Voters in Choctaw will decide Dec. 14 in a special election if a permanent addition will be added to the city's sales tax to fund parks projects around the city.
A yes vote would add 0.25 percent to all other city, county and state sales taxes in the city. The current city rate for sales tax is 4 percent. Combined with the 4.5 percent state rate, it costs shoppers 8.5 percent for every dollar in sales tax spent in Choctaw. One penny of that is already dedicated to capital improvements.
City Manager Robert Floyd has been with the city since 1987. He said as long as revenue-generating initiatives are earmarked for specific projects, Choctaw voters have been friendly to those measures in the voting booth. A fourth penny in place now was approved by voters to fund capital improvements like water, sewer and street repairs.
"This one will be strictly for parks and recreation," Floyd said.
If approved, the parks project will roll out in phases. It will cover the city's parks, which include 10 Acre Lake, Choctaw Creek Park, Optimist Park, Bouse Park, Lloyd Williamson Park and Barrell Springs. The funds would also help create a recreation program.
"We don't operate a recreational program," Floyd said. "Our recreation department deals principally with maintenance."
DONATION SITUATION
A few years ago, Floyd said 75 acres was donated to the city. It butts up against 10 Acre Lake Park. That land would be used for baseball, softball and soccer fields near N.E. 10th Street and Indian Meridian Road. Floyd said if the measure passes, the city might partner with an organization like the YMCA for a recreation program. In turn, he said, people will come to town for sports events and youth tournaments. Walking trails would also be added to that land.
"We've got the land, we just don't have the public amenities," Floyd said.
New amenities, including expanding the pavilion at Choctaw Creek Park would likely be in later phases, Floyd said. Mike Turek, owner of Old Germany Restaurant and co-host of the annual Oktoberfest, usually is not a proponent of tax increases, bu supports the initiative to improve all of the city's parks.
"This money will be well-spent and provide even better amenities for residents and visitors to Choctaw," he said.
If approved, the new tax will go into effect April 1. Floyd acknowledged that with the current economy it was perhaps not the best time to propose a tax increase, but he said Choctaw residents have seen in the past the value of their tax dollars in the community. Some additions have included a water park and a water feature on Main Street that combined cost $350,000.
ROUGH NUMBERS
Looking at rough numbers, Floyd said the 0.25-percent sales tax could generate more than $144,000 per year. The current penny in place for ongoing capital improvements generates about $577,500 per year, he said. The first phase of park improvements would be funded with revenue bonds. Floyd said he does not have an exact number yet on how much the city initially would need from revenue bonds.
"If it passes, we will have to issue revenue bonds immediately," he said. "Those would be paid off by the proceeds of the new quarter-cent sales tax."
There is no backup plan in place if the December vote fails. Floyd said if voters do not approve the measure, he will go back to the drawing board and reassess the master parks plan. He is hopeful voters will turn out and approve the measure. And since it is a sales tax, Floyd said those who live in the city, yet spend their money elsewhere won't pay a dime, but will still benefit from the improved amenities.
"What we have seen on sales tax is if it is earmarked people will generally go for it," he said. "That's the beauty of a local sales tax. If people don't want it, they have the right to vote against it."
PROPOSITION The text of the proposition reads:
"Shall the City of Choctaw, State of Oklahoma be authorized to levy and assess a city excise tax (sales tax) of one quarter of one percent (0.25%), in addition to all other city, county and state excise taxes presently being levied or assessed, upon the gross proceeds or gross receipts derived from all sales taxable under the Oklahoma sales tax law code as set out in ordinance No. 672 of the City of Choctaw, State of Oklahoma; providing that the purpose of such additional one quarter of one percent (0.25%) excise tax shall be to provide revenues to be used for the design, construction, reconstruction, equipping, operation, maintenance, repairs, and related costs of park infrastructure improvements and amenities, all for the use and benefit of the City of Choctaw, Oklahoma, as more specifically set out in ordinance No. 672 of said city?"
photo Choctaw City Manager Robert Floyd. Photo/Kelley Chambers