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CONSIDERATION OF ORDINANCE O-2021-29 UPON SECOND AND FINAL READING: AN ORDINANCE OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA, AUTHORIZING THE CALLING AND HOLDING OF A SPECIAL ELECTION IN THE CITY OF NORMAN, STATE OF OKLAHOMA (THE “CITY”), ON THE 6th DAY OF APRIL, 2021, FOR THE PURPOSE OF SUBMITTING TO THE REGISTERED QUALIFIED ELECTORS OF SAID CITY THE QUESTION OF THE ISSUANCE OF THE BONDS OF SAID CITY IN AN AMOUNT NOT TO EXCEED THE SUM OF TWENTY-SEVEN MILLION DOLLARS ($27,000,000) TO BE ISSUED IN SERIES TO PROVIDE FUNDS FOR THE PURPOSES OF RECONSTRUCTING, REPAIRING, IMPROVING, AND REHABILITATING EXISTING STREETS, ROADS, AND INTERSECTIONS IN THE CITY (INCLUDING LIGHTING, SIDEWALKS/BIKEPATHS, LANDSCAPING, RELATED DRAINAGE IMPROVEMENTS, DRIVEWAY RECONSTRUCTION, AND OTHER RELATED IMPROVEMENTS); AND LEVYING AND COLLECTING AN ANNUAL TAX, IN ADDITION TO ALL OTHER TAXES, UPON ALL THE TAXABLE PROPERTY IN SAID CITY FOR THE PAYMENT OF THE INTEREST AND PRINCIPAL ON SAID BONDS.
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BACKGROUND: Over the years, Norman has used a street maintenance bond program funded by an additional, voter-approved ad valorem tax. This funding source has enabled the City to make substantial improvements on roads requiring repair that would not otherwise be possible within the City’s budget constraints. The ad valorem tax levy for the current bond program expires at the end of the current fiscal year and the projects approved for the previous five-year cycle have largely been completed.
On August 20, 2020, Staff met with the City Council Finance Committee to discuss the proposed 2021-2025 Street Maintenance Bond Program. Staff worked with IMS Pavement Management System to rank the condition of all of the public streets in Norman and then identify those needing repair during the next five-year cycle. This was also discussed during the City Council Annual Planning Retreat on October 16, 2020, where Council expressed support for moving forward with an election, the timing of which would enable the current ad valorem tax to continue without any additional increase to fund this program. If approved, the bond sale would need to close by the end of the current fiscal year, which would require voter consideration in April.
DISCUSSION: Ordinance O-2021-29 calls for the holding of a special election on April 6, 2021 for the purpose of submitting to the voters the question of approving the issuance of bonds in an amount not to exceed $27 million to complete the 2021-2025 Street Maintenance Bond Program. Like the previous programs, this requires voter approval of funding the program through an annual ad valorem tax. Because this 2021-2025 Street Maintenance Bond Program will begin as the current bond maintenance program expires, there is no net increase in property tax as a result of this vote.
If approved by Council and the voters, this will be the fourth, consecutive 5-year Street Maintenance Bond Program since 2005. This program, if approved will result in needed street repair projects in 289 different locations and over 151 miles over the next 5 years.
RECOMMENDATION: Staff recommends adoption of Ordinance O-2021-29 upon Second and Final Reading.