County Moves Forward with Tentative Budget, Plans to Use Reserves to Close Gap

Churchill County commissioners on Monday advanced a tentative fiscal year 2026-27 budget, relying on a mix of targeted reductions, delayed hiring, and reserve funds to close a projected deficit that remains just over $1 million.

The discussion took place during a budget hearing, where staff outlined the county’s current position following weeks of department-level reviews and cuts. Comptroller Sherry Wideman, presenting to the board, said those efforts resulted in approximately $481,609 in reductions. Even with those cuts, however, the county is still facing a shortfall in its general fund.

As presented, the budget shows about $52 million in revenue against roughly $67 million in expenditures, with a significant portion tied to capital projects. After accounting for those factors, commissioners were left working to close an estimated $1.7 million gap in the general fund, along with a smaller deficit in Parks and Recreation.

Some potential revenue sources could reduce that gap. Commissioners discussed approximately $300,000 that may come from CCCOM, as well as another estimated $300,000 tied to geothermal tax revenue. Neither has been formally incorporated into the budget yet, so the county must continue to plan conservatively until those funds are confirmed.

If both sources materialize, the deficit will drop closer to $1.1 million. Even then, commissioners acknowledged additional adjustments would be needed.

“We’ve dialed in everything that’s existing,” commission chair Myles Getto said during the meeting. “There’s not a lot of meat to cut.”

Rather than eliminating services or positions outright, the board focused on short-term strategies to reduce costs while preserving flexibility. Chief among those was a decision to delay the hiring of new employees.

Commissioners directed staff to push back the start dates for new positions by approximately one quarter, to around October 1. That move is expected to save roughly $125,000 in the upcoming fiscal year while still allowing departments to proceed with hiring later if conditions improve.

The board also worked through a list of supplemental requests, trimming or postponing nonessential items where possible. In one example, the district attorney’s office agreed to delay the purchase of new furniture for another year.

At the same time, commissioners were careful not to cut items that could generate revenue or be reimbursed through grants, noting that those reductions would have little real impact on the county’s bottom line.

The board also agreed to suspend the county’s Transfer of Development Rights (TDR) program for one year. While that move does not directly affect the general fund, it reduces spending pressure in other areas of the budget.

Even with those adjustments, commissioners were clear that reserves will need to be used to balance the budget.

Under state requirements, the county must adopt a balanced budget upfront, meaning funds from reserves will be allocated at the beginning of the fiscal year if needed. However, staff noted that those transfers may not ultimately be required if revenues come in stronger than expected or if spending comes in below projections.

Commissioners pointed to what they described as “organic savings” as one potential offset. Historically, vacancies and turnover have resulted in payroll savings throughout the year, and officials expect that trend to continue.

At the same time, the county is in the middle of a compensation study aimed at improving pay and reducing employee turnover. Commissioners said the study could help stabilize staffing levels over time, though its immediate budget impact remains uncertain.

“We’re basically short what the compensation study is looking at,” Matt Hyde noted, adding that the long-term goal is to reduce turnover and create more predictability in the budget.

In the end, the board expressed confidence that the county will finish the year in a better position than current projections suggest, even as they acknowledged the challenges of the current budget cycle.

Following discussion, commissioners unanimously approved a motion directing staff to finalize the budget using the proposed adjustments and submit it as required.

The budget will continue to be refined in the coming months as more information becomes available, including updated revenue figures and the final results of the compensation study.