Oxford council advances supplemental budget and earmarks $2.8 million for wastewater solar array

Oxford — The City Council adopted a supplemental budget ordinance on second reading and discussed planned capital transfers that include a $2.8 million appropriation for a solar array at the wastewater treatment plant.

Heidi, the finance director, said the city will transfer excess revenue and underspent budgeted expenses into capital projects for 2026 and that hotel-tax receipts exceeded estimates, with some excess already moved to the economic development fund. "These adjustments include our annual year end transfers to the capital funds to help the projects in 2026," Heidi said when the first reading of supplemental appropriation ordinance number 9 was introduced.

During the council's announcement and discussion period City Manager described the solar project funding: "We have an appropriation of $2,800,000 out of the wastewater improvement fund," and "we're transferring $1,800,000 from the general fund and then we're also transferring $1,000,000 from the capacity benefit funds, the wastewater capacity benefit funds." The manager said staff hopes to use federal investment tax credits to offset costs and expects to present a resolution authorizing the city manager to sign a construction contract at the next meeting.

Councilors asked several procedural and policy questions about timing and fund usage. One member asked whether excess hotel-tax or short-term-rental revenue had been directed to the housing trust fund; staff replied that short-term-rental tax revenue goes to affordable housing but that prior agreements routed some hotel-tax overage into economic development. Heidi also listed several capital projects that will slip into 2026, including a water softening project, a bio‑tower media replacement, an EV charging station and Locust Street sidewalk work. The finance director said the skate-park replacement similarly will be delayed and that the cemetery appropriation needs a modest increase because headstone concrete costs exceeded the 2025 budget.

On the ordinance returned for second reading (supplemental ordinance number 8), staff said the only changes were formatting and inclusion of transfers; the budgeted numbers themselves did not change. The clerk conducted a roll-call vote for that ordinance; the clerk recorded "Yes" votes from Miss Ornelas, Mister Snavely, Mister Finch, Mister Bracken, Miss Franklin, Miss French and Mayor Smith, and Mayor Smith announced that the ordinance was adopted.

City Manager described an estimated payback of about eight years for the solar project based on energy savings and emphasized that contractors were being evaluated on their ability to help the city secure the investment tax credits. "If we can spend 5% before the end of the year, we can benefit from that as well," the city manager said, noting the time sensitivity of tax-credit deadlines.

The ordinance language and fiscal transfers adopted at the meeting will be reflected in the city's certified budget submissions to the county. Staff said they will return with the contract authorization resolution and more detailed procurement documents at the next council meeting.