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HomeMy WebLinkAboutORD-2026-016-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 . &d SUBJECT : Fiscal Year 2025-26 Budget Amendment # 12 DEPARTMENT : County Manager' s Office ATTACHMENT(S ) B. 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 $ 93822 $2 , 150 $ 11 , 972 Total Costs $% 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) On Project # 10060 Revenues for this project : Current FY 2025-26 FY 2025-26 FY 202&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 1 $0 $55 , 000 Total Project Funding $237 , 908 $5 , 525 $243 , 433 Appropriated for this project : Current FY 2025-26 FY 2025-26 FY 202&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 $79000 $ 82 , 936 i ALIGNMENT WITH STRATEGIC PLAN : This item supports : • GOAL 2 : ENVIORNMENTAL PROTECTION AND CLIMATE ACTION E 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 , 20261 " 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 . 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