Kane County finance staff report smaller-than-expected reserve draw for FY2025; audit underway

Kane County finance staff reported to the Executive Committee Feb. 4 that the county’s general‑fund reserves will be used at a lower rate than budgeted after revenues came in stronger and expenses ran below projections.

Kathy Hopkins, presenting the finance report, said the county had budgeted to use $27,200,000 in reserves for the general fund but now “it looks like we’re gonna use about 18 and a half,” citing revenues roughly 3 percent higher and expenses about 4 percent lower than expected. Hopkins also told the committee that the county’s FY2025 audit has kicked off and auditors will continue testing through March.

The presentation covered administrative items — W‑2s and 1099s were printed and uploaded, and the county put the new overtime reporting onto forms this year — and longer‑term IT work to automate payroll processing, which Hopkins said is live on a pilot payroll cycle.

Hopkins described structural drivers of the change in the budget picture. A large portion of the swing between amended budget and actuals is related to transfers out of the general fund in 2025 — roughly $12.5 million in transfers that included about $8 million moving to the capital‑projects fund — and underspending in transportation and other countywide accounts. She also noted an increase in reimbursements, including nearly $1 million the county received from the Administrative Office of the Illinois Courts for court services, which improved the revenue side.

On reserves, Hopkins walked the committee through the county’s calculation of the 90‑day reserve requirement and said the general fund and the special reserve account together are sufficient to meet the 90‑day metric under the current 2026 budget assumptions. Several commissioners thanked Hopkins for surfacing the 90‑day metric prominently in the report and asked for continued public‑facing updates.

Board members raised longer‑term implications: several noted that prior use of ARPA funds to cover salaries in prior years shifted costs into the general fund and will require fiscal discipline moving forward. Hopkins said staff will keep reviewing close items to ensure any 2026 postings are correct and will circulate the presentation to the full board.

The committee received the report; no formal board action was taken on the numbers at the meeting. The audit and further budget monitoring work will continue into March and staff said they will follow up with the board when additional adjustments or analyses are available.