Tahlequah presents FY 2025-26 budget with 3% raises, $1.8M in capital funding and proposed 10% rainy-day transfer

City officials presented the proposed fiscal year 2025-26 budget to the Tahlequah City Council, outlining a plan that estimates a 3% increase in tax revenue, provides a 3% across-the-board pay increase for full-time city employees, funds $1.8 million of approximately $2.4 million in capital-improvement requests, and recommends a 10% transfer to the rainy-day fund.

Mayor Suzanne Myers said the proposed budget “does include an estimate of a 3% increase in revenue, tax revenue, next year,” and noted the administration included a 3% pay increase for full-time city employees. Myers said council members had emphasized raises for city staff during one-on-one budget conversations and thanked staff for compiling the proposal.

City Treasurer Marty Hensinger and City Administrator Taylor Jenkins also briefed the council. Hensinger credited the finance department and administration for preparing the budget and noted the ordinance for the rainy-day fund remains under review; the document before council includes the original ordinance language pending finalization. Jenkins said staff initially considered a 50% carryover target for the rainy-day fund but recommended 10% after examining recent transfer history; at a 10% level the recommended transfer would be about $363,000. Jenkins said the change would still represent a “major uptick” in reserves and help the city provide the planned employee raises.

Officials said the budget proposal funds roughly $1,800,000 of about $2,400,000 in capital requests. Jenkins also said the administration is working on adjusting longevity pay for employees with five or more years of service; that adjustment is not yet reflected in the proposed numbers and would add approximately $35,000 to General Fund expenditures if implemented.

The police union’s contract negotiations remain ongoing and could change the final numbers, officials cautioned. Jenkins said the document presented is not final; staff expect to publish the required budget summary in the newspaper this weekend and aim to present a final budget for adoption on June 2, pending resolution of outstanding items.

Councilors asked questions but took no formal vote on the budget at the meeting; the presentation served as the required public notice and an invitation for public review and comment before final adoption. Officials emphasized that all municipal expenditures must be appropriated in the budget and encouraged citizens to review the published summary.