Kent County projects FY2026 surplus despite lower revenues, staff says

Jeff presented the Kent County Finance and Infrastructure Committee with the quarter 2 fiscal-year 2026 financial status report and said the county expects to end the year with a surplus and to remain in compliance with policy. "There's nothing out of the ordinary through the end of the quarter," he told the committee.

The report shows year-to-date revenues down about 3.5% compared with the prior year while expenditures were up about 1.5%. Jeff attributed some of the variance to timing of tax payments and to mark-to-market adjustments tied to lower interest rates.

The presentation highlighted several specific items: a one-time $700,000 receipt tied to a vacant parcel with a cell tower; departmental variance notes including a 10.3% increase in the sheriff's fund largely driven by salaries and wages; and an assigned economic stabilization amount of $40.5 million within a total fund balance of $116.7 million. Jeff said cash on hand was roughly $49.3 million — about 49 days — which he described as sufficient for cash-flow needs.

Jeff also pointed to the lodging excise tax reporting change that produced a 194% increase in the 3% lodging excise tax category compared with the prior period and said the county has budgeted a $1 million repayment of a general-fund advance that has not yet been made; the county is still owed $8 million from that fund.

Commissioners pressed for detail on some lines in the report. Commissioner Coleman asked for a breakdown of the "state special projects" fund balance shown in the materials; Jeff said the category aggregates many state and federal special revenue funds and that staff would provide a detailed list. Another commissioner asked whether the bond-reserve line for the amphitheater and soccer stadium represented pre-funding for the bond life; staff confirmed the reserve arrangement applies for the life of the bond.

The committee received the report and proceeded to other agenda items.