City Revenues Maintain Trend in December

The City’s 1% General Sales Tax remained strong in December as receipts from the state were up 22.13% over the same month in 2010.  This marks the 6th straight month that revenues have been up double digits vs. the previous year.

Many believe the continued increases are a direct result of the May, 2011 tornado in Joplin. 

Revenues are expected to remain above normal for another 1-2 months as retailers continue to rebuild.  Wal-Mart reopened its 15th and Rangeline location on November 9th.  Any impact on Neosho’s retail traffic from this reopening should show up starting with January or February sales tax receipts from the State.

Pondering the Past

My weekly NDN article published 11/11/11.

There are times in my life that I look back and ponder some decisions I’ve made regarding my career and education. Those would include my decision to stay “close to home” after high school vs. “going off” to college. They would also include my decision to NOT stay in school and pursue an advanced degree of some sort (MBA, Law Degree, etc.) after receiving my Bachelors’ degree from MSSU. But the one I ponder the most was my decision to NOT pursue a career in the US Military and serve my country in one of the branches of service.

Now that’s not to say I didn’t consider it. I did visit with recruiters after high school. I also spoke to some college friends who were in college ROTC programs. But with bad eyes (i.e. not 20/20) and knowing that my vision “issue” would preclude me from pursuing a career as a military aviator, I didn’t even consider other options. Looking back, I wish I would have considered it a bit more.

Yesterday, I had the privilege of presenting the local Missouri National Guard training facility at Fort Crowder with a proclamation recognizing their contributions and service to Neosho and our military. During the event, I got to meet a number of enlisted personnel and officers who work to train our soldiers as they prepare to defend our country and our freedoms around the world. It was both exciting – and humbling – as I (and other elected and Chamber of Commerce members) saw firsthand the technology and resources used to train our troops. We heard about IED’s, saw a trainer for Humvee rollovers, and even experienced simulated combat using an arcade-like training simulator to fire M-16’s and other weapons at the enemy.

In the simulator, ten of us took on the task to battle armed enemy forces coming from buildings. While the simulator didn’t tell me how many times I was shot and injured (or worse) as I defended my position, I did have the highest kill percentage of the group (my good friend and military veteran Sy Werner was right behind me.) While I don’t know if my score was “good”, 37% of the enemies I engaged were hit. For me, as someone who never thought I’d have the opportunity to fire a round from a military weapon, I was pleased. But more than that, it gave me a renewed respect and admiration for all of the men and women in our military who have, are, or will work to protect the freedoms and the country that we value so much.

Thank you to everyone at Fort Crowder (especially Chief Shields) for providing me with an experience I will remember for a lifetime. We have a great group of men and women working right her in Neosho who directly impact the lives of our soldiers all over the world. It’s a pleasure to know them. It’s a pleasure to honor them. And it’s reassuring to know they and many others are there for us – 24/7 – sacrificing their lives to protect, serve and secure our country.

Happy Veterans Day! Until next time, stay the course and God bless!

Sales Tax Revenues Remain Strong

For the first two months of FY2012, Neosho’s sales tax revenues are up 21% over the same time last year.  For the month of November, 1% general sales tax revenues were $156,247.12 (compared to $128,397.72 in 2011).

Sales tax revenues have remained strong since July of last year.  Conventional wisdom says revenues are up due mainly to the impact of the May 2011 tornado in Joplin.  The impact includes both the temporary displacement of families to our area along with the disturbance to available retail outlets in Joplin – primarily the Wal-Mart and Home Depot stores located on Rangeline Road.

That Water (Billing Policy) is Refreshing!

I saw some jaws drop Tuesday night as our new Finance Director, Jane Obert, made her first formal presentation to your city council. What went wrong you ask? Honestly? Absolutely nothing! It was one of the most professional, concise, to-the point, factual presentations that I’ve ever seen brought to your city council. And it’s yet another example of how we are changing the tone of government and working to improve oversight and customer service in our city.

Among other things, Jane’s report focused around her concerns that our city’s water billing policy was simply customer UNFRIEDLY! Specifically, until now, if your water bill due date was on a weekend or a holiday, the city expected you to pay it EARLY. That policy (which I complained about over 2 years ago to no avail) was certainly contrary to most business policies and practices today (including the IRS!) And thanks to Jane and her “common sense” approach this issue, that policy is no more!

Starting with bills due on October 15^th, 2011 (which was a Saturday), if the due date falls on a non-business day (i.e. weekend or holiday), you as a water customer now have until the end of business on the FOLLOWING business day to pay your bill. In other words, if your bill was due on a Saturday, you now can pay it the following Monday without penalty. We’ve also increased the frequency of when our payment drop box is checked for payments. Effective immediately, all payments dropped by 4:00pm will be applied the same business day. Again – a change that some would say is a “no brainer”!

So to those who are watching, make note that we are following through on our commitments to improve the service offered by your local city government. When we find something that is contrary to the conventional wisdom, we’re now working to change whatever that “something” is. If we identify areas that common sense would tell you need to be improved, we’re improving them. And we’re doing it for no other reason than because it’s the right thing to do.

If you’re out and about at the Neosho Wildcat football game tonight, make a point to stop and say hello. I’ll be working concessions during the 2^nd half at the main concession stand. And to our Wildcat football team, good luck as you battle the Tigers from Ozark! It should be a great game.

Until next time, stay the course and God Bless!

Officials Apparently Knew About Problems at Solyndra

Below are a few paragraphs from today’s NY Times article on the ongoing investigation into the government’s loan guarantees to Solyndra.  They are very telling as it relates to how the government used wasted millions in tax payer funds.  Emphasis is mine.  The entire article can be found here.

• “One of our solar companies with revenues of less than $100 million (and not yet profitable) received a government loan of $580 million,” the investor, Brad Jones, an executive at Redpoint Ventures, wrote in December 2009 to Lawrence H. Summers, then the president’s chief economic advisor, referring to Solyndra. “While that is good for us, I can’t imagine it’s a good way for the government to use taxpayer money.”
• “The memorandum, prepared for Democrats who serve on the House Energy and Commerce Committee, details how officials at the White House considered scaling back or even terminating the loan guarantee program, because of concerns over how it was being managed. The dispute went all the way to the president, the memo says, but there is no evidence that he made any changes in the structure of the loan program.”
• “The most alarming issue to the White House official was growing evidence that Solyndra, which filed for bankruptcy last month, was headed toward a collapse even in early 2010. It led the Office of Management and Budget officials to predict widespread problems with companies getting loan guarantees.”
• “What’s terrifying is that after looking at some of the ones that came next, this one started to look better,” said one April 2010 e-mail, referring to the Solyndra decision, and others that followed. “Bad Days are coming.”

Town Hall Turnout Improves – Was it the Food?

Thanks to everyone who came out last night to the quarterly Town Hall meeting held at the Civic Auditorium.  Absent meetings last summer during the discussions of a property tax increase, last nights meeting was one of the best attended so far.  Was it the meat and cheese trays from Family Market?  Maybe.  Was it the cookies from SC Bakery?  Probably!

But regardless of the reasons, thanks to everyone who came out.  While I can’t confirm the menu for December, Big R’s is a top contender!

Having said all that, the turnout was not what was typical in the past – past meaning prior to my election in 2009.  In February of 2009, the Neosho Daily reported that 101 people turned out for the first-ever “State of the City” address by then mayor Howard Birdsong.  Being in attendance at that meeting, the crowd makeup was much different.  There were a number of business owners there.  Chamber members.  Realtors and bankers too.  Not so last night.

But regardless of the makeup, it was a good time for all and I appreciate all who took the time to make it by and hear what’s happening in your city.

Durable Goods Orders Down in August

New orders for manufactured durable goods in August decreased 0.1 percent, to $201.8 billion. Excluding transportation new orders also declined 0.1 percent. Overall shipments fell 0.2 percent, while capital goods shipments increased 2.7 percent. Unfilled orders and inventories both rose 0.9 percent.

• Advance Report on Durable Goods (August 2011).pdf

Business Week Article Questions “Big Box” Subsidies

An on-line article from Business Week questions whether subsidizing Big Box retailers for development results in net gains in jobs and overall retail increases.

One paragraph reads as follows:

“A recent study, however, indicates that subsidizing retail development produces neither job gains nor new tax revenue. Earlier this year a consortium of local governments in the St. Louis metro area found that cities and counties in the region had diverted more than $5.8 billion in public tax dollars to finance private development. More than 80 percent of these funds supported the construction of new chain stores and shopping centers.

Yet the region has seen virtually no economic growth. “The number of retail jobs has increased only slightly and, in real dollars, retail sales per capita have not increased in years,” the authors of the study wrote, noting that many of the region’s municipalities are now broke. According to the study, more than 600 small retailers have closed in the St. Louis metro area. The resulting job losses have offset the job gains from the new development.”

The link to the entire article in here.

Neosho’s MAP Scores Continue Upward Trend

While some schools around the area were down a bit on MAP scores, Neosho continued to show improvement over their previous year’s numbers.

In 2011, math improved from 57.1% to 58.9% while Communication Arts went from 56.2% to 58.0%.  Those numbers represent the % of students scoring as proficient or better.

Neosho’s scores are higher than Carthage in both areas.  Neosho and Carl Junction are split with Neosho leading in Math while CJ leads in Comm Arts.  Both Webb City and Joplin remain higher than Neosho, but those two schools saw their there scores DROP vs. 2010. 

You can check out all of the scores at the DESE website. 

Oh How Things Can Change In One Year

My Friday column in the NDN:

As I mentioned to you last week, your city council is now reviewing the 2011-2012 operating budget in preparation of final approval sometime in September. This past Tuesday, the council and city directors had our first chance to have open discussions regarding a majority of the budget plans for next year. I’m very pleased to say that things are looking far better than they did just 12 months ago.

Most notable to me is the first planned pay raise for our employees since 2008. The planned 3.5% cost-of-living increase for 2012 is in contrast to a 0% increase last year and a 3.75% DECREASE in 2009. We’ve got a great group of folks who work both in the public eye as well as behind the scenes to keep our city functioning. They are very deserving of this increase.

Other notable highlights include the planned addition of two more police officers to our force in October. Combine that with the two officers added last month and we’re making some good headway to restore a force that saw almost half of its headcount cut just one year ago. Our fire department should also see the final two firefighters return to the city’s payroll in 2012. Thanks to the 24-month SAFER grant, the fire department is now back to full force.

One last note of good news is that overall sales tax revenues for the city continue to show some positive, albeit slight, increases from this time last year. While the overall impact will be small, it’s a welcomed sign that things are slowly improving and the local economy is doing better.

As with any budget, there are some challenges on the horizon. Golf course revenues are lagging behind where they need to be. Options are still being explored to help that cash drain to the city, but there will be no quick or easy fix. We also have to plan for the end of the SAFER grant funding in May, 2013. That grant allowed us to restore our fire station staffing, but the city will once again be responsible to start paying those salaries 18 months from now. We’ve got time to plan, but the $300K+ annual cost is a sizeable amount that will require some hard work to cover. Capital needs for fire truck and police car repairs/replacements are also on the list for 2013. Our crews have done a great job keeping our equipment working longer than its expected lifespan, but even the best kept equipment will have to be replaced at some point.

Overall, it was a good session and a positive change. Your city staff has worked hard to keep costs low and expenses under control. We’ve got a long road ahead, but the financial disaster of 2009 is now in our rearview mirror and I’ve very pleased to tell you that we are heading in the right direction once again!

Until next time, have a great week. Best of luck to our football boys tonight against Bolivar in their home opener. GO WILDCATS!

Joplin Sports Authority Notes Positive Economic Impact

The Joplin Sports Authority released their 3rd quarter results and they were impressive.  Economic impact for Joplin was posted at $504,675 for the quarter with 5,536 visitors coming into Joplin for events.  Major events included baseball and softball tournaments as well as a tumbling and trampoline competition.

For the year, the JSA shows an overall economic impact of $1,073,944 to the area.  Given JSA’s spending of $200,155 during the same period, they show an ROI of 4.4 (or 436.6%) on their investment.

The full report showing the positive impact of their sporting events can be found here.

Small, Locally-Owned Businesses Better for Economic Development

From www.dailyyonder.com

Researchers at Penn State University have found that smaller, locally-owned businesses are better for growing incomes in a county than the presence of larger companies or big box stores owned outside the county.

Counties with more small, locally-owned businesses have faster growing incomes than those places with big box stores and large firms owned by those outside the community. Here is a picture of the main street in Red Lodge, Montana.

It does matter whether a business is locally owned.

Researchers at Pennsylvania State University have found that counties with more small, locally owned businesses have stronger economic growth than communities with larger businesses owned by outsiders. "Local ownership matters in important ways," said economist Stephan Goetz who was co-author of the study with David Fleming, a Penn State graduate student. "Smaller, locally owned businesses, it turns out, provide higher, long-term economic growth."

Larger firms owned by people outside a county depress growth, the researchers found.

Goetz and Fleming looked to see if per capita income growth in counties was affected by the size and ownership of local businesses. The two studied U.S. counties during the period from 2000 to 2007.

The effect of having locally-owned, small firms (with between 10 and 99 employees) on a county's economy was significant. There was a strong, positive relationship between the presence of smaller, locally-owned firms and faster growth in incomes.

The presence of larger firms owned by those outside the county had the opposite impact. Those counties had slower growth in incomes. Goetz and Fleming found that this impact extended to big box retail stores, such as Walmart and Home Depot.

"Although these types of (larger, non-local) firms may offer opportunities for jobs, as well as job growth over time, they do so at the cost of reduced local economic growth, as measured by income," Goetz and Fleming wrote. "Small-sized firms owned by residents are optimal if the policy objective is to maximize income growth rates."

One of the reasons locally owned firms are better for county economies than big box stores and larger, out-of-town corporations is that these larger firms outsource many services that the smaller companies buy within the community, Goetz explained. They use local accountants and wholesalers while big firms do this work themselves.

Small businesses and local start-ups not only buy locally, but they tend to spur innovation and productivity within the county.

"This is really a story about start-ups," said Goetz. "Many communities try to bring in outside firms and large factories, but the lesson is that while there may be short-term employment gains with recruiting larger businesses, they don't trigger long-term economic growth like start-ups do."

Goetz said his findings might provide a better strategy for local economic development officials. Encouraging local businesses would be better for growth than recruiting larger firms from outside the county.

"We can't look outside of the community for our economic salvation." Goetz said. "The best strategy is to help people start new businesses and firms locally and help them grow and be successful."

Goetz is the director of the Northeast Regional Center for Rural Development. The Goetz and Fleming research appears in the Economic Development Quarterly.

Pay Study Shows Sum Increases Planned for 2012

As the city considers the new budget and giving employees their first raise (vs. cuts) in 2 years, I thought this article was timely.

From the AP:

NEW YORK (AP) -- A new survey says salaried U.S. workers can expect another year of modest raises in 2012.

After increasing salaries by 2.6 percent this year and last year, companies are planning a 2.8 percent bump in 2012, benefits and human resources consultancy Towers Watson reported Monday.

That's somewhat smaller than raises in the last decade. From 2000 to 2006, the year before the Great Recession began, salaries rose an average 3.9 percent for workers who were not executives.

And the modest bump may not help add much buying power for shoppers. In the 12 months through July, prices for consumers have risen 3.6 percent, according to the government's latest calculations.

Salary increases have been small, even though many companies are sitting on huge cash stockpiles. They're being conservative with permanent salary hikes because of uncertainty about the economy and memories of the deep cuts during the recession, said Laura Sejen of Towers Watson.

Because of worries about the economy, companies are trying to avoid "fixed costs," such as permanent payroll increases, Sejen said. Hiring has also been tepid this year. More than 9 percent of the country's workers, or 13.9 million people, are unemployed.

Instead, companies "are trying to pure more emphasis on the variable components of compensation," she said. That means bonuses, which make up a far bigger chunk of total pay for executives than for other salaried workers -- 41 percent this year, versus 10 percent.

Salaries for executives are also expected to rise 2.8 percent next year, the survey said.

The human resources company conducted the survey in June and July, polling 773 U.S. companies.

My Softball Girls for 2011

I’d forgot to post a picture of my 2011 Marco Softball girls team.  We had a great year.  Proud of all of them!

August Sales Tax Up – Joplin Tornado Likely Cause

The 1% sales tax deposits received this week from the state were up 19.25% over the same time last year.  Monthly receipts were $151,415.55 (vs. 126,970.44 in 2010.)  The major increase is likely due in part to the May tornado in Joplin as retail sales were pushed to outlying areas not impacted by the storm.

For the year, the 1% sales tax is 3.28% ahead of last year at $1,871,794.74.

One month remains for sales tax collections in this fiscal year which ends Sept. 30.

Not In Our Town!

Saturday morning’s arson fire at the Neosho city pool has raised the stakes of taking action against the criminals who are causing havoc in our town. The city is committed to find and prosecute those responsible to the fullest extent of the law. For me, I’m doing my part by adding a $1000 to the reward pool for information that leads to the arrest and conviction of the coward or cowards who did this.

As an elected official, I’ve grown accustomed to reading about the occasional break-in here and some vandalism there, but to set fire to a public building that serves all of Neosho was a cowardly act. And this fire doesn’t just shut down a pool for a few days. It impacts everyone in our town in one way or another. Whether it’s the kids looking for a few more days of summer fun before school, the lifeguards seeking a few more weeks of pay for their summer job, or the individual tax payer who will now have their taxes spent to repair a building needlessly damaged…we are all impacted.

But for many, it goes beyond that. It begins to cross an invisible line of tolerance and invades the space that we call “home”. As someone who was born in Neosho, I’m very angry about the events of Saturday morning. But I take solace in that our Neosho PD will find those responsible. I call on everyone in this town who has seen enough of the crime and vandalism in our parks and across our city to stand together and say “no more”. Whether it’s a dime or a dollar or a strong word of encouragement, please contribute to the efforts to find these cowards and bring them to justice. Take and stand and send a message – “NOT IN OUR TOWN!”

Debt Load is Substantial…But!

After Monday night’s audit, I’ve fielded a number of questions about the city’s debt.  And it’s been fairly easy to discuss because as a council member (and your Mayor), debt discussions have been happening in our city for over a year – long before the audit confirmed our concerns about issues such as the golf course.

Here are a few facts and comments I have on the debt issue and some clarifications that might help you understand more of what that debt load is and what it means to you as a citizen.

As of today, the city has a debt load of approximately $14.27 million (that’s the principal balance today).  That number comes from the debt schedules for the six (6) debts currently being paid by the city.  This debt load does NOT include any Water/Wastewater projects because that debt is covered and paid for by water/sewer collections.

The first instinct (mine included) is “WOW – that’s a lot of debt!”  Well, it is…but. (There always seems to be a “but” in politics).  Of that $14.27 million debt, $10.18 million is supported (and currently being paid on time) by sales tax revenues…voter-approved sales tax revenues.  A big chuck of that (approximately $8 million or 80%) is for recent voter-approved projects like the Civic Center, Senior Center, South Street Bridge, and the Howard Bush Drive Extension.  As of now, those projects ARE fully supported by the sales taxes being collected and are NOT a draw on the city’s general fund.  (Let’s ignore for a moment that the projects had overruns and part of the street projects were never completed –that’s a separate and important discussion, but outside the scope of looking at the debt load today.)

To cut to the chase, $10 million of our debt is current financed by sales taxes.  As long as sales taxes remain at the levels they are, we’re good on that portion of the debt.

That leaves us with just over $4 million of debt that is the real headache – broken down, it is $3.4 million for the golf course and $650K for the airport.  This debt is (in a perfect world) supported by fees from things like hangar rent and golf course fees.  It’s when that perfect world becomes not so perfect (and that’s where we are today) that issues arise. 

It’s no secret that golf revenues are down.  It’s no secret that the golf course has NEVER covered its full load of debt since adding 9 holes of play in the early 2000’s.  It’s no secret that for the past decade or so, our general fund has spent funds it could otherwise use elsewhere (including for police and fire) to make those payments!  Combine that with a financial crisis caused by the 2008-2009 fund “borrowing” that occurred under the previous administration and we’re in a really tough spot.

The good news is that we’re really only having to focus on $4 million of debt right now – not the entire $14 million.  The good news is overall sales tax revenues have rebounded in the past few months and are slightly ahead of last year’s collections.  The bad news is we’ve cut some essential services and cut pay and staffing to ensure we can keep paying on that $4 million debt.

In the long run, cuts in pay and services cannot continue.  Our city employees do a great job.  They deserve a fair wage for a day’s work.  Our staffing in police MUST come back up.  Our fireman MUST stay on the job after federal assistance runs out in 2013.  Streets must be better maintained.  Parks must be mowed.  Equipment and facilities must be maintained.  Worn our equipment must be replaced.  It all costs money…money that we currently don’t have but will NEED to keep our city functioning years into the future.

I hope these comments have been helpful.  I could spend the next hour or more laying out more detail, but that’s for another day and another post.  Until then, know that your city council is working hard to find solutions to these issues.  Know that the past mismanagement is no longer happening in our city.  We’ll never be perfect (no one is) and it’s easy to criticize when mistakes happen, but your city is back to being run like a city should be run – open and honest communication – proper council oversight – decisions based on fact and the overall good of ALL of Neosho.

It’s an honor to serve.  I love our town.  I hope you agree we’re finally starting to head in the right direction.

Debt Concerns “No worry” With China

Despite dire predictions of a global market crash this morning due to the lack of an agreement on the US debt limit, China is taking a much more positive view of things.

Xia Bin, a member of the central bank’s monetary policy committee was quoted as saying "Don't worry too much about it. The United States will have to issue more debt and issue more currency".  Xia went on to say that the debt talks had gained too much media attention.

Currently, the US debt ceiling is capped at $14.3 trillion.  China is believed to hold 70% of its reserves in US dollar assets. 

As of 1:30pm CDT, the DOW was off just under 50 points.  The NASDAQ was down under 4 points.  It appears the concerns were very-much overblown based on the market’s trading today.

China GDP Growth Rate Continues Strong Pace

From ChinaDaily

But report notes inflation, property bubble and credit quality problems

WASHINGTON - China will continue to drive global economic development with an estimated growth rate of 9.6 percent this year, despite signs of an economic slowdown, the International Monetary Fund (IMF) said in a report issued on Wednesday.

China, however, still faces a number of risks, such as high inflation, a precarious property bubble and a decline in credit quality due to an excessive amount of bank loans, according to the annual IMF report on China.

A key gauge of manufacturing activity showed that the factory sector shrank for the first time in a year in July.

The HSBC Manufacturing Purchasing Managers' Index fell below 50 for the first time since July 2010. Analysts said it signaled a slowdown in growth as a result of tightened monetary policy. When the index is above 50 it signals expansion, when beneath it, contraction.

"Industrial growth is expected to decelerate in the coming months as tightening measures continue to filter through," said Qu Hongbin, chief economist for China and co-head of Asian Economic Research at HSBC.

China's economy grew 9.5 percent in the second quarter, exceeding expectations and easing concerns of a hard landing amid tight monetary policies to curb inflation.

The better-than-expected economic data for the second quarter gave some economists grounds for optimism over the prospects for China's economic growth.

"We raised our 2011 GDP growth forecast to 9.5 percent from 9.4 percent," Sun Chi, an economist at Nomura Securities, said.

According to the IMF, China has increased its sway over the global economy and holds "an important stake for the world in its stability".

The fund's executive board reached these conclusions after some of its members visited China between May 23 and June 9 to collect economic and financial information and hold discussions with officials, such as Vice-Premier Wang Qishan, Minister of Finance Xie Xuren and People's Bank of China Governor Zhou Xiaochuan.

The visit focused on China's macroeconomic outlook, the potential for a property bubble and factors endangering the banking system, said Nigel Chalk, senior adviser at the fund's Asia and Pacific Department, who led the IMF visit to China. He spoke via a conference call before the fund released the report on China.

Chalk said his team noted that a great deal of progress had been made in China in changing the GDP-based growth model while expanding the social safety net.

Inflation will start to "move to a downward trend" toward the end of the year, Chalk said.

He Jianxiong, IMF executive director for China, and Zhang Zhengxin, senior adviser to the executive director, said China's key challenges are to "balance the need for containing inflation, sustaining strong growth, and accelerating the transformation of the growth model.

"The task is complicated by the difficult external environment," He and Zhang said in a statement.

Both He and Zhang took issue with IMF assessments that the yuan is undervalued.

Both argued that the IMF report is based on "the assumption of unchanged policies and a constant exchange rate" and "ignores the trend of exchange rate movement and the far-reaching legally binding rebalancing measures to be implemented in the medium term".

Chalk, however, said that a stronger yuan is necessary for reform and growth. "We do believe that China's currency needs to be stronger," Chalk said.

Reform of the yuan exchange rate is part of a "package of reforms", Chalk said, that will make China's financial sector more market-oriented and better integrated into the global financial system.

Currency appreciation is important in efforts to rebalance the economy, Chalk said.

But he also noted that China's financial reform is a "risky undertaking" and "needs to be managed carefully".

Chen Jia in Beijing contributed to this story.

China Daily

China Currency Rates Continue to Drive Up Import Prices in US

From the ChinaDaily

BEIJING -- The renminbi (RMB), China's official currency, set a new high for the second day to a ratio of 6.4536 yuan per US dollar on Thursday.

It indicates a 22-percent increase after the country launched exchange reforms on July 21, 2005. The ratio was 8.11 yuan per US dollar when the reforms were launched six years ago.

The RMB, or yuan, has appreciated in an unilateral way and anticipation on this is attracting more capital inflow, burdening domestic liquidity management, said Chen Bingcai, a researcher with the National School of Administration.

The yuan's unilateral appreciation has brought challenges such as global payment imbalances, soaring foreign exchange reserves, inflows of speculative "hot money" and high trade costs for exporters.

Troubles brought by the unilateral appreciation are more serious than those caused by pegging the yuan to the US dollar, said Lu Zhengwei, a senior economist with the Industrial Bank.

The yuan's real effective exchange rate (REER) went up 14 percent in the past six years, far below the yuan's appreciation against US dollar, according to the Bank for International Settlements (BIS).

The yuan's REER currently stands at 116.31, up from 101.42 when China launched the exchange reforms six years ago, according to the BIS. Meanwhile, the ratio of yuan against the US dollar rose 2.45 percent this year, but the yuan's REER actually depreciated 3.02 percent.

The REER index of the yuan is used to measure the yuan's external competitiveness vis-a-vis the currencies of the country's major trading partners and competitor exporter countries.

A hike in the REER index would mean the currency is appreciating on a real, trade-weighted basis, suggesting a loss in external price competitiveness.

China faces risks from inflation and a possible boom and bust in real estate prices and should allow its currency to rise to promote economic stability, the International Monetary Fund said in an annual review on Wednesday.

It said a stronger yuan is "a key ingredient to accelerate the transformation of China's economic growth model."

China abandoned a decade-old peg to the US dollar by allowing its currency to fluctuate against a basket of currencies on July 21, 2005.

The reforms were suspended in a bid to fight the global downturn in 2008. The yuan exchange rate again was pegged to the dollar at a ratio around 6.83 from September 2008.

The peg was lifted on June 19, 2010, when the central bank announced further yuan exchange rate formation mechanisms.

In China's foreign exchange spot market, the yuan is allowed to rise or fall by 0.5 percent from the central parity rate each trading day.

The central parity rate of the yuan against the US dollar is based on a weighted average of prices before the opening of the market each business day.

TDD Audits Note Troubles

 

The article below is from the Columbia Daily Tribune on Wednesday, March 30, 2011.  While it’s a few months old, it does a good job highlighting issues with TDD’s around the state.  The key item I focused on – competitive bidding.  After all, this is public tax money.  Competitive bidding assures that taxpayers are getting the most for their money.  The problem as I see it is that these TDD’s are run by people not familiar with the requirements of political subdivisions spending public money.

Don’t get me wrong, I’m not against TDD’s, but they must learn the rules and follow them.

 

Auditor notes TDD troubles

Schweich cites overspending.

By Jacob Barker

Wednesday, March 30, 2011

Missouri Auditor Tom Schweich released his annual review of the state’s Transportation Development Districts yesterday, again noting problems with competitive bidding, budgeting and reporting finances to the state.

Each statewide audit of the districts since the first one was conducted in 2006 has been critical of the quasi-public entities. The districts, known as TDDs, are established via a petition in the courts and impose a tax on retail sales in their boundaries to pay for road and site improvements. Almost all the districts are formed by the property owner or developer of a commercial venture and are governed by a public board, though members usually are appointed by the owner or developer.

Supporters say the districts finance projects that would not otherwise be built. For instance, the Stadium widening project is financed in part by three TDDs.

Columbia has 14 TDDs that charge a half-percent sales tax at nearly every large shopping center in the city, including the Columbia Mall, all three Walmarts and the Bass Pro Shops.

The report issued by Schweich surveyed 16 selected TDDs, including the Gans Road and Highway 63 TDD in Columbia, and noted many of the same problems as his predecessors. Statewide, there were 154 TDDs established as of December 2008. Through their lifespans, which can be as long as 40 years, they had total estimated project costs of $1.5 billion and total estimated revenues of $1.8 billion, according to the audit.

The report noted many of the audited districts’ budgets contained math errors, overspent or weren’t properly documented. In some cases, the report noted the auditor’s office was not aware when a new TDD was formed, highlighting the difficulty of overseeing public money in the hands of private developers.

Missouri law requires the state auditor to review each TDD once every three years and for each TDD with financial activity to submit a financial report to the state auditor. But 21 TDDs did not file a report with the auditor on time in 2007 or 2008, including two Columbia districts. The Northwoods TDD at Smiley Lane and Range Line Street did not file a report in 2008. The CenterState TDD, on property owned by Columbia Bass Properties, did not file a financial report in 2007 or 2008. Representatives of the districts could not be reached by deadline.

The audit noted the Gans and 63 TDD “overspent its 2008 and 2007 budgets by approximately $59,000 and $4.2 million, respectively.” The report also said a formal budget resolution was not approved authorizing the expenditures.

The Gans and 63 TDD was formed in 2006, and the land it covers was later acquired by Bristol Development Group, an entity owned by now-deceased Columbia developer Jose Lindner and his son, Jay Lindner. The Lindners had plans for a mixed-use development at the site and helped finance the Gans Road interchange built in 2008, planning to get repaid with TDD revenues.

The TDD had $4.2 million in debt obligations to Bristol Development, but the Lindners lost that property in foreclosure in August. Those notes were used as collateral in a financing agreement with Sapp-Bristol Management Group, led by Elvin Sapp, according to a legal notice. That company bought some of the land at Gans and 63 at the foreclosure sale in August and now holds the TDD notes.

But because nothing was ever developed at the site, there is no revenue to pay off the notes. Sapp’s attorney, Bruce Beckett, said the company is working toward settling those obligations. A legal notice said they are to be sold at auction April 11.

Attorney Craig Van Matre, who works with many of the city’s TDDs, said he is working to dissolve the Gans and 63 TDD. He said once the district’s debts are resolved the district should be able to dissolve.

In January, Columbia’s 14th TDD was formed on land owned by Red Oak Investment Co. across from Grindstone Plaza, according to court filings. There is no development there now, though last summer the company won approval from the Columbia City Council to rezone the land to commercial.

Another Chinese Translation That Fell Short

This was in a factory I visited today.

July Tax Numbers Strong

This month's 1% sales tax receipts from the state showed a strong gain compared to the same time last year. Revenues were up 12.2% in July.

YTD, sales tax revenues are up 2% over last year.

New Unemployment Claims Remain Above 400K

In the week ending June 18, the advance figure for seasonally adjusted initial claims was 429,000, an increase of 9,000 from the previous week's revised figure of 420,000. The 4-week moving average was 426,250, unchanged from the previous week's revised average of 426,250.

Unemployment Claims Remain Over 400K

In the week ending June 11, the advance figure for seasonally adjusted initial claims was 414,000, a decrease of 16,000 from the previous week's revised figure of 430,000. The 4-week moving average was 424,750, unchanged from the previous week's revised average of 424,750.

New Residential Construction Shows Some Gain

Building permits in May 2011 were 612,000, up 8.7% from April and up 5.2% from May 2010. Housing starts were 560,000, up 3.5% from the prior month, but down 3.4% from the prior year. 

PPI Date Released for May 2011

PRODUCER PRICE INDEXES –MAY 2011

The Producer Price Index for finished goods rose 0.2 percent in May, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This advance followed increases of 0.8 percent in April and
0.7 percent in March. At the earlier stages of processing, prices received by manufacturers of intermediate goods climbed 0.9 percent in May, and the crude goods index declined 4.1 percent. On an unadjusted basis, prices for finished goods moved up 7.3 percent for the 12 months ended May 2011, the largest year-over-year gain since an 8.8-percent advance in September 2008.

Initial Claims Rise

In the week ending June 4, the advance figure for seasonally adjusted initial claims was 427,000, an increase of 1,000 from the previous week's revised figure of 426,000. The 4-week moving average was 424,000, a decrease of 2,750 from the previous week's revised average of 426,750.

Neosho’s June Tax Receipts Up

Neosho’s 1% sales tax receipts were up 1.33% over June of 2010.  This marks the third straight month that revenues were up over the same period last year.  For the first 9 months, revenues are up 0.72% over 2010.  Total 1% tax revenues stand at $1,497,754.36 for the year.

Amanda Franklin Tribute Video

Not much more so say about that....

Missouri Supreme Court Reaffirms User Fees are Not Taxes

Supreme Court Hancock Decision, Census Issues, & Auditor’s TDD Report

Missouri Supreme Court Reaffirms User Fees are Not Taxes – In a case in which CVR acted as counsel to the Missouri Municipal League as amicus curiae, the Missouri Supreme Court issued a unanimous decision in Arbor Investment Co. LLC v. City of Hermann, SC 91109 (May 31, 2011) affirming the City’s right to impose utility rates above actual costs and make transfers of excess utility revenue to the City’s general fund. 

The City prevailed before the trial court under the 5-part Keller test against allegations that the City’s utility charges were grossly in excess of its costs of providing services, and that transfers of portions of utility revenue to the City’s general fund was evidence that the utility charges were a hidden tax in violation of the Hancock Amendment. However, the Court of Appeals (E.D.) reversed and appeared to change the Keller test to one dispositive factor by holding that if “the object of the fees is to fund the City’s general revenue, then this constitutes a violation of Hancock…” 

However, the Supreme Court affirmed the trial court and specifically rejected the appellants’ and AG’s proposed change to the Keller test that would make the utility charges a tax when the utility is a sole provider and charges anything above cost.  The Court reaffirmed that a user fee is not subject to Hancock, noting that while a user fee can become subject to Hancock if the charge is “so excessive as to be effectively unrelated to the service being provided,” even a charge double actual cost, on its own, is not enough to convert the fee to a tax.  The Court held that a City may charge above costs to cover the overhead of delivering that service, and if the fees are unpopular, the remedy is to vote those persons setting the fees out of office. 

In the end, the decision upholds the law as understood by most cities and keeps the current user fee v. tax analysis intact – averting the widespread adverse effects on municipal budgets across the state had the Court of Appeal’s decision been allowed to remain in place. 

Job Creation Weak/Unemployment Rate Rises

From the Washington Post:

The U.S. economy added 54,000 jobs in May, the fewest in eight months. The unemployment rate rose to 9.1 percent.

http://link.email.washingtonpost.com/r/MEPMRJ/9ZKXKG/KRQH6X/DHZ2CX/4NXNU/SN/h

For more information, visit washingtonpost.com

Marco Girls Start Off Strong

The 2011 YMCA summer ball program started off strong for Marco’s 9-11 girls team.  Last night, Marco’s team beat Griffith Motors 10-6 in 3 innings.  Above, Kyndall Davidson (daddy’s girl!) looks on moments after getting 1 of her 3 hits for the night. 

Shuttle/ISS Overhead Sat and Sun

The shuttle and ISS will make an overhead pass tomorrow (Saturday) morning starting at 4:34am. The path will be from the SSW to the ENE. At its peak, they will reach a 56 degree elevation. Both will be in view for 2 minutes.

The next pass will be Sunday at 4:57am from the W to the NNE. That pass will last 3 minutes.

Enjoy!

GDP Growth Slows in Q1 2011

Real gross domestic product (GDP) grew at an annual rate of 1.8% in the first quarter of 2011, according to today’s second estimate. This follows a growth rate of 3.1% in the fourth quarter of 2010.

• Gross_Domestic_Product_First_Quarter_2011_Second_Estimate_.pdf

First Time Unemployment Claims Rise

In the week ending May 21, the advance figure for seasonally adjusted initial claims was 424,000, an increase of 10,000 from the previous week's revised figure of 414,000. The 4-week moving average was 438,500, a decrease of 1,750 from the previous week's revised average of 440,250.

City’s “Lack of Efforts” Simply Inaccurate

Despite what you may have heard from some that don’t know the facts, the city of Neosho has made several contributions of labor and equipment to the relief efforts in Joplin over the past few days.  As early as 10pm Sunday night, I personally observed Neosho Fire and Public Works employees and equipment working the streets of Joplin as organized recovery efforts got underway.

As it stands today, fire crews from Neosho are NOT being requested to assist with efforts.  Neosho’s fire crews are currently planned to rotate in as other crews from stations farther away return home.  The determination of “when” that rotation happens will be up to those in Joplin in charge of the operation.  But WHEN that request comes, I can assure you Neosho WILL again react and assist our neighbors to the north.

My personal thanks go out to those who volunteered to go.  We’re proud of what you did and what you continue to do.  Our past and current struggles pale in comparison to what those in Joplin are coping with today.

Durable Goods Orders Down

New orders for manufactured durable goods in April 2011 decreased 3.6% to $189.9 billion. Excluding transportation, new orders fell 1.5%. Overall shipments declined 1.0% to $194.9 billion. Capital goods shipments fell 1.9%. Unfilled orders rose 0.2%. And inventories increased 0.9% in April 2011.

• Advance_Report_on_Durable_Goods_April_2011_.pdf

Severe Weather Likely Again Tonight

Above is the latest graphical representation of where significant weather is anticipated this afternoon and evening.

NOAA's Storm Prediction Center typically issues a high risk for severe t-storms only when a major severe weather outbreak is anticipated. This often includes a concentration of strong tornadoes.

TOR:CON values for Tuesday include:

• KS southeast – 6
• MO – 5
• OK north-central – 8
• OK northeast - 5 to 6

TOR:CON Value Descriptions

• 8: High probability of a tornado

• 6: Moderate possibility of a tornado

• 4: Low chance of a tornado nearby, but hail and/or strong wind gusts possible

Latest Joplin Assistance Info

Volunteer Ozarks Red Cross
http://www.redcross-ozarks.org/volunteer/

Safe and Well from the Red Cross
https://safeandwell.communityos.org/cms/index.php

Missouri state government assistance, shelter information
http://1.usa.gov/lk992f

Joplin, Mo., Tornado Recovery Facebook page
http://www.facebook.com/joplinmo

City of Joplin on Facebook
http://www.facebook.com/CityofJoplin

Joplin Tornado Relief Drop-off
The attached link is a spreadsheet showing locations to drop-off
donations throughout the Four States.
https://spreadsheets.google.com/lv?hl=en_US&key=t7FpXE61_2vBAn9fQ_QkQKA&toomany=true#gid=0

Residential Sales Down 23% from Last April

Sales of new single-family homes in April 2011 were 323,000 at a seasonally adjusted annual rate, up 7.3% from the revised March level but down 23.1% from their year-ago level.

• New_Residential_Sales_April_2011_.pdf

Weekly Initial Claims Down, but Average Up

From the Dept. of Labor:

In the week ending May 14, the advance figure for seasonally adjusted initial claims was 409,000, a decrease of 29,000 from the previous week's revised figure of 438,000. The 4-week moving average was 439,000, an increase of 1,250 from the previous week's revised average of 437,750

Permits/Housing Starts Down Again

From the Economics and Statistics Administration:

Building permits in April 2011 were 551,000, down 4.0% from the March revised rate and 12.8% below the revised April 2010 estimate. Housing starts in April 2011 were 523,000, 10.6% below the revised March estimate and 23.9% below the revised April 2010 rate.

The link to the full report is below.

New_Residential_Construction_April_2011_.pdf

Joplin Named Top Missouri City for Job Growth

From today’s JTSB:

The city of Joplin took a high honor in the May 2, 2011 issue of Forbes Magazine when it was recognized as the top Missouri city for job growth.

Joplin is ranked 24th in the ranking of 398 metropolitan areas across the country, making it the highest ranked Missouri city. Columbia, Mo. placed 29th, making it the second ranked Missouri city.

The 398 current metropolitan statistical areas were ranked based on employment data from the Bureau of Labor Statistics. Rankings were based on recent growth trends, mid-term growth and long-term growth and momentum.

The rankings were also broken down by size of metro area. In the "small cities" categories, which have less than 150,000 jobs, Joplin ranked 16th out of 243 metropolitan areas.

The survey of the best cities for jobs cited the revival of the distressed industrial sector, which it noted has grown consistently over the past 21 months. The data showed that manufacturing regions are beginning to move up on the annual list of best cities for jobs.

"Despite the economic downturn, manufacturing comprised 20% of private sector employment in the Joplin metro area in 2010," said Rob O'Brian, president of the Joplin Area Chamber of Commerce. "It still remains the single largest employment sector for our area and the steady rebound through last year is reflected in this new survey.

"Add to that the diversity of our economic base with health care, transportation, retail and a rebounding construction sector and it appears that the Joplin region is recovering from the economic downturn that began three years ago".

However, O'Brian also pointed out that the survey, while comparing mid- and long-term trends, is also a snapshot in time.

"Last year, we were happy to be in the top one-third of the cities, again reflecting our diverse economic base even in the bottom of the recession. This year, we are in the top 10%, but positions will change again next year as other communities see economic recovery".

The 2011 rankings were based upon the region's growth both recently and over time. The rankings included all of the metropolitan statistical areas (MSAs) for which the Bureau of Labor Statistics compiles monthly employment data reports. Large areas include those with a current non-farm employment base of at least 450,000 jobs. Mid-size areas range from 150,000 to 450,000 jobs. Small areas have as many as 150,000 jobs.

Job categories that were analyzed include total nonfarm employment, manufacturing, financial services, business and professional services, educational and health services, information, retail and wholesale trade, transportation and utilities, leisure and hospitality, and government.

Below is an article related to Joplin and job growth.  My suggestion is for Neosho to model what we can from Joplin to increase our growth of manufacturing jobs.

From today’s JTSB:

Missouri Unemployment Rate Falling

From today’s JTSB:

Missouri's unemployment rate continued to edge down in April, according to data released today by the Missouri Department of Economic Development (DED).

Missouri's unemployment rate fell to 8.9 percent, down by two-tenths of a point from the March figure on a seasonally-adjusted basis. Since January of this year, Missouri's unemployment rate has now fallen by seven-tenths of a point.

In comparison, the U.S. seasonally-adjusted unemployment rate is currently 9.0 percent.

Missouri nonfarm payroll employment added another 2,500 jobs in April, with the most significant growth in construction, manufacturing and retail trade. Construction continues to show signs of traction following severe job losses over the past few years. Manufacturing has also been growing for several months; in April the industry employed nearly 250,000 Missourians, an increase of 7,700 jobs, or 3.2 percent, over the past year.

MSSU Board Seat Get Nominees

From Saturday’s Joplin Globe:

JOPLIN, Mo. — The Board of Governors at Missouri Southern State University is set to reorganize next month, but the six-year terms of two of its members have expired and the terms of two others are about to expire.

Scott Holste, spokesman for Gov. Jay Nixon, on Friday said, “The governor is aware of the terms of the folks on the board. This is a process that is continuing, but we have no time frame.’’

The term of Rod Anderson, a Monett Democrat, who is serving as chairman of the board, concluded in September 2009. The term of Charles McGinty, a Joplin Republican, ended last August. Both men said they will continue to serve until the governor either reappoints them or appoints successors.

The terms of Dwight Douglas, a Joplin Republican, and David Jones, a Springfield Republican, are to end in August.

State Sen. Ron Richard, a Joplin Republican, said he has forwarded a list of four people to the governor. They are Glenn McCumber, a Noel Republican; Richard Davidson, a Neosho Republican; Larry McIntire, of Joplin; and Jim Fleischaker, a Joplin Democrat. The list did not cite a party affiliation for McIntire.

The governor is not required to select any of the nominees advanced by Richard, but Senate consent of the nominees is required.
Richard said, “He’ll probably pick one. We have never had much trouble agreeing.’’

The board has nine members, including a nonvoting student member. The student member, Ezekiel P. Tarrant, of Webb City, will serve until Dec. 31.

The other members of the board and when their terms will conclude are Sherry Buchanan, a Joplin Democrat, August 2014; Richard Walter, a Joplin independent, August 2013; Nancy Perry, a Carthage Republican, August 2012; and Lynn Ewing III, a Nevada Democrat, August 2015.

By law, no more than four members may be members of the same political party.

The composition of the board is governed by geographic requirements. Six members can be selected from Barton, Jasper, Newton, McDonald, Dade, Lawrence and Barry counties, but no more than three of the six can be appointed from any one county.
Two members can be selected from any of the counties in the state that are outside of the seven named counties.

Franklin Fundraiser Was a Success

Saturday’s fundraiser for Kyle and Amanda Franklin was a huge success.  Last count I had showed a total collection of $20,186 to help pay for Amanda’s medical bills.

While many spent the day working concessions or selling T-shirts, I spent most of the day Saturday flying groups around the city of Neosho.  In total, I logged 12 flights and 3.9 hours taking over 30 people up for a 15-20 minute ride.

If you missed the event, donations can still be made to the Franklin Fund c/o Community Bank and Trust. 

Thanks to everyone who made Saturday an overwhelming success!

Sales Tax Revenue Receipts up in May–Yearly Trend Now Positive

General fund sales tax revenues received by the city in May are up compared to May of last year by 14.8%.  Revenues this month totaled just over $144K.  That’s compared to just under $126K in May of 2010.  This month’s increase puts the city’s fiscal year earnings up 0.62% vs last year. 

Total general fund sales tax receipts for this fiscal year are now at $1.288 million. 

The city’s general fund sales tax rate is 1%.  The city’s fiscal year starts October 1.

Unemployment Trends Upward to 8-month High

In the week ending April 30, the advance figure for seasonally adjusted initial claims was 474,000, an increase of 43,000 from the previous week's revised figure of 431,000. The 4-week moving average was 431,250, an increase of 22,250 from the previous week's revised average of 409,000.

Read the full news release.

MoDOT Proposes Closings…But It’s Not Roads

From the Kansas City Star: (emphasis is mine)

MoDOT plan would cut staff 19 percent, close facilities

Read more: http://www.kansascity.com/2011/05/04/2850414/proposed-modot-plan-would-eliminate.html#ixzz1LUrgJnux

JEFFERSON CITY | Missouri’s transportation director on Wednesday proposed cutting 19 percent of the department’s positions, closing facilities and selling equipment in order to devote more money to roads and bridges.

Transportation Department Director Kevin Keith estimated the plan would save $512 million through 2015 by cutting 1,200 staff positions, closing 135 facilities and selling 740 pieces of equipment.

After that, he estimated the changes would lead to about $117 million a year in long-term savings. Keith said Missouri faces a transportation funding crisis.

“This is not easy, but it’s the right thing to do,” Keith said. “I don’t think we have a choice …. We have to get smaller. We have to focus the resources that we have on taking care of our roads and bridges as our first priority.”

Keith presented the proposal to the Missouri Highways and Transportation Commission, which is expected to act on the plan June 8.

To cut staff, MoDOT plans to use attrition and transfers but would use layoffs for any remaining cuts.

The agency also would consolidate 10 regional districts into seven and close district offices in Macon, Joplin and Willow Springs. Officials say district boundaries have changed little since 1922 when mules and wagons were used to fix roads that often were gravel.

Because of declining funding, officials also presented a new five-year construction program of about $600 million yearly — roughly half of spending in the preceding five years.

“It’s very unfortunate for the thousands of people in this city who work in our industry,” said Don Clarkson with Clarkson Construction Co. in Kansas City. “MoDOT at half strength is bad for all of us, including the traveling public.”

Troubles with highway funding in Missouri are not a new issue. Since at least 2006, Pete Rahn, then the Transportation Department director, said the state’s annual highway construction budget would decline significantly by 2010 as proceeds from bonds were passed by the need to pay the debt. Rahn frequently used the metaphor that Missouri’s funding would fall off a cliff.

The funding decline was delayed because of federal economic stimulus money that was approved in 2009.

Keith said Wednesday that money from the bonds and the stimulus program now has been spent.

Bill McKenna, a former state transportation commissioner and the spokesman for the Missouri Transportation Alliance, said the proposed cuts were a natural response to less funding for transportation. The group includes business and labor organization and community leaders and has held meetings throughout the state to discuss funding and planning options to maintain the state’s infrastructure.

“These cuts are painful, they are deep and they will impact every Missourian,” McKenna said. “The cuts highlight the urgent need to resolve Missouri’s transportation funding shortfall.”

Transportation Commission Chairwoman Mary Nichols said commissioners had asked for officials to consider possible changes and were eager for public input on the proposal.

“This plan began and will end with the commission,” Nichols said.

Pakistan Blogger Accidently Breaks Bin Laden Raid

From today’s Network World:

While virtually everyone by now has heard the news that U.S. forces have killed Osama bin Laden in Pakistan, it was an IT consultant and his Twitter account that provided the earliest news of the successful military raid.

Sohaib Athar (right), a programmer living in Abbottabad, Pakistan, sent this tweet 15 hours ago: "Helicopter hovering above Abbottabad at 1AM (is a rare event)."

That was followed by: "A huge window shaking bang here in Abbottabad Cantt. I hope its not the start of something nasty :-S."

For the ensuing 14 hours, Athar tweeted reports, observations and rumors, quickly drawing the attention of reporters, who had difficulty reaching him.

Among his entries:

"Since taliban (probably) don't have helicpoters, and since they're saying it was not "ours", so must be a complicated situation."

"Uh oh, now I'm the guy who liveblogged the Osama raid without knowing it."

"Interesting, I didn't think my name would trend on twtter before releasing a couple of rock albums and a few award-winning software...."

And this from one of Athar's followers: "I think the helicopter crash in Abbottabad, Pakistan and the President Obama breaking news address are connected."

Here's how Athar describes himself on his blog, which is experiencing performance problems as I write, presumably caused by the worldwide attention he is receiving: "Sohaib Athar is a 33 year old guy from Lahore, Pakistan. He has 18 years of programming experience and 7 years of parenting experience."

Athar decided to move from Lahore last year after his wife and child were involved in a serious car accident. From his blog:

"Most of us Pakistani IT professionals spend our lives shielded from the 'system'. Yes, we sometimes come out of our shells and protest against whatever we believe we have to demonstrate against - and yes, we do write blog posts and opine and criticize and debate, and sometimes attend the feel-good TEDx talks to 'spread ideas' - but living in front of our computers, we rarely get a first-hand experience of the system that we loathe (but one that we have to live in).

I was forced to get a taste of the 'system' last April, when my wife and son were in a near-fatal car accident. Their car was hit by a police van on their way to school."

The experience prompted Athar to move from Lahore to Abbottabad, where he would play his small role in a historical event.

The headline on a brief post to his blog indicates he may have more to say soon: "THE GUY WHO LIVEBLOGGED THE OSAMA RAID WITHOUT KNOWING IT ... is what I am for the next few hours on twitter. I am too tired and sleepy to blog or talk about it though, but I guess it is finally time to revive this abandoned blog. Maybe tomorrow..."

Athar continues to be besieged with media requests, his latest tweet from a half-hour ago reading: "Bin Laden is dead. I didn't kill him. Please let me sleep now."

That would seem unlikely.

(Update: He didn't sleep long; here's his latest tweet from just after noon EDT: "I apologize for reporting the operation 'unwittingly/unknowingly' - had I known about it, I would have tweeted about it 'wittingly' I swear.")

Construction Spending Weakens

This morning’s report on construction shows spending for March 2011 was $768.9 billion, up 1.4% from February 2011, but down 6.7% from March a year ago.

Iphone Moves to Third-Largest Mobile Phone Brand

From NPD:

PORT WASHINGTON, NEW YORK, April 28, 2011 – According to The NPD Group, a leading market research company, in the first quarter (Q1) of this year Apple's mobile phone sales reached 14 percent of the U.S. market. Apple outranked HTC, Motorola and RIM as the third-largest handset brand in the U.S., behind Samsung at 23 percent and LG at 18 percent. After launching on Verizon's network in February, Apple's iPhone 4 further solidified its position as the top-selling mobile phone in the U.S., while iPhone 3GS, Motorola Droid X, HTC EVO 4G, and HTC Droid Incredible rounded out NPD's top-five mobile phone handset ranking. Unit sales of smartphones increased 8 percent in Q1 compared to the previous quarter; however, total handset unit sales fell 1 percent.

"Apple and Verizon had a very successful launch of the iPhone 4, which allowed the iPhone to expand its market share that was previously held back by its prolonged carrier exclusivity with AT&T," said Ross Rubin, executive director of industry analysis at NPD. "While some of that growth came at the expense of Android operating system (OS), Android models still accounted for half of all smartphones sold in the quarter.”

Oil Prices Drive Down GDP Growth

GDP grew at 1.8% (annualized) in the first 3 months of 2011.  That’s down from the 3.1% annual pace last quarter.  Analysts suggest rising gas prices and winter weather were factors in the slowdown.

(My February post on oil prices is here.)

From the Washington Post:

Economic growth slowed at the start of the year, weighed down by higher oil prices and lower government spending, according to new data that lays bare the challenging climb the United States faces in trying to emerge from its long period of weakness.

Gross domestic product, the broadest measure of economic activity, rose at a 1.8 percent annual rate in the January through March period, down sharply from the 3.1 percent pace of growth in the final quarter of last year. Economists had forecast 2 percent growth.

Indeed, the growth rate in the first quarter, if sustained, would be too weak to bring down unemployment meaningfully. The economy must grow at a 2.5 percent or so rate just to create enough jobs to accommodate a growing population and more efficient workers.

The full article is here.

March Revenues Up Vs 2010

1% Sales tax revenues in Neosho were up 8.26% in March compared to one year ago.  For the year, the 1% sales tax is trending 0.92% LOWER than one year ago.

Total 1% Sales Tax revenues for the first seven months of the fiscal year stand at $1,143,653.89.

Missouri Tax Revenues Up Thru Q3 2011

From the Columbia Missourian:

JEFFERSON CITY — Missouri's tax revenues are up 6.5 percent with only one-quarter of the budget year to go.

Figures released Monday by the state Office of Administration show the growth was fueled by stronger individual and corporate income tax collections than during the 2010 fiscal year. A decline in tax refunds also has contributed to the growth in state revenues.

State sales taxes have remained relatively flat through the first nine months of the fiscal year, even though they declined by 5.7 percent in March compared with the same month last year.

Individual income tax collections were up 6 percent in March while corporate income and franchise tax collections rose 8.4 percent compared with March 2010.

Bad Translations

Here's a great translation I found in the shower in Anji.

Neosho R-5 Receives State Award for Professional Development

From the Joplin Globe:

NEOSHO, Mo. — The R-5 district has received the 2011 Commissioner’s Award for High Quality Professional Development.

“We’re proud,” said Alma Stipp, assistant superintendent of curriculum and instruction. “It was a group effort.”
The state award recognizes the district’s efforts to improve the personal and career-related development of its faculty and staff as a means to bolster student achievement.

Stipp said the district’s focus on professional development began five years ago, when it developed a plan that centered on an initiative to help students in poverty. Since then, the district has brought in people from a national organization — the Highlands, Texas-based Aha! Process Inc., which seeks to improve poverty levels through the education system — to coach faculty and staff on how to reach those students.

“We trained large groups of our staff on different strategies for teaching and good practices we need to understand in order to meet our students’ needs,” she said.

The district was presented the award last week by the state Commissioner of Education, the Department of Elementary and Secondary Education and the Missouri Staff Development Council at an annual conference in Branson. District officials will formally announce their receipt of it at their monthly Board of Education meeting.

The board is scheduled to meet at 7 p.m. Tuesday in the library reference room of Neosho Junior High School.

(Blogger's note:  Great Job Alma!)

PPI/CPI Up In February

The PPI for finished goods increased 1.6% in February.  That follows a rise of 0.9% in December and marks the largest increase in finished goods prices since a 1.9% advance in June 2009. 

The CPI increased 0.4% in January.  Over the last 12 months, the all items index increased 1.6% before seasonal adjustment.  Large increases were seen in grocery and energy.  Food increases were the largest in over 2 years.

Intermediate goods prices (prices paid by manufacturers) moved up 2.0% in February. 

Unadjusted, finished goods advanced 5.6% for the 12 months ended February 2011, the largest 12-month increase since a 5.9% rise in March 2010.

You can view the latest reports here.

http://www.bls.gov/news.release/pdf/cpi.pdf

http://www.bls.gov/news.release/pdf/ppi.pdf

February Housing Down…Again

From the Economics and Statistics Administration:

Building permits in February 2011 were 517,000, down 8.2% from January and down 20.5% from February 2010. Housing starts were 479,000 in February 2011, down 22.5% from the prior month and down 20.8% from the prior year.

$65K Will Get you 45 (days)

From today’s Joplin Globe:

CARTHAGE, Mo. — Former long-time Carthage city worker Amy Harrison pleaded guilty to stealing nearly $65,000 in city court funds on Monday in Jasper County Circuit Court.

As part of a plea agreement, Circuit Judge Gayle Crane sentenced her to 45 days in jail, after suspending a 10-year prison sentence and placing her on five years of probation.

Assistant prosecutor Kimberly Fisher said it appears all the city’s loss calculated at $64,682 will be covered by an insurance bond, so the state is not requesting restitution. But, if any of the amount is not covered, Harrison will be expected to cover that amount, as part of the plea agreement.

Harrison was represented by Charles Genesio, and was accompanied to court on Monday by her mother and two children.

Police Chief Greg Dagnan was in court along with Randee Kaiser, assistant chief, said the investigation showed Harrison “made a concentrated effort” to hide the theft by falsifying reports and shifting money between court funds

Water Service Restored

Water service has been restored.

Known Water Issue

City crews are working to address the low water pressure issue in parts of Neosho. More information as it becomes available.

Local Pilots Suffer Crash in Texas

Local airshow performers Kyle and Amanda Franklin were reportedly injured in a crash yesterday while performing in Brownsville, TX.  The couple is based at the Neosho Municipal Airport. 

As a sponsor of their airshow act, I’ve gotten to know them both over the past few months.  They are a great couple and great aviators.  My prayers go out to them and I hope they will be back in the skies together soon.

Neosho March Sales Taxes Receipts Decline

Neosho’s March sales tax receipts were DOWN just over 21% compared to the same time last year.  That follows an increase of 26% last month vs. the same time a year ago.  For the first half of the year, Neosho’s 1% general sales tax revenues are DOWN 2.62% compared with the previous year – or about $25,500.

The last time sales tax revenues were this low was in 2007.

(This data reflects sales tax receipts which are paid to the city during the first week of each month.  Tax receipts to the city typically lag several weeks from when the taxes are collected and remitted to the state by businesses.)

Hannibal to Build New Airport Terminal Building

(From the Quincy Herald –Whig)

The City of Hannibal is one step closer to having a new terminal at the Hannibal Regional Airport (KHAE).

The finalized terminal plans include a pilot's lounge with kitchenette and sleeping area, a lobby, a conference room, restrooms, areas for flight instruction, offices for the fixed base operator (FBO) and other amenities.

"It seems to me like a functional building, and the architect has put some of his gingerbread on it to make it eye-pleasing and an amenity out there," Rees said. "When people land their plane and first walk in Hannibal's doors, they (will) see something nicer."

Barron Aviation will experience something nicer, as well. The main hangar currently serves as the airport's hub and offices.

"This will give an actual terminal for people, a presentable place for businessmen and politicians and people who come and go at the airport," Barron said.

The new facilities will run about $1.2 million, funded by Missouri Department of Transportation aviation dollars, a federal grant matching that amount and a city match.

Federal money also will fund the access road and parking lot.

The full article is here.

MIAA Women's Quarter Finals

MIAA basketball continues from the Kansas City Municipal Arena. Northwest leads Truman 33-31 at halftime. MSSU Lady Lions play at 2:30pm against Pittsburg State.

Go Lions!

Neosho City Census Information

If you haven’t seen the final figures, the census data for Neosho came out as follows:

Neosho’s population increased from 10,505 in 2000 to 11,835 in 2010.  The increase of 1,330 equates to 12.7%

The link for all of Missouri is here.

Globe Opinion on Downtown Works for Neosho, Too.

Below is an opinion article – I suppose from the editorial staff at the Joplin Globe.  They are commenting on the revitalization efforts for Joplin’s downtown area.  If you haven’t been downtown lately, it’s worth the trip.  And it goes to show you that a revitalized downtown, even if it’s different than 50 years ago, is still a good thing for a community.

Our view: New face, new life

The Joplin Globe Mon Feb 28, 2011, 07:35 AM CST

Downtown Joplin is getting a new face and a new life.

Just consider what has been happening to what was once the major business district of the city.

There is a lot of activity with the partnership of public and private investment tied to a “buy-in” of a back-to-the-past theme by building owners and tenants.

That represents a shift of momentum from the 1960s and 1970s when the birth of shopping centers and malls seemed to be the only game in town. We think there’s room and a big need for both.

The staple of the “new look” downtown has been the transformation of the former Newman’s Building on the southwest corner of Sixth and Main streets into a City Hall. Just across the street, apartments can be found in the former Frisco Building, which once housed a train depot, medical offices and businesses.

While the hustle and bustle that once was prevalent along Main Street during the 1940s and 1950s may never be recaptured, downtown Joplin is reclaiming its place as a viable economic entity. All that was needed was proper packaging.

Time can’t be rolled back. The thousands of shoppers who daily flocked downtown in the 1930s, 1940s and 1950s may never return in such numbers. But it is obvious that the old business district still has life and can generate economic excitement and dollars for Joplin.

NY Times Vindication

Great timing I guess!  Last night, the NY Times posted this article (and it’s in print today) regarding oil prices and the impact on the economy.  It mirrors (with much more detail) my post yesterday on that subject.

The article is here.

Economic Signs Remain Mixed – Oil is a Concern

I continue to track a number of economic indicators and statistics.  Today’s announcement that new single-family home sales were down 18.6% over last years already low rate reinforces the weakness our economy is experiencing.  Initial jobless claims are still averaging 402,000.  Durable good orders in January (excluding transportation) were down 3.6%.

Overall, signs are mixed at best and short-term optimism isn’t growing. 

Now enter the middle-east turmoil and upward pressures on oil.  It’s not a pretty picture.  Higher prices on gasoline will only worsen the economic picture as fewer dollars will remain to purchase other goods and services.

Not good news.

Pseudoephedrine Bill Moves Forward

The Joplin City Council voted 8-1 last night to advance a bill aimed to curb access to certain over-the-counter (OTC) drugs used in the manufacture of meth.  The bill would require a prescription for any drug containing pseudoephedrine.  Those drugs are currently required to be behind the counter and purchased with an ID, but do not require a doctor’s note.  The bill would only apply to purchases within the city limits of Joplin.

The council is expected to have a 2nd/3rd reading on the bill at their next council meeting. 

Wildcats Recognized for Back-to-Back Wrestling Championships

Yesterday afternoon, Neosho’s State Championship Wrestling team was honored during an assembly at Neosho High School.  In addition to the team championship, Neosho had 14 state qualifiers, 9 medalists, 4 state champions, and 5 academic All-State honorees.

Congrats to Coach Phillips for another great season.  We’re proud of all of you!

Joplin’s Proposed Drug Ordinance – One to Watch

The city of Joplin is currently discussing whether or not to pursue a new law that would require those purchasing certain cold medications to have a doctor’s prescription.  Why?  Because those drugs contain pseudoephedrine - a primary ingredient for meth.

On the surface, I see the attraction.  Missouri is ranked No. 1 in the nation for the number of meth labs and SW Missouri is by no means immune.  But will it work?  I guess time will tell. 

With the “metropolis” of Joplin having other cities close by, you may just move the purchases to nearby Webb City.  You also have to weigh the impact on those who truly need a decongestant from time to time when Mr. Sniffles comes to town.

For now, we can sit back and watch to see how this proposal evolves.  Drugs are a problem.  They have a significant cost on all of us, not just those in law enforcement.  I commend Joplin for trying to do more to stop it.  Ideally, a state or federal requirement will be a better “fix”.  But you have to start somewhere.

SAFER Grants Will Keep Neosho Safer

It was announced on Friday that Neosho was the recipient of almost $800,000 in grant monies from FEMA’s SAFER grant program.  Those monies will be used to restore the 9 positions lost to layoffs in 2010.  The program funds the positions for a period of two years, at which time the city will take over the financial obligation to fund those positions.

As of Friday, Neosho’s grant was the 16th highest awarded in the nation for the 2010 application period and the highest awarded in the state of Missouri.

While this funding restores protection on the fire side, the police force has yet to see any increases in staffing.  Finding additional funding for rehiring positions within our police force is still a top priority.

According to the FEMA website:

“The Staffing for Adequate Fire and Emergency Response Grants (SAFER) was created to provide funding directly to fire departments and volunteer firefighter interest organizations in order to help them
increase the number of trained, "front line" firefighters available in their communities.”

Councilman David Ruth Sworn In

Councilman David Ruth was sworn in this morning after being appointed at last night’s city council meeting.  The appointment was a 4-0 decision.  Mr. Ruth will serve until the April, 2012 election.  He is filling the term vacated by Chris Wright in January.

Large Debt Load is Our Golf Course’s Biggest Handicap

Below is my weekly Friday article:

It’s been almost six months since the city of Neosho was forced to make some drastic cuts in services and staffing in an attempt to stop the bleeding of our city’s finances. While those decisions weren’t without consequence, I’m happy to report that the city’s overall financial health is beginning to show small signs of improvement.

As we begin to look past the immediate needs of cash flow, the next battle on the horizon will be discussions over how we deal with the large amount of long-term debt owed by our city. Some of that debt continues to burden the city’s general fund. The one that concerns me the most is the roughly $3 million owed on our 27-hole municipal golf course.

The good news is golf course revenues are more than adequate to cover the day-to-day operating costs of the course. But when you add in the annual payments of the course’s debt, the overall budget picture starts to get ugly. Knowing that these payments will continue to increase over the next five years, it becomes critical that a plan be put in place, sooner than later, to deal with this ever-increasing burden.

Over the next few months, you’ll likely be hearing about more and more discussions of what that long-term plan may be. It’s not going to be an easy fix and it’s not something that can be done overnight, but I am confident we can work together to find a solution that keeps our course operating while minimizing the subsidies it receives from our general fund. Once a solution is in place, it will be yet another step forward in making our city stronger financially.

Stay safe and stay warm. Winter looks to be back in full force early next week.

Until next time, this meeting is adjourned!