Sterling proposes using fund balance to cover $1.62 million 2027 budget gap
The proposal projects $22.33 million in revenue, $23.96 million in spending and a $1.38 million year-end balance; the city says expanded services and paving need new revenue or cuts.
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Sterling’s proposed 2027 General Fund budget would spend $1,624,364 more than it takes in, with available fund balance supporting the difference. The plan projects $22,334,905 in revenue, $23,959,269 in expenditures and a $1,383,577 year-end balance, according to the city’s proposed budget in the Oct. 27 council packet.
The projected ending balance includes $729,563 the budget labels restricted or designated, including a $679,595 emergency reserve, and $654,014 listed as unrestricted. The city says fund balance is finite and recurring expenses need to be evaluated against ongoing revenue.
The proposal also folds the former Service Center Fund and the Armory into Fleet and Facilities within the General Fund. It identifies $1,428,923 as the Service Center’s projected ending balance, transferred as part of the change. The budget says available fund balance, including resources incorporated through the transition, would support the shortfall; it does not specify that the entire Service Center transfer would pay for it.
The city cites rising operating costs, infrastructure needs and revenue estimates as constraints on adding or expanding services without new ongoing revenue or spending reductions. It says additional contract road paving is not supportable without cuts elsewhere or dedicated funding. The proposal also excludes the next phase of increases from the Wage and Compensation Study.
The City Council is scheduled to hold a public hearing on the proposal Oct. 27.