Meeting Summary
The finance committee discussed the room tax fund, its administration, and the impact of the COVID-19 pandemic on revenues. Presentations were given by the City Controller, Visit Norman, and the Norman Arts Council, highlighting their operations, adaptations during the pandemic, and future initiatives. The meeting also included a financial update and a report on open positions.
Upcoming Community Events
Restaurant Week
Successful, will continue as an annual event; this year supported Pantry Partners.
Friday night pre-game event for Nebraska game
Planned to shut down Crawford between Dos Boot and Rusty's Custard, with live music. Hotel rooms are already fully booked for this weekend.
Oktoberfest
Friday night event, planned for the area by Stash, Lazy Circles, and Mercury.
2023 Beep Baseball International Tournament
To be held at the Griffin soccer fields, a blind baseball tournament attracting participants globally.
Second Friday Art Walk
Successfully returned in person, contributing to community recovery.
Norman Music Festival
Expected to return and help lead the city's recovery.
Jazz in June
Expected to return and help lead the city's recovery.
Financial Matters
Room Tax Fund
Discussion on the 5% room tax rate, recent tribal government exemption, and clarifying language for other exemptions. The financial impact of the tribal exemption is estimated to be minimal (thousands or tens of thousands).
Room Tax Revenues
Pre-COVID revenues were approximately $1.9 million annually. Revenues saw a significant decline in fiscal years 2020 and 2021 due to the pandemic but are showing signs of recovery in fiscal year 2022. Current projections are based on a 25% reduction from pre-COVID levels.
Room Tax Allocation
Funds are allocated with 50% to Visit Norman, 25% to Arts & Humanities (Norman Arts Council), and 25% for park development capital projects.
Norman Arts Council Funding
The initial allocation in 1981 was $35,000. This fiscal year, $240,000 is expected to be granted to 22 arts organizations. Over 40 years, more than $4 million has been granted. In 2017, arts activities generated $48 million in state and local tax revenues.
Public Arts Board Funding
Funded by utility bill donations, generating approximately $10,000 annually for projects.
Norman Forward Public Art
A one percent for art allocation on some Norman Forward projects has allowed for significant public art installations, including a $100,000 project at the Westwood Swim Complex.
American Rescue Plan (ARP) Funds for Arts Council
Council directed $100,000 of ARP money to the Arts Council to restore its hotel balance to pre-COVID levels, supporting the return of live programs.
Sales Tax Revenues
Sales tax continues to be well above projections, with volatility expected until the end of football season.
Coming Up
Watch For
- Zoom meeting with hotels regarding room tax changes (next week or two).
- Council agenda item on Tuesday to dedicate 25% of park development funds toward debt issuance for the Young Family Athletic Center.
- Tourism Marketing District (TMD) petition from hotels to council for approval of a special assessment.
- Discussions for expanded holiday lighting downtown this holiday season.
- Future Norman Forward public art projects at the Young Family Athletic Center and Senior Center.
- Development of tribal celebration grounds at Saxon Park, including a potential large Native American art piece, to be brought to council study session.
- American Rescue Plan money ($100,000) for the Arts Council is expected to be approved by council on Tuesday.
Announcements
- Visit Norman released a new visitor's guide.
- Visit Norman's 'Reboot Norman' campaign and 'Out and About in Norman' video series won statewide Redbud awards.
- Visit Norman will be relocating its offices to the EDC building, anticipating cost savings to reallocate funds to direct marketing.
- The Norman Arts Council is the only city in Oklahoma to allocate a portion of its hotel funds to the arts.
- The Public Arts Board has various projects including park ducks, artist-designed bike racks, and the Main Street sculpture project.
- A new Chief Communications Officer has been hired and will be announced soon.
Agenda Summary
1. Discussion regarding the room tax fund
Presentation and discussion on the room tax code, recent amendments for tribal exemptions, revenue trends, and the administration of funds by Visit Norman and the Norman Arts Council.
2. Financial update and discussion of the revenue expenditure reports
Brief update on sales tax performance, noting it is above projections, and acknowledging the volatility of revenues during football season.
3. Submission of the report on open positions
Update on the hiring of a new Chief Communications Officer, pending official announcement.
4. Miscellaneous comments
General comments and appreciation for the presentations.