County Auditor Jay presented the county's proposed 2026 budget on the record and the Cole County Commission moved to receive the auditor's recommendation.

Jay said total revenues projected for 2026 are $64,000,000 compared with $66,000,000 the previous year, describing the $2,000,000 (3%) drop as a primary constraint on the coming year's spending. "Sales tax are projected just under $23,000,000," Jay said, noting those figures are based on actuals through Oct. 1, 2024, to Sept. 30, 2025, and are assumed flat for 2026.

The auditor outlined major line items and drivers. Property taxes are projected just under $7,000,000 (an increase of roughly $520,000); use tax is projected at about $4,000,000 (up from $3.7 million); ARPA funds remaining in the proposed budget total about $943,000 and, Jay emphasized, "all of those dollars need to be spent this year." He said total projected expenses for 2026 are $93,800,000, down from $99,500,000 in 2025 largely because of lower capital outlays and reduced grant expenditures.

Jay warned about reserves and fund coverage. He said the general fund begins the year at about $31.1 million and is projected to end near $17.4 million after transfers and capital outlays, which he described as roughly 11 months of reserves. He singled out the law enforcement sales-tax fund as a concern: "Our operating reserves is about 2.8% or less than a month of expenditures there," the auditor said, and called it a challenge for the sheriff's office to monitor going forward.

Capital requests include vehicle and equipment purchases and larger projects. Jay identified a set of capital requests that exceed available cash, including law enforcement vehicle purchases and EMS capital items (two ambulances, ~ $679,000, and a $500,000 station remodel for South Ridge). He also noted uncertainty in jail HVAC estimates (discussed in the packet as a number that may be $1.2 million or $2.6 million).

On personnel, the auditor recommended a 2% cost-of-living adjustment for 2026 and deferred merit increases pending a salary study. He noted full-time-equivalent county employment has grown from about 310 in 2016 to about 380 in 2025, with the majority of additions in public safety and EMS, and identified a nurse-practitioner position budgeted at approximately $110,000 that commissioners may review for continued inclusion in the health department.

After questions and brief comments from commissioners, Commissioner Hellscher moved to receive and accept the auditor's proposed 2026 budget into the record; the motion was seconded and approved by voice vote. The auditor said budget hearings with elected officials and department heads are scheduled for December, when the commission may make changes before final adoption.