Bartlesville voters will decide the outcome of the City’s proposed $17.6 million General Obligation Bond Issue during an election set for Oct. 10, 2023. A few of you had questions after reading some of the comments on social media that, as it turns out, are factually incorrect and based on misinformation. City Manager Mike Bailey answers some of those questions in today’s City Beat.
First, give us the basics: What is a General Obligation Bond and why are they needed?
Put simply, a General Obligation Bond, often called a G.O. Bond, is a type of municipal bond that is backed entirely by the issuer’s creditworthiness and ability to levy taxes on its residents.
G.O. Bonds are one of the few ways Oklahoma municipalities can fund capital projects. For our purposes, they are generally used for streets, bridges, parks, equipment, IT software and municipal facilities. The City relies on its G.O. Bond program to fund these types of projects.
How does the City collect the money to finance the projects?
The City receives the money in tranches, or a series of bonds, over the period of the bond. Typically, these are issued each year during that period, which is usually three or four years. The current proposed issue is four years.
How are the bonds repaid?
The bonds are repaid through ad valorem, or property taxes.
No tax increase
Does that mean our property taxes are going to go up?
No, it doesn’t. We keep the City’s millage rate below 15 mills. New bonds are issued only as older bonds expire, which keeps the millage rate stable, neither going up or down.
Some people insist that this is a tax increase, though. Why is it not?
The millage rate stays the same, keeping the amount we pay in property taxes the same. If the millage rate went up, the tax would increase as well. That would be an increase. This is not one.
The water question
One of the most-repeated comments on social media lately is that this funding should not be approved until the City “does something” about its water situation. What do you say to that?
First, I want to be clear that the City cannot advocate for a “Yes” or “No” vote. We simply provide information to the voters and it is up to them whether they want these projects completed or not.
That aside, these comments tying the bond election to our water situation are ill-informed, at best. The facts are:
“Doing something” about water takes time — a lot of time. I wish this wasn’t the case, but it is. We are potentially a decade or more away from identifying an alternative water supply source, obtaining water rights to that source, and constructing infrastructure to get that water into Bartlesville homes. We have been working with legislators for almost 20 years to obtain the small amount of water available on Copan.
Additionally, it’s false to say the City has done “nothing” in almost 20 years. The original Bartlesville Water Resource Committee chose several projects to increase our water supply. The first step was to obtain water on Copan Lake. The pricing structure proposed by the U.S. Army Corp of Engineers (USACE) for storage on Copan was 27 times higher than water purchased from Hulah.
The committee and City Council decided to pursue reduced rates on Copan. It took Sen. (James) Inhoffe two WRDA (Water Resources Development Act) bills and an audit of USACE to reduce the price for the available water. Once that water was purchased, the City again ran into governmental roadblocks when trying to purchase the reserved water on Copan Lake.
One of the last bills passed by Sen. Inhoffe was supposed to address these roadblocks, but in spite of assistance from Sen. (James) Lankford, Sen. (Markwayne) Mullin, and Rep. (Josh) Brecheen, USACE price for Copan water is still 15 times higher than water from Hulah. Our senators have promised a solution, but it will likely take another WRDA bill.
As you can see, it is absolutely false to say that the City has done “nothing.” Plus, the “nothing” argument completely ignores the construction of our water reuse system that will extend our existing water supply almost indefinitely. All this system requires is a final permit from the Oklahoma Department of Environmental Quality (ODEQ) before it becomes a reality. I’d say the City has done a considerable amount, but we are not finished.
Additionally, any of the options that are currently on the table will almost certainly be enormously expensive. That’s the reason the City Council and the Water Resources Committee chose to focus on Copan and Hulah 20 years ago.
To fund a possible $300 million project through a G.O. Bond would raise property taxes by 70 mills. Remember, the City’s current millage is only 15, so this would be an enormous tax increase on our citizens. To say that we won’t focus on roads, parks, public safety and technology for years until a “solution” is found for future droughts is short sighted at best.
When will we know which options we will pursue for water?
The Water Resources Committee continues to seek alternative avenues for water supply for our region to meet future demand. Once the best options are determined, the committee will make recommendations to the City Council, which will ultimately decide what actions are taken. They are examining additional water on Hulah and Copan, possible water supply from Sand Lake or Kaw Lake, ground water from the Ada-Vamoosa aquifer, potable water from the Tulsa metro, and many other options.
The projects
What are some of the projects voters will be deciding?
Seventy percent of the money, or $12 million, will be used to fund streets — not to build new streets, but to upgrade and repair existing streets. Other projects include constructing a new fire station to replace Fire Station No. 2, located at Frank Phillips and Virginia, a shade structure for Douglass Park, security lighting in our parks and supplemental funding to rebuild golf course greens at Adams Golf Course.
Why do we need a new fire station? Why not a new fire truck?
Actually, we need both, so the City Council approved the purchase of a fire truck using General Fund revenues and included the new fire station in the GO bond.
The new fire station is needed because the existing building has structural, slab and plumbing issues that would be costly to repair. We could do that, but then taxpayers are spending money on a 49-year-old facility that has other limitations, including limited room for the trucks. It seemed a better use of taxpayer funds to construct a new building. This way, firefighters can continue to operate from existing facility while the new one is under construction. If we had opted to repair the building, it would need to be closed while those repairs were made.
Why do we need a greens rebuild at Adams Golf Course? Isn’t that just for rich people?
Absolutely not. In fact, quite the opposite. Our golf course is used by many local non-profit organizations to raise money for their agencies, which in turn provide services to those in our community who need it the most.
The United Way Golf Tournament, which was held last month, raised over $1 million for local agencies. It’s the largest United Way golf tournament in the U.S. Combined, these fundraisers generate $3.5 million annually for local non-profit organizations and have a tremendous economic impact in our community. It’s clear that our golf course is important not just for quality of life but also for our community as a whole.
The propositions
What can voters expect to see on their ballot on Oct. 10?
Projects proposed in the G.O. Bond Issue are grouped into four propositions:
- Public safety buildings and equipment: $2,412,000
- Municipal buildings and equipment: $696,000
- Streets and bridges: $12,278,000
- Parks and recreation: $2,214,000
Who can vote and when?
Registered voters who are eligible and who reside within the city limits of Bartlesville will be able to vote in this election.
Early voting is available at the Washington County Election Board, which is located on the fourth floor of City Hall, 401 S. Johnstone Ave., from 8 a.m. to 6 p.m. on Thursday, Oct. 5, and Friday, Oct. 6. Regular voting is scheduled for Tuesday, Oct. 10 – from 7 a.m. to 7 p.m. – at your local polling place.
For more information about the projects and the election, see www.cityofbartlesville.org, City Beat archives and Bartlesville GOV.