Mental Health Board outlines FY27 budget approach, plans $1.5M fund‑balance use

Mental Health Board staff presented their FY27 budget outlook to the McHenry County Public Health & Community Services Committee on July 30, projecting $11.5 million in sales-tax revenue for fiscal 2027 and planned use of $1.5 million of fund balance to support client services.

"We're projecting 11,500,000 in sales tax revenue for the year of, '27," fiscal operations manager Melanie Duran told the committee when summarizing revenue assumptions. Duran said the board currently expects just under $11.4 million for fiscal 2026 and that the '27 projection reflects a 3.5% increase over the most recent actuals.

Duran outlined fund-balance and reserve policy: available fund balance was reported at about $5.3 million, a three-month reserve target (about $3.4 million) and approximately $6 million invested with the county treasurer. She said the board used more fund balance in prior budgets when sales-tax estimates were lower but expects to use less than the $1.9M budgeted for FY26 as actual receipts came in stronger.

On expenditures, staff said personnel adjustments (eliminating one position and reclassifying another) will reduce personnel costs about $2,000 while allowing the board to increase client-service funding by roughly $673,000. Staff also described a one-time capital project to replace fluorescent fixtures with LEDs, estimated near $88,000, which the presenter said is to comply with state lighting/energy requirements mentioned in the presentation.

Committee members asked about insurance-cost assumptions (Duran cited a roughly 20% rise in premiums) and about the investment policy with the county treasurer; staff said investments have provided liquidity and they have not needed to draw on invested funds this year.