County finance staff: forecast indicates roughly $20 million reserves drawdown for FY2025

Kathleen Hopkinson presented the executive committee’s monthly financial report on Dec. 3, saying the county’s general‑fund revenues are “about 2% higher than expected at this time” while expenses are running “about 4% less” than budgeted. Taken together, Hopkinson said, the current forecast is that the county will use close to $20,000,000 of reserves to fund fiscal 2025 operations, compared with a $27,000,000 drawdown that was budgeted earlier in the year.

Hopkinson identified several drivers behind the shift: fees collected by the recorder and the county clerk offices have come in higher than expected, and salary and benefit expenditures have been lower than budgeted in several large offices. She also showed charts of tax revenue trends across county funds, noting that state and RTA sales tax collections are up compared with the prior year and the 2025 budget, while local use tax has declined following a change in state law.

Committee members asked clarifying questions about reserve calculations and timing. Hopkinson explained the county calculates a rolling 90‑day reserve that changes with each year’s budget and emphasized that the county has been drawing on general‑fund reserves since 2022. No vote was required; the committee accepted the report and had no further action beyond discussion and follow‑up questions for staff.