Norman City Council Study Session – May 19, 2026

The Norman City Council held a study session on May 19, 2026, to discuss four major topics: an update on the One Transit commuter rail program, a proposed sales tax rebate agreement with Sooner Mall, the proposed FY 2027 enterprise funds budget (sanitation, water, water reclamation), and interim solutions for homelessness. Councilmembers heard presentations from One Transit representatives, city staff, and the mall manager, and engaged in extended deliberation on shelter capacity and fire safety improvements.

One Transit Commuter Rail Update

• Marion Hutchinson, Norman’s representative on the One Transit (formerly RTA) board, presented a high-level update on the regional commuter rail project connecting Edmond, Oklahoma City, and Norman. The project has been in planning since 2005; the RTA was formed in 2019 by the three member cities.
• Hutchinson noted that the Oklahoma City metro population is projected to grow from 1.5 million to 2 million by 2040, and Norman from about 130,000 to 175,000. Regional transit ridership (Embark, CityLink) is far below peer metros due to the lack of a regional system. He cited Salt Lake City’s success: over 40 million annual riders on its commuter rail, with $10 billion in private transit-oriented development (TOD) since 1999.
• The proposed first phase is a north-south commuter rail line using the BNSF corridor, with three stations in Norman (Tecumseh, downtown, and south Norman near Highway 9), plus a game-day station at OU. Initial service would be 12 round trips per day, with potential for 24 round trips. The system would connect major employers, universities, sports venues, and entertainment districts.
• Estimated infrastructure cost: $500–600 million, with half expected from federal FTA grants. Cities may choose to fund enhanced station features. BNSF would guarantee service and operate the trains; upgrades to double-track and sidings would also benefit freight.
• Economic benefits highlighted: every dollar invested in public transit yields a 5:1 return. Grapevine, Texas saw a 23% citywide sales tax increase and 95% property value increase near stations after commuter rail opened.
• Councilmembers asked about cost comparison to the proposed turnpike expansion, ridership projections, and station improvements. Several expressed support, noting the need to address congestion and attract young workers.

Sooner Mall Sales Tax Rebate Agreement

• City staff presented a draft agreement for a sales tax rebate to Sooner Mall, consistent with the term sheet previously approved by council. The mall manager, Derek Caldwell, arrived later to answer questions.
• The rebate is capped at $300,000 annually, based on incremental sales tax growth above a pre-pandemic baseline (three-year average has declined for three consecutive years). The rebate is only paid if the mall achieves sales growth; if no growth, no rebate. The term is 11 years: an initial period with a potential $60,000 first year, escalating to $300,000 at roughly $14 million in gross sales increase, followed by two three-year renewal options at council’s discretion.
• The agreement includes a provision for a city police substation or other city use in approximately 1,800–2,000 square feet, subject to mall management approval. Councilmembers discussed the need for security, potential for a hotel on the property, and the mall ownership’s financial strength (one of the largest mall ownership groups in the country).
• Council consensus was to place the agreement on the next regular meeting agenda for a vote. Councilmember Kirby raised concerns about the mall owner’s track record with other properties (e.g., the former Perfect Swing hotel), but staff noted the owner’s strong portfolio. The agreement uses only discretionary sales tax, not public safety or capital sales tax.

FY 2027 Enterprise Funds Budget Discussion

• Finance staff (Kim and Clint) presented the proposed FY 2027 budgets for the sanitation, water, and water reclamation (wastewater) enterprise funds. These funds are ratepayer-supported, not subsidized by general taxes.
• Sanitation Fund: Current rate of $17.20/month (including $3 for recycling) has not increased in 15 years. The city processes over 100,000 tons of trash and 60,000 tons of yard waste annually. A cost-of-service study by Rafelis is underway; staff anticipates recommending a $2/month increase. Fund balance projected at $5.57 million for FY 2027. Capital projects include a compost facility scale house. Discussion included recycling participation (~80% of single-family homes), challenges in Ward 5 (rural area without curbside recycling due to density), and potential for multifamily recycling pilot.
• Water Fund: Produces over 5 billion gallons annually. Current rates (inverted block structure) have not been raised since 2023; last successful increase was after two prior failed votes. Norman’s rate for 10,000 gallons is the second-lowest among 16 benchmark cities (only Ardmore lower). Major capital projects include a $16 million meter infrastructure program, groundwater disinfection, and water line replacements. Water loss is being reduced with new automatic meters; estimated reads dropped from 20,000 to 300. Fund balance projected at $10.3 million.
• Water Reclamation Fund: Current rates have not increased since 2013; Norman has the lowest sewer rates among 16 benchmark cities. A $5/month sewer maintenance fee (approved in 2001) funds capital projects; has never been increased. Fund balance projected at just over $4 million. Major projects include dewatering centrifuges and aeration basin blowers (partially funded by $5 million federal grant). No new capital projects requested for FY 2027 due to limited funds.
• Total utility comparison: For 10,000 gallons water/sewer/trash, Norman residents pay $102/month, the lowest among 16 cities; average is $167. Only Norman, Ardmore, and Newcastle lack a separate stormwater fee. Councilmember Grant suggested considering a stormwater fee to support infrastructure for densification.
• Public hearing on the budget is scheduled for the next regular council meeting on May 26, with adoption on June 9.

Interim Solutions for Homelessness

• City staff (Lance Harper) presented cost estimates for improving the current temporary shelter (on Gray Street) while a new shelter is under construction (expected completion ~18–24 months). Two options were discussed:
  1. Full sprinkler system for the three-building complex (109, 111, 113): estimated $125,000–200,000 (including underground riser work, engineering, and potential asbestos abatement when penetrating walls). Lead time of 6–7 months due to contractor backlog. This option would address fire safety and permit compliance.
  2. Expansion of men’s dorm space (in the 109 building): create ~1,800 sq. ft. for 30–35 additional beds at $35,000–45,000 (using in-house labor and salvaged HVAC). Does not include fire suppression; fire marshal would require a third-party occupancy determination. Could be completed in ~90 days.
• Councilmember Gainsbury proposed that private donations could fund the sprinkler system to reduce city expense. Councilmember Grant supported expansion to increase bed capacity, noting the current shelter houses 52, and that safety improvements are needed. Councilmember Kirby opposed expansion, citing firefighter safety, the shelter’s non-compliance with fire code, and the lack of immediate solutions for encampments. He suggested using temporary structures (e.g., bunkhouses) at other locations.
• City staff noted that the state Department of Mental Health has become less cooperative after recent negative news (an alleged death at an encampment, still under investigation by OSBI). The option to use state land near Food & Shelter appears off the table.
• Council discussed the 238 unsheltered individuals counted during a cold night (point-in-time) versus 400–500 unique individuals served per year. Service providers emphasized that 60–70% of long-term unsheltered individuals may not accept shelter due to rules or mistrust.
• An RFI for nonprofits to provide alternative shelter or services is being prepared. Staff is also drafting an ordinance to address encampments.
• No formal vote was taken; council directed staff to continue work on both options and the RFI. Some councilmembers expressed willingness to support expansion and sprinklers if privately funded, while others wanted more immediate temporary solutions like tents or use of church property.

Key Outcomes

• One Transit: None – informational update. Council expressed support and will consider future funding referendums (expected within 9–12 months). Councilmembers were invited to visit operating systems in Salt Lake City or Fort Worth.
• Sooner Mall Agreement: Council consensus to place the draft rebate agreement on the May 26 regular meeting agenda for a vote. Staff will circulate meeting minutes from earlier EDAB discussions.
• FY 2027 Budget: No vote; public hearing May 26, adoption June 9. Council noted the need to consider rate increases for sanitation and water reclamation based on cost-of-service studies due this summer.
• Homelessness: No formal decision. Council directed staff to:
  • Proceed with developing the RFI for service providers.
  • Continue exploring the 109 expansion and sprinkler options, with preference for privately funded sprinklers.
  • Bring forward a proposed ordinance on encampments.
  • Engage with state officials and potential private property owners for temporary solutions.