Budget Revisited

Last week, the Edmond City Council held budget hearings.   The good news – it will balance with no predicted layoffs or furloughs.  More good news?  We are raising the percentage of reserves, or rainy day money, in the operating account.  The bad news – reduced sales tax of more than 9% from last year’s budget means tough choices.

It‘s taxpayer money, and Edmond, Oklahoma's taxpayers need to know how it was prioritized.    First and foremost, we are proposing a reduced budget that does not reduce police, fire or other city services.  Currently, we do not propose any layoffs or furloughs.   

Second, we are continuing with as many capital projects, including roads, as the budget will allow.  Priority is being given to projects identified before the 2000 sales tax vote.  Included, is the completion of the MAC expansion – which includes the second community swimming pool.  It also includes several road projects, like the continued planning, design, right-of-way acquisition and widening of Covell.   

The question taxpayers are asking is what distinguishes Edmond, Oklahoma from other communities that are facing layoffs, furloughs, and reduced city services?  Several decisions some made recently and some made more than a decade ago, have helped Edmond, Oklahoma in this time of economic uncertainty.   The soundness of our electric utility, Edmond Electric, is top of the list.  Edmond Electric provides rates to Edmond, Oklahoma residents at a lower cost, is basically self-sufficient, and gives us the ability to add needed revenues to our operating fund, and to support entities like the Edmond Economic Development Authority. 

Also critical is the cost-cutting measures of city staff.  Every department, from Public Works to Police, cut costs.  No new positions were added.  Our finance director, Ross VanderHamm, met with each department.  They were asked to reduce their budgets by 7 %.  They did – by cutting or delaying projects, by trimming expenses again, and by focusing on customer service. 

Another big factor was the City Council’s change in how Edmond, Oklahoma pays for ambulance service.   Like other Oklahoma cities, Edmond, Oklahoma now has an opt-out feature for ambulance service.  It saves money for residents, and eases a great burden on the city’s operating account. 

Our budget is dependent on several factors – all of which could change this precarious balancing act.  Top city management, on their own initiative, declined any pay increases.  As Edmond, Oklahoma works to reach new contract agreements with the three unions representing police, fire, and employees, these top leaders are setting a good example.    Our tentative budget has a 0% increase – which requires no pay increases for employees. 

Another crucial element is the leveling or increase in sales tax collection.  Last month, our sales tax stayed even with the prior month.  Hopefully, we will see these numbers stay even.   

City council continues to prioritize those projects which bring matching funds.  We continue to work with Oklahoma Department of Transportation and Oklahoma County for increase road funding.  We are working with the YMCA to reach agreement for additional private funding for the MAC expansion.  Our public art fund is only spent when there are matching private dollars.  We continue to partner with our Edmond Public Schools, Francis Tuttle Career Technology and University of Central Oklahoma on projects ranging from economic development to educational training for employees. 

Most importantly, it is our Edmond, Oklahoma residents that have made this possible. You listen when we ask you to shop Edmond, Oklahoma first.  You act when we call for volunteers to work on our city parks.  You give tirelessly to our boards and commissions.  You tip the balance in our favor.   You make Edmond great. 

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Posted: May 27, 2010 http://www.edmondok.com/government/mayor/messages