The Woodward News

Local News

September 25, 2013

City takes next step to start on fire station

Woodward, Okla. — Woodward city commissioners approved a resolution Monday night permitting the Woodward Municipal Authority to incur $9,000,000 in debt.

The debt will be guaranteed by sales tax proceeds on a sales tax approved by voters recently for the build out of a new fire department complex. It will allow work to begin soon on the new Woodward Fire Department complex, according to Woodward Mayor Gary Goetzinger.

"Voters passed the two questions and this is the next step to have the funding to start on the fire station that the citizens voted for," Goetzinger said.

Goetzinger noted city officials are in the preliminary steps of formalizing the loan and other requirements and he does not have an exact date when work will begin on the new fire station.

"But it should be soon," he said.

 Despite voting to waive the bidding process regarding which financial institution that would issue the debt, Consultant Nathan D. Ellis prepared and sent out bid packages to local banks and some national institutions.

"Even though we waivered the bidding process because it is through the Woodward Municipal Authority instead of the city, we still performed a bidding process and wound up choosing the lowest bid," Ellis said.

The indebtedness will be issued through low bidder J.P. Morgan Chase at a 2.68 percent.

In other business, city commissioners closed a sales tax loophole that allowed out of state online or catalogue marketers to sell their wares without charging use tax at the location of the buyer.

For instance, local businesses must charge and account for sales tax within the boundaries of Woodward. However, until the ordinance was changed, online marketers were not required to account for sales tax when they sold to Woodward residents, Goetzinger said.

The board closed that loophole by adopting Ordinance #1591, which amended Title II, Chapter 36 of the code of Woodward ordinances. The ordinance requires that online marketers charge a use tax and account for that with the city of Woodward.

"This ordinance had to do with the fact that we were trying to get our ordinances up to code to match the state's in this tax matter," Goetzinger said.

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