Hanover reports stronger-than-budget preliminary FY2025 results; operating balance to fund FY2026 priorities

Finance Director Lauren Nall presented preliminary, unaudited fiscal-year-2025 operating results to the Board of Supervisors.

Nall said General Fund revenues totaled about $395.1 million against a budget of $374.3 million, producing approximately $20.8 million in favorable variance. The gains were concentrated in general property taxes (about $6 million above budget), delinquent tax collections (about $2 million), and higher investment income (use of money and property about $12.7 million over budget). Year-to-date expenditures and transfers were roughly 95.1% of appropriations, producing personnel savings (about $5.6 million) and operating savings (about $10.3 million) that contributed to a projected operating balance near $40.4 million (SEG 2622–2656).

Nall emphasized the figures are preliminary and unaudited; county audit fieldwork is scheduled to begin Sept. 8 with final audited results and the annual comprehensive financial report to be presented in November. The board discussed using the projected favorable balance to support the FY2026 county and school budgets and five-year capital plan.

Public-utilities and school operating fund summaries were also presented; Public Utilities revenues and charges-for-service were above budget, and the school operating fund expected to return approximately $3.7 million to the General Fund (SEG 2678–2712).

Nall and board members stressed these are draft numbers that could change with the audit and asked staff to return with audited statements in November.

Sources: Presentation and Q&A with Lauren Nall, Finance Director (SEG 2606–2620).