Bay County officials presented the county executive’s proposed 2026 budget to the Board of Commissioners on Oct. 7 and opened a public hearing; no members of the public spoke during the hearing.

The executive proposed total county spending of about $173,000,000 for 2026, a $2,000,000 decrease from the 2025 total, while the county’s General Fund budget is proposed at $50,500,000, up from $47,300,000 in 2025 — an increase of roughly $3,200,000, or about 6.8%.

The increase in the General Fund is driven by contractual pay increases for county employees, higher indigent attorney fees, increased technology and maintenance costs, and capital outlay for buildings and equipment. County staff told commissioners that property taxes make up roughly 43% of the General Fund revenue (about $21,400,000). The presenters recommended using approximately $4,100,000 of unassigned fund balance to balance the General Fund for 2026.

During the presentation county staff (Scott and Kim, budget presenters) walked the board through the timeline of the budget process, line-item changes and a brief fee schedule update. Staff noted an estimated reduction in the county’s overall budget driven by the decline in one-time American Rescue Plan Act (ARPA) funding compared with 2025 levels. A commissioner asked explicitly whether the $2,000,000 reduction was caused by ARPA; a staff member confirmed it was ARPA funding.

Staff highlighted several other figures: employer health insurance contributions for 2026 were projected at about $5,200,000 (down from an estimated $5.9 million in 2025), and the county’s defined-benefit retirement groups were described as well-funded — the ‘‘general group’’ and the Sheriff’s group were shown at roughly 132% and 134% funded ratios, respectively, based on the most recent annual reports cited in the presentation. Major capital items listed in the presentation included information systems ($284,000), buildings/grounds/parks ($229,000), secondary road patrol vehicle purchases (four new vehicles) and the Sheriff’s Department capital outlay ($493,000), partially offset by a $351,000 grant for a marine patrol safe boat.

Staff described the county’s reserve posture: a budget stabilization (rainy day) fund and combined assigned/unassigned balances that staff said totaled about $22,800,000, including an unassigned fund balance of approximately $15,500,000. Commissioners were reminded that, in 2024, the board amended Bay County ordinance number 28 to allow the budget stabilization cap to change from 20% to 15% and that the county had treated an overpayment as a prepayment for future years.

After the presentation the board moved to receive the executive proposed budget, voted to recess the regular order of business and open a public hearing on the proposed budget, heard no public comment, and returned to regular business. Commission action to receive the proposed budget and to open and close the public hearing passed by voice vote.

Next steps explained by staff: the Board will continue its review through October and into December, meet with department heads and finance staff as needed, and hold tentative adoption of the 2026 budget at a future full board meeting in November or December when the board completes its review.

No formal vote to adopt the budget occurred at the Oct. 7 meeting; the action taken was to receive the executive proposed budget and hold a public hearing.