Sallisaw Approves $31M Budget Amid Rising Employee Costs

Sallisaw's finance director Robin Haggard presented a $31 million general fund budget projection for fiscal year 2027 to city commissioners, highlighting revenue sources and mounting operational expenses.

Electric revenue accounts for 37.32% of total city revenue, followed by sales tax at 22.76% and water and sewer revenue at 11.87%. Landfill and sanitation services contribute 10.94%, while telecommunications revenue represents 5.39%.

Salaries and benefits consume 38% of the budget. Daily operations account for 22%, purchase power costs represent 20.67%, debt service takes 8.75%, capital projects comprise 6%, and telecom service fees make up 4%.

Health insurance expenses will increase 13%, adding roughly $240,000 to the budget. Retirement contributions total about $1.1 million, with the city contributing 13.5%. Haggard projected net revenue of approximately $6.4 million.

The city's sales tax rate stands at 9.917%, unchanged since 2013. The city receives 4%, the county collects 1.417%, and the state takes 4.5%. All sales tax revenue flows to the Sallisaw Municipal Authority to cover bond obligations before redistributing to the general fund, capital improvement projects, and the Sallisaw Economic Authority for the 2025 hospital bond.