Agenda 06-16-2026; 8-d - Fiscal Year 2025-26 Budget Amendment #12

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3 • GOAL 2: HEALTHY COMMUNITY OBJECTIVE 8. Invest in services and programs that improve the health and quality of life of the community (e.g., recreation and public open spaces, arts, etc.) Miscellaneous 5. Lease payments for Well Dot 501 & 503 W. Franklin Street, Chapel Hill and Dickson House at 150 East King Street, Hillsborough were previously budgeted in the Debt Service Fund. Due to accounting changes related to Governmental Accounting Standards Board (GASB) Statement 87— Leases, the lease payments are to be received in the General Fund starting in FY 2024-25. This budget amendment recognizes the corrections within the General Fund for FY 2024-25 and FY 2025-26 by appropriating fund balance of $1,000,000 and recognizing $410,816 in lease revenue in the General Fund and increasing authority of the Debt Service Fund by $1,000,000. 6. At the Business meeting on April 7, 2026, the Board approved the County applying for the State's lottery proceeds for the two (2) school districts. The County uses lottery proceeds to pay down existing school related debt. In exchange, the County redirects the County funds that would have covered the debt to provide additional pay-as-you-go funding. This amendment recognizes the lottery proceeds revenue in the Debt Service Fund and redirects the County transfer of $1,190,048 to the School Capital Fund. 7. In order to comply with new Governmental Accounting Standards Board (GASB) pronouncements on leases and subscriptions, the County must budget for the long-term obligations of each new lease or subscription. These are non-cash transactions, while the County still budgets annual lease or subscription payments each year as cash transactions. The County must report all the long-term obligations as budgeted expenditures, which impacts the County's budget versus actual reporting. This amendment sets up a budget of $10,000,000 in the General Fund to account for the non-cash GASB requirements. 8. The County holds Social Security benefits for Department of Social Services' (DSS) foster children in the DSS Trust Fund. Staff spend funds from the trusts to serve the needs of the children in the foster system. Even though the County does not contribute to the trust, the County must recognize the activity of the Trust Fund as a special revenue fund to meet with accounting standards. This amendment increases the authority of the DSS Trust Fund by $40,000 to ensure audit compliance. 9. The addition of the RX Save Card to the employee benefit plan was approved at the Board of County Commissioners meeting on March 5, 2026. The first payment of$70,000 for this benefit is due during FY2025-26. This budget amendment recognizes an additional $70,000 in interest revenue in the General Fund, which is transferred to the Health and Dental Fund to cover the payment using additional interest income. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • MISSION STATEMENT — Orange County is a visionary leader in providing governmental services valued by our community, beyond those required by law, in an equitable, sustainable, innovative, and efficient way.