County projects higher year-end fund balance but flags reliance on 1A dollars

Jessica Savco, the meeting’s presenter, told the Board of County Commissioners during the second‑quarter budget review that the county’s amended general fund budget shows higher revenues than originally adopted and that, with current projections, the county would add to fund balance by year‑end. "We're showing that, we'll come in about 16,600,000.0 higher than what the amended budget is," Savco said, attributing roughly $15 million of that increase to property‑related receipts and specific ownership tax and noting a separate correction from preliminary assessor data.

Savco and finance staff emphasized that projections assume no full use yet of voter‑approved 1A funds and that the long‑term picture changes when those allocations are included. "If you compare that line to what that net amount is, you'll notice that we pretty much would bridal even or have a slight deficit if we did not have those 1 a funds," Savco said, explaining how 1A inflows and outflows affect multi‑year forecasts.

Why it matters: county leaders said the projection would leave the general fund with a higher reserve than policy requires this year, but that is contingent on both property tax performance and one‑time revenue timing. Savco noted the county’s 11% policy reserve and that the projection would bring the reserve to about $28,000,000.

Key details presented included revised assumptions for salary (4.5%) and retirement increases, a health insurance assumption of 5%, and vacancy savings that are currently lowering projected expenditures. Savco cautioned the board that the forecast will change in the third‑quarter review once proposed uses of 1A funds and pending budget packages are incorporated: "we will have the recommended budget at that time where you'll be already starting to include, spending for those 1 a funds, and then we'll incorporate that into those out years. So we'll have a very different look."

Capital and other funds: Finance staff said capital project spending will carry reappropriations into 2026 for projects not completed this year, estimating about $7.5 million to be reappropriated. The detention center medical expansion and new courtroom projects were singled out as large ongoing capital efforts. The county’s capital expenditure fund is projected to end the year with a modest fund balance but lower spending than budgeted because of incomplete projects.

Other fund notes included a projected use of fund balance in the social services fund driven by added FTE and program costs, and improved Highway Users Tax Fund (HUTF) receipts helping the road and bridge fund in the near term. Finance recommended updating all these figures in the third‑quarter review once assessor certifications and more current expenditure data are available.

The board accepted the finance office’s recommendations and agreed to bring the budget package and related supplemental items to public hearing on Sept. 9.

The presentation included multiple caveats on timing: some figures reflect preliminary assessor information and the impact of one‑time federal CARES and ARPA balances that will decline as those funds are spent. Finance staff said they plan to increase retirement assumptions and adjust projections next quarter.