Council members raise concerns about recurring expenses, sales tax projections as city begins budget review
BOSSIER CITY, La. — Bossier City officials have reduced an initial gap of approximately $8 million between departmental budget requests and projected revenues to $1.88 million as the City Council begins its review of the proposed 2027 operating and capital budgets.
During Tuesday’s budget workshop, city officials presented a proposed General Fund with $83,923,802 in revenues and transfers and $85,805,018 in expenditures and transfers. The difference would require the city to use $1,881,216 from its General Fund balance.
Mayor Tommy Chandler said the administration began the budget process much further apart.
“I think some of you probably heard one morning when I was walking around City Hall going, ‘We’re $8 million over budget,'” Chandler told the council.
Chandler said initial departmental requests and spending needs produced a gap of about $8 million. That had been reduced to approximately $2.3 million a week before the workshop and subsequently to $1.88 million.
“It’s my opinion, to go below that $1.88, we would be looking at cutting some sort of services,” Chandler said.
Finance officials agreed that substantially reducing the remaining gap would likely require cuts involving departments, services or employees.
Reserves remain well above requirement
The proposed budget would reduce the General Fund balance from $65,539,226 at the beginning of 2027 to $63,658,010 at year’s end.
Even after the planned draw, the city’s reserves would remain substantially above its required level. Officials said the city’s policy requires a General Fund reserve equal to 25% of expenditures, or approximately $21.45 million under the proposed budget.
That would leave the city with roughly $42 million above the required reserve.
Council members nevertheless raised concerns about using reserves to cover recurring operating expenses and whether projected revenue growth will keep pace with city expenses.
The proposed budget anticipates $38,342,400 in General Fund sales tax revenue, compared with a 2026 budget of $36,199,200, an increase of approximately 5.9%.
Councilman at Large Chris Smith noted that salaries and benefits account for roughly 70% of operating expenses while continued growth in Bossier City creates additional demands for employees and services. Smith also questioned the effect that lower-than-projected sales tax growth could have on the proposed deficit.
“If we’re off by just 1%, that grows to almost $5 million,” Smith said.
Smith said he had reviewed the budget looking for substantial reductions but found relatively little discretionary spending capable of eliminating the $1.88 million difference.
Insurance and benefits contribute to higher costs
Officials identified employee benefits and insurance as significant drivers of increased spending.
Group benefit costs are projected to increase approximately $1.06 million citywide.
The proposed budget currently assumes a 10% increase in health insurance costs. Chandler said officials were scheduled to meet with the city’s insurance representatives Wednesday and hoped the increase could ultimately be closer to 6%.
Risk Management is another area showing higher costs, although officials cautioned that changes in accounting and budgeting make a simple year-to-year comparison misleading.
Officials said insurance premiums within Risk Management are projected at approximately $6.18 million, about 31% higher than the amount budgeted for 2026. They said the 2026 premium budget was lower than actual costs and that the difference between 2026 actual premium costs and the proposed 2027 amount is only about $200,000.
The city also will begin explicitly budgeting workers’ compensation claims within individual departments. Officials estimated those claims at approximately $600,000 citywide.
The proposed budget includes a state-mandated 2% cost-of-living adjustment for civil service police and fire employees but does not include raises for non-civil service employees. Retirement costs are projected to decrease by approximately $825,000, or about 7%.
City plans $28.6 million in capital investment
The administration is proposing approximately $28.6 million in capital investment across the city’s various funds.
Officials said that includes approximately $10.1 million through sales tax capital funds and $11.7 million through riverboat gaming capital, along with investments through water, sewer, emergency medical services and other dedicated funds.
The capital spending would support projects and purchases involving streets, facilities, equipment, public safety and utility infrastructure.
Authorized city staffing would increase modestly from 732 positions to 735.
Among the additions are an employee in the Sales Tax Department who will help identify businesses that may not be properly licensed or remitting taxes and a comprehensive planner for the Bossier City-Parish Metropolitan Planning Commission.
Officials said they do not currently have an estimate of how much additional revenue could be recovered through the expanded sales tax enforcement effort.
The proposed budget remains a working document and is subject to additional City Council review and amendments before final adoption.