Meeting Summary
The Stillwater City Council held a special meeting to present the proposed fiscal year 2023 operating budget and discuss pay plan and retirement adjustments. Key discussions included the challenges of balancing the budget due to increased expenditures and the need to reinstate utility rate escalators. The council also considered adjustments to employee compensation and retirement vesting schedules to improve recruitment and retention.
Key Decisions & Votes
Electric Rates Reinstatement Discussion
01:00:00The council voted to ask staff to bring the electric rate issue back to an SUA meeting for further discussion and potential action on reinstating the rate escalator.
Financial Matters
Proposed Fiscal Year 2023 Operating Budget
Presentation of the proposed budget for FY23, totaling $135.9 million in revenue and $122.1 million in expenditures. The budget is balanced but relies on council action regarding utility rates and budget amendments.
General Fund Revenue Increase
Projected increase in general fund revenue, primarily from sales and use tax, alcohol tax, and police fines.
General Fund Expenditure Increase
Projected increase in general fund expenditures, including transfers out for dedicated sales tax, American Airlines agreement, and payroll increases for fire, police, and other general fund departments.
SUA Operating Fund Revenue Increase
Projected increase in SUA operating fund revenue, mainly from electric sales, energy payments from GRDA, and a transfer from the general fund.
SUA Operating Fund Expenditure Increase
Projected increase in SUA operating fund expenditures, including purchase power, natural gas for the energy center, and electric payroll.
Budget Amendment for FY22
Proposed budget amendment to unappropriate funds identified by department directors as not needed in the last quarter of FY22, to be used for planning FY23 budget.
Wastewater Project Fund Transfer
Proposed budget amendment to move a wastewater project from the SUA operating fund to the dedicated wastewater fund, freeing up funds in the SUA.
OMRF Forfeitures
Estimated annual amount of unvested employer contributions that revert back to the city as a credit against their OMFR bill.
Coming Up
Deadlines
- April 18th: Public hearing on the proposed budget
- May 16th: Presentation of budget resolutions for council approval
- July 1st: Proposed effective date for compensation adjustments and health insurance renewals
Watch For
- Budget amendment for FY22 unappropriated funds in April
- Budget amendment for wastewater project fund transfer in April
- Resolution to reinstate utility rate escalator at a future meeting
- Further discussions on employee compensation strategy and total compensation review
- Authorization for City Manager to sign benefit contracts in approximately one month
- Further discussion on OMFR plan adjustments, specifically regarding vesting schedule mechanics and application to current employees
Agenda Summary
General Orders Item A: Presentation of the Proposed Fiscal Year 2023 Operating Budget
Presentation by the Finance Director and Budget Specialist on the FY23 budget, highlighting revenue and expenditure trends, reserve funds, and challenges related to inflation and utility rates.
General Orders Item B: Presentation of Proposed Pay Plan Adjustments
Presentation by the HR Director on a multi-prong approach to compensation adjustments for July 1, including departmental reviews, tiered adjustments, and updates on health, life, and dental insurance renewals.
General Orders Item C: Discussion and Possible Action on Proposed Adjustments to the City of Stillwater's OKMRF Plan
Discussion on amending the retirement plan's vesting schedule to improve recruitment and retention, with a focus on shortening the current 10-year schedule.