City Council - Regular Meeting

Calvary City, Broken Arrow, Council Meeting to Order. Communication by Tom Cook.

There you are. Lord God, we seek your glory and honor and we spread your holy name for this opportunity to be here today. Father God, in James 1.5 your word says that if we seek wisdom that you will give it to us. So we just seek that wisdom as we go through this budget. And Lord God, I just personally want to say that you have blessed my life by allowing me to be a part of this team that serves you by serving the public. In Jesus' name we pray. Amen. Amen.

All right, roll call.

Pickle. Here. Green. Ford.

Here.

Parks. Here. Wimpey.

Here, please stand and join Councilor Pickle for the Pledge of Allegiance.

Attention, salute, play.

Council Business 5A, Presentation, Discussion, and Possible Direction Regarding the Revenues, Expenditures, and Budgets of the City of Broken Arrow.

Mayor, members of council, members of the leadership team, administration, it's great to be here today. Obviously, by statutory, one of the most important responsibilities the council members have is approving the spending plan. for the upcoming year and this is the opportunity to begin those discussions and as you know for the last at least eleven years we've actually come together in a budget work session where we review the proposed budget plan from essentially administration with the goal of reviewing all the expenditures and then following the statute by actually having a public hearing at the first meeting in June, followed by the possible adoption at the second meeting in June. And so this is the workshop we'll have. You have everyone here today. As you've seen from the budget agenda, several departments, as in the past, are also going to give presentations. This is the council members to ask questions, make changes, give direction regarding the proposed expenditures If there's something that you have more questions about, if there's something you'd like to add, this is the governing body's opportunity to do so with the specific intent of sometime next month adopting the budget. So let's go to the next slide here, if you will, please. So this is the budget work session agenda for today. Very similar to... what the council has seen in the past. There are a couple of items in there that are new, specifically the presentation of the 2026 bond, proposed bond package schedule. That's something brand new. Every year in the past, it's been a part of the discussion. Tonight, when we get to that, we're going to actually have some suggestions for the governing body then we can get your direction to go forward. And so what I'd like to do right now is the council has their book. I'd like to ask you to go through a couple of pages in the executive summary, just things I wanted to point out to the governing body before we go through the slideshow. So if you'll turn to page number two. And the council members know this because you approve it every year, but as just a quick reminder, this budget session is not being shown live, but it is being taped. So everyone that has interest in learning about the budget process, and part of the in-depthness of today's presentation, we're going to go in a little bit more into depth because during the discussions we had during the bond package session, After every discussion about the package, almost every meeting turned into other things that were going on within the community, including the budget process, how the council determines the proposed expenditures, and things of those natures. So we're probably going to go in depth in several different areas. So the first thing I want to mention on page two is at the bottom, is that obviously when you have a vision for how to continue to make a great city, you have to have a strategy. And the strategy essentially for the last decade has been to focus our expenditures really around five or six areas. And they include public safety services and the community's overall well-being. We know that. If you don't have a safe community, it affects, like a pebble in the pond in the ripples, it affects every other aspect of your city. Secondly, is economic development focused on growth and prosperity? There is a negative connotation to some people about the word economic development, but economic development isn't just about primary jobs. It's about secondary jobs. It's about quality of life. It's about parks and recreation. It's about safe streets. It's about... community development, additional housing, how we move things through the economic development, community development process. Third is innovative municipal government operations. We're blessed to have a leadership team that is constantly looking at better ways of serving the citizens. And I've used this example several times is that 100 years ago, city councils and administration provided services to the community They just did a little bit differently than we do today. And as you've seen in this budget, there are some proposals that actually can even take our committee to the next level in terms of the way we serve the citizens. And so always looking at the best way to serve our citizens with the dollars we have is what I challenge the directors with every single year. Number four is physical sustainability and strategic public investment, including the capital improvement program. I mean, obviously, in a city that has such volatile revenue sources as its primary source sales tax, I mean, Cindy and her team and myself, Norm and Kenny, we don't just look at one year. We look out for multiple years and the decisions we make because once you make that decision, you lock it in. It becomes perpetual, and you need to look at what that's going to cost down the road. And as we always talk about, trying to be physically conservative. And then finally is transparency and communication. As the council members know, because you're out of town probably as much if not more than the staff members are, everyone talks about the transparency that Broken Arrow has. we do focus on trying to let our community know what's happening because we think they deserve to know what's going on at City Hall and around the community on the things that we can talk about. And I think we do a great job of that. And so when we build the budget, I'm always looking at this. How is this going to accomplish one of these five goals? keeping our city safe how to drive private investment which generates the revenue we needed which is not a bad thing because it pays for the city services our citizens expect how to better serve the citizens make sure we have finances available for today and tomorrow and then telling the public all the things that are happening so with that would you turn to page five so in the middle of that page I talk about currently the city has 1,024 authorized positions consisting of 915 full-time, 12 part-time, and 97 seasonal employees. Of these, 726 positions are assigned to the governmental funds. including the police and fire personnel costs, continue to represent the largest share of our operating budgets, accounting for approximately 68.5% of the general fund, 85.8% of the police sales tax fund, 89.6% of the fire sales tax fund. So I think it's important that Our employees are the number one resource that we have in this community. They're the ones that the council basically expects to be out there 24-7, 365, representing the city. And I'm very proud to say is that the council has been extremely supportive when we needed to add positions to make sure we meet the expectations of our citizens. But I think it's also important for the committee to know that there's a cost associated with With our budget, I mean, our budget this year is proposed to the council is just over $487 million. That's not all personnel costs. A majority of that is for capital improvements because really under Kenny Schwab and Charlie Bright's leadership, we are driving projects. not only just in the capital improvement program, but in the utility department as well with Tim Robbins' help, because that's what council said, is that we want these projects, we want them to get into construction as quickly as possible. And so I'm proud to say is that this budget really is heavily laden towards implementing the projects that the citizens have approved, that council has approved, to make sure that whatever the citizens have approved, that we actually get to construction as quick as we can. so next item is is on page 11 so in the first pages like 9 10 and 11 it talks about the status of different economic development initiatives what I want to mention to the council and I brought this up as a result of a comment of counselor green a few meetings ago is when we're looking at developing our community The innovation district, all of the basic infrastructure is essentially complete. Norm and I had a meeting with an aerospace prospect yesterday that's very interested in Broken Arrow. We already have one. Obviously, really the two things left to do in the Arrow Forge is a bridge and road connecting Norfolk to Aspen. then our obligation to put a bridge to the west to the victory property who we purchased that land from them the voters approved that and we're going to hold that until such time as they decide to develop the property to the west as we look at the areas the next area that needs to be developed we started discussions and I wanted to highlight we've started visioning highway 51 area there is over 1,200 total acres of that actually could be developed in our community. And so that's going to take a lot of visioning and that has started with looking at actually the infrastructure that we've needed to support specifically water and sewer and so we started discussions internally and with the EDC and the council is going to start to hear a lot more about about the development of the highway 51 area as we move into the future and as we transition away from Arrow Forge also as the amphitheater comes online the development with the NSUBA But this area, high 51, is going to become very, very important to our community because it is the area that has the potential to bring more manufacturing industrial, which are the higher paying primary jobs we need to help drive our economy.

On the next page, page 12.

Also, under economic development, I wanted to let the council members know is that we have a great tourism board, and I really think that the decision that they made and the council supported to create the small incentive for the films is and will pay dividends. And I just wanted the council members know is that we are going to be looking at other opportunities to actually to try to bring more films and basically film festivals. We're hoping that the film festival we have in October actually will be the first of something that happens annually that's going to draw more people to our community. And so there are other opportunities that actually... are out there that we could take advantage of. It's just a matter of determining what our strategy is. And I know that under leadership of the board with Councilor Ford, they're talking about trying to take advantage of those strategies with the ultimate goal of bringing more people into our hotels, using our restaurants, and helping support our economy to help to make sure that we continue to be a place that's, number one, business friendly and generating the revenue we needed to be able to pay for city services. Next on page 13, included in the SDCI is $150,000 to conduct an airport feasibility study. And that's something that I mentioned to the council back in December. Obviously, it generated a lot of interest when that was brought up, and that's something that I still need direction on the council. That's something we would like to proceed with. I just want to be real clear for those that will watch this is that we're not talking about building a Tulsa East or a Tulsa International East. There are many communities in the state of Oklahoma that have municipal regional airports that support business and industry. and several council members have asked what would it cost to actually purchase the land, where would that be, what would it cost to put the infrastructure to get to the site, build a runway, build a terminal, and actually build the runway itself to support the business and industry that actually have planes and use those planes on a regular basis. Working with Charlie Bright's team and Kenny Schwab, we've come up with a number that we believe is really good, $150,000. It'll take about a year to come up with the basic decisions that council would need to be able to make if you want to move on to the next step. And that includes what type of revenue could be generated from an airport. as well as what it would take to make the improvements if council should decide to go forward in some fashion.

I know we've worked on an effort before, but did we ever actually do a study or we just had a discussion, which was 20, 30 years ago or something like that?

There's a study from like 1980, 81, something like that. So that's the only real study that has been done.

Okay. I didn't know if there was any info that would still be relevant. relevant I know cost wise nothing would be relevant but if there were just any environmental things or anything in the former study that could be helpful.

Farhad mentioned that Mayor and so as a part of this review we're going to get that study to the consultant that council selects and they're going to review it for the very things that you just mentioned to see if there is anything that is still relevant. Obviously We can't meet the 30-mile requirement to receive federal funds when we talked to the folks at the state aviation office. And so their recommendation was if you decide to proceed with it, try to make it as close to your city as you can because obviously there's advantage of that. And then if you do build an airport, then it's easier to work with your federal delegation to try to get it added to the list of airports within the state that could receive funds. both capital and operational funds. So we're going to do that if council approves it in the budget. So I wanted to mention that.

Yeah, I was just going to say, yes, but the main thing that we're looking at at that time too was any property that would be available, you don't want to mean to do that. And that would mean that you need to kind of do it pretty soon. We said then it needed to be pretty soon because, you know, you get a neighborhood or two built, you're gonna run into a lot of problems so the sooner we can get on to it if we're serious about it the better it was and that's what it was back then it was and then it was in the southeastern part of the city somewhere so obviously I think possible locations would be to the east exactly where

That could have to be determined in some recommendations. Now, Charlie had a really good notion about this. They're probably not going to pinpoint that says this lot right here or these lots. They're going to come up with a swath of an area that has that potential because some people will think, well, immediately we're going to go out and buy that property. I mean, this is still several years away at a minimum, but before we can even go forward, you know, council needs to look at a study that shows potential road map for doing so.

You know, Mid-America has, prior, they have a nice airport. We toured around just in the last few months, and it's really nice. It's a small airport, but all the businesses, it really incorporates all of that into that.

That's what we're talking about right there, to support the corporate jets that fly into our community. Also, there's no hangar space. From what I understand from talking to a number of pilots, And a number of businesses, um, many have to have to house their planes in Northwest Arkansas. That's the closest that they can get. So really is that, you know, this is just a study as I, as I was trying to indicate back at the end of the year. Um, it's just a study that gives council the option to be able to say, if you don't do it, here is the justification why you chose not to go forward. Because there are a lot of people in the community that I know that have talked to council members, uh, the chamber's been hit up about it as well. So this is an opportunity to determine if it's something to be viable for community. It may not be today, but certainly if there's an opportunity to go forward, now you have a basis on which to build upon. Okay, page 20, just real quick. did as I mentioned about personnel total I wanted to specifically talk about Bama currently has 290 98 individuals including 295 full-time and three part-time staff I did want to mention that in the second paragraph the rate model calls for adding some additional people however I am recommending that we defer adding additional people in Bama just because, obviously, adding additional people, there's a need to adjust the rates for that. And to me, I think that this is the year that we could defer adding any additional people. There's been some recommendations to Bama. to actually retitle individuals, turn open positions into other positions that would better serve the entire organization, but specifically Bama. But I think this is a year that we should hold off on actually adding any additional personnel. As far as the rate model, my plan is that basically as a part of the work session that we will have sometime in the middle to late part of July, is we will actually discuss and council will finalize the proposed budget. Actually, I have a proposed rate study, but there's a couple questions that I want to finalize. I want to get that to council, time to look at it, and then make the decision at the work session probably sometime towards the end of July. The next item is page 22. So at the bottom of page 22, what got lost in the airport was the fact that I also mentioned, and the council has talked about this individually, and as I've discussed it with you, there is a need to actually do a study for both a transfer station and a green waste disposal site. It is extremely important to begin those discussions. Obviously, the fact that we have to transport our waste to the west side of Tulsa County, there's a huge operational cost, the wear and tear. on the trucks. Obviously, number one, the wait time. We have to wait some time for disposal and just other operational costs. And so I've asked Jerry to work with also Charlie's team and Kenny to come up with a number necessary to do that. And so as a part of the upcoming fiscal year, we're going to present to Bama the findings from the study. So then... As we look at building the future rate models, that's something that the authority can decide if we want to move forward with the transfer station and the greenway site. So this begins that process. And that's all the comments that I have. I mean, my executive summary, as always, gives you a very in-depth look at all of those five areas that I mentioned that we try to focus on. I know I usually get questions from council members after the workshop, after you've had a chance to review it a couple of times. I'll be glad to answer any questions. Otherwise, Mayor, I'd like to move forward with the presentation. Okay. so the council members hear this every single year because I just to be consistent is our budget is it's a policy document it's a financial plan it's an operational guide and it's a public communication device it's available for our citizens to see if they have questions and we have the tool that actually allows them to go in if they take the time to look at our expenditures what we've spent where we are with respect to our budget. And so I'm very proud with the job that finance does and all the departments in being transparent with regard to the open communications. But really, it's a policy document, and we follow it throughout the year because the expenditures that we bring to you are what council approves sometime in June for the next 12 months. So this is just for full transparency. As I mentioned earlier, that is the state statute language essentially that we have to follow. And as I mentioned, is that we're required to have a public hearing. And from that public hearing, the mayor will call for comments. And we've had some in the past years. then we have a second meeting to where we met there's one final call for any discussion and then council adopts the budget okay the municipal budget serves as a blueprint for the following purposes review and confirm the priorities of local government determine our service levels based on those priorities and sustainable resources available and thoroughly plan our program of work for the implementation within the operations of the fiscal year so once again all the departments work within the budgets the council members have approved and we work to make sure we provide those those services that within those five areas that that we've said is what is our area number one areas of responsibility I talked about those earlier at the beginning of my executive summary of here, is that when I look at these every single year, I sit down with Kenny and Norm and I go, does there need to be any adjustment in what the priorities need to be for our community? I think that's very, very important. I can tell you, you know, our focus is to make sure that if there are requests for funding, it doesn't really fall in, to me, it doesn't fall in one of those areas that are up on the PowerPoint. Okay, as I mentioned, the budget executive summaries pages, section one, pages one through 24. Now we'll go into the FY2027 budget considerations. This is really more for the public than the council members. We operate on a July 1st through June 30th fiscal year, not a January through December. Now, some of our contracts actually are calendar year, but for the most part, everything works off of a fiscal year cycle. The budget book, which I don't know if this is the thickest one we've had so far, but I can tell you that it does include the executive summary, the proposed revenue and expenditures for each fund, and we have well over 30 funds, proposed department budgets, special funds, proposed expenditures, revenues, and fund balances, the street maintenance plan. Just a reminder is that probably about the dedicated sales tax street maintenance went into effect I believe at the beginning of 27th January around 2017 Tom and so since then the council has said every year is a part of the budget that they want to see what how those funds are going to be spent now most years if that money is combined with funds from the general obligation bond to actually develop the total program of improvements we're going to make for actually, you know, whether it's a street maintenance program or it's a complete reconstruction. But each year the street director, Rocky, for many years, and now Tim Wilson come before and present that to the government body, and they will do so tonight. Next is the proposed FY2027 general obligation bond sale. And what I was going to share with you tonight about the proposed bond bond package is we're not asking for counsel to make a decision tonight is tonight Kitty and Charlie I didn't see Shannon DC Shannon okay Charlie is they're going to present the proposed plan to you and explain the document in itself it's got various parts to that And then we're actually going to just walk through it just generally. And then we're going to come back at the work session in July and ask council to actually review it in a little more detail and give you more time to look at it. Because obviously there are 91 projects that have to be programmed in, keeping in mind that really what matters is the first two or three years. And then adjustments can be made based on the circumstances of that year. But the reason I want to hold off is, one, I want to give council more time. And secondly, is with the state law with regard to the homestead and the actual limiting of reducing the percentage from five to three and then three to one for whichever category you fall into, I believe that that law is going to extend out the sale. And I'm not clear yet whether that could be from from 10 years to 12 or 10 to 14 years because we're not going to, my recommendation, I know the council will support this, we're not going to change the rate to capture the funds we're not getting from the loss in the homestead because then that's a bait and switch to our citizens. And so we'll have to extend out the actual number of years of sale and we'll explain that to the community. You know what that means for 2036 is that there'll be an opportunity for council at the time to go back to the community. It will just be a smaller cell because you still have several years left in the 2026 bond. So I want to be able to come and say, okay, I know for now that it is this many years beyond 10 and then, and then that way, uh, Kenny's team can actually program that out. They've looked at it tentatively. But I want to make sure I know exactly what it is. Now, I will say that if the actual assessed value of your community comes in higher than we projected, then maybe it is less than if it turns out to be hypothetically 14 years. Because as you know, we sold 10 years and 8. And so there is a possibility if, in fact, the assessed value of our community continues to grow beyond what was projected, then maybe we would be able to sell it sooner and get closer to that 10 years. And then, obviously, this is something that's very important, and that is Oklahoma Water Resources Loan Program. Council, since I've been here, has been very diligent in supporting staff's request to go and borrow money from Oklahoma Water Resources because it's the best source of funding for us, and it pays for major capital improvements. And we always talk about it every year because every year we've looked at somewhere between $20 and $30 million. And so that's why I think it's important to talk about it. And then the manual of fees, there are some suggestions we're going to have this evening, which Cindy's going to share with you. But then obviously, we're not going to ask for adoption tonight. We won't ask for an adoption of especially the rates until after we've had the further discussion at the work session. and we have the actual final impact on what it would be for implementation of utility rates in the fall if council approves anything in the fall of this year. So the four key budget principles that we focus on is estimate revenues and expenditures conservatively, ensure all funds balance, include built-in contingencies for unexpected building up of fund reserves, and focus on long-term financial sustainability. I mean, obviously my biggest concern every single year is we live in a state where we're susceptible to natural forces that are beyond our control. And so having the reserves to weather, no pun intended, a storm is extremely important. Now, some individuals and entities look at those fund balances and see those as important to accomplish their end. I look at it as is that cities are perpetual. We're not a destination. We're not like a train ride that's going from Oklahoma City to Fort Worth. We don't stop. People get on sometimes and people get off. But the reality is that we have to look perpetually at how we fund municipal government, and that's why I always like to mention is the contingencies that we have in all of our funds to be able to address anything that's extraordinary or unexpected throughout the year. So FY2027 municipal budget. As I mentioned earlier, the basis for the recommendation is council's goal of providing great services to our community, address our increasing demands for public infrastructure and public services as a part of a growing community, and maintain Broken Arrow's high quality of life. I mean, that's trying to keep it as real as simple as possible. I love showing this slide. We added it several years ago. The current tax rate in Tulsa County is 8.417, and the details are below. And you can see the breakdown. In Wagner County, it's 9.6. And I wanted to mention that there's a difference. If you look at the bottom of the slide where Tulsa County is, Tulsa County is .367. And Wagner County is in parentheses is 1.55. And of that 1.55, eight-tenths of it is a temporary sales tax that they use for several different items within their county. I believe the quarter or half a cent, I can't remember what it was, to help fund the judgment versus the property taxes for the sheriff's lawsuit. And so that's what makes up their 1.55. And obviously, I bring that up because that was a major deterrent in Proposition No. 8, especially because the decision to actually use sales tax versus property taxes, I do that played into the fact that being over 10%, that's just a benchmark that... A lot of folks, all of us, and council and administration as well, had concerns about. So that's the breakdown for the different counties for the current sales tax rate. Budget challenges, sales tax, it continues to trend flat basically. This is the year we started off the fiscal year. We had several months where it was basically there was no increase. We had at least one month that it was actually below, but fortunately the last three or four months we've actually seen Nice increases in the sales tax as well as the use tax, and so that's a really good trend. Obviously, we're projecting a 1.5% increase in sales tax because obviously anything above that I'd be concerned considering the economy. Inflation, this is the biggest challenge is that everything continues to cost more. for the things that we have to buy or the services that we have to secure or provide. Another item, this was brought up extensively yesterday, was there continues to be a supply chain availability. The lead time that we have to have, the prognostication directors have to do to actually make sure that we have, you know, it's no more just in time. That type of theory is we have to be looking sometimes months and years ahead to get what we need. And then once again, I've said this every year, and I continue to. I know the council understands this. There's just a current over-dependence on sales tax. That continues to be my biggest concern, especially when you look at our sales tax collections. It was almost like a roller coaster. I mean, it just peaks and valleys throughout the entire year. These last two years have probably been the most, I would say, unstable, where the other years it was pretty consistent. Here's the actual graph. It shows you.

There's nothing on August because it was pretty much exactly black.

So you can see October and December, which would have been for September and November, were well below. But fortunately, you can see, you know, January through April, we had some nice percentages, and that's why I continue to promote local, shopping local. That's why I Continue to actually, economic development-wise, our TED team and the administration is constantly looking to actually continue to try to attract more retail and commercial to our community. Our two major economic development projects to the north, actually Travis told me today that they should actually start to deliver stores open for business in September. And then Hackberry Market is not far behind it. So those are going to be major drivers for our community to continue to give folks the opportunity to shop at home.

I don't think that January would be the low month and December would be the high month because of just Christmas shopping and everything.

It all depends on... Let's go back to that, Cindy. Let's go back. Yeah, for December, usually January and February. So you can see January and February were both up.

Yeah.

Because the December is actually through like November 15th. It wasn't even Black Friday yet. Okay. So it lags. Okay.

Okay. So the proposed budget for the entire organization for the upcoming fiscal year is, once again, is submitted to you at $487,039,418. Okay. So the breakdown for this year is for operations, it's right under $195,000. That's a 7.5, just that 7.5 increase over the previous year of 181 million. The capital outlay is 242 million, almost 243 million, which is a 5.2 increase over the previous year of 230 million. Debt service, which is a culmination of And I'll let Cindy explain it, but it's a combination of multiple debt services. So I just want you to talk a little bit about what they consist of.

The general obligation bonds, it's OWRB loans. Also, it's the Hackberry loan that we took, that even though the chief sales tax is paying that loan, it's still a debt service to us. We also have the amphitheater loan. That's all come into place because the capital interest is gone. So that's why it's so high this year.

So that's the proposed budget for the organization is just over $487 million. As I mentioned earlier, total workforce of 1,024, 915 full-time employees and seasonal, 109. Now the general fund, which is obviously... consist of many of the departments that are in here outside of police and fire and also utilities. Bama is proposed at $158,527,205. This includes expenditures, the transfers out, our ending fund balance, and current budget right now in this fiscal year as we're wrapping up, is 153 million 662 215 what's being proposed to the governing body is an overall increase of just 3.17 percent total revenues for fy 2027 including the transfers 120 124 million fy 2027 revenue sources combined are 2.51 over last year's last year's budget Once again, as I mentioned just a few minutes ago, we're projecting sales tax at 1.5% of the estimated actuals and other revenues based on historical data and the current environment. Remember, when we receive our revenues under the decision the public made in November of 2015, when we repurposed the sales tax for the vision, it said that essentially 68% of all revenues... that are eligible go to public safety. So when we talk about transfers in and transfers out, 1% of the sales tax is utilities, and that's transferred back to the general fund. And then once Cindy knows what all the funds are, then she has to make the appropriate transfers to ensure that the police fund and the fire fund get their little over 30% for fire and a little over 36% for the police.

And we do that monthly, but then in December and June, we do what's called a true-up. just in case there was any additional revenues up there. So we make sure it's fair.

Yeah, and actually in the executive summary, early in the summary, it talks about basically the anticipated fund balances in each of the police and fire funds. Personnel services for the general fund make up $23 million. Other services, supplies, materials, so the total operating expenses, $34 million. And why don't you explain the transfers out, if you will, Cindy.

The transfers out is the Bama 1% sales tax. The beta, both general fund and Bama transfers $600,000 into economic development. And the police is the 36.7 and the fire is the 30.7. So the total transfers are $89,800,000. So our total expenditures are about $124,000,000.

so the general fund operating expenses so I listed here for council these are the pages of all of the departments that are in the general fund from the city attorney human resources IT the city manager community development finance general government city clerk municipal court street and stormwater and the parks if you don't let me make one comment in the general government that's one of the high larger departments I mean it's around two million dollars

because that's where we pay some of the insurances for property. It's also our workman's comp. That's where our transfer comes from. So it's just between those two, that's a million dollars.

So I didn't know if the council members had any questions now or between, obviously, June 1st, about any of the departments and what's being proposed for them. Everyone this year was asked, I mean, obviously, I am concerned a little bit about sales tax, and so everyone was asked to go in and to actually reduce their expenditures or to keep them as flat as possible, and I'm very pleased to say that in many cases the departments were able to do that.

Because this year has been the most challenging, and all departments did a great job of cutting back and trying to do just what they needed.

I have one comment, not a question, but I read through this, and I'm certainly in agreement. You've done a good job with it. I just want to make the comment that one of the, or two of the biggest items I think in the future of Broken Arrow, and not that we need to do anything with it now, we just don't want to lose it, and that's a future water source and a sewer system out east of Broken Arrow. So those are going to be very expensive projects coming up in the next few years. I know we've got the rights, at least for the water, I just want to make sure that we keep those. I know we're not spending money for it now. Citizens couldn't afford it now. But those are things that are really detrimental to the city of Broken Arrow because our water resource now is not a good water resource. You want to talk about it again?

I think he said it very well. Yes, we have an MOU in place with UWA. It's actually sitting on the end of my desk, and they've been asking some questions about it. We kind of need to pick that up. on the water side. On the sewer side, I think that's interesting that RMUA, Regional Metropolitan Utility Authority, we're one of five cities that are part of that. I believe at their June 10th meeting, they are planning on putting it onto the agenda to talk about an east side plant. What do they do? Do we go together or not?

So Tulsa is starting to grow out that way as well.

So it's on their radar as well. And I'm not talking about monies in this budget. I'm just talking about doing the legwork, you know, what I mean, to keep that going. Because I'm telling you, we look for years, and the only good water source is back on the Grand River. And we've got, what, 12, 15 lift stations that we're having to pay for all the electricity and everything for that. So those would nearly pay for themselves when we finally can get to the point where we can afford to get them. wanted you to know that I feel like those are the two biggest projects in the future that we need to make sure we stay on board with.

I agree with you and I agree with Mr. Spurgeon that East Broken Arrow, water and sewer is something that we need to keep high on our radar and plan strategically. I think that those partnerships are in place and I think other entities are now beginning to say, hey, we need to start looking this way.

You know, council's giving direction. Unless a future council says that's not what we're doing. I mean, we're planning for that. We're actually spending money now doing the preliminary designs and review because, you know, 2035, 2040 will be here before we know it. And so I know that Tim Robbins and Emily, as well as Engineering Construction, they're working towards some of those goals that council has with respect to, you know, obviously we know where we are in terms of being able to provide potable water know to approximately 2040 but also council basically said that they want to have a a sewer plant in the eastern part of our city our city as well and so we're proceeding as councils directed and so like I said unless council steps back maybe it's a good idea sometime during the fiscal year is that we have a work session and we just update the council on what what just a reminder what direction was given and then what we've done preliminary to move towards Council's implementation and Council's direction.

I just wanted to mention it because it's a great big expense coming up in the years to come. Agreed.

Okay.

Good question.

So I noticed on the budgets for each of the departments on, say, the attorney's office, I felt maybe we added additional attorneys, but we didn't. the budget for salaries is almost doubled. So is that just pay increases?

There was one year that we used ARPA funds. So like finance, I think it was... Because like HR is almost doubled. Right. It's because one year, was it 25, Tom? We used half the salary. So from July to December, we transferred the money, we transferred the salaries to ARPA because that was a usable... funding for us, and we had it earmarked. So, yes.

Okay, because, yeah, because the next years are just slight increases, but I was like, oh, that's quite a job. We still look at them and go, what's this? Yeah, now that you're not working here.

Yes, they're back where they were, but salaries for certain government entities, departments, were ARPA allowable.

Okay, like IT did gain an extra person, so there's only jumped up a little bit, but okay.

Thank you. There's a question. Okay, several years ago, the council members approved the creation of a vehicle replacement fund. And I want to share with you, because obviously the cost of vehicles before was being taken out of the SDCI or for police and fire, a portion was out of their funds. And so the estimated revenue for the vehicle replacement fund for Um, this year for the upcoming year is 2.5 million, uh, funds limited in use for citywide vehicle purchase program. So I want to show you the next, this is what is being proposed. And I want to, I want to share with the council is that for the last six or seven months, uh, led by Ryan bays, I asked, uh, Kenny and norm to work with him and develop a very detailed policy on the purchase of vehicles. I'm going to be looking at that that policy probably within the next month or so they have come up with recommendations and and right now until such time as if council approves what's recommended is that until I approve the policy we're not going to be purchasing any vehicles and I'm going to try to get to it quickly but going forward all of all the purchases all the vehicles in future budgets will go through the the committee and the policies and so what's been what's submitted in future years will actually been approved by the committee in terms of the vehicle replacement program so my needs to add a vehicle and they're going to have to go and through the through the committee and justify the need for that vehicle I Ryan's proposal is I think it's amazing and very few cities have this but to me it's going to be more updated a data-driven policy on on do we really need to replace a vehicles, what are the conditions of vehicles, and how to go about it within a data-driven basis. And so I'm very excited about this. I'm very grateful the council approved this. And as you can see, our largest expenditure happens to be the police vehicles. Bama, $658,000. And believe me, I know council members, you know, obviously, where's that right? Where's that porridge is just right for how long we keep vehicles? And sometimes you keep too long, you're starting to pay more for it. And another thing we're going to get away from is sometimes, and this is one thing Ryan's explained to me, is that we start handing down vehicles. Those vehicles we're handing down actually can cost more to maintain them than actually the replacement. And so we've got to find the right, is this vehicle worth salvaging? But this is what we're planning to spend that money on for a year. First of all, who's on that committee? Who makes up that committee? Actually, it'll be led by Kenny Schwab, and then it'll be Brian Bays, and then a number of directors. So what they'll do is this. I'm going to look at this for this fiscal year, and then they will meet every December. Every December for the upcoming fiscal year, they will meet. Everyone will have to submit their vehicle request to them, and then they'll probably take a month or so to go through those requests. And then as we build the budget for future fiscal years, it will be built on the vehicles that the committee has recommended to the city manager to be submitted into the budget itself for council considerations. You know, so, I mean, questions council could ask in the future, you know, if there are vehicles, I mean, council, I would hope that you'd ask, well, are these vehicles been approved by the committee? And I'd be glad to share. In fact, I had every intentions once the policy, the internal policy, I was going to share that with council members so you'll know what criteria we'll be using for those vehicles. because then they'll know exactly how long we're going to be planning to keep vehicles and just exactly what criteria we're going to be following as an organization. So Sales Tax Capital Improvement Fund, STCI. Once again, this is a half a cent of the 3.55 of the city sales tax. It will generate $10,700,000. The total revenue and other sources estimated at $41 million, which includes the potential loan for the new municipal administration building. And so I was going to send a notice to council. um later this week early next week that i'm going to ask the i'm going to ask the subcommittee of the municipal services building to meet with charlie and emily probably early june to go over where we are on the design and then as a part of the work session present to the full council exactly where we are with the actual layout of the building to see everything because we're going to be reaching that point where we need to turn the architect loose to finalize the design so then we can still meet the target of getting out to bed early next year. So for counselors Green and Ford, we're going to need a little bit of your time, probably about two hours, I would think, to go through this because you're actually going to look at the renderings, the floor plans, the floor layouts for both floors, the parking lots, and get your intake. And so we can make those adjustments. And we met today for quite a bit to actually look at that to finalize what we want to present to the committee, get your input, and then we'll present to the full council. So Cindy did include that potential loan amount in the SDCI. Some of the highlights, we heard a lot about, I mentioned this, it's a small amount, but we get constant complaints about the downtown sound system. And so I asked Charlie Bright last year, and it's taken a lot of research, and he's still got a lot of work to do, is to actually to replace and or upgrade the sound system because of the challenges and what it was exactly what has happened is we have a longer street now it's was it's not just the rose district plaza we have we have commerce up and you know basically up and down from north and south so that's something i'd like to propose municipal services building is right now uh the per square foot uh we're looking at about 512 to 13 a square foot is what it's going to cost uh right now i think nav holds is going to do a great job of value engineering the project we're over that right now so we've got some recommendations that I've suggestions I should say to actually lower that total cost Bass Pro parking lot that's our responsibility and as I mentioned early Airport feasibility studies $150,000 and actually I'm gonna have either Curtis or norm explain the agenda meeting software that we're recommending that we need so

thanks the agenda meeting software that we're currently using is old and had some issues with it as you know so we're looking at doing an rfp for an agenda management software system this system will make sure the place legislature that we're using now could be the same that we don't know but in addition to agenda management and having a book cast system This program that we're looking at will also encompass all the video. And this is where Aaron and Michael's team come in to play in terms of just looking overall at camera quality and looking at doing this. And one of the systems that we're actually reviewing has the cameras where they can be pulled out. of council and moved to the new building. So it's not like we would spend a lot of money on a new system with the video and everything and then have to turn it around and do it again for our new MSA building. So that's something we're looking at, and hopefully if it gets approved, we'll go out for RFP sometime this summer. Thanks, Curtis. Yes, sir.

So the total STCI with rollovers is $49 million. And just a reminder of rollovers are projects that are extended over multiple years. Sometimes we start a project in a given year and it actually is not completed. So what's unexpended, if it's been started, it actually is rolled over into the next year because obviously it's not completed, so we carry those funds over for accounting purposes. And the full list... We can go to that if council would like to. The full list of what's being proposed is in section 4, pages 10 through 15. Street sales tax fund. Now this has grown as we've seen growth in the sales tax. We've also seen growth in the essentially it's about a .3 I believe of the .55 And so you can see revenue estimate this year is almost $5.6 million. New projects, which Tim will talk about, the mill and overlay, you're looking at about $4 million. Miscellaneous projects, $500,000. And alleyways, $175,000. So fortunately, you know, as we just had a tradition, is that we try to spend that money, get into our neighborhoods. Council's been awarding contracts. Actually, there's a total of about 26 neighborhoods awarded over last year, this year, and the next year that we're actually going in and doing asphalt and concrete work. Okay. Police sales tax fund. Sales tax generates. That's a part of the repurposing of the .55. Total revenues available for the police fund. It's a breakdown of the police sales tax fund. We talked about that just a little bit earlier. Total budget proposal over $41 million. Capital. Okay, Cindy. This is all in the executive summary. Revenues. It's essentially the same for total revenues of $37 million.

And just the information like others is interest, it is grants, et cetera.

So here's actually the proposed expenditures for the fire department, $34,700,000. At this time, Mayor, do you want to take a quick break, or we can go into the departments that are going to give the presentation on their budgets? Well, at this time, I'd ask Kelly to come forward and present her budget this year.

Good evening, everyone. Thanks for having me again this year. I'm going to present to you our HR department proposed budget for fiscal year 26-27. I'm going to concentrate mostly this year on people and services because that's what we do in the HR department. You can go to the next slide. Our department, of course, is not only responsible for the entering and exiting employees into the organization, we are involved in so much more. Those areas involve talent management, employee engagement, compensation, benefits, HR system support, risk management, and training and safety. Our talent management team, they are involved with recruitment. They manage all of our applications that we receive in and that we respond to the applicants when they apply. They provide interview support to all of our departments and they also serve our community by going to hiring fairs and job fairs. The employee engagement coordinator handles all of our employee onboarding. She does employee experiences, so all the fun things that the employees get to do. She works on our exit and stay interview programs and also our employee recognition programs. Our compensation coordinator supports payroll. They do compensation and benefit surveys. They manage our compensation plans as well, and they do a lot of analysis for us on our compensation plans. Our benefits team, of course, they're involved in the benefits administration. They do open enrollment. They are involved with our leave administration, and they are involved in our wellness initiatives for our employees as well. The HR system support analyst, he is involved in our performance management systems, which is NeoGov. He is involved in the HRIS support system, which is our human resources information system. He does a lot of file integrations for our benefits team. That's a really involved job that takes a very special person to be able to do. And he's also involved in a lot of data and analytics and project implementation. Our risk management coordinator is involved in workers' compensation, risk, property management, and our liability insurance. And then our training and safety employees are involved in our policy management, organizational compliance, and they help develop our employees. Of course, we serve the workforce, so we are all-encompassing. Most of our employees are specifically dedicated to one specialty in their job, but they serve our whole organization in so many different ways than just one. You can go to the next slide. This is our HR team and reporting structure. We have had the opportunity over the last couple of years since 2022 to increase our team by two people, which is 20%. And that is thanks to the city council and our city management team. Our HR department budget is very invigorating. Again, I'm going to concentrate more on the people and the services that we provide. Our budget is pretty much flat this year. We have 66% of our budget that is dedicated to salary and benefits, and the remainder of our budget is broken down into training and development for our employees. That's not only for our HR internal employees, it's for the whole city. Because we do budget for the employees, whether it be safety, training and development for the employees and the managers as well. And then our systems, which is the human resources information system and our employees enterprise software, that's 13%. And then our recruitments and onboarding. which does cost quite a bit of money, which is 12% of our budget. And if you guys have any questions as we go along, I'd be happy to answer them. Our strategic priorities for our department are always, just like Mr. Spurgeon said, it's to increase the services that we provide. We don't get to provide the opportunities to the citizens. However, we provide those opportunities internally. So we are always looking to improve the services that we provide to our employees and the opportunities that our employees have. We are always looking for operational efficiency in HR infrastructure, our leadership development programs, performance and accountability for our employees and the supervisors, our employee experiences, which are very important to us. It's how they engage in our workforce, our employees' health and wellness, and then, of course, our workforce stability.

Okay.

The outcomes that we were able to achieve this last fiscal year through the support of city council and management was our COBA launch pad. COBA Launchpad was our, it is our employee orientation program. It is a full day and the employees are, they come on board, they spend a full day with the team in HR and they learn about our benefits and the programs that we serve. They learn about servant leadership. We spend a lot of time on that and also our values and our mission. We also were able to create a program called Elevate this last year, which is a 20-hour training program for all of our supervisors and managers. They went through all the policies and procedures and were able to grow and develop everybody on the same page. Historically, that hadn't been done, so we took a lot of time developing each of those supervisors and managers. We have had support through the physical, mental, and financial health through the development of a wellness committee. We were able to create that last year, and we held a very well-attended event over at Neenheis, and we also look forward to doing that again this year. We had the opportunity to implement the Rising Star Award. That is an award that is given away one time each month. It started with one employee, and then the following month they were required to submit a nomination from a person in a different department, somebody that they interacted with on a daily basis or routine basis. Um, and we've been able to pass that around several times. So that's a really good program as well. The employees really like that and they get to, um, other people get to see their contributions to the city. We have been able to develop, um, our state interview and exit interview programs as well. And we continue to try to improve those programs so our supervisors and our department heads understand why people may want to leave or why they are leaving our organization. And then, of course, we get the opportunity to change our benefit programs each year. We have the opportunity to review them all on a routine basis, ensure that we're providing the best and most affordable benefits for our employees and the city. This is a very exciting slide for me. Mr. Spurgeon kind of covered this a little bit this morning. I think that this slide really gives way to who wants to come and work for the city of Broken Arrow. We had almost 8,000 applicants this last year from April 25 to April 20, 2026, which is over 231,000 job hits on our governmental job page site, which is astounding to me. That's very, very exciting. We were able to hire 137 new full-time employees. That also includes a couple of part-time employees in there. 95 seasonal employees. We had 86 promotions that we held throughout the last year as well. and then 18 rehires. Our workforce today consists of 2% executive, 60% general employees, which are non-uniform, and then 18% police and 20% fire. And then I always like to show our generations in the workforce because it shows how many different employees, I would call them employee cohorts, that we have. that we get to interact with on a daily basis. Again, that's the total breakdown, and it goes all the way from Gen Z to the silent generation, so that's very exciting. Which I'm not.

Well, we established it this morning.

Our success is measured by the city's ability to deliver the employee services to the citizens. We do like to have fun in HR. We do have a weekly meeting each week, and we had the opportunity one time last year to discuss servant leadership, and we like to give ourselves different sayings every once in a while. Last time I gave you a presentation, I was able to provide you our HR Pledge of Civility that we learned at the Women's Conference. And this year I'm going to leave you with, we are the people who serve the people who serve the people. We don't directly get to interact with the citizens. However, we have the opportunity to interact with all the employees. And this is my team. So thank you.

Any questions?

Any questions?

Next up, Rocky, community development. Good evening, head of mayor, members of council. Thank you. Community development is not as fun as HR, so don't expect anything like that. I'm going to give you a brief overview of our department. We provide one-stop support for residential and commercial developments. We support zoning, permitting, inspections, licensing, planning, and planning, and we help guide long-term growth and economic development, and we work closely with the residents, stakeholders, and developers or property owners. Here are the divisions in the community development. We have planning and development, which consists of planners and engineers. We have placemaking division of one, which is the treasurer for Daroga. And then we have a division of neighborhood engagement and building inspections or code enforcement. And then we have community licensing and permitting.

Are you bringing that today? Yeah.

I wish.

Okay.

We consist of 38 full-time employees, two part-time employees, and one seasonal employee. Again, the purpose of our department is to provide customer service, inspections, permitting, planning, code enforcement. We do have a little fun, I guess, with special events in the farmer's market. So that's an interesting aspect to our department. Some of our major responsibilities in our department is to rezone and do a review of land development. One of the things that we offer that's different than most communities per our zoning ordinance is we offer pre-development meetings, or sometimes we offer pre-development meetings. So if somebody's interested in purchasing a piece of property, and they have a vision, we're able to sit down with them and communicate, yes, this will work, this is what you need to do, or your vision is probably not going to work here, so don't take the time and invest in that property because it's probably not going to work to your favor. So this gives the property owner insight into the city, through all the zoning codes, the steps they're going to have to take, whether it's the fire marshal, stormwater, engineering, permitting, building inspections, so they have a holistic view of what they're getting into before the project really begins. Like I said, we also do building permit review and inspections. We do code enforcement, long-range planning, and comprehensive plan implementation. So like tomorrow night is the first advisory committee meeting for the downtown master plan. That's part of that long-range planning that we do. Provide support for commercial and residential investment. So planning and development performance indicators. We review several hundred applications a year in the planning department. For example, last year alone, we held 157 pre-development meetings, so that's an average of three a year. And these aren't just show up and we have a meeting. These take time to research a piece of property, so we're able to provide the information up front to them. We do site plan reviews, rezonings, PUDs. Vice Mayor Parks is versed with PUDs. So we provide several hundred of applications that we review throughout the year. Commercial plan reviews. So here's the chart there from 23 to 26. You can see pretty consistent for the last three and a half years, almost three and a half years. We provide a thorough review of commercial plans to ensure compliance with codes and standards. We're efficient. We're timely. We have a 21 working day review timeline. So when you factor in the weekends, it's about 28 days, 29 days for us to review and give back comments to the property owner or their team. We collaborate with developers and design teams. And our commercial plan review under Joe Williford has a commitment to safety, quality, and sustainable community growth. So this next slide here is the housing starts for the last seven years. Uh, as you can see, well, you can't see it doesn't tell you here on the slide, but for the last seven years, broken arrow has been the leading, uh, municipality in the Tulsa metropolitan area with writing home starts. And through April of 2026, we continue to be that leader in the Tulsa area. So each of these housing starts has several permits that are associated with them. So I'll talk about the permits in a minute, but those include mechanical plumbing, engineering. building things along those lines. What's the difference between the yellow and blue?

I just decided to throw in some yellow and blue.

Really strategic.

I would have done it every other one.

So as I mentioned here, the permits processed between 22 and 2025. That won't let 2022 scare you. That was the last quarter of 2022 is when we began Intergov, which we began to capture that information. And so I want to give you some information based on these permits. In 2022, those 3,000 permits had a project valuation of $758 million. In 2023, they had a valuation of $6.2 billion. In 2024, that's $5.2 billion. And in 2025, $3.6 billion worth of valuation in projects. And here are the inspection reports for the last five years, four and a half years. As you can see, it's very consistent. Again, these are building and commercial inspections. We have five to seven residential inspectors, and then we have three commercial inspectors. Code enforcement, again, this is pretty consistent over the years. We provide proactive enforcement. We promote safe, healthy, and attractive neighborhoods. We provide a timely response to help reduce future violations, and we enforce and protect property values and support quality of life, and all of our decisions are data-driven. Now some of the fun stuff, the Farmer's Market. It's fresh. We provide artisanal goods, baked goods and treats. It's a vibrant community gathering place, directly supports residents, farmers and vendors. The Farmer's Market launched in 2003, was the first market. At that time we had 10 vendors. Today we have 60 vendors with 35 vendors that are on the waiting list. We just don't have the capacity for it. So in the newly passed bond with the Rose District expansion, that's going to be a great place to add those additional vendors. Uh, our farmer's market is, um, April to October on Saturdays from eight to noon and Tuesdays from four to eight. And then, uh, November to December on Tuesdays, again, from four to eight, uh, special events, um, social events, create a community identity. We preserve traditions. We promote quality of life. Um, we support about 40 primary events every year, uh, for special events and. Even though Broken Arrow is a growing community, we want to keep that small town feel, and this is the way to keep that sense of unity and community within our own community. That's all I got.

Thank you.

Good job.

Any comments for Rocky?

You know, I compliment the city's department. Just yesterday, I was visiting with a person who's running for state office. and uh about how many homes are being built uh within our fence line that are not in the city of broken air and i said used to we would annex those lands but now even the government has stopped us from doing that so we've got houses that are built not the city of broken air standards and those people are already calling them because they're flooding i said you're talking to the wrong person you know what i mean i weren't part of that development no that's not the city of broken areas they They chose to do that and they don't make room for the flooding and everything. So there's a lot of houses being built in our fence line that are not in the city of Ropen Air. I appreciate everything you guys do. You're well-known throughout the state. I get a job building areas.

I'll say some of those houses have been inspected by City of Broken Arrow inspectors. Coedo, Wagner County, for example, sometimes they don't have the staff, there's turnover, and we have an agreement in place where we can supply them supplemental inspection services. So those few houses that they do inspect, they are expected to grow carrots.

Do you get to look at the flooding area or the drainage area when they're developed?

No, we don't. Not during the development process, no. Just the building, not the site? Yeah.

Just a comment on that.

Good evening, Madam Mayor, Vice Mayor, Council, Mr. City Manager. I really appreciate having the opportunity to spend the next 45 minutes to go over some of the things we're doing in solid waste. In our budget document, we said that 2027 is going to be a dynamic and evolving environment. and it is in solid waste as well. We are always trying to seek and maintain the enhanced quality of life for our citizens. And just this last year, if you go back to this time last year, we had 39,758 customers, and right now we're at 40,904. So to Rocky's point, we are growing, and that always means additional services for us as well. We try to be very thoughtful and disciplined in the way that we manage those services for the customers. So, next slide. One of the things that we've done is we've tried to, within the operations, identify ways that we can get in front of the customers and not necessarily have to make them make a phone call. A lot of our customers nowadays really just want an interaction that they can do online. They like to use our Broken Arrow app. And so we've given them the opportunity to do things like that. We've done this with the landfill passes, which delivers a QR code now. Instead of them having to come to the office, they can just do this online. Our IT and GIS departments are fabulous and have helped us with a lot of these projects. We've also done this with bulky goods, so they can call and schedule their bulkies online. They can do it as well. And we are now looking at a couple of new projects this fiscal year that will include vouchers for the MET, which have traditionally not been managed very well, but they weren't managed by us. So we are going to be looking to partner with them to help them do what we do with this product and do it with the Met as well to try to save us some money. All of these things cost our ratepayers money, so what we try to do is resolve that by managing them well. We're also looking at an AI-powered phone agent, similar to what we used in the Geobond, that would allow our customers to call it 2 o'clock in the morning on Saturday with a question about what goes in a recycling bin, and they could get an answer. Just in enhancing some of these services has gone from having emails or voicemails, should I say it, that are about 20 to 25 every morning when we come to work, down to less than three. So customers don't necessarily have to call anymore just to be able to get service. And those who want to call, we're trying to provide them services as well. And a lot of our customer service enhancement had to do with things that we brought to council that you were able to give us. Additional staffing never has been an issue for us. Really, for us, it's been about making sure that our 40,000-plus customers have the adequate staffing for what we're doing. So with Kenny's help, with approval from the authority, and from support, we've been able to reassess our positions and change things around so that we can get our services in line with what's going on in the region. We've got the appropriate number of people doing the job. One of the things that we're looking at this coming 1st of July is to change the way we provide services. Continually, we've allowed for the public, the 40,000 customers, to change their service day based on our need. And that's not in line with the way that a solid waste operation works. Solid waste operations normally have a set service day, and that's your service day. So what we're proposing to do as of July 1 is change that so that our Monday through Thursday service days are our Monday through Thursday service days. The only time that we would rotate our schedule would be on Thanksgiving, Christmas, New Year's, and 4th of July, and that's only because it's in a contract with TRT that we don't deliver material to them. Later dates, we might actually go to a place where we negotiate that out so that we're able to run. But what would happen is 4th of July this year is on a Saturday. Christmas and New Year's are both Fridays. The customers won't see any shifting of service. There will be no changes. Thanksgiving will always be on a Thursday, so Thursday will always be on a Friday. This is in line with the same industry standards that everyone else uses, the city of Tulsa's provider uses. And it also takes that question about whether or not a holiday is actually one that we celebrate. Our phone calls for customer service go up about 90% the day after we shift service because everybody doesn't know what day it is. So this is going to give us the opportunity to affect every one of our customers in a different way. We have also done some things with the technology to help us continue to do audits within the service that we provide, and we've been doing an audit every year for years. Every year I've been there, we do an audit. We might do two in a year, depending on what the service provision actually tells us is going on. And this last year, we were able to find $36,000 worth of revenue simply by using some tools that IT and GIS was able to give us. Every year we should be doing this because it's not our money. It belongs to the ratepayers. So we're always looking to try to save that money. So here's a couple other things. We, this last fiscal year, started imposing a coaching schedule for our supervisory staff. When I first got there, one of the things I did with all my teams was I would coach them. They would come into my office. They'd get once-a-month coachings where they would sit down with me We would talk about the things that were on the radar, things that I was afraid were going to be tap the diamond moments or things that would blow up in my face that I wanted to make sure weren't going to blow up in everyone's face. They see all of it. I only see a piece. This gives them the opportunity to tell me those things in a closed room where they can talk to me freely. And then I seek to find out what they need. Do you need additional tools? Do you need training? Are you looking for something that we haven't provided to you? And so I did that for the first couple of years. What I was doing was I was exampling what it was I was expecting them to do. And so after two years, we developed a coaching schedule for them. And now because we have repurposed some of the staff and moved positions around, I have an adequate amount of supervision so that my staff is not more than 15 to 1 on supervisory. So they can actually go out and do coaching sessions with their staff every month. They can do route observations the way they were designed to do, the way they should be done. And they can also, with the addition of our safety and training person that we brought on last year, we're able to do tailgates and training programs that we've never been able to do before. And now each month I get a report from each one of my staff telling me how they were able to talk to their staff, what they were looking at. And this has been some of the things that have been helping us move our needle. In 21, when I got here, we had 18 recordable injuries Out of those 18 recordable injuries, a lot of them were heat-related. When you allowed us to buy ASLs, we moved people off the back of the truck, and we took them out of some of that exposure. With that, we have now gone down to eight reportable injuries for last year. And of those eight, the severity has gone down as well. Some of the other things that we're working on right now that have helped us get to the next level is solid waste is like Ground Dog Day. Every day is exactly the same. You come in, you pick up, and you start all over again. And some days, that's exactly how it feels. You're driving around with a ground dog. So what we've been able to do is we started to work on some things like enhanced skills, training, and I love the parks. They've given us the opportunity to go down to Indian Springs and do some training inside and outside the truck when it's not on the route. So we've been able to enhance the skills of people we hire as well as people we already have here. With that, we've gone from 534 is our typical end time to about 511 every night. And I got to tell you, when I left the office, we had already finished for the day. So it's moving down. And this is into the summer months when that's not normal. And so the trucks, the training, the enhancement of the service that we're providing is really starting to move a needle that I really love to see. The other thing is that our stop counts have gone from, as an average, and this is with our rear loaders in the mix, 836 per route to 970. And this year's FY27 goals, we intend to have surpassing 1,000 stops per route. And some of our best drivers are hitting 2,000 already. So they're bringing our averages up, and we love them for that. But our hope is that we're going to get everybody trained up enough that 1,200 is a norm. That's just how we do it. And then one of the things that we're working on this year as well is kind of a new program. And it's really not flashy. It's not sexy. But it is going to be fun. We have warranties on our containers. And so when we get warranty returns, sometimes we get parts back. Well, what we did is we ordered some gold lids instead of blue lids for our recycling. And what we're going to do is we're going through the drivers and through our new recycling educator. We're going to go out and we're going into each one of the wards to find about 25 customers who are just exemplary recyclers. The department's going to get them a little letter saying, hey, guys, congratulations. We will give them a cart that has a gold lid. It's really yellow, but it looks yellow. And it gives them the opportunity to then be our ambassadors because people are going to ask, why do you have a gold lid? I don't have a gold lid. People are competitive. So they're going to look at the gold lid and go, hey, how did you get that? Well, you know, the city, they drive around, they look, they flip lids, they were able to inspect, and they saw that I'm a really good recycler. And every six months we'll switch them. You know, it'll be something that we will. Take their gold lid back?

We take the gold lid. Do you have to smoosh your boxes down? Does that make you a good recycler?

You know what? I've actually seen people who clean their material. They wash it out, stuff like that. They really organize it in that you've got some folks who they've got a little too much time on their hands. But nonetheless, we want to celebrate those people who are helping us take contamination out of the system and build into what we have told them is important to us. So it's a simple little thing. It costs us almost nothing because the lids are coming back to us as warranty items anyway. So it's been pretty cool. I think it's going to be a neat addition. And when are you starting that? Well, July 1st has been our, yeah. So you can warn your... Your ward, I guess. But anyway, we're looking forward to that. That's going to be a big one. And then I think the last thing is one of the things that's on the wall in my office is we have a poster in there that says, Success is Never Owned, It's Rented. And the rent is due every day. So I keep telling everybody, if you want to get good at this, you've got to make the commitment. You've got to make the effort. Show up every day, right? Here's how you do it, right? Show up every day, invest in growth. Maintain discipline, which means just follow routines and habits and reinforce progress. And then serve and contribute in business. Relationships are personal. You have to develop value continuously. So these are the things we're doing, and I think our staff has done a really good job. And we were flat in our budget, so I don't have anything big to offer you as far as, hey, we're going to jump and buy all this other stuff. No. Everybody has been really good at supporting our mission of keeping our vehicles up, managing what we need in the way of resources to keep us running. And so really it's just about now maintaining a really good quality of service. Well, I'd like to say that we didn't, but this last year we actually released the temps in the winter, and they have not come back, and there is no intention to bring them back. I left them in the budget in case we hit an emergency, something happens. And we need additional staffing. But I haven't brought them back. And my intention is not to. We've flatlined on the staffing. So we didn't ask for any positions. We didn't need any positions. We just reallocated the ones we had to the positions they needed to be in. And we're trying to be good stewards with the money that the rate payer has given us.

Jerry, take a minute and talk about the need for the transfer station and green waste studies, the feasibility studies. Absolutely.

And I'm glad you brought them up. The transfer station has been something we've been talking about since I got here. Matter of fact, before I got here, during my interview, I even brought it up at that interview. This is something that the city is pretty clearly needing because of the future of where we're going to end up. Even if it's not the landfill that we're at now and we end up somewhere else, if you don't have some place to transfer that material, you're not setting yourself up for the next 20, 30, 40 years. So doing the feasibility study will actually provide proof of whether or not the money makes sense to spend, whether or not there's a return on the cost, and then whether or not the region itself can support it. Not just solid waste, our residents and us, but other areas. entities within the region who may say, hey, it's cheaper for us to pay Broken Arrow to take their material there than to drive it all the way over to the environmental landfill over there in Sepulpa or our landfill, the one that we use over at Waste Management on 46. So the Greenway study will tell us whether or not we need to move forward with putting a third cart at people's homes. That's controversial in itself, but we bought side loaders. Side loaders hit their numbers and are most effective if the way that we pick up service is using a third cart. Every time we get out and have to load a cart, we're taking time off of what could be a 12, 14, 1600 stop route, and we're stopping to refill. Once we're done with this RFP and the study for the transfer station, the next one is a greenway study, and hopefully that that will pencil out and they'll actually say, yeah, it makes more sense to use the equipment you've already purchased and invested in to do this at a faster pace. And truthfully, it's going to clean up our city a little bit, too, because we want our bags laying at the street. We'll do carts pretty much only.

So will the green waste be like mulch?

That will be the study's results. And our hope is what they'll tell us is not only do you need a green waste cart and green waste collection, but you should have a green waste facility similar to what Tulsa does with their mulch site. Now, they had to outsource theirs recently, and that was one of the reasons that we were not able to continue to subsidize that. We were paying 55 cents a yard for people to use it. And this last year we had to stop because it went to $5.38 a yard. And the difference would have been financially a burden on the model. This study may tell us, hey, you know, it makes sense to have your own site. Maybe in the transfer station study, it'll actually say, hey, save some space at the property because you might be able to use it for a green waste facility as well. All of those things will pencil out and we'll let the consultants tell us what that looks like. That's a great question. Thank you for it.

Jerry, last time you were for us, I believe that we were talking about getting the new side load trucks and the fact that it was going to change the amount of employees needed on each truck and we want to ensure that those employees are going to retain the jobs and where you talked about you know retraining them and putting them in various other places have you noticed an increase in the employees morale since we've got those side load trucks versus when they were having to hang off to the back of a truck?

Great question. I spent Friday afternoon hanging on the back of a truck myself while Ryan over there drove, and we went and picked up a neighborhood that couldn't get picked up because it had been repaved, and so we couldn't get in during service days. We ran over there and just picked it up real quick. I can tell you right now, my morale would have been a lot easier on me if I was using the arm. But I will say this. We have reduced the amount of people on the back of the truck. We used to have 22 people, and that number is down to 16. We've repurposed people. We've moved people around. We've actually trained people who are now drivers who were helpers on the back of the truck. it always makes more sense to have them there. And, yes, morale goes up when they're not having to, you know, really hurt themselves to be out there. In the heat and the cold is when it's probably most felt. And the heat's coming. So we try to stay on the side load as much as possible. It's a great question. Thank you.

Thank you, Chair.

Absolutely.

Mayor, schedule calls. Take a break for everybody to grab IDs. And we can get back on at 7.

We need a motion to take a brief recess. Yes.

So moved.

Second.

Pickle. Yes. Green. Yes. Smart card. Yes. Pickle. Yes. Green. Here.

Well, thank you, Mayor, Council. I want to thank the clerk's office for coordinating getting the incredible dinner tonight. I just want to say is that every year I try to pick at least two, if not three, directors. And I am so blessed to say that no matter who we put up here, they're going to do an incredible job. And they do an incredible job every single day. The professionals that work for the administration that represent the council are some of, if not the best, in the entire state of Oklahoma and probably in the nation. I mean, there's some great leaders in other communities, but the understanding of why we're here And going above and beyond to serve our citizens is unmatched, in my opinion. So for those that presented tonight, thank you very much. And also, I'm looking around. I'm trying to see if there's anybody in the audience that council may not know. Everyone knows Zach. And I was going to have Charlie introduce Gary. So would you mind?

yeah absolutely i appreciate it um i always invite a lot of my business managers uh gary mcculpin i think next year a few of you guys had a chance to meet him at some meetings um last year at the budget we i would i could have talked and we talked about um two years ago but we talked about hiring a right-of-way agent and a utility coordinator because that was what slowed down our project so much At the time, Gary came out of the utility coordinator position. We just got blessed by timing. He came from working at the city of Tulsa for 20-plus years, doing very similar services for him. He retired from them, came to us. He is a Broken Arrow resident, or right on board with a Broken Arrow resident. He's been awesome. A lot of our transportation projects have gotten faster due to right-of-way and utility coordination, and he plays a really big part of that. Hey, hey, hey, everyone. They don't know about my internship program.

Agreed.

Also, Cindy, would you introduce the folks from finance that are intricate in helping you put the budget together?

Yes, I want to thank the chair, Kim Patrick. She's the budget manager. And Haley Peterson, she is the financial analyst and also a budget officer. And then we all know Tom Cook.

So this is the first year that I've got to work very closely with Tara and Haley, and I can tell you, they're phenomenal. I mean, they know what they're doing. They learned quite a bit during Shark Week, as we like to call it, for the budget. So thank you, ladies. I very much appreciate all you do, okay?

And Kelly was mentioning how we have promoted, I think, 68 people within the organization. Haley was one of them. She was an accountant. She came to us as an accountant from the city of Sepulpa. And she's been here about two and a half years, three years. And we're very happy to have her as the financial analyst.

So thank you to everyone that presented. And at this time, Mayor and members of council, I'm going to turn it over to Kenny Suave for him to cover the Broken Air Municipal Utility, affectionately known as Bama.

Thank you, Mr. Spurgeon. Counselors, it's my honor and privilege to go through the Bama side. And just a quick little side note, when I started 10 years ago working for Mr. Spurgeon in this position, one of the things he told me that we needed to do was mature as an organization, specifically in Bama. Bama's your public works. that's going to be your streets your stormwater actually your stormwater water wastewater solid waste recycling also included in that is engineering construction they do a lot of work on the Bama side vast majority of it fleet maintenance and building maintenance so a lot of your asset management most of the communities will think of Public Works ours is operations and I am more than thrilled to say I think we have matured to a level that is beyond what you would have expected from the state side. We are actually speaking at conferences outside of the state. We've been to Texas. We've been to Louisiana. We've been to Arkansas talking about how we do things in Oklahoma, Broken Arrow, and there are so many states that do recognize who we are now. So I'm just pleased to do that. Now, budget-wise, here's the reason why. In your book, section three is going to be your Bama departments. It includes IT, city manager, which is Cricket and me, finance, general government, solid waste recycling, maintenance services, engineering construction, street storm water and utilities, and those are their corresponding pages for their individual department budgets.

And the finance department is actually, is utility revenue, they're the ones who bill all the utility revenue? Yes.

So let's just start off the top for FY27. We're looking at $187.7 million for your expenditures, your transfers out, capital outlay, and debt service. How does that compare to last year's budget? It's about $10 million more. So there is an increase of $5.9 million, and mostly due to the increase in OWRB projects, reserve fund balances, and debt service. So real quick, we all know the capital improvements, the projects, and the loan. We'll go over those specifically. But the reserve funds, it's so important to have those reserve funds. Mr. Spurgeon talked about that at the very beginning of this budget hearing. And the reason why it's so important is when a disaster happens, and I do mean when it happens, FEMA will come, but they're not going to come in immediately. You have to operate, you have to carry on, and then you have to resolve that. And we're talking a long time. I remember in 2008 range when I started as director of engineering, the big ice storm in December of 2007 took us over a year to get our money back, and that $3 million that we had to come up with. That comes out of your reserves. We have to operate. Trash has got to get picked up. Mrs. Spurgeon says that all the time. Water has got to keep going. Toilets have to flush. You still have to operate. So that's why the reserves are so important. And we already talked about debt service, but we'll talk about it again here as we get further on. So here are some of the highlights. Our plan includes $5.8 million pay-as-you-go capital. Mr. Spurgeon loves to call it pay-as-you-go capital. This means it's coming out of the budget, and we can just do that contract and move it, or we do it ourselves. A lot of it's done ourselves. When I started in 2016 in this role, that was about $3 million. So we've almost doubled in his tenure here, probably have in his tenure. This is a lot. We just handle the projects and move them forward. Proposed additional OWRB projects, that should be the projects for this year. If you'll remember at the last council meeting, Cindy and the team came and asked for us to go ahead and authorize this so we could get on this year's application cycle, which money will come next year, but the application cycle, because you could save upwards of $100,000 because of some of the big projects that were going. And we've already moved forward. You authorized that of $26.8 million. How does that compare to the existing OWRB projects total? 44.7. So it's a good chunk that we're adding that would bring your total to almost $72 million. and we'll get into it again but owrb the oakland water resources board uh clean water act so that's waste water and you can do storm water in that we do not do storm water we do that with our bonds or other funds we do waste water pretty much only on that and then drinking water or safe drinking water so that's going to be your water system Next slide. So out of the proposed budget, the personnel services are $28.8 million. That's for the staff to do the job that we need them to do. Other services is about $23.6 million. So what's other services? We have a lot of contracts. We've got to take it to the landfill. Jerry talked about some of his. Temp services. Although we haven't used it, we still have to budget for it. Those temp services are not our employees, so we have to bring them in from the outside. That was come out of that. We have a contract with HDR for the water plant. I think it's $50,000 a year, roughly. Anytime there's something highly technical, they did the design. We keep that contract. Mowing. For stormwater. All of the creeks and the drainage ways. So that's other services or really all those other type of contracts. I don't know.

There's just a lot of hooping and hollering going on and I didn't want that in the background.

Well, that's because I'm giving my presentation.

I just didn't know if we could get the doors open to the city council.

We don't. The normal city council may.

The doors are closed in normal.

People can come in. They're not locked, right? Correct. Then we're fine.

Okay.

Okay.

Just to make sure.

And then the last one on that upper category is materials. So when we're talking this, pipes, you can even get into stormwater, be it concrete, aggregate, any type of materials of that nature. So it's $8.7 million for a total operating expense of $61 million. Debt service. I think Cindy showed previously what the debt service is about 44 overall for the city, but out of the Bama portion of it, it's 18.3. That's largely OWRB loans, also some with the recycling and the solid waste with their vehicles. We have some loans there. So 18.3 out of Bama as debt service. Transfers out, 25.4 that goes back to the general fund. Next slide. So here's some of the pay you go capital, street sweepers. That cleans up, obviously we know that it cleans up the street, but why is that over in the stormwater side? Because all of that gets into our stormwater collection system. If I don't get it in the street, I'm gonna have to go into the pipe and the network or the creek and get it out. So that is an expense, operating expense for Bama.

Do we have two street sweepers or just one? Two.

Two. So is this gonna be a?

This is gonna be a third one.

Third one, yeah. Great question. Mini excavator to do the work to lay the pipe, clean out the channels, track loader, valve truck, so that's going to be with Tim Robbins on his side, backhoe, and then the blower replacement, $325,000. That's pay as you go. So clean water, this is your wastewater side of it. It's the biggest portion. The total loan program is $26.85 million. 24.2 is our wastewater side. Wastewater is a very corrosive environment. It heats up everything, manholes, pipes, everything. So it is a big cost throughout the system. Hakey Creek, the first two, that's RMUA. At least the first one is the lift station. That's our share of the lift station in the Hakey Creek area. park and then going upstream we've already done a phase one which is the line and goes directly into the lift station we've already made that improvement now we're going a little bit further upstream so this is probably about mid-mile between 111th and 101st back along the creek you wouldn't even see it it's back in the creek area we've got to pick up there continue going north i think the overall improvement's about a mile Elm Creek, this is a big one. In between Elm and Aspen from Indian Springs going north to the Turnpike. Through the subdivisions along the creek, you wouldn't see it again. We've already done a lot of the design, but we've got to get a little bit more design, but mainly property acquisition, and then we're ready to move to construction. $12.2 million. Turnberry, way up north, about 41st Street, Dearborn, if we were talking broken arrow names, in between 209th, 37th, and County Line, 23rd Street, rehab that lift station for a little over a million dollars. Windsor Oak is right there by Reesers. With all the new stuff come on, we knew that we were going to have to do some upgrades. It's an older lift station. We knew either force main, pumps, possibly take it offline. So we've got a million dollars in there to address that. Dresser Rand is the name I know it by. Charlie knows it by a different name. Charlie? Interplace. Yeah, it's still just ran. It's over there by Blue Bell and Brahms across the street. That's an older lift station. We need to do some construction improvements to it. And then you see the LL30. That's Lynn Lane. This is an area sub-basin of 30 and 34 I and I up in the north part of town. We go in. We make some improvements to the sanitary sewer so we're not taking on much infiltration and inflow. Because you don't want to treat stormwater. It's just a cost to treat the stormwater. So by making some improvements, you can lessen the impact. That's half a million dollars for a total of 24.2. Next one should be the drinking water, safe drinking water. Still in Old Town. I think Tim Robbins was just on the news last night talking about some of those improvements and stuff. Tim did a great job on there. So we're still probably phased. I don't even know. I've lost the phases. We've been doing a lot of improvements in Old Town. It only makes sense. That's where our water system started. It would be cast iron pipe, what's left of it. So we're going back with PVC. We've got more work to do. Lead and copper rule, that came down from the EPA to the state, and we've still got work to do. We're in really good shape as a community because we really didn't start growing until the late 60s, early 70s, so we're in great shape compared to Tulsa that's been around a lot longer and a lot larger. They've got a lot more. I think Tim and his team's doing a great job here. Transmission line, I think this is important. With all the growth you're seeing in the southern part of town, we need to finish out that connection. So we got the new water tank over there on the east side of town, New Orleans and Lynn Lane. We've upgraded some of the water line to a 24. We've got a little bit left to do and that would be, let's see, Elm from the Turnpike to Florence. So a little more than a half mile to upsize that 12 or maybe even 8 to 16. That basically completes our loop around the town. When I came in 2008, the city had just started trying to build a south loop around the town. We are now pretty well complete. The last three are upgrading to 12 inch water lines. The first one is completing a loop, and the other two are just some replacement on our water lines. for a total of $2.6 million. So that's your total Clean Water Act loan that you've already approved, and we were making application 26.8. And we pay that out of the rates. I believe that covers it. As Mr. Spurgeon says, have any questions on anything in Bama, we're more than happy to answer those questions.

You know, when I got here, we have a lot of abbreviations. And I was wondering why we had a department that had to do with McDonald's biscuits and fried pies. But I quickly learned what Bama actually meant.

Although I like the idea that you had.

That's the only Bama I knew.

Okay, so Cindy, would you want to cover the final sale?

Yeah, the general obligation, this is the final sale of 2018. It's in the section, it's in the book, but I also want to pull it up here. How do I get this here? Okay.

It's just easier to read this way than on the screen.

In 2018, voters approved $210 million. This is the last and final sale, which is a total of... little bit over 18 million dollars 875 I think it is some of the big projects is the continuation the construction for wine Houston Street for two million dollars rehab and resurface very residential streets we've talked about with Tim's group there's an additional three million dollars three and a half million dollars the total transportation we're selling in the final sale is 16 million 335 thousand dollars so it's very exciting that you know it was a 10-year bond project and now it's only 2026 and we are finished with it so this will be a cell a and cell b correct now it's not oh we don't have this is um all prop five yeah six has to be the and then um the rest of it's going to be drainage improvements we've got uh arrowwood estates uh lancaster park tiger creek um for a total of two million four hundred and forty thousand dollars in storm water that's to be one sale and depending on what happens with um the legislation we may have a small sale for the new we'll be waiting until next year correct sorry i was right there'd be a b for the new 2026. yeah it's just it's basically just the balance of the funds needed for the projects the voters approved and then we'll be done yes december will all of everything that was promised to the citizens has been sold

That's amazing. Now it's just up to Charlie. No pressure.

I think that's a segue right there, right? And that is a segue.

Oh, shoot. We went all the way back to the end, too. So let's go back to where we at. Getting caught up.

I'm sorry. I didn't realize it was going to go back.

It went all the way to the front.

There's only 89 slides.

So as of right now, the general obligation bond projects, 86 million in the current 11, 14, and 2018 respectively. Like we just talked about, the final sale, almost 19 million, which will be the last sale of 2018, and the $210 million voters approved. So is this a place we're going to have Charlie come up and talk about? Yes. Okay. So actually, while we were on the break, finance team actually passed out the proposed 2026 cell. And I've asked Charlie to actually take a few minutes and just explain the document council had the chance to take a look at.

It's also up on the screen.

Yeah. Well, thank you, and good evening. So me, personally, has been spending a lot of hours, as well as Shannon Marshall and some others on my team. And we got to go over it last week with Mr. Spurgeon, kind of the first draft of what we are proposing for the sale of the 2026 bond that we've all worked so hard on. It's complicated. I mean, it sounds straightforward. You know, I want to do this project this year, this project next year. It sounds straightforward, but it's a lot more complicated than that. One, you always got to buy property first. You got to design first and get to construction. If you move any little piece of it, it affects everything. And so we've we've. Pulled out a lot of hairs trying to figure it out. I think we have a plan that works as a preliminary plan, but that's all it is, the preliminary plan for discussion purposes. And really just wanted to give you guys the opportunity to look at it, go over it, take time to think about it, and get feedback if you want us to make more changes. And then we'll take the effort to go through it and make changes again. As we put together on the summary sheet, this first sheet, we really tried to highlight what the priorities were based off what we've heard from the council and Mr. Spurgeon and the citizens of what the priorities were that we would focus on at the beginning of the bond. And I think that's what's really important when you get into what we're looking at here. The reality is what I think should be important to you guys is the first three to four years, as Mr. Spurgeon said at the beginning of this. You know, years, a couple of things happen. Once you get into years five, six, seven, the sales start getting larger, and so we have more money. But it's also, like, we're past that priority point, and then you have a lot more flexibility to start moving things around there. We're really limited based off what our priorities are and how much sales we have in those first four years. And so that's the... the pinch point. What are our priorities to get done in that window? So we have, like you might have seen in the past, we have a huge Excel sheet that puts all this together. It's hard to read and understand in a setting like this. So what we've done is create this little cheat sheet kind of showing you what we've put together in that Excel sheet to show what our priorities are. And use that to help guide what we're going to build first. As you can see, we tried to focus on what we could do in year two as far as funding goes and for construction and what we can do that fast to show progress coming first. And so what we put in year two in construction is the Rose District Plaza. We did that because one, we can afford it, but two, we can also design it fast enough to get to where we could spend it. If I put a road in there, I can't necessarily design the road and buy the right of way and all that in that time frame. So that's one thing that we can design and build to show good progress in a timely manner. I do want to highlight just kind of how we did this cheat sheet. It's somewhat self-explanatory, but so to try to make it easy and understand what we're showing is, as you see in the yellow, we're showing construction, which means that's the year we would build it in. You go into green is design. As you guys know, we got to sell the design before we're going to get there. Blue is right away land acquisition if we need to purchase properties or anything else. And then the one you may not understand is purple is like allowances type funds. In the bond, we had placed funds for like matching money on federal dollars, sidewalk connection funds, residential street rehab. All of those we're just putting in the allowance category. It's like we don't necessarily know exactly what project they're going for, but it's an allowance we could sell at some point in the future for that designated purpose. I think what's probably most important to you all is the yellow. What year would we build that? What year would we sell the construction dollars and build it? What's most important to me and my team then is the green and blue and purple. How do I make that work to get to that yellow? And so... As we said, first year we're trying to prioritize the Rose District Plaza. Well, year two. And then we have the Washington and First intersection and the Main Street improvements on there. The reason those are there is because those funds will likely be tied to the Municipal Services Building. So that'll be the intersection work around the Municipal Services Building and then potentially some street rehab type downtown streetscaping money that goes with the Municipal Services Building. If you move into the next year, that's when we're going to get in the Tucson and Olive intersection. And the Omaha widening and the New Orleans widening. So these are the roads that we have heard the most from our citizens that are the most important. And kind of the three that we've said we've committed to the first. This is not the widening of Tucson itself on the mile. It's starting with the intersection, kind of like we've done on Aspen, because we think we can get there the fastest. But it is working on Omaha mile and New Orleans mile. We're designing New Orleans right now. Omaha, we're about to start designing on, but we think Omaha will be a little bit reduced work since we're not likely going to five lanes. It's probably just three, so we get there faster. Tucson, the reason we're not moving it up that year is because Tucson's going to be a lot more difficult. I think we talked about it during the bond process. That is a utility corridor for PSO, ONG, everybody else, so there's going to be a lot of work. the mile of Tucson itself so we want to get out there and do the intersection because that's where you get all the complaints anyway get that knocked out and then the following year hopefully be able to follow up with widening Tucson itself some things I would like to highlight one you see us getting into design a fire station one but you also see land acquisition Yep, that's where I was looking for. So you see us buying land for Fire Station 1 early, as well as Military History Museum and stuff, because we want to acquire those lands. We don't want to start designing anything before we know we have the land acquired. So in year two, you see us starting to go and acquire land for those items. And then as Mr. Spurgeon just mentioned, in year three, you see us going to acquire land for Fire Station 9, and that is because I wasn't part of that process, but I understand the agreement with the union says that we will do it by that point. So we don't intend to design or actually work on that station for many years later until the bond, but we will secure the land as soon as possible.

On Station 9.

On Station 9, correct. We're trying. It's really hard because we're so limited on funds. But when you get out to the allowance category, we're trying to get some cells in there for Proposition 6 and stormwater funds just because we're already getting to the point where we're running out of Proposition 6 funds on 2018. So we need to get some more funds in there. And then as we talked about with roads, trying to get allowances in there for the residential street rehabs as much as possible just so we can keep that momentum going and working on as many roads as possible. But we're kind of... filling out the cells with those numbers. So hitting those big projects that we can and then getting the remaining funds that we can into those allowance type categories that allow us to keep doing those little things that we're doing as well. The other priorities that I know have been important and discussed when we move into that next year will get us to the Tucson widening. Well, sorry, I skipped at the very end of year three, the senior center addition. So that is a lot you see in year three. We're talking Omaha, New Orleans, Tucson intersection, and the senior center. Technically, we can't afford all of them. The reason we're showing senior center in this year is because we are showing forward funding that one as part of this plan. So that would include us borrowing the money to build the senior center and then paying out debt servicing payments off of it with the next six years of bond sales. So instead of selling the $18 million in year three, we borrow the $18 million and then pay approximately $3 million a year for the next few bond sales. It allows us to get that built faster and push off some of those payments until later years. Then moving into year four, like I said, we'll widen Tucson Street, actually work on the relocation, go ahead and do the relocation of Fire Station 1, and then getting into the parks and rec stuff. Really want to work on Country Air early, just due to the operating expenses that come with Country Air and the lack of how much it's used. I think that'll be a great system. and then putting pickleball and volleyball in there together. It's important that those two stick together because they're going to have shared amenities, restrooms, parking, all that kind of stuff. I think once you get past that year is when things start getting a lot easier as far as bond sales. You'll see in FY31 that we go up to $34.5 million and then $35 million. It really gets a lot easier at that point. That's when the flexibility really opens up. I'd encourage you to go through this, look at it, give any feedback you want, but once we get past FY31, We can move anything. It's really easy. Anything before FY31, it's a lot tougher. We definitely will reprioritize however you want us to reprioritize, but there's not a lot of dollars available. For anything that comes in, we're going to have to be taking stuff out. I'm happy to go through the later years, but I think those are the highlights and happy to answer any questions you guys have.

Yeah, I wanted to give that to the council members. Plenty of time.

Obviously, if any council member has a question or would like to meet with Charlie and Shannon, I just need to let Lori know, and we can schedule a time for you to meet with them and understand because it is literally like a puzzle when you think about nearly every single project that's not a purchase of, like the fire trucks, for example. you've got various phases and stages. So I want to make sure council is really comfortable because we'll start planning once council approves the schedule. But once again, every future budget will be a discussion about what's being considered. And now that we have this, council will look at it every year and just make sure and confirm they want to continue to work off of that schedule.

Any questions or comments of priorities that we'd like to discuss at this point? I know it's a lot just to take in and look at.

I'll probably get with you later.

Yeah, I understand.

Yeah, I would really encourage council members to let Lori know and schedule a meeting to get your questions answered because there's 91 projects in there. And trying to determine the priority, you know, council may determine My recommendation is that we forward fund the senior center. There's also the community center that would have to be addressed sometime shortly thereafter. But there's other projects in there. I want to make sure council members are comfortable. Plus, like I said earlier, is that give us some time to actually determine what the impact of the new state law is going to have and determine the length of the sale. Thanks, Charlie. Now it's time for Tim Wilson and the proposed street maintenance program for FY2027.

Thank you, Mayor, Vice Mayor, City Council, Mr. Spurgeon. I won't be like Jerry and take 45 minutes. I'll get us out of here by 9 o'clock or so. That kind of reminds me of a quick story here. A little more than 27 years ago, I went in for my first interview with Mr. Spurgeon. And as I left my house, my wife said, how long will you expect this interview to take? And I said, I've never been to one. I assumed 10 or 15 minutes. And she said, are you ready? And I said, what's he going to ask me about asphalt or road building that he knows that I don't? So I felt pretty confident. I said, I'll be back in a few minutes. I walked in there, and he may remember this. He said, I already know you know road building and asphalt, so we're not going to talk about that. He said, I'm going to talk the first 45 minutes, and you're going to talk the last 45 minutes. And the whole time he talked to me, I was like, what the heck am I going to say for 45 minutes? Because he didn't want to talk about roads and asphalt. So we're here to talk about roads and asphalt. On this, go back to the first slide, if you would. I put that picture on there just to make you aware of, we recently, our sign shop guys installed four of the new directional signings for the Voyage solar system that you see in front of Creekwood Elementary. Does everybody know that that's there? It's a pretty neat thing that our city staff installed. Probably been five years ago, I'd say. something like that. So we placed them along. If you go up to the north, you'll see them along Lynn Lane and along Albany. So it now kind of points the direction for visitors and all in residence to go visit that. Next slide. Mr. Spurgeon mentioned a while ago about the special revenue, the .25% street sales tax that was created as a source for maintaining our city streets, our sidewalks, and our stormwater improvements. The fund can also be used for our traffic signals and traffic control devices. And Zach and I, we always budget around $5.1 million. I read tonight where it's $5.5, but we always kind of get close there. We kind of stay along there. I also added a picture on there. That's our stormwater guys pouring a concrete at Glade Crossing entrance right there, so We got crews that's out there every day in storm water pouring concrete.

Next slide, please.

We had GIS come up with this. I remember I was always told that the lane miles when I got here was 1,250. And GIS come up with a new number this past year. And on arterials, it's 490. Lane miles on collector, 43. Residential is 1,128. And the total is 1,661. So we're growing. That's a lot. Of these lane miles, 23% of it is concrete and 77% is asphalt. So next slide, please. You've heard us talk about the PCI before, which stands for pavement condition index. And every five years, we have an assessment done. And our current average PCI on all of our streets is 64. Asphalt is 63, concrete being 68. And according to the last assessment, the last company that provided the assessment said that a road goes down two points every year if you're not making preventive maintenance to it. I'd like to add that to get our PCI store to a 70, we would have to spend about $13.5 million per year for five years to get us back up to that point. Next slide, please. This chart here, the PCI is ranked into seven different categories. BA currently falls into the good category that's marked there. The good category means that some of our roads are cracked, they have a little bit of rutting. Most of the asphalt streets, they can easily be repaired with a simple mill and overlay. So in that category, it's pretty easy to prove any maintenance. Next slide, please. This one here, this slide here shows streets are just like your home the longer you put it off, the more it costs later on. We currently use four different methods to maintain our streets. And that's, first of all, we can crack seal them so water don't get in down between the cracks. and get under the road we can slurry seal them and i'll have a picture of that here in a minute after a crack seal is is done we can slurry seal it and that oil penetrates down into that asphalt it's kind of it's no longer black it's turned white from the oil drying out and then third we can mill an overlay And that's where we usually grind off two inches and put two inches of new surface back. And then on four, it's where the road is so bad that it has to be totally reconstructed. And that's whenever they get into poor condition. And you either dig them out and put in a new base. Or we have a process now where we can reclaim it and grind the asphalt and cement treatment in there. And you'll see us around town doing that. Next slide, please. And as you notice, this one says FY26, because last year, you guys, the council approved funding for some cracked ceiling and slurry ceiling in the neighborhoods listed. The picture shows our new ceiling machine there on the right. And on the left, if you look on the left of that picture, that's where they seal the cracks first, and then they're going along there sealing that. It makes a huge difference in there. As soon as you get done with that, you can go back and put new striping on there, and it looks like a new road again, and it seals that water out of there. We're currently still working on some of those. Some of them we've cracked sealed. It's a little bit of a problem. We're still trying to work out a few neighborhoods. When you go to seal them, that sealer has to set for 24 hours. It has to cure. So sealing one side of the road, have everybody park on the other side. There's a little coordination going to go with that. So it's going to be some communication efforts made to make that happen. Next slide, please. Yeah, that one. When we have a group of streets that all have the same PCI, pretty much in the same condition, we use these five items listed on the slide for consideration. We look at the pavement condition and the deterioration rate. We look at traffic volumes and classification, whether it's an arterial, a collector, residential. We look at the location of it. Is it near a school, a hospital, emergency route? We also coordinate with Tim Robbins and his utility team on future utility line replacements. I know in the past, we made plans to do a road, and Tim was just getting ready to put a water line or something in there. So we stay close on that with his team. We also look at documented complaints, how many 311 complaints we get, emails and all. Next slide, please. For our proposed FY27 maintenance projects, number one, in District 4, we want to mill and overlay South 9th Street. That's also known as, we call it Sewer Plant Road because it leads down to the treatment plant. And that's at a cost of $153,000. In District 3, we want to start the engineering design work on Vandiver Acres, and it's actually going to be Vandiver 1 through 5. That's at a cost of about $35,000 to design that project. In District 2, we propose mill and overlay in Lancaster Place. That's on Houston, just west of Olive. And that's at a cost of $230,000. The fourth one is in District 3. We propose 137th Street, which is a gravel road, and it's across from Oliver Middle School. There's a gravel road there that they've built through four new homes, some more coming. And we're going to build a whole new road right there. and that's at a cost of $130,000. In District 1, we propose South 245th East Avenue. That's out on East Kenosha on the north side of Kenosha. There's a new development there that used this. This road a lot. It's in poor shape, so it will have to be reclaimed. And that one's at a cost of $205,000. And District 1, we propose East Houston, and this one's going to make a lot of folks out east happy, on East Houston midway to Oak Grove. That's our newly acquired road from Wagner County. And that one's going to be $850,000.

It says Oneida, but it shouldn't be.

It says Oneida, but we are going to East Mountain.

Oak Grove.

Oak Grove.

Oh, you live up there. One thing at a time, Curtis. Priorities. In District 4, we propose milling and paving Main Street from the railroad tracks down to Kenosha. So that's going to take a lot of, that's going to be a coordinated effort to make that happen. But it'll look so much nicer being black and all new stripes and all that. We're going to actually start this next week right after rooster days. We're going to do from the track south to 81st Street, and we're going to mill and overlay that next week. And then as Tim Robbins gets the utility, the water line in down south, we're going to mill and pave that this summer too. Figure out where I'm at here.

I'm fine with Ward 2 not getting anything because we've gotten a lot this past year, too.

We still have projects to be determined.

They got some.

We got a lot.

In District 4, we proposed $750,000 also each year to our to-be-determined projects. So this picture in this slide is our paving crew. I'm sorry. That's a picture of our city paving crew that's out when they paved Evans. That was north of the riding about out there on 101st. So that made it so much nicer.

Our proposed FY27 miscellaneous projects.

is annual street maintenance for crack sealant, slurry seal, possible thin overlays. We've proposed $65,000. We propose $75,000 for alley improvements in our downtown district. We also proposed $400,000 for a third party to conduct a street condition assessment. I told you every five years we do it. The last time it was done in 2022. And so with 2027 coming up, it's due. It's time to do it again. The next proposal is $100,000, and that's for engineering department for their downtown alley improvements on the east side of Main Street. And the next proposal is also for engineering project. And that's for sidewalk connectivity for $500,000. And the first location of that is in District 2, a sidewalk in front of the mat on Elm Place. And the second location is in District 3, and that's on Tucson from Aspen to Elm Place, sidewalk there. And the last proposed project is also a drainage project that we have in Henshaw Park. And it's a pretty major drainage project, and engineer's estimates was about approximately a million dollars. So it's something that we have to do this year. So that's actually going to be bid out.

Before you go on, I see you have alleyway improvements and alleyway reconstruction. Give me an example of what alleyway reconstruction would look like versus just improving one.

The alleyway improvements, we put that in each year because we try to pave a few alleys in the old part of the district. And as community development's allowing the homes to have alley accesses, we've got to improve those alleys after those homes are built. And the other alley improvement is, like I said, engineering to where the main street on the east side of Maine, the alley behind Lake City Hall, all down through there, they're going to totally redo those like they did on the west side of Maine. So that's the difference there. And with that, I'll take any questions that you have. Looks like it's level. The water tower. That's a good example. That's Washington, east of County Line. And that's where we've got a machine now that'll go in there and chew it up. And it'll pulverize the asphalt. And we have a cement truck come in there and put the powdered cement down. And it'll blend all that in there together. It's called a cement treated base. And then it'll harden up in a few days. And then right here it looks like a dirt road, but that's a cement treated base. And then we come in there with two lists of asphalt. It's an old process, but it's new to Broken Arrow. Any questions for Jim?

The final area before we wrap up is the manual of fees. And Cindy's going to actually cover the manual of fees.

The manual of fees, it's a list of fees and costs for development, license, registrations. They have park fees in there, cemetery fees, utility rates. It's one place that a citizen can go look online, and it's published on there, so they can look and see what it costs. Like if they need a contractor, they want to use the parks, or they... water tap and those are all included in the manual fees and this is something we look at every year a lot of them we do like cemetery is a prime example the cpi lately for the cemetery has been running any between four and five percent we don't like to increase them that high so like cemetery this year we only did a two percent and that's what we've been doing for the last few years and that was a nice touch um

waiving the no charge at the cemetery fee for the baby land gravesides. I thought that was a nice touch.

So there's been discussion on the community center fee. And Matt, if I'm incorrect in any ways, you can correct me. You know, our community centers, there is no fee for residents and there's no fee for non-residents. But we are starting to feel that a non-resident should be paying for the use of our facilities. so matt did a lot of it right yes i think it's about 51 to 53. it's page 18 in the section seven yeah section seven so like for the community community center fees family membership first uh broken arrow residents there's no cost but if you live outside another community the family membership would be 45 Matt did a lot of research with other communities too, and we're one of the few, correct, that does not charge for a non-resident fee. So we're trying to incorporate those. And then we also, for facility rentals, we had a resident fee, a non-resident fee currently, but we upped the non-resident some. So like, meeting room without a kitchen, $35 an hour for a resident. Non-resident fee is $54. So it went from basically we increased the non-resident fee 20% or $9 on that particular rental.

Have we looked at our agreements with our user groups as far as what the city gets out of those, like our sports groups and those kind of things? I don't know how often we review that.

They're reviewed annually, and that's something that we've talked about. There is a need to actually increase those costs. Quite frankly, there's a lot of pushback because in many cases those costs are passed on to our citizens themselves. because there are kids playing, and so trying to find the right balance. But there does need to be, I mean, we're never going to be able to generate the right revenue, some people said, in order to pay for $46 million worth of improvements. Right now, I think the total amount that we collect from them, for argument's sake, is around $150,000 a year. Obviously, it's a challenge because we know those are going to be passing on to the parents. And so I struggle. I really do. But I do think that that needs to be looked at. And their contracts come in different times of the year. And so Matt and Kenny and I have talked about that we need to go in and actually look at slightly increasing the fees or charges. for the uses, because what we get is a per game charge. And actually get on some type of, whether it's a five year scale to where it's incrementally increased. But at the same time, remember that the challenge is, in many cases, those are going to be passed on to our parents. I really understand, because I are one of three children who play.

Just got to find that balance. I know it's a process.

I mean, before we go on, if the council members, I mean, obviously my concern about that is that the council, if there was going to be an increase, And any fees, I think this would be where the council may actually get some pushback. And so what I'm going to ask, now I'm thinking about it, I'm going to ask Kenny and Matt to just put together a summary of what each sport pays for the use of the field. And that way you'll be aware. And then as we start to begin negotiations, that's something we're going to be visiting with them about.

but overall the manual fees there wasn't many changes except what we've discussed like the community center fees battle creek golf course which was on page 22 raised their rates either like two dollars or four dollars there was nothing significant it's just operational and then the cemetery um to keep it reasonable even though the cpi was much higher um staff recommends two percent and then we did remove the baby land cost And then utility rates will be discussed in a workshop in the summer. But all community development fees, all that stuff, all stay the same this year.

So as I mentioned earlier, is that part of the work session we're going to do, there'll be an additional discussion about the manual fees. Anything else, Cindy?

Nope, I think that is because we did not, we really tried hard this year to keep the fees where they were at.

So Mayor, members of council, Just in wrapping up, I want to take this opportunity to thank you for your time. Obviously, what you approve later in June will actually be something that you'll be approving items and purchases throughout the entire year. So thank you for your time, and obviously your input is very important. Also to the finance department led by Cindy Arnold. I mean, there's a lot of work that goes into preparing this document. Also, there's in my budget message I added for the first time about the audit. It just seems like it's real easy for people online to make to make accusations and comments about, you know, the city and this and that. But we, our audits are basically, what's the term? I forget. Unqualified. Unqualified, which is a good comment. And the budget awards we've received for, I think, at least six or seven years. So I want to thank Cindy and Tom and the entire team for their putting everything together. And obviously, the level of just talent amongst the directors and their teams. And I appreciate everyone. This was a year where obviously the revenues were tighter than they've probably been in all the years that I've been here. So to me, I ask every one of them to put together a budget that they think will work within the dollars we have. And I'm proud to say they did that. And so I want to thank them as well. I just want to reiterate is that we're asking the council to approve a budget for next year of $487,039,418. It's a slight increase of over last year's budget, and we'll be glad to answer any questions at this time.

Any questions or discussion? All right, seeing none, I'm going to take a motion.

Yes. Green. Yes. Ford. Yes. Parks. Yes. Wimpey.

Yes.