Bartlesville council adopts FY25-26 budget, approves annexation and street contract, and awards $600,000 incentive to local manufacturer

At its meeting May 20, the Bartlesville City Council approved a slate of budget and economic-development actions, adopted the annual capital-improvement program and moved forward on several procurement and land-use items.

Key formal actions included adoption of the City of Bartlesville fiscal year 2025-26 budget and related appropriations; approval of the capital improvement program; annexation, rezoning and comprehensive-plan amendment for approximately 27.015 acres east of the municipal airport (the former Siemens property); award of a preventative-maintenance street contract to Hollowbrook Asphalt; and approval of a $600,000 economic incentive to Paxtera LLC/Metal Goods Manufacturing (KC Welding) tied to 40 new jobs. The council also approved a requested partial closure of a five-foot portion of a drainage and utility easement to resolve a pool encroachment and authorized the Bartlesville Development Authority funding and contract for FY25-26.

Budget and capital items City CFO Jason Meininger summarized the FY25-26 budget process and noted a small correction to remove a duplicated $100,000 IT line item; the council approved the budget after public hearing. The council also approved the capital improvement program, which included general-fund capital, airport projects, water and wastewater equipment purchases, and the final year of voter-approved half-cent sales-tax street maintenance funds.

Annexation and zoning The council unanimously adopted an ordinance to annex the 27.015-acre tract east of the municipal airport, rezone it to M-2 General Industrial with a planned-unit development (PUD), and amend the comprehensive plan to designate the property within Ward 4 for industry and trade. The applicant is Diner Out LLC, an affiliate of Lincoln Electric Products Company; Planning Commission had voted 7-0 in favor.

Procurement and projects - Operation Yard Shields (bid no. 2024-2025-015): Staff recommended rejecting the bids after identifying performance concerns with a proposed subcontractor used by the low bidders; the council voted to reject and re-bid the project. - Preventative maintenance streets (bid no. 2024-2025-016): One bid was received from Hollowbrook Asphalt for $3,767,112.21. The total available budget for the program was $3,775,000; staff recommended and council approved awarding the contract to Hollowbrook Asphalt. Staff described the work as crack sealing, pavement patching and a bonded matrix overlay (HA5) on higher-volume arterial streets; the contractor plans a phased, moving-closure approach with some short full closures for HA5 application.

Easement closure Council authorized vacating the west five feet of a drainage and utility easement on the east side of Lot 6, Block 2, Southern Hills Addition, Phase 2, to resolve a swimming-pool encroachment; city staff and utilities reported no objections and private utilities had no outstanding conflicts.

Economic development and BDA items The council approved the Bartlesville Development Authority's FY25-26 appropriation request and the annual contract with the BDA. The council also approved a $600,000 forgivable incentive to Paxtera LLC/Metal Goods Manufacturing (KC Welding) to support purchase and renovation of a building at 417 W. Eighth St. and to secure 40 new primary-industry jobs. BDA director Chris Batchelder explained the incentive follows the long-standing model that treats primary-industry jobs as long-term generators of sales tax revenue; he summarized a valuation model estimating approximately $15,000 in new local sales-tax revenue per primary job over ten years.

Other actions The council received the annual report and approved the FY25-26 operating budget for Visit Bartlesville. The council also approved several proclamations (National Day of Prayer, Flood Insurance Month and Frontline Worker Appreciation Month) earlier in the meeting.

Votes at a glance - Adopt FY25-26 City Budget: Motion by Councilman East; second by Councilman Sherrick. Vote: Sherrick Aye; East Aye; Kirkpatrick Aye; Vice Mayor Dorsey Aye; Mayor Curt Aye. Outcome: approved. - Award preventative maintenance streets contract to Hollowbrook Asphalt for $3,767,112.21: Motion/second on the record; vote recorded as unanimous. Outcome: approved. - Reject bids for Operation Yard Shields (bid no. 2024-2025-015): Motion by staff/vice mayor to reject; unanimous vote. Outcome: bids rejected; staff to re-bid. - Approve annexation/resolution for 27.015-acre former Siemens property (Lincoln Electric affiliate): Motion to adopt ordinance; unanimous. Outcome: approved. - Approve vacating 5-foot portion of drainage/utility easement at Southern Hills Addition (to resolve pool encroachment): Motion and unanimous approval. Outcome: approved. - Approve BDA appropriation and contract for FY25-26: Motion and unanimous approval. - Approve $600,000 forgivable incentive to Paxtera LLC / Metal Goods Manufacturing (KC Welding) to support 40 new primary-industry jobs: Motion and unanimous approval. Outcome: approved; incentive to be recovered pro rata if jobs are not timely created per agreement schedule. - Receive Visit Bartlesville annual report and approve its FY25-26 operating budget: Motion and unanimous approval.

What to watch next Staff will re-advertise the Operation Yard Shields procurement and return results to council. The annexed former Siemens property will proceed to development review under its new industrial zoning and PUD terms. The BDA and city staff will monitor KC Welding's hiring and settle the incentive on an annual basis according to the terms described by BDA staff.

Full texts of motions and vote tallies appear in the council minutes and the meeting packet.