City finances are ‘right on track’

With so many concerned about inflation and making ends meet, there are very few concerns about Sallisaw’s budget.

In a nutshell, the city’s “numbers are looking good,” Finance Director Robin Haggard told the city commissioners at their monthly meeting on Monday.

Haggard

In her financial report to the commissioners, Haggard said sales tax receipts for February were “up a little from last February” at $668,000, along with $97,000 in use tax.

“We’re seeing sales tax remain very consistent and steady for probably the last five years or so,” Haggard determined.

At the end of February, the city’s Fiscal Year 2024 budget goals should be at 67%, indicating revenue and expenses are in line with projections. Haggard reported general fund revenue is at 68%, while expenses are at 66%.

“So we’re right on track in the general fund,” she assured the commissioners.

For estimated revenues, Haggard reported that taxes are 72%, telecommunications are 67%, sanitation and landfill are 80%, electric service is 68%, and water and sewer are 78%.

“So every one of those are above the 67% mark, and our overall expenses are 50%. So they’re all coming in under, and that’s what we like,” she said. “We’d like to be able to pad our budget even more, but those numbers are looking good.”

The city’s financial staff has begun preparations for budgeting for Fiscal Year 2025. An important part of that process is the annual budget retreat, which is scheduled for May 2122.

In other business, the city commissioners approved:

• Official election results for Feb. 13, which were received from the Sequoyah County Election Board. In that election, Josh Bailey was re-elected as Ward 2 commissioner, and Brad Hamilton was elected as Ward 4 commissioner. New terms for both commissioners begin at noon on April 15.

• Audit engagement letters with FSW&B, CPAs of Stillwater, for fiscal year 2023 audit services and landfill calculations.

• A purchase order to DBT Transportation Services of Houston in an amount not to exceed $102,000 for replacement of the Automated Weather Observing System (AWOS) at Sallisaw Municipal Airport (SMA). AWOS provides data about ceiling and sky conditions, visibility, temperature, dew point, altimeter setting, and wind speed, gusts and direction. The system was installed in 2023, but sustained a lightning strike in January, which “pretty much totaled the system,” said George Bormann, director for economic development. The city received a $70,885 insurance settlement, which Bormann said was “all but the $10,000 deductible.” City Manager Keith Skelton added that the city has an additional “$20,000 that we can recover in depreciation once the project is finished.”

• A purchase order to Barry’s Electric, Heat and Air of Sallisaw in the amount of $1,800 for electrical work on the AWOS at Sallisaw Municipal Airport.

• A change order in the amount of $9,000 to R.W. & Son Pipeline Construction for the sanitary system improvements in the Country Club Addition.

• A recommendation from the Sallisaw Airport Advisory Board to renew Tom Haning’s Fixed Base Operator (FBO) contract for fiscal year 2025. In its annual review and evaluation of the airport’s FBO operations, the board said Haning “continues to exceed expectations,” and that “he and his operations add value to the Sallisaw Municipal Airport.” Skelton expects formal approval of the contract at the June 10 city commissioners’ meeting.

• The Sallisaw Planning Commission’s recommendation to rezone property on East Turner Avenue, located at the west end of Jay Reynolds Park, from Residence District (R-2) to High-Density Housing District (RT-2). JMBailey Properties LLC intends to construct up to 20 single-family homes on the property. The planning commission approved the project to be completed in two phases. “I appreciate you working on that part of town and doing something good,” Mayor Ernie Martens told Commissioner Josh Bailey, president of JMBailey Properties. “That’s going to be great. I appreciate it.”

Among other reports presented to the commissioners, Skelton addressed current and future projects for the city:

• The police department roof is completed, and the process of closing the project has begun.

• The Highway 59 North project is proceeding well. Haggard has submitted material claims to the Oklahoma Department of Transportation for reimbursement of materials to the Sallisaw Municipal Authority for electric lines, poles and fiber materials purchased for that project, which was “in the neighborhood of just over half a million dollars that we submitted for reimbursement.”

• The city is proceeding with designs for the Lenington water loop and the McGee lift station replacement. The water loop project is associated with a $600,000-plus Oklahoma Water Resource Board (OWRB) grant, and the McGee lift station project is from the city’s capital improvement funds.

• Request for bids for tree removal and easement cleaning are out for the South Cedar electric line project. A Department of Commerce grant is in place for that project, “so if we’re fortunate, we’ll get a lot of that project paid for with grant money,” Skelton said.

In his administrative report, Skelton told the commissioners:

• City staff has remained very busy with projects and getting ready to enter the budget process for FY 2025. Various meetings are scheduled throughout March to review health insurance and utility rates.

• The city has issued 251 business permits for businesses that have registered with the city as doing business inside the city limits. “This provides us with very valuable information as we will soon begin to sort the businesses into types for more economic development data,” Skelton said.

• The city worked with the American Legion Carnie Welch Post 27 on the relocation of flag poles and new military flags at the cemetery, a project that was completed in mid-February.

• City staff continues to review the Grand River Dam Authority’s upcoming rate adjustments. The SMA board, city staff and the city’s rate consultant are scheduled to review electric, water and wastewater rates at a special meeting on March 26.

• A request for bids has been issued for the city’s Advanced Metering Infrastructure (AMI) project, with opening of bids scheduled for March 29. The city remains in consideration for an OWRB grant.