It's not their first choice, but area county officials said this week it might be necessary to use reserve funds to cover some operating costs next year.

Some area counties will be able to get by without making use of undesignated reserves in 2010, officials said, but others are planning on it. Whether dipping into reserves would be effective in the long run is still unknown.

All area counties keep at least some reserve funds, officials said. The Minnesota state auditor's office requires counties to have a five- to nine-month reserve, said Yellow Medicine County Administrator Ryan Krosch.

Krosch said Yellow Medicine County Commissioners voted to use about $400,000 worth of reserves to help with operating costs next year. Typically, he said, the level of reserve funds upon which the county can draw fluctuates over the course of the year. For example, Krosch said, reserves ranged from a $14 million maximum to a $9 million minimum in 2008. The minimum and maximum levels tend to stay pretty steady from year to year.

Lincoln County Auditor Kathy Schreurs said it seems likely the county will need to make use of some reserve funds for 2010, although nothing has been decided yet.

"We don't really have any choice but to use reserves," Schreurs said, citing factors like local government aid cuts and a temporary reduction in wind energy tax revenue.

Schreurs said Lincoln County tries to maintain a six-month reserve of about $2 million to $3 million dollars.

Some area counties either won't need to use reserves in 2010, or are trying not to.

Lyon County Administrator Loren Stomberg said county reserves were not used for operating costs in a proposed preliminary budget for Lyon County. If possible, Stomberg said, the county would like to keep the reserves for capital expenditures or outstanding bonds.

"We have pretty close to $2.5 million in unreserved, undesignated funds," he said. Although the county will be able to get by without using that in 2010, Stomberg said, "It may not be business as usual in the future."

Stomberg said Lyon County used reserves to cover some of its operating costs in 2003, but he said, "That economic situation was pretty short-term."

Redwood County Administrator Vicki Knobloch said Redwood County commissioners have worked to keep reserves around the recommended six-month level. Knobloch said commissioners have been looking at ways to reduce county spending rather than use reserves.

Murray County Auditor/Treasurer Heidi Winter said the county hasn't needed to make use of its six-month reserves yet, because of other sources of revenue.

"We've been very fortunate to have a wind energy production tax," Winter said, which brought in a share of about $1 million for the county last year.

Winter said Murray County has around $3 million in undesignated general revenue. Usually, those reserves are kept for capital expenditures or emergencies.

"It's kind of a rainy-day fund," Winter said, although that could change depending on the county's needs. "It's all at the board's discretion."