Steve Dunkel, director of Financial Services in the Mason County auditor's office, presented the county's preliminary 2026 budget to the Board of Commissioners on Sept. 2, reporting totals and reserve projections the board must consider during upcoming budget workshops and public hearings.

Dunkel said the preliminary general fund budget totals $70,607,556, a decrease of $486,770 from the 2025 general fund. "The preliminary budget for the special and enterprise funds totals $123,602,642," he said, and the grand total for all funds is $194,210,198.

Why it matters: The presentation highlighted a potential reserve shortfall. The budget assumes a beginning general fund balance of $24,000,000 (down from $26,600,000 in 2025) and projects an ending general fund balance of $10,013,279 for 2026. Dunkel and the auditor's office noted that, at the current expenditure rate, the county faces a reserve deficit of roughly $3.49 million relative to a 25% policy reserve level reported in the treasurer's second-quarter finance report.

Dunkel referenced state law and county policy in presenting the budget. He said the county must comply with Resolution 2021-0304, which requires an annual plan to restore reserves to policy levels. "We will want to reassess this once the reserve levels are recalculated to reflect 2025 general fund expenditures," he said.

Commissioners and staff discussed that unfilled positions approved in 2025 have temporarily reduced expenditures, helping the county avoid larger shortfalls. The presentation and commissioners' remarks emphasized that the preliminary budget will be refined through department-level workshops and required public hearings before a final 2026 budget is adopted.

No final budget action was taken at the meeting; the presentation initiated the formal hearing and budget workshop process required under state law (RCW 36.40.040).