Kane County finance director: reserves fall short of 90-day policy, pension rate to drop in 2027

Kathleen Hopkinson, Kane County finance director, told the board the 2026 budget had planned to use "over $6,000,000 in reserves" and that the county currently holds about $26,000,000 — below the county's 90-day policy target of $32,500,000. She said the draft 2027 budget proposes using no reserves, potentially allowing the county to rebuild its reserve balance if that budget holds.

Hopkinson walked commissioners through monthly cash-flow charts and fund trends, noting that property tax receipts (received primarily between June and October) drive large intra-year swings. She flagged several funds operating with temporary interfund loans and pointed to departmental salary variances — sheriff, court services, circuit clerk and state's attorney offices — as drivers of some budget differences. On pensions, Hopkinson said the employer IMRF contribution rate is 6.54% this year and that the IMRF had notified the county it will be 5.50% next year. "We're paying exactly what we pay," she said when asked whether the county was meeting pension obligations.

Hopkinson also urged staff to monitor proposed federal grant-management rules being considered by the White House Office of Management and Budget; she said one proposal could allow a federal agency to terminate grant funding mid-award and another would require more granular oversight of subrecipients. The county plans further review and a presentation to the committee of the whole if the rules advance.

Why it matters: The finance report highlights a near-term fiscal constraint (reserves below policy), planned budgeting choices for 2027 that could reverse that shortfall, and potential new federal grant requirements that may increase administrative burden for county grant managers.