(Cushing, Okla.) Cushing Board of Commissioners held a special study session Monday evening at the Public Safety Center to take a good look at budget numbers. A slide show was prepared and presented by city staff, City Manager Steve Spears, City Treasurer Tracie Rose and City Clerk Jerrica Kahle.
Commissioners were given an overview of the city’s financial standings, with a breakdown of each Authority.
Topics of discussion were:
FY 2013/2014 Capital Improvement Update
FY 2014/2015 Capital Improvement Requests
Outstanding Debt Overview
Financial Summary Analysis
Revenue Projections
Funds Reserves
Future Projects
Employee Considerations
With over 30 percent projected excess revenue in the city’s coffers, the City of Cushing is in great shape compared to many municipalities. “Other communities would die to be in the shape Cushing is in,” Chairman Joe Manning said.
Because Cushing is in such good shape financially, several projects are under consideration for the 2014-2015 fiscal year.
Commissioners were asked to provide city staff with guidelines as to what projects they are most interested in and how much money to set aside for them. All agreed that although there is a substantial surplus, it would be ideal to have 30% in case of a “rainy day.” Doing so would still allow funding of other projects as well as unforeseen projects that seem to come up every year.
Projects discussed included:
Sewer – shortening time frame to complete ongoing projects
New Wells – one is already in the works
Park Improvements – paint, new equipment and possibly creation of a new park
City Hall Remodel – already in the works from 8/10 sales tax revenue
Streets – create designated funding for continued street improvements
Airport – funds already exist to extend runway south
Fire Truck – already in the works
Ambulance – budgeted item
Signal Light Projects – already in the works
Unfunded Retirement – over $4.8 million
Once the items that already had some plan in place were removed, two were at the forefront – designating specific amounts of funding for street improvements and paying down unfunded retirement.
Staff pointed out that paying down unfunded retirements would mean a difference of paying 12% vs 20% – thus saving the City money that could be used elsewhere.
A lively discussion ensued toward the end of the meeting in regard to employee considerations. Spears stated the city has lost “quality employees” to the oil industry and asked commissioners to consider designating funds toward cost of living increases, market adjustments for recruitment and retention and merit raises based on performance.
Commissioner Terry Brannon voiced a strong opinion about merit raises, questioning whether or not department heads are willing and capable of doing proper evaluations.
Spears said he and Tracie Rose, would help with the evaluation process if and when needed.
Brannon argued that neither Spears nor Rose had the time that would be needed to take on the task – pointing out that Rose is only a part-time HR person and Spears already has plenty to do.
After much discussion, an agreement was made to place emphasis on cost of living raises and market adjustments/recruitment and retention pay.
No decisions were made at the study session, but was viewed as being very informative and beneficial as the budget process continues.
“This is the best presentation of the budget I’ve seen,” Brannon said.
Meetings and study sessions are open to the public. The next regular meeting of the Cushing Board of Commissioners is slated for Monday, May 19th.
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