Caswell County manager presents $33.1 million FY27 budget, holds tax rate steady

Miss Williamson, Caswell County manager, presented the recommended FY27 general fund budget of $33.1 million to the Caswell County Board of Commissioners on May 27, 2026. The proposal holds the county's property tax rate at 62.7 cents per $100 of assessed value and removes recurring use of fund balance to restore structural balance.

"I am pleased to present for your consideration the FY27 recommended annual budget for Caswell County, which is a balance in accordance with the local government budget and fiscal control act," Miss Williamson said, framing the plan as a short-term corrective measure to preserve reserves while maintaining core services.

The manager said the FY27 recommendation closes an estimated $3.8 million gap created when one-time federal ARPA funds, used in prior years for recurring expenses, ended. According to the presentation, the county's unassigned fund balance dropped to approximately $1.8 million (about 5—' 6% per the FY24 audit), prompting a strategy that avoids recurring appropriations from reserves. Miss Williamson told commissioners that eliminating assigned fund-balance appropriations could raise unassigned reserves to roughly 11.1% (about $3.6 million), above the local government commission's recommended 8% minimum.

Key drivers and mandated cost increases identified in the presentation include higher employer retirement contributions (+$99,000), increased employer health insurance costs (+$151,000), a reduction in federal reimbursement for SNAP administrative costs (a local cost of roughly $78,000 for the county), and changes to Medicaid redeterminations that will increase county workload and require position reclassifications (budgeted at $9,000). Taken together, Miss Williamson said these mandated items total roughly $337,000.

To close the remainder of the gap without raising taxes, the recommendation relies on four main strategies: budget right-sizing based on three-year historical spending (about $527,000 of reductions), a position audit and a vacancy/turnover allowance (budgeted vacancy savings of approximately $1.3 million, equivalent to 29 positions), deferral of capital projects, and projected natural revenue growth (about $361,000).

Public safety capital needs are addressed with targeted debt financing rather than one-time fund-balance spending, the manager said. A previously planned debt issuance for a new ambulance was recommended for delay to save roughly $52,000 in recurring debt service; the budget moves forward with financing a $271,000 ambulance remount over five years (first-year debt service about $45,000) and proposes financing a needed $675,000 UHF radio system over 10 years (first-year debt service about $50,000).

Education funding requests were largely held flat. Miss Williamson said Caswell County Schools' operating allocation remains at the FY26 baseline. Piedmont Community College requested increased operating and capital support; the recommended allotment is $923,689 with a proposed use of lottery funds to address $845,800 of unfunded school capital requests only if both the board and the school board agree.

The presentation also identifies reductions to special appropriations for local nonprofits and community groups (examples cited by Miss Williamson: Art Council, Partnership for Children, Caswell Historical Foundation) and recommended fee increases in the Solid Waste fund to cover higher hauling, disposal and environmental compliance costs (availability fee from $55 to $64 and disposal fee from $75 to $83, expected to generate about $186,000).

Miss Williamson cautioned that the recommended FY27 budget is "lean" and does not include a general contingency or a cost-of-living adjustment for employees. She urged the board to pursue longer-term steps to rebuild fiscal resilience, including adopting a fund-balance policy, creating a capital-improvement and fleet plan, and continuing organization-wide right-sizing and performance metrics.

A commissioner praised staff for finding the savings but warned the short-term fixes could cause long-term harm if not followed by sustained planning. The board did not vote on the budget at the work session; the manager announced a public hearing on June 1 at 5:00 p.m. during the regular meeting, optional work sessions in early June, and a target adoption date of June 15.

Action taken at the close of the work session was a procedural motion to adjourn moved by Commissioner Smith and seconded by Commissioner Rose; the motion carried on a voice vote.

The manager invited questions and said additional details and materials are available by email and at upcoming work sessions.