As the owner of a US manufacturing company, I'm facing a number of challenges as the US economy wades through the mud of the current economic recession. Fortunately, we've been able to avoid layoffs and have a great group of workers who are doing their part until things get a little better.
During my trip to Asia last week, I read some interesting stats about the China economy. While exports were down 25% in the 3rd quarter, domestic retail sales were up over 30%. This resulted in a 8% annualized growth rate for the Chinese economy in Q3. How can a country lose 25% of its export business and still grow at 8%? I believe it has to do, in part, with the mere fact that Chinese consumers are buying more Chinese-made products. They are supporting their own domestic production and keeping their money in their country.
As an economist by degree, I've studied efficient markets, Supply and Demand, price elasticities, and on and on. I'm not a big supporter of tariffs or trade barriers. But in today's economy, there are a number of things working against the US manufacturer. One big issue is the US consumer's (and ultimately, the US retailer's ) push for lower-cost goods. Based on things such as increasing gov't regulations on emissions, pending health care reforms, and increasing corporate taxes, US manufacturers are continuing to move production to countries outside of the US. And we wonder why unemployment is increasing? Come on! There are only so many banks, restaurants and wind farms we can build and work at...then what? When's the last time you made a conscience effort to pay a little more to get better-quality, US-made goods? Well, you probably didn't get the chance because retailers are deciding for you what works best. They need higher profits (that includes lowering costs) because we all complain if our stock portfolios or 401-K's lose money. But by purchasing lower-cost goods from Asia, that means there is less demand for goods made here. Throw in $3/day labor in Asia and lower manufacturing costs (more labor mean less high-cost equipment) and overhead costs. I'm concerned that this vicious cycle is only going to continue.
Now I'm not trying to rewrite the laws of economics, but I want you to think about one little part - if you quit buying the goods we make here, what are people here going to do for a job? You can only reinvent yourself so far. We all can't be the next Bill Gates and come up with the next Windows. But even companies that do continue to push the limits of technology to make new things American's want go to Asia for low cost production (check your Ipod label if you don't believe me.) Can it continue without us continuing to suffer with a weak economy? I don't think so.
October 29, 2009
Sales Tax Shortfalls Force State Cuts
In a press conference Wednesday, Gov. Nixon announced an additional $204 million in cuts in the state's budget as sales tax revenues continue to drop. Those cuts include the elimination of 700 jobs and cuts in a number of programs ranging from bussing aid to public schools to Medicaid to mental health programs.
When you are facing declining revenues over a prolonged period, these types of cuts are part of keeping budgets balanced as required by the State Constitution.
Many cities and counties across the state are feeling similar pains and with recovery still months away, things are very likely to get worse before they get better.
When you are facing declining revenues over a prolonged period, these types of cuts are part of keeping budgets balanced as required by the State Constitution.
Many cities and counties across the state are feeling similar pains and with recovery still months away, things are very likely to get worse before they get better.
October 28, 2009
NDN and I Agree on TDD
It's nice to have support every once in a while. After being gone for a few days overseas, I've been catching up on reading the local papers. It appears that the Neosho Daily and I agree on the recent TDD vote by the Neosho R-5 Board. The NDN's comments almost mirror my comments I made before the board a few weeks ago (I had a post on that as well.)
Thanks for the validation of my thoughts, NDN. It's a great feeling.
You may read the NDN comments here.
Thanks for the validation of my thoughts, NDN. It's a great feeling.
You may read the NDN comments here.
Sales Tax Losses Are Still Impacting Us
Today's Joplin Globe has a story about the impact of declining sales taxes on local governments. Being from Neosho, most of us are already aware of the impact we're seeing: job cuts, pay cuts and service reductions to name a few.
Based on the article, it appears Neosho is suffering more that some. Joplin so far has been spared any job or service cuts for its citizens.
You can read the article here.
Based on the article, it appears Neosho is suffering more that some. Joplin so far has been spared any job or service cuts for its citizens.
You can read the article here.
October 27, 2009
Chinese Owl's Taste the Same
Before I forget, I made a stop at the local Hooters restaurant in Shanghai this past weekend. From the pine walls to the orange shorts to the food on the menu, this restaurant could have just as easily been in Springfield or Fayetteville. The chicken wings had the identical flavor of those I've grown to love here in the US. Another example of American influence on the Chinese culture and how we're trying to capture some of that market with American ideas.
As a point of reference, I also passed 4 McDonald's, 2 KFC's, and 1 Subway along the route.
As a point of reference, I also passed 4 McDonald's, 2 KFC's, and 1 Subway along the route.
Webb City Approves Sewer Rate Hike
As previously discussed on this blog during the proposal phase, Webb City has now approved increases in their sewer rates to help cover costs associated with upgrades being required by the MoDOR and the EPA. This approved increase will raise the the monthly household sewer bill from an average of $20.60 to more than $27, according to City Administrator Steve Garrett quote in today's Joplin Globe. Neosho recently saw similar increases in their sewer rates as part of voter-approved sewer improvements passed in August of 2008.
According to a Neosho Daily News article from April, Neosho's users would be charged a minimum of $6.23 a month plus a unit charge of $3.32 per 1,000 gallons of water discharged. Under another ordinance approved on first reading Tuesday, rates for 3,000 gallons will increase from $10.19 to $16.20, while rates for 5,000 gallons will go up from $13.33 to $22.84.
The full article can be found here.
According to a Neosho Daily News article from April, Neosho's users would be charged a minimum of $6.23 a month plus a unit charge of $3.32 per 1,000 gallons of water discharged. Under another ordinance approved on first reading Tuesday, rates for 3,000 gallons will increase from $10.19 to $16.20, while rates for 5,000 gallons will go up from $13.33 to $22.84.
The full article can be found here.
Rockaway Beach Receives Grant for Water Improvements
Below is an article from today's Springfield Business Journal. Rockaway beach is located about 10 miles NE of Branson and has a population just north of 2600. Their challenges are similar to those being faced by Neosho with regards to water distribution.
Rockaway Beach will receive $500,000 from the Missouri Department of Economic Development for a water-systems improvement project.
The city's water-distribution system is not meeting the existing or projected needs of the town residents, is exhibiting signs of deterioration, and also falls below state guidelines for fire flow and residential pressure, according to a DED news release.
The two-phase improvement project will replace aged pipes and construct additional lines where needed.
The money comes from the DED's Community Development Block Grant program, which provides grants and loans to cities with population of less than 50,000 and counties with fewer than 200,000 people.
The town of Newburg, near Rolla, also received $500,000 from the CDBG program for water system infrastructure upgrades, including water-meter replacement, ground storage remediation and water-main replacement.
Springfield Eyes Tax Oversight Committee
Following the lead of Joplin, the Springfield city council is considering appointing a committee to provide oversight of the various taxes being collected by the city. Joplin's committee is "designed to oversee the distribution of some of Joplin's sales tax dollars" according to an article in today's Springfield Business Journal.
Personally, I like the idea. I've spoken to Doug Doll, chairman of Joplin's Parks and Storm Water, Capital Improvements and Public Safety Sales Tax Oversight Committee, a few times about his role and the function of the committee. He's been very pleased with the work being done there. If nothing else, it helps provide the public with an added layer of confidence related to the collection and spending of taxpayer funds - something I view as critical for any governing body.
While the city of Neosho does have a committee for Economic Development, Joplin has gone further by including most, if not all, of their sales tax collections along with structuring the committee in a very non-partisan and independent manner.
It will be interesting to see how Springfield votes, but I feel confident they will build on Joplin's success story. I hope Neosho follows close behind.
Personally, I like the idea. I've spoken to Doug Doll, chairman of Joplin's Parks and Storm Water, Capital Improvements and Public Safety Sales Tax Oversight Committee, a few times about his role and the function of the committee. He's been very pleased with the work being done there. If nothing else, it helps provide the public with an added layer of confidence related to the collection and spending of taxpayer funds - something I view as critical for any governing body.
While the city of Neosho does have a committee for Economic Development, Joplin has gone further by including most, if not all, of their sales tax collections along with structuring the committee in a very non-partisan and independent manner.
It will be interesting to see how Springfield votes, but I feel confident they will build on Joplin's success story. I hope Neosho follows close behind.
October 24, 2009
Blogging in China ain't the easiest thing to do
Despite China being more open than ever before, the government still enjoys a firm hold on monitoring and filtering information that comes into the country via the internet. There are may US websites that cannot be accessed from China, this site included. Luckily, technology allows a workaround.
In order for me to post to my blog while in China, I have to work through a computer in the US. In other words, I connect my laptop in China thru the internet to a computer in my home. I then work on my home computer as if I were setting there.
It's not the fastest and poor connections make it even worse, but it allows me to do what I need to do.
In order for me to post to my blog while in China, I have to work through a computer in the US. In other words, I connect my laptop in China thru the internet to a computer in my home. I then work on my home computer as if I were setting there.
It's not the fastest and poor connections make it even worse, but it allows me to do what I need to do.
October 23, 2009
30 Minutes of Americana - Love those Golden Arches
I took a break today from the Chinese routine and stopped by the local Yuyao McDonald's restaurant. For 1/2 an hour, it was like being back in Neosho. I enjoyed a BigMac, fries, and a coke, and it was the same flavor as you would get on Neosho Blvd. Even the equipment and layout was the same.
Whether you like McDonalds or not, Ray Kroc's creation has done an excellent job of making sure not matter where you go in the world, if you eat at Mickey D's, you'll know exactly what to expect.
Whether you like McDonalds or not, Ray Kroc's creation has done an excellent job of making sure not matter where you go in the world, if you eat at Mickey D's, you'll know exactly what to expect.
October 21, 2009
School Board Takes the 'Free' Route on TDD
Kudos to the Neosho R-5 board on their decision NOT to spend money on the TDD being proposed for the area around the Neosho Middle School. I'm also glad the TDD group (whoever they are) came back with a no-cost option. It was the right thing to do.
Honestly, they (the TDD organizers) didn't have a real option. They needed the school's support of the project as much or more than they needed the money. MoDOT wouldn't consider traffic signals on Hwy 60 for the Hale McGinty extension without a safety need being in the mix. The school's traffic flow provided that need.
All concerns aside, there will truly be a safety improvement for our kids by having that controlled access.
So while things move forward, I still have my concerns with the whole design and makeup of the TDD. But I applaud all involved who got this part of the issue resolved.
Honestly, they (the TDD organizers) didn't have a real option. They needed the school's support of the project as much or more than they needed the money. MoDOT wouldn't consider traffic signals on Hwy 60 for the Hale McGinty extension without a safety need being in the mix. The school's traffic flow provided that need.
All concerns aside, there will truly be a safety improvement for our kids by having that controlled access.
So while things move forward, I still have my concerns with the whole design and makeup of the TDD. But I applaud all involved who got this part of the issue resolved.
Nighttime TV in China
As my body does its best to work thru the time-zone changes, I've had the privilege of watching a little early-AM television in China. CCTV (China Central Television) dominates. And while I haven’t seen a Chinese Billy Mays, I’ve come close.
The first infomercial I saw was for a hair tonic for bald men. Even though I don’t understand much Chinese, the marketing folks did a good job of conveying the message. This particular tonic shows one hair turning into three. I’ll have to say it looks very promising. After all, you know the pictures are always real and never doctored.
I’ve also watched two shop-at-home channels. It appears the Chinese like watches and lotions. That’s all I’ve seen on those channels. Same cheap-looking mirror base that spins. Same glistening sparkle from the metal frame. HSN – watch out!
The first infomercial I saw was for a hair tonic for bald men. Even though I don’t understand much Chinese, the marketing folks did a good job of conveying the message. This particular tonic shows one hair turning into three. I’ll have to say it looks very promising. After all, you know the pictures are always real and never doctored.
I’ve also watched two shop-at-home channels. It appears the Chinese like watches and lotions. That’s all I’ve seen on those channels. Same cheap-looking mirror base that spins. Same glistening sparkle from the metal frame. HSN – watch out!
October 20, 2009
Is Chinese Health Care the Right Model?
As I've been working in Asia this week, I've made it a point to inquire into a number of things including health care. As a communist country, I would have assumed that all of the Chinese people were covered by government health care. Surprisingly, there aren't.
Chinese people DO have catastrophic protection in the case of an accident or major illness, but for the periodic cold or cough, the Chinese pay just like us. The government knows that it cannot financially provide all of its citizens with a full coverage option. It also forces the people to take part in being responsible for their health and prevents them from dropping by their local ER every time they feel sick.
Quite a novel approach for such a government-centered country.
Chinese people DO have catastrophic protection in the case of an accident or major illness, but for the periodic cold or cough, the Chinese pay just like us. The government knows that it cannot financially provide all of its citizens with a full coverage option. It also forces the people to take part in being responsible for their health and prevents them from dropping by their local ER every time they feel sick.
Quite a novel approach for such a government-centered country.
October 19, 2009
It's the whole AM/PM thing
Well, after a grueling flight, one hour in immigration, and a four hour car ride, things are finally getting back to normal. That is except for my internal clock. The time difference from Neosho to Ningbo is 13 hours. Basically, it is an am/pm flop for your internal clock. I slept some on the plane, but being in coach for 14 hours doesn't lend itself to quality sleep time. I also slept in the car, but periodic honks and rapid lane changes mess that up too.
After a quick dinner in hotel restaurant, I did have a good 4-5 hours of sleep. Unfortunately, my body is now telling me that sleeping at 4pm in the afternoon just isn't going to happen.
The good news is that by next week, I will be completely on China time, just in time to return back to the US. Oh well, it's something you just have to deal with.
After a quick dinner in hotel restaurant, I did have a good 4-5 hours of sleep. Unfortunately, my body is now telling me that sleeping at 4pm in the afternoon just isn't going to happen.
The good news is that by next week, I will be completely on China time, just in time to return back to the US. Oh well, it's something you just have to deal with.
October 18, 2009
Joplin Council Debates Running Trails and Sales Tax Renewal - Lessons we can learn from?
As does Neosho, Joplin currently has on the books a sales tax dedicated for parks and stormwater projects. Their 1/4 cent tax, passed in 2002, is set to sunset in 2012 if not renewed by voters. The Joplin Globe is reporting this morning that the Joplin City Council has started laying ground work to put that sales tax back on the ballot.
On the surface, it seems fairly routine. Unfortunately, some folks in Joplin feel that commitments and promises made to voters during the 2002 lead-up to the election have gone, at least partially, unfilled or undelivered. Now one council member's attempts to possibly scrap some of those promised projects in lieu of new priorities has made some cry foul.
The Neosho council had similar questions come up during the budget reviews meetings this past September. Some in the public were questioning the city's cut backs in park/rec budget and the apparent 'taking' of funds generated from that tax for use elsewhere in the city. While not exactly the same as Joplin, it is just another example of why trust issues exist in government. While the city is completely in the right in how the funds are being applied, simply complying with the letter of the law doesn't go far enough for me. I understand that things happen and sometimes priorities change, but don't you at least owe the voters an explanation as to the 'whys' and 'how comes'? I think so.
If we've learned anything over the past few months (quiet zones and 405 codes to name a couple), explaining and listening need to work hand it hand. And while we won't always agree, at least both sides understand each other's position. If we all don't leave the table feeling somewhat good about how things are going, it might be a sign that something is amiss.
As one of my close friends describes it, "We're still living in Mayberry. Let's talk about these things." While I may disagree in part, I think he's right in that Neosho still has a small town feel and may here still prefer a small town way of doing things.
On the surface, it seems fairly routine. Unfortunately, some folks in Joplin feel that commitments and promises made to voters during the 2002 lead-up to the election have gone, at least partially, unfilled or undelivered. Now one council member's attempts to possibly scrap some of those promised projects in lieu of new priorities has made some cry foul.
The Neosho council had similar questions come up during the budget reviews meetings this past September. Some in the public were questioning the city's cut backs in park/rec budget and the apparent 'taking' of funds generated from that tax for use elsewhere in the city. While not exactly the same as Joplin, it is just another example of why trust issues exist in government. While the city is completely in the right in how the funds are being applied, simply complying with the letter of the law doesn't go far enough for me. I understand that things happen and sometimes priorities change, but don't you at least owe the voters an explanation as to the 'whys' and 'how comes'? I think so.
If we've learned anything over the past few months (quiet zones and 405 codes to name a couple), explaining and listening need to work hand it hand. And while we won't always agree, at least both sides understand each other's position. If we all don't leave the table feeling somewhat good about how things are going, it might be a sign that something is amiss.
As one of my close friends describes it, "We're still living in Mayberry. Let's talk about these things." While I may disagree in part, I think he's right in that Neosho still has a small town feel and may here still prefer a small town way of doing things.
Mat Clark Joins the race for 130th
I see this morning that Mat Clark has joined the race for the seat being vacated by term-limited State Representative Kevin Wilson. According to the Neosho Daily, Mr. Clark will be running on the Republican ticket. Clark will be the third local candidate to announce such intentions. Local Realtor and retired teacher Lynn Otey annouced earlier this year followed by farmer Bill Reiboldt this summer.
Since the filing for this seat doesn't even start for another four months (Feb 23rd I believe), there will plenty of time for others to still get on the ballot and ultimately square of in the August 2010 primary. As of today, I have not heard of anyone running on the opposing party ticket.
It should be an interesting race.
Since the filing for this seat doesn't even start for another four months (Feb 23rd I believe), there will plenty of time for others to still get on the ballot and ultimately square of in the August 2010 primary. As of today, I have not heard of anyone running on the opposing party ticket.
It should be an interesting race.
Congrats to the Neosho Daily News
Congrats to my friend 'Rickie' Rogers and his staff at the Neosho Daily News. If you're not aware, the Daily recently received a number of awards from the Missouri Press Association Better Newspaper Contest. Kudos as well to John Ford for his 2nd place showing for Best Editorial along with Wes Franklin for his 2nd place showing for Best Story About History. Nice to see the boss got 3rd place for Best Photo Package. (Haven't heard yet if it was for the aerials I helped with back in August.)
I have to say that I've been very please with the reporting I've seen during my tenure on the school board and the city council. For the most part, they've always presented the news in a fair, balanced and informed position. It's nice to have that kind of reporting daily in a smaller town like Neosho.
Keep up the great work, Superman. The awards are well deserved by all.
I have to say that I've been very please with the reporting I've seen during my tenure on the school board and the city council. For the most part, they've always presented the news in a fair, balanced and informed position. It's nice to have that kind of reporting daily in a smaller town like Neosho.
Keep up the great work, Superman. The awards are well deserved by all.
Foggy and Frosty Start - Oh the memories
Well, it is a foggy and frosty start this morning. It seems a little early for such a heavy frost. The airport is busy and the unique smell of airplanes, coffee, and glycol (deicing fluid) fills the air. My uncle (who is with me) and I used to work for the airline industry during and after college. We were both commenting how much we missed it. I guess it just gets in your blood.
Boarding starts in a few minutes. I'm going to finish my coffee and read the Daily News before I leave Bentonville. Next stop - Chicago O'Hare.
Boarding starts in a few minutes. I'm going to finish my coffee and read the Daily News before I leave Bentonville. Next stop - Chicago O'Hare.
October 17, 2009
Holy Hot Wings Batman
In case you didn't know, I have a passion for good chicken wings. Today, in preparation for my China visit, I made a trip to Hackett's in downtown Joplin for my last dose of American food for a week. As I write this, there are 30 wings in three flavors being meticulously prepared in the kitchen. To prevent getting sauce in my Blackberry, I decided to post my comments before the honey and barbeque delight arrives. But trust that they will not go to waste and I will enjoy the nourishment!
Saturday Morning Alarm Clock
As much as I liked school, hearing the alarm go off at 7am was never something I welcomed. But come Saturday, I could be up at 7am watching Superfiends and Bugs Bunny with no problem. I've determined that my daughter has inherited my Saturday morning alarm clock. Unfortunately, my genes have mutated and my Saturday morning clock doesn't work anymore. Despite my dislike for early mornings, there is something special about a knock on the noggin' and a 'hey dad-wake up', no matter what time it is.
October 15, 2009
Tailgate Party at MSSU
Well, about 36 hours to go before I have my 3rd tailgate party this season at Saturday's home MSSU football game. As a Lionbacker (and former graduate of MSSU), I have a great time grillin' out and enjoying the day with friends and family at a MSSU game. If you're there on Saturday, look me up. I always have extra brats and burgers for the occasional guest. Come on by if you're there. It's a great time!
Lunch with the Speaker of the House
I always enjoy meeting people who are high up in politics. Today was no exception. I was one of a dozen or so local business owners who had a roundtable luncheon with our Missouri Speaker of the House Ron Richard. Now that may not excite some of you, but Speaker Richard is a powerful man in Missouri politics. As someone who follows politics, even I know you don't wind up in that spot without being good at what you do and knowing how to make things happen.
I have to say that Speaker Richard was a very direct and upfront kind of guy. He didn't sugar coat any answers and cut right to the bone by telling you exactly how he felt on the issues. That is rare in politics today and I applaud him for his style.
Thanks, Mr. Speaker, for taking the time to visit Neosho and thanks for doing your part to make Missouri the best it can be.
I have to say that Speaker Richard was a very direct and upfront kind of guy. He didn't sugar coat any answers and cut right to the bone by telling you exactly how he felt on the issues. That is rare in politics today and I applaud him for his style.
Thanks, Mr. Speaker, for taking the time to visit Neosho and thanks for doing your part to make Missouri the best it can be.
Bank Robbers Stay Away...or Else!
Great job today by the Neosho PD. Press release is below.
City of Neosho
City Hall, 203 E. Main St., Neosho, Mo., 64850; 417-451-8050; www.neoshomo.org
FOR IMMEDIATE RELEASE
OCTOBER 15, 2009
Contact: Doreen Finnie, 417-451-8050
NEOSHO POLICE CAPTURE BANK FLEEING ROBBER
Neosho Police received a call of a robbery at the US Bank on Neosho Boulevard today at 11:49 am. The suspect had taken an undetermined amount of cash from the bank employees at gun point. The suspect fled in a white Chevrolet Lumina vehicle with unknown license.
Officer Johnny Humphries responding to the call was able to locate the vehicle in the area of 60 and 71 Highway south of the bank location. Officers responded to the area to assist where the suspect was located in a parking space. As officers approached, the suspect produced a handgun. Corporal Bobby Brown, Officer Brandon Beshears, and Officer Johnny Humphries, utilizing good judgment and police procedures, were able to disarm the suspect with the use of a taser.
The suspect was taken into custody and transported to Newton County Jail. It was eight minutes from the time of the robbery to the time of arrest.
Charges are pending by the Newton County Prosecutor’s officer.
Missouri State Highway Patrol troopers and Newton County Sheriff’s Deputies assisted with the search for and arrest of the suspect. In addition the FBI has joined the investigation with two agents from the Joplin office. There is evidence to indicate the suspect may have been involved in other robberies in the area.
END
City of Neosho
City Hall, 203 E. Main St., Neosho, Mo., 64850; 417-451-8050; www.neoshomo.org
FOR IMMEDIATE RELEASE
OCTOBER 15, 2009
Contact: Doreen Finnie, 417-451-8050
NEOSHO POLICE CAPTURE BANK FLEEING ROBBER
Neosho Police received a call of a robbery at the US Bank on Neosho Boulevard today at 11:49 am. The suspect had taken an undetermined amount of cash from the bank employees at gun point. The suspect fled in a white Chevrolet Lumina vehicle with unknown license.
Officer Johnny Humphries responding to the call was able to locate the vehicle in the area of 60 and 71 Highway south of the bank location. Officers responded to the area to assist where the suspect was located in a parking space. As officers approached, the suspect produced a handgun. Corporal Bobby Brown, Officer Brandon Beshears, and Officer Johnny Humphries, utilizing good judgment and police procedures, were able to disarm the suspect with the use of a taser.
The suspect was taken into custody and transported to Newton County Jail. It was eight minutes from the time of the robbery to the time of arrest.
Charges are pending by the Newton County Prosecutor’s officer.
Missouri State Highway Patrol troopers and Newton County Sheriff’s Deputies assisted with the search for and arrest of the suspect. In addition the FBI has joined the investigation with two agents from the Joplin office. There is evidence to indicate the suspect may have been involved in other robberies in the area.
END
October 14, 2009
McDonald County needs some financial controls
State auditors apparently didn't like what they saw in their recent audit of the McDonald County government. Regardless of who you elect or what you think of them, basic oversight and responsibility with taxpayer funds is a must. In this report, it appears the issues extend across departments. Issues cited include the sheriff's office, the emergency 911 board, commissioners (by means of not using proper procurement processes as well as issues with meetings and recorded minutes), and the collector's office.
Below is the Neosho Daily article.
Below is the Neosho Daily article.
A state audit of accounting practices in McDonald County government found a number of discrepancies.
The report was posted Tuesday on the state auditor’s Web site, www.auditor.mo.gov. In her report, Auditor Susan Montee noted a number of findings by her team, including:
- The former sheriff used accountable fees of nearly $13,000 to pay himself for mileage, and documentation of actual miles was not maintained;
- Other concerns in the sheriff’s department, including a separate bank account for the DARE program, maintained by a deputy and an inability to demonstrate how compensatory time and leave earned and taken was calculate or how the activity reported on timesheets related to the balances reported;
- The emergency 911 board didn’t follow the advice of legal counsel when it entered into loans from a local bank totaling $1.5 million. The loans were used to finance a new 911 center and to buy equipment;
- Improvement is needed in various accounting controls and procedures in the prosecuting attorney’s office. Montee said there was no assurance all receipts were deposited and accounted for properly;
- The county didn’t use a competitive procurement process when making purchases or obtaining professional services. Montee said the county bought real estate without obtaining an independent appraisal of the property, estimating the costs to demolish and dispose of a house on the property, or require an inspection of the property to be performed as part of the real estate contract;
- Improvement is needed in the county’s procedures and documentation related to both closed and regular meeting minutes. Additionally, county business was sometimes conducted without a quorum of the commissioners;
- Assessment data in the property tax system isn’t adequately restricted, and the county clerk and commissioners are not performing sufficient reviews of property tax system information and the collector’s monthly and annual reports, and;
- The county collector’s annual settlements were not accurate or complete, and accounting duties were not adequately segregated.
A complete audit report can be found at the auditor’s Web site, www.auditor.mo.gov.
To Asia with Mixed Emotions
This weekend, I'll be off to Asia for a week of factory visits and work - growing pains I guess. As we continue to pickup new business, some of that business is coming from locations around Shanghai. While I love the food and the people, I'll be missing my first city council meeting since joining the council in April. That's a bummer. This was already a short month because of MML conflicts. Oh well, life will go on.
Lay that on top of missing my second grader for a whole week. That is some pressure! Thank goodness for Skype and webcams!
Lay that on top of missing my second grader for a whole week. That is some pressure! Thank goodness for Skype and webcams!
October 13, 2009
TDD Spells Trouble for Neosho R-5
For over a year now, officials from the City of Neosho and Economic Development have been working on ways to improve infrastructure in Neosho with the use of a Transportation Development District or TDD. Let me digress a moment and educate you on how a TDD works. Basically, a TDD is a taxing entity that has the authority to issue debt instruments for the purpose of improving infrastructure in a predetermined area. That infrastructure would typically be in the form of roads, but that is not the sole option. The improvements serve as collateral for the debt and the TDD imposes a sales tax (in this case 1%) on retail sales inside the TDD. That 1% is how the TDD services the debt incurred to build the infrastructure.
Now, back to the reason for concern. I first found out about the idea of a TDD in Feb or March of 2008 while serving on the Neosho R-5 School board. It was at that time that Gib Garrow and Jan Blase made a presentation to the Neosho R-5 during a special lunchtime meeting. The presentation was the first of many attempts to obtain a commitment from the Neosho R-5 school district for $850,000 over 15 years. In return, the TDD would include improvements to Kodiak and Hale McGinty. Those improvements would help the traffic around the Middle School and Carver Elementary. It was commented during the meeting that other large businesses in town were in support of the TDD (including Wal-Mart) and would be participating.
Here's the problem: TDD's are funded by sales tax. Businesses like Wal-Mart are not 'paying' a penny for any of the improvements they will also benefit from. They are simply charging people like you and me a little more for product we put into our shopping cart. The 1% extra we pay goes back to the TDD as a funding mechanism.
Since schools don't collect sales tax, the $850,000 was a type of 'pay to play' amount that our school district would have to divert from the general fund. That means $850,000 less money to buy books, pay teachers, improve classrooms, or anything else the school would want to spend it on to directly benefit the educational experience of our children.
As a tax payer, I'm opposed to our district using any of the funds to do things that are not consistent with their mission. I've made the comment that "cities don't build schools and schools don't build fire stations. If schools start building public roads, where does it stop?"
Bottom line, I don't support the use of school funds to build public roads, not matter how bad the traffic is. Use the sales tax being collected by Lowe's, Wal-Mart, etc. to fund your TDD. If the school wants to build roads, include it in a bond issue and let the district's voters decide.
As a side note, I made a Sunshine request for documents related to the TDD and found a fund summary showing that the TDD would have $2,000,000 in excess funds over the 15 year period. That $2 million could be used for other projects as the TDD deamed necessary. In the Neosho Daily News tonight, a 'consultant' named Darrel Gross commented that "...the firm has (recently) trimmed $2 million off the total TDD proposal, working with the Missouri Department of Transportation to whittle project costs down." I suspect that trimming occurred because no one could justify asking a school for money while predicting a $2 million surplus.
Related NDN Article
Now, back to the reason for concern. I first found out about the idea of a TDD in Feb or March of 2008 while serving on the Neosho R-5 School board. It was at that time that Gib Garrow and Jan Blase made a presentation to the Neosho R-5 during a special lunchtime meeting. The presentation was the first of many attempts to obtain a commitment from the Neosho R-5 school district for $850,000 over 15 years. In return, the TDD would include improvements to Kodiak and Hale McGinty. Those improvements would help the traffic around the Middle School and Carver Elementary. It was commented during the meeting that other large businesses in town were in support of the TDD (including Wal-Mart) and would be participating.
Here's the problem: TDD's are funded by sales tax. Businesses like Wal-Mart are not 'paying' a penny for any of the improvements they will also benefit from. They are simply charging people like you and me a little more for product we put into our shopping cart. The 1% extra we pay goes back to the TDD as a funding mechanism.
Since schools don't collect sales tax, the $850,000 was a type of 'pay to play' amount that our school district would have to divert from the general fund. That means $850,000 less money to buy books, pay teachers, improve classrooms, or anything else the school would want to spend it on to directly benefit the educational experience of our children.
As a tax payer, I'm opposed to our district using any of the funds to do things that are not consistent with their mission. I've made the comment that "cities don't build schools and schools don't build fire stations. If schools start building public roads, where does it stop?"
Bottom line, I don't support the use of school funds to build public roads, not matter how bad the traffic is. Use the sales tax being collected by Lowe's, Wal-Mart, etc. to fund your TDD. If the school wants to build roads, include it in a bond issue and let the district's voters decide.
As a side note, I made a Sunshine request for documents related to the TDD and found a fund summary showing that the TDD would have $2,000,000 in excess funds over the 15 year period. That $2 million could be used for other projects as the TDD deamed necessary. In the Neosho Daily News tonight, a 'consultant' named Darrel Gross commented that "...the firm has (recently) trimmed $2 million off the total TDD proposal, working with the Missouri Department of Transportation to whittle project costs down." I suspect that trimming occurred because no one could justify asking a school for money while predicting a $2 million surplus.
Related NDN Article
City Council Election Filing - Day 1
Only hours after filing opened, four people have picked up packets for the April council election - and two have already been completed and returned to the clerk's office.
Unofficially, packets have been returned by Jeff Werneke and Chris Wright. Absent certification issues with the county, they will be one and two on the ballot, respectively.
Good luck to all who run. This is part of what makes our country great!
Unofficially, packets have been returned by Jeff Werneke and Chris Wright. Absent certification issues with the county, they will be one and two on the ballot, respectively.
Good luck to all who run. This is part of what makes our country great!
MML Traning - Can't Live Without It
This past week, two members of the Neosho City Council as well as the City Clerk attended the annual MML (Missouri Municipal League) Conference in Tan-Tar-A. In addition to seeing vendors offering numerous products and services (including things like park equipment, engineering services, retirement planning, etc.), the MML offers a number of training and learning seminars designed to teach council members how to be more effective. I counted a total of 22 learning opportunities at the conference...plenty for everyone.
It still surprises me that the state of Missouri doesn't 'require' training for council members. Back during my school board tenure, it was the LAW that new members attend training within 12 months of being elected. I'm not a fan of big government, but this particular law was right on the mark.
I'd encourage every elected official in Neosho to attend the training. It's a great learning opportunity and you gain knowledge that you'd otherwise never have an opportunity to learn.
Here's a little blurb from the MML website.
"The Missouri Municipal League was organized in 1934. Since its organization, its aim has been "to develop an agency for the cooperation of Missouri cities, towns and villages and to promote the interest, welfare and closer relations among them in order to improve municipal government and administration in the state." Thus, the League's basic goal is to strengthen cities through unity and cooperation"
Country Caboose is Leaving the Station
I see where the Country Caboose in Joplin is closing after 20 years. I remember when Jane and Bobby moved that caboose in and when the doors opened. I never bought anything, but I remember the uniqueness of the store. If you needed it for your kitchen, Jane had it.
Good luck, Jane, with your new ventures. Motorcycles are a load of fun.
Good luck, Jane, with your new ventures. Motorcycles are a load of fun.
Local Communities Receive USDA Loans
As reported in the Springfield News Leader this morning, Sparta and Ash Grove have received low-interest loans from the federal government. Ash Grove is using their $2 million for multiple infrastructure improvements.
Webb City Sees Possible Hikes in Sewer Rates
Neosho is not the only city in SW Missouri that will see higher sewer rates. But unlike Neosho's increase (which will pay for much-need upgrades and improvements), Webb's increase is more related to higher internal operating costs.
As reported in the Globe, "The sewer-rate increase is driven by higher operating costs of the Center Creek wastewater treatment plant, which Webb City shares with Oronogo and Carterville."
The sewer rate increase is reported to be around 36 percent.
As reported in the Globe, "The sewer-rate increase is driven by higher operating costs of the Center Creek wastewater treatment plant, which Webb City shares with Oronogo and Carterville."
The sewer rate increase is reported to be around 36 percent.
Council Sign Up Time has arrived
City Council elections are still months away, but today starts the yearly cycle of preparing for that election. Between today and sometime in November, anyone interested in running for the seat can pick up a packet of information from the City Clerk, Audrey Covey. It will be interesting to see who runs and how things shake out.
As a reminder, if more than 4 sign up, a run off election will occur in February.
Mayor Werneke and councilman Langland are up for re-election on this cycle.
As a reminder, if more than 4 sign up, a run off election will occur in February.
Mayor Werneke and councilman Langland are up for re-election on this cycle.
October 12, 2009
Where to start? I guess there is no better place than here.
This past week, I attended a meeting of the Missouri Municipal League (www.mocities.com) in Osage Beach, MO. As a current member of the Neosho city council, this meeting was my first visit to the annual conference of the MML and it was a great experience. Most important to me was the training the MML offered. There were a number of seminars on topics such as: planning and zoning, technology, annexations, and many more. It was a GREAT time to learn and network. This blog is a result of that conference. While I'm blogging not as a city council member (and therefore, know this is not an official blog of the City of Neosho), it's likely that some issues concerning our city may, from time to time, be a topic here.
Let's start this off by posting a great video from YouTube about Social Networking. It's quite facinating.
Let's start this off by posting a great video from YouTube about Social Networking. It's quite facinating.
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