Henderson officials warn of tight budget after audit delay; manager proposes $3 million credit line to spur redevelopment

At a Feb. 18 strategic planning retreat, Finance Director Joey Fuqua told the Henderson City Council that a cyber attack delayed completion of the FY25 audit and left the city’s fund balance under pressure, potentially constraining the FY27 budget. Fuqua said compliance documentation for the Kerr Lake Regional Water plant remains missing and must be secured before the audit is fully closed and staff can complete budget entry for the next cycle.

Fuqua reported that the city’s FY24 unassigned fund balance was $6.7 million but estimated FY25 expenditures exceeded revenues by about $1 million, reducing the fund balance to roughly $5.7 million. He said the city has relied on fund balance to cover salary adjustments aimed at remaining competitive with neighboring municipalities and warned the pattern could continue unless…