Westfir budget shows roughly $39,000 shortfall; staff outline three options

Nicole Chitten, city recorder and budget officer, told the Westfir Budget Committee the proposed FY 2026–27 budget totals about $1.436 million and is not balanced. “This is the seventh budget that I have prepared for the city of Westfir, and, unfortunately, it's the first time I've never presented a balanced budget to the budget committee,” she said, adding the draft shows “a little bit under $39,000” in shortfall.

Chitten outlined three possible ways to close the gap. First, she suggested a municipal fee added to utility bills — a common option for small cities — but said the city’s current billing software would require an upgrade to implement that approach. Second, she said staff is pursuing an exchange of a portion of the highway fund (some of which originates from Secure Rural Schools receipts) with the county, an option that could free roughly $120,000 for public safety costs if the county agrees. Finally, she described a loan option, noting the city is already arranging a loan to repay an interfund advance and that small municipal loans can carry substantial legal costs.

Chitten stressed that staff are still waiting for confirmation from the county finance team about the fund-exchange option and that the committee will revisit the budget once those answers arrive. If the county exchange is not available, she said the council may have to consider a loan or other reductions before a final vote. The committee scheduled a follow-up meeting to review those outstanding items before the council must adopt a budget by June 30.