City Manager Eric Benson is optimistic about Enid’s future in spite of a decline in sales tax receipts.
Sales tax figures from Oklahoma Tax Commission show an average monthly decline in Enid of 5.73 percent through October 2009, compared to the same month in 2008.
Benson said assistant finance director Joan Riley predicted a decline of between 5 percent and 8 percent from last year. Benson said city government budgeting is “very conservative” and officials are taking advantage of an unexpected rise in 2008.
“We very typically budget very conservatively. We thought there would be a 3 percent rise last year, but it was 8 percent,” he said.
Because of a good year last year, the city is better able to withstand this year’s hard times.
“We can absorb the difference,” Benson said.
Benson said he is not worried about the economic future of Enid. He said the city is in far better economic shape than many other cities, because of the conservative management style.
“Enid always lives within its means and has for the last three years,” he said.
According to OTC, Enid sales tax receipts were up 6 percent in January, compared to January 2008. Sales tax receipts dropped 0.1 percent in February, 3.2 percent in March, 2.5 percent in April, 6.7 percent in May, 6.5 percent in June, 10.6 percent in July, as compared with the same month the previous year. In August, tax receipts were down 9.5 percent, then dropped 9.8 percent in September and 12.1 percent in October.
The October figures are the latest reported by OTC.
Benson said he does not know how long the city can sustain the trend, but all indicators say the downturn has stopped and sales will start back upward.
“Go to any restaurant and tell me people are having trouble making ends meet,” he said. “Enid is in an excellent position, it doesn’t trouble me. I don’t buy the national hysteria.”
Benson spoke Wednes-day from Virginia Beach, Va., where he said his family could not get into a restaurant for breakfast.
“I’m absolutely convinced Enid is in better financial shape than any city in Oklahoma,” he said. “My research tells me that. I don’t take credit for it but it’s the style of the city council.”
The city manager said Enid’s frugal management style has resulted in a balanced budget. The city has lived within its means and has not overspent, he said.