Finance staff presented a multi-hour review of the proposed 2026 budget and the board agreed to set a preliminary levy of 4.95% as they continue work before the final levy certification.

Finance Lead (S4) walked commissioners through revenue and expense changes, noting the total property-tax base and unpaid amounts after November settlement. The presentation highlighted shifting revenue dynamics: county program aid (CPA) volatility, increased investment income, and federal/state grants that affect project timing and fund balances.

Key budget items and changes:

- Preliminary levy: Staff recommended and the board accepted a preliminary levy rate of 4.95% to be finalized later this month, with a final levy-setting hearing scheduled for Dec. 16.

- Appropriations: Staff proposed adjustments to standard appropriations (historical society, library, SWCD, ag society) and a suggested reduction in the county share for Rainbow Rider from ~27,000 to about $13,013 based on updated vehicle replacement counts.

- Project funding and grants: The board discussed a carbon-reduction federal grant for a Casa 18 project that expanded availability to about $1,000,003; staff emphasized the need to claim available funds or risk losing them. Road/bridge project changes were presented to balance state and federal timing and to avoid unnecessary bonding.

- Fund balances and inventories: The presentation included five-year trend analysis showing the levy ask up ~18% over five years and human services rising ~30%. Road and bridge fund balances include gravel inventory valuations; staff emphasized timing risks when state and federal revenue arrive late.

- Spend-downs and reserves: Staff reviewed past and projected use of spend-downs and recommended measured use of reserves for one-time expenses to keep the levy palatable while prioritizing high-impact needs.

Several commissioners asked for additional detail on specific line items and expressed interest in continued review at upcoming meetings and the evening TNT public session. The board directed staff to make the minor appropriation adjustment to Rainbow Rider and to proceed with the preliminary levy notice and TNT outreach.

What happens next: Finance staff will post the preliminary levy, present material at the TNT public meeting, and return with any final adjustments before the board sets the final levy on the scheduled date.