HomeMy WebLinkAboutELECTEDS AND DIRECTORS - 2027 Preliminary Budget infoGeneral Fund
Preliminary Budget Picture
October 5, 2026
From last year to this year…
•At this point in 2025, the county's 2026 Preliminary Budget showed that we were facing a $5.4 million General Fund (GF) deficit.
•Following (difficult) reductions to department budget requests, the adopted 2026 Budget included approximately $1.1 million in GF deficit spending.
•Due primarily to sales tax revenues coming in significantly below projections, this year’s deficit is now expected to exceed $2.2 million.
•This would result in our GF year-end fund balance being closer to $3 million, rather than the $4.2 million we had budgeted.
•By policy, the County's GF reserve target is 15% of annual expenditures, which is approximately $4.5 million.
From this year to next year…
•The 2027 Preliminary Budget, including all department budget request adds, currently has a budget deficit of approximately $2.4 million.
•If we were to adopt that budget, the anticipated GF fund balance at the end of 2027 would be approximately $575,000.
•This impacts the 2028 beginning GF fund balance, well below our cash flow requirements and approx. $3.8 million below the county's GF reserve target.
•The county team will need to work together between now and the adoption of the 2027 Budget to reduce the budget deficit shown in the preliminary budget.
•The deficit reduction goal, and respective impacts on each department, will be determined through the budget process in October as we move from the preliminary budget to a recommended budget.
Upcoming…
•“Budget Day” on Tuesday, October 13
•Dialog with BoCC and colleagues
•Cooperative problem-solving mission
•Budget-in-Brief companion tool
•Storyboarding the 2027 budget
•Connection with Strategic Plan and other state priorities
•House Bill 2442 property tax levy decisions in October
•Recommended Budget in November
•Adopted Budget in December
General Fund Budget Projection
General Fund 2026 2026 2027 2028 2029
Adopted Budget Revised Budget Preliminary Projection Projection
Beginning Fund Balance 5,277,688 5,277,688 4,052,479 3,382,620 2,671,819
REVENUES 28,474,383 29,126,107 28,456,773 28,741,341 29,028,754
EXPENDITURES:29,557,938 30,351,316 29,126,632 29,452,142 29,768,561
Ending Fund Balance 4,194,133 4,052,479 3,382,620 2,671,819 1,932,012
Budget Surplus / (Deficit)(1,083,555)(1,225,209)(669,859)(710,801)(739,807)
Recommended Reserve: 15% of Expenditures 4,433,691 4,552,697 4,368,995 4,417,821 4,465,284
Unreserved Fund Balance (239,558)(500,218)(986,375)(1,746,003)(2,533,272)
68% of revenues collected YTD
69% of expenditures YTD
General Fund Budget Projection Additional Scenario
General Fund 2026 2026 2027 2028 2029
Adopted Budget Revised Budget Preliminary Projection Projection
Beginning Fund Balance 5,277,688 5,277,688 3,052,479 572,620 (138,181)
REVENUES 28,474,383 29,126,107 28,456,773 28,741,341 29,028,754
Possible Impact: 2026 Sales Tax Underperforming 1,000,000
EXPENDITURES:29,557,938 30,351,316 29,126,632 29,452,142 29,768,561
Possible Impact: 2027 Add Requests 1,810,000
Ending Fund Balance 4,194,133 3,052,479 572,620 (138,181)(877,988)
Budget Surplus / (Deficit)(1,083,555)(2,225,209)(2,479,859)(2,520,801)(739,807)
Recommended Reserve: 15% of Expenditures 4,433,691 4,552,697 4,368,995 4,417,821 4,465,284
Unreserved Fund Balance (239,558)(1,500,218)(3,796,375)(4,556,003)(5,343,272)
9/30/2026 jfs