2020 brings new development and watchful eye on the economy for city leaders

Photo: City leaders and citizens in Elk City review the Community Action Project Plans that will include new recreational facilities in 2020, which city leaders hope will attract new visitors. (Photo provided/City of Elk City)

As a new year – and a new decade – has begun, municipal leaders across Oklahoma said 2020 will be a year of new developments and projects, continued discussions on ways to diversify revenue, observing new laws and state policies, and drumming up citizen engagement, especially in a big election year. 

Many city leaders said much of the focus in 2020 will be on the economy, especially with the recent downturn in oil production. 

“The decrease in the oil and gas sector is causing a slowdown in the economy and an increase in our unemployment numbers,” said Lee Litterell, city manager in Elk City.

Like many Oklahoma cities and towns, the energy sector plays an outsized role in the Elk City economy, where more than 140 local companies have a connection with the oil and gas sector.

But while Litterell said oil and gas will continue to be an important economic sector for Elk City, a downturn creates opportunity. 

“In this belt tightening time, the state may have a window of opportunity to attract new businesses not related to the energy sector,” Litterell said. 

In Bethany, city finances will also be a major focus in the new year, although not due to decreased oil and gas production,  said Mayor KP Westmoreland. “The focus of 2020 will be on raising our revenues, lowering our expenditures and streamlining all areas of the operations of the city.”

While Bethany faces unique financial issues, Westmoreland said cities across the state always feel pressure to raise more sales tax revenue, especially since it is the sole source of revenue for cities and towns.

“Oklahoma being the only state in America (where cities do) not receive any portion of property taxes, we are forced to depend on sales tax,” Westmoreland said. 

John Noblitt, city manager of Chickasha, said he expects cities to continue urging lawmakers to reconsider the structure of how cities raise money. 

“Municipal financing will continue to be the most talked about issue impacting cities and towns across the state,” Noblitt said. “It will be important for the Legislature to work towards allowing cities more flexibility in accessing the ad valorem rolls in Oklahoma as sales and use tax is too volatile. Coupled with the ever-increasing burdens related to the costs of police and fire most cities are finding it hard to fund other general fund services.”

With such a reliance on sales tax, many city leaders said the new year will bring new development projects designed to attract visitors and increase consumer spending.

“As Chickasha moves (into) the new year we will be looking at ways to continue our redevelopment momentum,” Noblitt said. “This includes a proposed downtown park and event venue, as well as a large-scale streetscape project funded through public private partnerships.”

In some cities there will also be an effort in 2020 to attract new jobs. 

In Lawton, Brenda Spencer-Ragland, president of the Lawton-Fort Sill Chamber of Commerce, said the city and chamber are working to create partnerships across the region to attract new jobs, especially high-tech positions. 

“What I am most excited about is the opportunity to forge new partnerships and relationships for the betterment of Southwest Oklahoma,” Spencer-Ragland said. “I continue to believe in the opportunities that exist with tourism and development in southwest Oklahoma and for our state.”

Spencer-Ragland said there will be a focus on leveraging tax incentives, especially through tax increment financing districts, to attract new growth. 

But she said it will be important for cities and towns to communicate with voters and encourage participation, especially in a big election year. 

“Our challenge remains as all cities, the ability to communicate with our voters and residents to make sure they understand the need and the incredible potential of creating a CIP and TIF District,” Spencer-Ragland said. “Voter apathy remains a challenge locally, and nationally.  We need voters to get out and vote. We have significant and important elections both locally and nationally, and we need voters to use their right to vote.”

Some cities will complete major quality of life projects in 2020, including in Elk City where recreational facilities are undergoing improvements with the hope of attracting new visitors.

“Our first major project for our Community Action Project Plans or CAPP's is installing synthetic turf on all of our baseball and softball fields is near completion,” Litterell said. “The second project is a 50,000 square foot activity center.”

Litterell said the activity center will include multiple basketball and volleyball courts, an indoor playground, small cafe and an indoor walking track. 

“This project will improve the quality of life for the citizens of Elk City and will allow us to host more basketball and volleyball tournaments which will increase the tourism dollars spent in Elk City thus helping sustain our local businesses,” Litterell said. 

Several city leaders also told the Oklahoma Municipal League they will be paying close attention to new state laws that have recently gone into effect, including expansion of firearm rights.

Edmond city manager Larry Stevens said 2020 would be a year to observe the “unintended consequences of open carry in public parks,” referring to a new state law that allows most citizens to carry a firearm in parks and zoos. 

The ongoing dispute between Gov. Kevin Stitt and tribal nations over casino gaming compacts will also be closely watched by city leaders, especially in towns where tribal casinos are located. 

In Chickasha, where multiple tribal casinos play an important part of the regional economy, city manager Noblitt said the gaming compact issue would be a major focus in 2020.

“Just for my community, we are keeping a pretty steady eye on it,” Noblitt recently told the Tulsa World. “We realize that whatever money that the compact says goes to the state in the future could affect some of these things we just talked about. It could limit our ability to get funding through the tribes.”