HomeMy WebLinkAboutAgenda 06-02-2026; 8-f - Fiscal Year 2025-26 Budget Amendment #11 1
ORD-2026-013
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 2, 2026
Action Agenda
Item No. 8-f
SUBJECT: Fiscal Year 2025-26 Budget Amendment #11
DEPARTMENT: County Manager's Office
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1. Year-to-Date Budget Kirk Vaughn, (919) 245-2153
Summary
PURPOSE: To approve budget, grant, and capital project ordinance amendments for Fiscal Year
2025-26.
BACKGROUND:
Miscellaneous
1. The FY 2025-26 Approved Budget included Wage Increase funds of$1,797,262, Merit Pay
Adjustment of $451,000 and a Salary Savings allocation of -$5,169,900. This budget
amendment provides for the allocation of these funds within the affected departments in
the General Fund.
2. The Annual Grant Fund has not been used by the County for several years and is ready to
be closed out in FY 2027. The Annual Grant Fund was last used for the Senior Health
Coordination in FY 2022-23 which was primarily funded by program revenue and General
Fund support. This activity was moved to the General Fund as of FY 2023-24. This
amendment transfers the cash position of$100,000 to the General Fund to prepare for the
close out.
3. The Emergency Recovery Fund was used during COVID to track all Federal Emergency
Management Agency (FEMA) eligible expenses incurred by the County. The County had
moved $371,743 in County funds into the project to cover ineligible expenses in a prior
year. The County has finished its reporting and will transfer $80,000 back to the General
Fund. The County was able to have over$4 million dollars of eligible expenses reimbursed
by FEMA that would have otherwise been covered by County tax dollars. The fund will be
closed out in FY 2027.
4. The Health and Dental Fund, which funds employee and retiree health insurance, has
experienced higher activity for Pre-65 & Post-65 Retirees for FY 2025-26 and is expected
to exceed budget by $400,000. The County will cover this increase using the additional
revenue generated in items 2 & 3 above, and $220,000 in additional Interest Income to
cover this overage.
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5. The Risk Management Division has experienced increases for Workers Compensation
Premiums and higher than expected activity for Workers Compensation Claims and is
expected to exceed budget by $100,000. The county will use additional Interest Income to
cover this overage.
6. The Housing Choice Voucher Fund has received more revenue from the federal
government due to higher rents on voucher units. This item recognizes $1,000,000 in
additional revenue and authorizes expenses in the Housing Choice Voucher Fund, outside
of the General Fund.
7. The Chapel Hill-Carrboro City Schools District Tax Fund provides all tax revenue by the
special district tax levy generated directly to the school district. That levy is estimated to
generate an additional $750,000 above the original budget. This increases the revenue in
the District Tax Fund, outside of the General Fund.
8. The County pays monthly fees for document retention and storage in the Orange-Person-
Chatham (OPC) Retiree Health Fund, outside of the General Fund. This amendment
increases the authorization in the fund by $21,000 due to increases in storage costs.
9. The Sportsplex Fund continues to experience improved revenue performance recovering
from the pandemic. This item recognizes $1,000,000 in additional revenue, which will
support inflationary expenses experienced by the Sportsplex, and improves the position of
the enterprise fund.
10.The Inspections Fund has experienced higher inspections activity than was previously
budgeted for. This item recognizes $50,000 in additional revenue and authorizes expenses
in the Inspections Fund, outside of the General Fund.
11.The County is issuing $32 million in Series 2026-A Limited Obligation Bonds. This financing
will incur $500,000 in costs for issuance. These expenses will be budgeted in the Debt
Service Fund, outside of the General Fund.
12.The County has received additional property tax revenue in its Fire Districts Funds, and
can increase the authorization by $1,000.
ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• MISSION STATEMENT — Orange County is a visionary leader in providing
governmental services valued by our community, beyond those required by law, in an
equitable, sustainable, innovative, and efficient way.
FINANCIAL IMPACT: The approval of Budget Amendment#11 increases the authorization of the
General Fund by $500,000, Employee Health and Dental Fund by $400,000, Fire District Fund by
$1,000, Housing Choice Voucher by $1,000,000, Annual Grant Funds by $90,199, Debt Service
Fund by $500,000, Inspections Fund by $50,000, Sportplex Fund by $1,000,000, Chapel Hill-
Carrboro City Schools District Tax Fund by $750,000, Orange-Person-Chatham (OPC) Retiree
Health Fund by $21,000, and the Emergency Relief Fund by $72,860.
RECOMMENDATION(S): The Manager recommends the Board approve the budget, grant, and
capital project ordinance amendments for Fiscal Year 2025-26.
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Year-To-Date Budget Summary
Fiscal Year 2025-26
Housing Sportsplex Chapel Hill- OPC
Employee Annual Carrboro City
Fire Districts Choice Debt Service Inspections Operations Retiree Emergency
Fund Budget Summary General Fund Health and Fund Voucher Grants Fund Fund Enterprise Schools Health Relief Fund
Dental Fund Fund Fund Fund District Tax Fund
Fund
Original Budget Revenue $298,315,586 $15,724,204 $11,017,785 $8,636,500 $753,825 $1,349,341 $5,720,578 $29,557,658 $18,000
Interfund Transfer Revenue $665,729 $3,674,204 $0 $0 $32,331,700 $335,774 $0 $0 $0
Fund Balance Appropiation $7,056,130 $0 $75,000 $0 $1,672,832 $0 $0 $0 $0
Total Original Budget $306,037,445 $19,398,408 $11,092,785 $8,636,500 $0 $34,758,357 $1,685,115 $5,720,578 $29,557,658 $18,000 $0
Additional Revenue Received Through
Budget Amendment#11 (June 2nd)
Grant Funds $1,017,213 $1,000,000
Non Grant Funds $602,449 $1,000 $500,000 $50,000 $1,000,000 $750,000
Additional Interfund Transfer Revenue $329,261 $400,000
Additional Fund Balance Appropriation $2,324,373 $20,000 $15,235 $90,199.00 $21,671 $21,000 $72,860
Total Amended Budget $310,310,741 $19,798,408 $11,113,785 $9,651,735 $90,199.00 $35,258,357 $1,735,115 $6,742,249 $30,307,658 $39,000 $72,860
Dollar Change in 2025-26 Approved Budget $4,273,296 $400,000 $21,000 $1,015,235 $90,199 $500,000 $50,000 $1,021,671 $750,000 $21,000 $72,860
Change in 2025-26 Approved Budget 1.40%1 2.06%1 0.19%1 11.76%1 100.00%1 1.44%1 2.97%1 17.86%1 2.54% 116.67% 100.00%