A recent survey paid for by the Shawnee Economic Development Foundation indicates some support for an economic development tax in Shawnee. We agreee wholeheartedly on the need for more economic development funding, but the timing is not right.
According to the minutes of the January SEDF meeting, the city of Shawnee requested a Quality of Life survey.
Ardent proponents of this issue will disagree, arguing there is not necessarily a good time, but they believe the survey indicates sufficient support to pass a quarter cent tax.
If this issue appears on the city commission agenda, we believe the commission should wait. Although the survey showed support for an economic development tax, things have changed since it was taken. The survey was conducted before the foreclosure announcement on Shawnee Mall and the revelation by City Manager Brian McDougal about possibly having to close city hall one day a week to manage furloughs in the new fiscal year, which begins July 1. City employees already are saddled with a three percent pay cut, and a number of positions have been left open in order to balance the budget.
On Monday, the Pottawatomie County Public Safety Center Trust will consider three agenda items which are aimed at significantly reducing expenses. The items include closing Carter Hall Juvenile Detention Center on or before July 1; removing health insurance as part of the compensation package of the Safety Center effective July 1; and reducing the pay of all employees by five percent beginning July 1.
In addition to these proposed measures to reduce expenses, Jail Director Sid Stell reduced his staff by 15 percent since April.
We believe this creates an environment in which voters will be reluctant to approve a tax increase.
If city commissioners later do decide to put a 1/4 cent economic development tax on the ballot, along with another 1/4 cent for city improvements, they must be specific in order to get voter approval.
Looking back at what former Oklahoma City Mayor Kirk Humphreys told the Chamber planning retreat last fall, he said the MAPS program focused on improving its quality of life, in anticipation that economic development would follow. He specifically mentioned Devon Energy’s decision to stay there rather than move its headquarters to Houston, Texas, based on MAPS and the projects it has and is providing.
In each of the MAPS proposals put on the ballot, specific projects with estimated costs were identified for voters. That must happen here as well, once the local economy improves sufficiently enough to restore the confidence of voters.
There’s no doubt additional funding is needed to boost economic development. Focusing on quality of life issues, and building those first, however, will lead to more expansions of existing businesses and luring new industry to locate here.
At least three of the key questions on the survey, in which 350 registered city voters were called during March, point to the city considering a MAPS type program. The survey states a 1/4 cent sales tax would be used to create new jobs and recruit new industry.
The other 1/4 cent would enable the city to repair city buildings, build a sports complex, a splash pool for kids and a new public safety center.
The focus of the discussion at the Shawnee Economic Development Foundation meeting this past week was not on a MAPS type program, rather an economic development tax.
City officials should think and plan out exactly what it is they want to do with the more than estimated $2 million in revenue a 1/2 cent sales tax will generate annually. That includes specific city improvements and economic development projects, along with expected costs. That is the only way city voters might go along with increasing taxes.
Look for the SEDF board during its meeting next month to consider a resolution urging city commissioners to put the tax question on the August primary runoff ballot.
Before that meeting, the city commission will meet at least twice. More than likely this survey will be discussed at either one or both of those meetings.
It makes more sense to hold up a while, give the economy more time to recover, plan the projects and sell it to voters.
It also provides an opportunity for a couple of success stories to be under way, the Kickapoo Street reconstruction and the 30-inch, 10-mile raw water line.
Some of those who might oppose any increase in the sales tax rate might see this as the city looking for a bailout during a time of declining city sales tax revenues. McDougal pointed out recently the starting fund balance for this fiscal year was more than $1.2 million.
He predicted within the last two weeks that fund balance will finish the current fiscal year around $1 million less.
The local economy has suffered some setbacks over the past year and a half. On the state level, lawmakers are trying to balance a budget for the new fiscal year, which will have $1.2 billion revenue and they have the Rainy Day Funds and Stimulus money to help shore up the shortfall.
Taking a little more time with a lot of specifics is what we suggest.
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A recent survey paid for by the Shawnee Economic Development Foundation indicates some support for an economic development tax in Shawnee. We agreee wholeheartedly on the need for more economic development funding, but the timing is not right.
According to the minutes of the January SEDF meeting, the city of Shawnee requested a Quality of Life survey.
Ardent proponents of this issue will disagree, arguing there is not necessarily a good time, but they believe the survey indicates sufficient support to pass a quarter cent tax.
If this issue appears on the city commission agenda, we believe the commission should wait. Although the survey showed support for an economic development tax, things have changed since it was taken. The survey was conducted before the foreclosure announcement on Shawnee Mall and the revelation by City Manager Brian McDougal about possibly having to close city hall one day a week to manage furloughs in the new fiscal year, which begins July 1. City employees already are saddled with a three percent pay cut, and a number of positions have been left open in order to balance the budget.
On Monday, the Pottawatomie County Public Safety Center Trust will consider three agenda items which are aimed at significantly reducing expenses. The items include closing Carter Hall Juvenile Detention Center on or before July 1; removing health insurance as part of the compensation package of the Safety Center effective July 1; and reducing the pay of all employees by five percent beginning July 1.
In addition to these proposed measures to reduce expenses, Jail Director Sid Stell reduced his staff by 15 percent since April.
We believe this creates an environment in which voters will be reluctant to approve a tax increase.
If city commissioners later do decide to put a 1/4 cent economic development tax on the ballot, along with another 1/4 cent for city improvements, they must be specific in order to get voter approval.
Looking back at what former Oklahoma City Mayor Kirk Humphreys told the Chamber planning retreat last fall, he said the MAPS program focused on improving its quality of life, in anticipation that economic development would follow. He specifically mentioned Devon Energy’s decision to stay there rather than move its headquarters to Houston, Texas, based on MAPS and the projects it has and is providing.
In each of the MAPS proposals put on the ballot, specific projects with estimated costs were identified for voters. That must happen here as well, once the local economy improves sufficiently enough to restore the confidence of voters.
There’s no doubt additional funding is needed to boost economic development. Focusing on quality of life issues, and building those first, however, will lead to more expansions of existing businesses and luring new industry to locate here.
At least three of the key questions on the survey, in which 350 registered city voters were called during March, point to the city considering a MAPS type program. The survey states a 1/4 cent sales tax would be used to create new jobs and recruit new industry.
The other 1/4 cent would enable the city to repair city buildings, build a sports complex, a splash pool for kids and a new public safety center.
The focus of the discussion at the Shawnee Economic Development Foundation meeting this past week was not on a MAPS type program, rather an economic development tax.
City officials should think and plan out exactly what it is they want to do with the more than estimated $2 million in revenue a 1/2 cent sales tax will generate annually. That includes specific city improvements and economic development projects, along with expected costs. That is the only way city voters might go along with increasing taxes.
Look for the SEDF board during its meeting next month to consider a resolution urging city commissioners to put the tax question on the August primary runoff ballot.
Before that meeting, the city commission will meet at least twice. More than likely this survey will be discussed at either one or both of those meetings.
It makes more sense to hold up a while, give the economy more time to recover, plan the projects and sell it to voters.
It also provides an opportunity for a couple of success stories to be under way, the Kickapoo Street reconstruction and the 30-inch, 10-mile raw water line.
Some of those who might oppose any increase in the sales tax rate might see this as the city looking for a bailout during a time of declining city sales tax revenues. McDougal pointed out recently the starting fund balance for this fiscal year was more than $1.2 million.
He predicted within the last two weeks that fund balance will finish the current fiscal year around $1 million less.
The local economy has suffered some setbacks over the past year and a half. On the state level, lawmakers are trying to balance a budget for the new fiscal year, which will have $1.2 billion revenue and they have the Rainy Day Funds and Stimulus money to help shore up the shortfall.
Taking a little more time with a lot of specifics is what we suggest.
