LAWTON, Okla. (KSWO) – When you go shopping, you assume that everything you buy will be taxed, but what you less often know is where the money goes.
According to the city, a tax of nine percent is levied throughout Lawton.
- 4.5% goes to the state
- 4.125% goes to the city
- 2% of this goes to the general fund
- 2.125% from CIP
- .375 goes to County
At regular intervals, citizens vote on a Capital Improvement Plan (CIP) to extend the current sales tax increase of 2.125%.
The 2019 CIP expires in 2034. However, the resolution states that if this resolution is adopted, the CIP would extend its term to 2040 and generate annual revenues of $34,000,000 (adjusted for inflation).
This is done in the form of issuing bonds that are repaid from incoming CIP funds.
As the city attempts to catch up on the backlog of 2019 CIP projects due to COVID, city officials say there are a plethora of projects they want to start but lack the funding to do so, as many of the projects included in the plan cannot be completed without public approval.
Examples include the renovation of the Lawton Animal Welfare Shelter and new traffic cameras throughout the city.
However, there are some important points to note about the proposal.
The most important reason: a permanent increase in a non-permanent tax.
If voted on, a permanent 1% excise tax would be used to finance some projects, which Mayor Stan Booker said would remain in place even after 2040.
- ¼% for roads, paths and bridges.
- ¼% for parks and facilities.
- ½% for salaries/public safety emergency funds.
The wage component comes from a public security tax passed as part of the 2015 CIP, which also financed the salaries of the police and firefighters. However, this item also includes the staff of the public operations center and inflation factors.
Mayor Booker explained that if first responders continued to be paid through the operating budget, it would come at the expense of other city services.
This means that if the one percent consumption tax is not introduced indefinitely, wage increases could face the same fate, at least for the time being.
Some citizens wonder how the salaries or social benefits of first responders can be covered by a sales tax.
According to the city, anything that can be paid for with a bond is considered a capital improvement.
Another point that has caused some controversy is the industrial development, which is to be endowed with $35,000,000, which is more than the estimated tax revenue for one year.
This money is held back in a downturn until new industrial opportunities arise.
However, other residents, citing the city’s track record of attracting companies like Westwin Elements and FISTA, question whether this is a good idea. Others say it will allow Lawton to drive economic development and enable the city’s growth.
But remember that this election includes a list of over 36 individual projects. Voters need to know that they can vote yes or no for each project at the ballot box.
Booker said if this CIP does not pass, they will simply reevaluate it and put it up for vote again.
The CIP extension and the mayoral election will take place on August 27.
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