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HomeMy WebLinkAboutAgenda 06-16-2026; 8-d - Fiscal Year 2025-26 Budget Amendment #12 1 ORD-2026-016 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 16, 2026 Action Agenda Item No. 8-d SUBJECT: Fiscal Year 2025-26 Budget Amendment #12 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: Housing 1. After a review of the Community Development Fund, staff has reconciled the actual contributions from the towns to the Orange County Partnership to End Homelessness to the budgeted amounts. This reduces the appropriation in the Community Development Fund, outside of the General Fund by $24,805 to account for this difference. 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. Department on Aging 2. The Department on Aging is estimated to receive an additional $5,000 in revenue for Community Based Services classes through June 2026. These additional funds will be used to pay instructors and purchase supplies to support the Community Based Services program. This budget amendment provides for the receipt and use of these funds within the General Fund. 3. The Department on Aging has received $2,150 in additional revenue for the Operation Fan Program in contributions from Dominion Resources, Duke Energy Carolinas, Duke Energy Progress, and Valassis through the North Carolina Division of Aging and Adult Services and made available to Area Agencies on Aging (AAA). These funds are to purchase fans in support of a summer program intended to provide a more comfortable living environment 2 and reduce heat related illnesses. This budget amendment provides for the receipt of these donated funds in the following Department on Aging Grant Project Ordinance, outside of the General Fund: Operation Fan Grant($2,150) - Project# 71154 Revenues for this project: Current FY 2025-26 FY 2025-26 FY 2025-26 Amendment Revised Operation Fan Grant $9,822 $2,150 $11,972 Total Project Funding $9,822 $2,150 $11,972 Appropriated for this project: Current FY 2025-26 FY 2025-26 FY 2025-26 Amendment Revised Operation Fan Expenditures $9,822 $2,150 $11,972 Total Costs $9,822 $2,150 $11,972 ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 2: HEALTHY COMMUNITY OBJECTIVE 7. Invest in services and programs that improve the health and quality of life of the community (e.g., recreation and public open spaces, arts, etc.) • GOAL 6: DIVERSE AND VIBRANT ECONOMY OBJECTIVE 1. Provide family-oriented and inclusive programming or other cultural events for residents and visitors. Southern Campus Veterans Memorial 4. The Southern Campus Veterans Memorial project has received $5,525 in additional donations through the Veteran's Memorial, Inc. These funds will be applied to the Veteran's Memorial Capital Project to help fund phase 4 of the project. This amends the following Capital Ordinance: Southern Campus Veteran's Memorial($5,525) - Project# 10060 Revenues for this project: Current FY 2025-26 FY 2025-26 FY 2025-26 Amendment Revised Community Giving Funds $78,908 $0 $78,908 Veteran's Memorial Inc/Donations $104,000 $5,525 $109,525 From General Fund $55,000 $0 $55,000 Total Project Funding $237,908 $5,525 $243,433 Appropriated for this project: Current FY 2025-26 FY 2025-26 FY 2025-26 Amendment Revised Grant Expenditures $237,908 $5,525 $243,433 Total Costs $237,908 $5,525 $243,433 3 • GOAL 2: HEALTHY COMMUNITY OBJECTIVE 8. Invest in services and programs that improve the health and quality of life of the community (e.g., recreation and public open spaces, arts, etc.) Miscellaneous 5. Lease payments for Well Dot 501 & 503 W. Franklin Street, Chapel Hill and Dickson House at 150 East King Street, Hillsborough were previously budgeted in the Debt Service Fund. Due to accounting changes related to Governmental Accounting Standards Board (GASB) Statement 87— Leases, the lease payments are to be received in the General Fund starting in FY 2024-25. This budget amendment recognizes the corrections within the General Fund for FY 2024-25 and FY 2025-26 by appropriating fund balance of $1,000,000 and recognizing $410,816 in lease revenue in the General Fund and increasing authority of the Debt Service Fund by $1,000,000. 6. At the Business meeting on April 7, 2026, the Board approved the County applying for the State's lottery proceeds for the two (2) school districts. The County uses lottery proceeds to pay down existing school related debt. In exchange, the County redirects the County funds that would have covered the debt to provide additional pay-as-you-go funding. This amendment recognizes the lottery proceeds revenue in the Debt Service Fund and redirects the County transfer of $1,190,048 to the School Capital Fund. 7. In order to comply with new Governmental Accounting Standards Board (GASB) pronouncements on leases and subscriptions, the County must budget for the long-term obligations of each new lease or subscription. These are non-cash transactions, while the County still budgets annual lease or subscription payments each year as cash transactions. The County must report all the long-term obligations as budgeted expenditures, which impacts the County's budget versus actual reporting. This amendment sets up a budget of $10,000,000 in the General Fund to account for the non-cash GASB requirements. 8. The County holds Social Security benefits for Department of Social Services' (DSS) foster children in the DSS Trust Fund. Staff spend funds from the trusts to serve the needs of the children in the foster system. Even though the County does not contribute to the trust, the County must recognize the activity of the Trust Fund as a special revenue fund to meet with accounting standards. This amendment increases the authority of the DSS Trust Fund by $40,000 to ensure audit compliance. 9. The addition of the RX Save Card to the employee benefit plan was approved at the Board of County Commissioners meeting on March 5, 2026. The first payment of$70,000 for this benefit is due during FY2025-26. This budget amendment recognizes an additional $70,000 in interest revenue in the General Fund, which is transferred to the Health and Dental Fund to cover the payment using additional interest income. 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. 4 Environment, Agriculture, Parks and Recreation (DEAPR) 10.The Department of Environment, Agriculture, Parks and Recreation has received $7,000 in donations for the Little River Regional Park and Natural Area, a Durham/Orange County Partnership, from the annual Trail Run. This donation from the Trail Heads organization will be utilized for park projects and equipment. This amendment recognizes these donations and appropriates the additional funding in the following grant project ordinance, outside of the General Fund: Little River Park($7,000) - Project# 20012 Revenues for this project: Current FY 2025-26 FY 2025-26 FY 2025-26 Amendment Revised Donations Revenue $75,936 $7,000 $82,936 Total Project Funding $75,936 $7,000 $82,936 Appropriated for this project: Current FY 2025-26 FY 2025-26 FY 2025-26 Amendment Revised Project Expenditures $75,936 $7,000 $82,936 Total Costs $75,936 $7,000 $82,936 ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 2: ENVIORNMENTAL PROTECTION AND CLIMATE ACTION OBJECTIVE 7. Conserve and protect high priority open space, including Natural Heritage sites, nature preserves, watershed riparian buffers, and prime/threatened farmland. County Manager— Arts Commission 11.The Arts Commission has received a $5,000 contribution from the Town of Hillsborough for the support provided by the Orange County Art Commission toward the July 4, 2026, "Together We are America" event to be held in Downtown Hillsborough. This budget amendment recognizes the funds within the Article 46 Fund, outside of the General Fund. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 6: DIVERSE AND VIBRANT ECONOMY OBJECTIVE 1. Provide family-oriented and inclusive programming or other cultural events for residents and visitors. FINANCIAL IMPACT: The approval of Budget Amendment#12 increases the authorization of the General Fund by $11,485,816, the Multi-Year Grant Fund by $9,150, the Employee Health and Dental Fund by $70,000, the County Capital Fund by $5,525, the Debt Service Fund by $1,000,000, The Article 46 Fund by$5,000, and the DSS Trust Fund by$40,000. It also decreases the Community Development Fund by $24,805. RECOMMENDATION(S): The Manager recommends the Board approve the budget, grant, and capital project ordinance amendments for Fiscal Year 2025-26. 5 Year-To-Date Budget Summary Fiscal Year 2025-26 Grants Employee Community County Debt Service Article 46 DSS Fund Budget Summary General Fund Health and Development Sales Tax Trust Fund Dental Fund Fund Capital Fund Fund Fund Original Budget Revenue $298,315,586 $283,500 $15,724,204 $1,066,592 $36,635,068 $753,825 $6,391,998 $260,000 Interfund Transfer Revenue $665,729 $0 $3,674,204 $0 $1,400,000 $32,331,700 $0 $0 Fund Balance Appropiation $7,056,130 $0 $0 $513,671 $0 $1,672,832 $0 $0 Total Original Budget $306,037,445 $283,500 $19,398,408 $1,580,263 $38,035,068 $34,758,357 $6,391,998 $260,000 Additional Revenue Received Through Budget Amendment#12 (June 16th) Grant Funds $1,017,213 $1,304,179 $763,235 $1,408,059 $1,190,048 $5,000 $40,000 Non Grant Funds $11,088,265 $168,350 $2,312,466 $89,184 $1,154,272 Additional Interfund Transfer Revenue $329,261 $23,269 $470,000 $290,954 $220,768 Additional Fund Balance Appropriation $3,324,373 Total Amended Budget $321,796,557 $1,779,298 $19,868,408 $2,343,498 $42,046,547 $36,258,357 $7,551,270 $300,000 Dollar Change in 2025-26 Approved Budget $15,759,112 $1,495,798 $470,000 $763,235 $4,011,479 $1,500,000 $1,159,272 $40,000 Change in 2025-26 Approved Budget 1 5.15%1 527.62%1 2.42%1 48.30%1 10.55%1 4.32%1 18.14%1 15.38%