The Broken Arrow City Council has officially adopted the Fiscal Year 2027 Municipal Budget, outlining nearly $487 million in planned expenditures aimed at enhancing public safety, infrastructure, utilities, and tourism throughout the city.
Approved during the June 15 council meeting, the FY-2027 budget totals $487,039,048 and serves as the city’s financial roadmap for the fiscal year running from July 1, 2026, through June 30, 2027.
According to City Manager Michael Spurgeon, the city’s goal remains balancing community expectations with long-term financial stability.
“The City Council and the administration’s top priority remains the development of a municipal budget that meets community expectations while remaining financially stable,” Spurgeon said.
Budget Highlights
The budget includes:
- Operational Expenses: $194.6 million (up 7.4%)
- Capital Outlay: $242.7 million (up 5.2%)
- Debt Service: $49.7 million (up 18%)
Overall, the FY-2027 budget is approximately 7.3% higher than last year’s budget, representing an increase of more than $33 million.
City leaders say much of that increase is tied to investments in infrastructure and public improvement projects designed to support Broken Arrow’s continued growth and quality of life.
Major Investments Planned
Among the largest projects included in the budget are:
- Completion of Fire Station #8 in northeast Broken Arrow.
- Expansion of the Broken Arrow Police Department’s Real Time Information Center.
- Approximately $27 million in water utility improvements, including replacement of aging water and sewer lines.
- Upgrades to the city’s water treatment and wastewater facilities.
- Continued investment in roads, stormwater systems, parks, recreation facilities, and other capital improvement projects.
Spurgeon noted that roughly 60% of the city’s budget is dedicated to capital projects and debt service, while about 40% funds day-to-day operations.
“For us, for our community and our priorities, only 40 percent of our budget is for operations,” Spurgeon said. “The rest is to expand the infrastructure that we have in our community.”
Financial Challenges Remain
City officials acknowledged several ongoing budget challenges, including flat sales tax growth, inflation, rising costs for goods and services, and supply chain issues.
Unlike many local governments, Broken Arrow cannot use property tax revenue to fund general city operations.
“The only thing we use property taxes for is to pay for general obligation bonds that voters approve,” Spurgeon explained. “By state constitution, the city is not allowed to receive any funds from property taxes.”
Tourism and Economic Growth
The city is also placing an emphasis on expanding tourism as an economic driver.
Funding will support efforts such as the Film Incentive Program and attracting conferences, sporting events, and other gatherings that bring visitors to Broken Arrow. City leaders say increased tourism helps generate hotel stays, supports local businesses, and boosts sales tax revenue that funds municipal services.
Looking Ahead
The FY-2027 budget continues to focus on five key priorities:
- Public Safety and community well-being
- Economic Development and growth
- Innovative city operations
- Fiscal sustainability and strategic investments
- Transparency and communication
Residents interested in reviewing the complete FY-2027 Municipal Budget can access it online through the city’s Finance Department or view printed copies at City Hall and the City Clerk’s Office.
