MIAMI, Okla. — Miami voters will be asked to approve a sales tax for street work during a special election in July.
A divided City Council this week approved an ordinance and resolution to place a sales tax of 0.65 percent before voters on July 27, the date of the primary election for federal, state and county offices.
In a May 2009 election, voters defeated a proposed 1-cent sales tax for street projects, with 327 voting in favor and 380 voting “no.”
Sales tax total
If the measure is approved in July, the city’s sales tax would increase from 3 percent to 3.65 percent. When combined with state and county taxes, the increase will push the total sales tax within the city limits to 9.5 percent.
Council members John Dalgarn and Rudy Schultz voted against the proposal Monday night, with each saying the vote was premature.
Schultz said after the meeting that he supports a half-cent sales tax increase, but he was not in favor of taking any action without first affording the public an opportunity to participate in a hearing.
“No one on the council wants to raise taxes, but we all recognize that something has to be done,” Schultz said. “But getting input from the public before taking action was important.”
A public forum is one item on a list of “points of accountability” that Schultz said must be addressed to satisfy public concern. He said the public has specific questions about how the city would pay for future maintenance of the streets and how priorities would be assigned for the work. Residents also want assurances that there will be conscientious spending of taxpayer dollars, as well as oversight, he said.
Schultz said he believes many residents would support a half-cent sales tax, and that additional support might have been garnered with a public forum. He said he is concerned that asking for an increase of 0.65 percent could hurt efforts to pass even a half-cent tax.
Mayor Brent Brassfield said an oversight committee would be instrumental in the success of the planned project, and that residents in every ward would have representation on the committee.
“Every ward will have a pair of eyes on that committee,” he said.
Brassfield said he appreciated Schultz’s “tenacity” in continually pushing public concerns to the forefront, and that he understood Schultz’s recommendation to delay a decision for two weeks to allow for a public hearing. Yet Brassfield said “it is time” to make a decision, and he made the motion to propose the 0.65 percent tax increase.
After the meeting, Brassfield said he was happy to put the decision in the hands of the public.
“I am excited to give the community another opportunity to step up and provide the funding needed for a very much needed infrastructure project,” he said.
Manager’s view
City Manager Huey Long said the city’s financial strength, as well as the benefit of a public power company, puts Miami in a position to take on a bond obligation.
“When you as a community can be sitting here with the level of reserves that you have, you are in an awesome position and you are to be commended for that,” Long said. “We are in an incredible position of financial strength.”
If approved, the 0.65 percent sales tax would generate about $10.5 million to be applied directly to street work, according to Craig Stanley of the Baker Group, an Oklahoma City company recently hired as the city’s financial adviser.
The debt would be paid over a 15-year period. Street work would begin as early as October, according to city administrators, and could be completed in three to five years.
