Kent County reports $2.3 million favorable at midyear, finance staff says

Pat Merrick, county finance staff, told the Kent County Board of Commissioners that the county ended the first six months of fiscal 2025 roughly $2.3 million favorable to budget.

Merrick said the favorable position reflects higher-than-expected income tax receipts — about $1.3 million favorable after six months — and strong interest income from larger cash balances. On the expense side, departments and transfers were under budget, producing about $1.08 million in favorable variances, he said.

The results are uneven: Merrick told commissioners that property tax revenue is roughly $500,000 below budget, which he attributed in part to assessment appeals and reduced assessments. Transfers to other funds, including water/wastewater, are lower than anticipated largely because of a vacant division chief position and turnover, he said.

“The revenues have come in in total a little over a million too favorable,” Merrick said during the presentation, adding later that overall the county is “about 2,300,000 favorable at the end of the first 6 months.”

Commissioners asked a follow-up question about the property tax shortfall; Merrick reiterated that appeals and assessment reductions are the primary drivers. No formal action was taken; the presentation was informational and will be part of the upcoming FY2026 budget planning.

The briefing also noted favorable variances in service charges, recordation tax and property transfer tax, and that seasonal staffing and turnover continue to reduce salary-and-benefit expenses compared with budget.

County staff said they will continue monitoring revenues and expenditures through the rest of FY2025 and will incorporate the midyear results into the FY2026 budget process.