HomeMy WebLinkAbout05/08/2012 03 Council General Information 1.411/
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: May 8, 2012
ITEM TITLE: Council General Information
SUBMITTED BY:
CONTACT PERSON/TELEPHONE:
SUMMARY EXPLANATION:
1. City Meeting Schedule for week of May 7 -14, 2012
2. Preliminary Future Activities Calendar as of May 7, 2012
3. 5/2/12 Weekly Issues Report
4. Preliminary Council Agenda
5.4/24/12 Letter from State of Washington Recreation and Conservation Office regarding the
Yakima 2012 -2017 Parks and Recreation Comprehensive Plan
6. AWC Training & Education schedule regarding "Where's the Line? Roles & Responsibilities of
Elected Officials"
7. Newspaper /Magazine /Internet Articles:
* "Toronto's Municipal Service Review," Government Finance Review, April 2012
* "Incremental Changes Can Yield Big Savings over Time," Government Finance Review, April
2012
* "The Road Less Traveled," Public Management, May 2012
Resolution Ordinance Other
(specify)
Contract: Mail to:
Contract Term: Amount: Expiration Date:
Insurance Required? No
Funding Phone:
Source:
APPROVED FOR
SUBMITTAL: City Manager
STAFF RECOMMENDATION:
BOARD /COMMISSION RECOMMENDATION:
ATTACHMENTS:
Click to download
No Attachments Available
CITY MEETING SCHEDULE
For May 7, 2012 — May 14, 2012
Please note: Meetings are subject to change
Monday, May 7
3:30 p.m. John McAlister Crystal Apple Awards Ceremony — Convention Center
Tuesday, May 8
11:00 a.m. City Council Special Meeting — Council Chambers
1:30 p.m. County Commissioners Agenda Meeting — Council Chambers
3:30 p.m. Bid Opening — Council Chambers
Wednesday, May 9
11:00 a.m. Boundary Review Board Meeting — Council Chambers
3:30 p.m. Yakima Planning Commission — Council Chambers
5:30 p.m. Parks & Recreation Commission — Council Chambers
Thursday, May 10
9:00 a.m. County Hearing Examiner — Council Chambers
1:00 p.m. Harman Center Board Meeting — Harman Center
1:30 p.m. Yakima Regional Clean Air Meeting — Council Chambers
4:00 p.m. GFI Steering Committee Meeting — CWCMH
Monday, May 14
10:00 a.m. City Council Media Briefing — Council Chambers
3:00 p.m. Bid Opening — Council Chambers
Office Of Mayor/City Counci
Prelirninary Future Activities Calendar
Please Note: Meetings are subject to change
Organization, `�� `��'K8�etngPq' � 'Participants d.tmcdti
iterinne ~ y - �. . �� � '^ � �� * ~`~ '. � ~` ^ -``
,� ' ��� '� �
�-_~ _ .
Mon. May 7
3:30 p m. John McAlister Crystal Scheduled Event [)pan Yakima Convention Center
.
Tue. 80ayB
11.00 m.rn. City Council Special Scheduled Meeting Council Council Chambers
Meeting - Review City
Manager Employment
Agreement
4.00 p m. DYBID Advisory Board Scheduled Meeting Bristol CED Conference Room
'--~~------~~~ nnSedn•�____~~____�____
Wed. May 9
1.00 p m. Welcome WA Association Scheduled Event Cawley Convention Center
of School & Business
Officials
3 30 p.m Yakima Planning Scheduled Meeting Ensey Council Chambers
Commission
5 30 p.m YCDA Member Reception Scheduled Event Cawley Gilbert Cellars
5 p.m. Parks Commission Meeting Scheduled Meeting Adkison Council Chambers
7. May 10
00 p m. Harman Center Board Board Meeting Adkison, Cawley Harman Center
Meeting
1 00 p.m Yakima Regional Clean Air Scheduled Meeting Lover Council Chambers
Meeting
4 00 p m. GFI Steering Committee Scheduled Meeting Adkison, Coffey, CWCMH
K8eeUn•
Ettl ,_~____-__~_�_^~,_____________~___
Mon. May 14
10 00 a m City Council Media Briefing Scheduled Meeting Adkison Council Chambers
Tue. May 15
10 00 a m. Corridor Project Meeting Scheduled Meeting Cawley YPD Special Ops Training
Room
12:00 p m. Miscellaneous Issues Scheduled Meeting Cawley, Adkison TB[}
2.00 p m Yakima County Gang Scheduled Meeting Adkison YPD Special Ops Training
Commission Room
4 City Council Executive Scheduled Meeting Council Council Chambers
Session
6:00 ..m. Qt Council Meeting 8cheduledMeeUn" Council Council Chambers ~~��
Wed. May 16
120O".n.__'___ PAL Board � Board Meeti•
___ Coffe PAL Center ~�
Thur. May 17
5 30 . m YCDA Board Meetin. Board Meetin. Adkison New Vision Offices
Fri. May 18
8.00 a m. Welcome Association of Scheduled Event TBD
Letter Carriers
Sun. May 20
5 00 p m. 3rd Annual EMS Awards Scheduled Event Open Capitol Theatre
Ceremon
Mon. May 21
8 30 a m. Pension Board Meetings Board Meeting Coffey HR Conference Room
5 •.m. Airport Stud Session Scheduled Meetin. Adkison Airport Conference Room
Tue. May 22
10:00 a.m. City /County Joint Study Scheduled Meeting Council Council Chambers
Session
1200 •.m Miscellaneous Issues Scheduled Meetin. Cawle , Adkison TBD
Wed. May 23
12.00 p m YVVCB Board Meeting Board Meeting Adkison YVCC Winery Training
Facility
4 30 p.m. Arts Commission Scheduled Meeting Adkison CED Conference Room
5.30 p.m. Historic Preservation Scheduled Meeting Bristol Council Chambers
Commission
7 p.m. Regional Stormwater Policy Scheduled Meeting Lover Harman Center
Grou
Thur. May 24
T30 a m Airport Board Meeting Board Meeting Adkison Airport Conference Room
11 15 a m Lincoln Avenue Underpass Scheduled Event Council Lincoln and 1st Street
Dedication Ceremony
11 45 a m YVVCB Annual Meeting Scheduled Event Open Yakima Convention Center
1.30 p m. County EMS & Trauma Scheduled Meeting Lover Yakima Regional
Council
2 00 p m TRANS - Action Committee Scheduled Meeting Ettl County's 1st Street
Meeting Conference Room
3 30 p m YAKCORPS Executive Board Meeting Cawley CED Conference Room
Board
MEMORANDUM
May 3, 2012
TO: The Honorable Mayor and City Council Members
FROM: Michael Morales, Interim City Manager
SUBJECT: Weekly Issues Report
• BOND REFUNDING: The Preliminary Official Statement for the water /wastewater
revenue bond issue was distributed to investors on Wednesday, April 25. We were
notified earlier this week that Standard and Poor's affirmed the credit rating of AA-
for the combined water /wastewater system.
• DOWNTOWN MAINTENANCE: The Millennium Plaza and Tattoo Park will be
mowed today or tomorrow morning ahead of Cinco de Mayo. Streets will be
sweeping very early Monday morning after the event. The flower basket contractor,
Garden Girl (Lynette Reihl), believes she should wait one week due to weather
issues. This would result in the baskets going up the week of May 14th. The other
plantings could go in next week while we have the additional CDY staff on board.
This would be in the many planters and corners of intersections.
• SPECIAL MEETING: Mayor Cawley requested a special meeting be scheduled on
Tuesday, May 8 at 11:00 a.m. to review the terms of the City Manager's employment
agreement. The Study Session that was scheduled at 10:00 a.m. that morning will
be rescheduled.
• DYBID ADVISORY BOARD: The DYBID Election process has closed. The new
Board members have been notified and will have their first meeting on Tuesday,
May 8 at 4.00 p.m. in the CED Conference Room. The Board members are: Kathi
Bonlender, Verlynn Best, Brad Christianson, Joe Mann, Larry Hull, Rhonda Ostriem,
and Steve Buck.
• LINCOLN AVENUE UPDATE: Final lifts of pavement were placed and the lanes
were striped this week. Front Street continues to be reconstructed. A final
construction wrap -up list will be compiled the end of next week. A Dedication
Ceremony is scheduled for Thursday, May 24 at 11:15 a.m.
• ASSOCIATION OF WASHINGTON CITIES CONFERENCE: The Association of
Washington Cities Annual conference is scheduled for June 19 -22 at the Hilton
Vancouver Convention Center. If you are interested in attending please let Cally
know so she can get you registered. The hotel fills up quickly so if you are
interested in attending you need to let Cally know as soon as possible.
• UPDATE ON DOG SEIZURE: As reported on KIMA last night, the City filed 23
charges against Evelyn Dauenhauer for the 47 dogs that were removed from her
property last. month. The citations issued include: 10 counts of animal cruelty; 9
charges for possession of a pit bull; 1 charge for not having a pet license; 1 charge
for keeping animals in a nauseous environment; and 1 charge for operating a kennel
without a license. If convicted and given the maximum penalty for each charge, Ms.
Dauenhauer could be fined more than $56,000 and serve up to 11.5 years in jail.
Ms. Dauenhauer's arraignment is scheduled for May 10, 2012.
• WEBINAR OFFERED BY AWC: AWC offers a "Where's the Line? Roles and
Responsibilities of Elected Officials" webinar. The course details the roles and
responsibilities of elected officials and helps you clearly understand the differences
between the mayor /council and council /manager forms of government. If you are
interested in this webinar, please let Cally know and she will make the necessary
arrangements.
• CITY MANAGER LEAVE: I will be out of the office most of the day on Tuesday,
May 8 and the morning of Wednesday, May 9. I am requesting that I be excused
from the special meeting scheduled on Tuesday morning. City Attorney Jeff Cutter
will be the Acting City Manager in my absence.
PRELIMINARY FUTURE COUNCIL AGENDA
May 15
4:30 p m. Executive Session — Council Chambers
6:00 p.m. Business Meeting — Council Chambers
• Resolution of the City of Yakima Transportation Benefit District concerning a voter -
approved license tab fee to pay for transportation needs; submitting a ballot
measure regarding transportation funding to the qualified electors of the City of
Yakima Transportation Benefit District at an election to be held on November 6,
2012; authorizing the Yakima County Prosecutor review ballot title; and requesting
that the Yakima City Attorney prepare an explanatory statement for Yakima
County's local voter's pamphlet (tabled on 4/17)
• Resolution authorizing the City Manager to execute the attached engineering and
consulting services agreement with Gray and Osborne, Inc. for engineering and
consulting services associated with the Water Utility Advanced Metering
Infrastructure Request for Proposals
• Resolution authorizing the City Manager to enter into contract with Brown and
Caldwell Consulting Engineers in an amount not to exceed $360,897 to provide
engineering services for design and installation of required fine screens and
associated equipment upstream of the primary clarifiers at the City's Wastewater
Treatment Plan
• Resolution authorizing a Professional Services Contract Agreement with Financial
Consulting Solutions Group, Inc., in an amount not to exceed $27,000 to develop a
water Cost of Service and Rate Study Update
• Resolution accepting a donation of public artwork from the Arts Commission
• Review Central Washington Homebuilders Proposal
• Resolution authorizing the City Manager to execute an amendment to the
agreement with MagaIlan Consultancy for Gang Free Initiative services
• Yakima Police Department 2011 Annual Report
• Review first quarter financial reports:
o Accounts receivable
o Court report -
7:00 p m. Public Hearings
5/3/2012
11:25 AM
1
Natural Resources Building (360) 902 -3000
0
::.: _ _
1111 Washington St. S.E. °°
TTY (360) 902-1996
Olympia, WA 98501 t M1:1'
_• Fax (360) 902 -3026
Box 40917 � ,a ° E -mail into@rco.wa.gov
mpia, WA 98504 -0917 Web site www.rco.wa.gov
STATE OF WASHINGTON
RECREATION AND CONSERVATION OFFICE
April 24, 2012
Kenneth Wilkinson
City of Yakima
2301 Fruitvale Blvd
Yakima, WA 98902
Dear Mr. Wilkinson:
The Projects Division of the Recreation and Conservation Office (RCO) has reviewed the
Yakima 2012 -2017 Parks and Recreation Comprehensive Plan and finds it meets the planning
requirements as specified in Manual #2, Planning Policies and other related manuals. We are,
therefore, pleased to inform you that your agency is eligible to participate in all RCFB grant
programs as listed on the enclosed report.
It should be noted that to retain grant eligibility in future years, it is essential we be notified of
any major amendments to the plan as they occur. Your plan may be used in the evaluation of
projects submitted for grants. An incorrect or incomplete plan may impact your project's
evaluation.
If we can be of further assistance relative to your park, recreation, or conservation planning
program, please feel free to contact me at (360) 902 -3009 or e -mail
lorinda anderson@rco wa.gov.
Sincerely,
h (LA/4,
C
Lorinda A. Anderson
Resource Planner
Enclosures
Recreation and Conservation Funding Board o Salmon Recovery Funding Board
Washington Invasive Species Council Governor's Salmon Recovery Office , CIM
a.cr,,tl Habitat and Recreation Lands Coordinating Group
2012 Plan Eligibility Status
Yakima Parks & Recreation
Plan Name: Yakima Parks and Recreation Comprehensive Plan Adoption Date: April 19,_2006
Plan Restriction: Expiration Date: April 19, 2012
Primary Contact: Waiver Date:
Secondary Contact:
Eligible Programs: Boating Facilities - Local
Land and Water Conservation
WWRP - Local Parks
WWRP - Trails
WWRP - Water Access
Plan Name: Yakima 2012 -2017 Parks and Recreation Comp Plan Adoption Date: April 17, 2012
Plan Restriction: Expiration Date: April 17, 2018
Primary Contact: Kenneth Wilkinson, City of Yakima Waiver Date: May 4, 2012
Secondary Contact:
Eligible Programs: Boating Facilities - Local
Land and Water Conservation
NOVA Nonhighway Road
NOVA Nonmotorized
NOVA Off-Road Vehicle
WWRP - Local Parks
WWRP - Trails
WWRP - Water Access
2012 Planning Deadlines for Grant Eligibility
Comp Plan
Program Final Due Date
Boating Facilities Program March 01, 2012
Land and Water Conservation Fund Program March 01, 2012
Nonhighway and Off -Road Vehicles Program March 01, 2012
Washington Wildlife and Recreation Program March 01, 2012
Ineligible Programs: Boating Facilities - State
WWRP - Critical Habitat
WWRP - Natural Areas
WWRP - Riparian Protection
WWRP - State Lands Development
WWRP - State Lands Restoration
WWRP - State Parks
WWRP - Urban Wildlife
AWC > Where's the line? Roles & responsibilities of elected officials info Page 1 of 1
.ten ,...
ten :f. r • � SEARCH ► . 4,....
7
'4 -61 1 ' * 1 li
M , • 0"r er■icik Ar •
\41 (1 . ; ( 341 "
OF ASSOCIATION 4r t s I)
WASHINGTON h,•
OF WA3IHGTQlI
..... ,
Ci iES O a
7
LOG IN INSURANCE LEGISLATIVE PROGRAMS TRAINING a JOBNET
ADVOCACY Et SERVICES EDUCATION
Calendar Training Et Education ' On- demand training >, Where's the line? Roles ft responsibilities info
Certificate of Municipal
Leadership (CML) Program Training Et Education a
Conferences a.s.<= .. ,'
Materials 114ylliClpa/ 4
On- demand training Where's the Line? Roles Et Responsibilities of Elected ,, _
Scholarships Officials -: �.0
Other training resources
Explore the roles and responsibilities of Washington city elected officials. Where's the Line?
Roles and Responsibilities of Elected Officials takes a look at the branches of government and Ox i+a,,, flgimrii � 5
helps you clearly understand the differences between the mayor /council and council /manager
forms of government. The module also explores types of meetings and expectations and Earn 1 credit toward your
provides you practical advice and ways to check your understanding along the way. So Jump Certificate of Municipal
online and learn at your own pace. Leadership and meet the roles,
Registration responsibilities ft legal
requirement.
Membei i egistration
• One person - $40
• Small group (2 -4 members) - $80
• Large group (5+ members) - $120
Other registration - $60 per person
For cities and towns under 5,000 population, scholarships are available.
For cities over 5,000 and experiencing financial difficulties, Washington Cities scholarships may
be available.
Questions?
Karen Tanner
karent@awcnet.org
Registration or cancellation questions
registration1awcnet. org
(360) 292 -4391
Quick Links
0 About Us CityVoice National League of Cities
Annual Conference CPI data Center for Quality Communities I l 7 i
Associate membership MRSC State Legislature
Cityvision Municipal Excellence Awards Your city tools
Contact Us welcity
1076 Franklin St. SE Olympia, WA 98501 I 360 - 753.4137 1 Site Map I Privacy Statement 1 Terms Of Use I Copyright C32011 2011 Association of Washington Cities
http: / /www.awcnet. org /TrainingEducation/ Ondemandtraining/ WheresthelineRolesresponsibilitiesinfo .aspx 5/3/2012
i
teal Sane
+0 Ce ;.
i
�° . E MINING
i r
SERVICE
_ LEVELS
K.
. i_
BY JOSEPH PENNACHETI ( ii____ .
AND CAM WELDON
I n today's environment of permanent reductions to the $774 million for 2012, the result of successive budgets using
resources available to local governments, public offs- one -time revenues to offset an operating funding pressure.
cials and the community need to reconsider what ser- This shortfall could not be addressed by trimming around
vices their government provides and how it provides them. the margins, and raising taxes beyond inflation was not an
In many cases, public officials look to the budget process as option — Toronto wasn't legally prohibited from raising
the vehicle for accomplishing this kind of reform. However, taxes, but the political environment made doing so a practi-
managers and elected officials are often too preoccupied cal impossibility.
with putting numbers together to comprehensively consider
The city was considering its options. It reviewed the poten-
fundamental changes in how services are delivered.A service tial for selling underused assets and using the proceeds to
review approach can be used as a separate planning process fund higher -value capital investments, thereby reducing debt
for considering the service delivery role of local government,
borrowing and debt servicing costs. It also initiated a volun-
away from the immediate pressure of building a budget.
tary separation program in early 2011 to help divisions reduce
A service review is a planning method used to examine the the size of the city workforce, supporting the budgeting pro -
following questions• cesses for 2012 and beyond. Where appropriate, third -party
mi What services should a government provide? consultants provided expert advice and analysis to help the
city manager and staff make decisions on an aggressive time
a What level and quality of service does the community
table.
require?
Is the service provided efficiently Fundamental changes were needed, requiring the city to
ti How should these services be funded? examine the programs and services it delivered. Toronto
undertook a service review program to help address its finan-
cial challenges and to lay the foundation for multi -year plan -
Planning in Toronto ning and service delivery that would allow the city to meet
its objectives in 2012 and beyond. The city's service review
The City of Toronto, Ontario, received the GFOA Award for comprised three major components:
Excellence in Government Finance in 2006 for its long -term Core Service Review. The review set the foundation for
financial plan The financial plan was an important driver for what services the city delivers and at what level, as well
the city's service review program because rt highlighted the
as providing advice about where constrained funding
financial imperative for reforming the citys service offenngs.
dollars should be spent.
Id Service Efficiency Study Program. In -depth studies in
These kinds of questions were pressing to the City of Toronto, select program areas identified opportunities for deliver
Ontano. City staff had considered budgeting methods such as ing services more efficiently.
zero base budgeting (ZBB), but staff didn't think ZBB would is Comprehensive User Fee Policy. The city established
adequately tell the story of what the city was spending, and a user fee policy and framework to assess all city services
how. (See "Zero -Base Budgeting: Modem Experiences and and determine the extent to which services should be
Current Perspectives" in this issue of Government Finance funded directly by users, property taxes, or some combi-
Review for more information on ZBB, including useful alter- nation of the two, based on who derived the direct ser-
natives) This article describes how Toronto used a municipal vice benefits: the user, the community, or both
service review to address the four fundamental questions
listed about the services the city provides CORE SERVICE REVIEW
The phrase "core services" is often used during times of
REVIEWING PROGRAMS AND SERVICES budgetary distress to denote the services that should be
In early 2011, the city was facing a projected shortfall of spared from deep cuts. However, this term is often so poorly
April 2012 1 Government Finance Review 17
defined that it doesn't clarify what makes a core service dif- service data, along with comparisons to similar municipal
ferent from others. Toronto retained a third -party consultant jurisdictions, the consultant concluded that 15 percent of
to undertake a core services review, working with city staff to city services were delivered above standard. Finally, the
develop a four -part "core continuum" of priority program and consultant also reviewed the city's service delivery role (for
service delivery areas, defining them as. instance, providing funds, setting regulations).
U Mandatory: Mandated by legislation from the federal or A significant percentage of city services were classified as
provincial government. mandatory or essential on the core continuum, providing
in Essential: Critical to the operation of the city. Without limited opportunity for significant change in many program
the service, the city would stop functioning areas Despite these limitations, a number of opportunities
iii Traditional: A service provided by nearly all large were identified for generating cost savings and potential
municipalities for many years efficiencies. Adjustments were recommended in areas where
u Other: A service provided in response to particular com service levels were above standards and /or the service was
m discretionary. The consultant also identified a range of
unity needs, based on a positive business case or other
specialized purpose opportunities for increasing efficiency and saving money,
including:
Through a financial planning and reporting system proj • Gaining economies of scale by consolidating similar ser-
ect, the city has established an inventory of service data,
vices that were operating independently, this would allow
including service purposes, service standards and current the city to spread fixed costs over a larger user base. For
service levels, performance metrics, and customer groups
example, some permitting services are currently provided
This information is used as the basis for Toronto's multi -year, by district, and delivering these services on a citywide
service -based planning and budgeting Using the service map
basis could create savings
structure and profiles developed by the financial planning
•
and reporting system project, each city service was classified Re examining the mix of services delivered in-house and
along the core continuum. Based on this data, the consultant through third party contracts with the private and non
ranked 90 percent of services as core — required by legisla profit sectors, and potentially changing sourcing strate
tion or essential to the effective functioning of Toronto's gov- gies
ernment. Another 8 percent of services were considered tra- • Reviewing long -term planning goals that might serve a
ditional — contributing to the quality of life and health of the specific policy objective but are costly to achieve, reveal -
economy — and 1 percent of services were discretionary. ing areas where money could be saved For example,
Toronto has an ambitious long -term goal for the rate of
In addition to defining city services along the core con -
waste diversion from landfills to recycling. However,
tinuum, the city compared the level
of service provided to a standard
upon examination, the cost per ton
informed by a range of sources legis Toronto undertook a service to use the landfill was less expensive
lation, industry leading practices, busi- review program to help address than further improving the recycling
rate, and this cost differential would
ness case justification, and /or other its financial challenges and to lay
be exacerbated as the city tried to
municipal benchmarks. The financial
planning and reporting system data the foundation for multi -year recycle more challenging types of
provided the consultant with estab- planning and service delivery that materials to increase its total diver -
lished service standards and current would allow the city to meet its sion rate.
service levels, as well as the basis for The consultant identified more than
objectives.
legislation or an external agreement, 100 opportunities for eliminating,
industry best practice, council policy, divesting, reducing, or otherwise mod -
or management discretion Using this ifying services, for a total estimated
18 Government Finance Review 1 April 2012
savings of between $200 million and selected to conduct the studies and
$300 million. The phrase 'core services is often provide the city manager with advice
The City of Toronto also undertook used during times of budgetary and recommendations, considering
an extensive public consultation pro- distress to denote the services that the following strategies within the
cess that provided useful insight into scope of the study: business process
P g should be spared from deep cuts.
which services are important to con- and work methods streamlining, orga-
However, this term is often so nizational restructuring, outsourcing;
stituents. Approximately 13,000 indi-
viduals provided input via a web- poorly defined that it doesn't clarify automation, shared services; service
based form, and many other residents what makes a core service different
innovation; and service adjustments.
participated in public roundtable dis- from others. Additional areas of focus were also
cussions held around the city. Among identified in specific program areas,
many interesting results, the city found based on city staff's knowledge of
that "transparent and accountable where opportunities might lie. To illus-
government" was the top policy issue trate, the Toronto Public Library also
priority (90 of 100 points), while "fair and affordable taxes" suggested reviewing opportunities to rationalize services,
was the lowest (67 of 100 points). The consultation also such as reconsidering library locations, days and hours of
revealed that public transit, fire services, and water treatment operations, and use of space, in light of demand from con -
and distribution were the three most vital services, while the stituents. It also recommended looking at means by which
zoo, theaters, and courts were the least. As a result, the city the library might use technology to deliver content electroni-
moved forward with divestment of the zoo and theaters. cally and opportunities for streamlining work processes for
The city's executive management and elected officials borrowing and returning physical media (since these are
reviewed the opportunities identified by the consultant, time and resource intensive), including pilot projects using
also considering the results of the public consultation
pro —technology to automate elements of these processes
cess, the estimated financial benefit and risk associated
with the opportunities, and larger service priorities Some
opportunities were adopted for immediate implementation,
while others required further study or a longer lead time,
and some recommendations were not approved. Toronto
included approximately $42 million in net savings that had
been identified through the core service review process in
the 2012 recommended operating budget. Further savings are -_
expected to be identified in future budgets as implementa-
tion proceeds.
SERVICE EFFICIENCY STUDIES
The service efficiency study program entailed a detailed
look at specific program areas, 15 of which were selected
for review in 2011 and continuing into 2012. So far, service
efficiency studies have been completed in three major agen-
cies (Toronto Police Services, Toronto Transit Commission,
Toronto Public Library) and in several city divisions (includ-
ing Solid Waste Management, Transportation Services, and
jai Shelter Housing and Support).' Third -party consultants were
April 2012 1 Government Finance Review 19
Consultants, working with city staff, Altogether, the service efficiency
examined baseline information for The city compared the level of review studies identified potential sav-
each service. This included the results service provided to a standard ings estimated at $167 million to $249
of the core service review, financial informed by a range of sources: million that could be realized in 2012
and budget data organizational and future years, including one -time
charts, staffing information, relevant legislation, industry leading practices, and ongoing financial benefits The
policies and council directions, and business case justification, and /or city hasn't finished going through all
business process data. Consultants other municipal benchmarks. of the recommendations to establish
assigned to each program area under which ones appear most viable.
study were guided in their analysis by
broadly similar scopes of work, which USER FEE POLICY
helped provide for some consistency To solidify the city's financial posi-
in the approaches without being overly prescriptive about tion, it needed to do more than just cut costs. It also needed
the form the studies would take. Consultants were engaged to enhance revenue. User fees are a natural, and often prefer -
to lead the studies (including developing a more specific able, alternative to taxes because the user of the service bears
approach to the study), and they worked closely with staff cost of the service. A user fee policy clanfies a government's
to develop final recommendations For example, consultants intent for how fees will be used, thereby making it possible
interviewed key staff members, conducted staff focus groups, for fees to be used more widely and consistently. Such a
and worked with executive management to formulate recom- policy is particularly valuable if it clarifies features of fees that
mendations are potentially controversial, including how indirect costs
Each study resulted in a final report to the city manager
such as administrative overhead and use of capital assets will
that proposed cost - saving measures. The recommendations
be reflected, annual escalation of fees (so the fee structure
doesn't become obsolete), and situations where less than 100
encompassed a variety of approaches to reducing costs,
percent cost recovery is acceptable (i.e , subsidization).
including improvements to business processes, investing in
technology, outsourcing, consolidating resources, and shar- The Toronto City Council adopted a user fee policy to pro -
ing services among departments. Some of the recommenda- vide unambiguous direction on how fees would figure into
tions built on measures staff were already advocating and /or the city's revenue portfolio. Some key principles of the policy
pursuing, while others were new. Going back to the library include the following.
example, the consultant's report in this area expanded on A fee will be charged to recover the full cost of a service
staff's view that more content should be delivered to library that provides direct benefits to identifiable groups or
users electronically, but also challenged staff to be more business.
discerning about the value of some of its programs to the i The full cost of providing a service, including overhead
public. and capital costs, will be the starting point for setting any
In total, the study identified approximately $10.5 million in user fee.
potential capital and operating savings. This included $52.1 s Subsidies are permissible in certain situations For exam -
million from the Toronto Police Service, based on adjusting ple, services that provide benefits to the general public
how incoming calls are handled, changing shift schedules, (in addition to the benefit provided to the customer) are
turning certain duties over to civilians, and consolidating candidates for a subsidy, the level of which would be
dispatch desks. Another $10 9 million was identified from approved by the city council.
Toronto Solid Waste Management, primarily based on chang- a Explicit criteria for waivers and rebates for groups of indi-
ing how routes are designed and staffed, but also by making viduals or businesses should be established and based
other minor efficiency improvements and changes to the on considerations such as ability to pay and equitable
waste collection fee structure. access.
20 Government Finance Review 1 April 2012
• Fees will be automatically adjusted for annual inflation at
the beginning of each year. • Each fee will be reviewed in depth at least once every
four years to ensure its compliance with the policy. Less
intensive reviews will be done every year as part of the -
budget process.
With the policy in place, the city was able to identify oppor-
tunities leading to $20.1 million in incremental revenues from -
the introduction of new user fees and changes to existing user
fees. For example, a 10 -cent fare increase will generate an
additional $30 million for the Toronto Transit Commission.
SELLING UNDERUTILIZED ASSETS
Municipal governments often own underutilized assets,
especially in the form of vacant land and possibly even
including underperforming government enterprises. In some
cases, these assets are more valuable to private concems,
and the resources from the sale can be used to pay down
pressing liabilities. In Toronto's case, the city's general debt
load had been growing to the point that debt servicing costs
were approaching the city's self- imposed limit of 15 percent
of property taxes. Hence, the city explored the possibility
development corporation called "Build Toronto" that can
of selling two municipally owned power companies and a help in increasing the value of available parcels.
municipal parking operation. As might be expected, the
prospect of selling municipal assets raised some objections VOLUNTARY SEPARATION PROGRAM
among elected officials To help alleviate these concerns, city Personnel make up the biggest part of the cost structure
staff proposed selling partial shares in one of the utilities in a for most municipal governments. Hence, reducing costs
way that would allow the city to keep a controlling interest, would require reducing the number of municipal employees.
while bringing in additional funds. Currently, the city is pro- Toronto wanted to take a humane approach to reducing the
ceeding with the sale process for one power company, with size of its labor force, so it developed a voluntary separation
the final sale contingent on finding a buyer that is willing to program. This program offered a one -time payment of an
offer sufficient compensation, among other things. The sale of amount equal to three or four weeks of salary for every year
the other might be considered later. served for non - management and management staff, respec-
tively (not to exceed 26 weeks).
The prospect of translating vacant
land into revenue was complicated A user fee policy clarifies a The program generated great inter -
by the fact that the land was of widely est and resulted in approximately
governments intent for how 1,100 applications, of which a roxi
varying potential value to the city and pp pp
to private parties. The city planned fees will be used, thereby making mately 200 were approved; the rest
to use the core service review to find ft possible for fees to be used of the positions were deemed too
any instances where a service might important to eliminate. A one -time
more widely and consistently.
have more real estate assets than they cost of $41 million resulted in an
—
required for providing services. The annual budget reduction of $58.9 mil -
city also operates a local economic lion. Management had a high degree
April 2012 1 Government Finance Review 21
The recommendations encompassed a variety
___-
C a ! * / a of approaches to reducing costs, including
� (�I �C Commercial Banking Group
E Geucrnn,ent can ing improvements to business processes, Investing in
technology, outsourcing, consolidating resources,
BUIL N
0 and sharing services among departments.
of discretion in approving the applications, so employees in
key positions or where the underlying position could not be
People rely on you to keep the community eliminated were not approved, keeping the city from losing
up and running.
key people.
And we wan t to know you Gen ray en us,
Th w hy L pit�I One Ban ker offers you �. I nfFSSioinr�ls CONCLUSIONS
ER
VIC
�r .�ho ai t i eI1 .ed in +ii • r �nlun.
industry: You'll have , decIewL d Raaticnship ivlarr jee The City of Toronto is still working through the entire
, :11' cc r :an help with everyti'rin tram rn i a h flow municipal service review process, so conclusive final results
o In w icl Ir- ,��drng so you car get the n =sourc�w are not yet available. However, this approach shows clear
you n ee d t rho i O i tot yo ui cornm i.ir�i y' promise and several lessons can already be taken from
Toronto's experience. For one, the city's capabilities for long -
WE KNOW GOVERNMENT BANKING term financial planning and financial data analysis provided
Chip Motil, SV lea of Gwt;rnr,- cnl B�rt;ir7 ..."' a sound foundation for the work on the various initiatives.
b t :) u r chi . n iotil�����at';i als
Also, it is important to allow enough time for thoughtful
review. A compressed timeframe compromises the quality of
the review, so it can be helpful to decouple the service review
process from the budgeting process (although the two should
„' - be coordinated). Finally, the public needs to be engaged
`. adequately. The decisions made can have an immediate and
,," _- . _ major effect on citizens, and it is important to hear their con
an HALL cerns, as well as positive suggestions, as part of the process. 1
w ti = Note
+w 1 The final reports for completed sennce efficiency studies are available
■ on the city's service review website at http: / /www toronto.ca /torontoser-
.i'. vicereview /efficiencystudies.htm
JOSEPH PENNACHETTI is city manager of Toronto, Ontario. CAM
WELDON is deputy city manager and chief financial officer.
MEMBER and services offered by Capital One, N A , Member FDIC
F D I C C2012 Capital One Capital One is a federally registered service mark. The authors would like to acknowledge the contributions of Josie Lavita,
All rights reserved director, financial planning, and Lynda Taschereau, corporate lead - service
review program.
22 Government Finance Review 1 April 2012
•
A
\ \ 1 , '
-,,,, 1 , i :::/:,___,.,,,„.......,. ., _ ti
yy
L L Int 1 L ' --_ , '
IL _..., ,s, \ ' ,,,, , L ii
/ / p
----7-1.-- i' k
�: ;;/ +` _ ?max
At- h t ik
/ i, tit Lit ' i t i t 1\
___ L i \ N '
/ / \, \
Incremental
M . ,iii
Changes
4.
Can Yield
Big Savings
over Time
BY LAURIE VAN PELT
A s governments across the country attempt to elimi Eliminating the golden handcuffs for future employees can
nate deficits and balance their budgets, the results vastly reduce employee resistance to making benefit chang-
are often drastic cuts to citizen services, employee es It can take several years, though, before a government
lay -offs, and steep reductions in salaries and benefits for the can realize significant savings from prospectively changing
remaining employees.The recent economic environment and benefits But, like a snowball rolling downhill, a change that
the still- depressed real estate market are the primary reasons starts out small can pick up impressive momentum.
for the immediate financial woes that face most governments Oakland County, Michigan, attributes much of its budget -
today; however, there could be more financial woes on the ary success to long -term financial planning, including proac-
horizon, perhaps as a result of unfunded pension and other tive employee benefit reforms. The county has implemented
postemployment benefit (OPEB) obligations. When govern these reforms in increments over the past several decades,
ments can no longer avoid funding those obligations, they are and the earlier efforts are now yielding big dividends, while
likely to engage in another cycle of slashing costs wherever more recent changes promise to yield significant additional
possible — with the difference being that this potential fund savings in the future (see Exhibit 1).
ing crisis has been foreseen and might be avoidable
Employee compensation is the single largest expense for PENSION PLAN SAVINGS
most local governments. Compensation is broadly defined One example of a benefit change that yielded big savings
to include salaries, overtime, employ- is closing the defined benefit pension
er -paid compensation taxes, active- The recent economic environment (DB) plan. Oakland County employees
employee benefits, pensions, and hired after July 1, 1994, are not eligible
OPEB. Many government officials and the still- depressed real estate to part in this plan; instead,
know from painful experience that market are the primary reasons they participate in a 401(a) defined
reducing compensation for current for the immediate financial woes contribution (DC) plan Employees
employees can be very difficult, time hired before July 1, 1994, had a limited
consuming, emotional, and some- that face most governments today; window of opportunity for switching
times unsuccessful. Implementing however, there could be more from the DB plan to the DC plan,
compensation changes for future and nearly 1,200 employees opted to
employees who are not yet hired is financial woes on the horizon.
Y switch — more than a third of those
far less challenging, particularly when - eligible, at the time.
those changes include reductions in
benefits The county contributes an average
8 2 percent of salary for the DC plan,
FORWARD THINKING across all employee groups The amount is based on each
employee, depending on his or her hire date and negoti-
Years ago, you might have heard public sector employees ated bargaining agreements, if applicable Each employee
say they'd like to seek employment in greener pastures, but contributes a fixed percentage of salary as well, ranging
they were bound by so- called golden handcuffs. Those "hand from 3 percent to 5 percent, again depending on hire date
cuffs" were benefits that had been designed to retain employ and bargaining group. Employees become vested in the
ees for the long term incremental pay increases rewarded employer's contribution to the DC plan according to the fol-
for longevity, a fixed pension based on the number of years lowing schedule:
served, the promise of insured health care upon retirement,
and so on. How are employees likely to feel about giving up Years of Service Completed Percent Vested
those long- awaited benefits, after investing many years with Less than 2 years 0 percent
2 years 20 percent
one employer and, perhaps, foregoing other employment 3 years 40 percent
opportunities? At the same time, however, the majority of 4 years 60 percent
employers in both the public and private sectors can no lon- 5 years 80 percent
ger sustain the costs associated with such benefits 6 years 100 percent
Apnl 2012 1 Government Finance Review 35
Exhibit 1: Major Changes in Benefits and Compensation
1994 & 1998
Buy -out offered to
deferred retirees to
1987 waive future health care.
Began 1994 1997
1984 prefunding Defined benefrt pension Health -care
Discontinued retiree plan closed to new hires. contributions
longevity pay heath -care Defined contnbution required for
for new hires. obligations. plan offered. new hires.
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
1985 1993 1995
Retiree health -care Early Retiree
vesting schedule retirement health -care
lengthened for incentive vesting
new hires for DB. schedule
lengthened
Sick days for new hires,
discontinued graduated
and replaced schedule
with personal implemented
days and disabilrty
insurance.
Oakland County started saving money shortly after imple- provide employees with investment advisors to help them
menting the DC plan, and those savings have continued and understand potentially foreign concepts such as investment
grown. In 1996, the annual savings from the DC plan were strategies based on an individual's risk tolerance and length
more than $3.1 million, with 259 newly hired employees that of time until retirement age, as well as diversification strate-
year, 1,126 employees who converted to the DC plan, and gies to reduce overall risk
2,148 employees who were still in the DB plan Fast forward-
ing to 2010, the annual savings were almost $7.2 million, with DISCONTINUING LONGEVITY PAY
more than 80 percent of eligible active employees in the DC Oakland County also once offered another benefit designed
plan and fewer than 20 percent in the DB plan. Total cumula-
to retain long -term employees: longevity pay. This was a per -
tive savings from the DC plan through 2010 have been more
than $84.5 million (see Exhibit 2). centage of base salary, correlated with an employee's years
of service and earned in 2- percent increments over a period
DC plans can obviously save employers money, but they also of time, beginning with 2 percent of additional pay after 7
benefit employees. To the degree that employees are vested, years of service and gradually increasing to the maximum
their account balances are portable and belong to them, provid- service increment, 10 percent after 19 years
ing more career flexibility than a DB plan. Also, upon death, the
The county discontinued service increment pay for employ -
remaining plan assets can be passed on to surviving beneficia-
ees hired after July 1, 1984. In the 27 years since this benefit
ries. This flexibility was one of the factors that persuaded nearly
was closed to new hires, the county's cumulative savings
1,200 county employees to switch from the DB plan. in avoided salary alone have been $69.5 million, and the
Since employees in a DC plan are making investment deci- continued ongoing salary savings are more than $8 million a
sions, they do bear some investment risk. Employers there- year Beyond the direct salary savings are additional savings
fore need to offer a broad array of high - quality investment in salary- dependent costs such as pension contributions and
funds, along with educational resources They should also employer -paid social security taxes For example, assuming
36 Government Finance Review 1 April 2012
2008
Health -care contributions of employees
on lower tier match new employees;
first half implemented in 2008 —
second half implemented in 2009
Retirement incentive offered to
2006 employees currently eligible to retire.
Discontinued
2002/2003 traditional New vendor for prescnption coverage
Early retiree health and Medicare Parts A and B.
retirement benefits for Discontinued social security tax for
incentive for new hires. PTNE. Replace with tax deferred
DB and DC. 1-ISAs offered. retirement accounts.
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2003/2004 2007 2009 2011
Active Buy -out offered to Prescription Wage
employees deferred retirees to formulary reduction
and retirees waive future health care. changed. of 15
move to 3-tier Raised co -pays and Raised percent.
prescription deductibiles for active employee 2010
co -pay. employees and retirees. health -care
Eliminated
2003 Raised retirees Rx drug contnbutions. deferred
Health -care co-pays equal to active compensation
contnbutions employees match program
increased for Hiring freeze began. Trust
all two tiers. W? ge reduction
certificates issued Employee of 25 peter
wellness program began.
the county contributes an average 8 percent of an employee's use the vested amount in their RHS accounts for health -care
salary for DC pension benefits, discontinuing longevity pay expenses that are authorized by the Intemal Revenue Service.
saves it approximately $650,000 a year in avoided pension Such expenses include paying for insurance premiums, pre -
costs in addition to the approximately $8 million In annual scription costs, or Medicare deductible amounts
avoided longevity pay savings The new RHS plan limits and fixes the amount of retiree
health -care costs that the county pays, creating fiscal stability
RETIREE HEALTH - CARE PROGRAM CHANGE while continuing to provide employees with a retiree health -
Retiree health care was a more recent and dramatic care benefit. Since the RHS program was implemented six
benefit change The county implemented a tax - exempt years ago, approximately 20 percent of current active employ -
retirement health savings (RHS) plan for full -time eligible ees are in this new plan. Future retiree health -care savings are
employees hired on or after January 1, 2006, replacing the conservatively estimated at a minimum of $400 million.
traditional employer -paid health, dental, and vision plan
for future retirees. This is basically a change from a defined DEFERRED RETIREE BUY - OUTS
benefit type of plan to a defined contribution plan. Under the
new plan, the county contributes $1,300 per year per eligible On three occasions, Oakland County has offered to buy
general employee ($50 per biweekly pay period) into each out vested retirement benefits accrued by members of the
RHS account. The vesting schedule for the county's con-
DB plan who had already left the service of Oakland County,
tribution in the RHS plan is the same as traditional retiree but deferred. Employees defer retirement benefits when they
health -care plan the county had offered: Employees are 60 retire before reaching the required age.
percent vested after 15 years of service, accruing an addi- This program was a voluntary and time - limited offer; these
tional 4 percent vesting increment for each subsequent year former employees could either accept the offer or decline it,
of service until becoming fully vested after 25 years of service. irrevocably Deferred retirees who accepted the offer received
When employees retire from the county, they will be able to a lump -sum present -value amount based on the actuarial
April 2012 1 Government Finance Review 37
equivalent of the accrued pension benefit The DB plan fund- benefits and compensation in an effort to reduce budgets
ed the lump sum payments in exchange for a waiver of rights and achieve sustainability during this time of declining gov-
to any and all other retirement welfare benefits, including ernmental revenues These examples from Oakland County
future county- funded health care. The program reduced the show that savings from incremental changes in benefits and
future liabilities of the county's voluntary employee benefit compensation can be substantial over time. When employers
association as summarized below: implement such changes prospectively for future employees
a In 1994, 78 deferred retirees accepted the buy -out offer, — thus minimizing the negative impact on current active
saving the county an estimated $19.5 million in future employees — it may take longer for actual savings to accrue,
retiree health-care costs. but resistance from the workforce will be minimized.
a In 1998, 32 deferred retirees accepted the buy -out offer, Something else for public employers to consider is that
for an estimated $8 million in savings. with the recent economic downturn, many employees in
In 2007, 19 deferred retirees accepted the buy-out offer, the private sector have experienced drastic reductions in
for an estimated $4 75 million in savings. their benefit and compensation packages Thus, taxpayers
might expect parity in the form of similar reductions for local
Buying out deferred retirees on a voluntary basis is another public- sector employees Local leaders need to consider this
example of big savings that can be created by a simple initia- possibility even if there is no immediate need for budget
tive, with no impact on the benefits of current active employ- reductions. An approach similar to that of Oakland County's,
ees (or even future employees, in this case). Governments with continual review and incremental benefit adjustments,
might consider a program of this type if they have a well -fund- might help satisfy taxpayer expectations 1
ed pension system but large liabilities for unfunded OPEB.
CONCLUSIONS LAURIE VAN PELT, CPFO, is director of management and budget for
Many public- sector employers are reassessing employee Oakland County, Michigan. She can be reached at vanpeltl@oakgov.com.
Cumulag
— from Exhibit the 2: County's tive DC Savin Plan s , 1996 -2010
Savings
g
—
Annual Cumulative ,
Actual 1996 3,130,414 3,130,414
1997 3,920,737 7,051,151
1998 4,901,588 1 1,952,739
` ;: � � ° _, r ' 1999 4,928,082 16,880.821
2000 4,563,388 21,444,209
• Bonded Debt Compliance • District Administration and 2001 4,429,586 25,873,796
• Cost Allocation Plans /User Formation -
Fee Studies • Revenue Generation 2002 5,252,195 31,125,991
• Water/Wastewater Utility Strategies 2003 5,720,237 36,846,228
Rate Studies • Finance Staff Augmentation 2004 5,525,643 42,371,872
• Fiscal /Economic /Real Estate • Proposition 218 and Nexus 2005 6,413,075 48,784,947
Analysis Services Studies 2006 6,886, 160 55,671, 107
W L L DAN 1 2007 7,201,977 62,873,084
INA(
Financial Services 2008 7,243, 100 70, 116, 184
2009 7287,066 _ 77,403,190
For information on how Willdan can help your agency, 2010 7,161,295 84,564,484
call 800.755.6864 or visit www.willdan.com.
38 Government Finance Review 1 April 2012
THE
ROA 4-1)
4
1/////////1
M
Case analysis of the • TAKEAWAYS
intersections of infrastructure >Explores the impact that
residential subdivisions,
improvement expenditures considered private commu-
nities, are having on local
By Daniel Rosemond government
> Identifies the challenges
now faced by local govern-
ments due to many defunct
homeowner associations
(HOAs) .
> Answers the question:
Should local government play
a role in addressing infra-
structure improvements in
these private communities?
1 2 PUBLIC MANAGEMENT I MAY 2012 icma.orgipm
•
i
It goes without saying that in the midst of the most
1 severe economic downturn since the Great Depression,
4
the value of the U.S. dollar has never been lower. Table
. 1 shows changes in prices of all goods and services purchased
I for consumption by urban households. The rate of inflation has
1 i been calculated since 1913.
IN 2008, FOR EXAMPLE, it The project area, part of TABLE 1. Inflation in the United
took $21.57 to buy what $1.00 Miami Gardens, Florida, is in States, 1913 -2008.
bought in 1913 Note that in excess of 220 acres of land, and it Amount It
1920 this number was $2.02, comprises three neighborhoods. Year Took to Equal
and then it declined in 1925, a It is noteworthy that many of $1.00 in 1913
decline that persisted durmg the the residential units in these 1913 $1.00
I 1930s, showing the effect of the neighborhoods are multifamily 1920 $2.02
• , - . Great Depression when prices or townhouse units, compnsmg 1925 $1.77
-Y slumped. Prices did not pass more than 2,000 households. 1930 $1.69
" . it $2.00 again until 1950. As in many suburban 1935 $1.38
. The attention given to the developments of this kind, the 1940 $1.41
. ;, - - use of tax dollars by the govern- housing units were clustered 1945 $1.82
, ment has arguably never been as together for a maximum unit-to-
1950 $2.43
. high profile and newsworthy as acre ratio. Although the roads
it is today. Every line item and were built to sufficient width to 1955 $2.71
expenditure is being questioned, accommodate vehicular traffic, 1960 $2.99
! . and nghtfully so. After all, taxes they did not meet required traf- 1965 $3.18
are the monetary means by fic standards to be considered 1970 $3.92
which the provision of public a public right -of -way. These 1975 $5.43
services is attained. standards would also require 1980 $8.32
Therefore, when tax dollars are appropriate drainage systems. 1985 $10.87
used to fund a project that is used Also excluded in the original 1980 $13.20
by a limited number of individuals, development was street lighting 1995 $15.39
it can be argued that a public good along most of the residential
is not being provided. streets. Sidewalks in these subdi- 2000 $17.39
visions are also sparse. The roads 2001 $17.89
Background within the project area function 2002 $18.17
The project area in this case is more as alleys than as public 2003 $18.59
i composed of private subdivisions streets. Nevertheless, they are the 2004 $19.08
developed in the mid- 1970s. Like only access -both pedestrian and 2005 $19.73
' many similar residential areas, vehicular -to the housing units 2006 $20.18
these subdivisions were devel- m these neighborhoods. 2007 $20.94
oped with the understanding The drastic decline of the 2008 $21.57
that they would be self- managed housing market has not only af-
through the vehicle of home- fected real estate values but has Source. Bureau of Labor Statistics,
g U.S Department of Labor, database,
owner associations (HOAs). also financially crippled many http nstats.bis gov.
icma.org /pm MAY 2012 1 PUBLIC MANAGEMENT 13
gip
HOAs Consequently, the TABLE 2. private asset, regardless of the fact that
inability of the associa- of $787 Billion Dollars the city does not regulate the actions
tions to collect the dues Federal Stimulus (billions) of HOAs, and regardless of the fact that
needed to maintain common Tax relief $288 these blighted infrastructure conditions
areas within their boundanes - ' existed long before the city's incorpora-
has recently prompted an outcry by State and local governments $144 Lion, residents demanded that their local
residents to their public officials Infrastructure and science $111 I government act and act quickly
The expectation by residents in this Arguments have also been made by
Protecting the vulnerable $81 I i
project area is that their local government opponents of community redevelop -
should provide the needed improve- Health care $59 ment agencies. Opponents contend that
ments. A large majority of the units in / spending tax dollars on roads that are
these neighborhoods are rented, with the accessible to only a few residents is not
actual property owners living outside the Energy $43 an appropnate use of public funds. For
community. This is a cntical dynanuc as Other programs $8 the residents of the neighborhoods in
it relates to the issue of resident expecta- need, however, the local government
tions and owners' obligations government is legally prevented from presents the only hope for providing
If a local government chooses to use allocating public funds to their repair. the resources to perform much - needed
pubhc funds to build a new park in the The only way that the roads could infrastructure improvements.
community, residents who don't use be improved using public funds is if The city's public works department
park facilities might be cntical of such the roads were conveyed to the locality has noted that the infrastructure in these
a decision by their elected officials The and designated as rights -of -way The areas is the worst in the entire city. Dur-
addition of a public park could result in easiest and most cost - effective manner mg Hurncane Wilma, flooding m these
increased property values, however, and to perform the road conveyance would areas was so severe that even emergency
could spur economic development that be through the formal actions of the vehicles were unable to get through
would not otherwise have been secured HOA governing board, in accordance to many of the households. Improving
without the expenditure with its bylaws these areas is more than an aesthetic
Thus, the residents who don't use In this particular case, however, concern; it is a public safety issue
the park will nevertheless realize a direct there exists an antagonistic history
benefit Of particular importance is the between the HOA and residents of these Funding and Restrictions on
specific designation of certain public neighborhoods. Residents are looking Use of Funds
funds. Most taxpayers are ignorant of to the local government to act on their Consideration also must be given to the
the fact that options for the use of public behalf. Many believe that because they primary funding source being used by
funds are limited to the funding designa- pay taxes, they are entitled to condi- the city to tackle this project. Because
tion This means that dollars with a tions that constitute a better quality of the types of funds often used for public
public safety designation, for example, life than what currently exists expenditures have specific designations
can be used only on projects that are Another dynamic surrounding assigned to them, the city chose to use
related to this type of designation (that this case that perpetuates resident in this case commumty development
is, on police or fire rescue services) expectations is the newness of Miami block grant (CDBG) funds.
The federal stimulus plan passed by Gardens as a local government For CDBG funds are federally appropri-
Congress in February 2009 has been the many years, residents of this commu- ated funds that flow down to state and
source of angst to many communities nity felt disenfranchised because they local governments Although states and `
as a result of this funding designation believed they suffered from a lack of units of local government can exercise
approach. Some taxpayers are unaware services from county government. This discretion regarding the types of
that the Obama administration set forth frustration led to constituent support projects carried out with these funds,
specific uses for the $787 billion federal for incorporation. When approval CDBG dollars must always meet one of
stimulus (See table 2) was finally granted, Miami Gardens these three national objectives
Since early 2007, local government residents believed that their concerns 1. Activities benefiting low- and moder-
leaders have made concerted efforts to would finally be addressed ate - income persons
meet with residents from all three af - These expectations were articulated 2. Activities that aid m the prevention or
fected neighborhoods in order to inform loud and clear in a community meeting elimination of slums or blight
them of the locality's sensitivity to their held in the spnng of 2007 at the campus 3. Activities designed to meet com-
plight. Given the fact that the roads are of Florida Memorial University Regard- munity development needs having a
pnvately owned, however, the local less of the fact that the roads are a particular urgency.
1 4 PUBLIC MANAGEMENT I MAY 2012 icma.org /pm
THE TIC DECLINE OF THE HOUSING MARKET HAS NOT ONLY
AFFECTED REAL ESTATE VALUES BUT HAS ALSO FINANCIALLY
CRIPPLED MANY HOMEOWNER ASSOCIATIONS.
Because of the relatively low average is important enough to justify such It is foreseeable that if the remainder of
household income in these neighbor- public expenditure. It is understood that this project should move forward through
hoods, improvements to the roads would neighborhood improvements, specifically the conveyance by the residents of the
be considered an area benefit according infrastructure improvements, always remaining roads, the city will undoubtedly
to regulations of the U.S. Department of result m increased property values in the be tasked with pursuing a similar ap-
Housing and Urban Development. If and impacted neighborhoods. proach m other private subdivisions. This
when critics raise questions about the As the city's commitment of CDBG anticipated demand will not only create a
city's expenditure decision for this neigh - funds to this project shows, city leaders potential cost burden to the city but will
borhood infrastructure improvement clearly believe that this expenditure will also set a public policy precedent that
project, a comprehensive overview of all ultimately serve as an overall public ben- private property that cannot be maintained
factors (primary funding source, public efit for all residents by raising the values by its owners will ultimately be pushed to
safety issues, and desired economic of properties in selected neighborhoods. the local government to absorb.
development) needs to be put forward. Finally, another noteworthy issue m In light of recent federal administrative
During the preliminary planning this particular case is the local govern- policy decisions, it would seem that public
and site work, it was discovered that a ment decision to seek ownership of rights- debate on the issues outlined in this case is
portion of the roads within the project of -way that are or have been privately just beginning. PJI
area were in fact owned by the county. owned In addition to the city encumber-
The conveyance of these particular roads mg additional roads that it would need to DANIEL ROSEMOND is assistant city
thus became a somewhat routme govern- maintain, the larger concern that this case manager /community development
ment -to- government transaction Once presents is an increased role of govem director, Miami Gardens, Florida
(drosemond @miamigardens - fl gov)
conveyed, the city of Miami Gardens ment intervention in private property.
moved forward with the development of
the construction drawmgs and subse-
quent infrastructure improvements.
Notwithstanding this step in the nght Join IPMA -HR! Make a commitment to
direction, the completion of a portion of invest in your future.
the roads within these neighborhoods Enjoy all the benefits of
membership including:
prompted discord among residents of the
• HR Research
areas where roads and drainage were
not yet improved Trying to explain the • Publications and Research
• Professional Development
nuances of government -owned roads and Certification ■
versus privately owned roads was at best • Government Affairs updates - •
an exercise in futility. • Online Membership Directory _ '
• Assessment Products
Outcomes & services
The commitment of funds to this project • Networking
was predicated on the underlying objet- Become amernberoflPMA -HR
today. Simply download
tive of the city's leadership to enhance the application format ' - + -•
some of the most blighted neighbor- erww.ipma- hr.org and mail or -
• fax it to (703) 684 -0948. For _ • hoods in the community But will these more information, contact us at - '"."�"'1`
m embership ipma- hr.org. — ant 1
improvements yield the desired results ' • H ;
in spurring future economic develop- `14a
ment activities? '=PMA
IN Those results remain to be seen over
the span of several years. If economic The Solution for Public
HR Excellence! \ V . t.' 6.
development occurs, it would seem -
www,ipma hr.org
that the improvement of neighborhood
•
infrastructure such as descnbed here -
icma.org /pm MAY 2012 1 PUBLIC MANAGEMENT 1 5