Oklahoma State Question 833 has failed

OKLAHOMA CITY (KFOR) - Oklahomans have voted against State Question 833 in the 2024 general election. SQ 833 would have allowed the creation of Public Infrastructure Districts.

Here is your breakdown of the ballot title:

Legislative Referendum 376
Public Infrastructure Districts

This measure adds a new section, section 9E, to article 10 of the Oklahoma Constitution. Section 9E will permit the creation of public infrastructure districts to provide support, organization, operation, and maintenance of services. To create such a district, proponents for creating the district must file a petition with the municipality. The petition must include the signatures of one hundred percent of all surface property owners falling within the district’s proposed boundaries. The municipality possesses the right to impose limitations on the district’s powers prior to approving the district. Once approved, the district will be governed by a board of trustees. Through the board, the district may issue bonds to pay for all or part of all public improvements implemented by and for the public infrastructure district. The district will be limited to issuing bonds issued for such improvements not exceeding ten (10) mills. For repayment of the bonds, the district, acting through its board of trustees, will levy and assess a special assessment on all property benefiting from the improvements in the district. Section 9E also authorizes the Legislature to enact laws necessary for the implementation of public infrastructure districts.

Shall The Proposal Be Approved?

• FOR THE PROPOSAL – YES
• AGAINST THE PROPOSAL – NO

If passed, SQ 833 would allow the establishment of Public Infrastructure Districts—or PIDs—within their city limits.

A “yes” vote supports allowing municipalities to create public infrastructure districts when all property owners within the proposed district sign a petition. Allowing PID's to issue bonds for public improvements.

A “no” vote opposes allowing municipalities to create PID's with the authority.

What is a PID:

A PID according to okvoterguide.com, is a means to fund infrastructure improvements. While it works like a tax, it is actually an assessment on property. A group of property owners within the proposed district, such as a housing subdivision or a retail shopping center, determines that an extra need is necessary. Examples of those needs, which would apply only within the PID’s boundaries, are expanded public transportation, improvements to water and sewer, additional park maintenance, or upgrades to internet service.

PIDs would be able to establish a special property tax to fund and maintain infrastructure and amenities within their boundaries. The process to establish a PID begins with a petition that includes the signatures of all property owners within the proposed district. Afterwards, the petition is filed for city approval.

What would Oklahoma State Question 83 do if passed?

If passed, State Question 833 will amend the Oklahoma Constitution to authorize municipalities to create Public Infrastructure Districts (PID) to finance infrastructure improvements.

PROPONENTS SAY:
YES

• PIDs help municipalities finance the infrastructure to handle growth in a specific area of the city.
• A PID creates a balance between protecting private property rights and allowing cities and towns to have the flexible tools needed to grow or improve certain areas.
• A PID allows for the city to provide oversight with a fixed repayment plan and a defined term.
• Other financing options for city improvements spread debt across all citizens.
• Once the development is in place, the PID assessment is a beneficial tool for debt repayment or maintenance.

OPPONENTS SAY:
NO

• The formation of a PID can create extra work for staff and elected officials.
• The city is responsible for ongoing expenses until the end of the bond repayment period.
• New property owners may not be aware of the PID and the associated costs required from those owners.
• Changes to the housing market could impact developers who would then be required to repay PID debt.
• PIDs are unlikely to be able to issue bonds without a revenue-generating development in place.