Stephenson County finance staff presented potential property-tax levy scenarios and the county’s proposed fiscal‑'26 budget assumptions to the finance committee on Oct. 10 and discussed a partly outstanding nursing-center audit that state and federal funders could require to be cleared.

Adrian (Finance Director) explained that, because Stephenson County is subject to the Property Tax Extension Limitation Law (PTELL), the county can request levy increases up to 5 percent without a truth-in-taxation hearing. Staff presented budget scenarios showing the current draft does not include the additional 5 percent; the finance director said staff can change the request before finalizing the budget if the committee directs.

Adrian and committee members reviewed revenue assumptions, including a projected $4.6 million medical premium spend and a proposed use of about $3 million in cash carryforward to balance the budget; the staff memo notes a previously-budgeted ARPA transfer that was carried forward into fiscal 2026. Committee members expressed concern about reserve levels: auditors recommend a general-fund reserve equal to roughly half of annual expenses, and the finance director said projected reserves would fall short without adjustments.

The finance director reported partial submission of required nursing-center audit materials to the county’s auditors (Sikich). Sikich requested follow-up information; staff said if the audit is not cleared by Oct. 30 the county risks state stop-pay actions that could delay state reimbursements. Staff said two-thirds of the nursing-center documents had been submitted and follow-up questions had been sent to the nursing center; directors said they would pursue the remaining items immediately.

Committee members discussed options including a multiyear tax advance on the nursing‑center levy to cover current vendor obligations and whether to seek a 0–5 percent levy increase. Several members urged forward-looking budget policy discussions about multi‑year personnel and service costs rather than one-time fixes. The committee approved several departmental budgets by voice vote and directed staff to incorporate decisions on benefits and requested insurance numbers before final county-board action.

No county-wide tax-rate change was finalized at the finance-committee meeting; staff said the county board will consider formal levies when it votes on the final budget.