City Plans Early Start on 2027 Budget Process with Revenue Analysis

The City of Salina is beginning its budget process for fiscal year 2027, with the Finance & Administration conducting extensive analysis of revenue trends and personnel costs, Director of Finance and Administration Debbie Pack announced.

Pack explained that the budget process begins early in the year, immediately after the city receives actual numbers from the previous year.

"Well, we start evaluating numbers. We look at them all year long. Obviously, we're looking at how we're doing compared to our budget, how we're doing overall. We do that on a regular basis but really once we have our numbers for 2025 our actual numbers we start doing a lot of analysis on revenues and things like that. What are the trends? Where are those numbers going?" Pack said during the city's City Scope podcast.

The Finance & Administration analyzes fixed sources of revenue and conducts trend analysis to determine projected income levels. The budget process involves first determining expected revenue, then balancing expenditures to match that amount.

"The process of the budget is determine how much revenue you think you're going to have and then budget your expenses expenditures to that number to balance your budget," Pack explained.

The process is complicated by the unpredictable nature of key revenue sources. Sales tax, which comprises about 30% of General Fund revenue, is particularly difficult to forecast because it depends heavily on economic conditions and consumer spending patterns.

"Since our revenues like 30% of our General Fund revenue comes from sales tax which is very hard to determine what's going to happen. That's people spending depends so much on the economy and you know just what people are doing in general," Pack noted.

Property tax represents approximately another third of General Fund revenue and supports essential city services including Salina Police Department, Fire Department, public works, streets, and parks. Together, sales tax and property tax make up over 60% of the city's General Fund revenue.

The department begins by asking department heads to evaluate capital spending and equipment replacement needs early in January, then later provides operating expense guidance based on revenue projections and personnel cost estimates.