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Board of County Commissioners Meeting Minutes - Final September 10, 2025 rolled over from the last fiscal year or entirely unbudgeted. At the end of the day, the current available fund balance for the General Fund was $15,226,936. Administrator Titkanich made a few comments on the use of fund balances or reserves, noting that it was customary to allocate them to one-time costs or capital projects. He pointed out that it was not considered best practice to use these reserves for recurring expenses. Using reserves for ongoing costs could lead to compounded expenses. For instance, if the County utilized $6 billion in one year, that amount would carry over into the following year's budget, necessitating a significant tax increase to cover those costs. Administrator Titkanich also mentioned that, without decreasing reserves, the new revenue for that year was $8.68 million, a decline from the previous three years. He observed a steady decrease in new revenue, raising concerns about the economy, as homes stayed on the market longer and price reductions became more common. He noted declines in building permits and impact fee revenues. Last year, new construction added $665,000 to the tax rolls, but this year, it dropped to just over $600,000. He spoke about the recent articles on the significant drop in property values in the County and the pressure from the legislature for property tax reform. If they enforced a rollback, it raised the question of how they could reduce taxes while making up for the money being taken out of reserves this year to cover not just one year's expenses, but two years' expenses. He cautioned against balancing the budget by funding recurring expenses with reserves when only $15.2 million was truly available. In response to Chairman Flescher, Administrator Titkanich noted that the total General Fund for the Municipal Services Taxing Unit (MSTU) was $78,918,193.35 and that the unrestricted portion must comply with specific policies. For instance, 20% needed to be set aside for the unassigned fund balance, 5% for budget stabilization, and another 5% for the emergency and disaster relief reserve. It was important to note that the County was currently five storms behind in receiving reimbursements from the state and federal governments, resulting in a negative balance in one of those funds. Additionally, cash -forward budget amendments and Capital Improvement Element (CIE) projects were being added to the MSTU. He stated the available fund balance out of the total of $39.3 million was $21,589.71. He noted the challenge for the Board was that they could not fund everything from the MSTU. Commissioner Moss appreciated Mr. Tony Consalo's suggestion to spend the six Indian River County, Florida Page 6