Silver City officials present a conservative FY2027 budget as costs rise for insurance and debt service

Silver City officials presented the proposed Fiscal Year 2027 budget and told the council the plan is intentionally conservative while the town addresses legacy debts and rising external costs.

Randy Hernandez, who led the presentation, said the town’s health-insurance costs rose “just a little over 15%,” moving the town portion from about $1,800,000 to about $2,200,000. He also noted general-liability premiums increased “about 7%” and that total annual debt payments across loan sources are “approximately $1,800,000.” Hernandez said the administration consolidated departmental line items to simplify oversight and control spending.

Hernandez summarized the general operating fund figures: a beginning cash balance of $1,111,036, investments of $67,451, projected revenues of $18,336,220 and projected expenditures of $14,945,558. He emphasized the required 1/12 reserve of $1,245,463.17, which reduces the adjusted general fund balance.

Mayor and councilors praised the increased transparency in reporting but stressed that inherited obligations limit what the town can do immediately. Hernandez said the administration is aware of employee pay concerns and intends to restore flexibility over time: “It’s going to take time to get to that point… the town didn’t end up in a financial crisis overnight and we can’t course correct overnight either.”

The administration said the full budget package will be submitted to DFA and, once approved, posted on the town’s website. Councilors and staff planned to meet again on Tuesday to present minor adjustments and consider formal approval.

The meeting closed with the council setting a hard stop at 2:30 p.m.; no formal vote on adopting the budget occurred at this special meeting.