Washington County Chief Financial Officer (staff member) told the Board of Supervisors the county’s cash position has deteriorated and that the county may delay its usual December retirement payment until February to avoid short-term borrowing.

The CFO said, “My cash position is $7,700,000 worse than it was the same time last year,” and described a larger-than-expected retirement invoice for the county of “$6,200,000,” which she called “the biggest bill I’ve seen in my career.” She said state-provided reconciliation payments and a drop in sales-tax returns contributed to the shortfall, and that the state’s retirement-rate increases — including higher rates on “tier four” and “tier six” categories — are driving higher county costs.

The CFO said the December 15 early-payment discount versus a February 1 payment changes cash math for the county: the difference in payment timing would raise the county’s cost by about $44,000, while expected investment income on the cash if left invested would be roughly $33,050 — a net additional cost of about $10,000 if the county delays payment and keeps the money invested until February. “I don’t think I’m going to have a choice this year,” she said about deferring the payment.

Why it matters: a county official said the county appropriated roughly $3.2–$3.5 million in the current budget and that any missed revenue makes that gap larger; the CFO warned that continuing trends could leave very low cash at year end. She noted that state reconciliation payments are based on actual returns and can reveal larger-than-expected declines: “If those actual returns for the quarter were down a 130,000, let’s hope that’s not our new norm.” She also said the state’s data lag (reports two months/one to two quarters behind) makes timely revenue debugging difficult.

Details and context: the CFO said the county’s invested rate recently was about 4.14 percent and described how cash, fund balance and reserve restrictions limit flexibility: “Technically, you should never mix reserve cash with operational cash.” She also told supervisors the 2025 budget already faces a projected shortfall tied to the retirement estimate, telling the board that “based on this estimate…our 2025 budget is a $118,000 short.” She said the retirement bill cycle (April 1–March 31) means a large portion of next December’s bill will affect the 2025 budget.

Discussion vs. decision: the presentation was discussion and warning by the CFO; no formal board motion was made on the retirement-payment timing during the meeting. The CFO said she would notify the board before taking action if she decides to defer the December payment to February; she also said county staff (she and Ryan) will return to the board before year end with more detail as estimates firm up.

Next steps and follow-up: the CFO said reconciliation results for the period ending September 2024 will be important for final budget preparations and that she will continue to monitor sales-tax collections (including short-term rental sales tax) and investment returns. She asked supervisors to expect a firmer recommendation before any formal decision about the December pension payment.