General Fund balance declined by $45.9 million during 2025, but more than $42 million of that is attributable to internal transfers to the County’s Capital Projects Fund and the Housing Action Fund as previously recommended by the Comptroller. Similar transfers are not anticipated in 2026.
The report notes that several County funds, including the Special Grant Fund, Debt Service Fund, and Housing Action Fund collectively hold more than $11.3 million in available fund balance, yet are not covered by the County’s Fund Balance Policy. Additionally, the Workers’ Compensation and Medical Self-Insurance Funds carry more than $30.3 million in combined net position without formal reserve guidelines in place. The substantial accumulation of reserves suggests the County should periodically evaluate whether current premium levels, benefit structure, and reserve targets remain appropriate.
The Comptroller recommends that the County modify the Fund Balance Policy to include the Special Grant, Debt Service and Housing Action Funds so they remain transparent, justified, and aligned with their purpose. In addition, we also recommend modified policy or new procedures to evaluate the adequacy of net position for internal service funds.
