Hanover County projects $18.8 million operating balance after third‑quarter financial review

Finance Director Lauren Knoll presented Hanover County's fiscal year 2025 third‑quarter financial report to the Board of Supervisors on May 14, saying the county projects higher revenues and savings that together create a projected operating balance the county plans to apply to the FY26 budget and the five‑year capital program.

Knoll told the board that general‑fund operating revenues through March 31 were about $250.5 million, roughly 67% of appropriated revenues, and projected total year revenues of about $382.0 million — approximately $8.2 million higher than the current appropriated budget. She said the projected revenue upside includes an estimated $3.0 million in additional general property tax collections, about $3.1 million from investment income, and roughly $1.8 million from charges for services, driven in part by Fire‑EMS billings.

On the expenditure side, Knoll said year‑to‑date expenditures and transfers totaled about $283.3 million (71.3% of the appropriated budget) and that total expenditures and transfers are projected at about $386.9 million, roughly $10.5 million (2.7%) less than appropriated. The projection reflects estimated personnel savings of about $1.5 million, county operating savings of about $5.8 million and a $3.2 million return from the school division. Those figures produce a projected general‑fund operating balance of approximately $18.8 million, Knoll said, and the administration intends to use that balance in the fiscal 2026 county and school budgets and capital plans.

Knoll also reviewed the Department of Public Utilities, which she said is projected to finish the year with about $37.2 million in revenues, roughly $1.2 million above budget, and operating expenses projected at about $29.3 million, approximately $0.7 million under budget. For the school division, Knoll reported projected revenues of about $246.6 million — 2.8% below appropriated budget, including the $3.2 million county return — and projected expenditures of about $248.8 million, also 2.8% below budget. The school division anticipates a projected return to the county general fund of about $3.2 million.

Board members questioned how federal and state budget uncertainty might affect future years. Supervisor Mr. Davis pressed staff to monitor federal grant timing and the possibility of continuing resolutions that could reduce or delay federal funding. Knoll said the county is monitoring federal and state developments, working with the Virginia Department of Education where appropriate, and using guidance from the Government Finance Officers Association to track risks and plan responses.

No budget amendments were adopted during the presentation; Knoll concluded by offering to answer members' questions and said staff will continue to monitor revenue and grant timing going into fiscal 2026.