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Coppell officials outline strategies to close $483,000 projected budget gap in FY27
Summary
City staff presented a FY2026–2030 five‑year forecast that narrowed a multi‑million dollar shortfall to roughly $483,000 for FY2027 through alternative funding, reserves and program prioritization, and said a revenue consultant will evaluate fee changes and cost‑recovery options.
Coppell officials presented a detailed five‑year budget forecast on May 12 that shows the city narrowed an initial multi‑million dollar shortfall for fiscal year 2027 to roughly $483,000 through a mix of reprioritization, alternative funding sources and one‑time adjustments. The presentation did not require council action but set the stage for decisions during the annual budget process.
Assistant director Justin Bond and assistant director Sherry Bond laid out the multi‑phase process behind the forecast. The assistant‑director retreat reviewed 41 budget requests covering about $3.1 million in proposed expenditures, narrowed those requests to 28 and identified roughly $1.7 million in savings or alternative funding. "That work took our initial gap down by about a million dollars," Justin Bond said, describing how department requests were prioritized and how team discussions produced trade‑offs.
Sherry Bond said the AD team reassigned eligible items to alternative revenue sources — including strategic reserves, special revenue funds, bonds and a Vision 2040 allocation — and used current‑year funds and schedule adjustments to reduce the remaining general‑fund request. "By leveraging these alternatives, we achieved a reduction of over a million dollars," she said, summarizing phase‑two shifts that trimmed the gap to $2.7 million before further adjustments.
Council members asked for detail on the assumptions underlying the forecast. Staff said the FY27 anticipated expenditures incorporate annual salary‑and‑benefit increases and recurring maintenance costs; the presentation included a sales‑tax assumption of about 55 percent realization with a 5 percent annual growth assumption. On timing and future‑year uncertainty, staff noted that several large requests in FY28–30 reflect initial submissions made before the assistant‑director review and that some strategies now in use may not be available in later years.
To address remaining pressure, staff outlined several strategies for consideration during budget development: targeted reductions in infrastructure and equipment investments; use of prior‑year interest earnings; strategic use of self‑funded insurance reserves; and creation of two capital‑replacement funds (one for public‑safety equipment and one for small equipment). "These proactive approaches have effectively mitigated our budgetary pressure," Sherry Bond said, adding that the assistant‑director work reduced the forecasted shortfall to the current figure.
Council members pressed staff on revenue expansion options. Justin Bond confirmed the city has engaged a revenue consultant to evaluate fees and cost recovery and to propose fee adjustments where legally appropriate. "We’ve already hired a consultant and the work has begun to evaluate cost recovery and the potential of new fees," he said. Staff noted legal limits on fee structures and said the consultant will present options suitable for Coppell as part of the budget process.
Next steps: the forecast will inform the budget drafting process this summer; staff expects an initial consultant report and related fee recommendations in time to influence FY27 budget deliberations. No vote was required at the May 12 presentation.
