TAYO staff presents draft FY26 budget showing potential $210,000 deficit; reserves to be restricted at budget adoption

Tulsa Authority for Economic Opportunity staff presented a draft FY26 budget on April 24, outlining revenue assumptions, service fees and expense changes and projecting a tentative deficit of about $210,000 based on the figures available at the time.

Lynn Kane, a TAYO staff member who presented the budget, showed year‑to‑date comparisons and noted several revenue items that are uncertain or pending confirmation. Kane said proceeds from a pending sale of 311 North Boulder—"supposed to close next Monday" and described in the presentation as $2,600,000—would add cash to reserves but would remove a recurring $93,000 line item if the sale completes. Kane also highlighted that parking operation revenues (from American Parking, transitioning to Oak View Group) have decreased from last year’s budget but staff hope actual receipts will come in higher than the conservative forecast.

On program revenue, Kane flagged downtown redevelopment loan funds and the affordable housing trust as areas under review, and said potential grant awards could be announced in the coming months (one expected next month, another possibly in September). On expenses, staff noted increased salary and wage costs tied to more employees and hardware purchases undertaken this fiscal year, and several line items where placeholders were used pending vendor/contract clarification.

Kane told trustees the operating reserve policy adopted earlier in the meeting will move reserves to restricted funds when the FY26 budget is adopted in July. In discussion trustees asked whether the operating reserve would cover salaries and wages; Kane explained the operating reserve target is 10% of anticipated operating expenses for the coming year and would therefore include those costs in the calculation.

Staff emphasized the budget remains a draft and the board will be asked to vote on the final FY26 budget at a future meeting. Trustees and staff discussed conservative assumptions intended to avoid over‑estimating revenue, possible upside from parking and TIF revenues, and options for adjusting service agreements and personnel costs.

Kane said the authority is hopeful that additional revenues, including parking receipts and potential grants, could reduce or eliminate the projected deficit before final budget adoption.