The discovery that $1 million for the county's 911 emergency phone service is being held in a checking account surprised Cape Girardeau County's presiding commissioner Thursday.
Officials say much of the money should be put in a different account to draw more interest, but the 911 coordinator, the county auditor and the county treasurer all say it's not their responsibility to regularly monitor the 911 checking account and make investment suggestions.
County auditor David Ludwig presented the information to presiding commissioner Gerald Jones after Jones had earlier requested the information. Jones said he had no idea that much money was in the account, and that it won't stay that way for very long.
"They don't need that much money in their checking account," Jones told Ludwig at Thursday's commission meeting.
All told, the county has saved more than $2 million in 911 funds, with the $1 million in a checking account and another $1 million in investments.
The checking account collects about 0.5 percent interest, but the interest rate varies slightly from month to month, county treasurer Bill Reynolds said.
Telephone companies collect 911 fees through telephone bills and pass the revenue to the county. Voters approved a 911 fee in 1992 at 14.9 percent of the base rate for a local telephone bill. In 1994, it was reduced to 8 percent of the base rate. A Cape Girardeau County resident with one telephone line pays 72 cents per month for 911 service. This generates an average of $33,000 per month for the county.
Recommendations only
David Hitt, the county's Emergency Operations Center director, said the EOC and the 911 advisory board make recommendations on how funds should be spent for materials and equipment but has no say as to how the money is invested.
"The 911 board has no control over that," Hitt said. "It's been pointed out to us by the commission time and time again that it's none of our business."
The commission has the final say on purchases and transfers. The seven-member 911 board is an advising body.
Hitt said the 911 advisory board long ago, before he worked with the county, began saving money in anticipation of technology upgrades and to self-insure equipment in case of a disaster. He said he knew there was $2 million in savings, but did not know that $1 million of that amount was sitting in the checking account.
Hitt also said that there needs to be a lot of money in the checking account so the county could replace equipment quickly in case of an emergency.
Hitt said Reynolds and Ludwig authorized a $300,000 transfer from checking to savings at US Bank in February.
Much of the $2 million in savings will likely be spent on an upgrade to "Phase 2" in countywide 911 service, although the county commission has made no decision. Phase 2 means that dispatchers will be able to locate a cell-phone user who calls 911. The county 911 advisory board outlined a plan to spend the money for Phase 2 operations to the commission Wednesday.
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