City approves $55.2M budget, COLA increase

The Sallisaw Board of City Commissioners on Monday approved a budget of more than $55.2 million for Fiscal Year 2024, and also gave the green light to increasing employees’ cost of living adjustment from 2% to 3%.

During a public hearing at the commissioners’ regular monthly meeting, the board got a final look at next year’s budget which included estimated revenue from governmental funds totaling $32,129,964, and $4,777,219 from governmental special revenue funds. In addition, the budget included $42,539,501 from proprietary funds (Sallisaw Municipal Authority and Sallisaw Economic Authority) and $128,200 from fiduciary funds for total revenue of $79,574,884. However, transfers and adjustments from fund to fund totaled $24,373,247, which were subtracted for an actual city budget of $55,201,637. The city commissioners then approved and adopted the budget for the period July 1 through June 30, 2024.

The budget will now be submitted to the State Auditor’s office for final approval.

In addition, the commissioners approved an increase from 2% to 3% for the FY24 cost of living adjustment (COLA). This increase was made possible because after the city commissioners approved a 2% COLA for all city employees during the May budget discussions, it was learned that the FY24 workers’ compensation premium will be $96,554 less than budgeted. That allowed the increase from 2% (estimated at $183,000) to 3% (estimated at $274,180), which will be effective with the first full pay period in July.

With the annual housekeeping items necessary for the final commissioners’ meeting of the fiscal year, Monday’s agenda was the largest of the year. Much of the items consisted of approving and/ or renewing agreements and contracts.

For the period July 1 through June 30, 2024, the commissioners:

• Renewed the city manager’s contract at an annual base salary of $130,000.

• Approved a mutual aid agreement between the city and Sequoyah County Sheriff’s Office.

• Renewed an agreement between the city and the Sallisaw School District to provide up to two school resource officers. The school district will reimburse the city $70,348 (50% of the cost) in quarterly payments for the SROs.

• Renewed workers’ compensation insurance coverage provided by the Oklahoma Municipal Assurance Group with an annual premium of $277,480, and approved using $50,000 from the OMAG escrow balance for FY24.

• Renewed a sales tax agreement between the city and the Sequoyah County-City of Sallisaw Hospital Authority, an allocation Skelton said would be more than $700,000 to the hospital.

• Extended an agreement between the city and Thomas Hanning d/b/a T3 Aerosports LLC to provide Fixed Base Operator (FBO) services at the Sallisaw Municipal Airport. The agreement includes annual compensation to Hanning of $75,000.

• Renewed an agreement between the city and Lahoma Jones for Brushy Lake Camp Host, with annual compensation of $8,700.

The commissioners also conducted a public hearing to determine if a structure located on property at 403 N. Hickory Street is a public nuisance. The owner of the structure and property told the commissioners that a homeowners insurance settlement has been finalized, and the owner will request a permit to demolish the structure. The commissioners declared the structure a nuisance, and the owner was provided an additional 30 days to abate the nuisance.

The commissioners approved rezoning eight lots of Redbird Smith Estates from Residence District (R-1) to Residence District (R-2) so that the Housing Authority of the Cherokee Nation of Oklahoma can build multi-family dwellings in the subdivision located at 206 J.T. Stites Boulevard. The Sallisaw Planning Commission reviewed and approved this request at its June 6 meeting.

The commissioners also approved replatting Sallisaw Feed Mill by Aviagen North American in order to expand the current facility located at 300 Drake Road. The replat was previously reviewed and approved by the Sallisaw Planning Commission.

Following an 18-minute executive session to discuss negotiations concerning employees and representatives of employee groups, the commissioners approved a collective bargaining agreement for Fraternal Order of Police Lodge 148.

Consent agenda

The commissioners also approved a lengthy consent agenda that included many annual housekeeping items, including:

• Mayor Ernie Martens reappointed Debbie Bartel as the city and county representative to the board of trustees for the Sequoyah County-City of Sallisaw Hospital Authority for a one-year term.

• Renewed an agreement for juvenile court between the city and the Oklahoma District Court serving Sequoyah County.

• Renewed a lease agreement between the city and MU Nutrition Services of Muskogee for the senior citizens complex located at 115 W. Redwood, which is within the city park.

• Approved a lease agreement between the city and Sallisaw Lumber Company for property.

• Approved an agreement between the city and Sallisaw Main Street for the promotion and development of downtown businesses.

• Approved an agreement between the city and the Sallilsaw Chamber of Commerce for the promotion of economic development and tourism.

• Approved a contract between the city and the Sallisaw Improvement Corporation for economic development services.

• Approved an agreement between the city and the Boys & Girls Club of Sequoyah County.

• Approved an agreement between the city and KI BOIS Community Action Foundation for transportation services in and around Sallisaw.

• Approved a lease agreement between the city and Paul Gambill II for airport hangar #1706, located at the Sallisaw Municipal Airport.

• Renewed an agreement between the city and the Town of Gans for impounding animals.

• Renewed an agreement between the city and the Town of Vian for impounding animals.

• Approved a lease agreement between the city and Sallisaw NOW Coalition for office and storage space.

• Approved a lease agreement between the city and Honeycutt Backhoe and Dozer d/b/a Nathan Honeycutt for removal of lime waste.

• Renewed lease purchase between the city and National Bank of Sallisaw for a 2022 International truck and a 2020 Peterbilt side-load sanitation truck.

• Renewed lease purchase between the city and Firstar Bank of Sallisaw for a 2018 Freightliner truck, a 2020 Altec digger derrick truck and property at 101 N. Wheeler and 103 N. Wheeler.

Staff reports

George Bormann, director of economic development and grant activities, reported that “we’ve had a lot happen,” although because of the confidential nature of economic development, he could not elaborate on much of what has transpired in the past month.

In his report, Bormann praised the contributions to Sallisaw of the late Buddy Spencer, who was the driving force for the Sallisaw Improvement Corporation. “The amount of work and things he’s done for our city probably will never be fully understood. But I can stand her today and tell you that he spent his last day on Earth furthering our community.”

He confirmed that a site visit occurred, and “went as well as it possibly could. We have a verbal commitment from a company that’s going to locate in Sallisaw, which will create quality jobs.”

Bormann also reported that predevelopment meetings are scheduled for this week for companies that are going to locate in Sallisaw. He also said there is a 99% probability of a business that is coming to Sallisaw, but is waiting until there is a 100% certainty.

He also said Sallisaw has garnered the interest of a restaurant developer “that wants to develop multiple units, which is good.”

“I would expect over the next year we’re going to see a night and day difference as we know with ODVA (veterans center), but also with the businesses that are coming on that north-south corridor to completely change the face of that area,” Bormann told the commissioners. “So, really exciting and really fun times.”

Keith Miller, building development director, reported that work continues on the U.S. 59 North project, the swimming pool, the skatepark, the walking trail restrooms, the Main Street lighting project, the airport lighting project and a sewer line project.

Robin Haggard, city finance director, reported that revenues continue to outpace expenses as reflected in the city’s financials. “We’re very pleased with how we’re winding down the year. All departments have done really good,” Haggard said. “As far as sales tax, it still remains positive for May. For May, the sales tax was $665,000, and our use tax was $67,000.”

Administrative report

In his administrative report, Skelton reported that the Sallisaw Municipal Authority, along with the Tahlequah Public Works Authority, approved the creation of the Oklahoma Municipal Utility Services Association (OMUSA, an Interlocal Government Agency, IGA). The IGA was subsequently approved by the Oklahoma Attorney General. On May 30, the governing board of the OMUSA met to formally kick off the association, adopt a budget, and to elect a chairman and vice chairman. Skelton will now sit on both the Municipal Electric Systems of Oklahoma (MESO) and OMUSA boards of directors.

Skelton said the formation and launch of the OMUSA will greatly enhance the operations of MESO and further public power in Oklahoma.

Grand River Dam Authority (GRDA) is also in the process of finalizing vendor agreements and rate riders for the Advanced Metering Infrastructure (AMI) project. Once this is completed, city staff will begin finalizing the selection of a vendor for the Sallisaw AMI project.

City staff recently had a followup meeting with GRDA customer service personnel to discuss programs that the city and GRDA can partner on for customer education. The city will be able to utilize information provided by GRDA for social media posts. Skelton and his staff also discussed better ways for GRDA to show and explain the Power Cost Adjustment (PCA).

Skelton reported on progress with the backbone feed for Windstream’s fiber line connecting to the city. He noted that the muchanticipated second internet backbone feed from Windstream is now operational. “So now we have two dedicated 10 gigabyte feeds for our internet system.” He said that with separate feeds from the north and south will not only greatly improve speed and reliability of the city’s internet system, but in the event of a fiber cut or outages from other vendors, “we will still have feed for internet and phone systems, so hopefully we have sufficient backup.”

Skelton also reported on other city projects:

• Sallisaw Municipal Authority Landfill Cell 8A. “We continue to work on getting cell 8A ready to bid out. Note that the cost of this cell construction may increase due to a lack of suitable clay on site for construction.”

• The U.S. Supreme Court recently issued a ruling pertaining to “Waters of the US,” i.e., streams and wetlands. “The city attorney believes the ruling will favor us in our Corps of Engineers issue we have at the landfill. Although the ruling may help us, it may also delay Phase II landfill expansion as the Corps reviews its policies and procedures related to the ruling. Also, the Corps may delay issuing any jurisdictional determinations while this is under review.”