Cost Factors and Challenges
Multiple factors have contributed to the higher costs. Inflation has played a significant role, making construction and materials more expensive. Additionally, when lawmakers vetted the project in 2022, they anticipated making $50 million from the sale of the land at the aging Griffin Memorial Hospital in Norman. However, due to soft demand and possible building remediation costs, this amount has now dropped to $10 million.
Former leaders at the agency failed to include costs for furniture, fixtures, and equipment in the initial project estimates presented to the Legislature. This oversight has added to the financial burden. Mental Health Commissioner Allie Friesen took over in January and is now dealing with these issues.
Design Changes and Certification Concerns
The original design had bathrooms in hallways, which raised concerns about patient safety and certification. The new leaders at the agency worried that the facility might not be able to obtain certification if bathrooms were not in patient rooms. This led to the need for a redesign and additional costs.
As a result, the bed count at the Donahue Center may be slightly reduced to accommodate the need for bathrooms in patient rooms. This is an important consideration as the center was expected to have beds to treat 275 adults and 55 adolescents.
Budget and Legislative Process
Agencies had to submit their budget requests by Oct. 1, and the Donahue project's updated information has been submitted to legislators. Discussions about the shortfall are ongoing, and the Legislature committed $87 million in federal pandemic relief funds in 2022. The rest of the funding was to come from the sale of the Griffin land.
Speaker-Elect Kyle Hilbert stated that increasing mental health capacity in the state is a priority, and they are working to find ways to meet the needs within the constraints of the available funding. Hall expects the Department of Mental Health to continue using Griffin in Norman while waiting for the Donahue Center to open. Private treatment beds on a temporary, contract basis may also be needed.
However, Hall emphasized that he cannot make a decision to fill the funding gap without going through the legislative process. This highlights the importance of collaboration between the legislative and executive branches to address the challenges and ensure the successful completion of the behavioral health center.
Paul Monies has been a reporter with Oklahoma Watch since 2017 and covers state agencies and public health. Contact him at (571) 319-3289 or pmonies@oklahomawatch.org. Follow him on Twitter @pmonies.Oklahoma Watch, at oklahomawatch.org, is a nonprofit, nonpartisan news organization that covers public-policy issues facing the state.Latest Analysis for Wakachiku Construction
Wakachiku Construction's decision to increase the dividend shows its financial strength. The last dividend was comfortably covered by the company's earnings, indicating that a significant portion is being reinvested to fuel growth. However, it's important to note that EPS is expected to fall by 1.1% over the next 12 months if current trends persist. 1: This potential decline in EPS raises questions about the sustainability of the dividend in the long run. While the current payout ratio of 61% seems comfortable, it's crucial to keep an eye on how earnings develop. If earnings continue to decline, the payout ratio could become a concern. 2: On the other hand, Wakachiku Construction has a solid track record of paying stable dividends. Since 2014, the annual payment has grown at a remarkable rate of about 20% per year. This long history of dividend growth makes it an attractive option for income-seeking investors.Dividend Growth Challenges
Some investors may be eager to buy Wakachiku Construction's stock based on its dividend history. But there are challenges. Despite the dividend growth, the company's earnings per share has basically remained stagnant over the past five years. This could erode the purchasing power of the dividend over time. 1: It's essential to consider this aspect when evaluating the company's dividend potential. While the dividend itself is attractive, the underlying earnings need to keep pace to ensure the dividend's sustainability. 2: Additionally, external factors such as market conditions and industry trends can impact the company's ability to maintain and grow its dividend. Investors need to be aware of these risks and assess them carefully.Our Thoughts on Wakachiku Construction's Dividend
In summary, the ability of Wakachiku Construction to raise the dividend and keep it in a sustainable range is a positive sign. The current earnings coverage is acceptable, but with earnings on the decline, it's crucial to monitor the payout ratio closely. 1: This stock appears to have potential as a dividend stock going forward. However, past experiences have shown that the payout ratio can reach higher levels, which could pose a risk. Investors should be cautious and consider all factors before making an investment decision. 2: Overall, Wakachiku Construction offers an interesting opportunity for dividend investors. By analyzing the company's financials and considering various factors, investors can make more informed decisions about whether to include this stock in their portfolios.Valuation is a complex process, but our detailed analysis takes into account fair value estimates, potential risks, dividends, insider trades, and the company's financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Ocean City's Parking Solution - Ban on Construction Dumpsters
Construction Dumpster Ban
Ocean City has implemented an ordinance to completely prohibit construction dumpsters larger than 10 cubic yards from being parked on local streets, alleys, and the public right-of-way. Dumpsters of 10 cubic yards and smaller are still allowed during the day but are prohibited overnight starting at 6 p.m., except for emergency work approved by the city. This ban is part of a larger effort to address the trend of commercial vehicles and boat trailers monopolizing parking spaces. Without these dumpsters and trailers clogging the parking spots, more spaces will be available for regular traffic. Mayor Jay Gillian stated that increasing parking availability is a priority, and this measure is a step in the right direction.According to Councilman Keith Hartzell, hundreds of parking spaces will be freed up citywide by this new dumpster ordinance. He estimated that 700 to 800 parking spots will become available once the construction dumpsters and trailers are banned. To illustrate the current problem, Hartzell showed photos during the Council meeting of construction equipment blocking the streets. One congested construction site during the summer had half of the street taken up on one side.
At Hartzell's suggestion, the ordinance was amended to require that dumpsters be restricted to the front of the property where the construction is occurring. This is to prevent construction contractors from simply moving the dumpsters to other locations on the street. He blamed a small number of repeat offenders for the problems.
Boat Trailer Restrictions
In another effort to open up parking spaces, the city already bans boats and boat trailers longer than 22 feet from parking in local streets at any time throughout the year. However, for boaters' convenience, the city allows boats and boat trailers shorter than 22 feet to remain in parking spaces on the street for up to three consecutive nights. Councilman Terry Crowley emphasized that Ocean City is a boating community and doesn't want to penalize its boaters. This exception for boats and boat trailers 22 feet and under shows the community's commitment to finding a commonsense solution.Depending on their size, boat trailers are either banned or restricted from parking in the street. This helps in managing the parking situation and ensuring that there are enough spaces available for both regular traffic and boaters.
The ordinance also imposes penalties of up to $500 in fines and a jail term of up to 90 days, or both, for violators. Jail terms would be for the most egregious repeat offenders. Councilman Terry Crowley worked with Gillian's administration and the community to address the dumpster problem and is pleased with the outcome.