City Commission Approves Placing Sales Tax Extension on April Ballot

January 4, 2023 Featured Slider, News
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January 4, 2023

By Landry Brewer

Elk City voters will decide in April if they want to continue a half-cent sales tax, repurposed for badly-needed fire and police station upgrades.

The Elk City Commission voted at its January 3 meeting to allow voters to decide on possible extension of the half-cent sales tax that went into effect in April 2015 and was originally scheduled to last until the end of March 2029.

The voter-approved tax was adopted to contribute $14 million for construction of the Elk City Elementary building in partnership with Elk City Schools.

The City borrowed $10 million toward that amount on a 10-year note that was due to be paid off in 2025. Once the note is paid off, the half-cent sales tax is scheduled to expire.

But, according to City Manager Tom Ivester, the City will be able to pay off the $10 million loan a year-and-a-half early, saving the City money on the loan repayment. “Because our sales tax collections have been so good, we should be able to pay off the note this June,” Ivester said.

Since that sales tax was earmarked for the school and will expire when the $10 million note is paid off this summer, a new ballot measure is required to repurpose the tax and extend it to enlarge and modernize the fire station and remodel and refurbish the police station.

The April vote will call for repurposing the existing half-cent sales tax for fire and police department upgrades, and the tax extension for that purpose would begin July 1, 2023, and end June 30, 2031.

“The eight-year, half-cent sales tax extension on the April municipal ballot would, if approved by voters, allow the City to expand and modernize the fire station and refurbish and upgrade the police station without raising taxes,” Ivester said.

The aged fire station is so small that it can’t accommodate all the department’s fire trucks, and even those trucks that do fit must back in instead of pulling in forward.

In addition to needing more space to accommodate larger fire trucks, expanded living quarters are also needed for fire department personnel when they’re on 24-hour duty.

Because of extreme wear and tear, the police station also needs a remodel. The police station is used constantly for many things, including the jail and City Court, and officers are forced to work in close quarters, and this requires a thorough remodel and possibly a small addition.

“Extending and repurposing the existing half-cent sales tax will allow us to remodel a 40-year-old police station and a 70-year-old fire station without raising taxes,” said Elk City Mayor Cory Spieker.

And, if approved by Elk City voters in April, the repurposed sales tax would allow for these needed public safety improvements without the City having to borrow money. The City would adopt a pay-as-you-go method for the remodel and expansion that will save the City money over time.

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