Meeting Summary
The city council held a budget briefing for the 2023-2024 fiscal year, presented by city staff. Key discussions included the general fund balance, departmental budgets, and the impact of sales tax revenue on various city services. Several financial challenges and potential solutions, such as rate adjustments and sales tax initiatives, were highlighted across different departments.
Financial Matters
General Government Sales Tax (R09 Account)
Established in 2011-12 and increased in 2017-18, this account helps stabilize the general fund by moving capital outlay and city manager's office expenses. Projected revenue is $5.5 million with expenditures of $5.63 million, with $3 million from capital outlay.
General Fund Overview
Sales tax revenue is 12.62% over projection. The revenue projection for the year is $46,740,000 with expenditures of $47,965,000. After a $2.5 million transfer for a remodel reserve, the budget is nearly balanced with a projected deficit of $186,757.
Market Wage Study
Included in the Human Resources budget, with additional matching funds expected from Public Works.
Comprehensive Plan Update
Included in the Community Development budget for a comprehensive plan update.
Library Chiller Replacement
A one-time capital outlay for the library, with the city splitting the total $300,000 cost.
Senior Center Bathroom Remodel
Third-year funding for the expensive bathroom remodels, aiming for a total of $150,000.
Community Survey
Included in the Communications budget to conduct a quality of life survey, the first since 2014.
Street Lighting
Revenue is approximately $600,000 annually, while expenditures are around $780,000, resulting in a deficit of $283,375. A rate increase for commercial customers is being considered.
Storm Water Fund
No rate increases since 2008, leading to a deficit. Revenue is $821,000 and expenditures are $867,000. A storm water master plan is estimated at $500,000.
Water Fund
The fund is upside down by approximately $434,000, with revenue at $7.4 million and expenditures at $7.9 million. A rate adjustment is anticipated.
Sanitation Account
Revenue is $8.4 million and expenditures are $8.1 million, with a $4.5 million fund balance. A bulk rate increase is being considered due to high participation in bulk pickups.
Recycling Program
Contract extensions are being proposed due to market uncertainty and high costs. The cost for recycling services is $1.1 million, and the city is exploring options for future management.
Hospital Grants
Two percent of the hospital trust indenture fund is allocated for discretionary and hospital grants.
Discretionary Account (9050)
Funds from the hospital trust indenture are allocated for economic development purposes, including projects at Centralium and the industrial park.
Hospital Rent (9060)
Annual rent from SSM for the hospital, used for capital infrastructure and quality of life initiatives.
Public Comments
Two residents submitted questions regarding the budget. One expressed concern about the net loss reflected in the overarching budget, specifically a revenue drop and expenditure increase over two years, and questioned the golf course funding. Another resident inquired about the dedicated bike lane on Adair and covered bicycle parking.
Coming Up
Watch For
- Rate increase for commercial street lighting
- Storm water master plan development
- Water fund rate adjustment
- Bulk rate increase for sanitation services
- Recycling contract extensions and future program options
- Potential for new sales tax initiative for capital improvements and parks
- Engineering study for City Hall renovation/rebuilding
- Completion of dedicated bike lane on Adair
- Discussion on covered bicycle parking
- Progress on the p25 radio system implementation
- Hospital District development and related infrastructure projects
- Incentive program for living in Midwest City
Announcements
- Staff recognized for their work on the budget document, particularly the finance department for timeliness and accuracy.
- The police fire training facility is expected to be completed in August/October.
- 911 dispatchers are now recognized as First Responders, entitling them to similar benefits as fire and police.
- The next-gen 911 system is rolling out, saving taxpayers approximately $900,000 and providing precise location tracking.
- The city's eBay store for surplus property is generating revenue with low overhead.
- The Home Grant Program offers $7,500 for first-time homebuyers in Midwest City, but has seen reduced utilization this year.
- The golf course renovation has been highly successful, attracting visitors and generating significant revenue.
Agenda Summary
Budget Briefing for 2023-2024 Budget
Presentation by city staff on the proposed budget for the upcoming fiscal year, covering various departmental funds, revenue projections, and expenditure plans.