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HomeMy WebLinkAboutORD-2026-013-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 . 84 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 . 2 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 , 0000 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 . V C co tOD O C O 00 co O N N 0) LL O Co n N O d ._ d Ce) W w 0 0 '6 o v°i voi 0 o o C U c O d d O co 0 N co)O N `' i co _ a 0iT Vo co �( 1 i CO O to O � U N N tp LO C w O .a to ti O N O. 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