Washington County finance staff says FY22–23 closed with $26M surplus; reserves to rise if carryovers approved

Miss Sturgill, the county finance presenter, told the Washington County Board of Supervisors on Sept. 12 that the county closed fiscal year 2022–23 with “about 26,000,000” in revenues over expenses and was proposing committed and discretionary carryovers that would increase the general fund reserve balance.

Sturgill said the proposed committed carryover, approximately $20,300,000, largely represents encumbrances, purchase orders, restricted grants and multi‑year projects. ‘‘After the proposed committed carryover is deducted, we have total return of funds of over $5,700,000,’’ she said. Sturgill added that using about $900,000 of general fund reserve for the FY23–24 budget reduces that return, leaving an estimated $4,800,000 before discretionary carryovers.

Sturgill told supervisors the county had received discretionary carryover requests totaling about $2,000,000. ‘‘After the proposed discretionary carryover is deducted, we have an increase to the general fund reserve balance of about $2,800,000,’’ she said, which would bring the reserve balance to roughly $26,400,000 and put the reserve percentage in the 15–16% range of the operating budget. The board’s reserve policy target is 12–15 percent.

Board members asked how supplemental appropriations and recent school grants would affect the percentage. Sturgill said the state had approved about $1,200,000 to help offset a 2% school raise and roughly $2,800,000 for COVID learning‑loss funds; the school carryover reflects a $4,100,000 supplemental appropriation that will change the reserve calculation.

One supervisor noted auditors have recommended a higher reserve target, ‘‘more toward 20,’’ and asked staff to factor that guidance into long‑term planning. Chair said that maintaining strong reserves supports the county’s credit rating and reduces future borrowing costs for large capital projects such as courthouse work.

Sturgill closed by reminding the board that the numbers are a moving target: supplemental appropriations, carryovers and future amendments will alter the reserve percentage. She said the formal committed and discretionary carryover resolutions plus a budget amendment will be presented at the next public hearing.

The presentation was informational; no final board action was taken on the carryover at the Sept. 12 meeting.