New Kent Charles City Chronicle

News for New Kent County and Charles City County, Virginia | March 29, 2024

CC chairman addresses ‘rainy day’ fund issue

By Andre Jones | July 22, 2014 10:08 pm

During the April 2014 Charles City Board of Supervisors meeting, county resident Micheal Jones questioned representatives about the lack of money in the “rainy day” fund, more commonly known as the general fund balance. Chairman Bill Coada addressed the issue at the board’s July 21 meeting.

During board directives, Coada responded to Jones’ concern with a 10-minute presentation, indicating his personal stance on the issue. The chairman defined his viewpoint of the fund balance, before revealing numbers from his independent research.

According to Coada, Charles City had $9.8 million in the fund balance account in 2002. By 2013, that number had dwindled to $2.4 million, with a low-point of $1.5 million in 2011.

“In 2012, the board of supervisors mandated a balanced budget without using money from the fund balance,” commented Coada. “From 2003 to 2011, the county was using money from those funds to balance the budget, and that is why it dwindled.”

The chairman’s presentation pointed out primary uses for the fund balance included capital improvement plans (CIP) and emergency situations. County financial consultant Robinson/Farmer/Cox recommended 20 percent of the county’s budget should be placed in the fund balance.

Coada also indicated he was offended by Jones’ accusations at previous meetings that money in the rainy day funds were missing or not accounted for.

“I don’t agree with the fact or believe that money in the fund balance was mishandled or misused,” commented the chairman.

“My goal is to restore funds into this account in an effort not to go through the same things we are experiencing at this point in time,” he added, pointing to ongoing litigation between the county and Waste Management of Virginia.

According to Coada, Charles City is spending $384,615 a week between the school board and county offices, but he hopes revenue generated in the future will improve through new businesses entering and expressing interest in the area.