Doug’s District
By
Doug Smith, Delaware County Commissioner District 1
(Posted 5-4-2011)
Spring is here and the road crew is working feverishly to repair roads and bridges that have washed out during the recent heavy rains. The weather will soon be getting better where we can be pro-active with our road maintenance and repair program so you will be seeing progress soon.
With that said, I think it is time to explain the Tax Incremental Financing (TIF) project to rebuild Shangri-la Resort on Monkey Island. The TIF was approved by the Board of County Commissioners in December and the project is well underway.
As with all new programs, many false rumors and misconceptions abound as to this TIF’s function and impact on Delaware County. I will try to address the most common misunderstandings in this column, and if you have more concerns after reading this, please feel free to contact me.
Here are the basic facts about the TIF:
•
The TIF does not take tax revenues from the county for schools or other programs
•The county does not pay the developer out of county coffers
•Property taxes will not be raised because of the TIF
•All current assessed property taxes paid by the developer are, and will continue to be, paid at the present assessed value
•Without the TIF, Delaware County would be unable to attract private investors willing to build a multimillion dollar hotel and conference center in the Grand Lake area.
The following is a brief overview of how this TIF works. As phases of the Shangri-La Resort project are completed, its property value will increase, and so will the county’s tax assessment of the property. This is where the TIF program begins. Under the TIF agreement, the county will allow the increased property tax assessment to be used by the developer to finance essential phases of the project. The Economic Development Authority will issue finance notes in increments in the amount of the increased assessed value of the project to the developer to finance essential phases of the project.
The advantage of this financing mechanism is that the assistance in in development financing is based entirely on completion of project development activities, thereby assuring results before finance notes are issued and providing new investment and economic activity as a source of repayment of the notes. The notes, to be issued periodically by the Delaware County Economic Development Authority to the developer, will be paid as rapidly as tax increment revenues will permit.
The health and vitality of all Delaware County is significantly tied to the tourism industry. Grand Lake attracts visitors from throughout the United States who eat, sleep, shop, play and buy gas (and remember, fuel taxes are our only source of revenue for county roads!). Many county residents have jobs that are linked directly or indirectly to Grand Lake. Enhancing Grand Lake’s inevitable draw keeps residents and visitors knocking at our door. This project seeks to do just that and already is.
The new club house and renovation of the championship 18-hole golf course are well underway, as well as construction of an entirely new nine-hole course. This alone brings benefit to the county through construction jobs and scores of golfers who enjoy Oklahoma’s temperate climate from April through November. This multimillion dollar investment, including the proposed hotel and conference center, will attract thousands of tourists and potential investors to the Grand Lake area, providing much needed revenue for our cities, schools and county services. The rebirth of this vital area will serve as the cornerstone of our efforts to improve economic development and community services for everyone in Delaware County.
Doug’s District
By
Doug Smith, Delaware County Commissioner District 1
(Posted 3-22-2011)
What an incredible blessing to see the trees starting to bud and the grass turning green! Although Ol’ Man Winter seems to have left quietly, he did leave his calling card—cracked and pockmarked roads throughout the county. Our crews are working feverishly to fill potholes and repair the most severely damaged areas. Not a new event by any means, this particular rite of spring annually takes its toll on the county budget, and everyone’s cars. But rest assured, we are working as quickly as we can, and we truly appreciate your patience.
As promised in my first column, I want to take this opportunity to keep you updated on Commission activities and to provide you with important information.
In that regard, it is my pleasure to announce that David Poindexter has been appointed as District 1 Deputy Commissioner/Road Foreman. David and I may have been opponents for this job, but throughout the campaign I found him to be a man of integrity and resourcefulness, as well as a solid team player. David’s love of Delaware County and his strong work ethic are evident in his work—our road program is already operating in a more cost-effective and efficient manner, and David shares my commitment to improving and providing the highest level of service to the people of Delaware County.
We now have some hard numbers with regard to storm damage costs and our funding source for county roads. As of this writing, winter storms cost the county approximately $150,000 in materials, manpower and equipment. We have been meticulous in documenting the costs and all expenses have been submitted to FEMA for possible reimbursement. Hopefully, we will receive this funding in a timely manner.
Many folks I visit with do not know how county road projects are funded, and there is a common misconception that property taxes are the primary source. That is not the case. Property taxes are utilized for public schools, Career Techs, fire districts, Health Department, library and county government—NOT county roads!
Operation and maintenance funds are received from only one source—fuel taxes—which average approximately $60,000 per month. Most other county road districts in Oklahoma have two other sources of income, sales tax and gross production taxes (oil and gas production taxes). Bottom line—Delaware County Road Districts receive only ONE out of three possible revenue sources. Obviously this makes providing expected core services a challenge.
I am not providing this information to be pessimistic or as an excuse. Those who know me are aware that it is not in my character. But I have always been a big believer in the adage that “information is power” and I promised throughout my campaign to be open, transparent, and encouraging of participatory government—and that requires the hard facts! All taxpayers have a right and a duty to know how their tax dollars are spent, and how their government is funded.
Contact me if you have a question or an issue that needs to come before the Commission. I encourage you to attend Commission meetings and to stay abreast of the important matters being addressed by our elected leaders at every level of government. Only by staying informed can we truly protect our rights as citizens and maintain a strong defense of our liberties.
Doug’s District
By
Doug Smith, Delaware County Commissioner District 1
(Posted 2-10-2011)
As this column is being written, we are cleaning up after the fourth snowstorm in four weeks, including record-breaking snowfall and what may be the coldest day in Delaware County history. What a beginning to a new Commissioner's administration!
As I promised during the campaign, our focus has, and will continue to be, being responsive to our constituents and answering every call. Sometimes the answers were not what anyone wanted to hear, but they were always honest.
We appreciate the patience displayed by all, as well as the calls and letters we received letting us know we were appreciated during the worst winter storm ever to hit our community. And I would like to add my own heartfelt thank you to all the neighbors and citizens who used their private equipment to help others in need. You truly make our community a great place to live!
Since taking office, and with the help of my counterparts, several changes have been made. We are now pledging allegiance to the flag before every commission meeting, and no hats are worn by Commissioners in the meetings. This may seem like a small change, but we all felt that we owe our utmost respect to our flag and the values of our community when addressing the people's business in a public meeting.
As you know, our revenues are still very limited. Winter storm expenses will stretch those resources even thinner. I will expand on the financial effect of these historic weather conditions in my next column. Obviously, they will be significant, but we are resolved to deal with these challenges while continuing to provide quality services in a professional manner.
District #1 is in the process of selling unused and outdated equipment to secure badly needed funds to maintain and update equipment and to assure that safety standards are met. Also, we have reduced our staff to prepare for what will certainly be another round of budget cuts in Fiscal Year 2012. It is our goal to become as efficient and financially responsible as possible, as soon as possible.
In an effort to improve communication, I will be periodically publishing a column under the above title to keep the folks in District #1 and our community as a whole aware of issues that are currently under consideration or simply might interest you. I have also established a Commissioner's e-mail address (dougcommish@groveemail.com) and a web site (www.dougsdistrict.com). All of my columns will be posted and saved on the web site.
Last, I want to let you know that it is an honor and privilege to serve you and that I take the responsibilities of this office seriously. Thank you again for your patience and cooperation in these difficult times, and let me encourage all to continue reaching out to our neighbors and friends in need. Together, we can weather whatever storms lie ahead.
Quote: Any change in government should always lend itself to transparency.
