Determine whether the Board of Commissioners (Board) effectively managed the Henrietta Fire District’s (District’s) financial condition.
The Board did not effectively manage the District’s financial condition and presented budgets indicating the District needed to both increase real property taxes and use appropriated fund balance to close projected budget gaps. As a result, more real property taxes were levied than needed.
- The Board did not adopt realistic budgets from 2017 through 2021. As a result, fund balance increased to $4.4 million on December 31, 2020, which is excessive and enough to pay 41.5 percent of the District’s 2020 expenditures.
- The Board unnecessarily overrode the 2019 and 2020 tax cap. The 2021 tax cap override will likely be unnecessary because the 2021 budget overestimated appropriations by approximately $1.4 million, and the $1 million appropriated fund balance will likely not be used.
- The Board did not adopt budgeting, fund balance or reserve policies or multiyear financial and capital plans.
- Adopt realistic budgets.
- Establish budgeting, fund balance and reserve policies and develop multiyear financial and capital plans.
Officials generally disagreed with our recommendations, but indicated they planned to take some corrective action. Appendix B includes our comments on issues raised in the District’s response.