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Custer County posts preliminary 2026 budget; finance staff warn grant and sales‑tax revenue declines affect outlook
Summary
County finance staff presented the preliminary 2026 budget and posted it for public inspection. Staff said property taxes fund a small portion of county operations and pointed to declining trends in sales and specific‑ownership taxes; commissioners were reminded the budget must be adopted by Dec. 15.
Custer County finance staff on Oct. 16 presented the preliminary 2026 budget to the Board of Commissioners and confirmed the document has been posted for public inspection in compliance with state statute. Staff said the county remains dependent on sales taxes, specific‑ownership taxes and fee revenue, and noted a downward trend in those non‑property revenue streams over the last three years.
Key figures and context
- General fund: audited 2024 year‑end balance shown as $5,107,051; preliminary 2026 projections show a year‑end general fund balance near $4.15 million based on current revenue and expenses (figures are projections and include restricted reserves).
- Property tax reliance: staff noted that property taxes contribute roughly $1.3–$1.4 million to the general fund on a multi‑million dollar budget, and that increasing property tax receipts alone will not cover all expenses.
- Revenue trend: finance staff said sales tax and specific‑ownership tax receipts have declined roughly in the 10–13 percent range over the last three years (staff gave an approximate range; exact percentages are in the posted budget worksheets).
- Funds of concern: staff identified the self‑insurance fund (fund 40) and the airport fund (fund 65) as areas that still require close scrutiny and possible general‑fund transfers; the draft budget includes transfers (for example, $67,000 to the airport fund and $200,000 to the insurance fund in the draft figures discussed).
Legal and calendar items
Staff read the applicable budget‑notice language from the state revised statutes regarding publication and the right of electors or local governments to file objections. The preliminary budget has been posted and will be the subject of a public hearing prior to adoption; state law requires final adoption by Dec. 15.
Why it matters: commissioners must balance multi‑year capital needs (such as landfill expansion and equipment), service levels and staffing against revenue trends. Staff emphasized the importance of monitoring insurance costs and airport subsidies and noted the role of grant revenue (some of which is reimbursement‑based) in the county’s revenue mix.
Next steps: the preliminary budget is available on the county website and at the county office for inspection. The board will schedule and hold the required budget hearing and then consider adoption before the Dec. 15 statutory deadline.
Evidence excerpt: the finance presentation and statutory reading were part of the meeting record from 01:19:30 to 01:28:30 (presentation and Q&A).
