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Kane County finance staff warns reserves will drop below policy without spending adjustments
Summary
County finance staff told the Executive Committee that, while the general fund currently exceeds the county's 90-day reserve policy, projections show reserves shrinking below the required level by late 2026 unless spending or revenues change.
Kathleen Hopkinson, finance staff, told the Kane County Executive Committee on July 2 that the county's general fund remains above the policy minimum today but is on track to fall below it without changes.
Hopkinson said the county held about $59 million in the general fund accounts as of June 19 and forecasts roughly $60 million by Nov. 30. "General fund 2025 total expenditures were 140 and a half million," she said, noting that 90 days of expenditures equals about $35.1 million. "As of June 19, the general fund, general account and special reserve together had 59,200,000.0, which is about 24,000,000 more than the recommended 90 days," Hopkinson said.
The nut graf: That cushion could shrink rapidly if the 2026 budget holds spending and revenue at current forecasts. Hopkinson presented a projection showing the county's reserves falling from roughly $80 million to $60 million during 2025, and—if the 2026 budget and revenue assumptions do not change—declining again to about $31.5 million by the end of 2026, below the county policy target.
Hopkinson said much of the year-to-date variance is timing-related: interest and some tax receipts are posted late and contractual vendor bills sometimes arrive after year end. She singled out fine and grant revenue as items currently "on the watch list" because they are below where they would typically be for this time of year.
Board members asked how the finance office is reconciling differences flagged by the auditor and by departments. Hopkinson said finance is working internally to reconcile data and to make software processes more efficient; board members asked for a follow-up meeting with the auditor and staff to align quarterly and annual reports.
The committee discussed next steps for the ad hoc budget committee, which will meet to review departmental submissions before the full finance committee. Committee members emphasized the need to coordinate schedules so the finance committee is not surprised by late adjustments.
Ending: Hopkinson closed by saying staff will keep refining monthly dashboards and will flag items that are truly concerning versus timing effects. The committee did not take formal action on the report; members asked for follow-up materials about year-over-year variance and a convened meeting that includes the auditor for reconciliation.
