Meeting Summary
The city council held a public hearing to discuss proposed budget cuts aimed at addressing a projected $3.5 million shortfall in the general fund. This deficit is primarily due to the continued apportionment of sales tax to the University of North Park TIF fund, which was expected to cease. The proposed cuts include reductions in emergency reserves, various city programs, and funding for outside agencies, with council members and the public debating the impact and alternative revenue sources.
Upcoming Community Events
League of Women Voters Candidate Forum
For races of Wards 2, 4, and 6.
Financial Matters
General Fund Shortfall
The general fund is projected to end the fiscal year with only $700,000, an unacceptably low level, primarily due to the continued apportionment of approximately $300,000 per month in sales tax to the University of North Park TIF fund, leading to a projected $3.5 million shortfall.
Proposed Budget Reductions (Initial List)
Areas proposed for cost-cutting include assuming the 1% emergency reserve will not be spent, drawing down the rainy day fund (without going below minimum), stopping the mosquito control program, eliminating fireworks for Norman Day Festival, and ceasing funding for outside agencies (Firehouse Art Center, Sooner Theatre, Social and Voluntary Services Commission agencies).
Westwood Golf Course Subsidy
The general fund currently subsidizes Westwood Golf Course operations by approximately $585,000 annually, with discussions on potential privatization, reduction in size, or increased fees.
Police Overtime
Concerns were raised about police overtime costs, with suggestions for event organizers to cover costs for non-city sponsored events and a review of current overtime situations by Chief Foster.
Transit System Capital Costs
The city needs to find an estimated $6 million for a new bus maintenance facility by June 30th, as current sales tax revenue covers operations but not capital costs. Additionally, $200,000-$300,000 for bus painting and $300,000 for fare boxes were identified as potential deferrals.
Norman Regional Hospital Land Sale
Discussion regarding the potential sale of city-owned land to Norman Regional Hospital, with an estimated return of $5.8 million, which could help address budget issues.
Capital Fund Allocation
Suggestions were made to reduce the sales tax allocation to the capital fund (currently 0.7 cents, approximately $10 million annually) to address general fund shortfalls, potentially requiring debt financing for capital projects.
Hotel-Motel Tax Allocation
Discussion about reallocating a portion of the $2 million annual hotel-motel tax budget, much of which currently goes to the visitor bureau, to help cover city expenses.
Census Consultant Contract
A proposed cut of $112,000 by not proceeding with the census consultant contract, though the Mayor expressed strong opposition due to the long-term impact on federal funding.
Individually Assigned Police Vehicles
Consideration of cutting individually assigned police vehicles, which could lead to savings in fuel costs but increased wear and tear on vehicles, with differing views between Public Works and the Police Department.
Stormwater Utility Funding
Discussion on the general fund's allocation of approximately $3 million to stormwater utility, noting that a voter-approved stormwater utility could alleviate this burden.
Public Comments
Public comments focused heavily on the proposed budget cuts, with strong opposition to reductions in social services and the census consultant contract. Many speakers suggested alternative revenue sources, such as re-evaluating the municipal golf course, adjusting the hotel-motel tax, and exploring new connection fees. There was also significant debate regarding the legal interpretation of the TIF petition and its impact on the city's ability to amend the project plan.
Coming Up
Tabled
- Council's ordinance to amend the University of North Park TIF project plan remains in abeyance due to a certified petition.
Deadlines
- Deadline for current transit maintenance facility contract is June 30th.
Watch For
- Court hearing on the TIF petition challenge on February 24th, with a final answer potentially 60 days after the judge's order.
- Decision on the Norman Regional Hospital land sale expected in early February.
- Discussion on establishing a citizen budget committee at the March Oversight Committee meeting.
- Further discussions on long-term revenue solutions and capital project financing.
Announcements
- League of Women Voters candidate forum for Wards 2, 4, and 6 races to be held at 6:30 PM.
Agenda Summary
Public Hearing on Proposed Budget Cuts
Presentation by the Director of Finance on the city's mid-year budget review, highlighting a projected $3.5 million general fund shortfall due to ongoing sales tax apportionment to the University of North Park TIF fund, and discussion of proposed cost-cutting measures.