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County auditor presents FY2025 comprehensive financial report, flags pension and health‑fund trends
Summary
McLennan County's annual comprehensive financial report for fiscal 2025 shows about $108 million in general obligation bonds and $61 million in revenue bonds outstanding, a pension‑related liability increase of roughly $22 million, and a declining position in the county's self‑insured health fund; the auditor recommended continued monitoring and offered follow‑up briefings.
McLennan County's auditor presented the county's annual comprehensive financial report for the year ending Sept. 30, 2025, during the May 5 Commissioners Court meeting, highlighting county debt levels and recent changes in pension and health‑insurance liabilities.
The auditor told the court the county had about $108 million in general obligation bonds outstanding and roughly $61 million in revenue bonds. The auditor also said the county's pension-related net liability rose by about $22 million over the year, a change she attributed to economic and actuarial factors used by the county's retirement system. "On page 70... those liability balances are walked forward," the auditor said while offering to circulate the full TCDRS report for commissioners to review.
The report includes two sets of financial statements: fund financials (on a modified accrual basis) and government‑wide statements that include long‑term items such as capital assets and debt. The auditor noted the county's net position and fund‑balance trends influenced budgeting decisions for FY2026. She said the county ended FY2025 with assigned and unassigned fund balance levels near 39% of expenditures and that efforts during the prior year to pare budgets were deliberate to avoid unsustainable use of reserves.
The auditor also described the county's self‑insured health fund (a proprietary fund) as operating with expenditures above inflows for the last three years; staff and consultants are evaluating options to address those trends. "The revenues have fallen below the expenditures," the auditor said of the health fund and noted consultants will recommend annual steps to correct the trend.
Questions and follow up
Commissioners asked for greater detail on liabilities and actuarial assumptions. The auditor agreed to distribute the full pension and actuarial reports from the Texas County & District Retirement System (TCDRS) and offered to hold a workshop to walk commissioners through the report's footnotes and assumptions.
The court accepted the auditor's report for recording purposes.
