Helene Costs Leave Rutherford County Waiting on Millions

Rutherford County’s latest audit shows the financial aftershocks of Hurricane Helene are still hitting hard, with taxpayers fronting tens of millions of dollars while the county waits for federal reimbursement.

The Annual Comprehensive Financial Report (ACFR), released publicly at the March 2 Board of Commissioners meeting, shows the county closed fiscal year 2025 with a $16.8 million drop in overall net position. Independent auditors issued an unmodified opinion, meaning the financial statements were presented fairly under generally accepted accounting principles.

$38.7 million in debris costs

The biggest driver: storm cleanup.

The county recorded $38.7 million in FEMA-eligible debris removal costs after Helene struck on Sept. 27, 2024. More than one million cubic yards of debris were cleared from roads and waterways.

Total governmental expenses jumped 45.42% compared to the previous year, reaching $97.4 million.

Under disaster rules administered by the Federal Emergency Management Agency, local governments typically pay upfront and seek reimbursement later. That structure has left Rutherford County covering the costs in the short term.

After the storm, then–County Manager Steve Garrison and the Board of Commissioners opted to use state-hired contractors instead of requesting direct operational support through mission assignments from the U.S. Army Corps of Engineers. Officials have previously said using USACE would have meant less local control over debris operations.

The decision required the county to pay contractors directly and wait for reimbursement — a choice that reshaped the county’s cash flow during the fiscal year.

Reserves cushion the blow

Despite the spike in spending, core revenues remained stable:

• Property tax revenue rose 1.7% to $57.4 million.

• Sales tax collections held steady.

• EMS revenues increased, aided by Medicaid expansion.

• Building permit revenue climbed amid ongoing construction.

The property tax collection rate was 98.18%.

The General Fund ended the year with $68.6 million in total fund balance, including $38.5 million available for appropriation — equal to 48% of general fund expenditures, slightly above the state average for similarly sized counties.

County leaders have long targeted at least 20% in reserves to manage emergencies and cash-flow gaps. The audit notes that a healthy fund balance helps governments weather events like Helene while continuing essential services.

Capital projects move forward

Even with storm-related costs, the county pushed ahead on major projects, including:

• Completion of a new animal control facility

• Significant progress on a school transportation facility

• Continued work at the Government Services Center

Capital assets grew to $111.6 million. Long-term debt decreased by about $2.8 million as repayments outpaced new borrowing.

Economic snapshot

The audit estimates the county’s population at 65,587. Unemployment stood at 4.4% in December 2025 — the highest in western North Carolina and 10th highest statewide.

Manufacturing remains a major employer, and tourism generates more than $282 million annually, supporting nearly 1,400 jobs.

Audit status

The audit was conducted under Government Auditing Standards with no material weaknesses reported.

As of March 4, the report had not yet appeared on the North Carolina Local Government Commission website, but was attached to the commissioners’ meeting agenda after the meeting and was not included in the advance public packet.

Bottom line: Rutherford County remains fiscally stable on paper — but millions tied to Hurricane Helene are still in limbo as the county waits to be paid back.