Norman Council approves budget, plans to voice frustrations

NORMAN — Town Council on Monday approved the final version of their budget for the fiscal year 2020-2021.

At the advice of the town’s accountant, the council previously agreed to publish a version of the budget that didn’t factor in the Richmond County Board of Commissioners’ decision to change the sales tax distribution from per capita to ad valorem — a decision that, based on numbers from the fiscal year 2018-2019, would cause Norman to lose all of its sales tax revenue.

The council had also drafted a separate version of the budget that accounted for the absence of sales tax revenue under ad valorem. But council approved the version of the budget that included per capita tax revenue, with the hope that the commissioners would undo their decision to move to ad valorem. That outcome doesn’t appear likely, and the Norman Town Council agreed on Monday that sticking with a budget that factored in per capita sales tax revenue would cause problems. So the council decided to undo their original vote and approve the budget that included the losses under ad valorem.

The approved budget includes numerous cuts to accommodate Norman’s loss of revenue. The only service Norman offers its residents is street lights, so it’d be difficult for the town to levy taxes on its residents — which is something Norman has never done, and is also something the council members are against doing.

Mayor Tonia Collins mentioned a ruling put in place by Vernon Hogan, one of the town’s early mayors.

“He put specifically that Norman cannot put any kind of tax on the people. We found that out,” Collins said.

Councilwoman Nancy Paxton responded, “Is that not something we can overrule, though?”

“But what are we going to offer them?” Collins asked. “We don’t have anything to offer them but street lights. And these people here are not going to pay taxes.”

Norman was a town of 138 people as of the 2010 census.

“We don’t have enough people and enough property value to make it,” Councilwoman Renate Mann said. “We would have to charge an exorbitant amount to offer anything beyond that.”

So making budget cuts is the only way the town can salvage itself under ad valorem. Even with those cuts, the town’s financial future is bleak. If Norman’s revenue and expenses remained the same as it was on June 30, 2019, the town would be insolvent in about three years and nine months under ad valorem.

The Town Council had to cut its spending on local programs like Discovery Place Kids and Stuff the Bus, as well as its donations to the local rescue squad and fire department. Norman Fest and the Chick-n-Pick-n Music Jamboree — two events that boost the local economy by bringing thousands of people to Norman annually — have been cut as well.

With its sales tax revenue slashed, Norman won’t have any money coming in when the new fiscal year begins on July 1. The Council talked about planning some community gatherings or festivals to raise money for the town. They also discussed applying for grants as a way of bringing in money.

In the meantime, the Town Council members plan on voicing their frustrations at Richmond County Commission meetings in the months to come. Those meetings have switched to a call-in format recently because of concerns about COVID-19.

“The meetings, I would think, are going to be opening up soon,” Mann said.

“All or some us could go to the commissioners meeting and at least have our voices heard,” Paxton said.

Paxton noted that three open seats on the County Commission will be decided in November. Town Council discussed how they can lobby the candidates for those seats and ask them to help Norman with its financial woes — perhaps by undoing the change to ad valorem.