photo by: Chris Conde/Journal-World

The Douglas County Courthouse is pictured Thursday, Dec. 22, 2022.

Douglas County ended 2025 with a $6.7 million budget surplus after revenues exceeded projections and spending came in below estimates.

About $1.9 million of the surplus came from revenues exceeding estimates and the remaining roughly $4.9 million resulted from expenditures coming in below budget, as departments spent less than projected or had costs that were delayed or did not materialize by year-end, according to a memo to county commissioners.

Of the total $6,790,096 surplus, departments are asking the County Commission to approve $1,644,000 in transfers on Wednesday within the General Fund – the county’s largest operating fund – to address operational needs, along with the remaining $5,146,096 be retained in the General Fund.

The General Fund specifically closed 2025 with a revenue surplus of $1,863,475, and it was driven by investment income exceeding projections by $1,444,096 and sales tax collections surpassing estimates by $617,120. Additionally, the county gained more revenue than expected for municipal and out-of-county prisoners housed at the Douglas County Jail and the Juvenile Detention Center.

The fund also ended the year $4,926,621 below the estimated expenditure budget. The memo said the reasoning was because there were unspent allocations for some county departments and “for shared costs related to (Lawrence-Douglas County Fire Medical).”

Commissioners will also be considering other transfers on Wednesday. Additional transfers are requested from other funds to help maintain financial stability, one of those proposed transfers is $20 million to reduce debt tied to the Judicial and Law Enforcement Center and Public Safety Building projects included in the Capital Improvement Plan.

Other significant transfers include $300,000 to IT, which will go towards increased hardware demands from new buildings and renovations; four different requests totaling $450,000 to maintenance for contingency funding for construction projects, renovation costs for the third-floor office about the County Administrator’s office, replacing two electric lifts and custodial equipment and supplies; and $230,000 to administration for multi-year Heritage Conservation grants and heritage events in the county.

The county currently has a fund balance policy that limits reserve funds to 25% of annual revenue. As the Journal-World reported, commissioners have faced, but not yet acted on, proposals to amend this policy after approving budget transfers that violated it. County staff told commissioners at a December 2025 meeting that they will be working to update the county’s larger finance policy this year.

Several of the county’s main operating funds currently exceed this limit: the Road and Bridge Fund holds 28% of annual expenditures, the Employee Benefits Fund has 33%, and the Motor Vehicle Fund has 34%. The General Fund is close to the limit, with 23% of its expenditures held in reserve.

IN OTHER BUSINESS, COMMISSIONERS WILL:

• Receive a presentation on the county’s food system initiatives during a work session. Much of the county’s food systems work is guided by the 2017 Douglas County Food System Plan, which centers on supporting agricultural producers and food entrepreneurs, conserving natural resources, ensuring food access and health, advancing equity, and reducing food system waste.

This work is closely informed by collaboration with the Douglas County Food Policy Council, a long-standing advisory body, as well as participation in the Kansas Food Action Network. The presentation will conclude with a request for the County Commission’s direction on priority food system issues, the desired balance of policy, planning, and pilot projects, and measures of success, with feedback to be incorporated into future work planning.

• Discuss the county’s replacement of its current public-facing budget platform Socrata. County staff are working to develop a new platform with an in-house application, and the transition is expected to improve functionality, provide flexibility for future enhancements and reduce the reliance on third-party vendors. No action will be taken, as this item is for informational purposes only.

At the meeting on Wednesday, staff will provide a walkthrough of the application’s features and demonstrate how it enhances user experience and accessibility. This change will also result in an estimated annual savings of approximately $18,000 on the IT department’s operating budget.

• Consider adopting a resolution to waive Generally Accepted Accounting Principles, GAAP, requirements for 2026. Douglas County prepares its financial statements using a regulatory, or cash basis, of accounting in accordance with the Kansas Municipal Audit and Accounting Guide, KMAAG. With this method, revenues and expenditures are recorded only when cash is actually received or paid, rather than when they are earned or incurred as under the accrual basis required by GAAP. The County has used this method since 2010, and state law requires an annual waiver to maintain this regulatory basis.

• Consider approving the 2026 Tow Service Provider Agreement. The county authorizes annual agreements with local tow contractors to participate in a non-preferential tow rotation list used by the Emergency Communications Center staff. Non-preferential tows are those called in by law enforcement for a vehicle owner or when the scene of an accident needs to be cleared immediately for safety or traffic flow.

• Consider authorizing the Public Works department to solicit bids for pavement marking services. The project consists of the application of yellow centerline markings, white edge line markings, and turn lane markings to approximately 186 miles of roadway. The work is completed in July and August, with a follow-up in October.

The County Commission’s work session will begin at 4 p.m. Wednesday in the Douglas County Commission meeting room at 1100 Massachusetts St. The business meeting will follow at 5:30 p.m. The meeting will also be available via Zoom.