Oakwood council adopts budget reallocation and creates payroll clearing fund
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Summary
On Nov. 3, 2025 the Oakwood City Council approved a supplemental appropriation moving budgeted personnel dollars into operating accounts to pay contracted services and adopted an ordinance to create a payroll clearing fund that must be approved by the state auditor before it can be established.
Oakwood City Council on Nov. 3 adopted two ordinances to adjust how the city accounts for personnel and payroll costs. Vice Mayor Byington moved the measures at the councils second readings and the council approved both by unanimous roll-call votes.
The first ordinance amends section 1 of the 2025 original appropriation ordinance No. 5,009 to reallocate budgeted funds from personnel subfunds to operating subfunds within the general fund, street maintenance and repair fund, leisure activity fund, service center fund, and water operating fund. "This ordinance only changes that allocation. It does not change overall spending levels," Vice Mayor Byington said, explaining the change was needed after several retirements and a hiring freeze led the city to use contractors to avoid service interruptions.
Byington said personnel expenses cover wages and benefits for city employees, while operating expenses cover other costs. He said the city will use the reallocated operating funds to pay contracted services that were deployed while recruitment and an organizational assessment were underway.
The second ordinance establishes a payroll clearing fund in the city's fiscal records to segregate entries related to payroll administration, streamlining the management and disbursement of employee pay, withholdings and remittances. Byington noted the fund must be approved by the state auditor before it can be established.
Both measures were moved and seconded; Laurie conducted roll-call votes in which Mayor Duncan, Vice Mayor Byington, Mister Stevens, Mrs. Turban and Mrs. Jackson each voted yes. The ordinances take effect in accordance with statutory and administrative requirements; the payroll clearing fund will be set up only after state-auditor approval.
Council did not discuss amendments or dissenting votes during these items. The council moved next to a first reading on proposed utility rate changes.
