Ottawa County presents recommended $305.3 million FY2026 budget; board sets public hearing for Sept. 2

County administration presented the recommended fiscal year 2026 budget and walked the Board of Commissioners through key assumptions, projected revenues and recommended uses of fund balance.

"The total fiscal year '26 recommended budget is $305,340,437," Staff member Karen said during the presentation. She told commissioners the increase from FY2025 is about 7.7 percent (7.2 percent excluding a newly included delinquent tax fund).

Administration's assumptions for the recommended budget include taxable value growth of 5.75 percent (3 percent new growth, 2.75 percent inflation), a 3 percent cost‑of‑living assumption for wages, a 3 percent health‑insurance increase effective Jan. 1, 2026, and continued receipt of certain grants where funding is expected to persist.

Karen explained how the budget treats fund balance and onetime resources. The recommended general fund uses an expected $2,924,778 of reserves; that figure includes a $2,000,000 line treated as department underspend and about $924,778 designated as planned uses (for example, contract and lawsuit‑related commitments and multi‑year grants). She described a practice of setting aside more contingency in the general fund because several positions were approved contingent on grant awards and some projects require flexibility.

The presentation highlighted programmatic changes and one‑time items, including:

- Continued investment in workforce and new positions ($3.3 million in new positions recommended and $6 million for current staffing levels), and a contingency to support potential implementation of a countywide wage study. - Additional funding proposed to support Community Action Agency programming due to state and federal grant dynamics; the packet shows a transfer increase of under $300,000 to CAA to sustain staffing tied to federal CSBG grant constraints. - Conversion of the sheriff’s body‑cam and in‑car camera deployments from a capital/insurance authority procurement into routine operational costs in the general fund. - Capital investments including countybuilding automation, courthouse security upgrades, and a $1 million placeholder for Southwest Ottawa Landfill work (staff noted that estimate is under review and may change).

Commissioners asked specific questions about contingency, how the wage‑study implementation is budgeted, the timing of grants, and several projects such as the exterior door replacement and veteran services relocation. Karen said some positions approved earlier would remain contingent until supporting grant documentation or other approvals were final.

After presentation and questions, Commissioner (unnamed) moved and another commissioner seconded a motion to set a public hearing on the FY2026 budget for Tuesday, Sept. 2. The motion passed on voice vote: "All in favor, say aye," an aye response followed and the chair said there were no objections.

Why it matters: The FY2026 budget binds county programs and capital funding; assumptions about taxable value growth, health‑insurance inflation, and the use of reserves determine whether the county meets its financial‑policy targets and maintains service levels.

What’s next: The FY2026 budget is scheduled for further review through planning and finance committee meetings; a public hearing will be held Sept. 2 and final board action is expected in late September so accounts can start Oct. 1.