Edmond council reviews proposed FY2025–26 budget, schedules follow-up workshop

Edmond City Council held a special public hearing May 12 on the proposed fiscal year 2025–26 budget and financial plan, hearing a staff presentation on revenue assumptions, reserves and a multi-year capital-improvements program before scheduling a follow-up workshop May 27 and setting June 9 as the date for budget adoption.

The presentation, led by Kathy Pamis, finance director, said staff projected no growth in sales tax for FY26 while budgeting 4 percent growth in use tax, and that the city will rely on $57,000,000 in reserves in the coming year. "We've budgeted conservatively," Pamis said, adding that the $57,000,000 draw comes from multiple funds and that total city reserves now stand at about $274,000,000.

Why it matters: by statute the council must adopt a budget by June 15; staff and council emphasized the need to be conservative because year-to-date sales-and-use tax collections have been flat or slightly negative. The conservative assumptions affect operating budgets, planned hiring and the timing of capital projects.

Staff told the council the FY26 package totals roughly $413,000,000 in proposed spending financed by about $456,000,000 in projected revenue plus the $57,000,000 reserve draw. Operating expenditures are shown at roughly $279,000,000, with one-time capital outlay of about $82,000,000 and debt service of roughly $51,000,000.

Capital projects and debt: staff described a multi-year capital program funded in part by the 2017 capital improvement sales tax, grants and loan proceeds. Key projects called out for FY26 or near-term work included the City Center complex and the Edmond YMCA library; KickingBird clubhouse improvements; Danforth and Kelly street work; an intelligent transportation system upgrade (19 intersections); Pelican Bay pool replacement; several trail connections including the Route 66 Canal Trail Connector and portions of the Creek Bend Trail; Second Street sidewalks; Second Boulevard intersection improvements; Coltrane improvements tied to the Uncommon Ground sculpture park; and a new police facility at Arcadia Lake budgeted at $5,000,000.

Chris Knifing, director of water resources, emphasized how water loan draws affect the appearance of the budget: "With water loans, we can't show those in the budget as budgeted expenses because they would exceed our budget authority," Knifing said, explaining that project draws and encumbrances can make year-to-year totals look uneven even when projects are planned and financed.

Staff gave a snapshot of the city's outstanding debt as of March 31: about $821,000,000 outstanding principal with an estimated $423,000,000 in remaining interest for a combined total near $1.24 billion; council materials showed FY26 debt service budgeted at roughly $51,000,000, of which about 12 percent is supported by taxes, 2 percent by electric ratepayers and 86 percent by water ratepayers.

Reserves and policy concerns: Pamis walked council through the $57,000,000 reserve use, broken into general fund (~$700,000), special revenue funds (~$12,000,000), CIP funds (~$8,800,000), utility funds (~$31,000,000), other enterprise (~$1,400,000) and internal service funds (~$2,900,000). Members raised concern about using reserves for ongoing operating costs and asked staff to produce a detailed list of reserve movements and transfers for review.

Presentation format and transparency: several council members urged staff to present future budgets using clearer, purpose-based formats (showing personnel, materials and services by department and the funding sources that back them). Mayor and council members asked staff to prepare an overlay or alternative presentation for the May 27 workshop to provide the additional context and make year-to-year comparisons easier for the public.

Community partnerships and grants: staff said grant revenue (including ARPA-funded items) and other outside funding will affect the timing of several projects; Christie Batterson and her team were credited for pursuing grants that reduced the city's local share on some projects. Staff also noted the city uses Oklahoma Water Resources Board loans and other low-cost financing for major water projects.

Public comment: a resident who identified himself as Randall Shade of 507 Timberdale Terrace asked why the $5,000,000 police facility at Arcadia Lake was budgeted from the CIP fund rather than from the city's public-safety–designated tax funds, noting past public-safety fund balances. Staff replied that the police facility had been listed as a 2017 CIP project and that the current presentation reflects that placement; council asked staff to follow up with specifics.

Next steps and timing: council members scheduled a follow-up budget workshop for May 27 to go deeper into variances, reserve uses and project timing, and staff indicated the council is expected to adopt the FY26 budget at its June 9 meeting. Staff repeatedly emphasized the budget is conservative and that staff will return to council if midyear revenue changes warrant adjustments.

Votes and formal actions at the meeting included a council-approved 10-minute recess and later motions to reconvene and adjourn; those procedural motions passed without recorded roll-call tallies in the transcript.