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County staff propose $1.5M fund‑balance allocation to support FY27 services; board debates cautious midyear holdback
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Summary
Melanie, finance staff, presented a fund‑balance spend‑down plan and draft FY27 budget outlining a proposed $1.5 million allocation for client services, a $50,000 potential community needs study, and conservative revenue assumptions; board members discussed a $500,000 midyear holdback and options for a capital NOFA.
Melanie, a finance staff member for the McHenry County Mental Health Board, presented a fund‑balance spend‑down plan and the draft fiscal‑year 2027 budget, telling the Committee that the board has $5.3 million in available fund balance after reserving three months of operations. "What I'm proposing in the spend down plan is that we put $1,500,000 of fund balance into the '27 budget to support additional client services," she said, adding that the remaining $3.8 million would be held for emergency needs or future use.
Melanie walked members through revenue assumptions and budget line items: because interest income and available operating capital are lower than in past years, staff proposed conservative revenue projections (using $11.1 million actual '25 sales‑tax receipts and a modest multi‑year increase) that would yield roughly $13.35 million in total revenue when combined with the proposed fund‑balance allocation. Personnel assumptions included a 3.25% merit increase and an assumed 8% rise in health‑insurance costs.
Board members debated how much to allocate immediately versus hold for midyear. John asked whether a $500,000 midyear holdback was permissible and useful; Melanie and other staff said the midyear allocation process already exists to reevaluate needs and that the money could be reserved to respond to unanticipated demands or used for a targeted capital NOFA at midyear.
Other proposed line items discussed included a potential $50,000 community needs assessment (special study) and a marketing increase tied to a possible McHelp app refresh. Melanie said staff could phase the needs study across two fiscal years or budget it entirely in FY28 depending on board priorities and timing.
No formal budget vote occurred; Melanie said a formal budget presentation and vote are scheduled for the next month, and the board directed staff to provide further details and timelines for the community needs assessment, app quotes and the midyear allocation process.
