Osage County reviews draft 2026 budget; commissioners press for clearer midyear projections

Osage County commissioners on July 29 reviewed a draft 2026 budget and a page-by-page list of edits from staff, with presenter Scott Lloyd summarizing recent reconciliations, fund changes and items that need follow-up before the county publishes its formal hearing notice.

The discussion centered on three practical problems: (1) reconciling 2024 numbers so the county can close that audit cycle, (2) clearing up a negative carryover shown in the mid-column projections for 2026 in the general fund, and (3) confirming capital and lease payments already committed for equipment purchased late in 2024 and early 2025.

Why it matters: the commissioners set the mill levy earlier in July at the same rate as last year, but county staff told the board the assessed value rose roughly $10.9 million. That increase produces additional tax revenue if the county keeps the levy steady, but commissioners were warned the year-end “middle column” (budget-to-actual projections for 2025) still needs department-by-department checks to avoid drawing down reserves.

Scott Lloyd, who presented the packet of changes assembled by county staff, said audit cleanup is nearly complete and noted staff moved an ARPA balance into capital improvements so the ARPA fund shows zero, as expected. Lloyd also walked commissioners through the mill-levy math staff used to preserve a revenue-neutral levy and cited a line that the change in assessed value would generate roughly $490,007 in tax revenue at the current levy.

Commissioners and staff drilled into expenditures: Lloyd repeatedly urged each department to run a budget-to-actual projection from today to year end so the county can judge whether existing appropriation levels for 2026 are realistic or need trimming. He pointed out a pattern of using one-time cash balances to hold rates down and warned that repeated use of reserves could force future levy increases if not corrected.

Capital and equipment: staff added a 2025 Kenworth dump truck (noted as a lease entered in December 2024) and showed two lease amounts: $133,164.82 (three payments) for one truck and $127,289.91 for the other. Lloyd said the payments were in the packet and asked staff to add any missing payment history so the board could see which payments have been made.

Election fund and other problem areas: the packet shows the election fund with a negative unencumbered cash line in future columns; Lloyd attributed that to timing differences in election-cycle expenditures and encouraged review before publication. He also flagged a high "miscellaneous" line in 2024 and asked finance staff to reclassify items rather than rely on the catchall category.

Public-safety and service contracts: commissioners asked staff to check the ambulance contract terms (length and price escalations). Lloyd said the county’s ambulance arrangement is comparable with several nearby counties but that contract review timing should be confirmed.

Solid waste and recycling: commissioners and staff discussed landfill and recycling costs, including the county's disposal fees and the operational costs of separating recyclables. Lloyd and others urged creating a discrete budget line for recycling expenses so the county can track the program's true cost instead of burying it in commodities.

Capital improvement and multi-year planning: staff showed a multi-year capital plan concept and noted the capital improvement fund now holds capital outlay lines moved out of department budgets. Lloyd recommended the board adopt a 5- to 7-year capital plan to improve transparency and public understanding of how those dollars will be spent.

Administrative items and timing: Lloyd reviewed page-numbered handouts and circled cash balances across funds for commissioner review. He said the county needs to finalize the middle-column department projections and suggested the board plan to publish budget notice documents in mid-August to meet hearing deadlines; the budget hearing was scheduled for Sept. 15 in the evening. Lloyd advised planning for two publication attempts in case the first notice is not printed correctly.

Next steps: commissioners asked department heads to provide updated budget-to-actual projections immediately, to confirm personnel and benefit calculations (including social security and related figures), and to supply missing documentation such as lease and contract details. Lloyd said staff will continue reconciling 2024 and that the board will finalize figures for publication in August.

Ending: commissioners closed the item by directing staff to compile the requested department-level projections and contract/lease documentation and to return with finalized numbers before the publication window for the September hearing.