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Caswell County leaders outline fiscal challenges, recommend fund balance, capital planning and updated audits
Summary
At a Jan. 25 retreat Caswell County officials reviewed finances, saying fund balance is below peer averages, audits for recent years remain incomplete, and presenters recommended a fiscal policy, capital-improvement planning and contingency funding ahead of the FY2026 budget.
Caswell County officials and outside facilitators reviewed the county’s finances at a Jan. 25 retreat and urged several near-term steps: finish delayed audits, adopt formal fiscal policies (including fund balance and debt limits), create a capital improvements plan (CIP) and add a budget contingency for unexpected costs.
Presenters said the county’s fund balance and liquidity lag peers with similar tax bases and that audits for recent years remain incomplete. Presenters urged the board to approve a fiscal policy setting a target unassigned fund balance (the draft proposed a 20% target and a 15% minimum) and to limit new debt to a smaller share of assessed value than the state cap.
“Get the audits current,” County Manager Renee and staff told the board; auditors have not completed fiscal-year audits for recent years, and presenters said catching up is a precondition to borrowing. Presenters said some one-time COVID-era funding and late state sales-tax refunds had improved cash in 2022, but that the county still needs policies to stabilize finances.
On capital planning, presenters recommended a seven-year CIP with a $50,000 project threshold and annual set-asides to replace assets. A “very rough” county estimate showed recurring replacement needs in the general fund totaling roughly $565,000 per year for buildings, EMS remounts, vehicle and equipment replacement and HVAC/roof work; presenters said the estimates are preliminary and require a formal condition assessment.
Presenters recommended establishing contingency reserves to handle midyear, one-time needs and suggested allowing the county manager limited authority (the draft proposed up to $25,000) to move contingency funds for urgent operational needs with a report to the board at the next meeting.
The retreat also covered specific budget pressures for FY2026: a projected 6% health-insurance premium increase (estimated ~$143,000), potential vehicle and equipment replacements for EMS and other departments, possible ambulance remount costs, and a planned pay and classification study to address turnover and recruitment challenges. Staff recommended the board consider a pay study; presenters said turnover rates had been high in several departments.
No formal budget decisions or new appropriations were adopted at the retreat. Presenters urged the board to consider adoption of formal fiscal policy language presented during the session as part of the FY2026 budget process.
