Butler County holds public hearing on proposed 2026 tax budget; no vote scheduled

The Butler County Board of Commissioners opened a public hearing Wednesday on the county's proposed 2026 tax budget, receiving a detailed presentation from the county administrator and Finance Director David McCormick that outlined revenue and expense forecasts, reserve plans and planned capital projects. The board closed the hearing with no final vote; commissioners said the board will deliberate and vote at its June 8, 2025 meeting.

The county administrator said, “As required by statute, county commissioners are required to develop and submit to its county auditor by July 15 a tax budget, demonstrating estimated revenues and projected expenses by fund.” Finance Director David McCormick summarized the draft numbers: “We are budgeting $146,100,000 of revenue for 2026” and “total expenditures that we're budgeting from the general fund for 2026, which is $132,000,000.”

The proposal projects an estimated beginning unencumbered cash balance of $164,235,447 and estimated resources for 2026 — carryover plus budgeted revenues — of roughly $310.4 million. After the draft operating and capital allocations, staff presented a projected year-end available balance they described as “potentially discretionary” of about $43.8 million before policy-set reserves and planned capital draws.

Why it matters: the draft carries several large, multi-year capital allocations that would reduce the county's unencumbered balances while preserving policy reserves. The administrator and finance staff said the budget remains “balanced” under county policy while noting longer-term structural pressures if expense growth outpaces revenue growth.

Key figures and planned allocations from the presentation: - Budgeted general fund revenues: $146,100,000 (presented as a 9.8% increase from the adopted 2025 budget in one slide and described in discussion as roughly $12.9 million higher than 2025 budgeted revenues). - Budgeted general fund expenditures: $132,000,000 (a 4.5% increase from 2025 adopted budget). - Estimated unencumbered beginning balance: $164,235,447. - Investment income budget: $17,500,000 (finance staff said this increase reflects fixed-rate instruments and portfolio timing). - A $15,000,000 annual contribution into a capital reserve (the fourth year of contributions), with $45,000,000 currently in the capital reserve and $35,000,000 of identified planned spending over the next two years for projects that include a 911 emergency communications center and coroner consolidation. - A continuing $5,000,000 annual allocation to the county engineer for roadway and enhanced paving projects (the board referenced a multi-year 3–5 year commitment). - A multi-year capital plan for the county's 911 radio/telecommunications system; staff said the sheriff estimates roughly $5,000,000 will be needed over the next five years for tower and backbone equipment replacements. - Policy reserves shown in the draft: $16,000,000 budget stabilization and a nine-month cash reserve of $93,500,000.

Staff emphasized the personnel cost component of the expense increase: McCormick and the county administrator told commissioners that of the roughly $5.7 million increase in budgeted expenses, about $5.3 million relates to personnel costs (salaries, retirement and health benefits). The board has a hiring moratorium in place; staff said the moratorium reduces near-term hiring but that prior pay adjustments are reflected in the 2026 personnel projections.

During discussion, commissioners and staff noted the county's previously adopted fiscal policy and said staff will provide more multi-year forecasting and monitoring under that policy. The administrator referenced a county resolution adopted in December 2024 establishing fiscal policy goals and tracking requirements.

No public speakers addressed the budget at the hearing. The board opened the hearing by voice vote and later closed it; recorded votes for opening and closing were affirmative by Commissioner Carpenter, Commissioner Rogers and Commissioner Dixon. The board stated it will deliberate and formally vote on the 2026 tax budget at its June 8, 2025 meeting.

Next steps: Staff said it will refine the figures as state-level legislative changes become final and will present the operating budget later in the year along with the certificate of estimated resources the county auditor must certify by statute.