Meeting of April 15, 2026

Good afternoon. I'd like to call this meeting of the Davis County Fiscal Court to order. This is our annual budget work session. And uh Mr. Johnson, I'm going to go straight to you, first item on the agenda. Yes, Judge. I've provided an agenda to this work session to guide the order of items to be discussed today. As a note, any changes to the draft budget today can be accomplished by general consensus as opposed to a formal vote since the budget will ultimately be adopted by vote. Uh that said, the documents presented today are the same as those distributed to you on March 13th of 2026. The first item on the agenda is the summary of changes from the initial draft of the fiscal year 26-27 budget, which includes items that the court has become aware of within the last month. I'll go through each item individually, and if any court member has a question or comment, please feel free to stop me, and you can reference the email that I just handed you. First item is $4 million to be increased to the state grants line. This is a House Bill 900 appropriation for the public safety facility. There is a reduction to the prior year surplus in the same amount so

as not to inflate the budget. Next item is a $500,000 increase to the state grants line. This again is a House Bill 900 appropriation for the Green River Community Food Warehouse project, and there is an expense addition to their line in the budget of 53 35 07 30 in the same amount. It was noted as for project support. We'll be a flow-through for this from the state. Next item is $20,000 increase to the state grants line. This again is a House Bill 900 appropriation for the Empowerment Academy, and there is an increase to their expense line in the budget, which is 53 15 507 25. And it is the same as the prior item listed as general program support from the state. Uh there are some other House Bill 900 items that may ultimately flow through Fiscal Court. However, if that turns out to be the case, uh cabinet of the state will send an agreement for court approval, and we will amend the budget accordingly. Uh since they will be flow-throughs, they will have a net zero impact to the operational budget in that they'll have uh a revenue and an expense in the same amount.

Next item is $100,000 to YMCA for the emergency child care services expansion that uh the court has discussed internally. Uh there is a reduction in the reserve for budget transfers line to accommodate this. Uh the item following is $260,000 to the senior citizens center. Uh Fiscal Court had announced a $500,000 maximum match to non-governmental funds raised by the senior citizens center for their project. $240,000 of that was distributed progressively in June of 2025. This is to budget the remaining amount as of March of 2026. They have raised approximately $357,000 in total. So, we would anticipate them to reach that cap in the next fiscal year. The last item is $150,000 increase to Fiscal Court contributions line for the Oberst Hayden Lawton Female Veterans Monument. There is a reduction to the reserve for budget transfers line in the same amount. Having read those, do any court members wish to hold any discussion or ask any questions on any of those changes? I'm I'm good with those. Commissioner

Pounder. Just one, Judge, and uh really it's a thank you to this court for one item in particular. And it was the uh YMCA emergency child care services. That 100,000 when uh the Judge Executive called myself and others, it was an issue that was occurring and has been occurring, I believe, throughout the state of child care. And there was a child care facility that was having issues, things were were were occurring, and so children needed to be taken care of. Um and this court stepped up and provided additional funds to help that. It's It's sometimes lost in the other numbers that you see here, but that's a good story that everyone needs to recognize that we as Fiscal Court are wanting to take care not only of our children in daycare, but making sure parents have a continue to go to work because that's what it was really based on. So, thanks thank you everybody on this court for making sure that one happens. You're you're welcome, and and that was uh easy yes for me to say, and and I will say for the public when I called each of the commissioners, um there was a yes pretty quickly on each of you. So, I appreciate

that. Um I believe that the second time the YMCA has stepped up uh when daycare to close here locally was Lourdes, and that was 40 kids. And then the next one uh the one that's kind of happening right now is is uh St. Pius X, and and uh that's 80 kids. So, um I'm glad that we were able to uh be able to step up to that. Um Jordan. Moving on to item B, this is the fiscal year 26-27 budget highlights page that you all have. I will go through each fund. For the general fund, uh general fund revenues are expected to remain steady with no projected increase in property taxes in light of the adoption of the compensating rate last calendar year. Any adjustments that have been made uh to revenues have been increased or decreased in accordance with historical trending activity. The sheriff's office subsidy is 4.99 million. The budgeted transfer to the road fund is 2.42 million, which is up from 1.75 million from the prior budget. The budgeted fund transfer to the jail

fund is 4.53 million, which is up from 3.86 million of the current budget. For the road fund, the state reimbursable project amount for flex bridge funds and other is 530,000. This is the same as the current year for projects yet to be identified and resurfacing list projects. Asphalting from the road and LGA funds this year total 1.28 million. That is the same amount as the current operating budget. County road aid is expected to drop by approximately $300,000 in light of the Kentucky gas tax reduction, so that is uh one of the explanations for the increase in the subsidy to the road fund. For the LGA fund, we are classified as a coal impact county. Our classification actually changed in fiscal year 22-23 with a decrease in annual LGA funding at that time of approximately $500,000. So, a coal impact county must expend 100% of funds in transportation categories, meaning that the $137,000 projected income in LGA will be spent entirely on the maintenance and construction of roads. For the jail fund, revenues from the housing of state prisoners are budgeted to 2.2 million based on the trending

activity. Federal prisoner revenue is budgeted at 1.7 million. The budgeted fund transfer from the general fund is again 4.53 million, up from 3.86. This increase is driven primarily by reduced revenues from federal and state prisoners and adjustments to salaries. For the economic development fund, uh simply the court has awarded funds for several projects since its inception. We'll continue to provide provide funding for fiscal year 26-27. The solid waste fund, uh the revenues are projected to remain constant, and expenses are being managed to allow this fund to continue operating as an enterprise fund, which generates its own operating revenue and pays all expenses with no assistance from the general fund or tax dollars. Gate rates were adjusted on January 1 of '24, and the revenues continue to occur at our anticipated levels. As far as budget threats, the following items could have a significant negative impact on the proposed budget's financial performance, which would include, but not be limited to, unstable fuel and energy prices, inflation and supply chain issues, lower than expected solid waste revenues, and further reductions in state funding.

The second page of that document will be the assumptions for this budget, which is a cost of living adjustment of 2.7% as calculated by the Department for Local Government. The retirement employer contribution percentages, which for non-hazardous has decreased from 18.62% to 17.43%, and then for hazardous positions, it has decreased from 35.73% to 34.72%. The budget assumes that all currently adopted taxes and tax rates will be held constant. They are listed there. Uh it also assumes that no additional debt will be issued. The Throughout the year, there will be an annual principal reduction of 1.16 million, and the outstanding principal will begin the year with 4.36 million. Do any court members have any questions about any of those items or figures? Yes, ma'am. Commissioner Marksbury. Thank you, Judge. On the jail fund, you just mentioned that uh and it's written here, the budgeted transfer amount from the general fund is 4.53 million, up from 3.86 million. This increase is driven