Agenda 02-17-2026; 12-2 - Information Item - Memorandum - Financial Report - Second Quarter FY 2025-26

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1 ORANGE COUNTY NORTI I CAROLINA FINANCE and ADMINISTRATIVE SERVICES Gary Donaldson,CTP,Chief Financial Officer I gdonaldson@orangecountync.gov I PO Box 8181,Hillsborough,NC 272781 919.245.2453 INFORMATION ITEM To: Board of County Commissioners From: Gary Donaldson, Chief Financial Officer Date: February 17, 2026 Re: Financial Report-Second Quarter FY 2025-26 This FY 2025-26 Second Quarter Financial report provides Budget versus Actual comparisons to the prior fiscal and an update on Federal and State Grant funding. Since the last quarterly report update, Intergovernmental Revenue, which primarily represents reimbursements for Federal and State grant expenditures, are tracking consistently with prior fiscal year's reimbursement rates. The impact of the Federal Shutdown represented timing variances and no permanent cancellation of any major grant programs. The financial performance to date supports General Fund revenues covering all expenditures without any use of fund balance. The County normally receives one-third of budgeted Intergovernmental revenues by December 31 each year. The variance analysis in the table below supports this historical trend. The County dashboard (add link) indicates the program expenses to date, and FY 2025-26 revenues through December 31, 2025, are 33.2%. Both Medicaid and Supplemental Nutrition Assistance Program (SNAP) reimbursements are expected to meet budget for this fiscal year despite timing variances. The County Federal and State Dashboard has been updated to provide program spending reimbursements through December 31, 2025. Regarding American Rescue Plan Act (ARPA) spending the County has spent 96.5% of our $28.8 million U.S. Treasury ARPA allocation ahead of the December 31, 2026, spending deadline. The economic forecast reports below provide insightful data as well: UNC Charlotte Economic Forecast