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Harnett County adopts FY 2025–26 budget using $20.2 million of fund balance; commissioners request plan to rebuild reserves
Summary
The Board approved the county—udget and included a $20,210,244 appropriation of fund balance to hold school funding and capital plans; county staff said the appropriation will leave estimated unassigned reserves near 17.5% and urged a plan to restore the policy target of 20%.
HARNETT COUNTY, N.C. — The Harnett County Board of Commissioners on June 16 adopted the fiscal year 2025–26 budget and approved an appropriation of $20,210,244 from fund balance to support operations and school funding, while directing staff to prepare a plan to rebuild reserve levels to the county’s 20% target.
The budget adoption matters because the appropriation reduces unassigned fund balance below the county—oard nd rating-agency target and the commissioners emphasized the need for a documented plan to restore reserves to protect the county—redit standing and meet future capital needs.
County financial staff said the proposed general fund appropriation and other adjustments left the general fund unchanged for the year and that the appropriation would lower estimated unassigned fund balance to approximately 17.58%. Finance staff briefed the board on the county—iscal policy: “the unassigned fund balance at that time was at 33%,” and the policy requires an unassigned fund balance of no lower than 15% with a target of 20%.
Kimberly (finance staff) explained that recent appropriations and state funding formulas have driven higher one-time uses of fund balance, and she urged the board to include a short plan in the budget ordinance specifying how the county will rebuild reserves in future budgets. She noted the county—enefit from strong reserves when borrowing for capital projects and recommended documenting the plan for rating agencies.
One commissioner moved approval of the budget “as presented with the statement that a plan of action that they have given us,” and the motion passed. After the vote county staff said the full budget document would be published online by Wednesday and the complete budget book would follow within about a week.
Board members discussed that the appropriation is allowable under county policy (not to fall below a 15% unassigned minimum at fiscal-year end) but stressed the need for a concrete, time-bound plan to return to the 20% target before the county issues future debt for capital projects such as schools. Staff said they expect residual year-end savings of roughly $2 million–$3 million this fiscal year, which could modestly improve the ending percentage.
The board also approved related budget amendments and directed staff to present a formal reserve-restoration plan during the upcoming capital-improvement planning cycle.
