14.2 % drop in sales tax revenue

[Breadburner]

They should start by making sure everybody is paying what they owe.......

[TulsaSooner]

They should start by making sure everybody is paying what they owe.......

That is the job of the OTC...I don't think the City can really be involved in that as far as the enforcement, penalties, collection, etc.

[shadows]

The emphasis on Sales Tax (and the agenda for new revenue sources, police/fire district tax) is being inflated.

Sure, it's down from last year, same month. And, represents a shortfall in planning, or at least the criteria used to project.

But, Sales Tax collections represent less than 1/3rd, closer to 1/4 of the City's budgeted revenues.

Here's what I recommend.
Our new Mayor implements a 10-year, $650 million bond issue. That's right, a tax. Hopefully, one which replaces an expiring tax, like when Vision 2025 ends, or such, so that it becomes a no-change tax.

In these slow economic times, we could achieve very favorable Bond rates approaching 3%-4% and then deposit the $650M in a money-market account, drawing around 1.5%-2.5% interest. That makes the effective rate on the Bonds between 0.5% and 2.5%, slightly higher as the drawdown occurs.

These funds would be used to fund the current years' city budget, parsed out in prorated monthly installments to match last years' budget ratio. Meanwhile, all Sales Tax and other City revenue is deposited into an escrow account for the entire current year. Whatever amount is collected this year becomes next years' budget, with interest collected over the year deposited into a reserve fund. And, next years' budget is allocated directly in relation to whatever funds are received in the same month from last year.

There, no budget problems ever again. All departments would know a full year in advance exactly how much money they can spend a year from now. If they can't make necessary adjustments in that time, they get fired.

Instead of investing a bond issue in the MM the chance would be much better investing in the EURO at now around 2.5 dollars for each EURO.  Each time US print stimulus dollars the float ratio will change to where the ratio could reach up to 5 dollars per EURO giving us a 100% earnings which would allow the employment of thousands of more city employees.

Once there was a statute where a municipalities budget could not be increased more than 10% over the previous year regardless of the source. Any money left over from the previous year had to be used to reduce the current budget.

Course that did not apply to the state of Tulsa.  

[Composer]

November Sales Tax Reports from Oklahoma Tax Commission

Bixby:             $483,480      -23%
Jenks:             $272,205      -23%
Coweta:           $205,516      -17%
Broken Arrow:  $2,163,862    -14%
Tulsa:             $15,145,911   -14%
Sand Springs:   $678,844      -14%
Wagoner:         $181,579      -13%
Owasso:           $1,222,181   -10%
Claremore:       $751,830      -10%
Sapulpa:          $831,548       -9%
Collinsville:      $86,449         -7%
Glenpool:         $361,455       -2%

[shadows]

If you took the total taxable sales from the most completive towns it would only cover ½ the total shortage Tulsa needs.  There seems to be a dark cloud hanging over Tulsa's future unless there is some wage cutting.  They were so easy to increase but the decreasing may be quite painful.

[MDepr2007]

Maybe city officials shouldn't have given firefighters and policmen raises from extra tax left over from the previous fiscal year.

[shadows]

Maybe city officials shouldn't have given firefighters and policmen raises from extra tax left over from the previous fiscal year.

If the money was left over after the end of facial year of June 30th then the statutes were violated.  This is why it is being predicted that in the next 30 years there will be a change in control of this land.  With the increasing of  the melting of the ice caps the land area is decreasing.