Washoe County budget staff urges commissioners to keep modest contingency, consider ARPA interest to fund positions

Washoe County finance leaders briefed the Board of County Commissioners on May 13 on final changes to the fiscal year 2026 budget and sought direction on contingency levels and how to handle several positions now paid with ARPA (American Rescue Plan Act) funds.

Chief Financial Officer Abby Yukooben told commissioners the staff recommendation is to budget a 1.5% general-fund contingency (about $6.8 million) for FY26, down from last year’s 3% practice. She said the contingency level balances near-term revenue flattening with known cost pressures such as contract escalators and outstanding requests for augmentations. “We would propose that you budget 1.5% or $6,800,000 for contingency,” Yukooben said.

The presentation detailed three options staff will use if revenues or costs shift after adoption: routine intra-function transfers, augmentations allowed under Nevada law for new revenues or audited fund-balance changes, and funding for previously unbudgeted grants. Budget Manager Lori Cook summarized the technical steps county finance must take to comply with Nevada Department of Taxation rules and explained how year-end audited numbers affect allowable augmentations.

A second, specific recommendation was to move eight positions currently supported by ARPA interest into the general fund and pay them from earned ARPA interest for up to five years. Yukooben said the county has about $6 million of interest available from ARPA funds, enough to cover the positions for several years, and that departments have reported recruitment difficulties tied to the temporary funding source.

Commissioners asked for further clarity and monitoring. Commissioner Andreola and Commissioner Garcia expressed support for the recommended contingency and the ARPA-interest option to stabilize staff recruitment. Commissioner Clark pressed administration for evidence the county is not overspending given large one-time and recurring revenues and requested a plan showing how the county manager’s office and other leadership will share cuts if departments are asked to tighten budgets. Several commissioners asked for monthly briefings starting after the budget is adopted so the board can track vacancy savings, revenues (including the c-tax detail when the state provides it), and key departmental metrics.

Staff confirmed the tentative-to-final changes include: an increase in projected pooled interest revenue (from $5 million to $7 million), a one-time general-fund transfer to cover the ARPA positions if the board directs it, and reallocation within library expansion funds to make those dollars available as needed. Cook noted that the county’s final budget must be filed with the Department of Taxation by June 1, and that the board will hold the public hearing and final adoption at the May 20 meeting.

The board did not take binding budget votes on May 13; staff asked for direction to incorporate the contingency and ARPA-interest options into the final budget document for adoption next week. Several commissioners signaled general support for the proposals but requested written follow-up with department-level briefings and a schedule for monthly financial updates beginning in July.

If adopted May 20 as currently recommended, the budget would include a modest contingency and a limited, time-limited plan to use ARPA interest to stabilize positions that have struggled to recruit under temporary funding.