Subject to expiration dates and discretionary termination dates listed below, the sales tax for the City of Kingfisher shall be three and one half percent (3 ½%). The use of this sales tax revenue shall be used as described in the remainder of this Section. Said taxes have been approved by a majority of the qualified registered voters of the city voting on the same in elections conducted in the manner prescribed by Oklahoma Statutes.
A. Functions Of City Government: The city shall impose a two percent (2%) sales tax, the purpose of which is to provide revenue for the support of the functions of the municipal government.
B. Kingfisher Regional Hospital:
1. Sales Tax Extension: It is hereby declared that the date of the additional one percent (1%) sales tax levied by resolution 270 shall be extended from December 31, 2009 to December 31, 2034.
2. Purpose: The proceeds of said additional sales tax shall be transferred to Kingfisher Regional Hospital or, to the extent to be used for bond debt service, to a public trust of which the city is the beneficiary, for the purpose of securing financing to develop and construct a new hospital facility, paying the debt thereby incurred, and current capital improvements, operations, maintenance and salaries of said hospital.
3. Requirements: Kingfisher Regional Hospital shall provide to the city a regular accounting for the proceeds of said one percent (1%) sales tax, the details and frequency of which shall be governed by an amended operating agreement to be entered into between Kingfisher Regional Hospital and the city within six (6) months of the effective date hereof. Said amended operating agreement may provide other requirements, including, but not limited to, the establishment of a designated account or other procedure for debt retirement and representation of the city on a hospital advisory board. Until said amended operating agreement is entered, the current operating agreement shall remain in full force and effect.
4. Limitations: Said sales tax extension may be subject to either automatic or discretionary early termination under the following circumstances:
a. Automatic Termination:
(1) The one percent (1%) additional sales tax shall automatically terminate if: a) the payment obligations arising from the debt incurred to develop and construct the new hospital facility are completely satisfied; or b) sales tax proceeds in an amount sufficient to satisfy all payment obligations relating to the debt incurred to develop and construct a new hospital facility are deposited with a trustee, escrow agent or other independent party by the hospital in an account established for the sole purpose of satisfying these payment obligations with irrevocable instructions to pay the debt from the city and all parties who are obligated to satisfy the debt.
(2) An automatic termination occurring under the terms of this subsection shall not preclude a new sales tax being levied for the purposes of financing ongoing hospital operations based on a majority vote of the citizens of Kingfisher at an election called for that purpose.
b. Discretionary Termination:
(1) The city commission may terminate the one percent (1%) additional sales tax by majority vote at any regular or special meeting if: a) development or construction has not commenced on the new hospital facility by December 31, 2009; or b) the hospital ceases to operate as a hospital or ownership transfers to a different entity; provided, that all debt has been defeased as provided in subsection B4a of this section if financing for construction of the new facility has been obtained through the sale of municipal bonds or municipal notes. For the purposes of this subsection, development is considered to have commenced upon acquisition of property designated as the site of the new hospital facility and the diligent pursuit of development and construction planning and work, as evidenced by seeking required zoning approval, if any, selecting architects and contractors, preparing design drawings, or other activities evidencing development and construction planning and work.
(2) If the hospital ceases to operate as a hospital or ownership transfers to a different entity, and the city commission does not terminate the one percent (1%) additional sales tax, the proceeds thereof shall be utilized for economic development, which shall include, but not be limited to: marketing the city as a potential site for new business and industry, retention of existing jobs and creation of new jobs by expansion of existing industry or business, and such capital improvements as may be required in relation therewith.
5. Effective Date: This subsection shall become effective on June 1, 2006, after approval by a majority of the voters voting on the question at an election to be held on May 9, 2006, and shall remain in effect until December 31, 2034, at which time the additional one percent (1%) sales tax shall automatically terminate, unless said tax has terminated at an earlier date as described in subsection B4 of this section.
C. Fire, Infrastructure, Recreation, and Emergency Services (FIRE) Tax:
1. Sales Tax Creation: It is hereby declared that beginning on July 1, 2021 an additional one-half of one percent (1/2%) sales tax shall be levied and collected pursuant to the terms of this Chapter of the Kingfisher City Code, subject to the approval of a majority of the qualified electors of the City of Kingfisher voting on the same in the manner prescribed by law. Said sales tax shall be for a period of ten (10) years, beginning on July 1, 2021 and ending on June 30, 2031.
2. Purpose: The proceeds from this additional sales tax shall be used for the construction and/or improvement of capital assets owned by the City of Kingfisher or any Title 60 Public Trust of which the City of Kingfisher is the sole beneficiary. During the life of the tax, the proceeds realized from that additional one-half of one percent (1/2%) cent sales tax shall be used for: New Fire Station; Street Improvements; Capital Improvement Projects as approved by the City Commission. Revenue realized from the Capital Improvements sales tax can be transferred, by the City of Kingfisher, to any Title 60 Public Trust of which the City of Kingfisher is the sole beneficiary, so long as the funds transferred are to be used in accordance with the provisions of this Subsection C. (Ord. 902, 3-6-2006; amd. Ord. 956, 4-13-2015; Ord. 2020-011, 8-10-2020; Ord. 2021-002, 3-10-2021)