BEYOND THE GREAT RECESSION: SAVING CITIES AND SCHOOLS

South Central Assembly Summit

June 13, 2012

Stabilize finances

Establish organizational infrastructure

Change the culture/ improve service delivery

FIRST THINGS FIRST…

LET THE CHIPS FALL…

DCED Early Intervention Program: Comprehensive Audit

Engage business and community leaders

Create community – neighborhood meetings

Build a team – workforce meetings

OPERATIONS: “… need an extreme makeover.”

Critical investment in the City’s corporate infrastructure has been neglected.

Investment in human and technological capital is lacking.

Investment in facilities and operations has been limited at best.

FINANCES: “The future is bleak.”

REVENUES: 2% annual growth rate

EXPENSES: 5 to 6 % annual growth rate (health insurance = 18% growth rate)

“If nothing is done to reverse these trends, initial projections show a $69 million cumulative deficit by 2012.”

IT’S NOW OR NEVER

““Continued neglect will increase operating costs and make Continued neglect will increase operating costs and make it more difficult to provide good customer service.”it more difficult to provide good customer service.”

““The primary findings of the report are that the City of The primary findings of the report are that the City of Lancaster must upgrade its corporate and physical Lancaster must upgrade its corporate and physical infrastructure, while at the same time addressing a infrastructure, while at the same time addressing a serious fiscal situation.”serious fiscal situation.”

-- -- Management Partners Management Partners September 2007September 2007

ORGANIZATIONAL DEVELOPMENT

Strategic Planning

Staff meetings & work site visits

Customer Centered Culture: “Off the bus.” Human Resources: Performance Measures, Salary Scales, Job

Descriptions, Training

Leased computers

Shared IT Services

Phone systems

Facilities assessments

OPERATIONS

REVENUE ENHANCEMENTS

Voluntary Contribution ProgramFees based on cost-recoveryCredit cards accepted for paymentsCapital Budget used to fund infrastructure and other

investmentsSettled Worker’s comp claimsSold Property liensCollection of delinquent accountsTax increases

Contract concessions Lay-offsEarly retirement buy-outsHiring freezesSalary freezesMerit vs. Cost of living adjustments

CUT EXPENSES

A COMMON VISION

PROVIDE THE IDEAL URBAN EXPERIENCE

Public artDesign standards and streetscape enhancementsPark improvementsGreen Infrastructure Public buildingsUtilities – water, recycling, solid waste

OUR ENVIRONMENT

OUR NEIGHBORHOODS

Rental property registration and licensingCode EnforcementAdministrative TicketingSWEEP

Institutional: F&M, MU, PCAD, LGHOther Non-Profits: Religious, Social Service, Housing,

Philanthropic Community Development Groups: SACA, JSID, DIDBusiness Groups: Lancaster Alliance, Lancaster

ChamberArts & Culture: Lancaster Arts

OUR PARTNERS

PROSPER OR PERISH: FINANCING LOCAL GOVERNMENT

IN PENNSYLVANIA

THE FUTURE

Local governments must be given a menu of options for generating revenue.

The public safety contract arbitration system (Act 111) must be reformed.

State-mandated defined benefits must give way to consolidation of pension plans at the statewide level.

Inter-municipal shared services must be heavily incentivized and, in some cases, mandated.

Property tax reform must happen.

MUNICIPAL FINANCE TASK FORCE

www.cityoflancasterpa.com

http://www.philadelphiafed.org/community-development/

Pat BroganMayor’s Office, City of Lancasterpbrogan@cityoflancasterpa.com

717.291.4701

FOR MORE INFORMATION…