Meeting Summary
The city council unanimously adopted the FYE 2026 city operating and capital budgets, including the Norman Convention and Visitors Bureau budget, after approving several amendments. Key amendments included increased allocations for social services, parks and recreation, solar arrays at city facilities, water reclamation building renovations, and on-demand transit services. Public comments raised concerns about financial projections and the impact of sales tax revenue.
Key Decisions & Votes
Grammatical and Typographical Corrections to Budget Documents
N/AA motion to make necessary grammatical and typographical corrections to the budget documents with no financial impact was unanimously approved.
Increase General Fund for Social and Voluntary Services
N/AA motion to increase city council allocations to the general fund by $25,000 for social and voluntary services contributions was unanimously approved.
Increase Parks and Recreation for Historical Museum and Performing Arts
N/AA motion to increase parks and recreation allocations in the general fund by $11,200 for contributions to the historical museum and performing arts studio/depot was unanimously approved.
Fund Solar Arrays at Sanitation Transfer Station
N/AA motion to increase sanitation fund allocations by $200,000 to fund solar arrays at the transfer station was unanimously approved.
Fund Solar Arrays at Water Line Maintenance Facility
N/AA motion to increase water fund allocations by $125,000 and water reclamation fund allocations by $125,000 to fund solar arrays at the line maintenance facility was unanimously approved.
Renovations to Water Reclamation Administrative and Storage Buildings
N/AA motion to increase water reclamation fund allocations by $3,800,000 to fund renovations to the water reclamation administrative and storage buildings was unanimously approved.
Community Development Block Grant Fund Adjustment
N/AA motion to increase community development block grant fund revenue and appropriations by $90,849.55 to reflect the updated FYE 2026 award amount from HUD was unanimously approved.
On-Demand Transit Services Funding
N/AA motion to increase transit and parking fund allocations by $665,000 for on-demand transit services, with corresponding revenue increases from OU and federal grants, was unanimously approved.
Adoption of FYE 2026 Budgets
35:00The FYE 2026 city operating and capital budgets, along with the Norman Convention and Visitors Bureau budget, were unanimously adopted as amended.
Financial Matters
General Fund Allocation for Social and Voluntary Services
An increase of $25,000 was approved for city council allocations to the general fund for social and voluntary services contributions.
Parks and Recreation Contributions
An increase of $11,200 was approved for parks and recreation allocations in the general fund for contributions to the historical museum and performing arts studio/depot.
Sanitation Fund for Solar Arrays
An increase of $200,000 was approved for sanitation fund allocations to fund solar arrays at the transfer station.
Water and Water Reclamation Funds for Solar Arrays
Increases of $125,000 each were approved for water fund and water reclamation fund allocations to fund solar arrays at the line maintenance facility.
Water Reclamation Building Renovations
An increase of $3,800,000 was approved for water reclamation fund allocations to fund renovations to the water reclamation administrative and storage buildings.
Community Development Block Grant Fund
Revenue and appropriations were increased by $90,849.55 to reflect the updated FYE 2026 award amount from the US Department of Housing and Urban Development.
Transit and Parking Fund for On-Demand Services
Allocations were increased by $665,000 for on-demand transit services, offset by $131,477 from the University of Oklahoma and $24,990 from federal transit authority grant revenue.
Sanitation Fund Revenue
Sanitation fund revenue was noted to be down due to increased prices at the transfer station, implemented to reduce outside loads and prevent facility overload.
Interfund Transfers
Interfund transfers decreased from $17.6 million last year to $7.3 million, prompting public inquiry.
Risk Management (Health Insurance Claims)
Health insurance claims increased by $8 million, primarily due to rising healthcare costs, especially for prescription drugs, despite efforts to contain costs.
Sales Tax Projections
Sales tax revenue projections reflect a decline from the previous fiscal year and a flat trend over the last four years, attributed to a slowing economy and reduced consumer spending.
Local Grocery Sales Tax Impact
It was clarified that the state's grocery sales tax reduction did not affect the city's portion. Exempting groceries from local sales tax would result in a devastating 20-25% reduction in sales tax revenue.
Sales Tax Revenue vs. Expenditures
While sales tax revenues remain historically high compared to pre-COVID 2019 levels, expenditures, particularly for city salaries and benefits, are also increasing at a historically high rate.
Public Comments
Two citizens provided comments regarding the budget. Concerns were raised about declining sanitation fund revenue, a significant decrease in interfund transfers, the substantial increase in health insurance claims, and the accuracy and implications of sales tax projections, particularly regarding the local grocery sales tax.
Coming Up
Watch For
- Proposed agenda item for the Embark contract continuation expected in a couple of weeks.
Announcements
- Kim Kaufman, the budget manager, was recognized for her exceptional work in preparing and presenting the budget, especially during the Mayor's illness in April.
Agenda Summary
FYE 2026 City of Norman Proposed Operating and Capital Budgets and Norman Convention and Visitors Bureau Budget
Consideration of adoption, rejection, amendment, and/or postponement of the FYE 2026 city of Norman proposed operating and capital budgets and the Norman Convention and Visitors Bureau incorporated FYE 2026 budget with detailed annual plan of work.
Amendment: Grammatical and Typographical Corrections
Motion to make necessary grammatical and typographical corrections to the budget documents with no financial impact.
Amendment: Increase General Fund for Social and Voluntary Services
Motion to increase city council allocations to the general fund by $25,000 for social and voluntary services contributions.
Amendment: Increase Parks and Recreation for Historical Museum and Performing Arts
Motion to increase parks and recreation allocations in the general fund by $11,200 for contributions to the historical museum and the performing arts studio/depot.
Amendment: Increase Sanitation Fund for Solar Arrays at Transfer Station
Motion to increase sanitation fund allocations by $200,000 to fund solar arrays at the transfer station.
Amendment: Increase Water and Water Reclamation Funds for Solar Arrays at Line Maintenance Facility
Motion to increase water fund allocations by $125,000 and water reclamation fund allocations by $125,000 to fund solar arrays at the line maintenance facility.
Amendment: Increase Water Reclamation Fund for Building Renovations
Motion to increase water reclamation fund allocations by $3,800,000 to fund renovations to the water reclamation administrative and storage buildings.
Amendment: Increase Community Development Block Grant Fund
Motion to increase community development block grant fund revenue and appropriations by $90,849.55 to reflect the updated FYE 2026 award amount from the US Department of Housing and Urban Development.
Amendment: Increase Transit and Parking Fund for On-Demand Transit Services
Motion to increase transit and parking fund allocations by $665,000 to fund on-demand transit services, with corresponding increases in revenues from the University of Oklahoma and federal transit authority grants.