Meeting Summary
The Finance Committee reviewed the FY 2021 year-end report and the FY 2023 budget calendar. Key discussions included the city's strong sales tax growth, the ongoing audit process with new accounting standards (GASB 84 and 87), and projections for current fiscal year fund balances. Concerns were raised regarding a potential deficit in the Public Safety Sales Tax fund, while the General Fund showed a healthy ending balance.
Financial Matters
FYE 2021 Year-End Report & Audit
The city has completed financial statements for FYE 2021 and submitted them to external auditors (BKB). The audit will include new GASB 84 (fiduciary activities) and GASB 87 (leases) standards, and federal awards (CARES Act/ARPA funding).
General Fund Performance (FYE 2021 Actuals)
The General Fund ended FYE 2021 with a fund balance of $5.4 million, approximately $3 million more than projected. After accounting for carryover encumbrances, the fund was $285,000 short of the 3% mandated operating reserve.
Public Safety Sales Tax Fund (FYE 2022 Projections)
The fund received a $2.4 million subsidy in FY21, with a projected $2.2 million subsidy in FY22. Current projections indicate a potential $4.9 million drawdown of fund balance and ending FY22 approximately $2 million short of the mandated reserve, largely due to bond projects like the Emergency Operations Center.
Room Tax Fund
A transfer of $1.075 million from the General Fund was made to support Visit Norman and the Arts Council, which improved the fund balance. Concerns remain about the Arts and Humanities portion of the fund balance.
Sales and Use Tax Growth
Norman's sales tax revenue for September was up 31.1%, significantly higher than neighboring cities. Use tax growth has slowed to 8%, suggesting a shift in consumer behavior from online to in-store shopping.
Coming Up
Deadlines
- GASB 87 (leases standard) effective for city adoption as of October 1st
- Final audit field work scheduled to start in October and wrap up by Thanksgiving
- Capital budget retreat on November 16th
- Mid-year financial review in January or February
- Council to consider the budget for final adoption on June 14th
Watch For
- Presentation from OML regarding public safety districts and property tax options
- Further clarification on the definition of 'public safety' for new districts
- Potential impacts of changes to council swearing-in dates on budget adoption
Announcements
- The new Communications Director, Tiffany Verska, is actively house hunting to relocate closer to Norman.
- The new Environmental and Sustainability Coordinator, Michelle, has started and brings extensive experience from the Department of Environmental Quality.
- As of the last payday, the City of Norman has 819 full-time, 18 permanent part-time, and 86 part-time employees, totaling 923.
Agenda Summary
FYE 2021 Year-End Report
Presentation and discussion of the completed financial statements for the fiscal year ending June 30, 2021, which have been turned over to external auditors. Included an overview of new GASB 84 and GASB 87 accounting standards and the audit process for CARES Act and ARPA funding.
FYE 2023 Budget Calendar
Presentation and discussion of the proposed budget calendar for fiscal year 2023, outlining key dates for council meetings, retreats, and final budget adoption.
Monthly Revenue and Expenditures Report
Discussion on the latest monthly revenue and expenditure figures, including significant sales tax growth and changes in use tax trends.
Submission of the Open Positions Report
Discussion regarding the city's open positions and an update on recent hires, including the Communications Director and Environmental and Sustainability Coordinator. Also included an update on total city employee count.