City officials in Guthrie are preparing for a challenging upcoming fiscal year as sales tax collections continue to decline overall in 2024, prompting the city to stay cautious with budget numbers for the upcoming 2025 fiscal year.
With only one month left in the current fiscal year, forecasts show a decrease in actual sales tax collections, affecting the budget planning for FY25.
This month, the City of Guthrie received $733,028.11 in sales tax collections, a 4% decrease from the same month last year. Year-to-date (YTD) collections stand at $7,974,630, which is 1.3% below projections.
The city’s fire department has already felt the impact of reduced revenue, receiving only two of the three positions that were initially budgeted for in the FY23-24 budget. Looking ahead to 2025, capital purchases are expected to be kept to a minimum, with the city focusing on fulfilling its essential duties.
Despite the financial challenges, city officials are considering a 2% Cost of Living Adjustment (COLA) for non-union employees, along with merit raises ranging from 2.5% to 5.0%. However, these adjustments come alongside an estimated 20% increase in health insurance premiums. Meanwhile, negotiations continue with the police and fire unions to finalize the FY24-25 Collective Bargaining Agreement.
However, it’s not all bad news. The city’s Use Tax collections have shown positive growth, with a 7% increase this month compared to last year. Year-to-date Use Tax collections are 9% higher than in 2023, totaling $1,200,361, exceeding projections by $101,136.
The budget is expected to be formally approved on September 3rd, following at least one public hearing.
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