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RESOLUTION NO. R-1314-111: A RESOLUTION OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA, EXPRESSING THE INTENT OF THE CITY COUNCIL TO USE THOSE REVENUES GENERATED FROM THE TEMPORARY PUBLIC SAFETY SALES TAX REFERENDUM THAT ARE UNENCUMBERED WHEN THE TAX EXPIRES ON SEPTEMBER 30, 2015, FOR PUBLIC SAFETY CAPITAL IMPROVEMENTS, PROVIDED VOTERS APPROVE THE PUBLIC SAFETY SALES TAX LEVY UNDER ORDINANCE NO. O-1314-33.
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BACKGROUND: On March 11, 2008, the City Council adopted Ordinance No. O-0708-32, the Public Safety Sales Tax ("PSST I"), that created a temporary one half of one percent sales tax on retail sales extending from October 1, 2008 to September 30, 2015 with the revenues generated thereby to be used primarily for public safety purposes. The voters of the City of Norman approved the PSST I at a duly called election on May 13, 2008. The primary purposes of the PSST I, including the addition of seventy-one public safety personnel, will have been accomplished prior to the expiration of the tax of September 30, 2015.
Because the tax was a temporary tax, Council previously directed staff to reserve adequate revenues generated from PSST I to continue to fund the seventy-one (71) public safety personnel positions and associated equipment expenditures for an additional six months beyond the expiration date of PSST I. In addition, the City Council authorized funding from PSST I revenues to accomplish a number of additional public safety capital improvements and expenditures authorized by the PSST I Ordinance including: improved communication systems; remodeling and equipping the Norman Investigations Center (formerly Smalley Center); making a contribution to the "Rainy Day" Fund in an amount that was proportionate to public safety functions funded from the General Fund; and making a contribution to the General Fund in support of the emergency communications function; among other expenditures. City Council anticipates revenues from PSST I to remain unencumbered beyond these purposes on September 30, 2015.
On January 28, 2014, the City Council adopted Ordinance No. O-1314-33, the continuation of the Public Safety Sales Tax ("PSST II"), which will continue to levy a one half of one percent tax on retail sales beginning on October 1, 2015. The voters of the City of Norman will consider approval of Ordinance No. O-1314-33, PSST II, at a duly called election to be held on April 1, 2014.
DISCUSSION: If PSST II is approved by the voters, the revenues collected to be set aside from PSST I initially intended to pay for salaries, benefits, and associated equipment of the seventy-one (71) public safety personnel hired under PSST I for an additional six months beyond the expiration of PSST I will no longer be necessary for such a purpose. The revenues collected for that purpose through September 30, 2015 are estimated to be four million nine hundred thousand dollars ($4.9 million). The City Council Finance Committee Chair asked staff to draft the attached Resolution No. R-1314-111 to consider whether Council should make an affirmative statement regarding the uses of these revenues should the voters approve PSST II on April 1, 2014. The Finance Committee met on February 19, 2014 and reached consensus that Resolution No. R-1314-111, as drafted, should move forward for Council consideration. The Resolution is intended to be a formal expression by City Council of its intent, should the voters approve PSST II, to utilize the revenues of PSST I that are unencumbered as of September 30, 2015, to the extent needed, for the specific Public Safety capital improvements identified in the PSST II Ordinance.
RECOMMENDATION: Resolution No. R-1314-111 is a formal expression of previous discussion by City Council concerning the use of unencumbered PSST I revenues as of September 30, 2015, should the voters approve PSST II on April 1, 2014, to the extent needed, for the specific Public Safety capital improvements identified in the PSST II Ordinance. Staff believes the Resolution is consistent with Council's prior discussions on this issue and thus recommends adoption.