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ORANGE COUNTY ABC BOARD—AGENDA FORM <br /> Meeting Date: June 17,2025 Agenda Item#9 <br /> Regular Session X <br /> Closed Session_ <br /> Presenter/Information Contact: Tony DuBois/Ron McCoy <br /> Subject: BUDGET for Fiscal Year 2026 <br /> Attachment(s): <br /> General Manager's Budget Letter FY 2026 <br /> i <br /> 1. Attachment"Page 3"Budget Worksheet(Multi-Year Comparison) <br /> 2. Attachment"Page 4"Capital Improvement Plan <br /> 3. Attachment"Page 5"Annual Budget(Draft) <br /> 4. Attachment"Page 6"Annual Budget Ordinance(Draft) <br /> Brief Summary/Explanations: <br /> Attachment"Page 3"Worksheet(Multi-Year Comparison): <br /> Income <br /> Although sales have trended downwards over the past six months,recent declines in retail sales <br /> have been more modest. FY 2025 LBD sales trended approximately -2% lower than the previous <br /> year but are expected to level out after the summer/vacation months. Therefore, total sales for <br /> FY 2026 have been forecasted slightly above the current year,up+0.90%. <br /> Adjustments <br /> GASB 87 requires the capitalization of leases while GASB 74/75 requires the financial <br /> recording of postemployment/retiree benefits and the Board's portion of the state retirement <br /> program. Rent/lease amortization calculations are provided by DMJPS (our auditors). GASB 74/75 <br /> entries are calculated annually by actuaries while assets/liabilities related to the state retirement <br /> system are provided by the state in August.These entries are estimated for the purpose of this budget. <br /> Pa ry oll <br /> The overall increase to payroll-related expenses for FY 2026 is a modest 3.96%. It is <br /> anticipated that this year's change to Cigna Healthcare will result in a moderate increase in premium <br /> at year's end. For FY 2026, the Board's "matching" portion of the state retirement system is <br /> increasing to 14.39%, up from 13.64%. The increase to salaries and wages is projected at 4%, an <br /> increase of$105,987. <br /> Operational Expenses: <br /> Anticipated operational expenses for FY 2026 ($1,630,460) are adjusted down -0.59%, <br /> mainly in response to ongoing efforts to control costs. <br /> Page I of 6 pages <br />