County manager previews FY26 budget, cites $7.5M added to fund balance and sales-tax pressures

County Manager Bridal Moorhead presented an unaudited overview of Haywood County’s finances and a timeline for the FY26 budget process, telling commissioners that the county closed last year with about $7.5 million added to fund balance and that undesignated fund balance is hovering near $45 million. Moorhead cautioned that the audit has been delayed by storm-related impacts and repeated that remaining figures are unaudited.

Moorhead highlighted drivers for FY26: principal-and-interest increases of roughly $623,000 tied to the jail expansion, personnel-cost pressures (each 1% pay increase roughly equals $500,000 in recurring cost), and continuing uncertainty over state contributions to retirement and health-care costs. He said sales-tax receipts were down about 1.3% for July–November 2024 versus the prior year but that strong investment earnings (about $5 million recognized in 2024) have helped offset the shortfall. He outlined a schedule for staff and public review that includes presenting the manager’s budget in mid-March, a public hearing in early June, and hoped adoption in mid-June.

Commissioners asked for additional detail on vehicle replacements, capital needs, and whether position requests could be trimmed. Moorhead said the budget is lean and that departments' position requests so far had been “very, very modest.”

Why it matters: The presentation frames FY26 conversations, highlights the county’s reserve position and near-term debt pressures, and sets the public-review timeline that will govern later taxpayer and program decisions.