Norman releases proposed FY2026 budget projecting $316.9 million in total revenues
Loading...
Summary
City staff presented the proposed FY2026 budget with $316,899,864 in projected revenues, a 1% decrease in total expenditures driven by lower capital spending, continued reliance on sales tax, and reserve targets that leave the rainy day fund about $446,000 short of the 5% target. Public hearings start April 22.
Miss Kim, the citys budget manager, presented the City of Normans proposed fiscal year 2026 budget at the council study session on April 15, saying the city expects $316,899,864 in total revenues and will adopt the FY2026 budget by June 10 if the schedule holds.
Kim framed the budget as "a policy document" that "expresses the values, priorities, and strategic direction of the city in financial terms," and said the FY2026 plan emphasizes "holding the line and efficiency optimization." The proposal covers 23 funds, including the general fund, special revenue funds (such as the public safety sales tax and room tax), enterprise funds (utilities) and capital project funds.
The budget projects $316.9 million in total revenues for FY2026, a roughly 3% increase over FY2025 driven by modest growth in fees, charges and bond proceeds rather than by higher sales tax. Proposed total expenditures across all funds are $295,251,765, which Kim said is about 1% lower than the corrected FY2025 figure and largely reflects fewer capital projects.
In the general fund, Kim proposed $111,222,007.14 in expenditures, with police accounting for about 28% of the general fund spending and personnel expenses representing roughly 70% of the budget. The presentation assumes merit and longevity adjustments for staff but no across-the-board cost-of-living raise for FY2026. Kim said the budget includes an assumed $800,000 in turnover savings from vacant positions and strategic pauses in hiring.
Reserve policy details were highlighted: the net revenue stabilization reserve includes a minimum 3% general fund operational reserve and a separate mandated 1% emergency allocation; the rainy day fund has a 4% minimum, a 5% target and a 7% maximum. Kim said the FY2026 rainy day fund is projected to be above the 4% minimum but about $446,000 below the 5% target.
Kim also flagged funds that may need attention in coming years. She described the Water Reclamation Fund as "kind of in a precarious state" and said the city is likely to consider rate increases in the next couple of years. The proposed budget assumes transfers from utility funds (5% of utility revenue) and a 4% administrative transfer of room tax revenue to the general fund.
Staff described the department request and ranking process: 36 base budget increase requests (about $1.4 million) with just over $1 million approved, and 246 program requests totaling approximately $21.8 million of which 149 were funded (largely equipment and vehicle replacements paid from the 0.7% capital sales tax). Kim said the city did not cut filled positions and that reductions reflected vacant roles.
The presentation concluded with next steps: a public budget hearing on April 22, fund-level study sessions in May, a second public hearing on May 27, an optional June 3 study session and council consideration for adoption on June 10. Kim said the adopted budget would be transmitted to the state auditor within 30 days after the fiscal year begins on July 1.
The council asked clarifying questions about utility rate processes, reserve calculations and certain program revenues; Kim and staff indicated they would follow up with detailed answers before adoption.
