LAWTON – City officials are bracing for a series of tough choices because of a multimillion-dollar gap in the municipal budget for Fiscal Year 2026.
Largely because sales tax collections are projected to be lower than initially estimated, city officials anticipate a $40 million revenue shortfall if no adjustments are made. That deficit is “the difference between what we anticipate spending and the amount of revenue we anticipate receiving” in FY26 from sales taxes and city services (utility bills for water/sewer service, trash collection/disposal, and assorted municipal fees), City Manager John Ratliff said.
“The last projection I received on sales tax was that we were about 4% below what we were anticipating,” he told Southwest Ledger.
In addition, $10 million dedicated to streets and $2 million for parks are earmarked in the FY26 budget, because of a policy the council adopted last May, and those amounts will increase by 2% annually unless the council votes to suspend or reverse that decision.
“This is the ugliest budget I’ve seen, probably since I’ve been here,” said Mayor Pro Tempore Randy Warren, who has served on the City Council off and on “for about 19 years” since he was first elected in 1995. And he warned that “budget cuts are coming.”
“We will no doubt have to cut some projects and programs in order to pass a balanced budget,” echoed Ratliff. “Some areas will be more affected than others.” The council and city staff will huddle over the next three months to establish priorities, he said.
City officials “will likely have the budget passed by our target date” of June 20, but no later than June 23, Ratliff said. The municipal budget act “requires that we pass a balanced budget no later than seven calendar days before the end of the fiscal year” on June 30, he explained.
Besides budget reductions, a hiring freeze might be an option, too, Mayor Stan Booker told the Ledger.
A study that Lawton CPAs Hatch, Croke & Associates performed on the city’s management procedures in FY21 and FY22 indicated Lawton has “about 30% more employees per capita” than does Norman, one of Lawton’s ‘peer cities,’ Booker contends. As of June 30, 2021, Lawton, with a population of 82,670, had 9.8 city employees per 1,000 residents; Norman, with a population of 128,026, had 7 city employees per 1,000 residents.
“We’re trying to make government more efficient,” Booker said.
The City Council decided Friday to table discussions on potential changes to the City Charter in order to focus on the FY 2025-26 budget. Unlike the federal government, which is notorious for deficit spending, the City of Lawton must balance its operating budget.
The budget process began in January with meetings across the city’s departments. With a decline in sales tax receipts, the city’s primary source of revenue, city leadership must prioritize financial planning. “Historically, this time of year is reserved for budget discussions to ensure that a responsible, sustainable plan is in place before the new fiscal year begins July 1,” Ratliff said.
While updates to the City Charter are important, “They are not as urgent as the budget, which directly affects city operations and services,” Booker said. “The council will revisit charter discussions when time and resources allow, but for now their focus remains on addressing the budget challenges ahead.”
City Hall will notify citizens when the charter meetings have been rescheduled, said Caitlin Gatlin, the city’s communications manager.
The council will decide whether any charter changes should be submitted to local voters at an election scheduled for Sept. 9.