FYE 14 Budget prelim - City of Norman

CITY OF NORMANCapital Projects generally cost more than $10,000, are relatively fixed or permanent innature and have an expected life of more than five years. Such projects consist of the constructionof a new, expanded or improved tangible asset, which is physically fixed. Major projects normallyrequire more than one fiscal year to complete. Contracted services for design, land acquisition,utility relocations and construction may be required. Examples include land purchase, newbuildings, building additions, street improvements, utility line improvements, parks andplaygrounds, and major drainage channel improvements.Capital Outlay on the other hand, is an expenditure directed towards maintaining orpurchasing new or replacing tangible assets which themselves have expected life spans of one tofive years. Expenses are generally one-time and occur within a single budget year. Examplesinclude the purchase of vehicles and equipment.In FYE 05, a general obligation bond issue was passed to improve roads (rural and urban),relocate Fire Station Number 3, and to construct a Robinson Street Railroad Grade SeparationProject. The relocation of Fire Station Number 3 was completed in FYE 07, and several roadimprovements projects were completed in FYE 08. During FYE 13, the other projects will becomplete.On March 2, 2010, a general obligation bond issue was approved by voters; $19 million forthe resurfacing and reconstruction of urban and rural roads and $2,250,000 to upgrade and expandthe outdoor emergency warning system.On November 8, 2011, a General Obligation Bond issue was approved by voters;$3,035,000 for the purpose of constructing, equipping, furnishing, remodeling and expanding theCity’s current animal shelter facilities.FYE 14 BudgetThe FYE 14 Budget shows total projected resources available, including beginning fundbalance, of $21,607,438 and total expenditures projected at $29,453,036 with an ending fundbalance of $4,960,869. Sales tax is projected at 4.2% increase from FYE 13 estimate and at anaverage 4.2% growth rate in years FYE 14 through FYE 18. Expenditures are based on estimatedproject costs.Capital projects funded in FYE 2014 will impact the General Fund operating budget.Various transportation projects are included in the FYE 2014 capital projects. Some of theseprojects will be streets built at a much higher standard, reducing maintenance expenses andcongestion, as well as increasing safety. Other impacts include additional traffic control and parksfacilities that will cumulatively add to the City’s maintenance burden in future years. Additionalpublic safety personnel and facilities will also burden future capital budgets.ANNUAL BUDGET107