April sales tax down; finance staff report conservative budget posture to avoid layoffs

Kim Kaufman, finance staff, presented the monthly revenue and expenditure report for the city and told the finance committee that April sales tax receipts were 3.5% below April 2024 and year‑to‑date receipts were 1.3% below last year.

Kaufman said the city’s sales tax budget for the year had been set about 2% higher than last year’s actual receipts and that current collections are roughly 3% below that budget target. She noted similar patterns across neighboring cities and statewide and said staff are taking a conservative approach to next year’s revenue projections.

“We will continue to remain conservative,” Kaufman said, describing steps staff are taking to avoid layoffs and preserve service levels. She told the committee the city’s long‑term goal is to remain far enough ahead in projections to avoid workforce reductions that would reduce service delivery.

The presentation included historical context: January (reflecting December sales) was the highest revenue month in the last five years, and the city still tracks above pre‑2020 levels despite recent monthly declines. Committee members pointed to statewide declines in grocery sales tax collections and noted the state posted a negative 13.23% change in the last month on its own collections. Finance staff also flagged new retail activity, including a Caterpillar dealership opening on North Interstate Drive, as a positive sign.

Committee discussion and next steps

Councilmember Diaz and others urged continued engagement with the Oklahoma Municipal League’s five‑year plan to diversify municipal funding. Staff said they would follow up on prior legislative proposals to allow voter‑approved public safety districts and provide updates on that work.

No action was taken; the presentation was informational and staff will continue monitoring receipts and provide updates as warranted.