SOAP LAKE – The City of Soap Lake will have nearly $11.36 million worth of debt service payments to pay off by the end of 2025. Of that, around $3 million is interest the city has collected over the years, according to Finance Director Jeff Balentine. The city is paying 15 different loans.  

“I strongly suggest balancing your expenses to your revenues,” Balentine said. “I’ve never seen so many loans before in my life in any city, district or school district. We have way too many in.” 

2025 was one of the first years, in many, where the city did not take out a loan, according to Balentine. Instead, the city managed to pay around $157,000 from the General Fund toward city debt, nearly $94,000 from the Water Fund on related loans and nearly $168,000 from the Sewer Fund, similarly. In total, the city last year made around $345,000 in payments to various loans.  

Balentine said for a handful of years, the city was taking out loans to make payments on other loans. Balentine is working with information from at least as far back as 2017. He also mentioned equipment and vehicles being purchased and then put in surplus, with the loan associated with the purchase still needing to be paid off. He said the city is still making payments on vehicles that are no longer in its possession. 

“It's like a person buying a $20,000 car with a loan, then taking that and selling it for like $5,000. You would be down $15,000 and a car and you are messing up your credit score in the process,” he said. “It just doesn’t make much sense.” 

Looking at Balentine’s preliminary budget proposed for 2026, the city is planning to pay nearly $523,000 on its debts. Of the proposed payments, around $200,000 will be interest. 

“We are just throwing money away – that’s all interest is,” Balentine said.  

Balentine said one of the top priorities for the city should be passing a balanced budget and making payments to bring down the Soap Lake's debt. 

“To be a financially healthy city, we need to work on getting rid of the debt that has been collected over the years,” he said. “A good chunk of it is just the interest from years of unwise financial decisions. I hope to see that change.” 

He also told the council members he would like to see them set up a policy for a minimum fund balance. He said several loans were taken out because of not having enough money in the general fund and needing to make payments.  

“The city needs emergency funds,” he said. “I hope you think about working towards it. It is crucial for the city's future.”