Carroll County delegation approves $42.07 million budget; uses $5 million from fund balance to lower 2025 tax burden

Carroll County Delegation members approved a $42,066,282 county spending plan for 2025 and voted to draw $5 million from the county's unassigned fund balance to reduce the amount to be raised by property taxes.

The move to use $5 million from fund balance was moved by Representative Smith and seconded on the floor; the delegation approved the transfer during a roll-call series of votes late in the session. Delegation members debated the county's reported fund-balance totals during the meeting after auditors and staff gave differing presentations about whether certain ARPA funds were included in the unassigned balance. Delegation members and county staff said they would follow up with the auditor to reconcile presentation differences before the next reporting cycle.

Why it matters: The fund-balance draw reduces the county's 2025 tax requirement and helps hold down property tax increases this year. Delegation members and staff also emphasized the broader goal of keeping an adequate reserve for cash flow and emergencies while returning surplus funds to taxpayers.

Key decisions and context - Total adopted budget: $42,066,282 (countywide expenditures for 2025, including the nursing home). The delegation approved the final totals after budget and revenue items were reconciled on the floor. - Use of fund balance: $5,000,000 from unassigned fund balance was approved to reduce the amount to be raised by taxes for 2025. - Revenue totals: After adjustments and the nursing-home revenue package, the delegation recorded total non-tax revenue of $19,894,666 and determined the amount to be raised by taxes as $22,171,616.

Debate and audit questions Delegation discussion included pushback from several members who said the auditor's presentation appeared to count ARPA (American Rescue Plan Act) funds as part of unassigned fund balance. County staff and the auditor differed on whether those ARPA balances were properly shown as unassigned or as separately encumbered/assigned funds. Delegation members requested follow-up documentation showing which balances were restricted, encumbered, or freely available.

Other budget actions decided at the same meeting The delegation resolved a set of interlocking budget and borrowing items during the same session, including: - A tax anticipation note (TAN) borrowing to cover temporary cash needs (the treasurer discussed a $17 million TAN during the session and the delegation approved the TAN authorization). - Approval of the information technology (IT) budget, including staffing changes and a plan to use a mix of two county IT staff positions and contracted work during transition to a new on-premises IT system and to meet Windows 11 compliance deadlines. - Finance department changes: the delegation approved funds and a plan to transition from the prior contracted CFO arrangement toward a finance director model and reduced contracted-services spending in the finance account; the delegation also retained some contracted support to finish the current year's audit and transition.

Implementation and next steps County staff said some budget line items and transfers will be handled administratively or by the executive committee if small adjustments are needed before the tax-rate setting. Delegation members asked staff to provide reconciled statements that clearly separate: (1) ARPA funds and encumbrances, (2) true unassigned fund balance, and (3) amounts already committed to projects, to avoid confusion in future budgeting cycles.

Ending Delegation leadership closed the meeting after approving the budget package and several related motions, and noted that staff would follow up with the auditor and with members about the fund-balance presentation and other clarifying figures. The delegation directed staff to provide the requested reconciliations before the next required financial report.