Loading...
05/08/2012 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