City budget series: See Utilities, Public Works' FY22 needs
May 16—Editor's note: This story is the third in a series of budget-
focused stories The Transcript will share over the next few weeks as the city gets closer to its budget deadline. Each story will delve into specific city departments' budget requests, functions and biggest needs.
This week, the city's Utilities and Public Works departments answered The Transcript's questions, from why their budgets have increased or decreased this year, to what their most critical needs are for their area of local government operations.
Staff begins work on the proposed budget in September, and through meetings with fellow members of city hall and the Norman City Council, prioritizes each department's needs.
In The Transcript's reporting, a dividing line emerged between departments who find a wide array of grants to supplement their budgets like parks and recreation, while others like the city clerk and municipal court do not. Utilities and Public works are both a large umbrella and receive both special sales tax funds and voter approved, special sales tax revenue.
Utility Division
The City of Norman Utility Customer Service Division is responsible for the billing and collection of Water, Sewer and Sanitation revenues.
Q. How much is your budget request this year, and how much more or less do you seek from the previous fiscal year?
Water — FYE21 $13,139,193 to FYE22 $12,506,981
Wastewater — FYE21 $7,885,438 to FYE22 $7,613,949
* Wastewater — FYE21 $2,953,678 to FYE22 $2,980,098
Sanitation — FYE21 $12,032,921 to FYE22 $12,193,371
* The department has two accounts for wastewater
Q. What is the reason for the budget amount you seek?
The only real change is we are adding an employee for sanitation to drive a small sanitation truck to serve as an extra with day-to-day operations. We are also adding an employee to run the year-round household hazardous waste facility that will be completed in August 2021.
Q. How much of your budget, on average, ends up being supplemented through grants?
We apply for various grants, but only see them as a bonus if we are ever awarded such. We recently received a $700,000 grant from BOR to partially fund our pilot project at the Water Reclamation Facility.
This project is underway and will determine how effectively Phosphorus and Nitrogen can be removed from the water. Additionally, the pilot will test advanced treatment technologies beginning this fall for removal efficiencies of pharmaceuticals, and other contaminants of emerging concern.
Q. What steps does your department take besides grants to reap savings in ongoing or completed projects?
Our engineering department works with our consultants to be as cost efficient with projects so we can replace as much infrastructure as we can. All of our divisions are tracking their costs of doing business and set out performance indicators to continually run lean and efficient operations.
Q. What is something about your department and the city budget that you wish the public knew?
Utilities operations are all 24/7, 365 days a year. You can't thank the employees enough when various emergencies arise and they get called in to handle the situation and work whatever hours are needed to get the job done.
This last winter was a cold one and demanded a lot of overtime from our crews. They amazingly answer their call-ins, show up for duty and accomplish their tasks in sometimes very unpleasant circumstances. All of this so that our city can enjoy clean water delivered to your homes or business, wastewater properly handled and treated and returned to the environment, and making sure trash is collected, recycling is collected and limbs and yard waste are all collected and safely recycled or disposed of.
Public Works Department
This department oversees streets, stormwater, traffic, city vehicles and other infrastructure.
Q. How much is your budget request this year, and how much more or less do you seek from the previous fiscal year?
The Public Works Department operating budget is funded through the city's General Fund. The FYE 2022 ask is $18,685,622, or 0.70% less than the approved FYE 2021 budget of $18,808,950.
By comparison, the approved FYE 2020 budget for Public Works was $18,497,857.
Q. What is the reason for the budget amount you seek?
The Public Works Department encompasses six operating divisions including Streets, Stormwater, Fleet, Traffic, Engineering and Transit with 130 employees. All of these operations provide basic public services that are necessary in any city, but most of us take for granted until they are gone.
Our most critical need this year and every year is more staff. Our biggest expense is staff. More services are expected each year from each operating division, but staff increases are very rare at the City of Norman. For instance, our public street network grows by approximately 5-10 lane miles per year, but the staffing in the Streets Division is fewer today than it was 20 years ago.
Our fleet of 980 vehicles and equipment is getting older and less reliable every year, which demands more maintenance and repair, but the addition of new mechanics is rare. We add more traffic signals and signs every year, but we have the same number of traffic technicians as we had 15 years ago.
Q. How much of your budget, on average, ends up being supplemented through grants?
We receive one annual grant for operating expenses, which is the Federal Transit Administration (FTA) grant of $2 million/year to operate Embark Norman, the city's bus transit system. Most grants are for one-time capital items, rather than operating expenses. The city receives millions of dollars each year in federal, state and regional grant funds for capital improvements, which include roads, bridges, alternative fuel vehicles, buildings, traffic systems, bus transit programs, etc. Public Works staff prepare those grant applications and manage the projects if the grant is received.
Q. How much do you expect this year?
In FYE 2022, I anticipate approximately $25 million in grant funds for a range of projects and equipment. That amount varies every year based upon the city's success in acquiring the grants. The most unique grants this year are transit-related as well as alternative (electric) vehicle programs.
Q. Are these grants figured into your proposed budget?
Yes, we usually know during the fiscal year budget preparation which grants are likely to be received. That information is reflected in the city's adopted annual Capital Budget.
Q. How much special sales tax will account for your budget?
The Public Works Department receives approximately $2.5 million/year from the Transit Sales Tax Fund (0.125%) to operate Embark Norman, the city's bus transit system.
Many of our capital projects are funded through the city's 0.70% Capital Sales Tax Fund.
Public Works also manages the 2012 Transportation Bond Funds ($42.5 million), the 2019 Transportation Bond Funds ($72 million) and the 2021-2026 Street Maintenance Bond Program ($27 million). In any given year, we are managing $30-50 million in sales tax-funded projects.
Q. What steps does your department take besides grants to reap savings in ongoing or completed projects?
(1) Value engineering is used on every project to manage costs, (2) Public Works/Streets operates an in-house asphalt paving crew that partners with Cleveland County to pave 10 miles of rural roads each year at half the cost of private sector contracting, (3) Public Works/Fleet operates a Compressed Natural Gas Station that is open 24/7 to the general public and fuels over 140 city-owned, CNG vehicles for revenue/savings of over $400,000/year, (4) the city's FEMA status and adopted Debris Management Plan has made the city eligible for millions of dollars in FEMA disaster relief funds, including over $6 million in FYE 2021 for recovery from the October 2020 ice storm.
Q. What is something about your department and the city budget that you wish the public knew?
(1) The Public Works Department underspends its operating budget by up to 10% every year, simply due to the careful and thoughtful allocation of resources by staff.
(2) The City of Norman has leveraged more federal funds for transportation improvements over the past 30 years than any other city in metropolitan Oklahoma City, e.g. most of our major projects have been paid for with an average of 40% local funds (usually bond funds) and 60% federal funds.
Mindy Wood covers City Hall news and notable court cases for The Transcript. Reach her at mwood@normantranscript.com or 405-416-4420.
