Edmond council reviews options to erase $1.278 million projected general‑fund shortfall

Mayor convened a special Edmond City Council budget workshop on March 16 to review draft FY27 fund summaries and options to avoid a projected $1,278,000 deficit in the general fund. City staff presented a work‑in‑progress budget that assumes mostly a maintenance posture with almost no net new positions and seeks council guidance on tradeoffs that would restore reserves.

Kathy Panas, the finance director, summarized the general‑fund picture, saying total estimated revenue is roughly $83 million, transfers in related to debt and electric amount to about $22 million, and the initial scenario included approximately $1.2 million of fund‑balance use. Staff reported an estimated 5.28% unassigned general‑fund balance under the baseline and noted the council previously directed staff to identify options to move toward a 10% unassigned balance.

City manager Mr. Krieger told the council the presentation identified several concrete levers: reduce the general‑fund transfer to field services for street maintenance (a proposed $2.6 million reallocation from the 2017 CIP fund balance), reduce CityLink’s general‑fund transfer (staff outlined a $495,000 option that uses grant and fleet funds for vehicle replacement and larger reductions that would require service cuts), temporarily reduce nonprofit contributions (a $250,000 option), or assume modest sales‑tax growth (1% in the staff model) that would raise the fund balance without program cuts. Mr. Krieger said the $2.6 million CIP draw alone would eliminate the operating deficit and lift the unassigned fund balance toward about 8.2%; combining that with the $495,000 CityLink option and modest revenue growth could approach the council’s 10% goal.

Council members endorsed a one‑time CIP draw to shore up reserves but raised caution about treating CIP balance as a recurring operations source. Several members asked that the CIP committee weigh in on reprioritization and asked staff to provide an interactive worksheet showing the impact of each option on unassigned fund balance.

On transit, Christy Batterson, director of Housing and Community Resources and CityLink manager, explained the $495,000 savings relies on an STBG‑UZA grant and moving the vehicle purchase to the CityLink fleet fund (80% reimbursement is expected for six replacement vehicles and purchases may be spread over three years). She warned that larger reductions — $1 million or $1.495 million — would cut service, eliminate the weekday commuter route to Oklahoma City and reduce hours and frequency on key routes, and would require public outreach and hearings.

Public‑safety funds drew sustained concern. Staff said the fire fund will draw down fund balance in FY27, leaving a projected reserve near $400,000 unless changes are made; Fire Chief Terry Esri said the shortfall “keeps me up at night” and described only limited places to cut without risking health and safety. Police Chief JD Younger flagged pending state legislation (Senate Bill 716) as a potential liability that could increase city pension contributions and is being tracked. Council members asked for a deeper look at five‑year projections to understand whether current drawdowns are sustainable.

Staff also gave overviews of utilities, including an electric fund projection of about $107 million in revenues and a wholesale power cost increase projected around $70 million; Glenn Fisher, electric director, noted reserves and a proposed conservation program intended to shave summer peaks and yield annual savings. Water, wastewater, drainage, solid‑waste and fleet funds received high‑level reviews and staff requested additional workshops for detailed rate and capital discussions.

The council scheduled follow‑up workshops (water and wastewater, rate study and capital plan) and asked staff to circulate department lists and more granular reports so members could select which departments to review in depth. No budget items were adopted at the meeting; council members voted to take a short break and later adjourned after discussing the next agenda item.

The city will return to targeted workshops in late March and April to refine assumptions and vote on final FY27 budget decisions after additional analysis and department briefings.