Fund Balances and Financial Reserves

Oakwood enters 2026 with a strong and sustainable financial position. Appropriate fund balances across operating and enterprise funds provide flexibility to manage unforeseen expenses, maintain service continuity, and support strategic investments.

Building on work initiated in 2025, staff will continue evaluating the establishment of formal fund balance policies in 2026 to guide long-term financial decision-making and ensure appropriate reserve levels.

Personnel and Staffing Levels

The 2026 Budget maintains 89 Full-Time Equivalent (FTE) positions, consistent with recent years and below the City’s historic high of 95 FTEs. Staffing is allocated as follows:

  • Public Safety: 34 FTEs
  • Public Works: 41 FTEs
  • All Other Departments: 14 FTEs

The budget includes targeted vacancy realignments identified through the organizational review. These adjustments are cost-neutral and designed to strengthen service delivery while aligning staffing with operational needs. Staffing levels will continue to be evaluated to ensure efficiency and responsiveness.

Significant Assumptions – General Fund Revenue

Staff expects total General Fund Revenue to increase $0.30 million (2%) to $15.86 million in 2026 from $15.57 million in 2025.

  • Income Tax: 2026 income tax collections, which were trending 3% below actual collections through December 2025, project to be flat from 2025 levels.

Revenue assumptions for 2026 reflect continued conservative forecasting. Income tax collections are assumed to remain stable, and staff will continue pursuing grant funding and partnerships to support infrastructure and capital needs, particularly in water and wastewater systems.

Significant Assumptions – General Fund Expenditures

Total General Fund expenditures are budgeted at $18.3 million for 2026. This is an increase of $.43 million (2.4%) from the 2025 Original Budget, which is attributable to higher transfers out to the Capital Improvements Fund ($1.2 million) to support capital projects, the parks and recreation operations fund (.17 million) to support operations next year.

Planned 2026 Transfers include:

  • Refuse: $400,000
  • Smith Memorial Gardens: $28,000
  • Streets: $660,000
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