Tulsa World: Tulsa to dip into reserve funds

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Tulsa to dip into reserve funds
Mayor Taylor says a shortfall of $3.5 million in the general fund is now being predicted.

By BRIAN BARBER World Staff Writer
Published: 2/11/2009 2:22 AM
Last Modified: 2/11/2009 3:39 AM

Mayor Kathy Taylor said Tuesday that the city will dip into its emergency operating reserve to help cover what is now projected to be a $3.5 million general fund deficit at the end of the fiscal year.

During her briefing with the City Council, Taylor also revealed that the city's two pennies of sales-tax revenue that go into the general fund were 10 percent less than budget projections for February.

Tulsa received $12.9 million this month from the Oklahoma Tax Commission, compared with the $14.2 million that had been expected.

The revenues were collected during the typically lucrative Christmas shopping period of Dec. 16 to Jan. 15.

"We are not in crisis mode," the mayor said. "But our city is starting to feel the impact of the economy that other cities have been coping with for some time."

Councilor Bill Martinson said the numbers are making him nervous.

"If we keep seeing significant drops like this, we're going to be in serious trouble," he said.

Revenues were actually flat compared with the same period the previous year, but officials had budgeted a 10 percent increase because of the depressed figures stemming from the December 2007 ice storm, Finance Director Mike Kier said.

The city's sales taxes had been performing strongly, exceeding budget projections until January, Kier said.

Last week, the mayor told the council that the city would realize a $2.7 million general fund deficit at the end of the fiscal year June 30.

But Taylor said Tuesday that additional expenses will add to the total.

They include $350,000 for more salt and sand to treat the streets; $1,074,000 to implement the city's police contract offer; $1,123,000 to put into effect the new firefighters' contract; $45,000 in utility expenses for Gilcrease Museum; and $345,000 in extra worker's compensation medical costs.

Those $2,937,000 in additional expenses will be partially offset by $2,120,000 in savings achieved by conserving fuel, not filling noncritical positions, and curbing overtime and travel, among other methods, Taylor said.

So the shortfall being planned for is $3,553,000.

But there's more. Taylor said there are $1,365,000 in expenses related to the proposed Public Works Department independent audit, the potential costs associated with housing inmates at the Tulsa Jail and additional concessions in the police union contract that could increase the total further.

For now, the city plans to cover the $3.5 million deficit by using $1.8 million in fund balance carried over from the last fiscal year and $1.7 million from the city's emergency operating reserve.

The city traditionally carries a reserve in the general fund of 5.4 percent, or about $13.7 million.

The reserve is down to $11.3 million because of expenses related to the 2007 ice storm, but a reimbursement is expected from the federal government.

Martinson said taking money out of the reserve will put a hardship on the city during the next fiscal year because it will need to replace the funds.

"That will have to come from somewhere," he said. "We can't empty the cookie jar and not make an effort to fill it back up."

Taylor said she hates to tap the emergency operating reserve, but that's what it's there for.

"This is the worst job market the nation has seen in 35 years," she said. "We're being very conservative, and I'm confident we will weather this."

Brian Barber 581-8322
brian.barber@tulsaworld.com By BRIAN BARBER World Staff Writer

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	Report Comment Echos, Tulsa (2/11/2009 6:21:34 AM) Are you kidding me!!! Why is she already snatching money if we wont be short until later in the year?????
	Report Comment Travis, Tahlequah (2/11/2009 6:43:07 AM) Why take money at all from the reserve fund for this year if you are expecting things to get worse in the future? Would it not be wiser to cut back this year so you have the funds available for when things get really tight?
	Report Comment peelumba, (2/11/2009 6:52:15 AM) it's called looking ahead at the realistic numbers coming in, the city is required to have a balanced budget.
	Report Comment Echos, Tulsa (2/11/2009 6:58:48 AM) Well peelumba if they were doing their jobs they would have made necessary financial adjustments and making cuts to ensure they had a balanced budget.
	Report Comment concernedpapa, Kiefer (2/11/2009 7:26:05 AM) Echos what major adjustment would you make that would help balance the budget?
	Report Comment Frites and Mayo, Tulsa (2/11/2009 7:29:18 AM) Yes, Echos, what would you do? Inquiring minds want to know.
	Report Comment Echos, Tulsa (2/11/2009 7:37:54 AM) Considering the winter is almost over I would have only spent 1/2 or $350,000 for more salt and sand to treat the streets. I might consider closing Gilcrease Museum on the slow days. I might consider reducing my assistant staff, even though I might need them. I am also sure there are more areas that could be looked at but I am only relying on the article to answer you question.
	Report Comment Echos, Tulsa (2/11/2009 7:41:26 AM) You know another thing. Taylor seems good at getting citizens to donate time to do some things around the city. Why doesnt she try to get the city citizens to donate time? She could cut some of the labor expenses too.
	Report Comment Echos, Tulsa (2/11/2009 7:52:13 AM) I dont know a lot about running a city, but Im sure she could come up with a lot of ways to reduce spending. After all she really did not have to fly to brown nose Obama for her pet projects.
	Report Comment Bubba, Bixby (2/11/2009 8:11:46 AM) Don't sweat it Kitty, your stimuless check is in the mail.
	Report Comment Travis, Tahlequah (2/11/2009 8:19:26 AM) Taylor could follow the lead of California and make city employees take one or two unpaid days off each month to balance this years budget. Then when you see the work is still getting done you eliminate some positions next year. The city has about 4000 employees so this could save the city about 128,000 man hours in 4 months.
	Report Comment Ric, Broken Arrow (2/11/2009 8:39:34 AM) Tulsa is just use to everything being "too easy", just dip your hand in and pull out some money. Spending money unwisely. That's why it's in the shambles it's in now. Tighten up and bite the bullet like everyone else, save the money. Why doesn't the mayor have someone in her office organize some fund raising opportunities?
	Report Comment miguel, Tulsa (2/11/2009 8:40:06 AM) Using emergency funds is a poor policy decision. Really, the shortfall the city is looking at is not that significant. Some costs can be cut in certain areas. It has happened before. If Taylor wants to use 30% of the emergency funds now, what will happen when tough times really hit Tulsa?
	Report Comment acts1614, Broken Arrow (2/11/2009 8:56:33 AM) I am surprised that no one mentioned the cost of the big move of city hall and all the new furniture and accessories needed for their new home.
	Report Comment Arbythree, Tulsa (2/11/2009 9:39:15 AM) Maybe we should have a garage sale?
	Report Comment Ric, Broken Arrow (2/11/2009 9:53:05 AM) A word from someone who works downtown...someone I know. I want to know why they bought the huge new office building and are building that danged baseball stadium if they are broke. I hope they go down with it all. I work down here. Otherwise, you would not catch me dead in this stinking inner-city pig sty.
	Report Comment Iluvflys2, Tulsa (2/11/2009 10:22:09 AM) I think we need to make sure that the tires have the correct air pressure to maximize miles per gallon. I think all the city employees in the glass castle should where sweaters and the thermostat should be kepted at 65 degrees F. Oh and by the way, a "balanced budget" has nothing to do with balancing spending vs income! What you have is a city that doesn't think they have to revisit the budget but once a year! When has Kathy Taylor had to worry about her spending habits for her personal life in the past several years? We mimic what we know!
	Report Comment concernedpapa, Kiefer (2/11/2009 10:59:21 AM) Echos I like most of your ideas, however I think most of our winter traditionally is ahead of us as far as snow removal and all, I hope I am wrong and your right, I am ready for spring.
	Report Comment Graychin, Eucha (2/11/2009 11:11:02 AM) Grumble grumble grumble. Gripe gripe gripe.
	Report Comment Xenu, (2/11/2009 11:28:05 AM) Fire the police. That'll save us money.
	Report Comment Arbythree, Tulsa (2/11/2009 11:52:05 AM) Gang comment Xenu?
	Report Comment J3SS!CA, Sh0NkA (2/11/2009 12:04:43 PM) I like ur thinking Echo.. U gonna run 4 mayor? :) SMILE*
	Report Comment FS, Broken Arrow (2/11/2009 12:34:15 PM) How about some of the dedicated city politicians stepping up to the plate and doing without a salary for a while. We all know a politician's pay is "X" per month plus all they can steal - try for a month to live off the "steal" part.
	Report Comment focuses, (2/11/2009 5:40:17 PM) At what % reserve is the credit rating of the City of Tulsa lowered? I find no mentioned as such in the article. Thank you.
	Report Comment tfromtulsa, Tulsa (2/11/2009 6:31:17 PM) Did anyone mention the $7.1 million of taxpayers money she gave to BOK for the Great Plains debacle? She was instrumental in having the City of Tulsa added to the lawsuit so she could bail out her friends at BOK, with our money. Money that we could use right about now.

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