HomeMy WebLinkAbout2014 14_Reducing Monthly Utility Fee by $3_2014.11.04CITY OF OWASO
RESOLUTION 2014 -14
A RESOLUTION STATING INTENT TO REDUCE THE MONTHLY UTILITY FEE IN
SECTION 13 -236 OF THE OWASSO CODE OF ORDINANCES, CURRENTLY
DEDICATED TO PUBLIC SAFETY, BY $3 PER MONTH IF THE PROPOSED ONE -
HALF CENT INCREASE IN THE SALES TAX IS APPROVED BY THE VOTERS AT THE
ELECTION TO BE HELD ON JANUARY 13, 2015.
WHEREAS, the Owasso City Council approved Resolution 2014 -11 on October 21, 2014,
calling for an election to be held on January 13, 2015, to propose a sales tax increase
of one -half cent from three percent (3 %) to three and one -half percent (3.5 %), and,
WHEREAS, the proposed one -half cent sales tax increase would be dedicated for the
sole use of the Police, Fire and Street Departments, and,
WHEREAS, Section 13 -237 of the Owasso Code of Ordinances creates a special revenue
fund denoted as the Public Safety Capital Fund which is funded by 41.4% of the seven
dollar ($7) per month utility fee, and,
WHEREAS, revenues from the Public Safety Capital Fund are utilized equally by the
Police and Fire Departments for apparatus, equipment, facility acquisitions, and
improvements or repairs to any of the foregoing, and,
WHEREAS, if the proposed sales tax increase is approved by the voters at the January
13, 2015, election, additional funding will be available for use by the Police, Fire, and
Streets Departments.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO,
OKLAHOMA, THAT: The Council intends to amend the code of ordinances eliminating
the Public Safety Capital Fund and reducing the monthly fee by three dollars ($3) if the
proposed one -half cent sales tax increase is approved by the voters at the January 13,
2015, election. Should the proposition not be approved by the voters, no reduction
shall be made and the monthly fee shall remain at seven dollars ($7).
Dated this 4th day of November, 2014.
ATTEST:��
Sherry Bish , City Clerk
ApiDLQved as to Form: '
J e Lombardi, City Attorney
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TO: The Honorable Mayor and City Council
City of Owasso
FROM: Sherry Bishop
Assistant City Manager
Vol v A
SUBJECT: Resolution 2014 -14
Stating Intent to Reduce the Utility Fee Dedicated to Public Safety
DATE: October 31, 2014
BACKGROUND:
Resolution 2014 -14 is a statement of the City Council's intent to amend the code of ordinances
eliminating the public safety capital fund and reducing the monthly utility fee by $3, if the
proposed '/2 cent sales tax increase is approved by voters on January 13.
On October 21, the City Council approved a resolution and an ordinance that, if approved by
voters, would increase the sales tax rate in Owasso from 3.0% to 3.5 %. Those new funds would be
restricted to appropriations for the police, fire, and street departments only.
During the course of discussions surrounding the proposed '/2 cent sales tax election, the
concept always included the expectation that the new sales tax revenues would replace the
current utility fee dedicated to the public safety capital fund and the current utility fee would be
reduced by $3 per month.
Within the Owasso Code of Ordinances, Part 13, Public Safety; Chapter 2, Fire Department;
Article C, Ambulance Service; Section 13 -236 establishes a $7 per month fee for water or sewer
customers inside the city limits. Section 13 -237 establishes the Ambulance Service Fund, the
Ambulance Capital Fund, and the Public Safety Capital Fund and defines the percentage of
monies from that fee to each fund.
Currently, ordinances distribute the $7 fee as follows:
Fund
Ambulance Service Fund
Ambulance Capital Fund
Public Safety Capital Fund
Percentage
Amount
50.0%
$3.50
8.6%
$0.60
41.4%
$2.90
Elimination of the Public Safety Capital Fund and reduction of the fee by $3 would leave $4 to
divide between the Ambulance Service Fund and the Ambulance Capital Fund.
If the proposition for the sales tax increase is approved by the voters on January 13, 2015, an
ordinance amending Sections 13 -236 and 13 -237 would be presented for Council consideration
to become effective April 1, the same date as the sales tax increase.
RECOMMENDATION:
Staff recommends approval of Resolution 2014 -14
ATTACHMENT:
Resolution 2014 -14