Updated Jan. 30, at 12:13 p.m.

WEST BRANCH — The Ogemaw County Board of Commissioners voted 6-0 not to pay its appropriation to District Health Department No. 2 one month early during its Jan. 26 meeting.

Commissioner Greg Illig was absent.

DHD No. 2 Health Office Lynette Benjamin was in attendance at the meeting to ask commissioners to approve paying its quarterly appropriation for April, May and June in February, one month early. Benjamin told the board that the early payment was requested to help the health department out with budget issues.

County treasurer Dwight McIntyre reported the county’s cash flow did not allow for any advance payments.

“Over the next 60 days, you’re going to need $3 million to pay the taxing entities,” McIntyre told the board. “That’s going to be a low-point in our cash flow after that’s paid, because our next influx of revenue comes in the summer taxes for 2012. Our cash flow that we have developed does not allow for advance payments.”

Scott Colclasure made the motion not to pay the appropriation early.

Benjamin also asked the Oscoda County Board of Commissioners for an advance last week, however no decision was made at that time whether to advance the money.

The health department is asking its four counties for advance payments because officials aren’t sure there will be enough money in the department’s account to meet its February payroll. Finance Director Deb Pelton told the Board of Health at its Jan. 23 meeting that, at that time, the general cash account had $48,947.62, with approximately $103,000 in the reserve account.

“So far, we have been able to meet the majority of our financial obligations without touching the reserve account,” Pelton told the board. “However, the last payables, we did not pay $31,000 worth of bills. The reason we didn’t pay them is we want to ensure there are enough funds to meet our payroll. We believe that’s going to have to take precedence.”

Pelton said the board is doing a cash flow analysis almost on a daily basis.

“Our initial assessment a couple of weeks ago was that as of the end of January, we would not have enough money in our account, including our reserve account, to meet our Feb. 10 payroll,” Pelton said. “So that has been our focus. Along with that focus is just watching the timing of everything. Timing is everything. One hiccup, and this whole cash projecting can be flushed down the john. It’s just going to blow up in our face. Our in and out of revenue and expenditures are that close.”

“As of the 19th of January, at the end of January, using our reserve, we’re estimating we’ll have $80,000 in the bank,” she said. “That is not enough for our Feb. 10 payroll.”

The health department is proposing a number of measures to possibly help its financial situation. Among those is the possibility of closing offices in Mio and Harrisville, and using free locations such as churches and libraries for service delivery.

Benjamin told the Board of Health last week that tough decisions would need to be made.

“We haven’t experienced this uncertainty meeting payroll for a couple of years and we’re back here,” she said. “It’s not going to go away. We’re unfortunately going to have to take a little more painful measures to make payroll, because the staff doesn’t like to worry about not getting paid. And we’re tired of sleepless nights worrying about IOUs.”

But Board of Health member and Ogemaw County Commissioner John West said while the discussion keeps occurring about needing to cut costs, he doesn’t feel any action is being taken.

“We keep talking about this all the time,” West said. “Every meeting we come to, we’re financially hurting, but we don’t do anything. We need to make decisions. We need to do things. We have more expense than we have revenue.”

Benjamin said, however, that action has been taken.

“I agree we’ve been presenting the fact that we’re not looking good, but I don’t want to say we’re not doing anything,” she said. “Just about every board meeting we’re making decisions to reduce costs.”

No decision was made during the meeting on the possibility of closing offices.

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