County finance director reports higher tax collections and 31% fund balance at year close

HARNETT COUNTY — County finance staff reported stronger-than-expected ad valorem and sales tax collections and said the county closed the prior fiscal year with a 31% fund balance.

Kimberly Honeycutt, who presented the midyear financial update, said ad valorem tax collections for the period compared to the prior year were 10.32% higher and that, as of the January posting, 91.1% of the ad valorem tax budget had been collected. Honeycutt told commissioners the levy collection rate for 2024 was 99.38% as reported for audit purposes.

For the quarter ending Dec. 31, 2023, Honeycutt said general fund revenue was up 9.7% compared with the same period the prior year while general fund expenditures were up 12%. She told the board the county added positions and incurred election-related costs and that expenditures reflected investments to accommodate county growth. Honeycutt described the county’s cash position as “still very strong,” while also cautioning the board that increased spending reflected investments rather than idle funds.

Honeycutt also provided a brief update on Harnett Regional Water and solid waste operations, which she said remain “very well” and “positive” overall though large capital projects have used cash resources.

Commissioners asked for clarification on the fund balance and Honeycutt said the county closed the fiscal year with a 31% fund balance.