The City of Seminole is considering levying a 1/8 cent excise tax to fund construction of its new wastewater plant that is costing twice as much as originally estimated.

In November 2021, Seminole voters approved the extension of a halfcent sales tax to pay for a $20 million plant, but since then construction costs have risen to $40 million. As reported in the May 4 edition of the Seminole Producer, the City Council will meet tonight, Tuesday, May 6 to discuss options for funding the project.

“The city council had prepared for a $21 million hit to our budget, and although we would need to tighten up our bootstraps, it was a number we were comfortable with,” said City Manager Steve Saxon. “But $46 million is way out of our comfort zone, and we have lost countless hours of sleep coming up with ways to pay for this plant.”

According to the meeting agenda, the council will consider a proposal to put the additional tax before voters on July 8. If approved, a 1/8 cent excise tax will go into effect Oct. 1 and remain in effect for 40 years, or until the debt is paid in full.

If the council approves the calling of the election, the July ballot will read as follows: “Shall Ordinance No. 1307 of the City of Seminole, Oklahoma, being an Ordinance amending the “City of Seminole Sales Tax Ordinance”, which will increase the excise tax levy in said Ordinance by oneeighth of one percent (%) upon the gross proceeds or gross receipts derived from all sales taxable under the Sales Tax Law of Oklahoma beginning on October 1, 2025; providing that the proceeds of such additional excise tax shall be used solely for providing revenues for paying debt service on indebtedness or refinancing indebtedness incurred on behalf of the City by the Seminole Municipal Authority for the purpose of constructing a new wastewater treatment plant for the City of Seminole, Oklahoma; providing that said tax shall no longer be levied or collected when said indebtedness is retired, or October 1, 2066, whichever shall be earlier; making provisions cumulative; and providing severability of provisions, be approved?”

The city is also eyeing staff reductions and a $5 per month sewer rate increase to fund the plant’s construction.

Tonight’s meeting, which is open to the public, is scheduled to get underway at 6 p.m. in the Goldie Barnett Conference Room of the Seminole Public Library.