County projects roughly $34.5 million FY25 surplus; officials flag EMS billing, utility and pension risks

County finance staff gave a regular budget update on Feb. 13 projecting a FY25 year‑end favorable variance of about $39.5 million, before setting aside $5 million to carry into FY27 and leaving an estimated $34.5 million available as of the presentation.

Revenue highlights cited by staff included $4.5 million in property‑tax receipts above budget and reconciliation distributions that have produced a roughly $13 million favorable income‑tax variance, although staff cautioned those reconciling dollars reflect prior years’ activity rather than current growth. Investment income was running ahead of budget by an estimated $5.5 million, driven by temporarily larger cash balances from capital projects and higher interest rates.

On the expenditure side, staff said savings largely reflected unfilled positions and lower-than‑budgeted spending. Finance staff also explained a change in how ambulance billing revenue will be treated: about $6.5 million in ambulance billing will be recorded as restricted EMS revenue rather than general‑fund revenue, which frees comparable general‑fund dollars for other uses but means the ambulance revenue can only be spent on EMS purposes.

Risks and follow-up: Officials flagged several potential pressures that could reduce the surplus, including rising electricity costs across county operations and a possible state action shifting teacher‑pension costs onto counties (Mako cited a $93 million estimate for teacher pension shifts if enacted). Staff said the next major income‑tax distribution is expected at the end of the month and that projections may change as the fiscal year progresses.