Pima County reports stronger-than-expected 2024‑25 preliminary results; affirms fund-balance policy

Pima County finance officials told the Board of Supervisors on Sept. 16 that preliminary fiscal year 2024‑25 results are stronger than the adopted budget forecast, citing higher state‑shared revenues and departmental expenditure savings.

Director Cuaron presented preliminary, unaudited figures showing an estimated ending general‑fund balance of about $126.7 million. After applying the board’s reserve policy (17% historically, but a 15% figure used for the FY26 budget), staff calculated an excess reserve in the low‑to‑mid tens of millions; staff noted these numbers are early in the fiscal year and will change as books close.

Cuaron highlighted an $11 million increase in state shared revenue, a $3.3 million refund (Arizona Long‑Term Care Services system refund cited), roughly $359,000 in additional pooled interest, and $1.9 million increased departmental revenues. Some expenditures (public defense and the sheriff’s department) are trending above earlier forecasts but below period‑10 projections. Contingency and grant match items also influenced the reconciliation.

During debate supervisors asked for more detail on grant‑contingency lines, the $1.4 million affordable‑housing allocation referenced in the reconciliation, and an updated grant status report. Administrator Lehi agreed to provide a detailed memorandum and a joint report with county counsel on grants and related injunctions that may free or affect funds. Finance staff will continue monthly forecasts.

Separately, the board voted 5‑0 to affirm or adopt policy D22.14 (General Fund Fund Balance), a housekeeping action tied to the FY26 budget and reserve policy discussion.

Ending — County staff promised written follow‑ups on grant‑contingency specifics, the affordable housing allocation, and a monthly forecast update. The Board affirmed the fund‑balance policy 5‑0.