Seward County commissioners map millions in cuts, debate reserve levies and equipment transfers

Seward County commissioners on Feb. 2 reviewed detailed budget figures and sketched a plan to find roughly $4.8 million in cuts to make the 2026 budget revenue‑neutral, while debating how much of the county's carryover to preserve for future years.

The work session, opened by the chair, began with staff presenting ending cash balances and the official mill levy (41.211). Dustin, the county finance staff member, told the commission: "You just need to tell me what number you want me to use for the budget," asking whether to use the actual year‑end carryover or a more conservative estimate. Commissioners and staff repeatedly returned to a central tradeoff: use a larger carryover now to reduce 2026 tax requirements, or hold it to buffer 2027.

Why it mattered: staff reported a larger than expected unencumbered cash carryover (about $5.7 million on staff worksheets) that could reduce next year's tax need if used. Commissioners rejected relying solely on worst‑case expense projections for employee benefits and instead discussed budgeting closer to recent experience while setting aside an explicit claims reserve.

On employee benefits, staff said claims came in lower than the worst‑case projections, and the county's voluntary IMA pharmacy plan contributed savings. A county commissioner summarized the impact: "It saved us over $300,000 just for not a 100% participation in '25 with this IMA drug plan," and commissioners debated reducing the 2026 employee‑benefits projection from a worst‑case figure to something nearer $4.6 million while preserving a reserve for claims.

The session produced several concrete choices: commissioners agreed to remove a planned $600,000 transfer from the Road & Bridge budget (which will materially raise that fund's tax requirement and trigger further review), and they discussed lowering the county equipment fund transfer from the previously budgeted $250,000 to a smaller amount (figures of $100,000–$150,000 were discussed). On nonprofit appropriations and discretionary grants labeled on staff sheets, commissioners proposed a 10% "haircut" to several line items (historical society, Russell Child Development, fair and advocacy funding) to help reach the target reductions.

A politically sensitive point involved reserves set aside for a potential payback related to a prior item often identified in staff notes as the Conestoga matter. Commissioners debated reducing the Conestoga earmark and other reserves but several asked for a formal legal opinion before finalizing any levy specifically intended to prepay an uncertain liability. One commissioner said a legal review was "required" before locking in additional levy authority for a yet‑unspecified amount.

Other adjustments discussed: raising selected revenues to reflect recent actuals (for example, jail boarding reimbursements and some sheriff office fees), trimming the county technology budget where historical spending has been lower than budgeted, and asking several department heads to recheck line items such as joint communications/911 maintenance costs, which had a substantial year‑over‑year increase driven by tower and software maintenance.

The next steps are procedural: staff were directed to update the workbook with the commission's agreed cuts and assumptions (employee‑benefit projection adjustments, equipment transfer reduction, the $600,000 Road & Bridge transfer removal and the 10% nonprofit reductions). Commissioners also asked county counsel for a written legal opinion on whether the county can lawfully levy in advance for the uncertain Conestoga payback rather than wait for a known judgment. The work session recessed briefly and then adjourned later in the meeting.

Commissioners closed the session after a motion to adjourn and a brief hand vote. Staff will return revised numbers for final action at the subsequent evening meeting.