FYE 14 Budget prelim - City of Norman

MAJOR GENERAL FUND REVENUE SOURCES, Fiscal Year 2012-2013Sales and Use Taxes - The major source of General Fund revenue is sales tax and by itsnature, sales tax reflects the overall vitality of the local economy, as discussed above.Sales tax collections for FYE 2013 are above FYE 2012 levels (+3.4%), but slightlybelow budget. Use Tax collections have grown slowly in FYE 2013 and will be an areaof emphasis going forward, as out-of-state purchases of goods for use in Norman, such asinternet purchases and purchases of construction materials for the local home buildingindustry should be captured in use tax collections. The City of Norman will continue topartner with other cities and agencies to monitor use tax collection efforts and legislativetrends for the payment of taxes for on-line purchases. In FYE 2014, sales tax revenuesare projected to grow by 4.2% from their estimated FYE 2013 levels.Franchise fees – These are payments made by private utility companies (Oklahoma Gasand Electric, Oklahoma Natural Gas, Cox Cable, etc.) to the City of Norman GeneralFund for their use of the public rights-of-way. Franchise payments are in line withbudgeted projections for FYE 2013. Collections are projected to increase by threepercent overall in FYE 2014.Licenses and Permits – These are payments made for obtaining trade licenses to dobusiness in Norman and for obtaining permits to build structures in Norman. Permitvolume and revenues are, therefore, a proxy for the vitality of the local homebuildingindustry, which in turn has impact on sales and use tax growth rates. Permit values havegrown moderately in the current fiscal year. It is important to note the trend of loweractivity in the local homebuilding sector, however, over the last three to six years.(in millions)iii