March 24 and then cash‑flow loan proceeds were used from March 25 forward until FEMA reimburses the county. Commissioners were told the county has five years to repay the state cash‑flow loans and that the loans are interest‑free to the county pending FEMA reimbursement.

County staff also described work to secure additional state funds and a separate $5 million loan application referred to in the meeting as a “CDL” loan; staff said that process would be lengthy and take several months. Commissioners were told that the state’s more recent statute or bill reduced a proposed cash‑flow appropriation and that county staff were awaiting details on how the reduced pool of funds would be distributed to local governments.

The amendment includes line items for special funds (fund 18 and fund 19) used as cash‑flow accounts, and separate adjustments tied to occupancy tax revenues for tourism. Staff said occupancy tax receipts arrive in mid‑July and, as a precaution, they added a small revenue estimate to the tourism budget to avoid a minor budget overrun on that standalone budget.

Commissioners approved the amendment after discussion and questions from multiple members; the board’s vote was recorded in the meeting as passed by voice vote.

Looking ahead, staff said they will continue to monitor FEMA reimbursements, pursue additional state cash‑flow assistance if available, and submit the multi‑year projections required for the larger loan application referenced in the meeting.