Commissioners accept property‑valuation growth, bank CPI and set benefits and contingency figures

Pennington County commissioners on Sept. 19 voted to include projected property valuation growth in the FY2026 provisional budget while deferring ("banking") the 2.9% cost‑of‑living factor (CPI) for later consideration. The board also established staffing and benefits assumptions and raised contingency to provide budget flexibility.

Key fiscal directions approved:
- Growth: Staff had estimated approximately $750,000–$800,000 of additional property‑valuation growth for FY2026; the board accepted that growth figure for provisional budgeting purposes.

- CPI (2.9%): Commissioners chose to "bank" the 2.9% CPI/COLA amount rather than recognize it immediately as available spending. Banking preserves the growth for up to three years but prevents immediate application to new programs until the board takes a later action.

- Employee insurance assumptions: The board approved funding increases to the county self‑insurance fund to reflect a 2% projected increase in health insurance costs and a 5.4% increase for fully insured dental plans. Commissioners directed staff to proceed with plan‑renewal negotiations and to bring back final plan options; the budget will carry the precautionary funding regardless of later decisions about employer/employee premium splits.

- Contingency: The board raised the general fund contingency from $175,000 to $500,000 to provide a reserve for unanticipated needs during FY2026.

Commissioners said the combined actions aim to preserve flexibility while providing staff an operating envelope for final budget adoption. Staff will return on the scheduled follow‑up meeting with updated numbers that reflect the board's instructions and with final insurance renewal details.