Committee approves formation of parking and transit authority

Apr. 21—The Norman City Council is expected to approve the formation of a parking and transit authority following approval by the Finance Committee on Thursday.

If approved, the authority would keep parking and transit revenue in a separate fund instead of making deposits in the general fund, City Attorney Kathryn Walker told the committee.

Walker cited numerous benefits from the creation of the authority.

Because an authority is a public trust, it can also issue bonds and negotiate longer-term contracts with Embark, the city's bus contractor, Walker said.

"They can issue debt, commit to longterm financial obligations, which is really beneficial when we're doing these annual contracts with Embark," she said. "It'd be great to do a five-year contract, but because we're doing these contracts as a city, we're subject to the constitutional debt limitation and we can't go beyond one year."

The authority would mean nearly $500,000 in annual parking fees and fine revenue would be diverted from the general fund to the trust's fund, Walker said. If necessary, funds from the general fund can be used to subsidize the authority's fund.

General fund money is spent at the discretion of the council, unlike special funds, Ward 7 council member Stephen T. Holman noted.

"Are we not spending all of that on parking or parking enforcement issues?" he asked.

"We're spending that and more," Walker replied.

If the council forms the authority, the city's public transit sales tax cannot be used to cover parking expenditures, she told the committee.

Funds from the voter approved one-eighth sales tax, adopted in 2019, are combined with Federal Transit Administration grants to operate the system.

The Norman Economic Development Advisory Board recommended that the city form the authority during its Jan. 5 meeting, Walker said.

Meeting minutes were not available, but Walker noted its recommendation as the reason the finance committee was hearing the matter.

City Manager Darrel Pyle said forming the authority would likely prove to be good timing as cities in the Oklahoma City Metro area consider a special sales tax election to help fund mass transit.

The Regional Transportation Authority of Central Oklahoma (RTA) plans to build stops for passenger rail from Edmond to Oklahoma City and Norman, but it will require a special sales tax adopted by those cities to seek federal grants to help fund the project.

Central Oklahoma Transportation Authority Administrator Jason Ferbrache told The Transcript in June an election will likely be held in 2024 or 2025 and the tax is capped at 2% according to state law.

Pyle said if the tax is approved, the city's plans to construct "park and ride" lots to enhance access to bus transit could converge with access to the proposed rail system.

Walker told the committee a trust provides other benefits, including diminished legal liability.

"Public trusts exist as separate legal entities," she said. "In the same way we are not liable for activities of the (Norman Regional) Hospital, one of our other public trusts, we would not be liable for parking and transit activities and the authority would not be liable for city activities."

If formed, the authority would be subject to the Open Meeting Act, the Oklahoma Competitive Bidding Act, as well as requirements to complete annual financial reports and audits, Walker said.

After the committee did not object to the authority, Walker said she would prepare an agreement for the council to approve an at upcoming council meeting.

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