August 30, 2014

Elyria
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Interest gain adds $8M to county coffers

ELYRIA – The county is on track to take in a record $8 million in interest income this year, an increase of $1.6 million over last year.

But the good times won`t last, said county Treasurer Dan Talarek. Next year, the number will likely be closer to $5 million.

“It will definitely plummet due to the interest rates being reduced by the boys in Washington to the point of a $3 million loss,” he said.

The county invests the money it has in the general fund, while still using it to pay the bills – and that amount shifts on a daily basis, Talarek said.

The county general fund has been strained this year because of the loss of $3.5 million in state funding and a large spike in expenses to operate the county`s justice system. County commissioners tried and failed to convince voters to approve a 0.25 percent sales tax increase in November, which would have brought in about $7.4 million annually.

County officials have said one-time income and high interest rates have kept the county from suffering too much this year, but next year that money won`t be there and cuts are likely. The commissioners are also considering whether to try for another sales tax next year.

Contact Brad Dicken at 329-7147 or bdicken@chroniclet.com.