Meeting Summary
The city council held a study session to discuss the proposed Fiscal Year 2026 budget for the city of Norman, focusing on general and special revenue funds. The budget emphasizes "holding the line" due to flat sales tax projections, with strategic management of expenditures and specific allocations for public safety, the Young Family Athletic Center, and other services. No formal decisions were made during this informational session.
Financial Matters
Total Projected Revenues (All Funds)
Projected total revenues across all city funds for FY2026, representing a 3% increase from FY2025, primarily due to slight increases in fees, charges, other taxes, and bond proceeds, not sales tax.
Total Projected Expenditures (All Funds)
Projected total expenditures across all city funds for FY2026, representing a 1% decrease from FY2025, mainly attributed to reductions in capital projects.
General Fund Revenues
Projected total revenues for the General Fund in FY2026, a 1% decrease from FY2025 due to changes in cost allocation revenue. Sales and use tax account for 65% of this revenue.
General Fund Expenditures
Proposed total expenditures for the General Fund in FY2026, a 2% increase from FY2025, primarily due to salary merit increases across departments. Police, Fire, and Public Works represent the largest portions.
Rainy Day Fund Reserve
The Rainy Day Fund is projected to be above the minimum 4% level but $446,000 below the 5% targeted level for FY2026.
Public Safety Sales Tax (PSST) Fund Subsidy
The PSST Fund required a $2.6 million subsidy in the current fiscal year (FY2025) and is projected to require a $482,000 subsidy in FY2026, mainly due to ECO expenses.
Fire Station 5 Relocation
The capital project for the relocation of Fire Station 5 is projected to cost between $5 million and $7 million.
Room Tax Fund Revenue Projections
Revenue projections for the Room Tax Fund are expected to increase by 6% over FY2025 levels for FY2026. The ending fund balance is projected at $724,000, mostly reserved for park development.
Young Family Athletic Center (WFAC) Fund Revenue
FY2026 revenue projections for the WFAC Fund were reduced by 20% from FY2025 levels based on actual receipts, reflecting an overestimation of initial membership base. No subsidy is required for FY2026.
Seizures and Restitution Fund Allocations
Proposed allocations from the Seizures and Restitution Fund for FY2026, with an estimated fund balance of $1.1 million at the end of FY2025.
Police Vehicle Replacements (Seizure Fund)
Allocation from the Seizures and Restitution Fund for the replacement of eight police vehicles.
Pivot Community Intervention Services (Seizure Fund)
Allocation from the Seizures and Restitution Fund for services provided by Pivot Community Intervention Services for juveniles in custody.
Other Police Equipment (Seizure Fund)
Allocation from the Seizures and Restitution Fund for various police equipment, including HDU portable X-ray system, HD crisis response toolkit, HDU pan system kits, ebikes, and search and rescue drones.
Public Transportation Fund Balance
Projected revenues for the Public Transportation Fund are expected to exceed projected expenditures by $600,000 for FY2026.
Westwood Park Fund Revenue
Revenue projections for the Westwood Park Fund are expected to increase by 5% over FY2025 levels due to rate increases implemented in calendar year 2025. Projected revenues exceed expenditures by $104,000 for FY2026.
Coming Up
Tabled
- The microransit program was put on hold within the Public Transportation Fund to avoid requiring a general fund subsidy.
Deadlines
- Public Budget Hearing: April 22nd
- Council Budget Study Session (Capital Funds): May 6th
- Council Budget Study Session (Enterprise Funds): May 20th
- Second and Final Public Budget Hearing: May 27th
- Optional Follow-up Study Session: June 3rd
- Council Consideration for Budget Adoption: June 10th
- Fiscal Year Begins: July 1st
Watch For
- Discussions on capital funds (May 6th)
- Discussions on enterprise funds (May 20th)
- Potential water rate increases in the next couple of years
- Design criteria and relocation plans for Fire Station 5
Announcements
- The FY2026 budget book features a "city equipment" art theme.
- The Emergency Communications and Operations Center (ECO) is fully operational and proved effective during a recent windstorm and fires.
- The retail space at the Young Family Athletic Center (WFAC) is expected to open in the next 45 days, operated by Kyle Allison, generating a $25,000 annual lease payment and sales tax revenue.
Agenda Summary
Discussion regarding the proposed fiscal year ending 2026 city of Norman budget general fund and special revenue funds
A comprehensive presentation and discussion of the city manager's proposed budget for the general fund and various special revenue funds, covering revenue projections, expenditure allocations, financial policies, and fund-specific details.