Meeting Summary
The September Finance Committee reviewed the fiscal year 2019-2020 closeout figures for various city funds. The meeting highlighted significant impacts of the COVID-19 pandemic on sales tax, franchise fees, and especially room tax revenues, leading to shortfalls in several funds. Discussions focused on the General Fund's subsidy to Public Safety Sales Tax, the Rainy Day Fund's status, and the severe challenges facing the Room Tax Fund due to reduced hotel occupancy and rates.
Financial Matters
General Fund FY2019-2020 Fund Balance Start
Began fiscal year with an actual fund balance.
General Fund Sales Tax Revenue
Actual sales tax revenue in the general fund, well below budget due to the COVID-19 pandemic.
General Fund Use Tax Revenue
Actual use tax revenue, a strong revenue source that exceeded budget.
General Fund Franchise Fee Revenue
Down from budget due to mild summer and warm winter impacting utility revenues.
General Fund Transit Fund Payback
Funds paid back from the transportation fund to the general fund for upfronted transit service costs.
General Fund TIF Fund Payback
Approximately $1 million paid back to the general fund from the TIF fund due to adjusted apportionments.
General Fund Total Revenue
Actual recorded revenue, within one percent of projected revenues for the fiscal year.
General Fund Salaries and Benefits Expenditure
Underspent by approximately $600,000 compared to budget, despite an unbudgeted cost of living adjustment.
General Fund Supply and Materials Expenditure
Underspent compared to budget due to aggressive savings mandates.
General Fund Service and Maintenance Expenditure
Underspent compared to budget due to aggressive savings mandates.
General Fund Westwood Fund Subsidy
Actual subsidy to the Westwood fund, primarily supporting the golf course.
General Fund Public Safety Sales Tax Fund Subsidy
The general fund absorbed operational costs for the PSST fund, exceeding the budgeted subsidy.
General Fund Emergency Reserve Expenditure
No expenditure from the mandated 1% emergency reserve in fiscal year 2020.
General Fund FY2019-2020 Fund Balance End
Closed fiscal year with a fund balance that meets the mandated three percent operating reserve.
Rainy Day Fund FY2019-2020 Fund Balance Start
Began fiscal year with a rainy day fund balance.
Rainy Day Fund FY2019-2020 Fund Balance End
Closed fiscal year with a rainy day fund balance, exceeding the minimum but short of the five percent targeted level.
Public Safety Sales Tax Fund FY2019-2020 Fund Balance Start
Began fiscal year with a fund balance due to outstanding bond revenues for projects like the EOC building.
Public Safety Sales Tax Fund Sales Tax Revenue
Actual public safety sales tax revenue, impacted by COVID-19 in the latter part of the fiscal year.
Public Safety Sales Tax Fund Total Revenues
Total revenues for the year, including the general fund subsidy, resulting in the fund breaking even operationally.
Public Safety Sales Tax Fund Total Expenditures
Expenditures were above budget, primarily due to capital equipment and carryover expenditures for fire apparatus.
Room Tax Fund FY2019-2020 Fund Balance Start
Began last fiscal year with a healthy fund balance.
Room Tax Fund Revenue
Actual room tax revenue, almost 35% below budget due to the severe impact of COVID-19 on the travel industry.
Room Tax Fund Overspent Revenue
The fund overspent its revenue during the fiscal year.
Room Tax Fund Arts & Humanities Negative Fund Balance
The Arts & Humanities portion of the room tax fund closed with a negative balance.
Room Tax Fund Convention & Visitors Negative Fund Balance
The Convention & Visitors portion of the room tax fund closed with a negative balance.
Room Tax Fund FY2019-2020 Fund Balance End
Closed fiscal year with a significantly reduced and unhealthy fund balance.
Parking and Transportation Fund Federal Transit Administration Operating Grant
Major revenue source for the fund from federal operating grants.
Parking and Transportation Fund Public Transit Sales Tax Revenue
Sales tax revenue for the partial part of last fiscal year.
Westwood Fund FY2019-2020 Fund Balance End
Closed fiscal year with a fund balance, with most reserved for pool capital replacement.
Water Fund Basic Water Enterprise Revenue
Actual water enterprise revenue, right on budget despite uncertainties.
Water Fund FY2019-2020 Fund Balance Start
Estimated fund balance at the start of the fiscal year.
Water Fund FY2019-2020 Fund Balance End
Projected fund balance at the end of the fiscal year, with a substantial portion reserved for capital improvements.
Norman Forward Fund Sales Tax Revenue
Actual sales tax revenue for the Norman Forward fund.
Norman Forward Fund Use Tax Revenue
Actual use tax revenue, exceeding projections for the Norman Forward fund.
University North Park TIF Fund Sales Tax Revenue
Apportioned sales tax revenue to the TIF fund.
University North Park TIF Fund Economic Development Sales Tax
Apportioned economic development sales tax to the TIF fund.
University North Park TIF Fund Property Tax
Property tax revenue into the TIF fund.
University North Park TIF Fund FY2019-2020 Fund Balance End
Closed fiscal year with a fund balance, with funds available for remaining authorized projects.
Coming Up
Deadlines
- Adequate water supply and potential rationing if water well expansion and treatment projects are delayed.
- Council retreat in October to discuss water fund details.
Watch For
- Council decision on making a deposit from the general fund to the rainy day fund to reach its targeted level.
- Details on the next federal government support package (e.g., 1.5 trillion dollar proposal).
- Actions to address the projected significant shortfall in Room Tax revenue for the current fiscal year.
- Issuance of the third tranche of Norman Forward debt (estimated $23 million).
- Discussion at the council retreat about re-envisioning the Public Safety Sales Tax fund to cover its own expenses, potentially through a voter initiative.
Announcements
- Reminder to shop local, have staycations, and support Norman businesses to keep dollars within the city.
Agenda Summary
General Fund Closeout Figures
Review of fiscal year 2019-2020 closeout figures, including sales tax, use tax, franchise fees, and major expenditures like salaries and subsidies to other funds.
Net Revenue Stabilization Fund (Rainy Day Fund)
Review of the fund's balance, noting it exceeds the minimum but falls short of the targeted 5% reserve, with discussion on potential use of CARES Act funding.
Public Safety Sales Tax Fund
Discussion of fund balance, sales and use tax revenues, general fund subsidy, and capital equipment expenditures.
Room Tax Fund
Detailed review of significant revenue shortfalls due to COVID-19, impacting Arts & Humanities and Convention & Visitors portions, and projections for the current fiscal year.
Parking and Transportation Fund
Overview of revenues from federal operating grants and public transit sales tax, and a one-time federal grant for a maintenance facility.
Westwood Fund
Review of the general fund subsidy and the fund's balance, noting the impact of COVID-19 on aquatic center revenues.
Water Fund
Discussion of water enterprise revenue, significant capital expenditures for water well expansion and treatment, and the need for an adequate rate structure.
Norman Forward Fund
Review of sales and use tax revenues and the status of the third tranche of debt issuance for projects.
University North Park TIF Fund
Overview of sales and economic development sales tax revenues, property tax, fund balance, and allocation for authorized projects.