Highway Costs are Taxing

Below is my weekly column published 5/16/2014

It’s been almost a year since I wrote about the demise of a proposed sales tax to support Missouri’s highways.  But unlike last year, it now appears a sales tax option will be coming to the voters of our state no later than November.  While some have already spun this as a tax increase, I’d rather call it a tax option – after all, we the people will make the final decision – our legislators simply made the choice available.  I’m glad we get the chance to weigh in on the matter.

I stand by my principled view that overall, I’d like to see a smaller government and lower taxes for everyone.  But as you learn in life (and as I had reinforced by my college economics professor) – there are no free lunches.  Roads don’t get build for free.  Roads and bridges don’t last forever.  It takes money to keep our road infrastructure functioning.  The sales tax – if approved - will generate around $550 million a year with a 10-year sunset.  5% of that comes back to both counties and cities for local projects.

Personally, I felt a fuel tax would be the “fairest” tax – meaning that those who use the roads more (and therefore buy more gas) pay more in taxes, but that’s not what we got.  The concern I heard was such a tax would equate to as much as $0.20-$0.25 per gallon at the pump to generate the needed revenue.   That’s over a 5% increase in gasoline prices – adding $5 or more to the average fill-up. 

 The sales tax (which we get to vote on) is the other option for a quasi-consumption tax – the difference being that those who buy more (of everything) will pay more taxes.  (As a side note, you don’t pay sales tax on gasoline.)  The downside is the proposed ¾-cent tax hits everyone – regardless of how far or how much we drive.  The legislature has lessened that blow by exempting items such as food and prescription drugs.  Given that most goods we buy in stores today are delivered there by trucks (that drive our highways), some will say that taxing all goods is fair since it helps pay for the roads that allowed the goods to deliver.  While it’s not a strict tax on road use, I do see some connection.

 At the end of the day, the funding issues at MoDOT aren’t going away.  With more money, they will build more.  Without more money, they won’t.  I applaud MoDOT on the cost-cutting measure already put in place.  They've cut a lot of staff and closed a number of offices (the one on 32nd in Joplin is one I notice the most.) It does appear they have tried to do their part. And when you lose almost half a billion in funding vs past years, you have no choice but to stop building and change your focus to little else other than maintenance and snow removal.

 We should know in the next few weeks if November is truly the date to decide this issue.  But until then, unlike last year, at least voters will get the chance to decide on MoDOT’s funding for the future – and ultimately decide on an option to support the future of our Missouri highways for the next 10 years.

 I want to give a quick compliment to our folks in the Neosho Parks Dept.  With most of the flowers now planted and spring rains bringing life back to our parks, they are looking beautiful.  I took a stroll around Big Spring Park this week – what a jewel we have in our downtown!  Sales tax revenues continue to come in strong.  Business growth is picking up as well.  We certainly have a lot to be proud of.

 Until next time:  Stay the course, keep the faith, and may God bless Neosho.

Laws Need Consequences (from May 31, 2013 NDN Column)

It’s that time of year again when the Missouri General Assembly has wrapped up its session and bills passed by both chambers are sitting on the governor’s desk awaiting a signature or a veto.  As an elected official looking out for Neosho’s best interests, I made a point to speak with our folks in Jefferson City as they crafted some of these bills – especially when those bills seemed to take away “local control” of how we govern.  (I prefer fewer laws vs. more of them and I don’t agree the one-size-fits-all laws are often in our best interests locally.)  While those bills I didn’t support ultimately passed and are awaiting action by Gov. Nixon, it’s worth discussing at least one of them.

HB307 is one that has drawn the attention of both municipalities and the Missouri Municipal League (MML).  The MML went as far as saying “This bill, based on anecdotal and unsubstantiated information, is an intrusion into local personnel matters.”  As I read it, the bill, among other things, attempts to put a legislative fix in place to prevent a chief of police from being terminated for the wrong reasons (i.e. political ones.)  In doing so, the state lays out the six (6) ways (and only six ways) a chief may be fired.  I’ll admit on the surface, it sounds like a reasonable idea!  But there are some issues with how the bill is written and how it goes about it that concern me.  Also, the bill was written in response to isolated abuses in other parts of the state, but puts a burden on ALL of us because of those few bad apples.

Here are some questions/comments I passed on to those in Jefferson City watching out for our part of the state.  In no particular order:  Why just the police chief?  Could the same political issue not happen with the city prosecutor (who goes after the “wrong” person) or the city judge (who didn’t side with the “right” person?)  If a city manager (in our case) was firing someone for “political” reasons, wouldn’t there be a high likelihood that the governing board overseeing the manager’s actions could be the ones actually driving the termination?  What’s the penalty?

It’s important to know that I made a point to both call and discuss in person these comments with our current police chief.  Chief McCracken and I both have a tremendous amount of respect for each other and he knows my questions weren’t indicative of my lack of support for him or his job.  Both of us understood the pros and cons of the issue.  Ultimately, I simply don’t believe the bill solves the problem (and given his long tenure with our city through many councils and managers, I’m not sure there even is a problem.)

If there is one thing I’ve learn over the past year or so is that some state laws seem to be more “feel good” in nature and turn out to be hollow when it comes to enforcement.  Just last month, we saw the consequences of what happens when you “knowingly” break state election laws.  Despite finding out forms weren’t completed, monies were sent out of state with no accounting of their ultimate use, ads were paid for by 3^rd parties and labeled “Paid for by candidate”, not much happened.  In essence, the laws designed to protect the very election process that sits at the core of our democracy were trampled, spat on, completely ignored – KNOWINGLY – and what’s the penalty? Pay $300 and don’t do it again.

If the same slap-on-the-hand penalties exist for firing a police chief, why bother writing the law?  My compromise was simple – instead of laying out a process that adds burdens to the local municipalities, why not make these “political” actions a  felony punishable by fines and jail such that anyone performing acts out of political revenge are punished?  Until then, I’m not sure much will change.   The last twelve months certainly show that laws with little or no penalty won’t prevent an action from happening. But I certainly think laws that include a proper penalty will do more than any board or extra layer of appeal would ever do.

School is out and another school year is behind us.  For me, this one is bitter-sweet.  This year marks the end of an era for a very special lady in the Neosho R-5 district.  Mrs. Alma Stipp, our current Neosho R-5 superintendent of schools, is retiring.  I got to know Alma as a principal at Central school during my early days on the Neosho school board.  She certainly impressed me and stood our as one who deeply cared about students and learning.  In 2006, when an Asst. Supt. Position came open in Neosho, I commented to then-Supt. Dr. Richard Page, “It’s not the board’s job to tell you who to hire and I’ll support whoever you choose, but if you don’t hire Alma to fill that job, you’re crazy!” She soon took over that position and filled in this past year in the top spot after Dr. Page left the district.  So here’s a quick “thank you” to my favorite superintendent” Alma Stipp -  You’ll be missed!

Until next time:  stay the course, keep the faith, and may God bless Neosho!

It Comes With the Job

My weekly column - published 5/3/2013

It Comes With the Job (I guess!)

I've said hundreds of times that I love my job serving the citizens of Neosho.

Without a doubt, it has been one of the most enjoyable opportunities in my 43 years on this earth. But as with any job or occupation, there are always things that pop up that remind you that even with the best of intentions, some days are better than others. But I would have never dreamed that local politics in today's world would include things such as threats or innuendos of harm, but would you believe they still happen – even here in Neosho?

As a city, we don't make a big deal over things like this. But last week, city hall went on alert after a generalized comment was made about a bomb and a potential threat at city hall. This wasn't a Boston-type threat that required an evacuation or a shutdown of the area, but it still reminds me that even in local politics, there is always a risk. I thought I'd share a few more of my experiences since serving on the council.

I remember very clearly, about two years ago, when a comment was made to me that Neosho "needed another Kirkwood incident." I'm normally a pretty calm person, but even I was a little shocked with that one – enough so that I had conversations with law enforcement. To those that aren't familiar, in early 2008, a gunman went into a city council meeting in Kirkwood, Mo. and killed five, including the city's public works director, two council members, and the mayor (who died months later of his injuries.) And as we learned from the Neosho church shooting in August of 2007, to say it can't happen here simply isn't true.

Other memories directly relate to some "local" issues and council actions on them. One was during the early discussions on the TDD when a "friend" showed up at my office and said we needed to "go on a ride". While I had no reason not to "trust" this individual, it was a bit awkward (maybe I've seen one too many of the Godfather movies.) The ride lasted about 30 minutes and it turned out to be more of a lecture on how things are supposed to "work" in Neosho, but it still caught me off guard. Those "rides" happened on more than one occasion.

Another was related to last April's election when my term was up. It was a call from a local business person (and supporter) who had been approached about needing "change" in Neosho. While the details don't matter, I was very surprised by the tone of the conversation and the "promises" that were made if those changes were to happen. And given the comments, it was obvious those behind it were full of hate and anger – something that can sometimes be the spark that causes other bad things to happen. In the end, nothing came of it. The election was fairly decisive and we moved on. But it did remind me of the unfortunate truth of politics and how brutal some can be when money and power hang in the balance.

Regardless of the risks, politics continues to be a passion for me. And serving my community is something I truly value in my life. But as with anything, risk can sometimes be around the next corner. I don't expect sympathy or compassion – it's my decision to be doing this job. And I don't believe any "hits" are out on me based on my views or council actions, but it does make you step back sometimes and think "Really? In Neosho? Are you kidding me?"

Next Thursday night, May 9, I'll be heading up another town hall meeting and listening post for citizens to come out, hear about what's happening in Neosho and discuss any topics you wish to bring to your elected officials. It will be at the Neosho Golf Course meeting room. It will start promptly at 7 p.m. I hope to see you there.

Until next time: keep the faith, stay the course, and may God bless Neosho!

RICHARD DAVIDSON: Help wanted — for a week

RICHARD DAVIDSON: Help wanted — for a week

Eminent Domain Vs. Economic Development

Over the past few weeks, I’ve had some questions asked about my view on the use of eminent domain for the purpose of private economic development. As someone who has been on the receiving end of such an attempted action, I can tell you I’m not sold on the concept, regardless of whether or not it is technically “legal” in the eyes of the courts. It’s a slippery slope and one I would prefer NOT to slide down.

Before I get too involved, let’s go back and look at some history. The concept of eminent domain isn’t new. The idea is mentioned in the Fifth Amendment of the U.S. Constitution. That amendment contains a number of protections related to abuse of government authority. From it we gain protections dealing with double jeopardy, the need for a grand jury, protections from self-incrimination, the idea of due process, and our topic today, “improper takings”. The last words of the amendment “…nor shall private property be taken for public use, without just compensation” give the basis for the concept (and restrictions) specific to eminent domain.

Court decisions over the years have attempted clarified our founding father’s ideas. The words “just compensation” have never really been a problem. The U.S. Supreme Court has repeatedly held that such compensation is usually “fair market value” at the time of the taking (with some rare exceptions). That’s pretty straight forward. In simply terms, if the government “takes” your land, you’re going to get paid for what is taken. That’s certainly the right thing to do. But the bigger issue (and to some, the concern) relates more to what is meant by the words “public use”.

In my research, that term public use has historically been about benefiting the public interest or the public welfare. Things such as schools, highways, bridges, etc. typically come to mind when people refer to public use. That’s pretty straight forward. And while none of us ever “want” our land taken, I think we can certainly agree those would be areas where “public use” applies and could be justified as a last resort.

But in 2005, the U.S. Supreme court, in a 5-4 decision, expanded the concept and ruled that the powers of state and local governments could in fact take private property for “private” commercial development if that planned development has a “public purpose” (such as new jobs or increased tax revenue). It’s that ruling that has some concerned that by expanding “public use” to mean “public purpose”, it may open the door to abuse. As an example, using eminent domain to take land for a private strip mall is not something I’d view as having a “public purpose” - it goes too far – even if members of the “public” can use it and such use could create jobs or expand tax revenues. To me, that is NOT what our founding fathers intended. If a land owner doesn’t want to sell to another private individual or group for such a development, move on and find land elsewhere. Having government intervene isn’t the solution.

The good news is that most eminent domain actions will continue to involve land where “public use” is purely the issue. But just knowing the potential is there, I understand the reason some have a concern.

So to again answer the question posed to me in the first paragraph - I believe the 2005 ruling opens the door for abuse. And unless a very good case is made and a clear “public” benefit is shown, I’m not one to believe such an action is proper – even if it’s technically “legal”. Free markets and private negotiations are the best solution to settling those types of disputes. Going to the government for “help” isn’t an option I’d recommend.

Thanks again to all of you for your continued support. I hope to see some of you at the Bright Futures golf tournament Friday or at the Duck’s Unlimited banquet Saturday. Until next time, stay the course, keep the faith, and God bless Neosho!

This Week It’s About Honesty

Below is my weekly column for 2-17-2011

During the school year, my daughter and I usually make a pilgrimage to McDonald’s on Monday mornings to start the school week off with a Bacon Egg & Cheese biscuit, hash brown and a diet Coke. We’ll talk about the week ahead and I’ll offer the periodic reminder that she can’t have a boyfriend until she’s 25. As long as I’m getting more smiles than eye rolls, I’m good with that. Ultimately, I do all I can to get some daddy/daughter time because someday (and that someday is coming soon), the days of hanging with dad, walking her into the school and getting a kiss on the cheek in front of her friends will no longer be “cool”. (I’m preparing the best that I can!)

This week (on Tuesday because of the snow), we sat in our usual corner table. She filled the drinks while I unwrapped the biscuits on the familiar brown tray. She sat down, approved my work, and we began our meal. Through the window I noticed the scrolling marquee from Boulevard bank and the “congrats” line for my dentist, Dale Kunkel, and his employer of the month recognition. It then switched to the Neosho R-5 screen listing the February character word - “Honesty”. I found a moment of silence to ask her some questions – specifically “Do you know this month’s character word?” followed by “So what does ‘honesty’ mean to you?” I got the answer “being the kind of person whom other people can have confidence in.”

Since that is the school’s definition, I accepted the answer, but I expanded on it. I explained to her that honesty as it relates to everyday life means that you tell the truth (Webster’s says “adherence to the facts”). It is very simple concept, but life doesn’t always make it so simple. Sometimes the “hard truth” doesn’t go over well. Sometimes bending the truth a bit can help smooth things over (my grandma called that a ‘white lie’), or possibly the truth doesn’t help the cause at all so changing the story helps get people to take your side or position. Whatever the reason, we can all relate to at least one of the three (and there are many more than that!)

At all levels of our government, I place a high importance on honesty. From the candidates I support in elections to discussions I may have with local, state or federal officials, I expect nothing less than honesty in addressing issues that may arise. I respect those who will tell the truth, those who are honest with the public, and those that will give a straight-forward answer to a legitimate question. To me, honesty is quite refreshing in a world where personal motives and special interests seem to have more influence in what happens vs. simply doing what is right. To quote John Gardner, a politician, writer and Presidential Medal of Freedom recipient, “The citizen can bring our political and governmental institutions back to life, make them responsive and accountable, and keep them honest. No one else can.” I certainly try to do my part.

Today’s Neosho city government strives to take an approach where honesty is viewed to be the only acceptable means of dealing with our citizens. We’ve learned from the past and your current council and city administration are making a concerted effort to regain the trust of our citizens. We’re working hard to restore your belief that your government is honest, capable and working for ALL of the people. I think we’re making great progress.

So after a great breakfast, a walk into Carver elementary, and a kiss on the cheek, I’ll say this: I’m glad our society works from a young age to instill values and character in our kids. I appreciate our schools for helping to reinforce the values taught by parents in homes across our country. I appreciate our citizens noticing the positive changes we are making in our city government. In the end, we all benefit by grooming our current and future leaders to be more involved and concerned with doing the right thing, behaving in ways that instill confidence, and working hard to ensure that truth and honesty prevail. It certainly makes a noticeable difference…and Neosho is an obvious example.

The snow has melted and the sun is back. It looks like a great weekend of weather is here. My compliments to John Mills and his helpers for a great job on the Art Gala. It was a great time. Until next time, thanks for the support, stay the course, and may God bless out town!

Airport Land for Sale

A small airport west of Ozark known as Air Park South is being sold by Springfield-Branson National Airport, and proceeds from the eventual sale will be used to increase space for general aviation planes at the Springfield airport.

Airport Director Brian Weiler said the Federal Aviation Administrationand Missouri Department of Transportation agreed to let the airport use funds from the land sale for general aviation improvements because the Springfield airport initially used FAA and MoDOT funds to buy about 240 acres west of U.S. 65 in 2001.

The money at the time was intended to improve access for general aviation aircraft. The site includes a rough 3,000-foot asphalt runway that’s too short to accommodate business jets. The airport tried to buy an additional 36 acres to extend the runway to 5,000 feet but the property owners declined to sell.

Springfield-Branson National Airport spokesman Kent Boyd said the airport in 2004 initiated eminent domain proceedings to determine what the 36 acres was worth.

“They came back with a value of $220,000 an acre, which if you do the math comes out to a really big number — about $8 million,” he said. “We’d previously spent $5 million for more than 200 acres. The additional acres just didn’t work.”

In 2006 the Springfield-Branson National Airport Board voted to put the land up for sale. After a lengthy review by MoDOT and the FAA — including posting the proposed land sale for public comment on the Federal Register — both agencies agreed to let the airport use sale proceeds as proposed, for the general aviation improvements.

General aviation aircraft include privately owned light planes and business jets. Weiler said the airport currently accommodates 12 single-engine planes, 25 multi-engine private aircraft and 18 business jets.

He said there’s been a list of airplane owners waiting for hangar space to open up. The land sale should help remedy that.

“We do know there is additional demand out there,” Weiler said.

Proceeds from the land sale could be used to build additional hangars, develop roads and taxiways and develop sites that could be leased to private owners who might want to build their own hangars.

“We are in the early stages of determining where that money would go,” Weiler said. “I really want to see some options.”

Weiler said the airport’s Master Plan has identified three possible locations on airport grounds where additional general aviation facilities could be developed.

Because there’s been a longstanding need for more accommodations, Weiler said the airport could pursue other sources of federal funding to make those improvements while the airport waits for someone to buy the old airport land near Ozark.

More information about the site is available on the Web athttp://www.flyspringfield.com /land.

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.