Sterling proposes using fund balance to cover $1.62 million 2027 budget gap

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 and schedules 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.

Sterling City Council is scheduled Nov. 10 to consider adopting the 2027 budget and a separate appropriation ordinance for the fiscal year beginning Jan. 1. The agenda lists both measures for discussion and possible action. The ordinance would authorize $53,987,761 in citywide spending and provide for a property-tax levy on taxable property within Sterling.

Minutes included in the packet prepared for the Nov. 10 council meeting record that, after the Oct. 27 public hearing ended and the regular meeting resumed, Council Member Haynes raised budget concerns. He sought clarification about staff positions and said he had a list of budget items for further discussion. Council discussed a possible additional work session or special meeting; staff was to meet with Haynes, and City Attorney Keleher was asked to research budget-adoption timelines and clarify Council’s authority regarding the budget.

The $53,987,761 appropriation matches the proposed budget’s total spending across funds. The General Fund’s $23,959,269 is one part of that total, alongside enterprise, special revenue and internal service funds. The proposed budget schedules list a 14.027-mill general operating levy expected to raise $1,591,020 on net assessed valuation of $113,425,557. At that rate, each $100,000 of taxable assessed value would generate about $1,403 in city property tax.

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.