Meeting Summary
The Finance Committee received updates on the preliminary FYE 2025 audit, noting good progress but a potential delay in the single audit portion. Discussions also covered the need to update Norman Forward park master plans with current cost estimations for future bond elections. A significant portion of the meeting focused on exploring options to increase capital funding for parks through revised impact fees and guest room taxes to address aging infrastructure and development needs.
Financial Matters
Preliminary FYE 2025 City of Norman Audit
The audit is progressing well, but the single audit portion for federal grants (including CDBG, ARPA, FTA) is delayed due to the federal government's late issuance of the compliance supplement.
Parkland Development Fund
The fund, established in 1994, collects $150 per dwelling unit. It currently has an estimated reserve balance of $1.4 million, but funds are highly restricted by ordinance to specific neighborhood and community parks, limiting their usability. The average cost of a playground has increased from $35,000 in 1994 to over $200,000 today.
Room Tax Fund
The current 8% room tax allocates approximately $600,000 annually to parks. An increase of 1% could generate an additional $493,000, while matching Oklahoma City's 9.25% rate could dedicate about $1.2 million to parks. This revenue source is considered progressive as it increases with hotel room costs.
New Development Excise Tax
Residential collections for the year totaled $280,000, and commercial collections were $57,000. Both figures are below budgeted revenue, indicating variability in this funding source, particularly on the commercial side.
Coming Up
Deadlines
- Federal government's compliance supplement for the single audit (typically issued in March, currently delayed).
Watch For
- Updated master plans for Norman parks to be presented to council.
- Further discussions and potential proposals regarding increases to park impact fees and/or guest room taxes.
- An update on the Salvation Army homeless shelter expansion project, potentially with Salvation Army representatives.
Agenda Summary
Discussion regarding the preliminary FYE 2025 city of Norman audit.
A presentation on the progress of the city's annual audit, indicating it is more than halfway complete with no significant issues. However, the single audit portion for federal grants may be delayed due to the federal government's delay in issuing compliance supplements.
Update and discussion regarding Norman Forward project costs.
Review of remaining Norman Forward park projects and the necessity to update master plans for parks like Griffin, Ruby Grant, Ree, Northside Water Treatment Plant fields, and Saxon. The goal is to reflect current community needs and generate accurate cost estimations for potential future bond elections.
Discussion regarding park impact fees and guest room taxes.
An examination of current capital funding for parks, highlighting the limitations of the outdated parkland development fee ordinance (from 1994) and the potential to increase revenue through revised impact fees (e.g., per square foot model) and/or an increase in the guest room tax to meet growing park infrastructure needs.
Discussion regarding monthly revenue and expenditure reports.
A review of the city's monthly financial reports, specifically noting the variability and lower-than-budgeted collections from the new development excise tax, and the consistent growth in room tax revenue.
Discussion about Salvation Army expansion of their homeless shelter.
A request for staff to provide an update on the Salvation Army's previously discussed homeless shelter expansion project, including its current status, funding challenges, and recent changes in nearby property ownership.