Duncan has taken steps to prevent a budget shortfall in fiscal year 2026, but additional measures may be necessary, said City Manager Chris Deal. “Although significant attention was given to department budgets, the city is still challenged with a shortfall in net revenues/’ he said. “Due to the shortfall in revenues, the transfer of residual equity from DPUA (the Duncan Public Utilities Authority) is critical to the funding of essential city services. However, even with the additional source of revenue provided by DPUA, revenue shortfall remains a concern that will need to be addressed over the next 12 months.” Following a public hearing, the Duncan City Council voted 4-0 last week to adopt the city’s $62.47 million budget for FY 2026. Councilman Jimmy Peters was absent for that part of the meeting. Officials predict the city will collect approximately $62.47 million in revenue in the coming fiscal year, most of which will be from sales tax. That figure includes about $54.86 million in operating revenue for the general fund and the Public Utilities Authority, as well as about $5.06 million in revenue for capital improvements and approximately $2.55 million for economic development and infrastructure. Officials are not expecting sales tax revenue to increase in FY ‘26, given an uncertain local and national economic climate, Deal said. “Sales tax is the major source of revenue in the city’s operating funds, as well as the Capital Improvement Projects Fund and the Economic Development Funds,” he said. “Sales tax revenue was budgeted to reflect no increase in projected amounts received in 2025.” Balancing the books City officials built a conservative budget for FY ‘26, based on the possibility of a revenue shortfall if an economic downturn materializes, Communications Director LoisDawn Jones said in an email. “If there is a shortfall in revenue after first quarter of 2026, there will be adjustments made to the budget if necessary,” she said. “The 2026 budget is based upon projected revenues as was received in 2025 actual revenues.” Jones said the city did not have to cut any programs, services or staffers to balance the books.
Eric Swanson has more than 20 years’ experience covering local government and cnminal justice in Oklahoma, North Dakota and Kansas.