Tulsa's $2B Street Plan Going to Voters After Heated Meeting

DALLAS - Voters in Tulsa will decide in November on a 12-year, $2 billion street maintenance program after a divided City Council narrowly put the measure onto the ballot during a heated meeting Thursday night.

The plan will be financed in part with $770 million of general obligation bonds that would require a gradual increase in the city's property tax rate.

However, Mayor Kathy Taylor said on a local television station's early Friday morning news show that she is considering a veto of the council's decision to put the program to the voters in November.

"That still has to come to my desk to review and sign," she said during the KOTV-TV interview. "So certainly, if voters have an opinion about what happened last night, I encourage them to call me and call the council, because it is not on the ballot yet."

Taylor had supported the $2 billion program, but later offered a five-year, $451.6 million plan financed with $285 million of GOs. The council voted unanimously to put a street program before the voters in November, but split 5 to 4 Thursday night in support of the $2 billion program.

The mayor said she suggested the shorter program after hearing complaints at public hearings on the street effort that the 12-year, $2 billion option was too expensive and too lengthy in unsettled economic times. She said dedicating $770 million of GOs to the program would result in no bond proceeds for public safety capital needs until 2022.

"I'm just curious about the council's actions," Taylor said. "Both the police and fire chiefs said the 12-year program was detrimental to public safety."

"The streets have to be fixed, and I hope we have passed something that will fix the streets," she said. "I'm concerned because all the polling data indicates the public is opposed to the program by a 2-to-1 margin."

If voters reject the plan in November, Taylor said, "we will have spent a lot of time and money on something that right now looks like an uphill battle."

Councilor Bill Martinson, who led the development of the $2 billion street program, dismissed the objections of the two chiefs, whom he said had initially accepted the financial plan.

"I don't hold them responsible for any subsequent wavering," he said. "After all, they work for the mayor, and they have families."

"If we can just get some of the rhetoric and controversy behind us, we can move forward and educate the voters," he said.

Martinson said the mayor would be within her power to veto the council's action of setting the election, but doubted she would do so.

"The council passed it, and it is in her hands right now," he said. "It would be devastating for Tulsa if she vetoes it."

Councilor Bill Christiansen, who has opposed the 12-year program since it was first proposed, said it was a mistake to issue almost $800 million of debt for the effort.

"The 12-year plan is like a homeowner paying off his mortgage and not having money to buy the weekly groceries," Christiansen said.

Councilor John Eagleton, who voted in favor of the election on the $2 billion street effort, said it would be a mistake for Taylor to veto the election.

"This is a rock-solid program that has been vetted and discussed since October of last year," he said. "If she wants to veto it, bring it on."

"It will be the end of her political life," Eagleton said. "People are already lining up to run against her in 2009."

Eagleton said the contentious council meeting was a sign of a healthy democracy.

If voters approve the plan, Tulsa's property tax rate would rise over 12 years to 16.8 mills from the current 13.5 mills.

The $2 billion plan would run from 2010 to 2021 and is designed to bring arterial and residential pavement conductions to an acceptable level.

The street bonds would be supported by extending until 2021 a combined 1.76% sales tax that includes the city's third-penny 1% sales tax that will expire in early 2013, the county's 0.0167% Four-To-Fix II sales tax that will expire in 2012, and the countywide 0.6% Vision 2025 sales taxes set to expire at the end of 2016.

The city's GO debt is rated Aa2 by Moody's Investors Service and AA by Standard & Poor's.

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