Campbell County staff present early budget revenue outlook showing $3.7 million local increase

Unidentified Speaker 3 (unidentified participant) presented the county’s early revenue projections at the Dec. 9 work session, telling the board that the figures are preliminary and intended to set expectations. “This is just to get us out of the gate, to a little bit of expectation management,” Speaker 3 said as he opened the presentation.

Speaker 3 outlined the schedule for the FY budget process: a public budget forum in January, a joint meeting with the school system on Jan. 13, board books distributed Feb. 17, a work session on Feb. 24 (with a backup session on Feb. 26), and ordinance/public‑hearing deadlines in early April tied to tax billing timelines. He emphasized that the numbers shown are staff worksheets and not audited figures.

On revenues, Speaker 3 said local government revenue is fund‑based and that general property taxes remain the largest single source (typically cited as roughly $50–55 million). He listed current local rate components — “45¢ on real estate, $3.95 on personal property, $3.20 for machinery and tools, [and] 2% on transient occupancy” — and noted that a one‑percentage‑point change in a rate is roughly $200,000–$250,000 in revenue.

Staff recommended an early projection that increases local revenues from the current budget baseline. Speaker 3 summarized the preliminary rollup as a current budget figure of $76,500,000 and an early projected local revenue figure of $80,300,000, describing this as about a $3,700,000 increase — “a 5% revenue projected growth figure.” He attributed the increase to stronger book values, some catch‑up on delinquent collections related to past tax‑timing changes, and modest growth in sales and use tax receipts.

In discussing tax categories, Speaker 3 reminded the board that meals‑tax receipts flow entirely into the debt‑service fund and are not available for operating budgets: “meals tax, 100% of that goes into the debt service fund,” he said. He also described sales‑tax trends as lagging in reports (a 60‑day state reporting lag) and cautioned the board to balance conservatism against leaving revenue on the table.

Speaker 3 identified charges for services — most notably EMS billing (noted in the presentation as roughly $3 million) — as a major line in that category. He said EMS billing has experienced earlier delays from cyber‑related interruptions but is back on track and that staff is holding that line broadly flat in the early projection.

On interest earnings, Speaker 3 said the county has seen materially higher interest receipts in recent audited years (his slides showed about $3.3 million in FY25 and $3.5 million in FY24) and recommended caution about budgeting interest into ongoing operations. He suggested the board consider directing a portion of unexpectedly strong interest receipts to one‑time capital projects in the CIP rather than counting on that income for recurring expenses.

Board members asked about large expense drivers. Speaker 3 said the current CIP is out of balance by an amount he described verbally as "2.02 and a half million" (the phrase in the transcript was not numerically precise), and he cited likely cost pressures including sheriff compensation requests, expected state compensation changes, and possible increased school needs tied to changes in the composite index that may reduce state aid to schools. He recommended considering a multi‑year fund‑balance plan to close gaps.

Staff budget review sessions with department heads are scheduled for Jan. 26 (staff estimated the day running roughly 11 a.m.–5 p.m.), and board members are invited to attend to hear department requests and ask clarifying questions. Board members also discussed remote listening/attendance options; Speaker 3 warned remote presence can constrain candid department discussions and suggested limiting remote participation to listening unless procedures are clarified.

The session concluded after a motion to adjourn by Speaker 3 and a voice vote in favor. The board did not take any formal policy votes or adopt budget figures at this meeting; staff will return with audited numbers, more finalized revenue forecasts and CIP detail in subsequent meetings.

Sources: Dec. 9, 2025 Campbell County budget work session transcript (presentation and Q&A by the presenter recorded as Speaker 3).