Norman budget presentation details sanitation, water and sewer enterprise funds and planned capital work

Kim Kaufman, budget manager for the City of Norman, presented the city manager’s proposed fiscal year 2026 enterprise funds budget on May 20, detailing sanitation, water, water-reclamation and sewer maintenance funds and related capital projects.

The presentation matters because enterprise funds operate like utilities and are funded by user fees rather than general taxation; changes to those funds can affect ratepayers directly and influence future capital and maintenance work across the city.

Kaufman told the council the sanitation operation collects more than 110,000 tons per year and collects over 40,000 tons of yard waste annually, with curbside recycling—moved in-house this fiscal year—covering about 85% participation and more than 4,000 tons collected. The city’s residential trash service for a single poly cart is currently $17.20–$17.60 per month (includes $3 for recycling and a $0.20 Oklahoma solid waste management charge), a rate set in April 2011. Major proposed sanitation expenditures for FY2026 include about $2.2 million for computer and vehicle replacements and route-service software; the landfill tipping expense is budgeted at $3,125,000. Kaufman said the projected year-end fund balance for sanitation is about $4.8 million. The compost facility scale house is listed as a capital project at about $1.2 million.

On water, Kaufman said the city produces roughly 5 billion gallons annually from the water treatment plant, wells and purchases from Oklahoma City. Norman’s residential water base fee is $10.90 per month with usage charges beginning at $3.40 per 1,000 gallons; a summer surcharge of $0.35 per 1,000 gallons applies in July and August for usage above 20,000 gallons. The presentation compared Norman to peer cities: for 10,000 gallons monthly use Norman’s combined water charge was $52.70, about 25% below the sample average of $70.30. Kaufman projected an ending fund balance for water of about $2.6 million and listed major capital projects including a $16 million meter infrastructure program and a $7 million groundwater facility.

For the water-reclamation fund, Kaufman said average plant flow is about 30% below capacity except for an April 2025 outlier caused by heavy rains. Current residential wastewater rates were last changed in November 2013; the fund’s FY2026 ending balance was projected at about $4.9 million before a proposed amendment that would allocate part of that balance to main admin building and storage upgrades estimated at $3.5 million. Capital work slated for the plant includes dewatering centrifuges ($3.3 million) and aeration basin blower replacements ($2.8 million).

Kaufman reviewed the sewer maintenance fund, which is supported by a $5-per-month flat fee approved by voters in February 2001; council member Holman confirmed the fee has not been increased since voter approval. Kaufman said the sewer maintenance program has rehabilitated over 488,000 feet of sewer lines since 2001 and listed planned projects totaling several million dollars across multiple years.

Council members asked clarifying questions about long-term fee history and the cost-of-service study. Council Member Grant asked about the Raftelis cost-of-service study; Kaufman said the study is expected to be completed next fiscal year and will inform any future rate decisions. Council Member Holman emphasized landfill tipping costs—about $3.1 million per year—and urged continued focus on waste reduction.

The presentation also included cross‑city rate comparisons showing Norman’s total monthly utility bill for 10,000 gallons of water and sewer plus trash service at about $102, roughly 36% below the sample average of $158.63. Kaufman said user-fee revenues across utility funds are modeled to grow about 1.5% annually for planning purposes. The council did not take action on the item; Kaufman closed by offering to answer additional questions.

The council will hold a final budget hearing May 27 and consider budget adoption on June 6; Kaufman said an optional June 3 study session is scheduled and the fiscal year begins July 1.