June 11, 2025 City Council Meeting

Key Decisions & Votes

The City Council considered and unanimously approved the FYE 2026 City of Norman proposed operating and capital budgets, along with the Norman Convention and Visitors Bureau Incorporated FYE 2026 budget and detailed annual plan of work, following several amendments.

Financial Matters 💰

The meeting primarily focused on the adoption of the FYE 2026 budget, with several amendments impacting various funds:

• Grammatical and Typographical Corrections: Approved unanimously, with no financial impact.
• Social and Voluntary Services Contributions: The General Fund allocations were increased by $25,000 for social and voluntary services contributions. Approved unanimously.
• Arts and Historical Contributions: Parks and Recreation allocations in the General Fund were increased by $11,200 for contributions to the Historical Museum and the Performing Art Studio/Depot. Approved unanimously.
• Sanitation Fund Solar Arrays: Sanitation Fund allocations were increased by $200,000 to fund solar arrays at the transfer station. Approved unanimously.
• Water Fund Solar Arrays: Water Fund allocations were increased by $125,000, and Water Reclamation Fund allocations were increased by $125,000 to fund solar arrays at the line maintenance facility. Approved unanimously.
• Water Reclamation Building Renovations: Water Reclamation Fund allocations were increased by $3,800,000 to fund renovations to the Water Reclamation Administrative and Storage buildings. Approved unanimously.
• Community Development Block Grant (CDBG): CDBG Fund revenue and appropriations were increased by $90,849.55 to reflect the updated FYE 2026 award amount from the US Department of Housing and Urban Development. Approved unanimously.
• On-Demand Transit Services: Transit and Parking Fund allocations were increased by $665,000 to fund on-demand transit services. This increase is offset by increased Transit and Parking Fund revenues: $131,477 from the University of Oklahoma's portion for on-demand services (including Safe Ride program) and $24,990 from an increase in Federal Transit Authority grant revenue. Approved unanimously.

Public Comments

Two citizens provided feedback and asked questions regarding the budget:

• Cynthia Rogers (Ward 4) raised concerns about:
  • A decrease in Sanitation Fund revenue.
  • A significant reduction in interfund transfers (from $17.6 million to $7.3 million).
  • A large increase ($8 million) in risk management costs, primarily for health insurance claims, and inquired about cost control plans.
• Mayumi Windler (Ward 2) expressed worry about:
  • Projections on sales taxes and their impact on the budget.
  • The effect of no longer collecting state grocery sales tax on city revenue.
  • What would happen if emergency/rainy day funds were exhausted.

City Staff Responses:

• Anthony Francisco, Director of Finance, addressed several points:
  • Health Insurance: The increase reflects rising claim costs, particularly for prescription drugs, despite stable claim numbers. The city is working to contain these costs.
  • Sales Tax Projections: Projections reflect a general slowing economy, with sales tax revenue remaining flat over the last four years from a historically high level post-COVID inflation. While current revenues are historically high compared to pre-2019, expenditures are also rising rapidly.
  • Grocery Sales Tax: The state's removal of grocery sales tax did not affect the city's portion. However, there were initial "bugs" with some retailers not collecting local sales tax, which has largely been resolved. He emphasized that exempting groceries at the local level would be "devastating" (20-25% reduction) for Norman, as Oklahoma cities are uniquely dependent on sales tax revenue and do not collect property tax for municipal operations.
  • Budget Shortfalls: If revenues decline and expenditures continue to rise, the city would face reductions in service levels. Initial actions would include slowing down the backfilling of vacant positions, which would impact services like park maintenance or pothole repair. Council would then need to prioritize essential services. Dedicated sales tax funds (Public Transit, Public Safety, Capital, Norman Forward) would also be severely impacted.
• Chris Mattingly, Utilities Director, explained the Sanitation Fund revenue:
  • The city increased prices at the transfer station to match I-240 prices, aiming to reduce the volume of outside trash loads from neighboring cities (like Shawnee, Edmond) that were overloading the facility. This has led to a reduction in tons brought to the transfer station.
  • The last sanitation rate increase was in 2011, highlighting the long period without adjustments.

Agenda Summary Table