Allen County has $1.1 million tucked away that is earning a paltry 1.79 percent in interest, Jim Gilpin informed commissioners Tuesday morning.
He proposed it would be smarter to transfer some of that to the Allen County Community Foundation where it could yield a bigger return. Gilpin suggested the county allot $200,000 over the next two years and have the money earmarked for either healthcare or environmental projects.
Gilpin is a trust officer at Community National Bank. Among his duties is looking after the $1.1 million in a landfill closure fund, which is no longer needed.
County Counselor Alan Weber explained: Up until three years ago the county was required to keep aside enough money to pay for closure of the landfill. The fund grew annually through a property tax levy and then more recently from interest earned. That changed when the county demonstrated to the Kansas Department of Health and Environment that it had resources and financial security sufficient to pay for closing a landfill cell.
Part of that change occurred because the county essentially closes a portion of cells as they are used, with compaction and topping of dirt that is seeded.
Gilpin thinks the $200,000 would better serve the county and its citizens by being endowed in the community foundation — where healthier gains could be expected from market-based investments — than gathering a pittance as idle funds.
Two things would occur if the two annual transfers were made: The endowment principal, which could not be spent, would earn interest that could be spent to deal with healthcare and environmental issues. Also, having it within confines of the foundation — financially managed by a mega-foundation in Kansas City that deals in billions of dollars — the county money would draw matches from the Kansas Health Institute: 25 percent if put away for environment projects, 50 percent if for healthcare.
Gilpin also prominently mentioned recycling.
Iola Rotary Club, in cooperation with the Register, began newspaper and magazine recycling more than two decades ago. During the intervening time hundreds of tons of paper have been kept out of the landfill, an advantage that Bill King, former director of Public Works, often lauded for extending the landfill’s life. “The best thing you can do for a landfill is not put anything in it,” often was King’s hyperbolic comment.
At home, Gilpin said he and wife Karen — mostly at her behest — were careful to recycle plastic, glass and metal food containers, which they occasionally have hauled to a recycling site, “when we know a friend is going that way.”
Meanwhile, he and Stan Grigsby, Rotary president, assured commissioners Rotary members were passionate about recycling and were on the cusp of working toward some form locally to include much more than paper. With proceeds from county capital in the community foundation, such as effort would likely be much more realistic, Gilpin said.
Recycling piqued commissioners’ attention, in large measure by having Rotary members interested in pursuing a comprehensive program.
However, they weren’t ready to grab a pen and sign off on the transfers.
Commissioner Jim Talkington had several questions, which led to an explanation on how a foundation works. “It is a complicated process,” said Weber, who is a member of the community foundation board.
“I’m not opposed to the community foundation,” Talkington said. “I just want an opportunity to think about it,” before making a decision involving $200,000.
Investment, recycling proposed
