The Council estimates MAPS 4’s revenue projection as almost $1.1 billion.
Strong sales tax revenue that exceeded estimates from April 2020 through July 2022 by approximately $12 million is the reason for the increase, according to city officials.
Revised projections show that the city will gain an additional $100 million over the temporary sales tax’s duration.
“In addition to strong economic growth, some unique inflationary events happened these last two years, and they needed to be accounted for,” said Mayor David Holt. “Without a re-estimate and re-allocation, we were asking the MAPS 4 projects to face the downside of inflation without the upside we were seeing in sales tax revenues. Without this action, projects would have been scaled back at the same time we were sitting on record revenues. MAPS 4 was headed towards having an enormous excess revenue balance at the end of its collection in 2028, and though there are worse problems to have, that is not an ideal outcome; those funds should be available to the 16 priorities our voters endorsed in 2019. This action appropriately brings things back into balance, and I commend the City Manager, his finance team, the MAPS 4 leadership, and the Council for helping us come to such a thoughtful outcome, while still following the conservative fiscal philosophies that are so important. Once again, this City government is demonstrating why OKC is one of the best-managed cities in the country. In this case, we’ll see the benefits of that smart management in higher-quality MAPS projects, the flagship of our city’s renaissance for three decades.”
The increased revenue will be spread among MAPS 4‘s 16 projects based on the project’s proportional share of construction costs; the Fairgrounds Coliseum and the Paycom Center/practice facility are exceptions.
Around $12 million of the Paycom Center’s revised projections will be used to help cover the Fairgrounds Coliseum’s higher-than-anticipated building costs.
“When estimating sales tax revenue over an eight-year period, you have to assume there will be downturns in the economy,” said Finance Director Brent Bryant. “That’s why we budget so conservatively.”
The city’s revised revenue allocation for MAPS 4 projects is broken down below:
“The unexpectedly brisk sales tax collection is a huge win for each of the MAPS 4 projects,” said MAPS Program Manager David Todd. “The additional funding will help offset increasing construction costs due to inflation.”
A temporary penny sales tax funds MAPS 4, and is projected to raise $1.07 billion over eight years. Voters approved the sales tax in a special election on Dec. 10, 2019.
The sales tax began funding MAPS 4 on April 1, 2020, and ends in 2028.