November 19, 2025 City Council Meeting

Announcements

• The new cover for the FYE 2025 annual finance reports and budget book was highlighted, featuring the theme "A tour of Jenkins" to showcase projects on Jenkins Avenue.
• Upcoming Capital Budget Process Dates:
  • 📅 March 3rd: Next meeting for new project requests and preliminary budget review.
  • 📅 May 5th: Final review of the preliminary budget before adoption.
  • 📅 June: Final budget adoption.

Financial Matters 💰

Capital Improvements Program (CIP) Overview

• Capital projects are generally defined as those exceeding $100,000 for the maintenance, replacement, or expansion of fixed or permanent assets (e.g., bridges, roads, buildings) with a lifespan of over five years.
• These projects often span multiple fiscal years, and their budgets roll forward without requiring re-appropriation unless new funds are needed.
• Funding sources are diverse, including General Obligation (GO) bonds, various dedicated sales taxes (Capital Sales Tax, Norman Forward, Public Safety Sales Tax), Tax Increment Financing (TIF) districts, enterprise utility revenues, grants, room tax funds, and the new development excise tax (specifically for sewer system expansion/improvement, requiring voter approval).

Capital Fund Status & Allocations

• The "projected available for new projects" in the capital fund currently shows a negative $12 million. This is not deficit spending but reflects bond proceeds held in reserve for specific voter-approved projects that are not yet fully expended.
• For FY26, $17.5 million in capital sales tax revenue was received, but only $14.7 million was appropriated. This strategic under-appropriation was implemented to allow the fund to recover and improve the available balance for future projects.
• Key Guideline Changes: The City Council's guidelines for allocating capital sales tax revenue are flexible. A 5% allocation for Information Technology (IT) was recently added to address critical hardware/software upgrades and enhance cybersecurity, following concerns highlighted by incidents in other cities.

Recurring Projects & Priorities

• Projects included in the FY26 Capital Budget (totaling over $12.6 million) encompass street maintenance, street striping, storm water initiatives, the tree program, IT upgrades, general capital outlay, and sidewalk projects.
• Projects not included in FY26 (but planned for FY27+) include alley repair, ADA compliance projects, an ODOT audit adjustment, pay-as-you-go bridge maintenance (separate from bond projects), traffic calming, and community/neighborhood development. These were deferred due to existing unspent funds from prior years or the availability of new bond funding (e.g., bridge bond projects).

Bond Programs Update

• 2021-2026 Street Maintenance Bond Program: This $27 million, five-year General Obligation bond program concluded in FY26, with the majority of its projects completed or under construction. Renewal of this program is anticipated in the upcoming budget cycle, with projects strategically distributed across all eight wards.
• 2019 Transportation General Obligation Bond Program: Authorized for $72 million, with $46 million issued to date. Completed projects include Porter Avenue improvements. Projects currently underway include the Gray Street two-way conversion, Traffic Management Center, and Jenkins Avenue widening. Federal funding (ACOG grants) has been instrumental in supplementing these projects. The program is currently behind schedule due to changes in ACOG grant scoring criteria and a significant ~60% increase in construction costs since 2021. Adjustments have been made, such as changing the 24th Northeast project from a four-lane to a three-lane design for cost savings.

Future Capital Needs & Potential Bond Initiatives

• Permanent Homeless Shelter Facility: Discussions are ongoing regarding the purchase of property and construction of a permanent homeless shelter. An estimated cost of $8 million (based on a similar facility in Oklahoma City) would cover land acquisition, design, and infrastructure. The estimated annual tax impact for an $8 million GO bond on a $400,000 home is approximately $13.50, or about $5/year for a $200,000 home. Staff aims to present a detailed proposal, developed in conjunction with City Care, to voters by January.
• Fire Stations 10 & 11: Future fire stations are a recognized need, with funding for construction and staffing being a key consideration (e.g., through Public Safety Sales Tax or a new bond).
• Storm Water Infrastructure: The city currently budgets about $2 million annually for storm water, which is significantly less than the 2011 master plan recommendation of $6.5 million annually plus a $50 million bond. Council acknowledged that the city is "vastly underfunding" storm water management, which also impacts infill development.

Agenda Summary Table