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Sales-tax revenue is way down
But Tulsa's spending reductions are offsetting the imbalance, Mayor Kathy Taylor says.
By BRIAN BARBER World Staff Writer
Published:
7/10/2009 2:26 AM
Last Modified: 7/10/2009 3:32 AM
Tulsa's sales-tax revenue for the first month of the new fiscal year plunged 10.7 percent compared with July 2008, but city officials said steep spending reductions are balancing the equation.
Mayor Kathy Taylor said the city, with a tightened budget belt, is prepared for the depressed sales tax revenue trend to continue for the near future.
"So while we are hoping for economic recovery soon, our budgeted revenues are very close to the actual revenues we are receiving," she said.
The city's monthly sales-tax check from the Oklahoma Tax Commission was for $16,498,273, compared with $18,481,969 for the same month last year. July's revenue was collected from May 16 to June 15.
During budget planning, finance officials revised revenue estimates downward. For July, the revenue projection was $16,507,887, only $9,614 more than was actually received.
Finance Director Mike Kier said the revenue dip is in line with what city officials have been bracing for.
But, it still hurts, he said, adding, "This is one of the most significant declines we've seen — at least in a long time."
The city has now posted negative revenue numbers for four months in a row, Kier said.
Taylor has said that if revenue drops significantly below budget expectations, an additional $2.9 million in budget cuts could be triggered.
That would mean abolishing 18 more city positions, as well as the scheduled police and fire academies, and drastically trimming service areas.
Taylor originally proposed a $578 million budget to the City Council, but it had to be trimmed to roughly $567 million because of an updated, bleak financial forecast for Tulsa.
The budget for the fiscal year that began July 1, which was approved by the council last month, eliminated 97 city jobs and imposed eight unpaid furlough days on all 4,000 employees, along with other cost-saving measures.
Tulsa sales Tax revenue
Compared to previous year
July 2009:
-10.7 percent
June 2009:
-7.5 percent
May 2009:
-8.1 percent
April 2009:
-5.2 percent
March 2009:
0.23 percent
Feb. 2009:
1.6 percent
Jan. 2009:
1.2 percent
Dec. 2008:
9.1 percent
Nov. 2008:
8.5 percent
Oct. 2008:
3.5 percent
Sept. 2008:
9.1 percent
Aug. 2008:
6.8 percent
July 2008:
10.7 percent
Brian Barber 581-8322
brian.barber@tulsaworld.com
By BRIAN BARBER World Staff Writer
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Some reader comments for this story were copied from "
Spending reductions balancing sales tax plunge, officials say
," which was published on 7/9/2009.
Report Comment
Popeye
, T-Town (7/9/2009 4:21:06 PM)
Here's a money saving idea:
Quit paying for, and applying, salt and exotic mixtures to the streets during snow or winter storms.
We've got a river full of sand already, use it! The terrible conditions of most of our streets can be traced to this one change in policy. The balance of damage is the result of over-sized loads.
I swear we could pay for additional police by putting them on the street, in traffic, and having them simply enforce the law. There's a Fort Knox full of money tooling around town at every hour of every day.
Report Comment
Few Clothes
, Austin, TX (7/9/2009 7:11:20 PM)
It's tue Popeye. When I lived there the salt would melt the ice, but a new crack or hole in the street occurred shortly after the weather cleared up. Salt, in moderation, is good and fast for clearing your porch and steps but it doesn't work well on roads as they are not concrete.
Report Comment
Eagle 4
, Tulsa (7/10/2009 8:15:56 AM)
If you add the overages for the preceeding 8 months you get a 50+. Then add the negative 4 months and you get -31.5. The question arises - If you have surpluses for eight months and negatives for four months shouldn't you still have a surplus for the year?
But of course it's all smoke and mirrors when it comes to the touted transparency in government. "Spend while you got it" seems to be the motto of Tulsa officials. It's like trying to feed a 900-pound gorilla - the more you feed it the bigger and hungrier it gets.
Report Comment
dTHREE
, TULSA (7/10/2009 8:17:53 AM)
11% decline already! I have stated before that our '09-10 city budget should have been no larger than 80% of last years budget since we have not yet seen how much revenue will drop!
Report Comment
thinblueline
, (7/10/2009 8:39:44 AM)
Darth Voter, if your referring to the smoke and mirrow presentation Martinson made last month as him being right on fiscal matters, you are dead wrong. Martinson just picked one group out. If you take the time to look and compare the budgets for the past several years, you will see police and fire received the same increases as most other groups. What Martinson failed to realize or maybe he did - is that for some reason the city has the IT section under Public Safety. So when he looked at the budgets, he failed to seperate or break down the increases. You go ahead and drink his cool aid, it just contains a lot of crap.....Spend a few minutes and go to the city's website and download the past budgets.
Report Comment
Mar
, Tulsa (7/10/2009 11:01:44 AM)
As for sales revenues, I worked in retail for quite a few years, at large department stores. The bad news when sales are down at various times of the year is normal. People can't be constantly shopping day in and day out, they do have other things going on in their lives.
January is usually a slow month because it is right after Christmas and most people splurged for Christmas. Feb. & March are usually slow because tax time is coming and people aren't sure if they will have to pay and how much.
April, May & June picks up some due to people purchasing spring/summer clothing and getting ready for vacations. July is usually slow because in August & September sales pick up due to getting the children ready for school.
October tends to be a slow month, but then of course November & December has high sales due to Christmas.
It is the regular ebb and flow of sales, regardless who is President or what the economy is doing.
I agree about using less salt on streets, do a mix of a little salt with lots of sand, would probably still work and would save the streets. This area has the worst of both types of weather, freaking red hot summers and frozen ice cold winters, this all puts wear and tear on the streets.
Martinson was just grandstanding, trying to make it look like he is important and doing something.
Report Comment
kyote
, (7/10/2009 12:36:43 PM)
Poor miss kitty less money to waste.
Report Comment
ajohnb
, Jenks (7/10/2009 2:15:45 PM)
Eagle4, the budget is adjusted monthly to account for the surplus.
You know, spend it before it goes away.
Report Comment
Thunder196
, Tulsa (7/10/2009 6:17:14 PM)
Bill Martinson our District 5 councilor. The great one who was thinking about running for mayor. The mayors office would have (here we go again) an open door to the public. We can't even get him to return phone calls. He has someone screen all the calls made to his council phone number. He does not answer e-mails, he does not answer letters. He does not address the safety concern of this district. For two years our neighborhood association has heard, "we plan on addressing your issues before the city council, if not this week, next week." If he is ignoring our district, what do you think would happen to us if he should become mayor. I sure hope he has changed his mind about running. As stated above all smoke and mirrors.
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