Doug Enevoldsen is City Manager for the City of Bixby. He has served in a variety of legislative and executive branch positions at the highest levels within Oklahoma state and local government.

Cities and towns are the backbone of Oklahoma’s economy, and the state’s health is critically dependent on their well-being. Virtually all commerce, common education, higher education, health care, state, and even many county government services take place inside a city or town. Those institutions cannot fully achieve their own respective missions if their host cities are not healthy, functioning entities. We are all in this together.

Ours is the only state in the nation whose municipalities are required to operate primarily on the sales tax, a highly volatile revenue source whose base has steadily been eroded over time through legislated tax exemptions and rising Internet sales.

Because they are so reliant on sales taxes to pay their daily bills, most cities and towns focus the bulk of their efforts on attracting retail sales instead of industries which feature higher-paying jobs, or adding rooftops. This is understandable, since the latter pursuits increase demands on municipal services without directly providing commensurate operating revenues. However, as UCO economist Mickey Hepner points out, this ultimately results in a less diversified, less prosperous Oklahoma economy.

Pursuit of retail also pits communities against one another since there is only so much of the retail pie to go around, creating an unhealthy competition which undermines regional collaboration which might otherwise emerge, and limits cost savings opportunities for all. Read the rest of this entry »

As we reported last week, the 2009 legislative session was relatively calm for Oklahoma’s local governments. Last week’s post summarized the good news, including some greater control over governance and more land use planning tools. There is bad news, too. Local governments suffered some loss in powers, got new duties without help paying for them, and still hold a big IOU from the state. Other sessions have been worse, though. There is reason for relief in city hall and the courthouse. Here’s the rundown.

Bills that prohibit local governments from acting, also known as preemptions, are among the most serious for local governments, because they can keep the government from responding to demands from citizens. This year’s only example, HB 1473, is a minor one. It exempts agricultural  land 40 acres in size or larger from ordinances restricting land use and building construction when those areas are annexed into a city. This could mean cities can never rezone or restrict buildings on this property, even after it is developed. Here’s the Oklahoma Municipal League’s response, which references an earlier version with an even stricter 10-acre minimum.

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Nobody fears the coming of a new legislative session more than Oklahoma’s 1,900 local governments. Because they are legally “creatures of the state,” our counties, cities, and special districts are subject to the state’s complete control. The Legislature often exerts that control by restricting funding sources for local governments, preventing them from taking certain actions, requiring them to act in certain ways, and giving them new duties, often without funding the additional costs. Collectively, these existing and new mandates play an important role in shaping how communities provide public services.

The 2009 session was fairly calm for local governments. A later post will address some negative legislative results for local governments. Here are some that most local governments would view as positive:

• SB 431 allows counties to establish fines and to cite and prosecute alleged violators of zoning, subdivision, flood plain, and storm water ordinances. This gives counties more tools to manage the growing development that is taking place outside city limits.
• SB 487 gives state agencies and local governments sued under the Government Tort Claims Act more flexibility in working with claimants to structure settlements. This could allow local governments to reduce property tax impacts of these settlements.
• Local governments got a little more revenue flexibility and freedom from HB 1480, which expands allowable uses of lodging taxes, and HB 1048, which reduces steps counties must take in collecting delinquent property taxes.
• Counties got more management flexibility from HB 1608, which adds sheriff’s deputies and others to the list of public employees who can work shifts of more than eight hours per day, and SB 490, which raises the dollar amount where counties can award contracts to the second lowest bidder if the lowest bidder cannot fulfill the contract.
• HB 1483 gives Oklahoma water use priority over out-of-state use. Oklahoma cities support this bill since it may help them meet growing water demands.
• City governments may find it easier to hire for key positions due to HB 1753, which expands the area in which a city manager may reside to include the school district serving the city and an area within 10 miles of the city limits, and HB 1420, which lets small cities hire part-time city planners.

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