Hutchinson County accepts annual financial report noting strong reserves and pension funding

Hutchinson County Commissioners Court unanimously accepted the county's annual financial report for the fiscal year ending Sept. 30, 2023, following a presentation by the county's external auditor, John Maris.

Maris told the court the county finished the year with about $16.1 million in cash and cash equivalents and a general fund balance of roughly $13.6 million, an increase of about $2.6 million year-over-year. "The general fund could operate for about 9.7 months without additional revenues based on last year's budget," Maris said, calling that "a fantastic place to be." He attributed much of the year-to-year movement to noncash pension accounting adjustments.

Maris reported a net pension asset and a TCDRS funding status of about 96.1 percent. "You're one of the few counties in the Panhandle still showing a net pension asset," he said, while warning that pension valuations are actuarial and may lag current conditions. He urged the court that, if commissioners wished to revisit plan design or funding strategy, TCDRS staff should be engaged in person for up-to-date valuations.

The auditor highlighted that property-tax revenue totaled about $14.3 million, up roughly $1.7 million year-over-year. He said that increase followed a valuation gain cited in the report and a reduction in the tax rate that together produced the observed revenue change. Maris also noted an item on the balance sheet showing approximately $1.8 million in temporarily restricted ARPA funds that remain to be spent, and he said standard disclosures and reconciling notes were included in the report.

On compliance, Maris told the court the firm found no reportable findings related to the county's administration of its ARPA grant and said the county's officials were documenting expenditures and controls appropriately. "You're doing a wonderful job of making sure the grants are being expended in accordance with grant terms," he said.

After a brief question period, a motion to accept the annual financial report (prepared by Doer Pickins and Francis) was made, seconded and approved with all commissioners voting in favor. The court did not direct further action beyond routine follow-up and recordkeeping.

The court will file the accepted audit and include the management representation letter as required; commissioners were reminded those documents are part of the public record and the county's long-range financial picture going into the next budget cycle.