Owasso presents conservative FY 2025–26 budget emphasizing street projects, staffing and reserves
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Summary
City staff presented a proposed FY 2025–26 operating budget that holds reserves steady, adds several public-safety and public-works positions, and budgets roughly $5.6 million for street projects while drawing on three funds to maintain a $2 million annual street program.
Chris Gehr, city manager, presented the Owasso proposed fiscal year 2025–26 operating budget to the joint meeting of the Owasso City Council, Owasso Public Works Authority and Owasso Public Golf Authority.
The proposed general fund budget relies on projected actual sales and use tax collections for FY25 rather than the prior-year budget. Gehr said projected actual collections were about 2.1% above the FY25 budget, and staff modeled FY26 revenues conservatively in light of flat economic indicators. The proposal accounts for cost increases in salaries and benefits, service contracts, vehicle leasing, fuel, utilities and landfill fees. Gehr said staff is negotiating labor contracts with the IFF and FOP and that final costs for those agreements were not yet known.
The nut of the proposal: the budget would fund 1.5% across-the-board increases for many employees on July 1, plus a performance-based increase of up to $1 per hour on anniversary dates; it adds multiple new full-time positions; and it dedicates capital funding for streets, parks, stormwater and equipment.
New staffing in the proposed budget includes an assistant city attorney, a cybersecurity administrator, right-of-way and stormwater inspectors, a stormwater maintenance worker, a recycle-center operator, three police patrol officers and three firefighter-paramedics. Gehr estimated the additional staffing cost at roughly $1.2 million. The budget also includes three part-time positions: an office clerk for recreation and two custodians for a new public-works facility.
On streets, FY26 proposes about $5,600,000 in total street project funding: $3,200,000 from the CIP fund, $1,900,000 from other capital sources and $500,000 from the half‑penny sales tax. The package includes design and right-of-way funding for two widening projects (90 Sixth Street North from Mingo to Garnett and 106th Street north widening segments), $1,000,000 for a bridge/utility replacement on 86th Street, $1,500,000 for a major intersection construction project, and a $2,000,000 annual street rehabilitation program. Gehr said the two widening projects were in design and the FY26 dollars were intended primarily for right‑of‑way purchases.
Stormwater allocations include drainage improvements at South Atlanta, Ruyor Park, 3 Lakes subdivision and Hale Acres, plus $260,000 for a dump truck. Parks and recreation capital includes $900,000 for sports-park field improvements, $170,000 for tree removal at Centennial Park, $150,000 for a park master plan and $270,000 for restroom improvements at Centennial, Rheola and Sports Park. The Owasso Public Golf Authority capital list includes $90,000 to replace utility vehicles and $10,000 for a turf top-dressing broom.
Public safety capital funded by the third-penny sales tax includes eight police vehicles at about $65,000 each, a $350,000 ambulance purchase and associated ambulance equipment. The Owasso Public Works Authority capital list includes $510,000 to replace and upgrade a UV system at the wastewater plant and equipment replacements at the Santa Fe West Station; funding is also set aside for the ongoing Hale Acres waterline project with $150,000 anticipated from a CDBG grant and $150,000 from the OPWA.
Gehr told council staff recommends maintaining general-fund reserves between 25% and 33% to weather revenue dips. The FY26 budget assumes a $1 million transfer from the general fund to the OPGA for ongoing operations, the same transfer amount used in the current fiscal year. Gehr said the budget will be presented at a public hearing in June, discussed further at the June 10 work session, and placed on the June 17 agenda for possible adoption. By statute, the adopted budget must be filed with the state auditor by July 31.
Councilors asked questions about the transportation master-plan update, the street-assessment work, timing of new hires and reliance on grants. Staff said the transportation master-plan update will be performed by an outside engineering consultant and will include traffic counts, accident data and multiple public meetings; the budget set aside $800,000 for the transportation master plan and the street assessment combined. On staffing, Gehr said some hires will be mid‑year to reduce FY26 salary pressure and that staff trimmed other requested positions, leaving some needs deferred for future budget cycles. Regarding grants, staff said only grants that are reasonably certain have been included; aspirational grants remain contingent.
If adopted as proposed, the budget would continue the city’s multi‑fund approach to capital and maintain a conservative posture on revenues while funding identified near-term projects and a limited set of new positions.
Ending: Staff offered to meet individually with council members to walk through details before final adoption and invited public comment at upcoming hearings.
