DeKalb County Council adopts 2026 budget, auditors say 31% reserve protects operations

The DeKalb County Council on Wednesday adopted the county'wide 2026 budget and several related ordinances after a lengthy discussion of cash reserves and fund accounting. County staff said the county'general fund is projected to end 2026 with about a 31% cash reserve — roughly three months of operating expenditures — and the council approved a $139,320 allocation to cover raises for nonprobation Community Corrections staff.

County Auditor Susan (County Auditor) told the council she estimates that "when we end 2026, that we're gonna have 31% or about 3 months worth of expenditures," and walked members through the method used to project reserves. She said the calculation starts with current fund balances, subtracts appropriations already spent or encumbered and anticipated additional appropriations, adds expected receipts and settlement payments, and then compares that projected ending balance to the next year's approved budget to produce the reserve percentage.

Why it matters: Council members and staff said the reserve target improves the county's financial flexibility for emergencies and helps maintain favorable bond ratings. Susan said the county previously had much lower reserves and the current level was set with guidance from outside financial advisers. She noted that some funds are legally restricted to specific purposes and cannot be used to cover general operating needs.

Key details and council concerns

- Method: Susan described a multi-step projection: start-of-year balances, subtract anticipated year-end appropriations, add estimated receipts and settlement payments, and subtract the approved 2026 budget to reach a projected cash balance, which is then expressed as a percentage of the incoming budget.

- Size in dollars: Council discussion referenced the roughly $8,000,000 figure tied to the 31% reserve in county general and about $2,300,000 held in investments the treasurer manages; exact line-item balances were discussed as estimates during the meeting.

- Investment and use rules: Council members asked whether invested funds (CDs, long-term investments) are available for general use; staff said investment earnings must generally return to the originating fund, although specific fund rules vary. The county'treasurer acts as the investment officer and coordinates with the auditor on timing and liquidity.

- Credit rating and capital projects: Staff said the reserve target supports better credit ratings for future bond issues (for example, for highway projects or the proposed jail). The council discussed designating funds for a future jail down payment so less would need to be borrowed.

Community Corrections and staffing raises

Council members discussed Community Corrections staffing and grant limits. Susan told the council that if Community Corrections were to receive the same 2.5% across'the'board wage increase as other county employees, the county would need to provide $139,003.26 from county general to cover the difference because grant funding for Community Corrections had been reduced by the state.

Council member Rick Ring moved to allocate $139,320 (rounded in the meeting transcript to $139,320) to cover the shortfall so Community Corrections nonprobation staff would receive the full 2.5% raise; the motion was seconded by Amy Demski and carried (vote recorded as "aye; opposed? Motion is carried").

Votes at a glance

- County budget ordinance (Ordinance No. 2025-OCC-10): Adopted on second and third reading. Vote recorded: carried, 6-1. - Airport budget ordinance (Ordinance No. 2025-OCC-09): Adopted on second and third reading. Motion by Rick Ring; second by Rick Collins. Vote carried. - Fairfield Township 2026 budget ordinance (Ordinance No. 2025-OCC-11): Public hearing held; motion to approve on first reading carried; council then suspended rules and approved on second and third reading. - Salary and wage ordinance for 2026 (Ordinance No. 2025-OCC-12): Adopted (first reading approved; rules suspended; approved on second and third reading). - Motion to allocate $139,320 for Community Corrections nonprobation staff raises: Mover Rick Ring; second Amy Demski. Motion carried.

What the council did not decide

Councilors discussed possible longer'term uses of funds (for example, jail savings and use of the Property Tax Replacement Credit fund) and noted that changes at the state level (including references to SB 1 and pending changes to local option income tax and property tax replacement programs) could change revenue available in 2027''3. Staff noted that the Indiana Department of Local Government Finance will review certain funds and could adjust adopted tax rates based on its review.

Ending

Council members thanked department heads and staff for conservative budget planning. The council scheduled its next meeting for Oct. 8, 2025.