Committee adopts 25–30% working capital guideline and approves 2026 budget timeline

The committee adopted a working capital policy that sets a minimum target of 25% and a maximum target of 30% of the prior year’s operating expenditures as county working capital. The committee also approved a proposed timeline for the 2026 budget process.

Nut graf: Finance staff said the working capital target will ensure sufficient cash flow for high‑expense months (noted as February, August and April) and for timing mismatches (for example, grant reimbursements and property tax receipts). Staff will fold the working capital rule into a broader fund‑balance policy and return with departmental reserve proposals later.

Finance Director Sam explained the calculation method and example: unassigned fund balance minus carryforwards and restricted amounts leaves a balance that must be held between 25% and 30% of the closed year’s operating expenditures; any remaining unassigned balance above the 30% ceiling may be used for the capital improvement plan. The committee approved moving the working capital guideline forward and asked staff to return with a full fund‑balance policy.

The committee also adopted a schedule for the 2026 budget that includes a preliminary county presentation on Sept. 30, publication target of Oct. 14, a public hearing on Nov. 4 and final board adoption on Nov. 11; committees will review mandatory and discretionary program lists and capital improvement project recommendations over the summer months.

Ending: Staff will prepare the full fund‑balance policy, departmental reserve proposals and the capital improvement plan for committee and board consideration this summer and fall.