Item:
Title
Budget Ordinance Amendment No. 25BCC094 Appropriating $2,826,700 of General Fund Fund Balance to Support Increasing Benefits Fund Expense Capacity and Additional General Fund Expenditure Capacity and Transferring General Fund Available Unspent Funds Among Functional Areas for End-of-Year Reconciliations
Body
Date of BOCC Meeting: June 9, 2025
Request for Board Action:
Agenda Text
The Board is requested to approve Budget Ordinance Amendment No. 25BCC094, appropriating $2,826,700 of General Fund fund balance. $2,000,000 will support increasing Benefits Fund expense capacity to cover increased medical costs during the current (FY 2024-25) fiscal year. $326,700 of General Fund fund balance will replenish funds in Office of Emergency Services for expenses paid for outstanding invoices for the EMS Medical Director contract. $500,000 of General Fund fund balance will offset expenses needs in the Human Services functional area to cover outstanding obligations for the joint City-County funded Unsheltered Coordinating Agency program. Also, $30,000 will be transferred from personnel lines in the Human Services functional area to the Transportation functional area to ensure adequate funding is available for final fiscal year personnel expenses.
In analyzing Benefits Plan Fund trended spending and assessing where the County’s costs for these benefits will be at the end of FY 2024-25, it is expected that expenditures may exceed the currently budgeted amount for medical (health) costs. To proactively budget for this potential overspending issue, the Board is requested to approve a $2,000,000 increase in the Benefits Plan Fund expenditure budget for medical (health) self-insurance costs and increase the Benefits Plan Fund funding source with a one-time County contribution transfer of $2,000,000 from the General Fund fund balance.
$326,700 of General Fund fund balance is requested for the Office of Emergency Services to replenish current year spending authority that was used to pay outstanding invoices from Duke University Health System for multiple years of EMS Medical Director services.
$500,000 of General Fund fund balance is needed to support the funding of an interlocal agreement between Durham County and the City of Durham for an Unsheltered Coordinating Agency. This agency facilitates housing support for individuals experiencing unsheltered homelessness. Initially established in FY 2019-20, the interlocal agreement automatically renews every three years, with FY 2024-25 marking the third year of the first contract renewal. FY 2025-26 would start the second contract renewal for three years. The requested appropriation will be used to reimburse the City of Durham for outstanding invoices related to the agency’s past three years of operation.
This budget amendment also transfers $30,000 of funds from the Human Services functional area to the Transportation functional area to support personnel expenses through the remainder of FY 2024-25. While this action occurs most fiscal years, due to the effectiveness of a management directed hiring freeze for FY 2024-25, only the Transportation department requires a funding transfer to cover personnel expense overruns.
The use of General Fund fund balance as a revenue source within this budget amendment will be offset with significant General Fund expenditure savings related “lapsed salary and benefits” that has come from the FY 2024-25 hiring freeze.
Alignment with Strategic Plan: This item aligns with Durham County Strategic Goal: Accountable, Efficient and Visionary Government
Resource Persons: Claudia O. Hager, County Manager; Keith Lane, Budget Director, Budget and Management Services
County Manager’s Recommendation: The County Manager recommends that the Board approve Budget Ordinance Amendment No. 25BCC094 appropriating $2,826,700 of General Fund fund balance, increasing Benefits Fund expense capacity by $2,000,000, allocating $326,700 to replenish funds in Office of Emergency Services for expenses paid for outstanding invoices for the EMS Medical Director contract, and allocating $500,000 to offset expense needs in the Human Services functional area to cover outstanding obligations for the joint City-County funded Unsheltered Coordinating Agency program. This budget amendment also transfers $30,000 of funds from the Human Services functional area to the Transportation functional area to support personnel expenses through the remainder of FY 2024-25.
Signature
County Manager: ____________________________