Walker County officials say the county remains in a strong financial position despite facing difficult decisions involving spending, revenue and service levels in the upcoming fiscal year.
In a release, Walker County Government sought to clarify the difference between the county’s annual operating budget and its fund balance. Officials said the budget reflects the county’s current revenue and expenses, while the fund balance provides a broader picture of its long-term financial health.
According to the county’s most recent audit, Walker County has an unassigned fund balance of $24,114,548, representing more than seven months of reserves. Those funds may be used for emergencies, one-time capital projects or revenue shortfalls during an economic downturn.
County officials said several one-time and previously unresolved expenses contributed to increased spending during the fiscal year that ended Sept. 30, 2025.
Those expenses included nearly $10 million in debt connected to 2024 road projects, unbudgeted repairs to light poles, culverts and guardrails, and a past-due $5 million commitment made by the Board of Commissioners in 2021 toward the Walker County Water and Sewerage Authority’s water improvement plan.
The county also spent a net $5 million to unfreeze its employee pension plan following what officials described as a decade of underfunding. An additional $1.2 million was used to buy out accumulated paid-time-off balances and implement a policy limiting the number of PTO hours employees may carry.
Officials said an accounting change also affected the county’s net financial position by $14.6 million. Under the change, repaving existing roads is no longer treated as the purchase of a new asset depreciated over 30 years. Instead, the full accounting impact was reflected at once during fiscal year 2025.
Despite those expenses, the county said its unassigned fund balance declined by $802,813 between the end of fiscal years 2024 and 2025. Officials credited operational efficiencies and reductions in unnecessary spending with helping preserve the reserves.
Meanwhile, the Board of Commissioners continues working on the fiscal year 2027 budget, which will take effect Oct. 1, 2026. The county currently faces an estimated $1.9 million budget gap that officials hope to close without using money from the fund balance.
The board must consider inflation, state mandates and higher fixed expenses, including a new ambulance service contract. Other decisions include how many new firefighters to hire, whether to approve additional positions requested by department heads, the size of any cost-of-living adjustments for employees and how much the county should subsidize services not fully supported by user fees.
Officials said possible revenue options include adjusting the county’s Public Safety Fee or millage rate, negotiating cost-sharing agreements with municipalities for 911 and animal shelter services, and increasing certain service fees. The county emphasized that it has not advertised a change to the millage rate.
County officials said Walker County remains financially healthy, with more than $24 million in unassigned reserves, but acknowledged that rising costs and the projected budget gap will require difficult decisions regarding spending, revenue and service levels.