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Haywood County manager previews FY26 budget, flags jail debt and personnel costs
Summary
County Manager Bridal Moorhead gave an unaudited financial update showing a $7.5 million increase to fund balance, an upheld AA+ credit rating, a FY26 debt payment bump tied to the jail expansion, and personnel and benefits costs as major budgetary pressures for the coming year.
Bridal Moorhead, Haywood County manager, presented an unaudited financial preview for fiscal 2026 at the Feb. 17 Board of Commissioners meeting, saying the county closed the prior year with roughly $7.5 million added to fund balance and that S&P had upheld the county’s AA+ credit rating despite regional storm damage.
Moorhead said the county “ended last year, with revenues, outperforming expenditures and transfers of about $7,500,000,” and warned that a full year of principal and interest on the jail expansion will increase the county’s debt service in FY26 by about $623,000. He also identified personnel costs as a major driver: “Each 1% raise per year costs us about $500,000,” Moorhead said, counting payroll-related costs such as FICA and retirement.
The manager framed those pressures against other revenue trends. Property-tax collections remain strong, with collection rates in the high 98 percent range, while sales-tax receipts were down about 1.3% for July–November compared with the prior year. Investment earnings outperformed expectations and have helped offset some sales-tax shortfalls, Moorhead said.
Why it matters: The presentation lays out the principal constraints that the board will negotiate as it prepares the FY26 manager’s recommended budget: rising debt service from the jail expansion, recurring salary and retirement cost increases, and the uncertain trajectory of sales-tax revenue after Hurricane Helene.
Inverted-pyramid details: Moorhead said the county used fund balance for storm-related debris removal after the disaster and has maintained a fund-balance cushion of roughly $45 million in undesignated reserves. He described the FY26 debt increase as the result of moving from interest-only payments to full principal and interest; the jail expansion debt will remain on the books for about 20 years.
Moorhead also outlined capital needs that will factor into budget deliberations: replacement of 12 public-safety vehicles (10 for the sheriff’s office, two for inspections), two ambulance remounts for EMS, IT replacements, and facilities maintenance across roughly 700,000 square feet of county buildings. He estimated school- and college-related operating support next year at roughly $400,000–$450,000 and noted that employee medical-insurance cost assumptions remain under review.
Board members asked for additional detail as the process continues; Moorhead said the manager’s recommended budget will be presented Feb. 19 with a public hearing set for June 2 and an anticipated adoption on June 16.
Ending: Moorhead described the presentation as high-level and invited board members to schedule follow-up work sessions. No formal budget decisions were taken at the meeting; the presentation was informational and will feed the formal budget development process.
