Tahlequah council approves ordinance to formalize revenue stabilization transfers at 5%

The Tahlequah City Council on a voice vote approved Ordinance No. 13 89-20 25, amending the city code on reserve funds to create a formal process for transferring a portion of certified projected revenues into a revenue stabilization fund.

Under the ordinance the finance director will certify projected revenues each May; during budget preparation the council will budget 95% of certified revenues and transfer the remaining 5% to a net revenue stabilization fund until that fund reaches 15% of projected revenues. Finance staff said transfers this year would total $362,000 and that combined with existing reserves would move the city toward the 15% goal over several budget cycles.

Finance Director Michelle Collins described the budget priorities and cautions during the council's budget discussion and staff explained how the revised reserve calculation differs from the prior proposal, which had used a larger share of carryover funds. City Treasurer Marty Hainesinger provided figures for existing reserve balances and said the combined reserves would exceed $2 million after the transfer.

Councilors discussed whether a higher transfer rate (10% or more) would be preferable but voted to approve the 5% transfer approach now, with council members indicating the matter could be revisited in future budget cycles.

The ordinance will take effect 30 days after publication as required by law; council members and staff said the change is not expected to alter the current year's operations because existing policies and line items remain in place.

Staff will implement the certified-revenue calculation and apply the transfers during the next formal budget cycle. The council recorded the motion and the vote as: Councilor Baker 'Yes'; Councilor Gary 'Yes'; Councilor Myers 'Yes'; motion carried.