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ORDINANCE O-1415-30 UPON SECOND AND FINAL READING: AN ORDINANCE OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA AMENDING SECTION 21-113(A) OF CHAPTER 21 OF THE CODE OF ORDINANCES OF THE CITY OF NORMAN, OKLAHOMA, PROVIDING THAT WATER RATES AND CHARGES SHALL BE COLLECTED FOR THE PURPOSES OF PROVIDING FUNDS FOR THE WATER SYSTEM AND FOR OTHER MUNICIPAL GOVERNMENTAL PURPOSES RELATED TO PROVIDING UTILITY SERVICES; AND PROVIDING FOR THE SEVERABILITY THEREOF.
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BACKGROUND: During the Council meeting on November 10, 2014, Council members expressed a desire for Staff to explore the possibility of an amendment to Section 21-113(a) of the City Code that currently specifies that revenues generated from water rates are available not only for water system purposes but also for "other municipal governmental purposes". After consultation with bond counsel, the financial advisory for the City, and the City's Finance Director, and providing Council with a separate privileged and confidential memorandum, Ordinance O-1415-30 tightening water rate revenue usage language to specify purposes "related to providing utility services" is submitted for Council consideration.
DISCUSSION: Section 21-113 was first adopted and codified in 1973 when the City added a separate article to the Code of Ordinances pertaining to utility billings, charges, rates and service. The language in Section 21-113(a) has not been changed since its adoption in 1973, over 41 years ago.
The Norman Utilities Authority ("NUA") was created as of February 2, 1970 for the use and benefit of the City of Norman. The City of Norman has continued to own all of the water and wastewater assets, including production, storage, transportation and distribution systems as well as the treatment plants (collectively "the System"). The City leased these assets to the NUA via a Lease Agreement and Operation and Maintenance Contract. A primary purpose of leasing the system to the NUA was to provide for the effi...
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