County reports sales tax shortfall through March; approves year-end cleanup appropriation and notes $24M fund balance increase

Orange County finance staff reported that sales tax receipts through March were below projections and the committee approved a year-end cleanup supplemental appropriation.

Carrie Gallagher, Commissioner of Finance, and Deputy Commissioner Andrea Buchanan reported that March sales tax was about 2.5% (approximately $521,000) below projected revenue for the month; year-to-date figures were about 1.88% (approximately $588,000) under projection. Gallagher said the figures are early in the year and staff will continue to report monthly actuals.

The committee approved a supplemental appropriation for year-end cleanup (Request No. 094) so the county can close financials by June 30. Budget director Deb Slosinski and Deputy Budget Director Nina Cena said the appropriation encompasses operating budget adjustments, ARPA fund accounting moves, and acceptance of FEMA state and federal reimbursements for expenditures previously recorded.

Slosinski also provided a budget update as of February 2025, explaining that personnel services and employee benefits appear lower than in 2024 because of timing differences in accruals; the county reversed some accruals in February and will process final accruals in December 2025, which will affect year-end totals. Finance staff told the committee that the unaudited total fund balance increased by $24 million from the prior year, bringing the total to about $307 million with an unassigned balance of about $184 million. Staff said final audited figures and detailed breakdowns will be available when auditors present the county's financials.

The committee voted to approve the year-end cleanup appropriation and received the budget and sales tax updates for the record.