May 14, 2019 City Council Meeting

TL;DR

The city council meeting focused on two main topics: an update on the Memorandum of Understanding (MOU) for the University North Park (UNP) tax increment finance (TIF) district and a detailed discussion of the FYE 2020 Enterprise Funds budget. Council members provided informal direction to staff to prioritize negotiations for the UTC South site for Norman Forward projects within the UNP TIF district. The budget review covered water, sanitation, and water reclamation funds, highlighting projected revenues, expenditures, and future capital projects.

Key Decisions & Votes

Norman Forward Project Site Selection

48:30

Council members expressed a strong preference for the UTC South site for Norman Forward projects, directing staff to focus negotiations with developers on this location. This decision aims to expedite the TIF district's early termination and leverage existing amenities.

Informal Direction Given

Financial Matters

Water Fund FYE 2020 Budget

Projected revenue growth of 1.9%. Budget includes $1.2M for Oklahoma City water purchase and $1.1M for COMCD water. $700,000 budgeted for fleet replacement projects. Ending fund balance projected at $8.5M, but a water rate increase is anticipated to avoid a negative balance by FYE 2022.

Water Fund Capital Projects

Completed projects include Crossroads water line, Segment D water line, chromium treatment pilot, 24th Avenue water line, Rock Creek water line relocation, and library water line. Ongoing projects include Phase 2 Water Treatment Plant ($35M, finishing Jan 2020), wellfield development and permitting ($1.4M), well supplies and water wells ($10.5M), and a backwash tower ($280k). Future projects include Robinson Street water line, Segment D water line, Carson's water line, Gray Street water line, Flood to Porter water line, James Gardner extension, and line maintenance building (shared).

Sanitation Fund FYE 2020 Budget

Projected revenue growth of 1.7%. Budgeted $4.5M for fleet replacement (actual spending typically $2.5M). Landfill tipping fees budgeted at $2M, with rates decreasing 4.6% this year due to a new five-year contract. Ending fund balance projected at $7.5M.

Sanitation Fund Capital Projects

Completed East Side recycling center ($160k). Upcoming projects include reusing water reclamation effluent on compost ($480k), a material recovery facility (now leaning towards household hazardous waste facility), container maintenance facility, and truck washing facility.

Transfer Station Bond Payoff

Proposed budget amendment of $1.5M to pay off the remaining six years of a bond for the transfer station, saving approximately $100,000 in interest.

$1,500,000

Water Reclamation Fund FYE 2020 Budget

Projected revenue growth of 1.9%. Ending fund balance projected at $6.5M. The facility recently underwent a $63M upgrade.

Water Reclamation Fund Capital Projects

Ongoing reuse pilot project ($1.6M this year, $1.5M next year). Class A sludge improvements (shared with Sanitation) and line maintenance building (shared with Water). Exploring a septage receiving station. Future effluent reuse project is estimated at $50-80M.

Sewer Maintenance Fund

Funded by a $5 maintenance fee, generating approximately $2.6M annually for replacing old sewer lines. This fund has contributed to a 90% reduction in sanitary sewer overflows over 20 years.

Sewer Development Excise Tax

Projected at $1.7M for FYE 2020 ($1.3M residential, $0.4M commercial). This tax is tied to new development and has funded $25M of the Water Treatment Plant upgrade.

Public Comments

0 citizens spoke

Council members discussed citizen input received via email and from groups like the Optimist Club regarding the location of Norman Forward projects and the preservation of existing facilities.

Optimist Club concerns regarding gym use during construction Environmental impact of development on green space Desire for competitive sports facilities in Norman

Coming Up

Tabled

Water tower project (pushed from 2022 to 2023)
Other water capital projects delayed from FY2020 to FY2021

Deadlines

May 15th: Deadline for project plan amendments and mutually acceptable Norman Forward facility locations (from MOU, not met)
June 30th: Goal to end TIF increment and address contractual claims
End of June: OU North Base land contract expiration

Watch For

Completion of ADG site analysis report (early to mid-June)
Water rate increase discussion (anticipated for future fiscal years)
Development of Indirect Potable Reuse (IPR) project
Household hazardous waste facility development
Styrofoam recycling options

Agenda Summary

Update on the progress of the Memorandum of Understanding regarding the University North Park tax increment finance district

Presentation and discussion on the status of negotiations to end the TIF early, including a comparative site analysis for Norman Forward projects (North Base, NEDC, UTC South) and upcoming deadlines.

Information Only

Discussion regarding the FYE 2020 City of Norman budget Enterprise Fund and other budget related items

Detailed review of the proposed budgets for the Water Fund, Sanitation Fund, Water Reclamation Fund, Sewer Maintenance Fund, and Sewer Development Excise Tax, including current rates, projected growth, capital projects, and future financial considerations.