The City of Eufaula has officially started the process to ask voters to approve a 1-cent increase in the local sales tax in order to repair city streets.

If it passes, the additional tax would be collected beginning July 1, 2025 and continue through June 30, 2040.

The city has published a legal notice calling for a special election to vote on Resolution 24-11-1 on Feb. 11, 2025, authorizing the calling of an election on the proposition.

The proposition states: Shall the City of Eufaula be authorized to levy and assess a City excise tax (sales tax) of one percent (1.0%), in addition to all other City, County, and State excise taxes presently being levied or assessed, upon the gross proceeds or gross receipts derived from all sales taxable under the Oklahoma Sales Tax Code; providing the proceeds of such tax shall be used to fund street improvements and/or for the payment of debt service in connection with obligations heretofore issued or to be issued by the City and any public trust having the City as beneficiary thereof to finance or refinance said street improvements; and provided said excise tax shall be levied beginning July 1, 2025 and terminating June 30, 2040; all as more specifically set out in Ordinance No. 24-11-1 of the City?

Yes – For the above Proposition.

No – Against the above Proposition.

Only registered, qualified voters of the City of Eufaula may vote on the proposition.

At a special meeting on Thursday, Nov. 21 the city council agreed to ask voters to increase the city sales tax by 1 cent in order to raise $8.5 million for the project.

If voters agree in February to the tax hike, the city can create an $8.5 million loan package, move forward with engineering and create a final work plan.

“The engineers’ assessment will determine where the project will start,” Jones said.

The street project is expected to be finished in two years.

Jones said the streets are in bad shape, just like the water and sewer lines were when work began on them.

If voters decide on a ½-cent sales tax, there would not be much improvement to the streets.

“It would basically be an overlay, only,” he said. “No rebuilding, just cover cracks and pot holes.”

Some streets need to be replaced, drainage repaired, base fixed.

“Your road is only as good as what is underneath,” Jones said.

A 1-cent sales tax would bump Eufaula’s tax from 3.5 cents to 4.5 cents, making it one of the highest in the area. The current sales tax in Checotah and Henryetta is 4 percent; Durant, 4.375 percent; in Warner, 5 percent. The tax in McAlester is 3.75 percent.

It must pass by a simple majority – 50 percent, plus 1.

The city would begin seeing the money from the increase in September 2025.

Jones said the council hasn’t decided exactly which streets would be affected. The variable will be how many streets are overlaid and which streets are reconstructed. “Based on a mixture of overlaying and reconstruction, I would estimate 10 to 11 miles of streets would be worked on,” Jones said.

There are 41.75 miles of streets in Eufaula.