Auditor: Caldwell County posts clean FY2025 results but water capital ratio flagged
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Summary
Martin Starnes & Associates presented Caldwell County's FY2025 audit reporting no material weaknesses, revenues of $98.6 million, expenditures of $100 million, and a water capital assets condition ratio of 23% (below the LGC threshold of 50%) that requires a written corrective action within 60 days.
Martin Starnes & Associates presented the county's fiscal year 2025 audit to the Board of Commissioners on Jan. 26. The auditor reported a clean/modified opinion and said there were "no material weaknesses, no significant deficiency."
The presentation said general fund revenues totaled $98.6 million in 2025 and were $923,000 over budget, while expenditures were reported at $100 million. Property tax revenue accounted for roughly 57% of the county's total revenue; restricted intergovernmental (federal and state grants) was reported at 16% and local option sales tax at 12%.
Auditors noted the county's available fund balance percentage increased by 1.7% and that the county's available fund balance sits at about 21%, above the Local Government Commission (LGC) peer-group reference of 20%. The report also highlighted water fund performance with a net operating income (excluding depreciation and principal) of about $655,000 and an unrestricted cash percentage above LGC guidance.
The audit flagged the county's water capital assets condition ratio at 23% (below the LGC threshold of 50%), prompting a required written response and corrective action plan to the LGC within 60 days of the audit presentation. Officials said the Collisville water tank project, once in service, should improve that ratio.
Commissioners asked for clarifications about the fund balance guidance and bond-rating implications; staff said LGC guidance is a peer-group recommendation rather than a statutory mandate but that peer-group variances can factor into bonding decisions. County staff also reported total county debt of approximately $26 million, including school debt, near the low end among comparable counties.
Officials said the Collisville tank project is scheduled for disinfection and filling in the coming week and that final cost exceeded $4 million.
What happens next: the county must provide a written corrective-action response to the LGC within 60 days concerning the water capital assets condition ratio.
