January 7, 2026 City Council Meeting

City Council reached a consensus to move forward with placing an $8 million bond initiative for the construction of a new 100-bed permanent homeless shelter on the April 2026 ballot.

City Council reached a consensus to place an ordinance amendment on the April 2026 ballot to increase the guest room tax from 8% to 10% and extend its applicability to recreational vehicle spaces leased on a short-term basis.

City Council reached a consensus to place a charter amendment regarding the city auditor language on the April 2026 ballot.

City Council reached a consensus to place a charter amendment to move up the start date for council member terms (swearing-in date) on the April 2026 ballot.

Discussion and a potential ballot initiative regarding increasing council member stipends were postponed to a future date, not to be included on the April 2026 ballot.

A proposal to expand the purpose of a portion of the guest room tax increase to other city priorities (beyond tourism and parks) was postponed due to concerns about voter optics and potential opposition.

Homeless Shelter Bond Proposal

A 20-year bond initiative to construct a 100-bed permanent homeless shelter on Reed Avenue with an estimated cost of $8 million. This includes architect fees, contractor fees, and a $500,000 owner contingency. The property tax increase is approximately $10.36 per year for homes valued up to $300,000.

Current Homeless Shelter Operational Costs

The current city-owned, contractor-operated shelter costs approximately $700,000 per year from the city's discretionary general fund.

Guest Room Tax Increase

Proposal to increase the guest room tax from 8% to 10% and apply it to recreational vehicle spaces leased on a short-term basis. The 2% increase would primarily be dedicated to parks capital projects.

Projected Guest Room Tax Revenue (FY26)

Based on a projected gross revenue of over $49 million, the current 8% tax yields $3.9 million. Under the proposed 10% tax, the additional revenue would significantly increase funding for parks.

Cost Incurred for Homeless Shelter Project to Date

Costs incurred for land acquisition ($75,000) and initial design work ($20,000) for the proposed homeless shelter.

Estimated Total Cost of Shelter Project (including debt service)

The estimated total cost of the shelter project, including debt service for the bond, is projected to be between $10 million and $12 million.

Sale of Grey Street Property

The sale of the current Grey Street shelter property is estimated to generate approximately $750,000, which could be used to reduce the debt service of the new bond.

Presentation and discussion regarding the results of the homeless shelter survey

Amber Integrated presented the results of a survey of 339 registered voters in Norman regarding homelessness, the existing shelter, and a proposed bond for a new shelter. Key findings included widespread recognition of homelessness as a serious issue (81%), broad support for shelters (86%), low awareness of current shelter funding (64% not fully aware), majority support for moving the current shelter (64%), and 50% initial support for an $8 million bond for a new 100-bed shelter. Opposition was primarily driven by cost and taxes, not rejection of shelters.

Discussion regarding the design, timeline, and cost estimates for the construction of a homeless shelter

FSB presented the design for a two-building, 100-bed permanent homeless shelter on Reed Avenue, including dormitories for men and women, family apartments, and respite rooms. The design incorporates prefabricated metal buildings for cost efficiency, ample landscaping, and security features. The estimated all-in cost is $8 million, with a projected property tax increase of approximately $10.36 per year for homes valued up to $300,000. Staff recommended a single-phase construction approach to avoid additional costs.

Continued discussion regarding possible amendments to the guest room tax ordinance

Discussion focused on increasing the guest room tax from 8% to 10% and expanding its applicability to recreational vehicle spaces leased on a short-term basis. The proposed increase would primarily benefit parks capital projects. A separate ballot question was considered for allocating a portion of the increase (0.25% of the tax rate) to other city priorities, but this was tabled due to concerns about voter perception and potential opposition.

Continued discussion regarding possible amendments to the city charter

Discussion covered three areas: city auditor language, a stipend for council members, and moving up the start date for council terms. There was consensus to move forward with amendments for the city auditor language and the council member swearing-in date to the April ballot. The proposal for council member stipends was postponed due to concerns about voter fatigue and the timing of such a request.