Independent auditors brief commissioners; budget work session focuses on mills, roads and reserves

Auditors from Derek Dittmer Phillips presented Coffey County’s financial statements for the year ended Dec. 31, 2025, and then commissioners used the report as the basis for an extended budget work session on July 13.

Emily Franks, the auditor, told the commission the firm issued an unmodified opinion on the county’s regulatory-basis financial statements but explained the difference between that and a GAAP opinion. She reviewed cash balances (county funds, agency funds), long-term debt and footnote disclosures. Franks called out stewardship and compliance items, including a negative cash balance in an intellectual disability fund and several budget lines that exceeded statutory limits; she noted those items are disclosed in the audit schedules and will be corrected in the coming budget cycle.

Using the audited numbers as a starting point, county staff and commissioners discussed the revenue-neutral rate (RNR) calculation and department requests. The rural fire district’s budget request would raise its mills from a revenue-neutral 1.786 to roughly 1.928, and staff reminded the commission of the July 20 deadline to notify the county clerk if the board intends to exceed the RNR. Commissioners tentatively discussed notifying the clerk of a top-line mill number (discussions centered on 53.999–54.79 in several exchanges) that can be lowered before the formal budget hearing; staff said the number must be provided by the clerk notification deadline.

Commissioners debated options to reduce the general fund — possible cuts of $4–4.5 million were mentioned as the magnitude needed to return to a revenue-neutral position — and examined specific lines where reductions could be taken (contractual services and capital outlay). Road and bridge priorities and an asphalt program were a focal point: staff described trade-offs between chip seal and hot-mix overlays, and noted special highway and equipment reserve funds that could be used to smooth project timing. A number of capital projects (radio towers, law enforcement center utilities, equipment reserve draws) were discussed as near-term budget drivers.

During the meeting the commission also authorized staff to submit a tentative levy notice to the county clerk so the required public notice can go out; commissioners asked staff to provide updated figures later in the week so the board can refine the levy before the public hearing. The auditors and finance staff will return with revised numbers and suggested line-item reductions.

Separately, after an executive session earlier in the morning, the board was told County Appraiser Connie Lawrence will submit her resignation effective Aug. 31, 2026; that announcement came as an outcome of a personnel discussion and was provided in open session for the record.