FYE 14 Budget prelim - City of Norman

CITY OF NORMANTransfer PolicyThe amount of transfer from the Water Fund in support of the General Fund is based on apolicy that provides for continuity in both funds. A transfer equal to 5% of Water Fund operatingrevenues returns to the General Fund an amount consistent with what non-governmental utilitiesprovide in franchise fees.Five Year OutlookThere are various factors, such as weather, population growth, average individual growth inusage, and changes in the mix of residential and commercial revenues that affect total water utilityrevenues from year to year. Therefore, a conservative approach was taken in projecting revenues dueto the uncertainty of the net effect of these factors. The voters of Norman will be asked to considerincreased rate structures to fund the near-term and strategic needs of the Water Utility Enterprise.SummaryThe City Council has directed a policy through which Norman’s water will be treated to levelswhich meet not only current environmental standards but which provide for future treatmentrequirements and that address customer’s taste and odor requirements year-round. The Norman WaterUtility has begun many strategic actions in this direction, but final implementation will depend on ratestructure adjustments.The picture above is of our new clarifier for the Water Treatment Plant. The new clarifier is100 foot diameter and 17 feet deep. It will hold 1 million gallons of water and is an essential part of ourwater treatment process. The Water Treatment Plant upgrade project is a $12.3 million upgrade whichwas awarded ARRA ‘Stimulus’ money. The stimulus approval provides money as a low interest loanand includes $2 million as a grant.ANNUAL BUDGET85