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Hernando County warns reserves will fall short if FEMA reimbursements slow
Summary
County staff told commissioners the recommended FY2026 budget will likely meet policy minimums but fall short of the board's 25% reserve goal if federal disaster reimbursements slow; commissioners discussed whether debris removal should be a localized responsibility if FEMA changes policy.
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Hernando County budget staff reported that the recommended fiscal 2026 budget will meet the county's minimum reserve policy but is unlikely to reach the board's 25% reserve goal if FEMA reimbursements continue to slow. The presentation and discussion took place during a June 20 budget workshop of the Hernando County Board of County Commissioners.
Albert Ford, a staff member and the workshop's budget presenter, told the commission the county's current total budget stands at about $951,000,000 and that "you can see the current status, of your, reserves at 21.37%." He said the board's 25% reserve objective would require roughly $6,600,000 more than the county currently projects.
The county reported two large storm responses last year that together cost more than $16,000,000. Ford said the county received an initial FEMA payment two days before the workshop that improved the near-term reserve projection, but staff warned additional FEMA reimbursements remain uncertain. "There are still some payments out there," Ford said, and FEMA reviews "are significantly slowed up and a lot of projects going there." He told the board he expects the recommended budget to be within the county's minimum policy (above 18.5%) but that the 25% goal will likely not be reached when the recommended budget is presented July 10.
Commissioners pressed staff on contingency planning if federal reimbursements decline. Commissioner Champion said the county should consider whether storm-related debris removal and other recovery costs should be financed differently if FEMA changes its reimbursement approach: "If FEMA does change, I think that'll change, you might have to have a millage that's dedicated to storm...debris removal or something like that," he said during the public discussion portion of the workshop.
Board members also discussed whether debris collection following storms should remain a county-provided service or be more narrowly targeted to properties in flood-prone zones. Administrator Rogers noted public-health and safety implications where unrecovered debris creates hazards in neighborhoods, but commissioners signaled they want a policy discussion before committing additional recurring funding.
The county will present a recommended budget to the board on July 10 and continue line-by-line workshops. Staff said they will include the current reserve projection and any updated FEMA reimbursements when they return with the recommended budget.
Votes and formal actions at the start of the workshop were limited to procedural items: the board approved the meeting agenda by motion from Commissioner Alaco, seconded by Commissioner Champion; the motion passed.
