Muskogee presents balanced FY2026 budget; officials warn revenue dip and CIP risk
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Summary
City staff presented a balanced fiscal 2025–26 budget at a June 9 public hearing, reporting a modest revenue decline, reserves above policy minimums and a $600,000 use-tax risk tied to the CIP vote.
City Manager Dennis Reid presented a balanced City of Muskogee budget for fiscal year 2025–26 at a June 9 public hearing, telling the council the administration projects a modest revenue decline and that the city’s reserve remains above its 20% target.
Reid said the administration prepared the budget after trimming general fund requests from about $45.6 million to roughly $44.3 million and that staff projected about a $300,000 drop in general-fund revenue for FY26. “For today, we’re gonna present a balanced budget,” Reid said during the presentation.
The budget presentation laid out the city’s key strategic initiatives — streets and infrastructure, public image, economic development, housing and tourism — and explained fund-specific assumptions. Reid told the council he expects sales-tax receipts to be below prior budget levels and noted a $600,000 decrease in use-tax revenue could occur “if the 2025 CIP does not pass.” He also reported that the city’s reserve had dipped to 20.65% after using some one-time funds this year, still just above the 20% target.
Reid walked the council through several enterprise and restricted funds. The civic center will receive a $300,000 general-fund subsidy in the proposed budget and capital items including a truss set and two winch sets. Economic development is funded primarily by use tax and includes $1.5 million in transfers with roughly $900,000 earmarked for general operations and $500,000 for ports-related projects. Reid said capital requests totaled about $5 million but the city estimated only $1.5 million in new capital funding would be available for FY26.
Reid highlighted the city’s conservative budgeting principles — statutory compliance, balance, use of current revenues and preserving long-term fiscal health — and noted that staff had already pared many requests during development of the proposal. He closed by inviting council questions and reminding the public the full budget book is posted online for review. No action was taken at the hearing; the council later advanced separate resolutions to adopt budgets for the city and related authorities.
The hearing included brief council remarks of appreciation for staff work and confirmed the item was informational that night. The council will consider formal budget adoption actions at later agenda items and public meetings.
