Finance staff say sales tax roughly flat; FY26 budget planning to be cautious

Kim, a finance staff member for the City of Norman, told the Finance Committee on March 20, 2025, that year-to-date sales tax receipts are "just below 1%" and said that staff are accounting for that outcome in FY2026 budget planning.

Kim said city staff are evaluating whether to assume flat growth or to reduce next year's budget to reflect current-year receipts. She noted other jurisdictions, including Oklahoma City, are projecting modest growth (2to 2.5%) but are also cutting operating costs; she said some jurisdictions are planning reductions in operating budgets to offset uncertain revenue forecasts.

Committee discussion touched on cost-of-living increases and how projections might offset those adjustments. Finance staff indicated Anthony, the department's usual presenter, is on vacation and that both Kim and Clint are available to answer questions. The committee did not take formal action on revenue assumptions at the meeting; staff said they will continue refining FY26 budget projections as work proceeds.

Separately, staff said a presentation from NEPH fabrication was postponed after a company meeting; staff expect that item to return to a future agenda.

Next steps: finance staff will incorporate the recent receipts into ongoing FY26 budget preparations and return with additional budget detail in subsequent committee and council meetings.