HomeMy WebLinkAbout2014 11_Calling an Election to Increase Sales Tax_2014.10.21CITY OF OWASSO
RESOLUTION 2014 -11
A RESOLUTION CALLING A SPECIAL ELECTION IN THE CITY OF OWASSO,
STATE OF OKLAHOMA, FOR THE PURPOSE OF SUBMITTING TO THE
REGISTERED, QUALIFIED' VOTERS OF SAID CITY THE QUESTION OF THE
APPROVAL OR DISAPPROVAL BY SAID VOTERS OF ORDINANCE NO. 1039 OF
SAID CITY, LEVYING AND ASSESSING A SALES TAX OF ONE -HALF PERCENT
(1/2 %) IN ADDITION TO ALL OTHER EXCISE TAXES LEVIED AND ASSESSED
UPON THE GROSS PROCEEDS OR GROSS RECEIPTS DERIVED THEREFROM;
PROVIDING FOR THE USE OF THE PROCEEDS THEREOF TO BE RESTRICTED AS
FOLLOWS: THIRTY -FIVE PERCENT (35 %) TO OWASSO POLICE SERVICES,
THIRTY -FIVE PERCENT (35 %) TO OWASSO FIRE SERVICES AND THIRTY PERCENT
(30 %) TO THE OWASSO STREET DEPARTMENT; AND DESIGNATING TO THE
SECRETARY OF THE ELECTION BOARD OF TULSA COUNTY THE PRECINCTS TO
BE OPEN.
WHEREAS, the City of Owasso, holds public safety and the integrity of Owasso's
transportation infrastructure in high regard; and
WHEREAS, the City of Owasso recognizes the importance of funding operational and
capital needs in the Owasso Police Department, Owasso Fire Department, and Owasso
Streets Department; and
WHEREAS, the intent of the Owasso City Council is to dedicate the additional revenues
generated by the 1/2 penny sales tax increase, for the sole use by Police Services, Fire
Services, and Streets Department; and
WHEREAS, the revenues dedicated to Police, Fire and Streets from the proposed 1/2
penny sales tax increase is separate and independent from the General Fund
appropriations for Police Services, Fire Services and Streets Department; and
WHEREAS, the published FY 2014 -15 General Fund appropriation for Police Services is
$5,291,345, for Fire Services is $4,854,313, and for the Streets Department is $929,515; and
WHEREAS, it is the intent of the Owasso City Council that the General Fund
appropriations to Police Services, Fire Services and Streets Department budgets will be
maintained at or above the published FY 2014 -15 funding levels with the new revenues
generated from the 1/2 penny sales tax increase to be in additi n o j�
2014 -15 General Fund appropriations for Police Services, Fire S rylc s cc t ggy
Departme nt; and IUrI88���o011nLon B08fd
1
BY
OCT 2 4 2014
PM
WHEREAS, the City of Owasso's primary funding source for operational and personnel
needs are dictated by Oklahoma Statute to come from sales tax collections; and
WHEREAS, the collection of revenues from the current Owasso sales tax rate is
insufficient to provide adequate funding for Owasso's public safety and transportation
needs; and
WHEREAS, it is deemed advisable by the Owasso City Council to provide responsible
reinvestment in public safety and streets through a dedicated revenue source.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO,
STATE OF OKLAHOMA:
SECTION 1. That an election be held in The City of Owasso, State of Oklahoma, on the
131h day of January, 2015, for the purpose of submitting to the registered electors of said
City the following proposition, to -wit:
PROPOSITION
SHALL ORDINANCE NO. 1039, INCREASING THE SALES TAX FROM THREE PERCENT (3 %) TO
THREE AND ONE -HALF PERCENT (3.5 %); PROVIDING FOR THE PURPOSE OF THE ADDITIONAL
ONE -HALF PERCENT (1/2 %) SALES TAX AND RESTRICTING SAME AS FOLLOWS: 35% TO
POLICE SERVICES, 35% TO FIRE SERVICES, AND 30% TO THE STREETS DEPARTMENT, BE
APPROVED?
YES - FOR THE ABOVE PROPOSITION
/1 NO - AGAINST THE ABOVE PROPOSITION
SECTION 2. That the City Council of the City of Owasso, Tulsa County, Oklahoma,
hereby certifies to the Tulsa County Election Board that Tulsa County precincts #750,
751, 752, 753, 754, 755, 756, 757, 758, 759, 760 and Rogers County precincts #31 and 130
are to be opened; and Tulsa County precinct #21 and Rogers County precincts #6, 21,
29, and 30 are to remain closed as there are no residents of Owasso in those precincts.
2
SECTION 3. That a copy of the this resolution shall be personally delivered to the office
of the County Election Board of Tulsa County, State of Oklahoma, at least sixty (60) days
prior to the date of said election.
Dated this,*1�"day of October, 2014
Y OF O
oFrrrray o
J i I oberly, Mayor
ATTEST: ��:�I'
Sherry BisWp, City
Approved as to Form:
L ao,
Julig Lombardi, City Attorney
3
The City Wit out limits. �9�y�ni
TO: The Honorable Mayor and City CouncilEf o(/
City of Owasso Cr2 !(; �C /(
7y
FROM: Warren Lehr
City Manager
SUBJECT: Resolution No. 2014 -11 Calling for a Special Election
Ordinance No. 1039
DATE: October 17, 2014
BACKGROUND:
Currently Owasso Police Services, Fire Services, and the Streets Department operated by the City
of Owasso are funded from revenues collected and deposited in the General Fund. The primary
revenue source for the General Fund is the municipal sales tax. The City of Owasso has a three
percent (3 cents) sales tax levied on the sale of eligible goods and services. Two cents of that
tax is utilized for city operations and one cent is restricted for funding capital improvement
projects. Currently, one cent of sales tax is projected to generate approximately $8 million
annually. From the two cents sales tax dedicated to operations, the city must fund all programs
and services excluding water, wastewater, court services, ambulance services and refuse
operations. The two cent sales tax must pay for streets, drainage, parks, administration, police,
fire, planning, engineering, the community center, etc. and all insurances, fees, and other needs
of a $24 million business. Defining what are considered to be core services in a growing
community is difficult. Often, conflicting priorities force core services to compete with each other
for a limited funding source.
A growth -mode city faces challenges on every front to maintain and improve services while
functioning within a financial framework that inhibits the community from "keeping up" with that
growth and the resulting demand on its departments. Over the last several years, a goal of the
staff has been to develop additional efficiencies and /or revenues for municipal operations in
Owasso.
Oklahoma is currently the only state in the nation which statutorily requires cities and towns to
fund their general funds with the sole source being sales tax. Sales tax is a volatile revenue
source that fluctuates with the trends of the national economy. The system, as is, dictates that a
growing city will be behind in its ability to fund improved or expanded services. It is clearly
apparent that in order to meet the citizens' growing demand for services, there must be a
consideration of additional revenues for operations. Owasso citizens have recognized these
needs in past years when they gave overwhelming support for the first penny sales tax (1968),
the second penny sales tax (1973), and the third penny sales tax for funding of capital
improvements (1983).
Current funding sources are inadequate to meet the essential needs of the city due to our past,
present, and anticipated future growth. While the General Fund revenues are increasing each
year, the amount of money needed to fund public safety and transportation services grows at
an unsustainable rate. We are unable to keep up with those needs and continue to meet the
increasing demand for other municipal services.
Currently the Police services, Fire Services and Streets Department budgets account for almost
60% of the city's 2 pennies allocated for the general fund budget. This does not include the 3«
penny dedicated solely to capital improvements projects. While those combined divisions
currently utilize the majority of general fund allocations, each is lacking in adequate manpower,
equipment, facilities and other resources needed to provide services necessary to Owasso
citizens.
The above figures are not intended to indicate that the city is not meeting its obligations to serve
the citizens, but rather to indicate that it is not realistic to expect that increasing demands for
services can continue to be met without the financial resources required for those tasks.
PROPOSED SOLUTION:
Various solutions were reviewed and time frames were developed. Possible solutions considered
were increased fees for services in all areas of municipal services, a reduction in some levels of
existing services, the elimination of some existing services, the privatization of certain city services
and an increase in the city's basic revenue source (sales tax). Staff ultimately agreed that the
most feasible and impactful solution would be to ask the voters for an additional .5 cent sales
tax. This solution has the least adverse impact on the citizens due to Owasso being a retail
shopper's destination with the majority of our sales tax revenues coming from non - citizens. This
recommendation also includes the elimination of the public safety capital fee on every Owasso
utility customer's monthly bill, saving each utility customer $36 per year.
Additional revenues from the 1/2 penny in sales tax should be dedicated to police, fire and
streets in the following manner:
35% (.175 cents) to the Police Services budget,
35% (.175 cents) to the Fire Services budget and
• 30% (.15 cents) to the Streets Department budget.
This allocation is estimated to produce approximately $4 million additional dollars in the first year
allowing for a potential $1.4 million each to both police and fire and $1.2 million to streets.
The additional 1/2 penny would not be subject to a sunset or expiration and the revenues could
be used by these divisions for any purpose. Personnel, equipment, facilities, training, etc. would
all be allowed expenditures. The dedicated monies collected annually from the 1/2 penny
would roll over from one budget year to the next for each division allowing for the opportunity to
forecast budget needs and make large acquisitions over more than one fiscal year.
It is the intention to recommend that the general fund allocation to operating budgets for Police
Services, Fire Services and Streets continue to be maintained at the current funding levels and
that new revenues generated from the 1/2 penny would be in addition to the departments'
current adopted budgets.
COLLABORATION:
There have been months of discussion and collaboration among Owasso's elected officials, staff
members, citizen groups and representatives from the local IAFF and FOP unions for the purpose
of finding needed answers to Owasso's growing concerns in the areas of public safety and
transportation infrastructure. While the addition of a 1/2 penny sales tax does not cure all the
needs of our city, it certainly gets us moving in the right direction in a manner consistent with
responsible financial management and consideration for all Owasso citizens. The efforts and
considerations of all of the participants have made this process successful up to this point and
our hope is that similar efforts will convince Owasso citizens to reinvest in their community for their
future.
TIMELINE:
Currently staff is conducting community meetings at various locations throughout Owasso for the
purpose of informing the citizens of this proposal. Community meetings will continue to be
presented through the end of the year up until the election date.
The Owasso City Council is required by Oklahoma Law to pass a resolution calling for the
election and have in place an ordinance outlining the specific ballot language by November
13, 2014, and delivered to the Tulsa County Election Board in order to conduct a special election
on January 13, 2015.
If the ballot measure were to pass by a majority vote, the new tax rate would take effect on April
1, 2015 as long as the election is certified 60 days prior to the effective date. This date coincides
with the Oklahoma Tax Commission's quarterly calendar and will allow them to make
notification to all necessary vendors in the taxing jurisdiction.
As stated in the proposed solution above, the recommendation includes the elimination of the
existing fee dedicated to the public safety capital fund. That fee is established by ordinance
and could be removed by council action should the voters approve the sales tax increase. In
the interim, a resolution will be presented for council consideration at the November 4, 2014
meeting that would assure the public of the council's desire and intent to repeal the public
safety capital fund fee.
A]11Q gMIZIT
If approved by the voters, Ordinance No. 1039 would increase the sales tax rate from 3.0% to
3.5% effective April 1, 2015. The ordinance also states that the purpose of the new tax would be
to fund appropriations as follows:
• 35% for Police,
• 35% for Fire, and
• 30% for Streets.
RESOLUTION:
Resolution 2014 -11 calls the election and creates the Proposition language. Additionally the
resolution establishes the intent of the Council not to reduce the general fund appropriations to
the police, fire and street departments in future years.
RECOMMENDATION:
Staff recommends Council approval of Ordinance No. 1039 increasing the sales tax rate by 1/2%
and restricting the use of those funds to the police, fire and street departments.
Staff recommends approval of Resolution No. 2014 -11 calling a special election for January 13,
2015 submitting to the voters the 1/2 penny sales tax increase.
ATTACHMENTS:
Ordinance No. 1039
Resolution No. 2014 -11
PUBLISHER'S AFFIDAVIT
RES NO. 2014-11
PUBLICATION DATE(S)
12/18/14
CASE NUMBER: RES NO. 2014-11
AD NO: 00190413
LEGAL NOTICE
STATE OF OKLAHOMA
COUNTY OF TLdsa I SS
I, of lawful age, being duly sworn, am a legal representative of
Owasso Reporter of Owasso, Oklahoma, a weekly newspaper
of general circulation in Tulsa, Oklahoma, a newspaper quali-
fied to publish legal notices, advertisements and publications as
provided in Section 106 of Title 25, Oklahoma Statutes 1971
and 1982 as amended, and thereafter, and complies with all
other requirements of the laws of Oklahoma with reference to
legal publications. That said notice, a true copy of which is
attached hereto was published in the regular edition of said
newspaper during the period and time of publication and not in
a supplement, on the ABOVE LISTED DATE(S)
V V
Representative Anature
Subscribed to and sworn to me this 19th day of December, 2014.
Notary Public _/1fT f)--\ 6?�
Nancy Carol Moore
My commission number: 06011684
My commission expires: December 8, 2018
Customer #: 00000779
Customer: CITY OF
Publisher's Fee: 151.20
/
=No. 0607 �a Om
is
FOR T'
OPT
190413
Published in the Owasso Reporter, Owasso, Tulsa County, Oklahoma, December 18,
2014.
CRY OF OWASSO
RESOLUTION 2014 -11
A RESOLUTION CALLING A SPECIAL ELECTION IN THE CITY OF OWASSO,
STATE OF OKLAHOMA, FOR THE PURPOSE OF SUBMITTING TO THE REGIS-
TERED, QUALIFIED VOTERS OF SAID CITY THE QUESTION OFTHE APPROVAL
OR DISAPPROVAL BY SAID VOTERS OF ORDINANCE NO. 11119 OF SAID CITY,
LEVYING AND ASSESSING A SALES TAX OF ONE -HALF PERCENT (12 %) IN
ADDITION TO ALL OTHER EXCISE TAXES LEVIED AND ASSESSED UPON THE
GROSS PROCEEDS OR GROSS RECEIPTS DERIVEDTHEREFROM; PROVIDING
FOR THE USE OF THE PROCEEDS THEREOF TO BE RESTRICTED AS FOL-
LOWS:THIRTY -FIVE PERCENT (35 %)TO OWASSO POLICE SERVICES,THIRTY-
FIVE PERCENT (35 %) TO OWASSO FIRE SERVICES AND THIRTY PERCENT
(30 5/6) TO THE OWASSO STREET DEPARTMENT; AND DESIGNATING TO THE
SECRETARY OFTHE ELECTION BOARD OF TULSA COUNTY THE PRECINCTS
TO BE OPEN.
WHEREAS, the City of Owasso. holds public safety and the integrity of Owasso's
imnsponatlon inhasWCture In high regard; and
WHEREAS, the City of Owasso recognizes the Importance of funding Operations] and
capital needs in the Owasso Police Department, Owasso Fire Department, and
Owasso Streets Department; and
WHEREAS, the Intend of the Owasso City Council Is to dedicate the additional rev.
enues generated by the 1/2 penny sales tax Increase, for the sole use by Police
Services, Fire Services, and Streets Department; and
WHEREAS, the revenues dedicated to Police, Fire and Streets from the proposed 12
penny sales tax increase is separate and Independent tram the Geneml Fund appre.
priations for Police Services, Fire Services and Streets Department; and
WHEREAS, the published FY 2014 -15 General Fund appropriation for Police
Services is $5,291,945, for Fire Services Is 54,954,313, and for the Streets
Departmem is $979,515; and
WHEREAS, it Is the intent of the Owasso City Cound that the General Fund appm.
prlations to Police Services, Foe Services and Streets Department budgets will be
maintained at or above the published FY 2014-15 funding levels with the near av-
enues generated from the 12 penny sales tax increase to be N addition to the pub-
lished FY 2014 -15 Geneml Fund appropriations for Police Services, Fire Services and
the Street Department; and
WHEREAS, the City of Owasso's primary funding source for operational and person.
net needs am dictated by Oklahoma Statute to come from sales tax collections: and
WHEREAS, the collection of revenues from the current Owasso salestax rate is imuf-
fident to provide adequate funding for Owasso's public safety and transportation
needs; and
WHEREAS, it is deemed advisable by the Owasso City Council to provide responsi-
ble reinvestment In Public safety and streets through a dedicated revenue source.
NOW,THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OFTHE CITY OF
OWASSO. STATE OF OKLAHOMA:
SECTION 1 That an election be hold In The City of Owasso. Stale of Oklahoma, on
the 13th day of January, 2015, for the purpose of submitting to the registered decmrs
of said City the following proposition, to-wit
PROPOSITION
SHALL ORDINANCE NO. 1039, INCREASING THE SALES TAX FROM THREE
PERCENT (3 %) TO THREE AND ONE -HALF PERCENT (3.5 %); PROVIDING FOR
THE PURPOSE OF THE ADDITIONAL ONE -HALF PERCENT (12 %) SALES TAX
AND RESTRICTING SAME AS FOLLOWS: 35%70 POLICE SERVICES, 35% TO
FIRE SERVICES, AND 30% TO THE STREETS DEPARTMENT, BE APPROVED?
/_/ YES -FOR
NO- AGAINSTTHE ABOVE PROPOSITION
SECTION 2 That the City Council of the City of Owasso, Tulsa County, Oklahoma,
hereby cart has to the Tulsa County Election Board that Tulsa County precincts #750,
751, 752, 753, 764, 755, 756, 757, 758, 759. 760 and Rogers County preemo s #31
and 130 are to be opened; and Tulsa County precinct #21 and Rogers County
pmincts #8, 21, 29, and 3( ere to remain dosed as there ere no residents of Owasso
In those precincts.
SECTION 3 That a copy of the this resolution shall be personalty delivered to the
office of the County Election Board of Tulsa Count', State of Oklahoma, at least sixty
(60) days prior to the date of said election.
Dated this 21st day of October, 2014.
/s /Jed Moberly, Mayor
ATTEST: /a/ Sherry Bishop, City Clerk
APPROVED AS TO FORM: /a/ Julie Lombardi, City Attomey