Google Offers Too Much Underwear Info

Ever notice how Google will sometimes “help” you with searches by displaying what others have already search for on the same topic?  Well, sometimes that can be just a little too much information. 

I can’t say much more on this one.

Burger King and King of Beers Join Forces

Want more than a coke with your Whopper?  No problem.  Burger King and Budweiser and teaming up to offer you more drink options with your combo meal.  For about $2 more than a regular combo, customers can chose from a variety of brews including Bud, Bud Lite, and Miller Lite. 

The new burger joint, being called the “Whopper Bar”, will also offer an expanded menu of burgers and toppings.  The first restaurant will open in Miami Beach’s South Beach neighborhood.

Sen-Elect Brown (R-Mass) Supports Abortion Rights

Senator-elect Scott Brown (R-MA), just off his big win in Massachusetts, has told ABC’s “This Week” that he disagrees with his party’s position on abortion rights.  Brown does not agree that the Supreme Court decision legalizing abortion should be overturned believing instead that question is best handled by a woman, her family, and her doctor.

As a fiscal conservative, Brown appears to be more moderate on social issues. 

No-Bid Contract Canceled

As a follow-up to a post I made here last week, the Obama administration has now canceled a non-bid contract recently awarded to Checchi & Company Consulting for work in Afghanistan.  The owner of the company, Vincent Checchi, was a contributor to the Democratic party and a supporter of Obama.

Obama was criticized for the awarded contract after pledging during his presidential campaign to “end the abuse of no-bid contracts once and for all”.  Obama criticized the Bush administration for awarding such contracts to companies like Halliburton.

Leadership – Discussion of Ethics

You can’t discuss leadership without touching on ethics.  Day 2 of leadership training at Mizzou included a discussion of ethics and the challenges an elected official can face that relate to ethics.  Here are a few highlights.

First, ethics is simply the act of making judgments about right and wrong.  As people make those judgments, they’ll use some basis for their decision.  That basis may be to do what’s best for the greatest number.  It may be to follow the highest principle.  Or it might be as simple as deciding you’ll do what you’d want others to do to you.  There is no right or wrong answer on what basis you may use and that basis may change based on the circumstances.

So what happens once you set your ethical base?  Well, you’re then ready to take on an ethical challenge.  If you’re lucky, it will be a right/wrong decision.  Does the conduct violate codes of conduct?  Does it violate personal principles and values?  Is it against the law?  These are easy ethical decisions to make.  They are clear (or bright line) and easy to determine right from wrong.

You can usually use a few simple questions to answer the right/wrong decision:

The legal test – is this something that could put you in jail?

The stench test – does this just smell bad?

The headline test – would you like to read this in the newspaper?

The ‘Mom’ test – Would you want your mom to know?

But what happens when you have a right vs. right situation?  Those might include situations that involve truth vs. loyalty, individual vs. community, justice vs. mercy.  Those ethical situations lead to very tough choices and usually occur when two (or more) competing values are in conflict.  They’ll usually result in a ‘bad’ outcome for one or more parties and quite often have no really ‘good’ choices.   

Regardless of the position you’re in, it’s just a matter of time before you’ll be facing a situation that involves an ethical dilemma.  How you handle that situation will tell a lot about you as a person and your understanding of deciding right from wrong.  But you must do what you feel is right. 

To finish, remember the words of Harry Truman - “Do your duty and history will do you justice.”  Good luck.

Truman School Pushes Leadership Development

One day down, one day to go in my first of three leadership conferences being held at the University of Missouri.  Sponsored by the Harry S. Truman School of Public Affairs, this week’s two-day course is focused on:

• Understanding Individual Behavior
• Motivating People
• Ethics and Leadership

About twenty five people from around the state are enrolled in the leadership academy.  Attendees consist of council members, city administrators, police chiefs, and airport directors to name a few.

One interesting part of the conference was identifying the personality profile of each attendee using the Myers-Briggs method.

The course is co-sponsored by the Missouri Municipal League.  A flyer for the program can be found here.

Beds See More Action in 4th Quarter of 2009

Apparently some things are still up despite the weak economy.  That includes profits at Tempur-Pedic.  The final quarter of the year brought a 129% rise in net income for the mattress and pillow manufacturer with profits totaling $29.1 million.

The company accomplished this largely on the basis of a 29 percent gain in net sales, which finished the quarter at $244.8 million, thanks to significant increases on both the domestic and international markets. This pickup produced a gross-profit increase of 46 percent, which helped offset increases of 31 percent in selling and marketing expenses, and 23 percent in general, administrative and other expenses.

For the full 2009 fiscal year, Tempur-Pedic posted a 44 percent increase in net income, to $85 million. Net sales fell 10 percent to $831.2 million, but the company was able to trim selling and marketing expenses by 11 percent. Cost of sales dropped 17 percent.

Mark Sarvary, chief executive officer, said the positive quarter owed to a gradual improvement in the economy as a whole and Tempur-Pedic’s sales and marketing initiatives. Sarvary added that the company’s advertising campaign and productivity improvements point to a strong performance in 2010.

Consumer Confidence Rises in January

NEW YORK–The Conference Board’s Consumer Confidence Index reached 55.9 this month, up 2.3 points from its December reading.

Both of the index’s component indicators, the Present Situations Index and the Expectations Index, also rose in the January survey—with the former gaining 4.8 points to 25.0, and the latter picking up 0.6 points to finish at 76.5. Lynn Franco, director of the The Conference Board’s Consumer Research Center, noted that this marked the third month in a row that the overall index gained ground. However, “Consumers’ short-term outlook, while moderately more positive, does not suggest any significant pickup in activity in the coming months,” Franco said.

This month’s survey found increases in the percentage of respondents who felt that business conditions are “good” and “bad.” The participants’ assessment of the jobs market improved somewhat, with an increase in the percentage of those who felt that jobs are “plentiful,” and a decline in the percentage who said jobs are “hard to get.”

“Regarding their financial situation,” Franco said, “while consumers were less dire about their income prospects than in December, the number of pessimists continues to outnumber the optimists.”

Former Carthage Municipal Clerk Charged with Theft

The Joplin Globe reported this morning on charges filed against former Carthage Municipal Court clerk Amy Harrison related to an alleged theft of court monies.  Harrison is charged with a Class B felony in connection with a theft of funds that were never deposited into the court's bank accounts.  The alleged theft amounted to $65K.


Harrison was fired last year after the Highway Patrol was called in to investigate the suspected theft.


Police Chief  Greg Dagnan was quoted in the Globe as saying “We’re relieved the justice system has started, even though this is just the beginning, and that the issue is closer to being resolved.  The city has been very proactive in taking steps to make sure this won’t happen again in the area of the court and the Police Department.”

The full article is here.

Residental Home Sales Drop Again

Sales of new single-family homes in December 2009 fell 7.6% from November and declined 8.6% from December 2008, to 342,000.  For the full year 2009, new home sales fell 22.9% from 2008.

 The median sales price of new houses sold in December 2009 was $221,300.  The average sales price was $290,600.  Estimated new homes for sale at the end of December was 231,000.  This represents a supply of 8.1 months at the current sales rate.

Always Need A Good Co-Pilot

I often say that there are no words that can describe the bond a parent makes with a child.  Until you have kids, you simply can’t appreciate the love a parent can feel.

Every so often, my daughter and I will do things on a father-daughter day.  Sometimes it’s just the two of us loading firewood.  Sometimes it’s just the two of us grabbing a bite at Subway.  But it’s a special time for us to share time together.

A few weeks back, my daughter asked me to take her flying.  As a pilot for 20+ years, hearing my daughter ask to do something that I also enjoy as a hobby is a wonderful thing.

Although the flight didn’t last long, she was a great co-pilot.  And while I pride myself on be precise in my control and operation of the airplane, she’s more interested in quick climbs and decents that tickle her belly like a roller coaster (my late grandfather called those ‘howdy doody bumps’).  She’s also picking up the radio talk quite well, but is still a little shy to say too much.  So far, just a “roger, two niner lima” is the most she’ll put thru the mic, but it makes my smile.  I can even hear the smiles on the other end of the radio when ATC acknowledges that young voice.

So to those parents our there, make sure you spend time making an positive impression on your children.  And remember to enjoy the pride that comes with being a parent.  There's no other feeling like it in the world.

Montee Says “Duty of Board to Oversee Finances”

State Auditor Susan Montee held a conference call this morning to discuss the State’s audit of the Village of Leawood.  During the conference call, Montee stated that the “ultimate responsibility” for oversight of Leawood’s finances rested with the Board of the city.  She called the failure of the Board to do that oversight “very sad”.

Many things required by state law were not being done in Leawood, according to Montee.  Those included simple tasks such as preparing and submitting annual budgets.

The Globe website has a link to the audio.

Obama Says Sweetheart Deals Will End – Really?

As a candidate for president in 2008, then-Sen. Obama frequently derided the Bush administration for the awarding of federal contracts without competitive bidding.  Giving a commitment to do better, then-candidate Obama told a campaign rally audience in Michigan “I will finally end the abuse of no-bid contracts once and for all…the days of sweetheart deals for Halliburton will be over when I'm in the White House."

I guess what he said was ‘technically’ true.  He hasn’t given any sweetheart deals to Halliburton since becoming president, but it appears he HAS given such sweetheart deals to HIS political supporters.  Reports today indicate that the Obama administration did award in January a $25 million federal contract for work in Afghanistan to Checchi & Company, a company owned by a Democratic campaign contributor.  Reports indicate the award was given without entertaining competitive bids.

So much for doing what you say.  Unfortunately, regardless of the party, I’m not a bit surprised. 

Leawood Audit Cites Lack of Oversight As A Reason for Loss

The audit report of Leawood was released today online.  In it, findings include over $325K of missing funds from the city between 2002 and 2008 along with confirmation that bank statements provided by the former Village Treasurer Gene Paul Boyd were fabricated.  (Boyd was charged last February with stealing).  The findings do no go back prior to 2002, but the accounts in question date back to 1978.

The audit includes this paragraph describing where the funds went:

Village checks totaling $37,300 were made payable to the former Village Treasurer from the village's official bank account between November 15, 2002, and October 16, 2008. These checks were not approved by the Village Board and according to village officials, signatures on these checks were forged. Additionally, village funds totaling $290,433 were diverted into an unauthorized bank account (unknown to Village Trustees) between November 15, 2002 and October 16, 2008. Disbursements from this unauthorized account included checks totaling $286,660 issued to the former Village Treasurer, $1,604 for bank charges and postage, and $2,169 returned to the village.

The report went on to say that poor accounting procedures and a general lack of oversight by village officials contributed to the loss.

Even an potential nepotism finding was included that stated the Village Secretary, who is also a member of the Board of Trustees, voted to appoint her spouse to fill one of two vacant board positions.

The audit ‘yellow sheet’ can be found here.

Neosho Daily Supports Sheriff's Look Into Finances

Below is a editorial comment from today's (Sunday) NDN.

Neosho, Mo. —

We’re heartened to see that the Newton County Sheriff’s Department is investigating potential criminal violations regarding a transfer from the “bed tax” fund to general revenues in order to make city payroll and other city obligations.

While we’re not attorneys or judges, it is clear that the fund transfer was a clear violation of the intent of the ballot issue voters approved back in 2006, if not of the law itself.

For this conclusion, we needed look no further than the ballot language itself: “Shall the city of Neosho impose a tax on the charges for all sleeping rooms paid by the transient guests of hotels, motels and tourist courts situated in the city of Neosho at a rate of four percent for the sole purpose of promoting tourism?”

Key words in that ballot issue, in case you missed it: “the sole purpose of promoting tourism.”.  Sounds pretty clear to us. If funds are designated solely to promote tourism, then that is what they should be used for. The end. Finis.

But that wasn’t what they were used for. Instead, funds were used to pay city bills.

We understand the money crunch the city is in right now. Times are tough for all of us. We all have had to make sacrifices in order to keep afloat, to rob Peter in order to pay Paul.

But you can’t take money designated for one function, bound if not by law, then by the intent of what voters approved, and use it for another purpose. It isn’t right. It’s a violation of the people’s trust.

The council is slated to meet in a special closed session at 6 p.m. Monday to discuss personnel issues.

We hope some of those issues involve disciplining anyone involved in the fund transfer. But, we realize, the council has the authority only over the city manager, the city attorney and the city clerk.

City council, the eyes of all of Neosho are watching you. Do what’s right.

DAILY NEWS

Newton County Approves 2010 Budget

Newton County officials have approved their 2010 budget with no plans for cuts in service.  After seeing a 4.88% reduction in sales tax revenues in 2009, county officials were forced to eliminate any cost of living adjustments for the new budget year.  Revenue projection for 2010 are ‘flat’ with 2009.

County officials credited their past build up of reserves as the reason the county hasn’t been forced to cut services.

The full article can be found here.

Sam Walton – Where Are You?

25 years ago, Sam Walton launched a new campaign – the “Buy American” campaign to help keep American jobs in America.

As part of the campaign, Walton said: “We cannot continue to be a solvent nation as long as we pursue this current accelerating direction. Our company is firmly committed to the philosophy by buying everything possible from suppliers who manufacture their products in the United States.”

I can still remember seeing the signs displayed in the local Wal-Mart stores promoting how many jobs had be saved by Buying American and the running total that stood in the front of the store tauting the program’s total impact.

As our gov’t leaders (Gov. Nixon and President Obama included) talk about the economic woes we face and work to create jobs and reduce unemployment, I’d encourage them to take another look at the plan Mr. Sam had 25 years ago.  It seems like a good place to start.

Congrats to Shelby

Just a quick note of congratulations to Shelby Cummins for being crowned Neosho’s Basketball Homecoming Queen.  I’ve known Shelby for many, many years and I’m proud of her accomplishment.  She’s a great young lady with a great family.  (And kudos to Dr. Jimmy Ray for his excellent job of escorting.  He didn’t look too nervous.)

Statement on Sheriff’s Investigation

Citizens of this city and of this state and of this country have an expectation that any governmental body that COLLECTS a tax will USE that tax responsibly for the purpose(s) for which it was approved and collected.  This is a fundamental duty and responsibility of government.

Recently, issues have been brought to light concerning the spending of the city’s hotel / motel tax.  Specifically, it has been reported that the city used those funds to help finance their day-to-day operations.  I am concerned that this use may be in conflict with the intended purpose of the tax and therefore be in violation of Missouri statute.

As an elected official, I am sworn to support the provisions of all laws affecting this city.  I felt an obligation and a duty to make the Newton County Prosecutor and the Newton County Sheriff aware of these possible violations.

It is now their responsibility to look into this matter.  I appreciate their willingness to do so and look forward to the matter being resolved.

My Blog is Batting 1000

Since installing Google Analytics over Christmas, I’ve got a much better idea of how many people are visiting the site.  Since Jan 1, I’ve had a 1000 hits by 169 different people.  Those 169 people have looked at 2162 pages of ‘stuff’.

If you like numbers and stats, here are some to file away:

50.5% have come in via DSL

2.3% are using dial up

51.9% are using Internet Explorer

7% are using a mobile phone

72% come straight to the site – no referral

4% come from google.

While I had no expectation going into this, I’ve been quite pleased.  Thanks for stopping by and I hope you are enjoying the posts.

Globe Editorial Cites Need for Trust

Below is the online editorial from today’s Globe:

In our view: Neosho needs trust

The city of Neosho is to be commended for releasing more information to the public in the wake of its confession about the depth of its financial woes.

Unfortunately, the information is only raising more questions, many of them troublesome.

We are troubled that anyone at the city would even consider the possibility of a property tax without a vote of the people. Even if the letter of the law would allow it, we think the spirit of the law and a respect for the citizens demand a public vote.

We are troubled that City Manager Jan Blase can make a statement like: “I’m not convinced the public isn’t liking what they’re seeing.”

The city has laid off people. It has cut its budget and some services. It has misused a state loan and other funds. It has to borrow more money. It faces a financial crisis.

We see no evidence that the people of Neosho like any of this.

The city administration needs to get plugged in to what its residents want. It will need them to get out of this crisis.

A state audit is sorely needed, unfortunately that is going to take some time, and the city needs answers now. The best course for city leaders is absolute transparency, no matter how bad the news. Regaining public trust has to start somewhere.

In our view, it would be wrong, if not illegal, for city leaders to impose any type of property tax now or later without a vote of the people.

Unlike Blase, we are convinced that the people do not like what they are seeing.

Scott Brown – Lessons Can Apply Even Here

As Senator-Elect Scott Brown drives around Washington D.C. in his infamous truck,  Washington democrats are now conceding that the gov’t takeover of health care is all but dead…at least for now.  And what Scott Brown did took many, many months of hard work and dedication.  Even when the winds looked be firmly behind his opponent’s sail, Sen-Elect Brown stuck it out, stayed in the game, and wound up being successful in his bid to go to Washington.  And that success has changed the entire political game in D.C. 

So you ask “So What, Richard?  What’s your point?”  Well, my point here has nothing to do with heath care or Scott Brown, but is more of a lesson to remember.  Brown proved that just when everything seems to be going a certain direction and everyone is assuming it to be a ‘done deal’, along comes someone or something from out of the blue that puts the status quo on its ear.  And it can happen anywhere, not just in Washington, D.C.

So when you think all hope is lost or nothing more is going to be done, remember there may be another Scott Brown our there who is working hard to make a difference.  You just never know what’s around the corner.

First Club Count Reductions in Sam's Club History

This from yesterday’s Retailing Today Newsletter.

By this time next week 10 Sam's Clubs locations nationwide are set to close, marking the first time in the division's 25-year history that its store count has experienced a decline. A certain number of clubs close or are relocated every year, but the reduction was more than offset by the opening of new clubs or relocation of existing units that might otherwise have been closed. That situation changed this year, though, as Walmart corporately became more judicious in the use of its capital budget. As a result, Sam's added only six new units and shifted its focus to improving existing operations by stepping up remodeling efforts. Look for more of the same next year, as plans call for between five to 10 new units and 60 to 80 remodels. Don't be surprised if the company comes in at the low end of the range for new units and the high end on remodels. The clubs due to close next week are located in Nampa, Idaho; Louisville, Colo.; Rolling Meadows, Ill.; Clay, N.Y.; Houston, Phoenix and La Quinta, Vista, Irvine and Sacramento, Calif.

Even strong company’s like Wal-Mart are feeling the pinch in certain areas of the country.

In case you didn't know, Sam's Club doesn't refer to their clubs as 'stores'.  The correct terminology is 'club'.  And they don't have 'customers', they have 'members'.

Band Storage Cabinets Almost Finished

After months of planning, building, and installing, the Neosho High School Band is another step closer to having a new set of storage cabinets for student and school instruments.  Yesterday, a few of my employees and a number of band students installed almost 200 doors and locks on the new cabinets.  Only a few cabinets remain to be delivered.

Rick Rogers and I first spoke last Fall about the need for new storage at the High School (where his wife is the band director.)  Being a former Neosho band member myself, I decided to help.  My company began designing and building cabinets for the band in October.  Until yesterday, those cabinets were more like cubbies, lacking doors and locks.  Now, they look like REAL cabinets.

When completed, the band will have over 200 individual slots to store all shapes and sizes of cabinets.  All of the cabinets were designed and built by my business, Marco Group, and were donated to the High School.  The cabinets are valued at $50,000.

Liking them so much, I’ve decided to market the cabinets to schools around the country.  We will debut our cabinets to the world at the Texas Music Educator Association convention next month in San Antonio.

Joplin Sees Higher Tax Receipts in January

The Joplin Globe is reporting that sales tax receipts in Joplin were up in January.  Compared to January 2008, Joplin saw an increase of $13,000 with payments totaling just under $1.17 million.  Year-to-date, Jopin’s tax revenues are still down almost $96,000 from compared to last year.

Neosho’s sales tax revenues for the year are down from last last year.  If I had January’s numbers, I’d comment on them as well.

The full Globe article is here.

Rec Board Endorses ‘Y’ Plan

Less than a week ago, I went to the local YMCA director to discuss her interest in taking over the summer ball program in Neosho.  That option is now one step closer to reality.

On Monday night, the Neosho Rec Board voted unanimously to recommend the YMCA take over the summer ball program starting for the upcoming season. Last week, city manager Jan Blase announced the city was considering eliminating the program as part of a larger plan to cut costs in the budget.

During the meeting, a group of citizens who had also come forward to run the program threw their support behind the ‘Y’ option and ask that a meeting scheduled next week to discuss their plan be cancelled.

Thanks to everyone who helped make this happen.

Bubble Travel

Ms. Augustine, elementary teacher for Neosho R-5, stands 'inside' a large soap bubble as part of a CIA invention lesson.

Elementary students from the Neosho R-5 CIA program gathered on Sunday to learn about inventions. Other activities included learning about catapults, hovercraft, and how to make cotton candy.

Over 25 students participated in the event.
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For Sale by Owner: Space Rocket - High Mileage - Runs Good

Nasa has lowered the price on their shuttle fleet. Now for just under $29 million, you can be the proud owner of either Atlantis or Endeavour (Discovery is promised to the Smithsonian.) That's quite a discount compared to the original offering price of just over $40 million announced last year.

The shuttles are for sale once their flying days are over, which is scheduled to be this fall.

The lower price is based on NASA's estimate of the cost for transporting a shuttle from Kennedy Space Center to a major airport, and for displaying it indoors in a climate-controlled building.

Potential customers have until Feb. 19 to put in a request.

The engines are available, along with other shuttle artifacts, at no charge...just pay shipping and handling.

60-57 MoSo Ladies Win

The Lady Lions won a close game against the UN-Omaha lady Mavericks.

Great job MOSO!
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Sen Bayh - It's not Just Perception

In today's NY Times, Indiana Senator Evan Bayh (D) was commenting on the close Senate race in Massachusetts.

When ask if the tight race is reflective of a more serious threat to Democrats, Bayh commented "I do think there's a chance that Congressional elites mistook their mandate," Mr. Bayh said. "I don't think the American people last year voted for higher taxes, higher deficits and a more intrusive government. But there's a perception that that is what they are getting."

Mr. Bayh, last time I checked US taxes are higher, the deficit is higher, and gov't is intruding on personal decisions such as health care. Perhaps the word 'reality' is a better choice of words than 'perception'.

Why the ‘Y’?

Putting the YMCA in charge of a sporting program makes a lot of sense to me.  They do it everyday and have the staff and back office support to make it a seamless transition.  I’m hopeful the city staff and the Y can work an arrangement to keep the summer ball program going and give those that support it (parents and sponsors alike) the comfort and security that the program will be run ‘right’ and be a positive experience for all of our kids.

As a parent and coach, I’m all for this.  And based on the calls I’ve received today, it seems like I’m not alone.

Here’s a post from the National ymca.net website:

YMCA Sports Programs

A mainstay of YMCA offerings for young people, Y youth sports programs fill kids' discretionary hours with positive activities and caring adult attention. Coaches -- often volunteers, including many parents -- emphasize teamwork and cooperation over winning at any cost, developing good values over developing the next superstar.

 

Basketball and volleyball, both YMCA inventions, are popular youth programs, as are baseball, softball, T-ball, soccer and progressive gymnastics. Other local options range from traditional sports like tennis and football to such newer inventions as in-line rollerskate hockey and wallyball. Some YMCAs offer programs for people with disabilities. Many YMCAs offer options for adults, too.

No Summer Baseball is a Game Changer

Word on the street today is the city's consideration of not having a city-supported summer baseball/softball/t-ball program in 2010. While the details are still emerging, the issue does raise some valid concerns and some pointed criticisms.

Budget wise, the program on paper shows losing around $50K a year. With the reduced revenues and project overruns detailed earlier in this blog, every cash drain to the city looks to be under the microscope.

As a parent of a t-ball player and a 'corporate' sponsor last year of a team (that sponsorship is a $1000 obligation for a season), I've got my own issues outside of having to look at the city's needs as an elected member of the council.

It is my hope that through a grass roots effort, something can be done to save the programs. In Neosho, summer baseball has been around for decades. Not having that available for our kids doesn't seem like the best option.

I'm going to do my part to 'step up to the plate' so my daughter and 1000 other kids in Neosho have a plate to step up to in May.

(The photo above is from my 2009 coach-pitch softball team.)

Profits Make WiFi ‘Safe’ on Flights

Apparently, the use of WiFi-enabled devices on airplanes is no longer a safety hazard – as long as you pay for the service.  For years, flight crews have required wireless devices be turned off during flight to ‘avoid interference with the plane’s navigational systems’.  But now that GOGO wireless has a pay-for-use service available on American Airlines, that ‘interference’ must not be so concerning and perhaps it was just a bunch of boloney after all.

Planes Fly Low in San Diego

Due to the geography, planes landing to the north get very low on final approach. This video is from the gas station just off the approach end of the runway.

A Welcomed Change in Climate

While I love life in the midwest, I can see the attraction of the coast. The waves along the San Diego shoreline against the sunset were simply spectacular. The mid-70 temps were a great change as well.
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Springfield Tax Revenues Down Again

This from today's SBJ:

Springfield's sales tax revenues dropped in January, though the decline was less than in previous months.

The city received just less than $3.4 million from its 1 percent general revenue sales tax this month, a 3.5 percent drop from the $3.5 million the tax generated in January 2009. January revenues reflect November sales in the city.

For the first seven months of fiscal 2010, the city's general sales tax revenues are $20.8 million, down 8.8 percent from the first seven months of fiscal 2009.

The January drop comes on the heels of City Manager Greg Burris' announcement last week that the city must cut $1.27 million from its current year general revenue budget due to lackluster sales tax performance through the first six months of the fiscal year, which runs July 1-June 30.

Those proposed cuts, which include withholding a $225,000 transfer to the Health Department and cuts to capital and maintenance funds for the Public Works and Public Information departments, will get first reading at Springfield City Council's meeting tonight.



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Wireless at 30,000 feet

As technology continues to evolve, here's another first for me that few others have done: blogging from 30,000 feet over New Mexico. Thanks to gogo wireless, my blackberry is running like a charm with email and internet. Gosh I love technology.

True Commerce - EDI: Follow Up

Since my post on issues surrounding our new EDI package from True Commerce, I've got to say that they've responded to the challenge.  After a letter to corporate management at True Commerce and Sage, I've been personally contacted by both the President and Vice-President at TC along with being given unsurpassed access to technicians to finally fix the issues.  While I would have preferred the solutions to have come without such extreme measures, I'll give them the credit of taking care of the problems and showing their willingness to address customer services issues. 

So far, their 'fixes' are working and things are much, much better.  And I've gone as far as extending an invitation to their technical assistance folks to visit Neosho to get some hands-on experience with their software in a real manufacturing environment. 

Overall, it's been an learning experience for everyone, but I'm glad to see that some US businesses still understand the value of customer service and I'm glad to see TC step up to the plate.

Chinese Exports Turn Upward in December

Exports from China grew 18% in December.  That follows 13 months of repeated declines.  It also comes a year after the Chinese gov't implemented a massive investment-led economic stimulus program.  Import activities were also up 56% led by a record-setting month for crude oil and 2nd all-time-high for iron ore. 

For the year, China's exports were down 16% while imports slid 11.2%.  2009 was the first year China had seen a decline in exports since 1983.  That decline in '83 was a mere 0.4%

China has been very clear on the need to drive up domestic consumption.  After all, having jobs and making products that have no where to go helps very little.  That's one stimulus the US market is missing.  Giving tax credits to those that hire people is fine, but if you don't have a market to need those jobs, those credits will offer marginal help.

Airport Security Is a Broken System

Last month's terror threat on NW Airlines by the now infamous underwear bomber shows a lingering and fatal flaw in airline security. Despite all of the flags (cash ticket, one way travel, no luggage), the system didn't work. And even if the would-be terrorist had done it right to avoid extra scrutiny (which he didn't get), the chances of catching an explosive in someone's underwear with today's security methods would have been more luck than anything else. Bottom line, those passengers got lucky - lucky that bomb didn't kill every one of them.

But it doesn't take a Nigerian terrorist with explosives to show the system is broken. This morning, the TSA agent clearing me through security made a fundamental error in not checking the right boarding pass of my traveling partner. Without showing a proper boarding pass, the TSA agent simply made a few check marks and scribbles on the piece of paper and sent us on, violating the simplest and most direct check there is - 'Does this person have a valid ticket to get past security?' What he saw and signed off on was not what is required. But we got through anyway. (We did make a point to notify the supervisor on duty once we got out shoes and belts back on. )

But change does appear to be coming. The new administration is looking to make TSA a union organization, further creating more gov't bureaucracy and only making it harder to hold those accountable who don't do the job they are paid to do.  That's will surely make things so much better.

Personally, I'd rather see the TSA raise their standards.  It takes years to be a pilot on a 777 flying from Chicago to Shanghai, but it takes only weeks to be responsible for keeping those planes free of explosives and other harmful items.  Don't take this the wrong way.  There are a number of talented and well qualified individuals doing their job for the TSA, but I've seen just as many that make me cringe.  This personal example is just one of several I could share.

So I'd offer this comment - until things get better:  make security your concern. Don't rely on others to keep you safe. Be vigilant. Pay attention. Report anything suspicious. Help them do their job. It's painfully obvious that the system today isn't doing the job it is designed to do. And I wouldn't count on our government to make it better anytime soon.

Key Legislation To Look for in 95th General Assembly (2nd Session)

As the people we elect to do our business go back to work in Jefferson City, there are a few key legislative items that municipalities should follow.

HB 1409 – Prohibits municipalities from holding the landlord and tenant jointly liable for delinquent utility bills.  Right now, a municipality CAN hold both parties liable.

HB 1299, HB 1444, HB 1445 – Makes changes to the Sunshine Law including the addition of penalties of $1000 per person for any “knowing” violation of the law no matter how minor or technical.  Current law provides for a penalty up to $1000 based on the seriousness of the violation, size of the jurisdiction, and previous violations.

Other bills of interest include:

HB1205 – Prohibits all drivers of a motor vehicle from text messaging while driving.  Currently, texting is prohibited for drivers under 21 years of age.

HB 1214 – Exempts from property taxes anyone of the age of 75 with an income of less that $30,000.

BH 1216 – Freezes  the property taxes for every homeowner over 65.

HB 1222 – Exempts from sales tax any membership fees for health and fitness clubs.

HB 1229 – Fines collected for a red light camera violation shall go to the local school district.

HB 1350 – Limits the growth in assessments on owner-occupied residential property to 2% or CPI growth, whichever is less.

HB1387 – Exempts firearm and ammunition from state sales tax for a three day period in October.  Cities may opt out.

HB 1414 – Requires forfeiture of all benefits from state or political subdivisions for any elected or appointed official found guilty of a felony.

HB 1442 – Caps the general fund sales tax at 2% and the capital improvement sale tax at 1%.

HB 1444 – Requires a four day notice where any tax increase, zoning matter, TIF, TDD or CID issue is discussed along with mandating comment periods.

HB 1458 – Exempts fuel used in the operation of school buses form the state motor fuel tax.

HJR 52 – Prohibits use of eminent domain to redevelop blighted areas.

SB 589 – Prohibits a convicted felon from holding any public office.

SB 623 – Prohibits the payment of interest by local governments on sales tax refunds

SB 638 – Prohibits all red light enforcement cameras.

SB 671 – Limits residential assessments to any increase of 1% per year.

SB 680 – Reduces the liability on hazardous substance spills from 100% to 25% of cleanup costs.

My Formal Apologies to “Bob”

Every so often, I’ll make a comment that gets taken the wrong way.  It’s usually because the person doesn’t know me well, I do a bad job of communicating, or they just don’t “appreciate” my sense of humor. 

In any case, I found out this week that a comment I’d made to “Bob” a few weeks ago in passing had really been bothering him.  And while I’ve apologized to him in person, I wanted to put the apology here so he knew the apology was sincere. 

“Bob” – I again apologize and I am sorry.

Cessna Brings Back 180 Workers

While the econmony continues to suffer, one surprise I caught in the news last night was Cessn'a plant to bring back 180 employees over the next three weeks to restart production of its Citation Sovereign business jet.

While Cessna cautioned the recalls were not due to any significant new activity in orders, it's good that these 180 folks will be back to doing work and receiving a paycheck.

The full article can be found here.

World’s Tallest Tower Opens In Dubai

From Bloomberg - 

Dubai's Sheikh Mohammed bin Rashid Al Maktoum opened the world's tallest tower today and renamed it after the ruler of neighboring Abu Dhabi, which bailed out Dubai during the country's debt crisis last year.

The 200-story Burj Khalifa cost $1.5 billion to build. The tower takes it name from Sheikh Khalifa Bin Zayed Al Nahyan, who is also president of the United Arab Emirates. While mainly residential, the building will have 37 floors of office and retail space.

During the five years of the tower's construction the sheikhdom's debt-fueled property market went from the world's best performing to the worst, forcing officials to renegotiate loans and seek bailouts from Abu Dhabi. The Burj's occupancy rate may reach 75 percent this year, with office leasing proving the biggest challenge for investors, said Roy Cherry, an analyst at investment bank Shuaa Capital PSC.

"Those who bought with the intention of leasing will face a difficult time because few companies today can justify paying premiums for luxury," Cherry said.

Burj Khalifa has a height of 828 meters (2,717 feet), Alabbar said in a telephone interview today. Apartment prices in the tower, formerly known as Burj Dubai, have fallen to less than half of the 10,000 dirhams ($2,700) a square foot that they reached at the 2008 peak.

Project Overruns Contribute to Cash Flow Problems

So far, we’ve taken a look at one major source of revenue to the city – sales tax, and how a downturn in economic activity can spell trouble if reserves are not adequate and/or the downturn lasts longer than reserves can cover.  But by looking at the numbers related to sales tax, it’s fairly obvious that this area alone was NOT the sole cause of our current issues.  So what else is there?

Over the past few years, Neosho has seen some aggressive spending for a number of capital projects.  Those projects include renovations to the Civic and the Sr. Center along with a transportation package consisting of the South St. Overpass project, Howard Bush Drive extension, La-Z-Boy Drive (down by Morse Park) and Hwy 59 resurfacing.

Both the renovations and the street projects were given the go-ahead by voters and both use a sales tax to repay, over time, the principal and interest payments associated with the borrowing that provided capital for the projects.  But a closer look will show that those projects wound up costing the city more than was planned, and thus became another contributing factor to the cash flow crunch the city is now experiencing.

Transportation

While the accounting gets a little complicated due to past work performed by city employees prior to the actual approval of the transportation plan, that project as a whole is still over budget.    Depending on how far back you go and how you treat the city’s internal work and allocations to the project, cash outlays in excess of bond revenues already exceed $1 million.  Depending on how you allocated rebates from MoDOT and the railroads once La-Z-Boy Drive is complete, that number may drop by a few hundred thousand.  But that doesn’t include the projected $1 million Hwy 59 resurfacing project originally discussed as part of the transportation proposal.  Nothing has been spent on that project as of the end of 2009 (and probably won’t be anytime soon based on the circumstances we face.)

Civic/Sr. Center

An easier project to analyze is the Civic/Sr. Center remodel and the costs associated with it.  On paper, my math shows those two renovations, together, exceeded revenues by over $1.3 million.  That’s $1.3 million that had to come from somewhere…and that somewhere is straight out of the city coffers.  What Neosho wound up with is a great place to hold events (in the Civic) and a great place for our Seniors to meeting, have fun, and socialize.  I’m not criticizing either project.  But when budgets don’t hold and extra monies are spent  above original estimates, even the best intended projects can cause trouble.

Summary

So we’re now getting closer to having a better understanding of how we got to where we are.  Remember, I’ve not laid blame or criticized any specific people for their actions, but rather made an attempt to help explain to the public the how’s and why’s of our current predicament.  As all of the areas start to add up, it’s not difficult to see how a cash crunch was almost inevitable. 

It’s important that we all be well informed.  You should know that more difficult decisions are coming in the new few weeks and months if we are to to pull out of this spiral.  And while having an understanding won’t make the pain any less, I think it does offer some reassurance that the problem is manageable and a solution can be worked out. 

I am confident that Neosho will recover.  And I’m here to do my part, 24/7, to help ensure that happens.  Hang in there, folks.  We will get through this and Neosho will be better and stronger because of it.

Mssu Girls Home Against Emporia Hornets

MSSU Lady Lions are home tonight against the No. 7 Emporia State

The Lady Lions will try to snap a three-game losing streak.

Missouri Southern is 8-4 (2-3 MIAA). Emporia State is 12-1 (5-1 MIAA).

**Update - Emporia Ladies defeat MSSU 55-52**

Pelosi Plays Down Obama's Campaign Promise for C-Span to Cover Legislation Debate

Pelosi's speech yesterday took a jab at President Obama who, while on the campaign trail running for President, promised he would have debate and discussions related to this topic put on C-SPAN for all to see. Obviously, that hasn't happened. And I guess Pelosi doesn't really believe that was the actual promise from our President.

Open process?  Give me a break.

You decide.

Joplin OK’s Sewer Run to Help with Industrial Development

Last night, the Joplin city council approved a $839k sewer project to supply sewer lines to a new 2000 acre industrial development in SW Joplin.  The vote was the council’s way to show their support to help bring more industrial jobs to the Joplin economy. 

After grants and other costs paid for by the EPA, the city of Joplin will be responsible for approximately $350k of the project cost.

The full Globe article is here.

Missouri Facing More Cuts as Revenues Fall Short

Below is an article from today’s Joplin Globe commenting on more cuts Missouri may need to make to balance the budget.  Neosho is not the only one feeling the pinch of revenue shortfalls.

The full article is here.

JEFFERSON CITY, Mo. (AP) — Missouri officials might have to cut an additional $200 million from the state budget within the next month if tax revenues continue to fall short of expectations.

Revised figures released Monday predict revenues for the 2010 fiscal year, which ends July 1, will be 6.4 percent less than those collected the previous year.

Gov. Jay Nixon already has vetoed or cut more than $600 million from the $23.7 billion approved by lawmakers for state operations and capital improvements. But with revenues continuing to shrink, Missouri faces an additional shortfall of nearly $200 million, said Linda Luebbering, the budget director for Nixon’s administration.

“Our goal is to announce some additional expenditure restrictions by hopefully the end of January,” Luebbering said.

About 2,300 full- and part-time state jobs have already been eliminated. Additional layoffs are possible, and all areas of state government are being examined for potential cuts, Luebbering said.

Nixon, who is a Democrat, and the Republican chairmen of the House and Senate budget committees all accepted the revised revenue estimates. Missouri officials consider revising their revenue estimates each year around December or January, when they also release the first revenue projections for the upcoming budget year.

C-SPAN to Obama – Follow Thru with your Promise

C-SPAN, in an unusual move, today sent a letter to President Obama asking him to allow the network to cover all hearing and meetings related to the reconciliation of the health care bill.

During the campaign, then-Senator Obama criticized the workings of Washington politics and pledged to make our government more open and transparent.  Rep. Pelosi and Sen. Reid were behind him.  Since then, a number of behind-closed-door meetings have occurred with Rep. Pelosi and Sen. Reid regarding health care.  More are occurring as we speak.

C-SPAN’s point – you said you’d make this change, now make it.

Brian Lamb, CEO of C-SPAN said this in the letter:

"President Obama, Senate and House leaders, many of your rank-and-file members, and the nation's editorial pages have all talked about the value of transparent discussions on reforming the nation's health care system....  Now that the process moves to the critical stage of reconciliation between the chambers, we respectfully request that you allow the public full access, through television, to legislation that will affect the lives of every single American."

Personally, I like CSPAN’s approach.  The time has come to hold politicians to their promises.  The days of saying what it takes to get elected, only to then do what it takes to get re-elected need to end.  Both parties are at fault and we are all paying for it.

True Commerce EDI - Not The Best

This post won't interest most of you, but based on how quick Google is picking up posts to this blog, I thought I'd post a comment regarding a new EDI package my business recently switched to.

Most of my customers require EDI to exchange information. For those that aren't familiar, EDI is basically an electronic exchange of information for orders, invoices, etc. For us, the data crosses back and forth via the internet.

Because EDI is it's own unique animal, I decided to 'outsource' our EDI processing. As things have grown and EDI has changed, I was tired of trying to keep up on the technology and wanted to quit being the inhouse IT guy to fix EDI whenever it broke. And since EDI has to somehow interface with our accounting system (MAS90), we went to the company who makes that software (SAGE) for guidance. Long story short - we wound up using a company called True Commerce. They were touted as 'the' sole solution provider specifically recommended by our software maker.

Let just say that I must be the first company in the world that had to use True Commerce and MAS90 together for customers like Wal-Mart and Office Depot. Nothing worked well to start, support was hard to coordinate, and even two months into it, we still have to manually keys simple things like discounts and allowances.

As much as I hated our old software and it's quirks, it was 10 times better than what we have now. So to those that land here after surfing for an EDI packing for MAS90, think twice before you jump in with True Commerce. Or at a minimum, email me. I'll give you some thoughts that might save you a few headaches.

Sales Tax – How Much is 10% Down

Now that's we've looked at the tax structure of Neosho, we can start to understand what it means when revenues are up or down during a certain period.  As a refresher, Neosho operates primarily off of a sales-tax revenue base.  The city’s tax rate is 2.5% on retail sales and is a portion of the 7.6% sales tax rate you and I pay on most things we buy in Neosho.

Retail Base

By doing some simple math from the budget, the 2.5% sales tax backs into a taxable retail base of roughly $200 million annually.  That means that between Wal-Mart, Lowe's, and every other business that sells products, food, etc. in Neosho, they collectively sell around $200 million worth of ‘stuff’ every year.

So with those numbers, we can now say that Neosho will collect around $5 million in sales tax this fiscal year ($200 million x 2.5%).  That sales tax goes to pay for everything from light bulbs to bridges, from payroll to pavement, and everything in between.  As listed in the previous blog posting, there are a number of different taxes that add up to the 2.5% total.  Each tax should be accounted for in the books of the city and, typically, cannot be mixed with other taxes or used for purposes other than their statutory description.  (That means that taxes collected for fire protection should not be used for parks and recreation, etc.)

What a Percentage Decline Means in $$

So during times of economic slowdown like we are living through right now, the paycheck the city receives from tax payers (in the form of sales tax revenue) is lower.  If our revenue expectations are down 10%, that number approximates a $500,000 reduction in city sales tax revenues annually. 

And since things like debt payments (which Neosho pays around $1.5 million annually) can’t be cut in the short run, it’s not as simple as just cutting expenses across the board.  Some expenses cannot be cut (banks won’t accept lower payments on debt just because taxes are down) and others areas wind up taking a larger cut to balance a reduction in revenues.

If a city had a blend of sales and property tax, the impact of slower retail sales may be lessened since property taxes don’t typically see the same volatile swings.  That’s a reason I would recommend the city, as some point, look into a blended tax base.  That option falls outside the scope of this discussion.

It’s also important for cities to keep a 2-3 financial reserve in place to help offset the effects of a temporary slowdown in retail sales.  Neosho did not have this level of reserve in place.  That will need to be addressed in the future.

Summary

So now that we’ve looked at revenue sources and some rough numbers on annual revenues, I hope you have a clearer understanding of why any city with a sales-tax-based revenue stream suffers more during a time of economic slowdown.  And without sufficient reserves in place to handle these slow downs, that leads to pay cuts, layoffs, and a number of other issues that we are all living with today.

Next time, we’ll take a look at some sizable capital projects that have occurred over the past few years.  Those include renovations of the Civic/Senior Center, Howard Bush Drive Extension, South Street Overpass, and La-Z-Boy drive.  Specifically, we’ll look at how these projects contributed to the cash-flow problems we’re seeing today.

Until next time…stay warm!

Where the Money Comes From – Sales Tax

Before we can have a full understanding of why the city is facing a financial crisis, we must first have an understanding of taxes – specifically, where tax revenues of the city come from.  For now, I’m only going to focus on sales taxes.  While there are other revenue sources (grants, donations, STP funds, etc.), they are not a primary source of funding city operations.  I will also exclude ‘fees’, such as those from building permits or courts.  Again, these are not primary and don’t typically have a significant impact.

Cities in Missouri typically use two forms of taxes for revenue:  sales taxes and property taxes.  That’s not to say that all cities have a property tax, but a majority do.  As of Jan 1, 2010, Neosho does NOT have a property tax.  That leaves a sales tax as the sole means of tax revenue for the city of Neosho.

Each sales tax available to any city is governed by statue.  Those statues are specific in what the tax may be used for and what the tax rate may be.  Below is a table summary. 

Tax Description	Allowable Rates	Neosho’s Rate
General Sales Tax	1/2%, 7/8%, 1%	1%
Capital Improvements	1/8%, 1/4%, 3/8%, 1/2%	3/8%
Economic Development	Up to 1/2%	1/8%
Transportation	Up to 1/2%	3/8%
Parks/Storm Water	Up to 1/2%	3/8%
Fire Protection	1/4%	1/4%

By statue, the state ‘allows’ cities to collect up to 3.25% in total sales taxes – subject to voter approval.  Currently, Neosho collects 2.5%.  When added to the combined state/county tax rate of 5.1%, you see the more familiar number of 7.6% – familiar because this is the number you’ll see on most receipts for purchases inside the city of Neosho.  (You may see 4.6% on certain food items.  This is because the state reduces their portion of the tax by 3% on such items.  That reduction has NO impact on city taxes.)

Taxes for neighboring cities

While we’re looking at taxes, I’ve included a few rates from other cities around the area.  Some are higher, some are lower, but they are all very close to Neosho’s rate.

City	Total Sales Tax Rate
Neosho	7.6%
Joplin (Newton/Jasper County)	7.725%/7.835%
Carthage	7.388%
Webb City	7.7%
Seneca	7.1%
Anderson	7.725%

Next time, I’ll be explaining how these revenues add up for the city of Neosho and how an economic slowdown impacts sales taxes.  It won’t be the final answer, but it will add to our knowledge of city finances as we work to get a full understanding of why we are where we are.