Mayor G.T. Bynum’s total budget proposal is $828.5 million – $25.1 million less than the budget for the last fiscal year. That’s a 3% cut.

The operating budget is $693.7 million, a $20 million decrease, or 2.8% under the last budget.

And Bynum wants to raise sewer and wastewater rates.

The general fund, which funds most core services and operations, is projected to have $256.6 million in revenue, which is down by almost $13M from the proposed budget expectations.

Economic projections indicate that the new fiscal year may experience flat to low economic growth during the first half of the fiscal year.

 Due to the volatile nature of the economy from the coronavirus, especially in the energy and manufacturing industries, the unemployment in Tulsa is expected to trend above the U.S. unemployment total. With regards to restaurant, hospitality and energy sectors, the full economic picture is not determined due to the Chinese coronavirus.

To meet a projected $13 million budget shortfall, the general fund budget will draw on reserves from the Rainy Day Fund – $3 million will be used in the rest of this fiscal year to address projected revenues shortfalls, another half in fiscal year 2021 and half of what remains in the fiscal year 2022 plan. The FY21 budget also uses fund balance developed in the first three quarters of FY20 to stabilize the general fund.  In the current fiscal year, $6.6 million of fund balance will be used to offset unexpected lost revenue and in FY21, $9.3 million in fund balance will be used. To ensure the city’s reserves remain adequate to meet emergency needs, a $19.7 million operating reserve has been set aside to respond to unexpected natural disasters.

The budget makes some cuts.

Bynum already announced City of Tulsa non-sworn employees would be taking furlough days every Friday in half day increments from May-December to realize $4 million in savings, which totals 17 furlough days (13 days will be taken in FY21). The hiring and travel freeze for all positions funded by the general fund and other sales-tax supported funds will also continue for FY21. There will no service level increases in FY21.

“With an overreliance on sales tax and in the midst of both a public health crisis and an energy industry crisis, we are only able to propose a budget that maintains existing service levels because of two things: our employees sacrificing their own pay, and elected officials saving when we could have spent – building up cash reserves for a time just like this,” Bynum said.

Budget highlights:

• Fire and Police Academies – Three academies for police and one academy for fire are scheduled to help with attrition.
• Mowing Cycles – This budget will keep the City of Tulsa full eight mowing cycles in place.
• Utility Rates –The city is reducing the sewer and stormwater rate increases that were originally adopted in the FY21 plan. The sewer rate is 3 percent and Stormwater is 5 percent. (The FY21 plan originally planned for a 7 percent sewer increase and 9.5 increase for Stormwater.) There will be no rate increase for water service in the coming year.

The Tulsa City Council must approve a budget at least seven days prior to June 30, the end of the city’s fiscal year. After the budget has been approved, Fiscal Year 20 -21 will begin July 1.