BOSSIER CITY, La. — Bossier City officials have eliminated a projected $1.8 million deficit from the city’s proposed 2027 budget, making nearly $3 million in reductions across operating, enterprise and capital accounts as the City Council moves toward final adoption of next year’s spending plan.
The Bossier City Council introduced the amended 2027 operating and capital budgets Tuesday following several weeks of work by council members and city administrators to close the gap without relying on the city’s general fund balance.
Councilman Chris Smith said the budget initially presented by Mayor Tommy Chandler’s administration about four weeks ago included an anticipated deficit of approximately $1.8 million.
“We slowly chipped away at that $1.8 million deficit because really at the end of the day we have to pass a balanced budget,” Smith said.
Smith said the city could have used its general fund balance to cover the shortfall but argued against using reserves to support recurring expenses. He said those reserves should remain available for unexpected economic disruptions or emergencies.
The reductions include approximately $100,000 from the engineering department, $200,000 associated with additional grass cutting, $200,000 in software and fuel expenses and about $400,000 in overtime.
Changes to risk management and property insurance produced another approximately $482,000 in savings, while the City Council reduced its own budget by about $69,000.
The city also originally anticipated a 10% increase in health insurance costs. Following discussions with the city’s insurance representatives, officials now expect the increase to be closer to 6%, producing an estimated $140,000 in additional savings.
“All in all, we carved almost $3 million out of the budget if you combined enterprise funds, capital accounts and general fund,” Smith said.
Community Development restructuring draws questions
One of the more significant changes involves the city’s Office of Community Development, where approximately $227,000 was removed from the proposed budget.
Councilwoman Debra Ross questioned the decision, particularly how residents would continue accessing programs administered through the office.
Smith said the city is not eliminating its community development programs. Bossier City expects to receive approximately $500,000 in federal grant funding for 2027, and the programs supported by those funds will continue.
During a transition period, responsibilities are expected to be assigned to existing city personnel while officials determine the longer-term structure of the office.
Smith said the city has already applied for the 2027 grant funding and specified how the money will be used.
“The department is not closing,” Smith said, characterizing the move instead as a restructuring intended to streamline operations.
He also said city officials believe Bossier City could pursue significantly more outside funding in the future.
“The end goal is to eventually make the Office of Community Development bigger and better than what it is today because the reality is we’re leaving a lot of money on the table,” Smith said.
Smith tied the restructuring to a broader effort to control the size and cost of city government, particularly during periods of financial uncertainty.
Sales tax revenue down
The city’s September financial report provided additional context for the budget discussion.
Finance Director Angela Williamson reported city revenue was 2% above budget through Sept. 30, while expenses were 12% below budget.
However, sales tax revenue was down 1.1% compared with September 2025.
The city also had 39 fewer full-time employees than budgeted and 13 fewer part-time employees than budgeted.
Smith specifically cited declining sales tax collections during the budget discussion as a reason the city needs to keep recurring expenses under control rather than rely on reserves to balance its budget.
Diversion program position restored
The council made one amendment before introducing the revised budget, restoring a full-time employee position in the city’s diversion program.
Officials said the position will have no net impact on the general fund because the diversion program generates its own revenue through the court system and currently has a fund balance of approximately $400,000.
The council approved the amendment and subsequently voted to introduce the 2027 operating and capital budgets as amended.
The budgets will return to the council as the city moves toward final adoption for the 2027 fiscal year.