City Council Closes Budget Gap Using Reserves, Bond Funds, and Financing

The Spearman City Council held a three-hour budget workshop Tuesday morning, July 23, to tackle the projected $569,721 deficit in the proposed FY 2025-26 city budget. After a detailed line-item review, council members approved a combination of revenue adjustments and spending cuts, reducing the shortfall by roughly half. 

Budget Cuts 
The council trimmed several proposed expenses from the budget, including: 
:: Police vehicle replacement - $75,000 
:: Fire department equipment - $53,500 
:: City dumpsters - $15,000 
:: Sealcoat engineering fees - $5,000 
:: Gas maintenance - $10,000 
:: Sewer maintenance - $15,000 

Revenue Increases 
The council also opted to increase projected revenues in several areas: 
:: $25,000 from Hansford County's commitment to fire support 
:: $37,500 increase in estimated sewer charges 
:: $40,000 increase in estimated water charges 

These figures reflect higher revenue projections compared to the original budget proposal. While helpful in narrowing the deficit, the strategy does carry risk. If actual collections fall short of estimates, the city could face a mid-year shortfall. The original budget draft used more conservative revenue projections. 

Additional Changes Approved July 29 
At the second budget workshop held Tuesday, July 29, council members approved additional balancing strategies to reportedly bring the budget into the black: 
:: $58,000 in remaining funds from the city's 2018 Certificate of Obligation (CO) will be used to support capital projects in the utility fund. 
:: The $235,200 airport project will be financed rather than paid from reserves. 
:: The $150,000 parks project will move forward using cash reserves. 

These actions eliminate the projected deficit without requiring additional cuts or increases to taxes or utility rates. However, while the budget will technically balance on paper, it will rely on reserves and debt financing rather than matching recurring revenues to expenditures. This approach resolves the immediate shortfall but leaves longer-term structural questions about sustainability and future-year planning. 

Revised Budget Coming Soon 
With these changes in place, the City Manager is expected to present a revised budget draft for formal consideration. Another budget workshop is scheduled for next Monday at 7:00 a.m. at City Hall. The City Manager indicated he would make the revised budget available to the public. 

The Hansford County Reporter-Statesman will continue to cover the city budget process as part of our Truth in Taxation series.