Why is part of Williamson County's net position below zero? (DRAFT – not published)

In short

• Overall, the county owns more than it owes. Its total net position was about $1.40 billion on Sept. 30, 2025.¹
• One part, “unrestricted,” is about −$1.03 billion.¹
• The audit gives a reason. The county sold bonds to build things, then gave them to other governments.²

Related: county cash and investments

Numbers marked “our math” are our estimates, not official figures. The notes show the inputs and the steps.

How it works

• Net position is what the county owns minus what it owes. The audit splits it into three parts.¹³
  • Net investment in capital assets: what the county’s roads, buildings and land are worth on its books, minus the debt still owed on them.
  • Restricted: amounts that can be used only for set purposes, such as debt payments or building projects.
  • Unrestricted: whatever is left over. It can fall below zero.

What the numbers show

Sept. 30	2024	2025
Net investment in capital assets	$1,331,729,835	$1,565,842,320
Restricted	$871,723,729	$864,716,668
Unrestricted	−$860,132,582	−$1,031,561,292
Total net position	$1,343,320,982	$1,398,997,696

Source: the county’s fiscal 2025 annual report.¹

• The audit says why it is below zero. The county sold bonds to build infrastructure, then handed that infrastructure to other governments. It still owes about $506 million on those bonds. But it no longer owns what they built, so there is no asset on its books to match that debt.²
• Those bonds will be paid with property taxes set aside for debt.²
• The unrestricted gap grew by about $171 million in a year (our math). The audit does not explain the change.¹⁴

The other side

• The audit says how these bonds get paid. Property taxes set aside for debt will pay them in the future. And the county’s total net position is above zero.²¹
• The audit’s numbers do not fully match. Its note gives a gap of about $890 million, while its main statement shows about $1.03 billion. The audit does not explain the difference.²¹
• The audit does not name other causes. It does not say whether pension or retiree health costs add to the gap. See county retirement plan and county retiree health care.
• The audit does not say which governments got the infrastructure.

Questions to ask

• Which governments received the roads and other assets, by the county’s records?
• How does the county explain the gap between the note’s figure and the main statement?

What we still don’t know

• What makes up the rest of the gap beyond the bonds the audit names.
• Why the audit’s note and its main statement differ. The county’s June 2026 bond offering document repeats both figures, word for word, and does not explain the difference either.⁵ The answer would come from the county auditor or the outside audit firm, or from next year’s audit.

Changes to this page

• Nov. 4, 2026: Noted that the county’s 2026 offering document repeats both figures without explaining the difference.
• Nov. 2, 2026: Rewrote the questions to ask so each is open, neutral and addressed to the public body.
• Nov. 2, 2026: Added the audit’s own note on how the bonds get paid.
• Nov. 2, 2026: New page.

Footnotes

1. Williamson County, Texas, Annual Comprehensive Financial Report for fiscal 2025, management’s discussion, condensed statement of net position (governmental activities), p.11: net investment in capital assets $1,565,842,320 (2024: $1,331,729,835); restricted $864,716,668 ($871,723,729); unrestricted $(1,031,561,292) ($(860,132,582)); total net position $1,398,997,696 ($1,343,320,982). Same figures in the Statement of Net Position, p.22. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷

2. Same report, Note 5, “Deficit Unrestricted Net Position,” p.47: “A deficit unrestricted net position of approximately $890,331,634 exists in governmental activities as of September 30, 2025. This deficit is primarily the result of the County issuing bonds to finance the construction of infrastructure contributed to other governmental entities”; bonds outstanding for assets “transferred to another governmental entity” about $506,000,000, “paid with future property tax revenues restricted for debt service.” ↩ ↩² ↩³ ↩⁴ ↩⁵

3. Same report, Note 1, p.41: “Unrestricted – the difference between the assets and liabilities that is not reported in any of the classifications above.” ↩

4. Our math. Change in unrestricted: 1,031,561,292 − 860,132,582 = 171,428,710. ↩

5. Williamson County, Official Statement, Limited Tax Notes, Series 2026, dated June 24, 2026, appendix with the fiscal 2025 audited financial statements: condensed statement of net position, unrestricted $(1,031,561,292); and Note 5, “Deficit Unrestricted Net Position,” approximately $890,331,634. (EMMA copy; saved copy.) ↩