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Herndon council amends FY2027 budget to carry over reserves and encumbrances from FY2026
Summary
Council adopted Ordinance 26‑O‑19 and Resolution 26‑GS‑43 to reauthorize in‑progress FY2026 transactions into FY2027, including $18.5 million in capital reserves (about $12.2 million for water/sewer projects) and nearly $8.5 million in encumbrances; no new spending was proposed.
The council on July 28 adopted Ordinance 26‑O‑19 to amend the FY2027 adopted budget and passed a companion reserve resolution to reauthorize funds for projects and obligations that were in progress at the FY2026 close. Finance Director Marjorie Sloan said the amendment does not introduce new spending but reappropriates in‑progress transactions and encumbrances into FY2027.
Sloan told council that identified capital reserves total $18,500,000 with the main drivers being water and sewer projects totaling about $12,200,000. She said operations and maintenance reserves were identified at roughly $2.1 million and encumbrances just under $8,500,000, including capital projects, energy conservation work and remaining ARPA-related allocations. Council members asked clarifying accounting questions and Sloan confirmed that the encumbrances represent amounts budgeted but not yet spent and will be carried forward for completion. Both the budget amendment ordinance and the reserve resolution passed by roll call 6–0 with one member absent.
Council passed the measures on the consent of the roll call after a public hearing; staff said specific project lists and follow-up reporting will be part of normal budget documentation.
