The Tulsa City Council is considering a rainy-day fund that would bank revenue generated during good economic times to avoid budget cuts during lean periods.
Implementation of the measure would require a vote by Tulsans to amend the city charter. The council is expected to decide on the measure by April.
The proposal outlined by council member G.T. Bynum would fill the fund when general fund revenue exceeds the previous year’s collections.
All revenue above 5% growth would be allocated, with 50% going to the rainy-day fund, 25% to capital and one-time expenditures, and 25% to any lawful governmental purpose.
The rainy-day fund would be capped at 10% of annual general fund revenue.
The council could use up to 50% of the fund if the city finance director certifies that revenue for the next fiscal year is expected to be less than the current fiscal year.
Council policy administrator Jack Blair said if Tulsa had such a plan in place for the past 14 years, it could have avoided $10 million in cuts recently made in the fiscal 2010 budget and still had $12 million in reserve.