1. Why vote? Each voter has a choice to make.
2. Why do we need a new Wastewater Treatment Plant?
3. What happens if we do not build a new Wastewater Treatment Plant?
4. How will the community benefit from a new Wastewater Treatment Plant?
5. When does construction start?
6. What is included in the project?
7. What is the life span of a Wastewater Treatment Plant?
8. Why are we not using American Rescue Plan Act (ARPA) funding?
9. The Wastewater Treatment Plant project is already underway. Why is the City Commission asking for the Citizens to decide how to pay for it?
10. If the 0.5% sale tax passes, what will happen to the Utility Improvement Fee?
11. What would be the lowest utility bill-base rate once the full fee is implemented?
12. Is the Utility Improvement Fee in addition to the existing fees?
13. Would the Utility Improvement Fee be subject to annual inflation increases?
14. How much would the Utility Improvement Fee be, if the new sales tax is not approved?
15. Does the Utility Improvement Fee have an end date?
16. What is the difference between paying for the Wastewater Treatment Plant with the fee or with the sales tax?
17. Who pays sales tax?
18. How much will the 0.5% sales tax cost a Shawnee family every month?
19. Will the 0.5% sales tax cover the cost of the Wastewater Treatment Plant project?
20. How long will it take to raise the funds to complete the project?
21. When would the 0.5% sales tax end?
22. Why does the 0.5% sales tax not end after the loan has been paid?
23. How can I be sure this money will be spent on this project?
24. If the sales tax creates a surplus, what would the extra funding be used for?
25. How can I be sure any surplus tax collection would be spent on public infrastructure?
26. Will this change the municipal sales tax rate?
27. I thought the current sales tax rate was 9.495%. Where does the rest of the sales tax go?
28. How does Shawnee’s municipal rate compare to nearby communities?
29. What is the combined sales tax rate of close-by municipalities?
30. Is there any part of the City’s current 3.5% sales tax that would ever expire?
31. Is there any part of the County’s 1.495% sales tax that would ever expire?
32. Is there any part of the State’s 4.5% sales tax that would ever expire?
33. How does the 0.5% sales tax increase affect those living outside of the City limits?
34. When is the election and how can people register?
35. Who can I contact for more information?

1. Why vote? Each voter has a choice to make. (back)
In order to secure financing for the project that replaces the City of Shawnee’s 40- and 70-year old Wastewater Treatment Plants, a new Utility Improvement Fee was approved on August 15, 2022 and will take effect on March 1, 2023. Understanding the significance of a new fee, the City Commission asked that the voters be given the opportunity to decide whether they prefer a fee or sales tax option.

2. Why do we need a new Wastewater Treatment Plant? (back)
Doing nothing is not an option. Long term, doing nothing poses risk of harm to public health and the environment and likely would incur escalated enforcement action by the Oklahoma Department of Environmental Quality (ODEQ).

The Southside Wastewater Treatment Plant (SWWTP) was constructed in 1952. It has long outlived its design life. The treatment process used at the SWWTP requires extensive pumping. Key mechanical equipment and systems at the SWWTP are obsolete and result in excessive operation and maintenance cost and personnel efforts. In addition, various treatment process structures have cracks, leaks, or other structural issues or design limitations. The Northside Wastewater Treatment Plant (NWWTP) was constructed in 1982 and has also outlived its design life. Additional enhancements within the current footprint of the NWWTP would not be as cost-effective as building a new plant with long-term expansion capabilities.

The timely planning and implementation of plant and process improvement and replacement is highlighted by events that have occurred in other cities and states, including Baltimore, MD, Clatskanie, OR, and Seattle, WA. Similarly, crises affecting drinking water rather than wastewater have been publicized for Flint, MI and Jackson, MS.

3. What happens if we do not build a new Wastewater Treatment Plant? (back)
If the current wastewater treatment plants and processes were to fail, fines would likely be assessed by state and federal agencies, specifically ODEQ and the U.S. Environmental Protection Agency (EPA). The typical course of action would be a “consent order,” which requires the City to complete upgrades on a schedule determined by the state or federal agency.

4. How will the community benefit from a new Wastewater Treatment Plant? (back)
Environmental protection, as well as the protection of citizen health and safety, support for continued community growth, and future expansion capabilities are the main benefits of a new wastewater treatment plant. Furthermore, the cost of ongoing plant operations will be reduced since the new treatment processes will be more efficient, and the higher than normal maintenance cost associated with older infrastructure will be eliminated.

5. When does construction start? (back)
The Wastewater Treatment Plant project began in late September 2022 and is scheduled to be completed in 2025.

6. What is included in the project? (back)
The Wastewater Treatment Plant project includes three components:

• The construction of a new Northside Wastewater Treatment Plant which will serve the entire community;
• The conversion of the Southside Wastewater Treatment Plant into a lift station; and
• The installation of a wastewater transmission line from the Southside location to the Northside location.

7. What is the life span of a Wastewater Treatment Plant? (back)
The design life for a proposed treatment plant should accommodate no less than the 20-year projected population growth, as required by state law (OAC 252:656-9-1(c)).

It is important to note that the expected life for our existing plants would have had a similar design life. However, because of regular maintenance and intermittent capital rehabilitation projects, the Northside and particularly the Southside Wastewater Treatment Plants have lasted much longer. Experience has shown that properly maintained facilities can have a useful life of 30 to 50 years.

8. Why are we not using American Rescue Plan Act (ARPA) funding? (back)
The $8.3 million in directly allotted American Rescue Plan Act (ARPA) funding the City received was not enough to complete the Wastewater Treatment Plant project, which will cost $117 million in total.

It is important to note that the City’s ARPA funds as well as the City’s recent award of $9.9 million in State ARPA funding will be invested in water and wastewater line replacements in key locations, which will benefit the entirety of the water distribution and wastewater collection systems.

9. The Wastewater Treatment Plant project is already underway. Why is the City Commission asking for the Citizens to decide how to pay for it? (back)
A delay in the Wastewater Treatment Plant project would have resulted in further cost increases due to rising loan interest rates as well as rising material costs. With the understanding that timing was a critical factor, the City Commission chose to move forward and put in place the incremental Utility Improvement Fee to pay for the project. At the same time, the City Commission also requested that the Citizens of Shawnee be given the opportunity to decide whether to pay for this Wastewater Treatment Plant project with either a 0.5% sales tax increase or through the Utility Improvement Fee.

10. If the 0.5% sale tax passes, what will happen to the Utility Improvement Fee? (back)
Based on the choice of the voters, if the 0.5% sales tax is approved, it would enable the City of Shawnee to remove the Utility Improvement Fee prior to its start date of March 1, 2023.

11. What would be the lowest utility bill-base rate once the full fee is implemented? (back)
The Utility Improvement Fee will have the maximum rate implemented in 2027 at $24 per month.  If the full fee was implemented today, the minimum utility bill would be:

It is important to note that water and sewer rates may be adjusted in future years based on inflation expressed in the Consumer Price Index (CPI).

12. Is the Utility Improvement Fee in addition to the existing fees? (back)
Yes, the Utility Improvement Fee would be in addition to all other charges and fees.

13. Would the Utility Improvement Fee be subject to annual inflation increases? (back)
No, the Utility Improvement Fee is excluded from the annual Consumer Price Index adjustment review.

14. How much would the Utility Improvement Fee be, if the new sales tax is not approved? (back)
The Utility Improvement Fee’s monthly rate is set to increase according to the following schedule:

 
Once the maximum of $24 per month / $288 per year is reached, the Utility Improvement Fee would stay in place until rescinded by the City Commission.

15. Does the Utility Improvement Fee have an end date? (back)
At this time, an end date to the fee has not been set.  The Utility Improvement Fee is necessary to provide the debt service coverage associated with a $65.6 million loan for the Wastewater Treatment Plant project.  Unless an alternate funding source is provided, such as the proposed 0.5% sales tax, the fee will need to be in place at least until the loan is paid off, which is estimated to be 2053 at the earliest.  At that time, the Utility Improvement Fee could be re-evaluated, but the City will continue to have other capital infrastructure demands for items including water, wastewater, and streets, which will require ongoing funding.

16. What is the difference between paying for the Wastewater Treatment Plant with the fee or with the sales tax? (back)
The Utility Improvement Fee will only be paid by Shawnee utility customers.  Each customer, including residents and businesses, will pay the same amount each month.  The proposed 0.5% sales tax would be paid by all people who make taxable purchases in Shawnee city limits, which includes residents, businesses, and visitors.

17. Who pays sales tax? (back)
Everyone who makes taxable purchases will contribute. This includes visitors who come to Shawnee.

18. How much will the 0.5% sales tax cost a Shawnee family every month? (back)
This will depend on how much the household spends on taxable goods and products each month. If a family spends $2,400 per month on taxable purchases, the additional 0.5% sales tax would equal $12.00, which is half of the final monthly Utility Improvement Fee.

19. Will the 0.5% sales tax cover the cost of the Wastewater Treatment Plant project? (back)
Yes, the 0.5% sales tax would pay for the third loan associated with the project, which accounts for $65.6 million of the $117 million project.  After paying the debt service obligations of this third loan, any surplus collections from the 0.5% sales tax could then be used to pay the debt service obligations on the other two loans for the project, which total over $51.4 million.

20. How long will it take to raise the funds to complete the project? (back)
Either the Utility Improvement Fee or the 0.5% sales tax would be used to meet the annual debt service coverage requirements for the life of the loan.  Once the Wastewater Treatment Plan project is complete in approximately three years, the amortization schedule for the loan will be finalized and will require re-payment over the course of approximately 30 years.

21. When would the 0.5% sales tax end? (back)
Similar to the fee option, the proposed 0.5% sales tax does not have an end date. The 0.5% sales tax would continue and also provide permanent funding for critical needs, including water, wastewater, and street infrastructure. These investments will support schools, businesses, and residents, alike.

22. Why does the 0.5% sales tax not end after the loan has been paid? (back)
The 128-year-old City of Shawnee has a significant proportion of older infrastructure that is costly to maintain and repair. Current funding levels are not sufficient to maintain a state of good repair for water, wastewater, or roadway infrastructure.   The sales tax increase would provide sustained funding.

23. How can I be sure this money will be spent on this project? (back)
If the 0.5% sales tax is approved, the City will then pledge the revenue source to the Oklahoma Water Resources Board (OWRB) for the term of the $65.6 million loan, which is estimated to continue through 2053.  Under that condition, the City must first utilize the revenue to satisfy the annual debt service obligations to OWRB.

24. If the sales tax creates a surplus, what would the extra funding be used for? (back)
Ordinance No. 2771NS, Resolution No. 6673, and the election proposition provide the legal obligations on the use of the funds provided from the 0.5% sales tax.  The specific language includes: “…providing the proceeds of such tax shall be used to fund capital expenditures, including but not limited to water, wastewater, and streets, for the use and benefit of the City and any public trust having the City as a beneficiary, and/or for the payment of debt service in connection with obligations issued by the City and any public trust having the City as beneficiary to finance or refinance said capital expenditures and related costs…”

25. How can I be sure any surplus tax collection would be spent on public infrastructure? (back)
Any surplus tax collection not used for loan repayment would be invested in additional critical infrastructure projects, whose selection would be guided by Capital Improvement Program policies which are currently being developed.

26. Will this change the municipal sales tax rate? (back)
Yes, the municipal sales tax rate would increase from 3.5% to 4.0%. This increase is equivalent to one half of one penny per dollar in taxable purchases.

27. I thought the current sales tax rate was 9.495%. Where does the rest of the sales tax go? (back)
The current combined sales tax rate of 9.495% consists of 4.5% for the State of Oklahoma, 1.495% for Pottawatomie County, and 3.5% for the City of Shawnee. With the proposed increase, the new combined sales tax rate would be 9.995%.

28. How does Shawnee’s municipal rate compare to nearby communities? (back)
Among neighboring communities, a municipal sales tax rate of 4.0% would tie with McLoud and Stillwater, and remain below the municipal sales tax rates of Midwest City, Norman, and Oklahoma City.

29. What is the combined sales tax rate of close-by municipalities? (back)
Combined sales tax rates for other communities in Pottawatomie County include: Bethel Acres (8.495%), Earlsboro (8.995%), Macomb (8.995%), McLoud (9.995%), Pink (8.995%), Tecumseh (8.995%), and Wanette (9.495%).

Combined sales tax rates for nearby communities of similar or larger size include: Edmond (8.5%), Midwest City (9.1%), Norman (8.75%), Stillwater (9.313%), and Oklahoma City (8.625%).

30. Is there any part of the City’s current 3.5% sales tax that would ever expire? (back)
Yes, in 2018 Shawnee residents approved a temporary 0.5% sales tax which will expire in 2028.

31. Is there any part of the County’s 1.495% sales tax that would ever expire? (back)
Yes, in 2016 Pottawatomie County residents approved a temporary 0.495% sales tax which will expire in 2026.

32. Is there any part of the State’s 4.5% sales tax that would ever expire? (back)
No.  This would require action by the Oklahoma State Legislature and/or a statewide election.

33. How does the 0.5% sales tax increase affect those living outside of the City limits? (back)
Every person who makes taxable purchases within Shawnee city limits would pay the proposed 0.5% sales tax. Any surplus sales tax collection would be reinvested into critical infrastructure and, thereby, would also benefit those who do not live in but come to visit Shawnee.

34. When is the election and how can people register? (back)
The sales tax election is set for January 10, 2023. To confirm your registration and find your polling place, please visit the Oklahoma State Election Board's Online Voter Tool.

35. Who can I contact for more information? (back)
Please contact the City Manager’s Office at 405-878-1601 or CityManager@shawneeok.org.