By Curtis D. Tucker, Enid Buzz | Tuesday, June 7, 2016 | UPDATED August 21, 2016
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ENID, Okla. - The proposal on Tuesday's ballot is a proposition to fund the Kaw Lake pipeline project. City Commissioners voted 6-0 on June 7 to send the penny sales tax increase to a vote of the people. Registered and qualified voters will go to the polls on August 23, 2016.
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If approved, revenues will only be used to fund capital expenditures pertaining to water system improvements related or incidental to the construction of a water transmission pipeline from Kaw Lake to Enid. Future maintenance and other costs would still need to come from possible utility increases and the yearly budget.
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If the proposal were to fail, the City of Enid currently has no backup plan but would still need to find new sources of water in the future according to recent studies. Paying for other alternatives could constitute higher water bills or additional forms of taxes. If this sales tax passes it would allow up to 55% of the project to be funded by non-residents of Northwest Oklahoma.
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Opponents worry the higher sales tax might drive shoppers to other cities for their purchases. There is also an education 1 cent sales tax coming up on the ballot later in the year. If the state sales tax vote were to pass Enid could have a 10.100% sales tax.
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The City of Enid had concerns over the long-term viability of the current water supply (groundwater), which prompted them to evaluate alternative water sources. The City currently receives its entire water supply from 116 active wells within five well fields that tap three separate aquifers west of town. A high percentage of that water goes to Koch Industries but will soon be lowered from an average of 5 million gallons a day to 2.5 million gallons or less once their greywater treatment plant is online.
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Studies show the well field water levels are lOpponents question whether the well fields west of Enid are running out of water. They would like to wait and see if the reduced usage by Koch will allow the aquifers to refill over time.
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Through a study done by Garver Engineering, LLC, it has been determined that a water pipeline from Kaw Lake near Ponca City to Enid would be the best solution to our water problem. The Kaw Lake pipeline project should supply the water needs of Enid for at least the next 50 years and serve up to a population of 75,000.
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The Kaw Reservoir, coupled with continued (but decreased) use of the City’s well fields, has several advantages. Because Kaw Reservoir is on the Arkansas River, there is the opportunity to take advantage of different rainfall events. Additionally, Kaw Reservoir performed comparatively well during the recent period of drought. Enid would move around 20 million gallons of water per day from Kaw Lake.
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Opponents question why so many other cities near the Arkansas River and Kaw Lake do not use the water to supply their cities. Stillwater is currently the only large community using Kaw's lake water. Some point out that the water will be saltier and dirtier than the current water that we use. There are also questions about the longevity of Kaw Lake which is a man made reservoir.
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The route from Kaw Lake to Enid is 57.3 miles but engineers are planning on as long as 70 miles of pipeline. To complete the project there would need to be an intake and pump station at Kaw, a pipeline, an intermediate pump station with potential storage location and a new water treatment plant in Enid. The pipeline project could be completed within the next five to seven years. According to the study done, the cost for all components of Enid’s project to tap Kaw Lake water was estimated to be $451 million. The City has since looked at reducing the costs to around $360 million and say it could come in even less.
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Opponents say that sales tax numbers are based on projected higher retails sales for Enid. If retails sales do not pick up over the life of the tax the City will have a shortfall that will need to be made up with other sources.
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The proposition would add a 3/4 cent retail sales tax to purchases beginning in January 2017 and a 1/4 cent sales tax beginning in April of 2018 (after the termination of the 1/4 cent tax that expires in March 2018). These monies would raise the additional funds needed to pay for a pipeline to Kaw Lake and the associated water system improvements.
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If the sales tax question fails Enid will see a reduction in sales tax of a 1/4 cent in March 2018. A passage of the sales tax could block the support of any future sales tax increase for the next 35 years.
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Enid's current sales tax is 8.350%, with the increase it would rise to 9.100%. Enid residents pay 4.500% to the State of Oklahoma, .350% to Garfield County and 3.500% to the City of Enid. The Oklahoma City sales tax rate is 8.375% while Tulsa has a sales tax rate of 8.517%. Claremore has a sales tax rate of 9.333% and Sapulpa has a sales tax rate of 9.500%.
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The tax is subject to approval by a majority of the registered voters of The City of Enid, Oklahoma. The Three Quarters of One Percent Tax would become effective January 1, 2017 and the One Quarter of One Percent Tax would become effective April 1, 2018 (after the March 31, 2018 termination date of the one quarter of one percent (0.25%) excise tax currently levied by The City of Enid, Oklahoma pursuant to Ordinance No. 2002-49 of the City). Both the Three Quarters of One Percent Tax and the One Quarter of One Percent Tax would terminate after March 31, 2052.
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The Commissioners also voted for the formation of an oversight committee. A citizens oversight committee would oversee the expenditure of sales tax funds which will fund the Kaw Lake Water Project. The members of the Committee would be appointed upon the passage of the sales tax.
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Kaw Lake Pipeline Vote On Tuesday
Koch numbers are somewhat off here. Reported numbers have been all over the place but it seems that a good average is about 6 million a day. City officials stated at the Ambucs meeting Koch will use .5 to 1.5 a day. Huge reduction.