Broken Arrow City Council
Meeting of: 07-21-2015
To: Mayor and City Council
From: Office of the City Manager
Title:
Title
Consideration, discussion, and possible approval to pursue renewal of the Vision 2025 sales tax for City of Broken Arrow and Tulsa County purposes and discussion and possible direction for Staff to schedule a second Town Hall Meeting on this potential Vision 2025 extension
End
Background:
On March 24, 2015, the Mayors from Tulsa County Metropolitan cities held a press conference announcing the Cities United effort. Mayors and City Managers from these cities met on several occasions prior to the press conference to discuss the challenges each city was facing from both an operational and capital funding standpoint. A key component of this discussion was the sunset of the Vision 2025 Tulsa County Sales Tax. It was decided at those meetings that Mayors and City Managers would recommend to their respective governing bodies submission of a sales tax issue to resident voters capturing the 6/10 of one (1) penny of the county tax upon its expiration.
It was determined that each community could identify their priorities and set forth the necessary
percentages on the ballot title.
On April 21, 2015, the Fiscal Sustainability Committee submitted its Final Report. The Committee concluded that a sales tax increase is the only way to address the City’s long-term operational funding issues. Broken Arrow has one of the lowest sales tax rates in the State. An increase would generate much needed revenue to address the per capita sales tax expenditures, as well as staffing concerns. The Committee supported capturing the expiring Vision Tax to fund both operational and capital needs.
There have been several discussions about how the sales tax proceeds, if approved, should be expended. The Fiscal Sustainability Committee, in particular, recommended that a portion be utilized for public safety. Also suggested were percentages for capital improvements and economic development.
The Mayors and City Managers in the metropolitan area have regularly met since the March 24th press conference to share with one another their projects and plans for continuation of the Vision sales tax. That working group had several discussions about a source of dedicated funding for Tulsa County to complete projects within their jurisdiction. As a result it was a consensus of that group that .005 of the .06 sales tax be dedicated to provide funding for projects and/or improvements identified by the Tulsa County Commissioners.
On June 24, 2015, a town hall meeting was held to obtain input from the public regarding the regarding the continuation of the Vision Sales tax. At that town hall meeting, Staff presented an outline that advised the public that the City would seek an extension of .055 of the Vision Sales tax for public safety, roads and economic development and the remaining .005 would remain available to Tulsa County. Based upon FY 2015 collections, the City would receive approximately $7,200,000.00 in additional revenue and Tulsa County would receive approximately $655,000.00.
Staff previously advised the Council that a second town hall meeting to seek input would be appropriate. It is recommended that this meeting be scheduled during the week of August 3rd.
Cost: $0
Prepared By: Russell Gale, Acting City Manager
Reviewed By: Legal Department
Assistant City Manager
Approved By: Russell M. Gale, Acting City Manager
Attachments: None
Recommendation: To authorize Staff to move forward with preparation for an election capturing the .055 of the expiring Vision 2025 sales tax, make .005 available for Tulsa County, and proceed with scheduling a second town hall meeting to obtain public input on proposed projects and services.