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Finance staff updates 2026 budget projections after higher actuarial retirement estimate; department charge rate adjusted
Summary
County finance staff reported a higher actuarially determined contribution (ADC) estimate for retirement in 2026, prompting adjustments to projected benefit costs, fund balance management and the percentage charged back to departments. Staff also noted an updated indirect cost plan and a slight shift in the budget approval timeline.
Finance staff presented updated budget projections after receiving the October ADC estimate and an updated indirect cost plan. The ADC estimate for 2026 arrived higher than earlier estimates, prompting staff to increase projected retirement benefit costs for 2026 and carry those increases into later years.
Finance staff explained the mechanics: mid‑year in 2025 the county temporarily adjusted the charge to departments to 10% to cover a larger ADC; for the 2026 budget staff proposed reducing the charge percentage to 8.5% (from the temporary 10%) while reflecting the higher ADC estimate in projections. The general fund typically pays roughly 62.5% of the total ADC, staff said.
The higher 2026 ADC led to a $200,000 increase in the fund‑balance management amount for 2026, which reduced projected unassigned fund balance for 2027–2029. Staff also updated subsidy figures after the indirect cost plan and increased one‑time money projections by $200,000 based on fund balance management changes.
Staff noted the county typically receives the ADC estimate in October and the final ADC in the following year; historically estimates have been close to final figures, often within a few hundred thousand, though market returns and employee statistics can change results. Finance staff said the last fee schedule adjustment was in 2022 and that a fee review is expected in the coming years with input from a committee that includes members of the regulated community.
The updated indirect cost plan and ADC adjustments prompted a minor calendar change: budget posting and approval dates will now occur on commission meeting dates rather than finance‑committee dates. No formal budget vote occurred at this finance meeting; staff presented the updated projections for commissioner review.
Ending: Commissioners asked clarifying questions about ADC variability and thanked staff for the update.
