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Bay County auditors issue clean 2026 opinion; fund balance improves and pension shows net asset
Summary
Auditors told the Bay County Board of Commissioners the 2026 financial statements carry an unmodified (clean) opinion. The county’s general fund finished 2025 with a modest increase to fund balance, and the pension plan showed a net asset position, though commissioners questioned market risk and funding practices.
Doug Dieter, the lead auditor with Raymond, told the Bay County Board of Commissioners on July 14 that the county’s 2026 financial statement audit received an unmodified opinion, the highest level of assurance independent auditors can provide.
Dieter said the general fund balance sheet as of Dec. 31, 2025, reported total assets of about $29.9 million, with cash and investments near $23.0 million. Total general‑fund liabilities were about $4,293,000, and components of the fund balance include restricted and committed amounts; the auditor reported approximately $14.3 million in unassigned fund balance. The county had budgeted for a $5,243,000 decrease in fund balance but instead recorded an increase of $1,000,001.58, moving the fund balance from roughly $23.5 million to about $24.7 million.
On revenue and spending, Dieter said property taxes remained the largest revenue source ($19.5 million budgeted; $20.2 million collected), federal awards totaled about $9.175 million in 2025 and some federal revenue recognition was delayed because of project timing. Total expenditures were lower than budgeted (actual about $45.2 million vs. budgeted $51.7 million), in part because of vacancies and timing of planned projects.
Dieter reviewed retirement plans, reporting total pension-plan assets for the county and component units (including Bay Area Behavioral Health) near $465 million and investment income of about $59 million for 2025. The actuary’s valuation showed estimated future liabilities just under $296 million and a plan net position implying a net pension asset (overfunded position) of about $57.6 million.
On retiree health (VEBA), Dieter said assets were about $114 million at year-end 2025, up from roughly $103–104 million in 2024, with net investment income of approximately $11.5 million. He noted that employer contributions in 2025 exceeded actuarially required contributions for both pension and VEBA (pension: county contributed $1,267,000 vs. actuarial $906,000; VEBA: county contributed ~$4.9 million vs. actuarial $3.1 million).
Commissioners asked several questions about long-term reliance on property taxes and the risk that market losses could reverse the recent overfunded position. One commissioner said property tax revenue volatility and potential future changes in taxation could pose a risk because property tax revenue comprises a large share of county funding. Dieter cautioned that large investment gains can also reverse quickly and that plan status is sensitive to market returns and demographic changes.
The board formally voted to receive the audit by voice vote after the presentation.
