Meeting Summary
The Finance Committee discussed a proposed water rate increase to fund advanced metering infrastructure, DEQ-mandated blending and disinfection, and a horizontal water well, with an estimated annual cost of $4.4 million. A new $27 million no-new-tax street maintenance bond program was also presented. Both major items were moved to a September 15th study session for further discussion and election timeline planning. Additionally, the sidewalk recoupment program was introduced for future exploration, and a positive sales tax update was provided.
Financial Matters
Water Rate Increase Proposal
Proposed annual cost of $4.4 million to fund Advanced Metering Infrastructure ($14 million over 10 years), DEQ-mandated blending and disinfection, and a horizontal water well ($16 million over 15 years). Residential base fee to increase from $7.50 to $9.50/month, with an average residential bill increase of $6.60/month for 4,000 gallons or less.
Street Maintenance Bond Program
Proposal for a new $27 million, five-year program to continue neighborhood street improvements, presented as a 'no new tax' initiative.
Sales Tax Revenue
Sales tax revenue for the latest month was up 11.5%, reflecting surprising economic activity. Suburban cities showed growth, while larger cities experienced declines.
Coming Up
Tabled
- Water rate increase presentation for further discussion at a study session on September 15th.
- Street maintenance bond program presentation for further discussion at a study session on September 15th.
- Sidewalk recoupment program for further exploration in the Finance committee.
Deadlines
- October 27th for a January election regarding water rates.
- March election for street maintenance bond, with April being the 'drop dead' date to close bonds by June 30th.
Watch For
- COVID-19 update on September 1st.
- City Council retreat to be scheduled soon.
Announcements
- Residents were encouraged to shop local and utilize curbside pickup to support local businesses and ensure sales tax dollars remain in Norman.
Agenda Summary
Sidewalk Recoupment Program
Discussion on current sidewalk construction methods, including development-triggered requirements, capital funds, bonds (requiring 60% voter approval), state assessment districts, and the local recoupment ordinance. Challenges with upfront funding and potential sidewalk replacement during development were highlighted.
Water Fund Presentation / Water Rate Increase Presentation
Presentation on the need for a water rate adjustment to fund Advanced Metering Infrastructure ($14 million), DEQ-mandated blending and disinfection ($16 million), and a horizontal water well. Proposed changes include increasing the residential base fee from $7.50 to $9.50/month and adjusting unit costs, leading to an average residential bill increase of $6.60/month for 4,000 gallons or less.
Street Maintenance Bond Program
Presentation on the history and success of the street maintenance bond program (2005, 2010, 2016) and a proposal for a new $27 million, five-year program. The program focuses on neighborhood streets, urban asphalt, urban concrete, rural roads, and preventative maintenance, with a goal of maintaining a 'no new tax' status.
Monthly Financials
Update on the city's financial status, noting an unexpected 11.5% increase in sales tax revenue for the latest month. Inter-city comparisons showed suburban cities experiencing growth while larger cities like Tulsa and Oklahoma City saw declines.