Bridges and natural gas franchise to be decided

Jun. 22—Voters could be asked in the fall to decide the fate of two issues, including a bond for bridge repair, after a survey for one of the items comes back to the City Council.

Voters will decide whether to renew a 25-year franchise agreement with Oklahoma Natural Gas on Sept. 12.

While the council eyed an October election for the bond program election, members decided to wait for the outcome of a survey.

The survey could go out as early as Monday to help the council decide on the term for the bond, staff said during Tuesday's council study session.

Since October 2022, the council has debated whether to ask voters to approve a 5-year or 10-year bond schedule to repair the city's crumbling bridges.

The renewable five-year bond would provide $20 million for 11 projects, while a 10-year program would provide $50 million for 19 projects.

If voters approve, the monthly tax increase for a five-year bond on a property valued at $100,000 is $3.39; for $200,000 it is $7.09 and for $300,00 it is $10.80.

For the 10-year bond, the monthly tax increase slightly lower. The increase is $2.44 for a property valued at $100,000; $5.10 for $200,000 property and $7.75 for a $300,000 property.

Staff have said during previous meetings a renewable five year term is more likely to win voter approval because of the success of the five-year street bond, which voters have renewed every five years for the last 20 years.

If voters approve a 5-year bond schedule, Most of those bridges are in the rural district of Ward 5, but bridges in all wards would be included, according to the staff presentation.

Norman has experienced several bridge failures in four years, which are Haven Street in 2016, Main Street in 2018, Imhoff Road in 2021 and 60th Avenue Northwest in 2022.

"I've not had this many in a short period of time," Public Works Director Shawn O'Leary said.

The council weighed the pros and cons of risking a vote for a 10-year bond, which has a 20-year maturity date.

Ward 2 Councilor Lauren Schueler was concerned other bridges not listed on the bond program could fail before the payoff date.

"What other bridges are going to be coming offline in a 20-year cycle?" Schueler questioned. "A five year makes us a little more nimble."

City Financial Services Director Anthony Francisco said there is a risk of rising costs and a higher interest rate if the city doesn't lock in a long-term interest rate.

Reached Wednesday, Francisco clarified the effect of rising property values on bonds would likely mean no tax increase in the long run.

"....in 5, 10 or 20 years from now we would also expect that the assessed property value in Norman would also have gone up, assuming 3-4% increase per year, so we could issue a higher amount of bonds to cover the higher cost of projects without raising the tax levy from that approved by the voters," he said.

The council was also concerned about voter fatigue, with an election set for nearly every month this year.

Ward 7 council member Stephen T. Holman suggested a November election to give voters a break and leaned toward a longer term to put before voters.

"I do see the benefit of both ...I think it's a pretty good selling point to say we're going to fix all of the current deficient bridges and the monthly cost is cheaper," Holman said. "Or we'll do some of them and your monthly cost will be more. I think I may lean probably towards the longer one."

Additional election dates available for the city are Nov. 14, Feb. 13 and 24, and April 2 and 24, O'Leary said.

Oklahoma Natural Gas question

The council agreed to set an October election for the gas agreement, which will allow Oklahoma Natural Gas the right to operate its utility along public right-of-ways.

ONG spokesperson Martie Oyler said the company, according to the current agreement, pays Norman a 4.25% franchise fee, or about $1.6 million for 12 months.

"It's very similar to the existing one 25 years ago," she told the council. "We've discussed election dates in September and October, and of course ONG will pay the election fees and any related costs for publication that might be associated with the franchise election."

No council member objected to the terms of the agreement.

Mindy Wood covers City Hall news and notable lawsuits for The Transcript. Reach her at mwood@normantranscript.com or 405-416-4420.