Garden City manager previews 2026–27 budget, urges larger fund balance

City Manager Gibbons presented a preview of the 2026–27 budget on Feb. 9, saying the city has narrowed last year’s deficit and recommending the council prioritize rebuilding the general fund balance. “We’ve turned a nice corner,” he said, describing step‑wise reductions from an initial temporary deficit of about $3,000,000 to under $1,000,000 by year‑end.

Gibbons asked the council to set a stronger fund‑balance floor, noting the budget’s worst‑case use of fund balance is roughly $3,375,000. He said the city ended the prior year with a fund balance near 31 percent and currently anticipates a 2026–27 fund balance of about 27.2 percent, though that projection includes money owed by the water fund. “It’s essential that we maintain a strong fund balance,” Gibbons said, arguing a 25 percent minimum is needed and that 30 percent is preferable for stability.

On capital and revenues, Gibbons told the council he expects increased state road funding tied to Act 51 and said the city recently secured approximately $1,000,000 in federal funding for the Ford Road water‑main project; he framed that award as bolstering the city’s water‑fund recovery. Gibbons also cautioned against accepting grants that later impose unsustainable operating costs: “Sometimes grant money sounds fantastic, but creates a long‑term burdensome financial operating cost,” he said.

He reviewed capital‑improvement priorities (roads, water mains, vehicle replacement and routine infrastructure maintenance) and noted debt levels have fallen after earlier bond drop‑offs tied to prior capital projects. On personnel costs, he said the budget assumes a 3 percent contract raise across unions and will account for that in planning.

Gibbons closed by inviting council direction and constituent feedback as staff prepares the detailed budget and five‑year capital plan for later council review.