HomeMy WebLinkAbout2006 17_Accepting Interest in Vision Authority_2006.07.11CITY OF OWASSO, OKLAHOMA
RESOLUTION NO. 2006-17
A RESOLUTION ACCEPTING BENEFICIAL INTEREST IN THE
TULSA COUNTY VISION AUTHORITY FOR AND ON BEHALF
OF THE CITY OF OWASSO, OKLAHOMA.
WHEREAS, It is in the best interest of the City of Owasso to participate as a
member of the Tulsa County Vision Authority.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Owasso, Oklahoma as the governing body of said City hereby accepts, for and on behalf
of said City, the beneficial interest in the Declarartion of Trust creating the public trust
desiganted as the Tulsa County Vision Authority, provided for in the Declaration of Trust
of said public trust, in all respects in accordance with said Declaration of Trust.
ADOPTED this 11" day of July, 2006.
Stephen Cataudella, Mayor
ATTEST:
Sherry Bishop, City Clerk
MEMORANDUM
TO: THE HONORABLE MAYOR AND CITY COUNCIL
CITY OF OWASSO
FROM: RODNEY J RAY
CITY MANAGER
SUBJECT: REQUEST TO ACCEPT BENEFICIAL INTEREST IN VISION
2025 COUNTY -WIDE TRUST AUTHORITY
DATE: July 6, 2006
BACKGROUND:
On September 9, 2003, Tulsa County voters approved a county -wide increase in sales tax
as a funding source for capital improvement projects (known as Vision 2025). In
approving the sales tax increase the voters also established a process and legal
mechanism for the disbursement of any funds "excess" to the cost of the approved
projects. That mechanism was the creation of a "Public Trust" (like our OPWA or
OPGA) that would be given the authority to determine the use and distribution of any
excess funds generated by the sales tax. The Trust would also have the authority to add
to or delete projects from the approved list of funded capital improvement projects.
The voters required the Public Trust to be comprised of seven members to include the
Mayor of the City of Tulsa, the three County Commissioners and three mayors of Tulsa
County Cities or Towns, one from each Commission district appointed by the County
Commissioners. These seven members would form the Trust and would meet to
determine the distribution of additional funds if such were available.
On June 26, 2006, the Tulsa County Commission initiated the creation of the public trust
as authorized by the voters and accepted "beneficial interest" in that trust. The City of
Owasso is designated as an "additional beneficiary" of the public trust, but may not
legally become a beneficiary until the Owasso City Council adopts a resolution officially
accepting that beneficial interest. The County Commission has requested all Tulsa
County Cities and Towns take action to accept beneficial interest in the Trust.
WHY IS THIS REQUEST BEING MADE:
The reason for this request to create a Trust centers on an anticipated request by the City
of Tulsa for additional funding for the already under construction downtown arena. Last
estimates indicate that the currently approved level of funding for the arena ($141
million dollars) will be insufficient to complete the project as planned and that additional
funding is needed to complete the project. Estimates for the amount of additional
funding needed range from thirty -four million dollars to forty -two million dollars.
Financial consultants for the County have indicated that the current rate of revenue
generated by the sales tax will result in an estimated one - hundred and four million dollars
in excess collections over the life of the tax (the tax will expire. January 1, 2017). Based
on that prediction, the possibility exists that the additional funding needed by the City of
Tulsa for the arena could be secured by an additional appropriation of "Vision 2025"
funds to that project. However, in order to appropriate those additional funds, the
required Public Trust referred to above must be created to hear and act on the request.
WHO WILL BE ON THE TRUST:
The Trust members will consist of Mayor Taylor(Tulsa), Commissioner Collins,
Commissioner Dick, Commissioner Miller, Mayor Stan Sallee (Collinsville), Mayor
Richard Carter (Broken Arrow) and Mayor Shayne Buchanan (Glenpool). Please note
that the three mayors representing Tulsa County Cities have not yet been officially
appointed, although each Commissioner has strongly indicated their choice for the
positions and I fully expect the appointments to be made as soon as the resolutions
accepting beneficial interest are approved.
OPTIONS:
The City does have options in responding to this request and may proceed by accepting
beneficial interest in the Trust, or by choosing not to do so.
By accepting beneficial interest, the City better positions itself to participate as a recipient
of future allocations of excess revenues, if such are determined to be available. However,
it should be noted that if the City were not to participate, county officials have said that
the City would not be automatically excluded from receiving additional future funding
from excess 2025 sales tax revenues.
It should also be noted that a city's decision not to proceed as a member of the Trust
would not prevent the Trust from being formed. Based on a discussion with the bond
counsel, it appears to me that the trust could be formed without all of the Tulsa County
Cities participating in its creation.
RECOMMENDATION:
The staff recommends City Council approval of Resolution No. 2006 -17 accepting
beneficial interest in the "Tulsa County Vision Authority ".
ATTACHMENT:
1. Resolution No. 2006 -17
2. Proposed Trust Document