Caswell County manager recommends FY27 budget that closes $3.8M gap without using fund balance

County Manager Williamson presented the recommended Caswell County fiscal year 2027 budget at the June 3 work session, saying the plan closes an estimated $3.8 million gap and does not rely on appropriated fund balance for recurring operations. "This budget was developed during a very challenging financial period for Caswell County. We began the process facing a gap of approximately $3.8 million," Williamson said.

The recommended FY27 general fund totals about $33.1 million after correcting for a previously omitted fund (Fund 120). The plan keeps the property tax rate at 62.7 cents per $100 of assessed value and, according to staff, produces an increase of roughly $361,000 in recurring revenues (excluding fund-balance transfers).

Williamson framed five guiding goals behind the recommendation: protect fund balance by eliminating its use for recurring costs; maintain core mandated services; align recurring expenditures with recurring revenues; reduce departmental operating expenditures based on actual historic spending; and maintain the current property tax rate.

Staff presented the components used to close the budget gap: vacancy savings and position eliminations (~$1.6 million), budget accuracy and reductions (~$827,000), debt-service reductions (~$732,000) and new recurring revenue (~$361,000). Eliminating a separate contingency line (~$280,000) also contributed, with staff explaining the strengthened unassigned fund balance is intended to serve as the county’s cushion for emergencies.

On debt and capital, staff said debt service declines next year largely because existing obligations reach maturity. The manager reported the recently received ambulance was paid with cash rather than financed — a choice that avoids about $52,000 in debt-service expense. New debt the county is considering includes a UHF radio system and an ambulance remount, both contingent on Local Government Commission approval.

Staff identified about $944,000 in FY26 unspent savings that the board could use for one-time capital (vehicle replacements, an ambulance remount, maintenance projects) or to bolster contingency if the board prefers. Departments seeking capital will be asked to justify requests at a follow-up session.

The salary budget was reconciled to current employee data, producing an FY27 personnel budget reflecting roughly 270.3 authorized full-time-equivalent positions. Staff said careful vacancy monitoring and a conservative vacancy allowance helped produce projected salary savings.

Next steps: staff scheduled a follow-up meeting with school and department representatives the next day at 4 p.m., and the board hopes to adopt the FY27 budget on June 15; if direction is incomplete, a special meeting may be required.

Ending: Williamson reminded the board the recommended budget represents a significant shift in financial posture — protecting reserves, maintaining the tax rate and seeking long-term stability while making difficult tradeoffs.