Finance Committee: Spreadsheet Error Forces $1 Million Budget Correction; Committee Balances FY26 Plan

Montgomery County Finance & Budget Committee | October 2025

Article Summary: A spreadsheet error omitting over $1 million in expenses has forced the Finance Committee to revise the 2026 budget. The committee balanced the new deficit by increasing solar permit revenue projections and transferring interest income.

Finance & Budget Key Points:

• The Error: A clerical error omitted $1,017,650.80 in “General Administrative” expenses from the total expense calculation.

• The Fix: The committee increased Solar Permit fee revenue estimates to $110,000 and transferred ARPA interest to the General Fund.

• Outcome: The revised budget now projects a General Fund surplus of $50,756.28.

The Montgomery County Finance & Budget Committee met in a special session on Thursday, October 23, 2025, and a regular session on Thursday, November 6, 2025, to address and resolve a critical error discovered in the tentative fiscal year 2026 budget.

During the October 23 special meeting, Treasurer Nikki Lohman explained that a spreadsheet prepared by Bellwether did not pick up $1,017,650.80 in highlighted “General Administrative” expenses from page 10 of the budget document. Consequently, these expenses were not included in the “General Government” expense totals, resulting in General Fund expenses being significantly under-reported throughout the budget process.

To address the shortfall caused by the correction, the committee implemented several revisions. They recommended increasing the projected revenue for Solar Permit Fees from $75,000 to $110,000. Additionally, the committee moved to decrease Professional Services expenses from $21,600 to $9,600.

Further financial maneuvers included transferring $322,692 in American Rescue Plan Act (ARPA) interest into the General Fund. Within the Coal Fund, $550,000 previously designated for contingencies was moved to “Transfer Out-General Fund.”

At the November 6 meeting, it was reported that these changes resulted in a General Fund surplus of $50,756.28. The committee voted to recommend the FY2026 budget with these validations to the full board.

Finance Committee Briefs

• Cyber Insurance Renewal: Eric Braasch of Dimond Brothers Insurance presented renewal packages showing a $35,000 (7.18%) increase for FY2026. The committee recommended approving the insurance package for a total of $523,001.

• Taylor Springs Payment: The committee recommended adding the Village of Taylor Springs to the Pre-Approved Payment List to handle sewer services for the new Highway Department building.

• Tax Sale Approved: The committee reviewed and recommended a resolution authorizing the sale of a property in Grisham Township (Parcel 20-22-333-015) to Fatmir Dzabiri for $838.00. The county will receive $300 from the sale for its certificate of purchase.

• Bellwether Contract: The committee reviewed an invoice from Bellwether for $6,000 for budget services, accompanied by an apology from the firm regarding flaws in the process. Treasurer Lohman will prepare a voucher for the invoice.