Cowley County commissioners are bailing out the Council on Aging with a one-time grant to pay off $4,100 in payroll taxes, $6,000 in IRS penalties, and a $6,000 credit card bill that is used to purchase fuel for the public transportation program.
Up to $35,000 was approved by the County Commission during a regularly scheduled meeting Tuesday morning so that the Council can also meet its financial obligations with the seven senior centers it helps fund in Atlanta, Burden, Dexter, Cambridge, Udall, Arkansas City and Winfield.
Then the Council will return to the County Commission with a proposed 2008 budget that specifies what revenue the Council needs to break even. It will be up to the County Commission to decide whether the county can finance the proposal or whether programs, and possibly staff, should be cut.
“One thing that’s for certain, we’ve got to pay our payroll taxes. We’ve got to get square on that,” said commission chair Dick Bonfy. “We’ve going to have to get balanced, that’s for sure.”
Without additional funding, the future of some friendship meal programs at senior citizen centers may be in jeopardy, according to Mary Woods, Council director.
“It’s just been a struggle,” Woods said. “In some cases, the senior center is the only place seniors have to meet.”
The Council’s financial struggle did not start this year. It has been an ongoing situation that has continued to build since at least 2002, County Administrator Leroy Alsup told the commission in a memo. Other observations by Alsup include:
2002: While the Council actually received $18,277.75 more in revenue than expended in 2002, and the financial position improved, the Council still ended 2002 with a negative fund balance of $31,554.06. They ended the 2002 budget year owing $13.249.11 in payroll taxes, $4,847.16 in penalties and interest and $17,200 in loans.
2003: Again the Council received more revenue than expenses so their financial picture improved, but they still ended 2003 with a negative fund balance of $16,597.81.
2004, 2005 and 2006: During this three year span the Council expended more than the amount of revenue received, so each year their financial picture has declined to the point that they ended 2006 with a negative fund balance of $52,207.79.
At the end of 2006, the Council owed $36,942.07 in payroll taxes, had a bank overdraft of $4,256.77 and owed $12,182.83 in loans.
Since the end of 2006, the Council has paid their delinquent payroll taxes by not making other payments and has been making credit card payments equal to what has been charged each month, according to Alsup.
Donations are down by the people who use the various services and the South Central Kansas Agency on Aging gave $10,000 less last year than the year before, Woods said. The biggest increase in expenditures since 2002 has been in fuel costs.
“We have so many elderly people out there – I am not sure how they get along with what they get,” County Commissioner Carmelita Clarkson said. “I know some out there are really in trouble, and if everything else goes up they’ll be in more trouble.”
Commissioners have to decide what citizens want and what they deserve, Bonfy said.
Cowley County has 5,366 people 65 years old or older, according to information provided by Woods. The Council assisted 2,247 seniors since November 2005 and gave 542 riders 16,524 rides.
Five people are employed full-time by the Council and an additional 12 are considered part-time. The monthly payroll is approximately $10,830. The average monthly payroll tax and KPERS payment is $4,368. Funding totaled $291,288.20 in 2006. A partial mill levy provided $155,000 but voters have authorized the commission to levy a full mill. That would generate approximately $200,000, according to Alsup.
A private firm contracts to provide accounting and annual audits.
“Obviously, this (problem) didn’t hit us in the head last year, ” Bonfy said.
