Oxford city funds, spending may increase in FY26

The revenues for the City of Oxford’s general fund is expected to increase with boosted tax revenues in the next fiscal year, but expenditures could also increase, according to a proposed operating budget.

During a workshop meeting led by City Manager Douglas Elliott Monday, the Oxford City Council discussed its proposed operating budget for Fiscal Year 2026.

Elliott told the council there will be an expected revenue increase in the income tax, hotel tax, property tax and interest on its investments which should boost its general fund for FY26.

The proposed operating expenditures plus transfers to other funds, if approved, would total more than $16.8 million for FY26, a 6.6% increase from the FY25 budget. Elliott said this increase is due to a boost in salaries, wages and withholding costs, as well as having 27 pay periods.

A $4.8 million advance paid toward the Oxford Area Trails System (OATS) in FY25 will not be repaid until the end of FY26, Elliot said. He said this means there will be a large decline in the general fund’s beginning balance for FY26. Elliot estimated there is still $3.4 million left to be paid in FY26.

Data presented by Elliott showed a drop in the general fund ending cash balance from the end of FY24 to the end of FY25 of more than $4.2 million. The FY25 ending cash balance, Elliott said, is expected to be more than $5 million.

But increases in tax revenues of 30.3% for the hotel tax and 5.9% for the income tax, a 19.5% increase in licenses/permits/inspections, and a 13.6% increase in investment income are expected to bring the general fund revenue up to more than $16.3 million. This is a 5.6% increase from the FY25 operating budget.

Elliott said police, traffic control and street lighting comprise the largest portion, or 53.3%, of the general fund operating expenditures in the proposed budget, and increased by $391,325 over FY25. The budget for law enforcement and traffic control increased by 4.8% and 20.1%, respectively.

Among other budgetary increases, the budgets for the Woodside Cemetery, public health, senior citizens and the community center did not increase.

Other significant budget increases were for urban forestry (28.4%), the Oxford Aquatic Center (15%), parks maintenance (11.6%) and recreation programs (9%).

Overall, personnel make up 72.36% of the general fund for the proposed FY26 operating budget, while operating expenses make up the other 27.64%.

For FY26, Elliott said Community Development Block Grant (CDBG) funds decreased by 46.5%.

Among several budget items, the Affordable Housing Trust Fund is expected to see a large increase in the FY26 operating budget due to various Talwanda Oxford Pantry and Social Services (TOPSS) grants, Elliott said.

Revenues for FY26, the fire and EMS fund are expected to increase by 6.3% from FY25. The fund includes wage increases for 15 fire union staff among other wage increases.

No expenditures have been proposed for FY26 for small business loans, and all local COVID-19 relief funds have been expended, Elliott said. The American Rescue Plan Act (ARPA) COVID-19 funds are encumbered and must be used by Sept. 30, 2026.

No expenditures were proposed for the opioid settlement fund.

Elliott reviewed the capital equipment and improvement funds, including parking, OATS and wastewater improvements, as well as a water treatment plant modernization that is planned to include $647,000 in expenditures for FY26.

Elliott reviewed recent priorities by council, including an economic development strategic plan, the bike and pedestrian master plan, the installation of an Amtrak platform and electric vehicle chargers, as well as the exploration of solarizing a municipal building. 

The council is also prioritizing a solar array project, a complete streets resolution, the deer management program, the establishment of a funding program for expanded childcare facilities and the creation of a childcare forgivable loan program, among other ongoing projects.

Assistant City Manager Jessica Greene said the city is working actively with The Y to see if the organization will bring a childcare operation to Oxford. She said The Y is currently performing a market analysis and feasibility study.