City Beat September 21, 2021

City Beat

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September 21, 2021

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News & Updates

City Council hears presentation on use tax

Adoption of an ordinance could be considered next month

Adoption of a use tax ordinance that would enable the City to collect existing sales tax on items purchased from out-of-state sellers — which could total as much as $3.7 million annually for the City — was the topic of discussion by the City Council during a meeting held Monday.

The council heard a presentation on use tax and its implications for Bartlesville if ultimately approved by the council. Adoption of the tax would not mean a tax increase for Bartlesville residents but rather would allow the City to collect the existing sales tax from out-of-state sellers, City Manager Mike Bailey told the council.

"Use tax is a companion tax to sales tax that was traditionally paid by the purchaser and not the seller. Until very recently, use tax had a very low compliance rate for individuals and, because of this it was primarily regarded as a business-type tax," Bailey said.

But a change in the law based on a U.S. Supreme Court Decision (South Dakota v. Wayfair) in 2018 now requires most sellers to collect and remit use tax, ending use tax as it was traditionally known. Now a majority of use tax growth is related to sales traditionally considered sales tax. In Oklahoma, use tax grew an average of 12 percent from 2019 to 2021, compared to a 2 percent growth in sales tax.

"The growth in online sales has led to a substitution from sales to use tax, and purchases that have traditionally generated sales tax are now accounted for as use tax," he said. "Due to these changes, use tax is no longer primarily a business tax and is increasingly composed of consumer purchases previously taxed as sales tax.

"As a result of this substitution, use tax growth is outpacing sales tax growth by a large margin. In fact, use tax has grown by 12 percent across the state in the last 24 months, while sales tax has only grown by 2 percent during that same period. Staff believes that the pandemic accelerated the growth in online shopping which harms our traditional sales tax. It is expected that habits formed during the pandemic will continue, so this effect will likely be permanent."

In Bartlesville's peer cities, use tax grew 22 percent over the two-year period, Bailey said.

An analysis performed earlier this year indicated that Bartlesville is in the minority in the state by not having a use tax. Statistics compiled prior to the most recent census based on population include:

Bartlesville is the 12th largest city in the state.
Bartlesville is the only city in the top 100 by population without a use tax.
The next largest city without a use tax is Bethel Acres with 3,147 population.
There are only two cities (including Bartlesville) over 1,500 population without a use tax.
98.5 percent of the cities in the top 200 by population have a use tax.
97 percent of the cities in the top 300 by population have a use tax.

"Traditional sales tax is still our largest source of revenue, but much of the growth in retail sales is shifting to online sales," Bailey said. "Without a use tax, we will likely be forced to continually increase our sales tax to overcome the lack of growth. This is an unsustainable model that requires diversification to avoid long-term disruption to essential services."

The council could consider adoption of an ordinance for use tax next month, but the tax would not actually be implemented until January 2023.

"If the council elects to implement a use tax, staff would recommend adopting an ordinance with a future effective date to allow for adequate planning by local businesses and residents, and that the tax be adopted before the expiration of the American Rescue Plan Act, which is Dec. 31, 2024," Bailey said.

Starting the tax in mid-fiscal year (January) would allow staff to budget more accurately for Fiscal Year 2023-24.

Hillcrest Drive reopens

Hillcrest Drive reopened to through traffic on Monday following a three-week closure to facilitate the voter-approved Hillcrest Drive Rehabilitation Project. Reduced speed limits will remain in effect due to construction still ongoing adjacent to the new road. The project involves reconstruction of Hillcrest Drive from the Caney River to just north of 20th Street. The new roadway consists of two 12-foot-wide drive lanes with six-foot-wide asphalt shoulders. Turn lanes have been constructed at Shawnee Avenue and 20th Street. A pedestrian path will also be constructed in the area. The project is expected to conclude by the end of the year.

Yard debris collection set for December 6-10

The City of Bartlesville will offer a free residential yard debris collection the week of Dec. 6-10.

During this special collection week only residents may place their leaves, grass, lawn clippings and other yard debris at the curb in bags on their normal trash collection day for collection by Solid Waste Department crews.

The collection is for the following items only:

Leaves
Grass
Lawn clippings
Limbs and branches if cut in lengths no longer than four feet and bundled (may not exceed 50 pounds)

During the week of Dec. 6-10, yard debris bags will not require yard waste stickers and clear or colored bags are allowed. The collection is for private residences only; no commercial collections will be made.

There is no limit on the number of bags a resident can put out for the collection. Yard debris will only be collected once, on your normal collection day of the week. Extra bags or items of household refuse outside the cart must have the red refuse sticker attached. Residents should comply with all other standard refuse regulations.

For more information, contact the Solid Waste Department at 918.338.4130.

Shortages cause delay in BCC seat project

Events to continue as scheduled; seating availability unaffected

Labor and material shortages are to blame for a delay in the Bartlesville Community Center Auditorium Seat Restoration Project, a voter-approved project that got underway this summer.

But, as they say, the show will go on, and performances and events planned at the world class Community Center will continue as scheduled.

The project, which is funded by the City’s Half-cent Capital Improvement Projects (CIP) Sales Tax, consists of upgrading 1,707 auditorium seats with new paint, new padding, new armrests with cup holders, new hardware and other minor upgrades.

The renovation got underway in July, with the BCC placing a “construction hold” on the auditorium for July through September.

“This hold permitted the contractor, Cy Young, to remove all auditorium chairs by the end of July, renovate them in August and the beginning of September, and install them at the end of September,” said City of Bartlesville Project Engineer Emily Taber. “This would allow October performances to proceed with an adequate number of chairs, and allow Cy Young to continue installing chairs throughout October and November to meet the performances’ seating demands.”

But the plan hit a snag recently with labor and material shortages impacting the contractor and subcontractors on the project, Taber said.

“While this plan seemed doable, it left little room for unforeseen circumstances and, unfortunately, these unforeseen circumstances have, in fact, occurred,” Taber said. “Both Cy Young and its subcontractors are enduring great labor shortages, leaving them with few employees to accomplish their work. Additionally, several of the subcontractors have experienced material delays and malfunctions, preventing Cy Young from receiving materials on time.”

Due to these uncontrollable circumstances, construction will pivot to the predetermined backup plan, Taber said.

“Cy Young will continue construction at their Kansas facility as materials and laborers become available,” she said.

Scheduled events and performances at the BCC will continue unaffected, she said.

“As of now, performances and seating capacity will remain unchanged,” Taber said. “The only thing different will be the type of seating, as the BCC will utilize rented, temporary seating until the renovated seats can be reinstalled.”

Taber said that due to the circumstances, it’s difficult to name a new target date for completion, but City and BCC staff will continue to work with the contractor to have the restored seating installed by the end of the year.

“The City and the BCC appreciate the BCC’s patrons and donors and are working tirelessly to return the auditorium to its grandeur and full functionality by the end of 2021,” she said.

'Delaware: The Faces of Lenape' on exhibit

The Bartlesville Area History Museum will present the special exhibit "Delaware: The Faces of the Lenape" in Pioneer Gallery through the end of November, BAHM announced this week.

The exhibit contains 21 panels and more than 70 artifacts and covers the story of the Lenape people, from Lenapehokin to Washington County.

Museum entry is free, but donations are accepted. BAHM is open 8:30 a.m. to 4 p.m. Monday through Friday. For more information or to book a group tour, contact the Museum at 918.338.4290 or history@cityofbartlesville.org.

EAC News

Elaine Banes is EAC Employee of the Month

Executive Administrative Assistant Elaine Banes has been named Employee of the Month for August by the City Employee Advisory Committee.

The EAC consists of City employees who meet regularly to discuss and identify needs for City employees who are not represented by a bargaining agent.

Banes was nominated for the recognition by City Manager Mike Bailey, who cited Banes' ability to "de-escalate nearly any situation" and make people feel "valued and heard."

"Elaine is one of the hardest working and reliable employees in the City," Bailey said in his nomination. "She takes great initiative in her work and is completely self-motivated. Elaine constantly receives berating phone calls and office visits from citizens who are upset at someone or something else, yet she handles these with grace and dignity. She has a rare ability to deescalate nearly any situation and make the other person feel valued and heard.

"Elaine's work is incredibly important in the Administration Department, but her service goes far beyond just administration. She coordinates the agendas for nearly every committee and authority in the City, monitors appointments for those same groups, directs calls for every department, and in general makes every

City Manager Mike Bailey, right, presents Executive Administrative Assistant Elaine Banes with Chamber Bucks and a $25 Hideaway Pizza certificate. Banes was named Employee of the Month for August by the Employee Advisory Committee.

department better. "In short, she is a model from which we can all learn. I cannot think of a more valuable employee than Elaine Banes, and I would like for her to be recognized for her many contributions and decades of service to the City."

Employees of the Month receive a $25 gift certificate to a local restaurant, $25 in Chamber Bucks and eight hours of special vacation pay.

Compton earns EAC award for September

Police Officer Sierra Compton has been named Employee of the Month for September by the City Employee Advisory Committee.

Compton was named for the award after being nominated by Bartlesville Area History Museum Manager Debbie Neece.

"Bartlesville resident, Jim Sutherland was struggling in the July heat to mow his grass with a walker in one hand and an electric mower in the other," Neece said. "The process was slow for Mr. Sutherland but he was determined to accomplish his goal. Several people asked to help but Sutherland persevered.

"Then Officer Compton noticed the struggle and did not take no as an answer. She asked and finished the task for Mr. Sutherland.

"I would like Bartlesville residents to understand our police officers are much more than law enforcers, they are peace keepers and they have heart for the citizens of Bartlesville. Thank you officer Compton."

City Manager Mike Bailey, right, presents Police Officer Sierra Compton with Chamber Bucks and a $25 Hideaway Pizza certificate. Also pictured are Lt. Chris Mimms, left, and Deputy Chief Rocky Bevard.

Do you know a City of Bartlesville employee who deserves special recognition? Let the EAC know! Email your information to EAC@cityofbartlesville.org.

Your Letters

I wanted to pass along my thanks to Gary Young. I posted a photo on social media of a large hole I found in my yard under some pavers. I was asking others in the group what it was for and if I could safely fill it in.

The next evening I received a message from Gary saying that the City Water Utilities is often called to check out these situations. He gave me the number to call.

I called the number the next day and requested someone to come out. Gary was sent out that very same day and confirmed it was an old water shut-off and I could safely fill it in.

I appreciate him taking the time to message me in the evening and the promptness of the City in responding.

It enabled me to make my yard much safer for myself and the next homeowner.

Janis Blanton

Bartlesville

Volunteer Opportunities

Board, Committee & Commission Openings

The City of Bartlesville has numerous boards, committees and commissions that are driven by citizen volunteers. All citizens are encouraged and welcome to apply.

Board applications are located online and in the city manager’s office, located on the second floor of City Hall, 401 S. Johnstone Ave. Applications are kept on file for two years. To view a complete list, see Boards, Committees & Commissions.

The City currently has the following committee/board openings: