budgeted expenses are $140,463,827, which is 34% of the total County
budgeted expenditures. The budgeted new revenues is currently $112,660,094.
The budget gap between new revenues and expenses is $27,803,733, which is
funded by fund balance reserves. Hopkinson noted that if the County continues
to use fund balance reserves to pay for expenses in the General Fund - General
Account at the current expense levels, the account will be depleted by 2027.
She stated that the FY2025 Special Revenue Budget, over 112 funds, is
currently $278,637,019, which is 66% of the total County budgeted
expenditures. Hopkinson addressed questions and comments from the
Committee. Discussion ensued.
Hopkinson shared a graph depicting the General Fund - All Accounts - Fund
Balance. She explained that the County's General Fund is composed of six
separate accounts that are utilized for accounting purposes only. She explained
the reasoning behind having these six accounts. She stated that the current
General Fund - General Account does not have the 90-day reserve amount.
Hopkinson presented a table depicting the General Fund - General Account -
Fund Balance total amounts. On April 14, 2025, there was $28M in the General
Account. If the County would like to have a 90-day reserve in the General Fund -
General Account, the County Board would need to transfer approximately $9M
from the Special Reserve Fund, immediately. If the County adheres to the
budget, on November 30, 2025, the County will have a total of approximately
$51M. If the County decides to have a 30-day reserve limit of about $34M, by
the end of FY2026 the fund balance will be depleted. Hopkinson spoke on the
approach to the budget and challenges of balancing the County budget. She
stated that the General Fund - General Account is funded by "unrestricted"
revenues. Sixty-eight percent of the FY2024 and FY2025 General Fund -
General Account budgets are salaries and benefits. Thirty-three percent of the
Special Revenue fund budgets are salaries and budget. Lastly, capital spending
is mostly in the Special Revenue funds, although the General Fund historically
transfers approximately $4M per year to the Capital Projects #500 - Special
Revenue fund. Hopkinson stated that the Special Revenue funds across the
County are restricted for a variety of reasons including federal grant restrictions,
state statute restrictions, and Kane County Board establishment. She alluded to
the following issues that should be evaluated as part of the FY2026 Budget: to
see if any of the Special Revenue Funds' revenue could be reallocated to the
General Fund and if capital project funds could be funded with excess reserves
in certain funds. Hopkinson shared the possibilities to consider when looking at
expense reduction, such as reviewing the deliverables and outcomes of the
specific County function and funding operating costs versus capital costs. She
spoke on the structural challenges to budgeting. She stated that functional costs
spread across multiple funds make it difficult to find all costs for a specific
department. Additionally, one-time transfers on monies from one fund to another
may not solve the underlying budgetary problem. Stable revenue sources should
be provided. Hopkinson reviewed the County's next steps in the budget process:
forecast available revenue, expenses should not exceed available revenue, cost
of living considerations for non-union employees, and the budget calendar. She
shared the Kane County Budget All Funds - All Expenses- Budget to Actual. She
reviewed the All Funds - Budget to Actual - Total Salaries and Benefits. She