May 21, 2025 City Council Meeting

TL;DR

The city council held a special meeting to review the proposed FY2026 enterprise funds budget and address the Rock Creek Entertainment District phasing plan. The budget presentation highlighted Norman's competitive utility rates and detailed capital projects across sanitation, water, and water reclamation services. A significant decision was made to conditionally approve the Rock Creek Entertainment District phasing plan, with its final implementation tied to the outcome of ongoing legal challenges or a future public vote, aiming to mitigate potential financial risks to the city.

Key Decisions & Votes

Rock Creek Entertainment District Phasing Plan

01:55:00

The city council approved the phasing plan for the Rock Creek Entertainment District, contingent on Judge Virgin's ruling being affirmed or voters approving ordinance 0-2425-2 if Judge Virgin's ruling is reversed. This decision aims to satisfy EDA requirements while acknowledging ongoing legal challenges and mitigating potential financial risks.

Approved

Financial Matters

Sanitation Fund Rates

Current residential rate of $17.20/month for one polycart, including recycling and solid waste charge, last set in April 2011. Norman's rate is 17% below the average of comparable cities.

$17.20

Landfill Tipping Expense

Budgeted annual expense for landfill tipping, estimated at over $3.125 million, representing a significant cost to rate payers.

$3.125 million

Water Fund Rates

Monthly charge of $52.70 for 10,000 gallons of water usage, which is 25% below the average of comparable cities.

$52.70

Interim Water Purchase Contract with Oklahoma City

Budgeted amount for purchasing 1 million gallons of water per day from Oklahoma City at $324 per thousand gallons.

$1.5 million

Central Oklahoma Master Conservancy District Budget

Initial budgeted amount, with an amendment proposed to increase it to $1.16 million based on COMCD's budget projections.

$854,000

Lake Thunderbird Raw Water Line Replacement

Norman's 43% share of the cost for replacing a raw water line in Lake Thunderbird.

$96,435

Water Reclamation Fund Rates

Monthly charge of $32.10 for 10,000 gallons of sewer usage, which is the lowest in the comparison sample and 49% below the average. Rates were last raised in November 2013.

$32.10

Sewer Maintenance Fund Rate

A flat monthly fee of $5 for sewer maintenance, approved in 2001 and never increased, funding pay-as-you-go projects.

New Development Excise Tax Fund

Projected revenues for fiscal year 2026, derived from new construction building permits based on wastewater generated.

$1.4 million

Total Utility Bill Comparison

Norman's average monthly utility bill of $102 for 10,000 gallons of water and sewer usage plus trash service, which is 36% below the average of comparable cities.

$102

Public Comments

10 citizens spoke

Public comments primarily focused on the Rock Creek Entertainment District phasing plan, with speakers expressing strong opposition to the project. Concerns included the use of public funds (TIF), perceived lack of democratic process, potential negative financial impacts on the city's general fund, and the ambiguity of the 'subject to market demand' clause in the phasing plan. Many urged the council to postpone the decision until the Oklahoma Supreme Court rules on the referendum petition.

TIF opposition Democratic process and referendum rights Financial risk to city and taxpayers Ambiguity of contract terms ('subject to market demand') Postponement until legal resolution

Coming Up

Deadlines

Final budget hearing on May 27th
Optional budget study session on June 3rd
Council consideration for budget adoption on June 6th
Fiscal year starts on July 1st

Watch For

Rough Telis cost of service study (sanitation rates) to be completed next fiscal year
Development plans for Rock Creek Entertainment District (due 90 days before construction starts for each phase)

Agenda Summary

Fiscal Year Ending June 30, 2026 City Manager Proposed Budget Series - Enterprise Funds

Presentation and discussion of the proposed budget for sanitation, water, water reclamation, sewer maintenance, and new development excise tax funds, including rate comparisons and capital projects.

Information Only

Consideration of adoption, rejection, amendment, and/or postponement of the phasing plan required by the Rock Creek Entertainment District Economic Development Agreement

Discussion and vote on the phasing plan for the Rock Creek Entertainment District, with an amendment making approval contingent on the outcome of Judge Virgin's ruling or a future public vote on the related ordinance.