City Council Study Session - January 20, 2026

The City Council of Norman convened on January 20, 2026, to discuss five critical agenda items aimed at funding and managing essential city services. The session featured detailed presentations from bond counsel, public works officials, legal staff, and representatives from City Care regarding the city's financial instruments for street maintenance, housing bond propositions, and homelessness strategies. Key discussions centered on the technical requirements for general obligation bonds, the specifics of a five-year street maintenance plan, a comprehensive overview of homelessness due diligence and the proposed shelter model, a transient guest tax increase, and proposed charter amendments.

Consent Calendar

• No routine consents were addressed during this study session as all items were subject to discussion and debate.

Public Comments & Testimony

• Council Member Pegar: Expressed support for the necessity of sidewalk maintenance, characterizing it as "low-hanging fruit" given the high community demand, though noted the city's unique ownership cost structure makes it expensive compared to other municipalities.
• Council Member Grant: Expressed strong appreciation for the transparency in the street bond presentation, specifically the clarification that road repairs are not contingent on the proposed Turnpike alignment. Council Member Grant also voiced full support for the City Care partnership, noting their rapid integration and positive outcomes as evidence of due diligence. Council Member Grant advocated for holding the ballot in April to ensure maximum voter participation and opposed postponing the Auditor qualification amendment.
• Council Member Nofire: Expressed love and support for City Care's passionate work, noting the service is "needed" and praising their data-driven approach to reducing homelessness duration.
• Council Member Bruce: Expressed concern regarding the rigidity of the listed 100% street projects in the bond proposition, seeking assurance that the capital budget provides sufficient flexibility for emergent tactical repairs. Council Member Bruce also inquired about the maturity models for shelters, accepting the response that success is measured by competitive grant acquisition.
• Rachel Freeman (City Care): Expressed a clear position that the new shelter will not double the city's budget, estimating only a 15% increase, and asserted that the city will not need to underwrite operational costs in perpetuity. She affirmed her organization's commitment to being a "good neighbor" and fully supports community fundraising efforts across Cleveland County.

Discussion Items

• Bond Counsel Legal Technicalities (Nate Ellis):

  • Explained that Article 10, Section 27 of the Oklahoma Constitution allows cities to issue bonds for transportation and public utilities via a 50% majority vote, distinct from the 60% requirement for school bonds.
  • Clarified that for public utilities (like a homeless shelter), the city must "exclusively own" the facility, though it may hire an operator; however, it cannot lease the asset to a private entity for their exclusive control.
  • Noted that streets are categorized under the "right of way" owned by property owners, hence the exception for the exclusive ownership rule, whereas sidewalks exclusively require a 60% vote due to ownership issues.
  • Confirmed that the 70% spending rule for identification must be met, but Norman historically identifies 100% of funded projects to ensure compliance.

• Street Maintenance Bond Program (Scott Sturz, Public Works):

  • Presented a five-year ($35 million) bond program (2026–2031) renewing the existing tax. The program aims to increase pavement condition scores from the mid-60s to the upper-70s.
  • Discussed the classification of road repairs into five categories: urban concrete, urban asphalt, urban reconstruction, preventative maintenance, and rural asphalt.
  • Reaffirmed that the Turnpike alignment is not a factor in street selection, noting the closest parallel roadway is a mile away.
  • Clarified that I-35 frontage roads are the city's responsibility, not ODOT's, and are currently in poor condition. ODOT's eight-year plan does not include converting frontage roads to one-way traffic in that stretch.
  • Explained that preventative maintenance (crack sealing) extends asphalt life significantly and that the city's internal crew is weather-constrained, necessitating contracts for larger projects.

• Homelessness Shelter Strategy (Anthony, Shannon Stevenson, Rachel Freeman):

  • Provided a historical overview from 2019 to present, detailing the transition from temporary sites (Comanche, Gray Street) to a planned permanent facility.
  • Outlined the due diligence process, noting that multiple locations were vetted (Hunter Drive, 718 North Porter, Griffin Hospital) and rejected due to infeasibility, cost, or accessibility issues.
  • Confirmed that 718 North Porter was rejected because the building could not accommodate the shelter's elevator access needs and was not ADA compliant.
  • The new facility will be located at the property currently owned by the city (next to the Health Department), chosen for its proximity to resources.
  • Operational Model: Defined the shelter as a "night shelter" (flow system) that partners with Food and Shelter for daytime services, not a 24-hour facility. City Care will operate the shelter with a focus on housing navigation.
  • Financials: Rachel Freeman stated that including housing navigation increases costs by approximately 15%, not 100%. The city expects to reduce operational subsidies over time through grants (e.g., medical respite beds paid for by hospitals) and community fundraising.
  • Risk Management: Addressed liability concerns; City Care will carry insurance as required, and the contract will delineate the city's responsibility for building maintenance versus the operator's responsibility for daily operations and staff conduct.

• Transient Guest Tax Increase (Kathleen Walker, Mason Olson):

  • Proposed increasing the tax rate from 8% to 10% and adding an RV provision.
  • Presented two distribution splits:
    • Proposal 1: Parks receives the entire 2% increase.
    • Proposal 2 (Preferred): Visit Norman receives 50%, Parks receives 30% (including 1.75% increase), and Norman Arts Council maintains 20%.
  • Identified a dedicated portion (approx. 0.25% to 0.5% of the rate) to fund a permanent Public Arts program, estimated at over $118,000 annually.
  • Noted that Norman is currently at the top of the comparable SEC/Texas cities' range (8.5% to 9.25%) and proposed 10% would be competitive.
  • Clarified that the Arts Council portion is independent of the general arts funding they receive from TIFs and other sources.

• Charter Amendments (City Clerk):

  • Discussed two proposed amendments: extending the Council term start date to 60 days post-election (instead of five months) and adding qualifications for the City Auditor.
  • Consensus Decision: Council decided to split the amendments; the Auditor amendment will proceed to the April ballot, while the Council term extension will be postponed to a future election (potentially June) to reduce ballot fatigue.

Key Outcomes

• Bond Proposals: Approved for inclusion on the April General Election ballot, contingent on second reading confirmation.
  • Street Maintenance Bond: $35 million over five years (renewal of existing tax).
  • Homeless Shelter Bond: Authorization for general obligation bonds to fund construction of a new homeless shelter facility.
  • Transient Guest Tax: Proposed increase to 10% with the 50/30/20 split (Visit Norman/Parks/Arts).
• Charter Amendments Amendment: Council voted to strike the Council term extension item from the April ballot, isolating the City Auditor qualification amendment for the April election while postponing the term change.
• Operational Agreement: Council directed staff to finalize contracts with City Care for the new shelter, maintaining the "city-owned, contractor-operated" model with specific KPIs and risk mitigation clauses.
• Ballot Scheduling: Finalized April 22nd as the likely election date, with a note to the City Clerk office by Thursday noon regarding any further objections to the ballot contents.
• Public Education: Staff directed to ensure website updates include interactive maps for the street bond and comprehensive data on homelessness efforts prior to the vote.