Hanover presents fiscal 2025 second-quarter report showing projected general fund surplus ahead of FY26 budget talks

Lauren Dahl, finance division director, presented the county’s fiscal 2025 second-quarter financial report covering the six months ended Dec. 31, 2024, and projected the year ending June 30, 2025. Dahl said general fund revenues through Dec. 31 were about $169.9 million (roughly 45.5% of appropriated revenues) and projected total year revenues of approximately $384.8 million, roughly $11.2 million higher than the appropriated budget.

Dahl attributed the positive variance to higher general property tax receipts—about $3 million higher than budget—and stronger investment income, which was projected to be about $6.1 million above appropriations. Charges for services were also higher, driven by fire/EMS billings. She reported projected year-end expenditures and transfers of about $385.8 million, roughly $11.4 million under the appropriated budget due to personnel and operating savings and a projected $4.7 million return from the school division.

The report projected a general-fund operating balance of about $22.6 million to be used in the FY26 county and school operating and capital budgets. Dahl also reviewed the Department of Public Utilities and the school operating fund: DPU revenues were projected about $875,000 above budget and operating expenses below budget; the school operating fund revenues and expenditures were projected roughly 3.5% below appropriations, with a projected $4.7 million return to the county.

Why it matters: The board will receive the county administrator’s recommended FY26 budget next week; Dahl said the report and projected operating balance provide context for that budget and ongoing public engagement on priorities.

Board response: Supervisors heard the presentation with no follow-up questions recorded in the transcript.

Ending: Dahl said she would take questions; with none recorded, the board moved on to subsequent agenda items.