Seadrift council looks for savings in 2027 budget

Seadrift council looks for savings in 2027 budget

Published 11:51 am Thursday, August 27, 2026

The Seadrift City Council spent about three hours Tuesday reviewing its proposed fiscal year 2027 budget line by line, recommending changes and looking for additional savings before the spending plan is finalized.

One of the biggest areas of discussion during the work session was the possibility of creating a fixed asset revenue fund, or FARF, in addition to the city’s existing contingency fund.

Alderwoman Karen Neal proposed establishing the fund during a discussion between Alderman Danny Evans and Mayor Bill Cathey about the amount set aside for contingencies.

“I’m probably the most frugal person in this room right now,” Cathey said. “If we can get it tighter, then we can get it tighter.”

Neal said creating a separate fund for major equipment and other fixed assets would require council members to reduce spending elsewhere in the budget and identify additional savings.

The initial proposed budget includes $216,008.52 in the contingency fund.

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“You’ve got your contingency fund, but then we need to start long term saving for fixed assets when they go bad,” Neal said. “Don’t think rainy day fund (the FARF) is specifically for big items, fixed assets. Rainy day is the contingency fund that we use every year.”

Council members spent much of the remainder of the meeting examining potential spending cuts and anticipated revenue.

The initial proposal projects $2.69 million in revenue and about $2.48 million in expenses, leaving approximately $216,000 before any changes recommended during the workshop. The proposal is based on a tax rate of $0.6881 per $100 of taxable value.

Among the largest expenses in the original proposal are $337,069.41 for public works, $303,674.75 for employee benefits, $263,208 for long-term liabilities and $221,610 for public safety.

The city’s long-term liabilities include expenses associated with a Case backhoe, a 2023 trash truck and 2021 wastewater treatment plant improvements.

For the general fund, the city projects $655,682.65 in revenue from maintenance and operations property taxes. The proposed maintenance and operations rate is $0.5078 per $100 of taxable value.

The city also projects $300,000 in sales tax revenue and $113,109.80 in grant revenue.

Outside those sources, Seadrift anticipates receiving $857,635 in utility revenue, $312,754 from solid waste services and $183,070 from the municipal harbor.

The budget remains a work in progress as council members continue reviewing expenses and looking for opportunities to set aside money for future capital needs.

The council is scheduled to continue its budget discussions during another workshop Thursday beginning at 6:30 p.m.

Lindsey Plotkin is a multimedia reporter for the Victoria Advocate. Contact her at lindsey.plotkin@vicad.com.