Revenue Issues Come Front And Center In Wake Of April 27 Tornado Devastation
The Sulphur City Council met in a special meeting Thursday evening to discuss and approve a somewhat bleak budget for the 2024-2025 fiscal year.
In the absence of Mayor Darrell Cole, Vice-Mayor Alan McKay presided over the budget hearing before convening into the special meeting.
City Manager Andy Freeman informed members that after many hours of work to cut more than $990.000.00 from the general fund, a balanced budget was presented for approval.
Freeman told the board several items that are normally included in the budget were omitted this year due to the unknown affects on future incoming revenue affected by the April 27 tornado.
The annual 2.5 per cent COLA raise for employees as well as the $750.00 annual employee stipend were both cut from the budget.
City staff also cited a significant increase in the employee health insurance which is fully funded by the city. The increase for the new year is more than $100 per person, per month.
Other departments receiving no budget funds include Economic Development and the SRT Team. The lodging tax funds were also not included in the budget.
Budget cuts were made from every department in the general fund.
City officials are totally in the dark as to what the impact on city funds will be after the tornado.
Approximately 68 business and 148 homes were heavily damaged or completely destroyed.
As a result, the city sales collections will be less, as well as the impact of revenue lost from water, sewer and garage fees paid by the businesses and homes.
Even though the projected yearly budget for the city totals more than $17 million dollars, many of the funds included are restricted funds and can only be used for which they are designated.
For example, the budget shows over $5 million dollars in the 1/6 street fund, however that can only be used for street paving, repairs and infrastructure.
In the mid 1980’s, Sulphur citizens voted in a permanent, one-cent sales tax to be divided evenly between streets and water/ sewer.
Of the 9½% sales tax for Sulphur, 4½ cents goes to the state, 2 cents is designated for the county, and 3 cents goes to the city. Of the 3 cents, only 2 cents can be used in the general fund because the other one cent is considered restricted for the streets and water/sewer improvements. The 1/6 street fund is 1/6 of the total 3 cents the city receives in sales tax.
Some of the other restricted funds listed in the budget include library cash, cemetery cash, police forfeiture funds, airport funds, and municipal court funds.
In other agenda action at the special meeting, the board approved the following:
•employee medical insurance renewal due July 1, 2024; •employee dental, vision and life insurance renewal due July 1, 2024;
•workers compensation renewal with the Oklahoma Municipal Assurance Group due July 1, 2024;
•property, liability and auto insurance with the Oklahoma Municipal Assurance Group due July 1, 2024;
•agreement between the Sulphur Professional Firefighter’s Association and the City of Sulphur for FY 2024-2025; and
•an ordinance adopting the 2020 Edition, ICC National Electrical Codes.
