Sales tax election weighed for Oklahoma County jail funding

With costs escalating for a bond-financed replacement jail, an Oklahoma County oversight board on Tuesday endorsed holding a special election on a sales tax to help fund the construction and operation of the facility.

The Citizens Bond Oversight Advisory Board voted unanimously in support of the move although there were no details on a potential tax rate or timing for an election.

"We are the only county in the state that does not have a sales tax to help support its operations, including the jail operation," Board Vice Chair Mike Mize said. "And the other thing is the need for the jail in terms of providing a safer environment for detainees, for staff, is just incredibly urgent. And I do believe that a sales tax is probably the best way at this point to try to fund that."

The proposal could be taken up by the county board of commissioners at its Jan. 29 meeting.

In June 2022, county voters approved $260 million of general obligation bonds to finance a jail and $45 million of the authorized debt was sold in 2023. Since then, costs have climbed to an estimated $672 million for a facility that would accommodate 2,400 inmates and include four courtrooms.

Last year, the county began exploring a public-private partnership to supplement the GO bond financing.

Raymond James, Morgan Stanley (MS), and Jefferies responded to a request for proposals, which listed two lease-purchase financing options ? $450 million for the jail in its entirety or $41 million for the jail's mechanical and electrical equipment. The terms called for an up to 30-year commitment and the issuance of tax-exempt and taxable fixed-rate bonds backed by the county's annual appropriation of lease rental payments.

The project also faced delays when Oklahoma City in June denied a special use permit for a jail site on the city's outskirts, leading the county to file a lawsuit.

The dispute was settled by a legal opinion issued by Oklahoma Attorney General Gentner Drummond on Dec. 30. The opinion stated that while the county is not "a superior sovereign" to Oklahoma City, it has immunity from the city's zoning power over the jail site.

The county aims to replace its 13-story detention center in downtown Oklahoma City ? which opened in 1991 and has been under state and federal scrutiny for health, safety, and other concerns ? with a facility that will have room for medical and mental health treatment.