Tulsa Eyes Reserve Funds

Tulsa Mayor Kathy Taylor told the City Council last week that the government will have to draw on its emergency operating reserve to make up for a $3.6 million shortfall in fiscal 2009.

The mayor said earlier that the deficit would be $2.7 million when the fiscal year ends June 30. However, additional expenses associated with new labor agreements with police and firefighters brought the total to $3.55 million.

Unbudgeted expenses include $2.2 million to implement the police and firefighter’s contract offers, $350,000 for salt and sand to treat icy streets, and $345,000 in workers’ compensation medical costs.

The $2.9 million in additional expenses will be partially offset by $2.1 million of savings, Taylor said.

The city will cover the $3.5 million deficit with $1.8 million left over from fiscal 2008, and $1.7 million from the emergency operating reserve.

Tulsa traditionally carries a reserve fund of 5.4% of the general fund, or about $13.7 million. The emergency reserve fund is currently down to $11.3 million due to expenses from a severe ice storm in December 2007, but the city expects to receive reimbursements for some expenses from the federal government.

The Oklahoma Tax Commission said recently that Tulsa’s 2% sales tax generated $12.9 million from Dec. 16 to Jan. 15, down from the $14.2 million that had been expected.

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