Good News

[ljbab728]

No one knows if this will be lasting but the it gives the constant naysayers something to think about.

http://www.newsok.com/oklahomas-fisc...adlines_widget

[Larry OKC]

Skimmed over the article and on the surface it is indeed good news ... we will take it where we can get it for sure.

Cautious Optimism
Just as the City Manager warned about the increase in collections for OKC, while above last years, we are still below what revenue was before the decline (in other words, we have risen a couple of steps but we started out at the top of the stairs, got sent to the bottom, there is no where to go but up...but at least we aren't digging a whole for a sub-basement). The City is expecting it to take up to 3 years just to get us back to where we were before the decline.

... monthly tax collections at times fell more than 30 percent below prior year collections and estimates. Reports released Tuesday show general revenue fund collections for July were 9.9 percent above last year.

So while 9.9% increase is very good, we are still below the (sometimes) 30%+ decline (still have to make up another 20% mol).

[ljbab728]

Skimmed over the article and on the surface it is indeed good news ... we will take it where we can get it for sure.

Cautious Optimism
Just as the City Manager warned about the increase in collections for OKC, while above last years, we are still below what revenue was before the decline (in other words, we have risen a couple of steps but we started out at the top of the stairs, got sent to the bottom, there is no where to go but up...but at least we aren't digging a whole for a sub-basement). The City is expecting it to take up to 3 years just to get us back to where we were before the decline.



So while 9.9% increase is very good, we are still below the (sometimes) 30%+ decline (still have to make up another 20% mol).

Of course we can't hope to get back to maximum prior tax collections in one leap, but it is a step in the right direction. Hopefully, at least, it means no additional cuts in funding or services are coming in the near future. And I'm sure someone is going to start in about how our bloated state government still needs more cuts, but spare me.

[Larry OKC]

I agree

[Larry OKC]

More good news...

There was an Oklahoman article a day or two after the one starting the thread that said OKC had a 15% increase over the previous years (article said it left City officials scratching their heads...LOL)

Wed morning as an in studio guest on Channel 9's morning news, the Mayor said there is "very good news", last months sales tax revenue check was the "highest in City history" and that MAPS 3 revenue is "over a million ahead of target".

[swilki]

Just out of curiosity, how much of the sales tax increase is probably due to all the crazy weather we have had lately? Take my household for instance - two new cars, new roof, paint on the house and gutters. Thats about $50,000 worth of taxable goods that I would have not purchased had the hail storm not destroyed everything that wasn't beneath ground. If the city receives some tax money off of those goods, then I wouldn't be surprised to see the revenues drop again after everyone has repaired everything.

[PennyQuilts]

Just out of curiosity, how much of the sales tax increase is probably due to all the crazy weather we have had lately? Take my household for instance - two new cars, new roof, paint on the house and gutters. Thats about $50,000 worth of taxable goods that I would have not purchased had the hail storm not destroyed everything that wasn't beneath ground. If the city receives some tax money off of those goods, then I wouldn't be surprised to see the revenues drop again after everyone has repaired everything.

Something to consider.

[Larry OKC]

True, the City Manager and others are urging cautious optimism (especially considering the scratching head comment) but if not mistaken this is 3 months in a row of increases. If you see a sudden drop again, you may be right. Can take some time for storm damage stuff to work its way though the system (insurance checks etc).

[Mikemarsh51]

Remember that the city made cuts to personnel and services to make up for the shortages. So if collections are up wouldnt that be somewhat of a windfall for the city?

[kevinpate]

Remember that the city made cuts to personnel and services to make up for the shortages. So if collections are up wouldnt that be somewhat of a windfall for the city?

Possibly.
Also possible is there was a sense amongst the dollar projectors the tide might turn in the early part of the fiscal year, and thus the city cut less than they might have cut if collections were stagnant or declining. I seem to recall some statements that the actual cuts were not pretty, but did end up being well below what was being discussed during the early part of the last quarter of the fiscal year that ended June 30.

Perhaps the good news of an increase is not a windfall exists, but instead a confirmation that further cuts can more likely be postponed or avoided?

And perhaps it is both and some cuts can be reversed.

[ljbab728]

Possibly.
Also possible is there was a sense amongst the dollar projectors the tide might turn in the early part of the fiscal year, and thus the city cut less than they might have cut if collections were stagnant or declining. I seem to recall some statements that the actual cuts were not pretty, but did end up being well below what was being discussed during the early part of the last quarter of the fiscal year that ended June 30.

Perhaps the good news of an increase is not a windfall exists, but instead a confirmation that further cuts can more likely be postponed or avoided?

And perhaps it is both and some cuts can be reversed.

I'm sure the city will want to see if the current upturn is sustainable before making any decisions about how to proceed with the additional funds.

[Larry OKC]

Which definitely seems to be the prudent course of action. Don't count your chickens before they hatch type of thing...

[soonerguru]

This is indeed very good news. I said it during all of the MAPS 3 arguments but my sense is that this city is about to boom economically, like nothing we've seen in a while. There's a critical mass developing: low unemployment, massive infrastructure investment, both public and private, national media focus, major job relocations (such as the HUGE Boeing announcement), expansion at Tinker and OU Medical Center, etc. All of this in combination with the fact that other regions are struggling to recover to me signifies OKC is on the cusp of something very big. Call me an optimist.

[ljbab728]

And then there is this:

http://www.news9.com/global/story.asp?s=13026011

http://financialedge.investopedia.co...n-Workers.aspx

[Larry OKC]

Williams said because Oklahoma City and the metro is not overbuilt like other cities he expects to stay ahead of other states when it comes to construction.

"We can continue to build. Most other places speculated in office space, retail space, commercial space," Williams said. "It's a good place to be. I wouldn't want to live anywhere else."

Sounds like he is saying because we didn't have anything, thats why we are building...other cities already had things built so there isn't anything to build??


Am curious, when they talk about the increase in building permits, is that exclusive to new construction (like Devon) or could it be partially due to the results of our wonderfully wacky weather?

[Mikemarsh51]

We do have alot of good news! But with the Cities website, the information on sales tax collection report information is not technically correct. The CM states that we are doing well, yet our sales tax collections are still approx. $19,000,000.00 short. The budget was adjusted in April and cuts were made and fund balances were used to fill the budget holes. How long is the city leadership going to continue to use the tactic that we are behind. Adjusted budget + fund balances + higher tax collections = A new, better OKC economy!!

[ljbab728]

We do have alot of good news! But with the Cities website, the information on sales tax collection report information is not technically correct. The CM states that we are doing well, yet our sales tax collections are still approx. $19,000,000.00 short. The budget was adjusted in April and cuts were made and fund balances were used to fill the budget holes. How long is the city leadership going to continue to use the tactic that we are behind. Adjusted budget + fund balances + higher tax collections = A new, better OKC economy!!

As I mentioned previously, that will likely be the case until we can see that the current upturn is sustainable and not just a temporary aberration.

[Larry OKC]

Just out of curiosity, how much of the sales tax increase is probably due to all the crazy weather we have had lately? Take my household for instance - two new cars, new roof, paint on the house and gutters. Thats about $50,000 worth of taxable goods that I would have not purchased had the hail storm not destroyed everything that wasn't beneath ground. If the city receives some tax money off of those goods, then I wouldn't be surprised to see the revenues drop again after everyone has repaired everything.

Looks like you were correct...

http://www.newsok.com/oklahoma-city-...rticle/3488492

Oklahoma City officials attribute sales tax boost to spring storms (Oklahoman, 8/25/10)

Budget Director Craig Freeman said city officials have analyzed the numbers and found a possible explanation for the jump in revenue.

"What we've seen is a significant increase in several areas like building materials, restaurants, hotels and the purchase of auto parts," Freeman said. "Those all sound related to the spring storms."

Freeman said damage caused by tornadoes, flooding and hail likely led to insurance payouts that city businesses and residents are now using to rebuild. Those sales could have caused an increase in sales tax. He said the city also saw some increased revenue related to the construction of the Devon tower downtown.

Of course the ongoing Devon construction will help things.

[swilki]

I wish I wasn't correct