City manager unveils ‘flat,’ $53M budget

Yukon city employees would receive a 3% cost-of-living increase, along with step
raises under a proposed $53 million budget reviewed by the city council Wednesday in a special meeting.

City Manager Jim Crosby described the proposed $53,261,169 budget as “flat.” It is up only slightly when compared to the city’s 2018-19 fiscal year budget.

Crosby said the proposed budget, which will be considered by the city council during their June 4 meeting, includes a net increase of one position, although three positions will be added.

Two of the positions are newly created city marshal jobs.

The marshals will be responsible for rounding up persons with municipal warrants.

The third position is a newly created manager’s position for the Yukon Animal Shelter, which is expected to be completed by August, Crosby said.

One position is being eliminated in the public works department and two other positions are being moved within departments.

The moves are being made through attrition.

According to city officials, Yukon has 349 employees. Of those, 241 are full-time.

Crosby said most of the city’s workers will receive between 3.5 and 6.5 percent raises, including step raises, under the proposal.

Negotiations are continuing with the unions representing the fire and police departments, Crosby said. He said he doesn’t anticipate any issues.

Their raises also are budgeted at 3% plus the normal step raises.

Crosby said sales tax continues to be the largest source of funds for Yukon, providing well over 50% of the city’s income.

The budget estimates that Yukon will receive $13,326,608 in tax revenue in 2019-20. That includes $11,307,902 in sales tax.

That number is up only about $78,000 over this year’s projected revenue.

With only one month of the fiscal year remaining, Yukon has received $9,287,760 in sale tax revenue. Last year, in June, Yukon received $1,879,137.

Yukon, in May, saw its first increase in sales tax revenue in almost seven months.

Crosby said much of the issue is that Yukon is being challenged as shoppers cross NW 10th Street to shop as more businesses develop in that area.

Sales tax for business conducted on the south side of NW 10th Street goes to Oklahoma City.

Crosby said the issue is not going to go away, and he doesn’t expect to see significant improvement in the sales tax numbers for Yukon until an interchange that would give access to Frisco Road from Interstate 40 is developed.

Work on that interchange is expected to begin early next year, but will take about 18 months to complete.

The one financial bright spot, Crosby said, is the city’s use tax receipts. They are on the rise.

Use tax is charged against items that are bought online or are purchased elsewhere and brought into Yukon for use.

However, Crosby said it can fluctuate significantly.

“It’s been very good so far,” he said.

Meanwhile, he said 83.5 percent of the expenditures for the proposed budget involves personnel, while providing services equals about 13 percent. The remainder of the funds are used to purchase materials and supplies.

Most departments will have budgets that are static.

The police department will continue to add to its fleet of vehicles. Those will be funded through the Public Employees Sales Tax account.

However, no other major purchases are anticipated next year.

The city has three PEST accounts, one account each for police, fire and general employees.

Each account transfers $1 million to the general fund.

Other sources of funds include about $1.1 million from franchise revenue; $332,000 from fees; $871,800 from court fines and forfeitures; $79,000 from use of property such as pool fees and the rental of city-owned facilities such as the Dale Robertson Center and the swimming pools; and $431,000 from special revenue.

More than $4.9 million in revenue will be generated through management transfer fees, and $5.1 million will come from internal transfers.

The new budget, if approved by the council, will go into effect July 1.

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