Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Budget topic
No spam. Unsubscribe anytime.
City manager: sales and use tax collections finish fiscal year about $12 million below budget; city will use fund balance
Summary
City Manager reported a roughly $12 million shortfall in sales and use tax for the fiscal year and said the city will draw about $6 million from reserves while continuing to monitor finances.
The city manager reported to the Oklahoma City Council that June sales and use tax collections left the city roughly $12,000,000 below budget for the fiscal year and that the city will use about $6,000,000 of general fund balance to cover the gap.
The council was told the city closes its financial books about a month after the fiscal year ends and that transactions still coming in could change the final numbers slightly. “Wedid take measures to try to reduce cost this year, but, wasn't sufficient for how much the revenues were below the budget,” the city manager said.
The manager said other revenue streams, such as franchise fees, fell well below projections and that the city will draw on reserves in part so it does not have to take abrupt spending cuts. The city manager noted the fund-balance policy range of roughly 17% to 22% and said the city will remain near the upper end of that policy even after the drawdown.
Council members did not take a vote on the report; the manager said staff will continue to monitor revenues, produce updates and return to council as the new fiscal year progresses. The manager also reiterated that the books are not formally closed and final totals could change as remaining transactions post to the year-end accounting.
