Spending in OKC stronger than expected, sales tax results show
by William Crum
A better-than-expected economic rebound led Oklahoma City's city manager to lift the city's hiring freeze Tuesday.
While sales tax collections for the first quarter of the fiscal year are down 4.4% from this time last year, city budget managers had projected a 12% decline.
That means general fund revenue is $5.1 million above the budget target, said Doug Dowler, the budget director.
MAPS 4, public safety and other dedicated sales taxes also are exceeding expectations.
Like cities throughout the state, Oklahoma City is dependent upon sales taxes to cover day-to-day operating expenses.
City Manager Craig Freeman ordered a hiring freeze March 23 as city government anticipated a pandemic-induced economic slowdown.
The city council cut funding for 168 positions and agreed to a 5.2% general fund reduction, mitigated only by a $114.3 million federal CARES Act grant.
The federal money can be used only for unanticipated expenses related to COVID-19. Any not spent by Dec. 30 will be lost.
The police department cut its operating budget by $5.5 million after growing the previous year. Fire cut its operating budget by about $4.2 million.
Policing reductions meant less money would be available for overtime to fund saturation patrols in crime hot spots.
For the September reporting period, sales tax declined 4.9%, or $2.1 million, after year-over-year monthly declines of 0.4% in August and 7.8% in July.
Use tax paid on online retail sales and other goods purchased outside the state and shipped into Oklahoma was up 3.6% for September.
For the year, use tax is up 9.7%, or $1.7 million ahead of target, Dowler said.
September sales and use tax is a measure of economic activity the last two weeks of July and the first two weeks of August.