Oklahoma City Economic Reports

[Plutonic Panda]

a nice piece from NewsOk

Oklahoma City's sales tax exceeds expectations, but salary outlook is dim for metro-area workers

Oklahoma City’s budget year is off to a good start, a sharp reversal from this time last year.

The picture is cloudier for working people, though, based on the latest federal economic reports for the metro area.

The July sales tax check, the first of the new fiscal year, was for $35.1 million — up 5.7 percent over last year and well above the budget target of 3.9 percent growth. That’s a sharp departure from July 2013, when sales tax collections began the year down 3.4 percent.

Sales tax is the biggest single contributor to the budget and the primary source of cash for day-to-day services such as police and fire protection.

Oklahoma City expects overall sales tax growth of 2.8 percent this year, with higher collections from July to September and in January to March, said Doug Dowler, city budget director.

Based on those projections, the city council adopted a $1.1 billion budget that adds 92 positions. That brings the city’s authorized workforce to 4,672, up 2 percent.

The latest federal economic reports show metro-area employment on the upswing, but much of the growth is in lower-paying jobs.

The metro area added 3,600 jobs between April and May, bringing total employment to 626,600, according to the federal Bureau of Labor Statistics.

But employment in mining and logging — in Oklahoma, primarily the oil and gas industry — was flat for the month and down 2.9 percent from the same time last year. Service-providing jobs grew by 4,000 for the month and showed a 2.9 percent increase over May 2013.

- Oklahoma City's sales tax exceeds expectations, but salary outlook is dim for metro-area workers | News OK

[Plutonic Panda]

Some good news

Oklahoma City’s August general fund sales tax collections were up 2.3 percent compared to the same month last year.

Collections for the month — which includes collections for the second half of June and the first half of July — totaled $18.3 million. Although the amount was up from last year, it was not as strong as economists had predicted.

The city also recently received its September sales tax check, which came in at 0.66 percent growth, putting the city at 2.85 percent growth for the first quarter of 2015. That is half a million dollars below the city’s target. August and September make the fifth and sixth consecutive months of increased sales taxes over last year, despite September coming in below estimates, OKC Budget Director Doug Dowler said via email.

Economists predict an overall better pace of growth for 2015 in Oklahoma City than what 2014 brought in, but not by much.

Dr. Russell Evans, Executive Director for the Steven C. Agee Economic Research and Policy Institute, said that his team predicts conditions for at least a 4 percent sales tax growth in OKC, which is one percent higher than what the city saw last year.

- City sales tax up; experts predict stronger 2015 growth | okc.BIZ

[Teo9969]

I feel like a lot of local money has probably been flowing into the Real Estate market instead of the Retail/Restaurant market in the last year. I've been shocked to see what homes in certain areas are selling for compared to just 12 months ago. If that is indeed occurring, that is probably a major reason why we missed sales tax estimates.

[Plutonic Panda]

Oklahoma City Among The Nation's Fastest Growing Cities - News9.com - Oklahoma City, OK - News, Weather, Video and Sports |

[Laramie]

Oklahoma City Among The Nation's Fastest Growing Cities - News9.com - Oklahoma City, OK - News, Weather, Video and Sports |

Oklahoma City ranked 9th among the 'Large City Names' by this same report: 2014?s Fastest Growing Cities | WalletHub®

Large City Names
1. Austin, TX
2. Fort Worth, TX
3. New Orleans, LA
4. Denver, CO
5. San Antonio, TX
6. Corpus Christi, TX
7. Washington D. C.
8. Bakersfield, CA
9. Oklahoma City, OK
X. Columbus, OH

Six Oklahoma cities ranked within their categories:

Large City Names (63 cities in this category)
1. (9th) Oklahoma City - 610,613
2. (43rd) Tulsa - 398,121

Medium-Size City Names (243 cities in this category)
3. (48th) Norman - 118,197
4. (169th) Broken Arrow - 103,500

Small City Names (210 cities in this category)
5. (46th) Lawton - 97,151
6. (112th) Edmond - 87,004

"Oklahoma City looks oh-so pretty... ...as I get my kicks on Route 66." --Nat King Cole.

[Plutonic Panda]

More good news!

Economic Output Rankings

• Houston
• San Jose
• Denver
• Raleigh
• Oklahoma City

Houston and San Jose Are Leading U.S. Economic Growth - CityLab

[OKCRT]

When will OKC see all the new skyscrapers downtown? That's the real question. When new skyscrapers start popping out of the ground then people will take notice.

[ChrisHayes]

When will OKC see all the new skyscrapers downtown? That's the real question. When new skyscrapers start popping out of the ground then people will take notice.

Hopefully in the next few years the skyline of Downtown will be dotted with sky cranes.

[bchris02]

When will OKC see all the new skyscrapers downtown? That's the real question. When new skyscrapers start popping out of the ground then people will take notice.

I really want to see a skyscraper boom here as well. However, I think OKC will probably see more of a low/mid-rise and street-level urbanization boom. The city is already seeing massive low-rise residential developments like the Metropolitan rather than high-rise developments. The reason being is there is still so much cheap and undeveloped land in the core there isn't the incentive to go tall here, at least for spec space, that there is in other cities. Downtown OKC's best chance at getting buildings above 500 ft is to get another large corporate HQ like Devon. This is mostly my educated opinion so somebody please correct me if I am wrong.

[ChrisHayes]

Nothing wrong with a mid or low rise boom. Especially if they take the place of small buildings. I imagine we'll see at least a few more high rises. There needs to be a big publicity push to draw business to the city

[Laramie]

The market for office space & mid/high rise development downtown is on the rise.

Festival of the Arts Plaza (non profit offices) near Stage Center will have to be relocated. The annual Arts Festival will eventually find a permanent home in the new central park area.

Pete mentioned that we would hear something on October 6.

Cathy O'Connor, President of the Oklahoma City Urban Renewal Authority:

O’Connor said this area of town will be an exciting transition between the Myriad Gardens, the Oklahoma City Boulevard, and the future convention center. “It probably is the best development parcel in downtown right now,” said O’Connor. The deadline for proposals to the area is October 6th.

Big changes coming popular Oklahoma City event | KFOR.com

We should have a clearer picture about development near the Stage Center prime parcel area.

"Oklahoma City looks oh-so pretty... ...as I get my kicks on Route 66." --Nat King Cole.

[Plutonic Panda]

Isn't OKC exactly, but certainly isn't bad news for us. Just to think if we taxed ourselves at the appropriate rates, how much more money we could have for funding education, roads and highways etc.

Oklahoma revenue reaches new heights in September - News9.com - Oklahoma City, OK - News, Weather, Video and Sports |

[Plutonic Panda]

Oklahoma City's unemployment dips | News OK

[Plutonic Panda]

Quarter horse show provides big boost to Oklahoma City area economy | News OK

[Urbanized]

Horse shows and conferences/conventions aren't inspiring to locals who want new toys for their own use, but it is some of the cleanest economic development we can perform; better even than corporate incentives to "buy" jobs. When people come to OKC for meetings, sports or horse shows, they transfer money from their own economy to ours. Loads of it. Then, with very little demand for other infrastructure or services, they leave after a few days (but their money stays). That cash infusion allows us to pay for even more services/toys/rides and general quality if life improvements than if we were dependent upon OKC residents alone.

So, while it's easy to hate on these types of projects - especially when you have a pet project of your own that you THINK is competing for funds - sometimes we would all benefit from stepping back and looking at the bigger picture.

[Teo9969]

Influx of external resources > internal circulation of resources.

That's why it sucks when we don't make the finals. That's such a huge boost for the economy. Russell And Ibaka's playoff injuries potentially cost the city hundreds of millions of dollars.

[bchris02]

Does anybody know how much of OKC's economy is dependent on the oil and gas industry? An article came out not long ago saying that 1 in 5 jobs in the state is oil and gas but I would imagine OKC is a little more diversified than the state as a whole. Does anybody have statistics?

[Plutonic Panda]

Oklahoma City continues to have one of lowest unemployment rates in the nation | News OK

[Plutonic Panda]

OKC jobless rate falls in December | News OK

[Plutonic Panda]

This is interesting. Cites a stable and diverse economy for an extremely high credit rating.

Standard & Poor’s, Moody’s reaffirm Oklahoma City’s AAA bond rating
(February 4, 2015) - For the fifth year in a row, Oklahoma City has earned the highest bond ratings possible from two of the nation’s most respected financial rating services.

The City’s general obligation bonds received an AAA rating from Standard & Poor’s and an Aaa rating from Moody’s Investor Service in reports released in January. Strong financial management practices, high reserve levels and a stable and diverse economy are three of the factors that led to Oklahoma City’s strong rating.

“Receiving the highest level of bond rating shows the strength of Oklahoma City’s economy, the continued support of our citizens, the leadership of the Mayor and City Council and the strong financial management practiced throughout the City organization,” said City Manager Jim Couch. “This is great measure of the success that has been experienced in Oklahoma City. We understand how valuable this is to our community, and we do not take it lightly.”

The reports put Oklahoma City in an elite group of major American cities with the highest ratings possible. The strong ratings allow the City to sell bonds at lower interest rates. The savings allow the City to spend more on bond projects like streets, bridges, sidewalks, trails and park improvements.

Other factors that contributed to Oklahoma City’s continued high rating include:

· Oklahoma City’s role as a regional economic center
· Low unemployment rate
· History of voter support
· Moderate debt levels

- City of Oklahoma City | News from OKCGOV

[hfry]

I agree that it's interesting because living here it hardly seems diverse with the control the oil companies have but the number or people tinker employees and hobby lobby's booming warehouse sector I bet helps a ton. Okc has always had a economical dived with the Canadian (Oklahoma) River with a huge working class to the south but I would guess most who live there don't work for an oil company. Maybe a decent amount in the service industry but going to school on the south side (Mount St. Marys) I noticed a large amount that worked at Tinker or other manufacturing type places.
I will say the History of voter support is a little questionable depending on what type of vote it is. The last mayoral election was embarrassing and I am curious how people can out and vote for the City council elections soon.

[Plutonic Panda]

Agreed. I also think our tech and health sector is growing at a pretty good rate. We have the HSC or now it is called the Innovation District, Norman seems like it has a pretty decent tech field, and Moore has something going on I think that will have an HQ their for some tech company.

Oil and government still seem to be the dominant play by a long shot though.

[Zorba]

I agree that it's interesting because living here it hardly seems diverse with the control the oil companies have but the number or people tinker employees and hobby lobby's booming warehouse sector I bet helps a ton. Okc has always had a economical dived with the Canadian (Oklahoma) River with a huge working class to the south but I would guess most who live there don't work for an oil company. Maybe a decent amount in the service industry but going to school on the south side (Mount St. Marys) I noticed a large amount that worked at Tinker or other manufacturing type places.
I will say the History of voter support is a little questionable depending on what type of vote it is. The last mayoral election was embarrassing and I am curious how people can out and vote for the City council elections soon.

I think by voter support they mean that voters tend to approve things like MAPS not that there is a high turn out.

[Plutonic Panda]

Economist Predicts OKC's Future With Lagging Oil & Gas Prices - News9.com - Oklahoma City, OK - News, Weather, Video and Sports |

[bchris02]

This is depressing being that OKC really needs the growth to continue another few years. Steve posted an article not long ago outlining possible scenarios. So far, at least nobody is predicting a 1987 style bust. That was the one that nearly killed OKC.