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HomeMy WebLinkAbout06-27-08 Planning Retreat Book0 The Elim Group Town of Westlake, Moard of Aldermen Retreat Embassy Suites 2401 Bass Pro Grapevine, Texas June 27 & 8 2008 -�- Welcome & Congrats - WINners d Five Senses — Permission to Play 4- Hershey's Ice Breaker & Introductions o Animal Friend / HMTI Type Indicator Practice Time Versus Performance Time o Olympics, Super Bowl, Westlake Academy o Weekend is about Practice 1 Joe Raso — Coaches Coach, etc. Agenda Review/ Purpose o Roles in Good Governance o Communication o Mission Vision Values o Strategic Planning ,,>-d- Permission to Play A-- Operating Agreements — Behaviors for the weekend (HOPE!) o Honest, Open, Participative, Engaged o What Else?? Team Building (Who Are We Anyway?? - DISC Review) 0 Concept of "3" Teams; Aldermen, Staff and Combined Leadership 4 t41 r Lunch in Hotel �. � Mission Vision Values o Differentiation between results and activities Friday Evening — 5:00 p.m. �- Dinner and Traffic .Calming Saturday, .Tune 28, 2008 Saturday Morning — 8:30 a.m. 4- . . - Strategic Planning — Future Scan Process [Use of Magic Helicopters] --� Where we are going — "1 Have a Dream!" [The Power of Visualization] How we get there — "The Victory Wall" [Achieving Outcome Statements] o Board Relations o Meeting Procedures o Other Process Pieces Outcome Statements are SMART o Strategic o Measurable o Achievable o Results Oriented o Time Specific Working Lunch Creation of a Work Plan Review and Wrap -Up 4 Encouragement and Adjourn no later than 2:00 p.m. Mike.G'onduff@TheElimGroup.com Biography Michael A. Conduff Michael A. (Mike) Conduff is the President and CEO of The Elim Group — Your Governance Experts, a governance, leadership training, speaking and consulting firm. Mike has 30+ years of leadership, management and governance experience, having served as the City Manager of four different University communities, and most recently as the City Manager of Denton, Texas. Denton is the home of The University of North Texas and Texas Woman's University. Located in the dynamic North Texas Corridor, Denton is an innovative and rapidly growing community of 110,000. Prior to assuming the City Manager's position in Denton in May 2001, Mike was a nine-year City Manager of Bryan, Texas, a 1998 & 1999 All -America City Finalist and the birthplace of Texas A&M University. Before he came to Texas, Mike served as City Manager in Manhattan, Kansas, home of Kansas State University, for five years. He also served as City Manager of Pittsburg, Kansas, home of Pittsburg State University, for 5'h years. Mr. Conduff earned his B.S. in civil engineering at the University of New Hampshire, graduating Cum Laude. His M.B.A. is from Pittsburg State University. He is also a charter graduate of the Carver Policy Governance® Academy and serves on the Board of Directors of the International Policy Governance® Association. Mike's clients have included the International City Management Association, The National League of Cities Leadership Training Institute, The National Committee for Planned Giving, The Community Associations Institute, The Republic of the Marshall Islands, and many cities, associations, and other non-profit and for-profit corporations. He is the co-author of The OnTarget Board Member — 8 Indisputable Behaviors, and The Policy Governance® Fieldbook and is a frequent speaker at state and national events. He is also the author of The Half -Naked Fire Ant Buck and Other Stories of the Wild and is working on two additional books, Democracy at the Doorstep — True Stories fi°om the Green Beret of Public Administrators, and The OnTarget CEO — Excellence in House. He has published numerous articles in national publications. Mr. Conduff is a Fellow of the prestigious National Academy of Public Administration, a member of Who's Who Worldwide, and a Paul Harris Fellow in Rotary International. He has been honored with the 2006 TCMA Mentoring Award in memory of Gary Gwyn, the 2004 International Award for Career Development in Memory of L. P. (Perry) Cookingham from ICMA, and the especially meaningful Joy Sansom Mentor Award from the Urban Management Assistants of North Texas for his commitment to helping others achieve their potential. The Center for Digital Government has awarded Mike their coveted "Best of Texas 2004 Visionary Award." A fourth generation Native American, Mike grew up on stories of his Cherokee ancestry, and attributes his love of motivational speaking and telling stories to his grandmothers. A graduate of the 1988 Leadership Kansas Class, Mr. Conduff is active in a number of professional and civic organizations. He serves on the Athletic Council for the University of North Texas. He is a full member and Past President of the Texas City Management Association. He is one of the handful of originally credentialed member of the International City/County Management Association, served on its International Executive Board and currently serves on its Fund for the Profession Foundation Board. He also served six years on the Board of Directors of the Kansas Association of City/County Management, chairing the Ethics Committee and holding all of the statewide offices including President of the Association. He is a Past President of the Kansas Engineering Society; a charter member of the Board of Directors of the Kansas Entrepreneurial Center, located at Kansas State University; and a past member of the Board of Directors of the League of Kansas Municipalities. Mr. Conduff is licensed as a Professional Engineer and a Registered Land Surveyor in the State of Kansas, and served eight years on the Kansas State Board of Technical Professions, twice as Chairman of the Engineering Section and twice as Chairman of the Full Board. Mike practices what he preaches while serving on a number of Boards himself. He says, "In my experience, people who give of their time and energy to serve on a Board or City Council are unbelievably caring individuals doing their absolute best to make a difference. My passion is to provide the leadership and training to give them the tools and insights they need to be successful." www.TheElimGroup.com DATE: June 3, 2008 T: Honorable Mayor and Board of Aldermen/Honorable Board of Trustees FROM: Tom Brymer, Town Manager SUBJECT: Strategic Planning Process The Board of Aldermen is about to begin the first of two phases of strategic planning for the Town of Westlake. The first phase will take place at the end of this month and will entail the Board setting the mission, vision, and values for the Town, both as a community and as a municipal organization. This also will involve identifying key result areas to focus the Town's resources on as we pursue our mission, vision, and values. The attached flow chart gives a good idea of a how a strategically focused governance cycle works in an integrated fashion with all the various components of the cycle. Following this first phase of strategic planning involving setting the direction for the Town as a whole, it is recommended that the Board convene a second phase of strategic planning. This second phase of strategic planning will focus on Westlake Academy, but will take place within the context of the overall direction for the Town set by the Board in its first strategic planning session. Prior to convening this second strategic planning phase focusing on Westlake Academy, it is recommended that work begin on identifying current or future policy issues that need to be addressed by the Board as it sets the strategic direction for the Academy. This could be done by the Board as a whole, or by a subgroup of the Board, working with the Town Manager and Head of School for presentation for discussion at the second phase of strategic planning. Attachment- Strategic Governance Cycle m E I 0 I m m Basic Principles of Policy Governance condensed from John Carver & Miriam Mayhew! Carver Guide Series on Effective Board Governance Policy Governance is a fundamental redesign of the role of a board, emphasizing values, vision and the empowerment of both board and staff. It is built on ten principles: The Trust in Trusteeship Boards exist to own an organization on behalf of some identifiable ownership to which they are answerable. Simply put, a board governs on behalf of persons who aren't seated at the table. The primary relationship the board must establish, maintain, clarify, and protect is its relationship with its owners keeping in contact with them, and hearing their voices. A board is a corporate entity entrusted by its owners with the authority to govern and lead the organization. If the board is to lead, then on each given issue, it must speak with a single voice. The strength of this voice arises from the diversity of viewpoints and intentions its members bring to the board, as well as from the way the board focuses this multiplicity into unity. This one -voice principle doesn't require or imply unanimity. On the contrary, the board must embrace all the diversity it can on behalf of the ownership. Differences among trustees are not only respected, but encouraged. Rarely will a vote be unanimous. Those board members who lose a vote, however, must accept that the board has spoken and that its decision is now to be implemented. The board should not present conflicting messages to its ownership or its staff. This principle of one voice can be undermined by charging board officers with roles of management, and by creating committees with mandates related to areas of staff responsibility. A board chair who supervises the chief executive, or a committee set up to instruct staff, must inevitably violate the one -voice principle in order to function. Board committees are legitimate when they help with tasks that belong to the board. They are not when they help with tasks that have been delegated to others. Staff spend as much time almost malting decisions, which then must be passed through committees, as they would spend actually making the decisions. The principle of one voice can also be broken by individual board members who, thinking they are being helpful, go directly to staff with instruction or guidance. Unless a board masters the art of speaking as a group, it has little power to lead. A board speaks with one voice ... or it doesn't speak at all. Policy is here defined as the value or perspective that underlies action. Board policies express the board's soul, embody the board's beliefs, commitments, values, and visions, and express its wisdom. Board policies should be generated by the board itself, not brought to it from other sources. Policies develop out of the board's struggle with values, from the stage of initial musing to crafting a written document. The board decides what to have policies about, and to what level of detail it will develop them. Its policies fit into four categories: ENDS — The board defines which human needs are to be met, for whom, and at what cost. Written with a long-term perspective, these mission -related policies embody the board's vision, and the organization's reason for being. EXECUTIVE LIMITATIONS —The board establishes the boundaries of acceptability within which staff methods and activities can responsibly be left to staff. These policies limit the means by which Ends shall be achieved. BOARD -STAFF LINKAGE —The board clarifies the manner in which it delegates authority and how it evaluates performance relative to ends and limitations. G®VERAANCE PROCESS —The board determines its philosophy, its accountability, and the specifics of its own job. Except for what belongs in bylaws, these categories of board policy contain everything the board has to say about values and perspectives that underlie all organizational decisions, activities, practices, budgets, and goals. The Board formulates Policy by Determining the Broadest Values Before Progressing to More Narrow Ones Values come in sizes; large values contain ranges within which smaller ones occur, like a nested set. A board establishes control over large issues with broad policies, and subsequently decides how much further to detail them. Then it delegates further definition to someone else, fully empowering them to do so, and accepting any reasonable interpretation of its policies. (With Ends and Limitations policies that someone is staff; with Governance and Linkage it's the board chair.) The board may develop policy to whatever detail it wishes, so long as it does so from broad to narrow, and does not skip levels in the process. (When they approach policy-making this way Boards can exercise leadership and maintain effective control without delving into vast detail.) Boards are accustomed to approving plans brought to them by staff. Predictable problems arise: The very act of approving forces boards to become entangled in trivia; and to avoid feeling like rubber stamps, boards may nit-pick. Approvals are usually issued without clarifying the criteria used in giving approval. Further, approving staff plans freezes into place details which cannot then be changed without board re -approval. This obstructs staff creativity and agility (a severe disadvantage to the organization), and weighs down the board with detail (diverting time from deciding the very policies that would make such role confusion unnecessary). Having board policies in place ahead of time allows board and staff alike to know whether a staff plan is approvable, since all the criteria by which approval is given are clear for everyone to see. The board does need to be assured that staff plans are true to the applicable board policies — and that reassurance is gained by policy -focused monitoring. This also reinforces the one -voice principle, because the board has already stated its criteria for approval, and board members aren't thrown back onto diverse personal criteria. The justification for anybody lies in what difference it can make. A nonprofit organization exists so that its world can be a better place. The kind of thinking needed in order to make a difference requires a sense of the whole, an overview, a high vantage point. The board will become more of a think tank for vision than a reviewer of staff decisions and activities. It will focus on outcomes; focus on the reasons for which the organization exists at all. An issue is an Ends issue if—and only if—it directly describes what good, for whom, or at what cost. If not, it is not an Ends issue, no matter how important, no matter who decides it, no matter how closely related it is to goals, strategies, mission, or perceived board work. Ends language is never about what the organization will be doing; it is always about what will be different for those it serves. Distinguishing ends from means will enable the board to free itself from trivia, to delegate clearly and powerfully, and to turn its attention to large issues. I111121 4TMOTIMI 147 The organization's conduct, activities, methods, and practices are its "means" rather than its ends. Board means relate to how the board will organize, structure, and conduct itself in order to accomplish its job. Staff means are the various arrangements and actions needed to accomplish the ends or to safeguard the operations that produce them. Resist the temptation to prescribe staff means. (The board does not tell staff how to do its job.) The board's role is one of boundary-setting—specifying in writing which staff means would be unacceptable, unapprovable, or off limits. (In other words, the board says what kind of means it will not put up with.) Beginning with broad prohibitions, advancing thoughtfully toward more detailed ones, the broader statements act as a safety net. Producing a "don't do it" list sounds negative, but in outcome is not. It allows a secure freedom, the boundaries of which need not be guessed, and within which staff creativity and action are encouraged. This key method of means constraint enables a board to govern with fewer pages of pronouncements, less dabbling in details of implementation, and greater accountability. The Board Explicitly Resigns Its Own Products and Process The board states what it expects of itself, its code of conduct, the way it will plan and control its agenda, and the nature of its linkage with the ownership. And the board treats its own governance policies as iron -clad commitments. The board commits itself to use internal committees only when they are necessary to help the board get its own job done (not to help staff with theirs). The board delegates to its Chair the right to make any reasonable interpretation of its words in governance process and board -staff linkage policy areas. The chief executive has parallel authority with respect to topics governed by ends and staff limitations policies. This delegation pattern ensures that the Chair and Executive work closely together, but neither reports to the other. In developing its governance policies, the board again follows a broad -to -narrow approach, beginning with the broadest form of the question, "What is our job?" It goes into further detail until it is willing to allow its Chair to reasonably interpret its words in implementing board business. The Board Forges a Kinkage with Management That is Empowering and Safe Board and Executive constitute a leadership team. Clear differentiation in their roles and responsibilities enable them to fulfill and excel in them, mutually support each other, and influence each other toward ever greater integrity and capability for leadership. The board has the right to expect performance, honesty, and straightforwardness from its staff. Boards may be understanding about performance, but should never bend an inch on integrity. In turn, staff rightfully expect the board to be clear about the rules and then play by them, to fulfill its own job, and to speak with one voice. Performance is Monitored Rigorously, but Only Against Policy Criteria In Policy Governance, monitoring is conducted only against criteria currently stated in ends and limitations policies. When a board adopts the discipline of monitoring only what it has already addressed in policy, its anxiety will drive it to develop all the policies needed. The board will require information that directly addresses existing criteria, and receive relevant monitoring data without having to digest enormous amounts of unnecessary information. C 0 V E R S T O R Y Of Hiyhly Effect'lve CUU11cliq L ernment operations directly affect our daily exis- d experiences and the quality of life that we per - have within our communities. No local govern- ment deserves, nor should its citizens tolerate, a council or governing body that isn't extraordi- narily effective and competent in leading the community. Thomas Cronin, a recognized authority on public policy, defines leadership as "making things happen that might not otherwise happen and preventing things from happening that ordinarily might happen. It is a process of getting peo- ple together to achieve common goals and aspirations. Lead- ership is a process that helps people transform intentions into positive action, visions into reality!' The quality of leadership effectiveness demonstrated by a governing body and its ability to be a highly effective council are not attributes bestowed upon it by a swearing-in cere- mony. They are the results of disciplined adherence to a set of fundamental principles and skills that characterize highly effective governing bodies. Here, then, are 10 "habits" of highly effective councils, based upon the author's observa- tions of hundreds of governing bodies over the past 20 years. 4 NOVEMBER 1997 Think and Act Strategically 10 A council's primary re sponsibility is not just to make policy or to do its "Roman emperor" routine (thumbs down or thumbs up) on agenda items at public meetings. It is to determine and achieve the citizens' desires for the community's future. Councils and their administrative teams must accept responsibility for shaping the future of their communi- ties by expanding their mental hori- zons to identify and meet the chal- lenges that must be addressed through decisive leadership and through shared goals for the attainment of that future. A strategic leader always comes from the future and takes you "back to the future" from the present. This leadership adventure starts with a vi- sion and evolves into a definition of the strategic issues that must be mas- tered to achieve the vision. The next step is the development of long-range goals that address these strategic is- sues and that provide a decision-mak- ing and budgetary basis for the suc- cessful implementation of these goals. Living from one annual budget to an- other and from one council meeting to the next condemns your commu- nity and its future to happenstance and to the type of thinking that often befuddles national governance and policy. For this reason, polls show that an overwhelming majority of citizens want important issues affecting their lives to be decided at the local, home town level. Here, they expect leader- ship, sound thinking, and decisive ac- tion. In spite of this citizen expecta- tion, a 1996 survey conducted by the International City/County Manage- ment Association (ICMA), "Survey of Current Practice in Council -Manager Governments," indicates that fewer than 40 percent of all councils set long-term strategic goals to guide their semimonthly forays into decision making. PUBLIC MANAGEMENT ..Understand and Demonstrate the Elements of Teams and Teamwork By law, councils exist and have authority only when their members convene as bodies to do business. They also are components of corporate beings that must speak, act, and fulfill their commit- ments with one voice and in a mature, effective, and reliable manner. Councils are collections of diverse individuals who come together to constitute and act as an entity, and only when operating as an entity can they exercise authority and perform in fulfillment of their purpose. This is a classic definition of "team:' Carl Larson and Frank LaFasto, two pre- eminent authorities on teams and team- work, define a team as an entity com- prising two or more people working together to accomplish a specific pur- pose that can be attained only through coordinated activity among the team members. In short, a team exists to ful- fill a specific function or purpose and is made up of disparate, interdependent people who collectively achieve a capac- ity that none of its members could demonstrate individually. Teams always have two components that we might call their S components: systemicness and synergy. All teams are systemic by definition, being made up of interdependent parts (people) who af- fect each other's performance and that of the team. Synergy is the ability to achieve an effect, when working to- gether as a team, that is more than the sum of the team members' individual ef- forts. While all teams are systemic, rela- tively few are genuinely synergistic un- less their members understand, master, and demonstrate the fundamentals of teamwork, which are: • A clear sense of purpose. • A clear definition of the roles and re- lationships that unite individual tal- ents and capacities to achieve team performance. • Integration of members who have basic technical, interpersonal, and decision-making competence. • A commitment to team success and performance excellence. • A climate of trust, openness, and mu- tual respect. • Clear standards of success and per- formance excellence. • The support, resources, and recogni- tion to achieve success. • Principled and disciplined leader- ship. Highly effective councils spend time building their sense of being a team and enhancing their skills in productive teamwork. 3 Master Small - Group Decision Making Most councils are classic small groups, with fewer than a dozen people. Small groups demonstrate certain skills and behaviors that Iink their members to- gether. They also have knowledge of the processes they must follow to make de- cisions in fulfillment of their purpose. Figure 1 summarizes the skill sets essen- tial to small -group effectiveness, Clearly Define is E Roles an Relationships Each team member, whether mayor or councilmember, makes a contribution to and has a relationship with the team. Contributions and relationships must be defined in terms of the role to be as- sumed and how that role is to be carried out through the behavior of the person in the role. A role has two elements: function, the specific responsibilities of that role, re- gardless of incumbency; and perfor- mance, the behavior of the person occu- pying the role in fulfilling his or her responsibilities. Councils, through char- ter, statute, or ordinance, have a clear definition of their function. The perfor- Interpersonal Skills The ability to work with others and problems rationally • Listening to and understanding the views of others ° Constructively confronting and resolving differences . • Supporting others and showing respect for their ideas • Participating actively in discussions • Taking "time outs" to discuss how well group members interact mance component must be defined within the team through discussion and mutual definition of those behaviors and practices expected of the mayor and councilmembers in the conduct of their duties and interactions. Vince Lombardi, when asked what made a winning team, replied, "Start with the fundamentals. A player's got to know the basics of the game and how to play his [her] position. The players have to play as a team, not a bunch of indi- viduals. The difference between medi- ocrity and greatness is the feeling the players have for each other," that is, their relationships. Teams talk about and de- fine expected roles and relationships and give constructive feedback to their members on the degree to which they are fulfilling these expectations. 5 Establish and Abide by a Council -Staff Partnership We have all heard the saying "Council makes policy, staff implements policy." Well, this is a total misconception of re- ality. Policy making and policy imple- mentation are not distinct and separate An EFFECTIVE Small Group Task Skills Knowledge to do a job and problems rationally • Knowing the form and role of the organization • Knowing law, policies, and procedures • Showing civility and good manners • Using professional and technical knowledge functions. Policy making/implementa- tion is a continuum of thought and rela- tions that transforms ideas and abstrac- tions (visions, policies, goals, and plans) into defined, observable ends or out- comes (results, programs, buildings, streets, deliverable services). Council and staff share this continuum as part- ners ensuring each other's success. Each person plays an important role in mak- ing sound policies and in ensuring their effective implementation through reli- able administrative practices and perfor- mance. Figure 2 depicts this partnership and continuum. John Carver, a widely acclaimed au- thor who writes about boards that make a difference, discusses this partnership as one in which councils define the needs to be met and the outcomes to be achieved. He believes that councils should allow staff, within council -estab- lished limits, to define the means for achieving these ends. He sees a council - staff linkage that empowers staff to do its tasks and to be evaluated on the re- sults produced. Councils that accept and abide by this partnership focus their energy on estab- lishing vision, goals, and good policy and Rational Skills Ability to deal with issues and problems rationally • Selecting and prioritizing the issues to be addressed • Analyzing issues and related facts • Identifying objectives and outcomes ° Considering alternative strategies and courses of action • Assessing obstacles and consequences • Reaching consensus decisions • Evaluating and following up on empowering effective staff perfor- mance. Councils that do not do this will frequently fall into micromanaging, that is, they will perceive a need to become involved in, or retain approval over, even minor staff activity and plans. A critical element and important council task in this partnership is evalu- ation of the manager or administrator, based upon clearly defined goals, poli- cies, and established guidelines on exec- utive performance. According to the 1996 ICMA survey, only about 45 per- cent of all councils formally evaluate their managers' performance. 6 pa Make a Systematic Evaluation Policy Implementation Councils, like most legislative bodies, frequently exhibit the Jean Luc Picard syndrome (Star Trek 11) and simply tell their staffs: "Make it so." They assume that council action equates to policy and program implementation. The next time the council hears about policy is when a problem or crisis arises. In contrast, highly effective councils NOVEMBER 1997 Figure .Council-Staffa ers i (To What Degree Is This Partnership Understood, Discussed, and Respected by Councilmembers?) COUNCII°S SPHERE P O L I C • Community Y • Political factors • Values • Gratification C O U N C I L expect periodic feedback on policy re- sults and on possible policy amend- ments that may be required. This feed- back can be provided through progress reports, status memos or newsletters, and policy reviews. 7 (locate Council Time and Energy Appropriately Councils, like other teams, play in a number of settings or arenas to achieve overall, peak performance. There are four council -staff arenas, and each must be appreciated for its purpose and for its contribution to a council's effectiveness: Goal setting (retreats or "advances"). Exploration and analysis (study sessions). Disposition/legislation (regular pub- lic meetings). Community relations (interactions with constituents and with other agencies). GOVERNANCE/ POLICY PROCESS A continuum/interaction Figure 3 shows the purpose, typical setting, focus, and key characteristics of each arena. All four arenas are essential to highly effective councils' fulfillment of their leadership, policy-making, goal - setting, and empowering responsibilities. A highly effective council will hold at least one goal -setting retreat or "ad- vance" annually. It also will hold two study sessions monthly, usually between regularly scheduled public hearings. Here, councilmembers will confer with staff and other experts on significant items under consideration that will eventually require official actions. While these meetings should be open to the public as observers, the public should not participate in the council staff dialogue. Many councils short- change this arena, pushing the opportu- nity for learning into the formal public hearing, which is not designed to pro- mote much in-depth analysis of complex issues. The arena of disposition/legislation is designed to get to a vote, not to pro- mote careful analysis of complex issues. A D M I N A D M I N I S T R A T I O N ADMINISTRATOR/ MANAGER'S SPHERE • Staff and implementation Performance issues • Values and expertise Gratification The fourth arena, community rela- tions, is becoming more important. It is rapidly transforming the role of the council and how it spends its time. Communities today are more dependent upon sophisticated alliances and part- nerships among groups, both public and private entities. Jurisdictions are subject to multiple, profound changes in how public officials operate. Today, the com- inunity arena requires more time spent in interactions outside city hall and puts greater time pressure on mayors and councilmembers. r I� Council meetings exist for the purpose of doing the council's business. Litera- ture on how to conduct effective and productive meetings specifies the need for an adherence to clearly defined rules and procedures. PUBLIC MANAGEMENT 7 G A O D A M M M L I A I----- S P N N S ! O-_ I A S R L S G I E I 'T E O S C R- M - -_ N U Y A E ,_ L T N T I T S O N Figure 3 shows the purpose, typical setting, focus, and key characteristics of each arena. All four arenas are essential to highly effective councils' fulfillment of their leadership, policy-making, goal - setting, and empowering responsibilities. A highly effective council will hold at least one goal -setting retreat or "ad- vance" annually. It also will hold two study sessions monthly, usually between regularly scheduled public hearings. Here, councilmembers will confer with staff and other experts on significant items under consideration that will eventually require official actions. While these meetings should be open to the public as observers, the public should not participate in the council staff dialogue. Many councils short- change this arena, pushing the opportu- nity for learning into the formal public hearing, which is not designed to pro- mote much in-depth analysis of complex issues. The arena of disposition/legislation is designed to get to a vote, not to pro- mote careful analysis of complex issues. A D M I N A D M I N I S T R A T I O N ADMINISTRATOR/ MANAGER'S SPHERE • Staff and implementation Performance issues • Values and expertise Gratification The fourth arena, community rela- tions, is becoming more important. It is rapidly transforming the role of the council and how it spends its time. Communities today are more dependent upon sophisticated alliances and part- nerships among groups, both public and private entities. Jurisdictions are subject to multiple, profound changes in how public officials operate. Today, the com- inunity arena requires more time spent in interactions outside city hall and puts greater time pressure on mayors and councilmembers. r I� Council meetings exist for the purpose of doing the council's business. Litera- ture on how to conduct effective and productive meetings specifies the need for an adherence to clearly defined rules and procedures. PUBLIC MANAGEMENT 7 Arena Purposes Typical Setting Focuses Key Characteristics Goal Setting • Establish vision • Explore potentials • Set goals • Set direction/ priorities -Community -Services -Staff action -Budgets Retreat or advance— informal off-site • Future of community • Evaluation of -Needs -Trends -Strategic issues • Community desires and values • Leadership • Informality • Sharing of options • Open dialogue • Creative thinking • Humor and adventure • Face-to-face/group interaction Many councils, however, drift from these rules and procedures in pursuit of informality, collegiality, and "just being nice." They let their meetings drone on with a lack of focus, redundant com- ments, and endless discussion. Rules and procedures do not pre- clude citizen input, courtesy, or sensi- tivity to public concerns and view- points. They respect all these elements and the necessity to conduct business in an orderly, disciplined, and productive manner. Exploration and • Understanding the issue(s) • Problem identification • Selecting "best options" • Building commitment Study session— conference room • Developing knowl- edge for decision making • Sorting of options • Examining consequences • Setting strategies • Making competent and informed decisions • Starting council -staff dialogue • Questioning and test- ing ideas • Exchanging information • Negotiating and consensus building No_voting Face-to-face/group interaction Vic;} Disposition/ Legislation • Taking official action • Voting on items -Resolutions -Ordinances • Gathering public input • Mobilizing support Public—formal council meeting in chambers • Going through the agenda (formality) • Showing authority • Ratifiying/adopting • Dealing with political pressures • Identifying psychological needs Meeting formally • Setting and following rules and procedures • Encouraging public input and involvement • Gaining high visibility • Dealing with pressure/advocacy from groups • Voting • Interacting as groups Elections are contests among individuals vying to become members of the coun- cil. They are not valid, objective assess- ments of the public's feeling about the quality of the council's performance as a governing body and about whether or Community Relations • Interacting with constituents/citizens • Building alliances • Doing outreach and liaison • Coordinating with other entities Numerous— diverse formats Communicating • Problem solving • Collaborating and coordinating • Forming partnership(s) • Acting as a community Being "outside" city hall • Responding to requests ° Starting joint ventures Facilitating interagency activity Using multiple inter- action modes and communication techniques not it is addressing issues effectively. Highly effective councils seek feedback through a number of market research tools such as focus groups, surveys, and questionnaires. Typically, the phone calls a councilmember receives or the com- ments made in public hearings are not valid or accurate reflections of the entire community's sentiments about issues and about the council's performance. "Market research feedback" should be ongoing and should be included in the annual goal -setting retreat or advance. 8 NOVEMBER 1997 Personat Learning and Development Leader Leaders read, attend workshops, and constantly seek information, under- standing, and insight. Highly effective councils are composed of members who honestly know they don't know it all. They take advantage of the myriad of opportunities to learn. and to perfect their skills by reading, going to state and national municipal league workshops, and attending every forum that can ex- pand their skills to lead and govern well. A highly effective council also learns as a council. It works closely with the manager to improve its leadership skills and the council-manager relationship, assessing objectively its performance on each of the 10 habits. This assessment should include the observations of coun- cilmembers, manager, department heads, and selected members of the community who have occasion to work and interact with councilmembers. The effective council should decide where gains can be made, then set up the opportunity through council workshops to learn the skills needed to make these gains. In 1990, Mayor Margaret Carpenter and City Manager Jack Ethredge of Thornton, Colorado, began a process with Thornton's council to increase the council's leadership skills and effective- ness that incorporated the 10 habits de- scribed in this article. First, the council conducted a careful reexamination of the city's mission and the role that it had to assume to ensure fulfillment of that mission. Then, in dis- cussions with the city manager, coun- cilmembers made a commitment to lead- ership innovation and excellence that focused on long-term and strategic issues vital to the community's future. The pro- cess involved advances, close attention to community feedback through focus groups and surveys, and frequent self- evaluation of both council's and staff's Manager'sThe • Focus the council on leadership and achieving a quality future for the community. • Select a time and place to conduct a facilitated discussion about fac- tors affecting the council's effec- tiveness. It is recommended that the manager be involved in this discussion. • Invite the council to assess can- didly and objectively its perfor- mance relative to the 10 habits of highly effective councils included in this article and other effective- ness indicators that councilmem- bers feel are appropriate. • Have the council identify where significant gains in effectiveness are desired. Develop specific strategies and op- portunities with the council to achieve desired goals. • Schedule specific skill -building workshops for the council. Include key staff members when the focus is on council -staff relationship issues. ® Establish a process with the coun- cil to evaluate gains that have been made and to target new opportu- nities for improvement. • Remember: peak performers con- stantly seek to improve their per- formance. They know they are on an endless journey of growth, performance effectiveness, and achievement. performance and sense of partnership. Now, the council holds multiple ad- vances each year to define and validate its strategic perspective and policy leader- ship. Skill development workshops ac- company these advances and focus on defined needs that are identified by coun- cilmembers. Specific "time-outs" are taken to evaluate how the council is func- tioning as a team, as well as how it func- tions with staff and with the community. The continuous quest for effectiveness al- ways begins with the question "Is there more we should be doing to improve our leadership performance and to ensure a quality future for our community?" As Jack Ethredge observes: "The entire process has helped Thornton's council to identify the issues that are essential to achieving our community's goals and to building collaborative relationships with citizens and with staff to agree about the goals. Thornton now is a community of partnerships, all focusing on a vision and using our combined resources to become the city we want to be in the future. There has been a real breakthrough in the amount of creative energy that is moving Thornton forward." The last, and probably most impor- tant, point: Keep your sense of humor. Governance is a serious business dealing with the vital issues affecting our com- munities and the quality of life we expe- rience within them. But humor reduces friction and stress, lets others know that we and they are human, and brings a pause that refreshes our insight and commitment. It is essential to forging and maintaining good relationships. Every community deserves nothing less than a highly effective council that embraces accountability for the commu- nity's performance in creating its future and in effectively addressing, in the pre- sent, those challenges vital to attaining that future. That is what is at stake: our communities' future. With few excep- tions, every council can be highly effec- tive and can provide strong leadership, but to become effective will require a good governance model and disciplined adherence to the fundamental habits of effectiveness. 10 Carl Neu, Jr., is executive vice president of Neu and Company, Lakewood, Colorado. All rights are reserved to Neu and Com- pany and the Center for the Future of Local Governance, 1997, PUBLIC MANAGEMENT 9 t wad kb x �Cancer Word Advice for thEe Newly Elected City Official By Audrey A. Herbrieh ,U,t.tnlcil lace �',. city ufSr .. ilea-t.)�irg Ch€ card arrived in We trLail at: the most appropriate ihnc. I opened t4c envelope to End <i black, -and -white picture of a vintage Eernale ball player encircled Iry the words: "[ have learner that ,you Sllanldii�t go through life will, a catcher's mittoil both hands. You need ut IW able to tbrOW SOITAetlliuf lack." I stared .it the from of tilt' cud a great deal, studyiing, ills comically brazen ornail oil the front befolu pic>c "Frog to open tt. When 1 Finally slid, 1 smiled at the hanAvrincn now ind de-— ai congmrulam y m"sati'e On. Inv recult election, %vol followed by sonic encouraging persona] wrim l,s. 11 u+t; ;List what 1 needed. I was fresh horn reteivinp a surpris- np victory in our MCA City c mmcii cicction. I call it =i surprise because i _ did not amsider nlysdrwe' l� die of cky I p,Mit es at Clic time. Let file explain lvIlvr. I was a twertuy-fide year-old c.ol- l�c�e pr(,t'csScrr ;ho had Mewed to town le•idi my husband scarcely more than a ;car prior to tbc election. I was up apaitim lin incounbent and two lon;- Lirue residents, one. 147th prior cmiricil expMetnce. I gm", up in the cods ay with no true politieal SCI-Vicc ul my name, Additionally. I had a baby on the wav; this occupied ?sly tho!" ht5 and m adt me wonder if IN "as the l7c'sr Chile Ctrl 17n7`SLIc a new endeavor. SM4 1 had been Trus mind b>, what I had' sceii in otl3 city and deterfllin+ed Mac I could be a pt.z;itil'r deSion- rnaker or the city, And apI)amndy some Ckimns t` reed. 5, ewn thotigh I the nof: iiancy iltyselfrva "politician" at Life Baxley, none - useless I became one acid am noxv proud to senT in nl:y capacity. f3ut that doesn't mean the shack Iaano of Ia>einy in the position: has a-orn off. =liter clic election, I Cound nlyself curiously a:s <- Og if I %ws indeed like the player on illi- card. Was I Foolishly smnd!rig at the amp of my budd-m 7 )olid -I enduvors witil two catchers mutts on (A "as I prepared M ttnabashcdlj•° "catch" ,trail "dirov,, blies % Viliat type of' polhic:al player was I' At the very (east, I liad rw(C years to answei Illy own questions as I accepted die rok of Alderman, Place: 4, Oil the Schulenburr, City Council. I dill so with can- Alence, but I All quietly possessed a bit of nervous- ness. I couldn't hells but mmil ler if IS do a good WK if It male pmgr ss, and if 13 be a right "fit" for the c.itl• and her c itiz ns. I found comfort, though, in reminding mywT that d elected r:lfflictlls, s<ason:cl c?r rookies, proualrly harbor Bili ndl We Sault, reservations that I dad. What I discove.rcd first about being an elected official is We amazing lam- ing cLti-ve that it entails. Just as a bail - player Int_tst Vmrk at becorningo Part f a team, say, wo must a city Mal, "16 picpare iu,,,�Sclf For my new posi- non. I began with the. resources I had at ,hand--namey� the lurerr s I E f n S 1 0 'Y' N .. C 1; a u lk"EMMR NICE; ltaltt H and ca51 ac...c'J4 C(I i:it)' . I .Y4an'C0 by obta,i tizg as much iitcratute from as many places .as possi( le._._ -1 stud - led municipal law online, 1 rcCiLlO cd publications horn the t)tiict (d M, Attorney {,enema I react copies +,i pam nem1papet articles Maout our heal clan= cottnc.il ineet ign I obtained copies of cur MY ordinari e la, ok and employes policy niatnual, art([ I asked lot" of dnc'silons of Our MY achuh nuator. Doing so goo me amus It back ,ncmnd knowledge to initially feel comfortable in my new political \kin. brill. 1101MV diel_ \y -as inuch to learn, and every week I look l)h e' in the vast amoum Of ill forrnatiorl 1 was We to gather and understand. As }last of that learning curve, I quicklyin-add discoveries about things I shook] do ,as a city Mid, and thane [hing5 l naost cc.'riainly Sl]t1 dd not do. F3eing mindful of bcsc has helped Inc;gain conficicllc.e and direction dtln, nit' own political I]acil. Here, 1 w1h ur Qkr the Adlo z -Q list of pulpit: of;tci l "Dos" and "Don'ts," rii lit?l?'4;i (}lag each It£?I7 yCll. sC'tVC :15 [.';t:nilG ;; t.lJda lice, ?liar]g a. similar Polk k Cal pad, for you, the vin"t, elected. First, consicle. ;all that you should dry as a pubic crMciai: L Do remember My you rwL Flach of you made a ccutmicus deck sWn to run € n public officer, pmmpn cd by specific: causes and goals. The past election excitement and subse- tluctiu SII C.t„t,tiSioil to office cal; lie. over- vdl hiung. Bask in the glory of the ra,v advcninre, which lays in wail. I,on ,-oil, but remain level-headed c1lough to not We sight of your ir]itial gods ,and pronli,s s. 2, Do adopt a collaborative nihidset. Rernernbei that rarely can You singk handedly nuke chmigcs in to Cuy, not shook:] YOU it-), to do s«. You Alun[ br syil &g to work yyAh others, jusc .as you expo t then: to be wiUQ,.. to y ala with yon By sldxsWbWg uo the notion than effcciivc coil lborahon bleeds progress, unirnaginablc lie>si.- tive changes can result. 3, Do encourage cooperation. Once you adapt a collabonuive mi ld- Se.t, CuCGi.11 ging cooperation i niong,, I-ellov,- officials, city workers, cltiZcrls, and so on is a given. here Iles in any one city a wealth of experience and knowledge, ready to be capped. Be be ,'aiding forcC• that not only recognizes out aCtiwly c'liC:ol ages cooperation on aH Ms. 4. Do think brag -term. While t )Fou may be templed to slake. cleci- sions Based oil the fide -anal -now, Ilyvays renlcruber iliac any decision, no rrmuer how seernrr gly srlall, _m have long-range affects. PQeci your -- Of and the issue, at hand into the future ---one week, one I'.lonth, one year, cen ]years --and try to consider the possible remllm 111 doling so, you will be nukhig hucrlli ent choices, all the while gaining corrfidCuCC ill y(All o,xii 1n. mss of cic bion -making. Now, consic r chew general "cloWts" of being, a Public official: . Don't be afraid to ask clues - tions. The old adage "Ignoranu is bliss" cir"itilly dots not riflg trllf ill public office. Ask as inany questions as you can u) wholcwr you Lain ----to counciLne nbus, it, city adunnis;tra- Lms, to Giozens. QttC,Ctit_)ns do not t7 emi n an hiscrtsibla on the Coll- trary, help slow that you have. a genuine interest in gaining as Aloe:], knowledge and perforaniug your jc,b as best you call. 2. Donk dual] the voke of evgw- rilence. Thcrc: arc mimy people .vho ycru will en ouln r who 'mow a grc-;ti deal more than you . . . .11d dvil is oluay. 1k.'hell solneone with expehcuce speaks, iakc note, Wisdom conies in all corms, and you just ne -el- tl=o Mat wisdon] "01 be t,u"nered (roti any cine indidduaL As a ucwl�,- elec led official, you have a lot. to is :rn, and it is to your advallia ,e to lisle[] io those with experiu'!]Ce. 3, lit>nh feast herar—hetet[. When you [ilk. you imlit pe' qdc to 6un. The Sallie goes fol all people! `hcy- do not jgust `,'dart qni to auditardy- r"Ay- 16F iricssaga they vaunt you w Sol rcccptively and feel yalid,t,cd. Even though you niq not agrec "ith Kill or you nuy bu K?I' q to infornlalti Cin they= do not have, you Of And pur- s:lf ,n a col-lrnunicahon advalua ' by mcer ling th it Coln i-imrs with till' l.1t1110St SiDC(76W and Cate. QW,num on PqC V; TAKING CARE OF ORGANIZATIONS THAT 'TAKE CARE OF OUR COMMUNITY Municipal Auditors rVatti,al Fsn t,cial s;t acmes; ;i.uditg = Csr�U�yF'u ill a1 Saatv�nc�nt �l.v:�rtls . 9"k atM, Saie> 7a-, Allocation Tcstuig ]'crud Prevention and I)ewok it lt7ucct 13e1,, CVA At ;,ging P,at, c , f lo- , QfU, 734 N. Vex Oia6 Rd" Jai, ?)"d €r t,'r ')7O24 Ii >63.ra23 r,.ena iLt scorn Word of Advice for the NewlyElected City Official t. UK let: setbacks discourage yom NOW <>f(are is nor a winnow 1At-op<rsis:&M IQ0U find yourself being Ilnsucctssful it) I pursuit or we that you are part of a minority vote, do not let char serve as a setback At you. nicinber t11.It Vau are part oi sonlu- thinl. Urger than any one particular la m Cl77l i',llt. You t7U am norMRIr}' ti -4' L you do or say at chat Inc"nenr in time; rather, y1011 zu-e defined by v..,ho you are in totality. One setback, then, is m-imir !n Elle grand scheme of yaw efiecti4Teness as a political leader. By personally keeping in iniad these 'dos" and "don'ts," I have been able to avoid the WHO "d<l,.ddc cats .cr's mitt" syndromic that I so dreaded at the beginnhig of my service and replace it with solid t:ssur.. al7ce in my own abilities. Likely, all city officials could craft rheic own list of "dos" and AMC as we all have l novviedl;e to share in some. way. But the above list is mw that leas worked paaciculauly well f'or Inc in dl< prev airs months. And pe=r-- hqm you v+rill fila) that it call work Rg you as well. What I do know= novv char I ehd not Tully malize vvhe_n I lust began illy ^.emit' on the MIS' Gcormcl 1 dw I CAN Vrow something back" --1 do have much to contribute in the best interest of my Cary and her chk zens. 'Ile cit.iz,n, %vho c1ccle°d Ine I.I1cvT than long, before I did. 1 ani just thankfid chat, wirk their support and (11e SLIPI)ort 01 Many on the adllltllls-- trative side of le city, I, tort was able to realize that truth. So may w you haven't muivccl a cunbrandatory card not- had m+u mm: pat you on We 1.>ack wir.I a "nice W compkmenL But, wm amend, you We undertaken a nobk role in tire: rcalln cyf public scr<<V , and nark are taking, nou:, As you embark on t7our political endeavors, kcep in mind the a orerllCmloned CtpS, kilt,' C r mbdful rhat, like the woman on rile card I Ic-c:e.'ivcd, van must Ic lrn i loo rite. limy And then, in time., :`ou h nuk., loo, that you Can "throw back" in ,a positive wary ,I< 1 NAI'C IjN C.C7RPORATIONN Torn Christ.'te., Regional Nliln3a ,cr Telephone 817-795,0175 75 Fm: iii t- 71`)74997 MAL tC l'71`( ell fTi`ilaC[,rll[I.CC)1 Ct M=I QRV?<I A"', hand Utraero Mml sY73tef Rcso�+rccs Budra.N,i. �..... Planning GIS Gerald Flock Associates, Inc. 101 E Pack. Bum Suite 600 Plano, 7X 07+ 866-748-770 guraldpiockPgc r li4h .=:wxmc i s (.cP, Lit is i7CG T I_ % A S 1 0 W N Council/Commission Advisor February 2007 R,&Sc-C Municipal, Research and Services Center of Washington 1_2 - Workin Together for Excellence in Local Government ' ncil/C �nnnission Advisor Page I of 3 MRSC has joined with Carl Neu, Director of the Center for_the Fut_u.re of.Loca.l___Gover_nance_, P. Stephen DiJulio, Attorney, Foster Pepper PLLC, and Paul McClintock, Professional Registered Parliamentarian, to bring you the "Council/Commission Advisor." The Council/Commission Advisor will feature a new article each month with timely information and advice you can use.* Was I Elected To Do What the People Want or to Govern Well? February 2007 Carl H. Neu, Jr. President of Neu and Company and Director of the Center for the Future of local Governance TM "Irwillm. =11m_ ;Every public official, especially when newly -elected mayors and council members are sworn in, to later be sworn at on occasion, confronts this question. The answer really is yes to both parts of the question, but the latter, to govern well, is the primary obligation. All elected officials operate in two simultaneous realities: the here and now (the world of "what people want") and the future (exercising wisdom, judgment and courage to be stewards of the quality of the community's future). Let's start with "to do what the people want." Jim Miller, Executive Director of the League of Minnesota Cities and a highly -respected former city manager, professes that this sentiment is appealing. It also is problematic. How does any public official really know "what the people want" as compared to the true desires and long-term best interests of the larger community or entire city? Public opinion and wants are often diffuse and frequently transitory, sometimes even selfish and myopic. How does one balance them with what "other people" want and what the entire community may desire? The reality is that deciding and responding to what the people want boils down to the inevitable necessity to make difficult choices among conflicting wants and desires. It also requires choosing between short-term wants and long- term priorities and responsible leadership decisions about, in our world of limited resources, what is more essential to the entire community especially in the long view. This leads us to the second part of the question "to govern well." Management and general service delivery within our cities have improved greatly! But, what about governance? Most councils, regardless of the good intentions of each member, routinely just continue to perform out of tradition in'the same ways councils have for decades; same room/seating arrangements, same procedures, same mindsets, same council -staff interaction protocols, same methods for citizen input, same decision-making techniques, same focus on the "here and now" agendas evident at typical council meetings, same focus on immediate issues brought to council members' attention. Some councils, however, actively are seeking and practicing better ways to govern. http://�A.ww.mrse.org/focus/ceadvisor/ecaO2O7.aspx 6/1.9/2008 Council/Commission Advisor February 2007 Page 2 of 3 Great "world-class" councils, and each of their members, focus on three pathways to extraordinary performance as governing bodies: perspective, process, and performance results. Perspective. World -Class councils see themselves existing to: • Think about and plan for the future for their cities, • Establish vision and well-defined strategic priorities, • Prescribe end/results to be achieved, • Ensure/empower management and employee performance to produce those results, • Sustain relationships with citizens that instill confidence in council's trustee/leadership, • Demonstrate a sense of stewardship for the city's future and provide the leadership to ensure that actions taken today will produce the future desired for tomorrow. Process. Governance is more than individuals having the courage, traits, and desire to lead. Governance emerges in every city through engaging in processes and collaborative relationships that enable the council to function as a group (team) in providing the leadership required to make a better city for tomorrow (focusing on the future) and today (outstanding operational performance and service delivery). Performance Results. Results which truly,produce citizen satisfaction and position the city for continuous performance excellence, a better future, and a more business -like manner for dealing with the challenges it faces. Strategic it; Why • • HE Communities are future seeking. But first, they must be able to imagine and decide what they want the future to be. Secondly, they must decide how they are going to make this desired future become a reality. Strategic leadership is a process that brings people together to think about the future, create a vision, and invent ways to make this future happen through determination, community teamwork, and disciplined actions. It is the primary function of leadership making things happen that would not happen otherwise and preventing things from happening that might occur ordinarily. It is getting people to work together to achieve common goals and aspirations; to transform visions into reality. A strategic plan is a document recording what people think - a broad blueprint for positive change that defines a vision and key outcomes that must occur to attain this vision. Other implementation efforts and plans such as the comprehensive land use plan, financial plans, and development and redevelopment plans are policy and decision making tools that assist the community, council, and administration in achieving the vision. A strategic leadership perspective and plan will challenge and stretch the community's imagination in defining what is possible and test its will to commit to a great and exciting, rather than "good enough" future. The strategic plan will forge and sustain the critical partnerships and relationships that will translate the strategic plan a reality. This Strategic Plan is a compass - a dynamic and continuous process about how a community sees, thinks about, and creates, through decisive leadership and management commitment and actions, the future it desires. It defines the long-term "big picture" framework within which all policy, fiscal, administrative, and tactical decisions need to occur. "! It focuses the governing body on defining Ends and Results to be achieved and the management team on the Means necessary to achieve those Ends and Results. The Town Council of Pinetop-Lakeside, Arizona, in addressing its obligation to serve by governing well, in 2005 created and adopted a Strategic Manage nent_Pla_n.(SMP) that boldly focuses on the community's future and pursues excellence in providing leadership and management. In late January, 2007, the SMP was updated to fiscal years 2007-08 and 2008-09. It is the Town's plan to update and report upon results achieved in a Strategic Management Plan Progress Report (A Report Card to the Citizens of Pinetop-Lakeside). http://www.mrse.org/focus/ccadvisor/ccaO2O7.aspx 6/19/2008 Council/Commission Advisor February 2007 Page 3 of 3 The contents of the SMP and accompanying Report Card are specific to a given community and its particular circumstances. These governance tools, however, are universally applicable to every community that governs, manages and serves well for the benefit of the whole community in response to "was I elected to do what the people want or to govern well?" The answer truly is: "I was elected to do what the people want to the degree I can in a fair, equitable and responsible manner and I was elected to govern well - to ensure my community seeks, achieves and sustains a truly fulfilling future in which people take pride and satisfaction." P. Stephen ®ilulio, a partner at Foster Pepper & Shefelman PLLC, focuses on litigation involving state and local governments, and land use and environmental law. Particular experience includes representation of jurisdictions on eminent domain, utilities (water, wastewater, storm water, solid waste systems), local improvement districts, facility siting and contractor litigation. More. Paul McClintock is a Professional Registered Parliamentarian and Certified Parliamentarian, professionally serving organizations as parliamentarian at meetings, teaching workshops, and writing parliamentary opinions. He also is an active leader in the National Association of Parliamentarians and the American Institute of Parliamentarians at several levels. More. *The Articles appearing in the "Council/Commission" column represent the opinions of the authors and do not necessarily reflect those of the Municipal Research & Services Center. littp://www.mrsc.org/focus/ceadvisor/ccaO2O7.aspx 6/19/2008 Hce' k v` le o t ^ ',c)-ve ° ing Bodies The structures and responsibilities of private sector boards of directors have been a focal point of the media in recent years, with such scandals as the collapse of Enron and the conviction of the president of United Way. This emphasis has brought public attention both to the for-profit and the not-for-profit worlds. In response, many governing bodies also have refocused their efforts to align their actions more closely with their mandates. With responsibilities from policy creation, stewardship, and rate setting to the ethical considerations and values involved in serving the public, the elected bodies of local governments (referred to here as councils) are finding themselves undergoing fundamental changes to meet these often-conflicting demands. For the councils, effective governance requires both accountability and organizational strength to create long-term programs for efficient investment. This twofold need requires all participants in the group to think globally but act locally. When John Carver produced his ground-breaking work on governance and the role of the board of directors, he clearly defined the decision-making obligation of the board to be focused on the "ends" decisions, which are those that "are always about the changes for persons to be made outside the organization, along with their cost or priority. Ends are about the organization's impact on the world-much like cost-benefit-that justified its existence."1 All other decisions of the organization are considered to be about the means by which these ends are achieved. As Carver notes, "Knowledgeable skeptics think boards can never get beyond being spoon fed by their executives and that, because of their nature, boards must remain fundamentally reactive. With good evidence, many people believe that boards will always stumble from rubber-stamping to meddling and back again. They believe the realities of group decision making forever destines boards to be incompetent groups of competent people."2 In order for boards to meet the goals of their creation, they must become ends focused for appropriate actions to take place." Using Carver's model for board governance, the present author proposes that, before governing bodies can center their attention on their ends decisions3 and on how their local oovernments affect their client base (citizens), they must go through an evolutionary process that is both evaluative and systemic. While Carver's theory gives us the model of highly functional board behavior, it does not clarify the various evolutionary steps a board must take to become oriented toward the ends in its actions and policies. This article proposes a five-step process by which an elected council can reorient its activities toward becoming a true governing body that provides the supervision and policies it needs to create and maintain itself as a high-performing team. In the book Corporate Lifecycles: How and Why Corporations Grow and Die and What to Do About It, written in 1988, Dr. Ichak Adizes argues that both public and private organizations have definite life cycles but that their deaths are not predictable, unlike those of living creatures, which grow and die. An organization's prime of life ("prime") is at the peak of its life cycle. The stages before prime are characterized by flexibility; the stages after, by control. Prime represents the optimal balance between control and flexibility. Achieving this point of operational prime should be the goal of an evolving board that wishes to maximize its success. Early Stages of Evolution At the start of this evolving process, councilmembers must, first, review the roles the local government needs it to perform so that it can collectively produce the required end results. This assessment of the desired level of commitment will lay the foundation on which all other actions are built and will be the starting point for the council's development toward prime (see accompanying diagram). Based on this first evaluation, the next step will be to decide whether the right people have been assembled and empowered to operate as a high -performing, goal -oriented team. According to David A. Nadler's research, "Eighty-one percent of survey respondents said it's become more difficult to recruit qualified directors; close to 40 percent said their boards lack an effective process for selecting new members."4 With these challenges, the ascent toward prime can be hampered if the right leadership team has not been fashioned. In stage three of the evolution, the council will focus on clarifying and prioritizing the critical organizational ends and then reset its policies and agenda to reflect this knowledge, as it gains control over how its time and expertise are being used. This route will also afford the flexibility needed to respond to the changing demands of its environment. During this stage, the council should start to assess its normative behaviors and beliefs. The idea is to ensure that there is a strong alignment between the strategic goals of the organization, or its ends, and the team dynamics that will be needed to support these goals. Last Stage and Prime of Life In stage four of the council's development, its focus must turn to its relationship with the manager or key staff members and to the functioning of these critical informational links. This will entail a two-pronged examination, both of the sources of information that are used by staff and of the filtering process that can occur as information is presented to the council. If these systems of information flow are not operating effectively, the council can quickly find itself in an "informational closet," with little light being thrown on the true nature of the organization's needs and even less connection to the realities of the larger industrial climate in which it operates. In the fifth and final stage of council development, the council is in prime and is focused, as Carver recommends, on the end policies and tasks of governance. Operating in its prime, the group will be results - oriented, with systematic plans that are followed and appropriately implemented. Further, the locality will still be growing, by expanding its mission to serve its citizens in new ways, or by maximizing its resources in an innovative manner. At prime, the governing team is both flexible and predictable5, and thus it is highly responsive to the rapidly changing world where it operates. 1. John Carver, "Boards That Make a Difference" (San Francisco: Jossey-Bass, 1990). 2. A. David Nadler, "Building Better Boards," Harvard Business Review (May 2004), p. 107. 3. Corporate Lifecycles, LLC, Diagnostic workshop reference material (Institute for Organizational Renewal and Development, Los Angeles, CA, 1995). © 2004 International City/County Management Association. Please n-.rl y L:'� if you experience any problems. WHAT YOU S DEEPLY PASSIONATE isOt [ iOU.. !-SAT YOU BE THE BE5T IN THE r D AT Good to Great -Jim Collins, Author YOUR R ENGINE 0 ti) p ti 4 - r- N o a o °-14„ i � 4- a o m 5- .f: $” G -0- a,, 4- CU v bA Co C3 Q— m O O Oto U � z:5O W >LU r�c3 PC >rn O U to � ,1 7 C�l ti O Url, v L;cn z °n O o CU o N Q O o w � - cn o '� cn O *_ � v (L) to b Ov � ^� 4- rc ori 4- cli In � a � u W LLJ m •� x O rd O O Q f— v cn ;jc- ° rp ° �- vTcn 4— ,- cnS s-, N �c CL U") A O ." D ci0ate- z_ °= I 3fa to i` O O O N S O v •a�� a 5� �3 0 m ti) - O 4 - r- N cu CU L C3 OQ c z:5O >rn O Url, L;cn O O CU o N Q w CL)'d O' '� O � to b Mcp � > C) x O O O cp cn ;jc- �- vTcn 4— ,- s-, N �c CL to + O O O N b O v •a�� a 5� �3 0 10.4 rd 0 ° O Cd C" cu 0 p "� '0 cu O m �' O tw 00 ® N v � •- p .r U �D ca -05 4' cn C-. M cu 0 fn v V+ ccf O O 10 Principles of Good Practice for City Councils Principle 1 The Council has a very clear sense of the Strategic Direction for the ci organization. They not only know the Strategic Direction, they continuously monitor a evaluate the effectiveness of the organization against the Council mandated Strategic Direction. They ask continually whether their policies are consistent with the agreed upon strategic direction and whether the course of action being pursued will permit them to arrive at the strategic objectives of the Council. I Principle 2 The Council has a dear sense of its role and function in the community and the city organization. They understand their role in making and monitoring policy. The Council focuses on 'making policy" not "doing policy. The Council monitors and evaluates expected outcomes while continually posing the question Why? rather than What? Principle 3 The Council has in place clear written policies which vest authority in the entire Council not blocks or factions. No one individual Council member speaks for the Council. The Council speaks with one voice on matters of importance while respecting each Council member's need to disagree on various issues. Once the will of the Council has been expressed, each individual member supports the will of the Council to the best of his/her ability. Principle 4 The Council views itself as a Team and understands its role as a Team in the broader context of city government and the community. Council members respect each other and value the diversity of opinions and perspectives each member brings to the Council. They all insure every Council member is actively involved in the work and decisionmaking of the Council as a valued team member. Principle 5 The council establishes clear lines of authority and accountability to run the business of city government. It insures it has a highly competent professional manager and staff to do the work required to implement its policies. The City Manager is given clear direction through its policy setting process and holds him/her accountable for results. Individual Council members refrain from giving personal direction to staff on any matters no matter how innocent it appears on the surface. Principle 6 The Council monitors and evaluates its own performance as a Team to insure compliance with its own rules of conduct and expectations. The Council recognizes its effectiveness in achieving its strategic objectives can be impacted by its own actions or inactions. It examines itself to insure it fulfills its role of leading the organization in its agreed upon strategic direction. The 10 Principles of Good Practice for City Councils is based on research by of James F. Jeffers, PhD for an upcoming book "Cities That Work'. 0 j a Dedication to service and helping others. ® Committed to' the mission of the organization. 0 Approaches the work. of the council on behalf of the citizens of the entire community. 0 Welcomes and .seeks information and advice but makes his own decisions. @ Is loyal to the orga=* ation and the community. 0 Agrees to abide by and support the decisions of the majority. e -ResPects the rights of others to disagree. Does not openly criticize other. council members or .staff. Backs council members and staff when -unjustly criticized or accused. Treats staff with respect and dignity. Follows the chain of command in dealing with staff problems. Commits the time necessary to do, the job. PM article Template PI��LI� �€AP��GE�ifEP#� May 2002 BQ'tratelgic Planning That Fees an I to rate Approach Page 1 of 4 College Station, Texas, is a growing community of 65,000 residents. Home to Texas A&M University, the city has grown over the years as the university expanded its enrollment. In the past several years, the community's economic base has enjoyed moderate diversification, which has also brought new residents to the community with a variety of needs for service and community involvement. The growth and change have led the council to focus on improving one of its key functions: determining College Station's future direction. The council engaged in a strategic planning process to create a plan that would systematically outline the desired outcomes—and the human, financial, and time resources needed to accomplish them. The goal of the plan is to facilitate the council's and the staff's ability to: ® Align the city's priorities with changing conditions and new opportunities. ® Create shared commitments among councilmembers, city staff, and residents regarding short- and long-term endeavors. ® Assess the city's present and future strengths, weaknesses, opportunities, and threats. ® Maintain continuity on long-term projects and policies while enabling new elected officials to understand and influence them. As this article shows, a critical part of the planning process was to integrate it with the budget process to ensure that the strategic plan could be implemented. As with any new plan, one of the dangers is that it will end up on the shelf and not be implemented. In October 1999, work began on establishing the council's long-term policy and leadership direction. The focus on a three- to five-year horizon was critical, because it would change how the council set priorities. Councilmembers agreed to move forward with the planning that December. The four basic steps of the city's strategic planning process: 1. Identifying the core mission, values, and goals. 2. Assessing the internal and external environment. 3. Setting the strategic priorities. 4. Formulating implementation plans. Strategic Planning Components College Station's strategic plan is organized around the council's mission statement and eight vision statements. The visions are broad, value -oriented statements created by the council to http://icma.org/upload/library/IQ/500352.htm 6/19/2008 PM article Template Page 2 of 4 indicate the impact that the efforts can have on the community as a whole. Each vision statement begins with the words, "As a result of our efforts, citizens will..." followed by the intended result. Vision eight, for example, states: "As a result of our efforts, citizens will live in well-planned neighborhoods suited to community interests and lifestyles." Councilmembers developed a brief list of descriptors for each statement to further focus their visions. In the case of vision statement eight, the descriptors included planning and zoning, neighborhood parks for multigenerational use, traffic management, village concept, and pedestrian mobility. The second level of the plan details the strategies or specific policies that will move the city toward realizing the corresponding vision. To achieve vision statement eight, which focuses on well-planned neighborhoods, the council lists several strategies: ® Policy emphasis to prevent residential decline and improve neighborhoods. ® Policy emphasis on ongoing update, revisions, and adherence to the comprehensive plan and development policies. ® Examine policies that set infrastructure construction standards. Each strategy is followed by an implementation plan that details the actions that will be taken to accomplish the strategy. Each plan contains several key elements. It specifies who is ultimately responsible for the implementation plan, indicates whether a policy change is required, and identifies existing and new resources that will be required to complete the plan. The implementation plans also have a series of milestones that are monitored regularly to keep them on track. Based on the time horizon of these milestones, each plan is labeled short, medium, or long term. Strategic Planning and the Budget The council and management team agreed that as a policy document and a long-range plan, the strategic plan must drive the city's annual budget. To emphasize and develop this relationship between the two documents, the responsibility for managing and monitoring the plan has been placed with the city's budget office, which has been renamed the Office of Budget and Strategic Planning to reflect this dual role. The manager and the council determined that the plan should be prepared in the spring, before the start of the budgeting process, to give the city an opportunity to include resource needs outlined in the strategic plan in the annual budget. In turn, formally committing resources in this year's budget to this year's implementation plans will influence future budgeting decisions. The strategic plan contains a level of detail that requires each of the manager's directors to clearly outline the current and future resources necessary to implement the elements of the plan for which they are responsible. During budgeting, departments can request funds to increase or expand their current service levels. Since the council developed the strategic plan, many of the requests have tied directly to the funding requirements previously spelled out in the plan. The plan has become an essential tool for the manager to prioritize the service -level adjustment requests for the limited funds available for new or expanded services. The policy direction http://lcma.org/upload/librarv/IQ/500')52.htm 6/19/2008 PM article Teinplate Page 3 of 4 provided by council is clear and specific, and covers virtually every area of service that the city offers. In addition to improving decision making, the integration of the strategic plan and the annual budget has enabled the council and city staff to better explain to the public the financial and program choices that are made. The budget document narrative is organized by vision statement—rather than by fund—so that residents can clearly understand where revenue is being spent and why the council allocated it in a particular manner. Strategic Plan Implementation Once the strategic plan was adopted, the focus centered on making it a living document and ensuring that its components were implemented. This is crucial to its success because the people responsible for implementing the plan must know what is expected of them. It also is important to make sure that the resources needed to carry out the plan are available. In College Station, the management team regularly discusses the strategic plan and upcoming milestones at weekly staff meetings. Monitoring and reporting on progress also are crucial. The Office of Budget and Strategic Planning provides a monthly update on the status of the plan and the milestones that have been met in the previous month. Lessons Learned The key to a first-rate strategic planning effort is early commitment from both elected officials and management staff. Preparing the plan takes considerable time and effort, so the results should make the time and energy spent on it worthwhile. College Station continues to refine its strategic planning process. In the next year, it wi.11 work on three major improvements. The first will add a "testing" step during the development of the strategies and implementation plans. This step will give councilmembers and staff the opportunity to check for strategies and implementation plans that conflict with or work against one another. Dealing with these conflicts as the plan is being developed will improve the soundness of the plan and make it more likely that the entire plan will be implemented. The second refinement will expand the plan's time frame. The desired time frame is three to five years. Many of the strategies in the plan, however, contain implementation actions that could be completed in the first year. As the strategic plan is revised, staff will work to ensure that the strategies are appropriate for a three- to five-year time horizon. The implementation plans within these strategies can vary between one and five years, with their start and completion dates staggered within that time frame. This emphasis on lengthening the time frame will shift the focus from an annual workplan to long-term strategic planning. The final refinement will strengthen the plan's focus on the results described by each vision statement. These changes include evaluating and redeveloping strategies so that realistic measures of progress can be tied to them. This will allow staff and council to gauge whether the plan is having the desired impact on the community or whether further actions must be explored. Milestones within the implementation plans also will be written in a uniform format that will indicate significant completion of tasks and policy choices required to complete an implementation plan and impact change, as indicated by the new measures tied to the strategies. http://icma.org/upload/library/IQ/500')52.1-itm 6/19/2008 PM article Template Page 4 of 4 Dana Ingman is former budget analyst, College Station, Texas; Jeff Kersten is director of budget and strategic planning, and Thomas Brymer is city manager, College Station. Where to Find It College Station's 2000-2001 Strategic Plan is available online at Coll cge Station Strategic Plan. Further information also is available by contacting the College Station Office of Budget and Strategic Planning at 979/ 764-3745 or by e-mail at: Jeff Kersten. Copyright O 2002 by the International City/County Management Association (ICMA) http://icma.org/upload/library/IQ/500352.htm 6/19/2008 Blackerby Associates --History of Strategic Planning Page 1 of 4 Home I Transformation I Manufacturing I Retail I Public Sector I About Us I Contact Us Home The strategic approach to management is as old as warfare, and it even has ® Modern Strategic Plans military origins. This article traces the history of strategic planning from its ancient Transformation Greek origins through early 20th century and modern corporate practices, to o State Government Plans recent public sector efforts. Manufacturng ModemStrategic tannin ® GPR!� 993.) Strategos and the Big Picture Retail Notes Our term "strategy" derives from the Greek "strategos, " which means, literally, Not -for -Profit & "general of the army." Each of the ten ancient Greek tribes annually elected a Government strategos to head its regiment. At the battle of Marathon (490 BC), the strategos advised the political ruler as a council. They gave "strategic" advice about fiwwr_ managing battles to win wars, rather than "tactical" advice about managing troops to win battles. In time, the job of the strategos grew to include civil magisterial duties as well, largely because of their status as elected officials. Table of Contents strategies lead to improved economic performance. From these military roots, strategic planning has always aimed at the "big picture." ® Strategos;Big Picture The focus is on results or outcomes, rather than products or outputs. Strategic ® Modern Strategic Plans planning is less concerned with how to achieve outcomes than with defining what ® Public Sector Plans those outcomes should be. o State Government Plans FO Act of 1990 ® GPRA ModemStrategic tannin ® GPR!� 993.) a Surrlir7ary Notes In the early 1920s, Harvard Business School developed the Harvard Policy Model, one of the first strategic planning methodologies for private businesses. This model defines "strategy" as a pattern of purposes and policies defining the company and its business. A strategy is the common thread or underlying logic that holds a business together. The firm weaves purposes and policies in a pattern that unites company resources, senior management, market information, and social obligations. Strategies determine organizational structure; appropriate strategies lead to improved economic performance. Through the late 1950's strategic planning's focus shifted away from organizational policy and structure toward the management of risk, industry growth, and market share. Business calls this approach to strategic planning the .'portfolio model." Predictably, it led to the emergence of industrial conglomerates. The next evolutionary steps led to the industrial economics model, where strategic decisions derive from analyses of competitive power relationships. In this model, the relative power of customers and suppliers, and threats posed by substitute products and services, new industry entrants and market rivals dictate competitive strategies. Through the 1960s, strategic planning became a standard management tool in virtually every Fortune 500 company, and many smaller companies as well. http://wAvw.blackerbyassoc.com/history.html 6/19/2008 Blackerby Associates --History of Strategic Planning Page 2 of 4 Emergence of PublicSector Strategic Planning Until the mid-1980s strategic planning remained mostly a private sector undertaking. Notions of customers, marketing, industry growth, market share and risk management were foreign to the public sector. Instead, local governments wrote comprehensive plans that dealt with the efficiency of land use and services, while federal and state agencies relied on program plans, usually limited to narrow chains of authority on the organization chart. Strategies and organizational structure became nearly independent concerns; management committees resolved inter -program conflicts. Sound familiar? The result was an emphasis on internal concerns, especially program inputs: taxes, fees, funding and staffing levels, computers, abuse, waste, fraud and fat. Reformers chanting, "Run government more like a business," changed the focus from inputs to outputs and unit costs, getting more "bang for the buck." Former Ford Motor Corporation President and Defense Secretary Robert S. McNamara started this trend by linking planning activities to the budget through the planning, programming, budgeting system (PPBS). Eighteen years later, President Carter brought to the federal government the related concepts of zero base budgeting (ZBB), invented at Xerox Corporation. Later administrations reversed the ZBB experiment, returning the federal budget to its historical incremental basis. Today's system remains internally focused, and the major budget discussions --at all levels of government --again emphasize inputs: taxes, spending, fraud, waste and abuse. Recent State Govemment Strategic Planning Efforts Seeking a better way, some governments began taking a more strategic approach to public sector planning. Chief among these public sector pioneers are the states of Oregon and Texas. The Oregon Governor's Office has long looked for ways to downsize agencies and measure their performance. It initiated Oregon Benchmarks, a document describing long term goals for the State, such as, "Reduce teenage pregnancies," and, "Create the best educated work force by the year 2000." Under the guidance of a task force made up of representatives from the executive staff, private sector, not-for-profit organizations and academia, each agency developed a mission statement, and tied it to a series of "benchmarks." They then wrote performance measures describing both efficiency and effectiveness for each benchmark. These four elements --state goals, mission statement, benchmarks, and performance measures --comprise the state's strategic plan. Some agencies, particularly in the human resources area, have made fundamental changes to their mission statements as a result of looking at their benchmarks and performance measures. The next step in Oregon's strategic planning effort is to tie the plan to the budget process. In Texas, the 1991 Legislature passed House Bill 2009, requiring all state agencies to submit a strategic plan every other year, coinciding with Texas' two- year budget cycle. A committee of the Governor, Lieutenant Governor and Speaker of the House wrote Texas Tomorrow, containing state vision, mission and philosophy statements, and eight -to -12 goal statements in each of five major functional areas. Agency strategic plans showed how they contribute to achieving the statewide goals. In a variation of performance budgeting, agencies then built their budget requests around tactical objectives that contributed to achieving their strategic objectives, with multiple levels of funding and achievement. http://www.blackerbyassoc.com/history.html 6/19/2008 Blackerby Associates --History of Strategic Planning Page 3 of 4 Texas' first legislative experience with strategic planning and performance budgeting was in the spring of 1993, though agencies have submitted ZBB-type, multiple -funding -level budget requests with performance measures since 1976. While the relationship between strategic planning and the legislative process is not clear, the 1993 session was the first since the mid-1980s oil market crash that did not require a tax bill. Chief Financial Officers Act of 1990 The Chief Financial Officers Act of 1990 (P.L. 101-576) started to change the discussions by balancing the inputs with the outputs side of the equation. The CFO Act assigns to the Office of Management and Budget's Deputy Director for Management government -wide responsibility for "managerial systems, including the systematic measurement of performance." It also assigns to agencies' Chief Financial Officers the responsibilities for developing and maintaining agency systems for "the systematic measurement of performance," and for preparing and submitting "timely performance reports." Even with these reports, the discussions are still generally tactical, or internally focused: number of airplanes acquired, documents distributed, hills hiked, installations inspected, lawsuits litigated, satellites shuttled, soldiers schooled. These internal products are tactical concerns. They focus internally on what the organization does, or produces. They do not describe the external effects of these activities, or how the activities affect people the organization is mandated to serve. These external concerns, such as safety from terrorism, security of access to natural resources, health of the economy, or education of the populace, form the basis of public sector strategic planning. Government Performance and Results Act of 199 A major milestone is last summer's passage of the Government Performance and Results Act of 1993 (GPRA, P.L. 103-62). Beginning in 1997, this bill will require all federal agencies to write a strategic plan that includes: mission statement, outcome -based goals and objectives, descriptions of how goals will be achieved, resource needs and how objectives will link to performance plans, a list of external influences on goals, and a program evaluation schedule. GPRA will also require agencies to write an annual performance plan, and to submit an annual performance report, comparing actual to planned performance levels. For complying agencies, GPRA provides for waivers of administrative procedural requirements over staffing levels, salaries and funding transfers. The bill establishes pilot programs for early testing of these ideas, including a pilot test of "performance budgeting," which will relate levels of planned outcomes to corresponding budget levels. Strategic planning has always been a government --especially military -- responsibility. Somewhere along the line, the U.S. government lost this strategic perspective, and until only recently, focused almost exclusively on governmental inputs to frame major policy discussions. Various executive branch efforts to re- orient this focus have been intermittent, and then tended to emphasize internal products, or tactical concerns. The latest reform, the Congress -initiated GPRA, shows great promise in inspiring the government to re -capture its strategic focus, and to build plans around the effects of government on its external customers. http://www.blackerbyassoc.conVhistory.html 6/19/2008 Blackerby Associates --History of Strategic Planning Page 4 of 4 This document was originally published in Armed Forces Comptroller magazine, vol. 39, no. 1 (Winter 1994), pp. 23-24. This document has been slightly revised, primarily by adding the Table of Contents. Return 2 PNIlip Blackerby is a Principal with Blackerby_Associates, Inc.., whose mission is to help any organization transform into a high-performance enterprise. An experienced management consultant, Mr. Blackerby's public sector experience includes positions in the National Institute of Standards & Technology, as Associate Deputy Treasurer of Texas, budget director for the Texas Comptroller of Public Accounts and planner for the U.S. General Accounting Office. He has also served on Boards of Directors for several not-for-profit organizations, and operated four private sector businesses. Mr. Blackerby invites readers' comments. Return Home I Transformation I Manufacturing I Retail I Public Sector I About Us I Contact Us © Copyright 1993 Phillip Blackerby. All Rights Reserved. Reprinted with permission. © Copyright 2003 Blackerby Associates, Inc. All Rights Reserved. http://ww-w.blackerbyassoc.coin/history.html 6/19/2008 Leadership, and Courage Keys to Local By Robert J. O'Neill Jr. Elected and appointed officials in local government face enormous challenges. The speed and complexity of worldwide change are taxing every institution and complicating government processes and functions. The things that matter most to citizens — employment, education, safety and security, health care, and the environment — transcend conventional boundaries of our federal system and our public, private, and nonprofit sectors, so the burden falls on local t t 1 rith these issues Current a roaches to govemmen o El "tip e w pp federalism and the reality of the federal government's long-range financial projections demand that local and regional governments create innovative ways to address challenges and opportunities. So what do we know about innovation in the local and. regional context? How do we successfully develop and incubate new approaches to important issues? What sustains innovation and creates a culture of adaptation? I have spent most of my career trying to develop a capacity for innovation in government organizations. I have studied some of the "best organizations" in each sector. Having worked very hard in Hampton and Fairfax County, Virginia, to develop the capacity to innovate and having observed the approaches used in places such as Phoenix and Charlotte, I have learned many lessons. One of my most important observations is that, while there are an infinite number of conditions and circumstances facing local governments, the innovators exhibit a number of similarities that are necessary to sustain innovation over time. These include strong citizen trust, managerial leadership and competency, and policy and managerial courage. One of the most significant factors determining the success of local government is how it relates to those it serves. I believe that the working capital of innovation is citizen trust. Given the "fishbowl" in which local governments operate and the constant media attention drawn to their unsuccessful ideas, most governments are risk -averse. Governments in which trust levels are low rarely try anything new, since failure is magnified. Governments with strong levels of citizen trust seem able to withstand the occasional failure and continue to innovate. One has only to examine the City of Bellevue, Washington (pop. 117,000), to get a feel for the level of trust and community vision shared by citizens and their local government. The city is dedicated "to serving residents and providing them with ... the resources ... they need to maintain and improve their neighborhoods." The council's vision statement which talks about the council and staff's commitment to customer service, quality, and partnership and how the city "cares about its citizens and employees and values its roots" — is prominently displayed on the city's Web site. And on countless occasions, Bellevue has partnered with citizens to preserve their vibrant and healthy neighborhoods. Strong political and managerial leadership and competency also play a major role in determining a local government's level of innovation. Having leaders who can create meaning and a compelling vision within the strategy of change, support and protect a culture of innovation, and focus on results and accountability are important prerequisites. Being able to synthesize information to create a persuasive case for change and to execute strategies designed to move an organization forward are at the heart of what makes a transformational leader. Never being satisfied with "good enough" and having a driving curiosity for what "could be" are essential. The value of senior management leadership is measured, in part, by how well the organization performs tomorrow. There is no substitute for managers who can develop and link vision, strategy, and results. The city of Phoenix (pop. 1.3 million) is particularly adept at leveraging the combination of political and managerial leadership. The elected officials let the city manager do what he does best while they focus on providing a far-reaching vision for the community. This successful pairing of political and managerial leadership has earned Phoenix the reputation as one of the two best -managed cities in the world and one of the two most highly ranked U.S. cities, according to the Governing/Syracuse University Government Performance Project. Finally, there is no substitute for policy and managerial courage. Organizations that deliver results that matter to those they serve and develop extraordinary levels of trust are led by elected and appointed leaders who are unafraid to tackle tough issues in new ways. They nurture an organization that succeeds often and is not afraid to fail. The city of Charlotte, North Carolina (pop. 540,828), exhibited this kind of courage during the early 1990s, when the city launched its City Within a City (CWAC) initiative. Charlotte officials easily could have written off the city's decaying neighborhoods in favor of channeling public resources toward its rapidly growing downtown financial center. Instead, in 1991, city leaders launched a comprehensive (and risky) series of strategies — including workforce development, educational attainment, crime reduction, small business assistance, and improvements in neighborhood housing policies and community appearance — aimed at meeting the community development and quality -of - life needs in its older urban neighborhoods and business districts. While Charlotte considers the CWAC initiative a success, those involved readily admit that much remains to be accomplished. Initiatives such as these, which tackle tough issues in innovative ways, are long journeys with sometimes changing destinations. These are the important concepts we must adopt to better develop and support innovators. If local government is an "industry," it greatly "underinvests" in research and development. We need to do a better job of identifying the big ideas that will help shape our response to the larger issues facing local government. We can be more helpful to innovators in identifying leading practices and making them happen. Local government leaders are a committed and dedicated force to improve the quality of life in our communities. While the challenge of innovation is formidable, the rewards for our residents are well worth the price. 1 " lo Introduction Public service is a noble profession. We have chosen to serve the people and our community in order to achieve our common goals. The city government of Virginia Beach is an organization created by our. citizens to help accomplish things for individual benefit as well as the common good that people could not accomplish acting alone. One of our responsibilities as members of this municipal government is to turn community goals as described by our elected officials into reality. In a world of limited resources and noble goals, choice is always necessary_ Strategy helps us make those choices. This document articulates the strategic planning work of the City's seven businesses formed in response to City Council's Destination Paints. It provides the context for the 3 -Year Plan. Together they serve as an aligned, strategic direction for our City, in order to move us toward City Council's vision of Virginia Beach: Community for a Lifetime. While this Strategy is intended to serve as guidance to all members of our organization, it is the responsibility of the Department Leadership Team to give it life_ This group constitutes the leadership of our City organization, who through their daily decisions and actions can affect change in our community and in our organization. You will note the consistent use of the pronoun, WE and its possessive, OUR. WE refers to all members of the Department Leadership Team. It is only through our collective efforts that we can sustain our organization as one capable of achieving City Council's vision for Virginia Beach - This document, Community for u Lifetime: A Strategy to Achieve City Councips Vision for the Future, is an updated and revised edition of the document first published in 1998. It is organized in three sections: I. Foundations for Strategic Planning Our City Mission, the City Model of Governance, City Council's Destination Points and the strategic work of the seven business areas are the foundation for the development of our Strategy and are described in this section. II. Core Strategies This section includes a general definition of strategy and outlines the eight strategies that guide our actions as members of the organization. CoN;zw ii�y for a Lifetime — I September 2004 6 III.Community for a ��� The seven City businesses serve as guidance for members in developing and achieving our goal of making Virginia Beach a Communi0 for a Lifetime. Cultural and Recreational Opportunities Economic Vitality Family and Youth Opportunities Quality Education and Lifelong Learning Quality Organization Quality Physical Environment Safe Community Within each of these sections, the outcome strategies that guide us in achieving City Council's vision are described. This Strategy is only successful when all of the businesses are connected. Each one instrumental in the success of the other! Community for a Lifeti;n e — 2 September 2004 H _Foundations trate 'c Planning The City's Mission and City Council's Destination Points are the foundations for our strategic planning work. WHY we exist is stated in our City's Mission: The City of Virginia Beach government exists to: enhance the economic, educational, social and physical duality of the community; and 0 provide municipal services which are valued by its citizens. In order to fulfill this mission, a partnership between City Council, City management, and the member workforce must function well. This relationship involves interrelated processes - governance, management, and service delivery - and is referred to as the City Model. Each process plays a key role in defining and shaping the organization in providing services and opportunities to citizens and other customers, and in achieving valued outcomes for the Community. Maroc/ Cm Counca Boards/ Task Forces) Co-nnittees City-M.Mger Degart�nt Directors Dkfsion i it3am�rs {1 First Um Super imrs Our Cid Model Council - Manager Form of Goverment D,eaasr©r Fahwa DsEcflon ef{tr GOVERNANCE ---� IldormaibnJEdmtion —WHAT' atrtsl Desaes Morias Sport FUDBACK htANAGE1 LENT "HOS" SERVICE DELB "ACITONS" Results Impact Lyle Siumk Associates, br.. Corlmwziz y, for a Lifetime j September 2004 In the Governance Process, City Council answered the key question of WHAT we want to become as a community and the priorities that need to be addressed. City Council outlined its vision for the City in its Destination Points: 8 Economic Vitality — Expanding Job Opportunities, Business Tax Base • Safe Community — Feeling of Safety at Any Time, Any Place • Stable City Finances — Defined Services Determining Revenue • Quality Education for Lifelong Learning f Destination for Tourists • Service Quality to Support Urban Living • Protection and Use of Our Natural Resources and Environment • Active Citizens/Business Involvement as Partners with City Government • Regional Cooperation, Marketing and Leadership • Mobility for Citizens, Businesses, Tourists — Coordination of Alternative Diodes These Destination Points described the desired future of the City of Virginia Beach. With the direction set by City Council through the Governance Process, HOW we accomplish that vision is addressed in the Management Process. City management must translate the direction from City Council into visible systems and processes designed to achieve the best possible results. City Council continues to refine this direction and assess progress toward attaining the vision in their annual planning sessions and in the policy decisions they make at every City Council meeting. This ongoing effort resulted in City Council's adoption of our key City businesses: Cultural and Recreational Opportunities Economic Vitality Family and Youth Opportunities Quality Education and Lifelong Learning uality Organization' Quality Physical Environment Safe Community With the Service Delivery Process, the direction and systems are taken by members and volunteers of the organization and turned into services, opportunities and outcomes valued by citizens of our community. The seventh business area was established at City Council's annual planning session in 2002. Comrl7un2o for a Lifetime — 4 September 200 g. . - v. f : > .. June 20,2008 The accounts of the Town are organized on the basis of funds, each of which is considered to be a separate accounting entity. All governmental fund types are budgeted and accounted for on a Generally Accepted Accounting Practice (GAAP) basis for financial statement presentations. The Governmental Fund types use a financial resources measurement focus and utilize the modified accrual basis for accounting and budgeting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual, meaning that it is measurable and available. Available revenues are defined as those funds that are collectable within the current period, or collectable within a timeframe to pay liabilities of the current period. Typical revenue items that the Town accrues are sales tax, franchise fees and hotel/motel tax. The sales tax paid by consumers in September is received at the state in October and is not received by the Town until November. These amounts were "earned" in the prior fiscal year; therefore, the Town accrues the revenue in the proper year in which they are earned. Franchise fees, hotel/motel tax, etc. are accrued based on the same principle; revenues are booked when earned, not received. Expenditures generally represent a decrease in net financial resources and are recorded when a measurable fund liability is incurred. Accruals for expenditures usually represent accounts payable that were purchased or the service was performed in the fiscal year. Governmental Fund Types Governmental fund types are those through which most governmental functions of the Town are financed. The acquisition, use, and balances of the Town's expendable financial resources and the related liabilities (except those accounted for in the Proprietary Fund) are accounted for through Governmental Fund types. Descriptions of each fund contained in the Town's books are as follows: 1. The General Fund is the general operating fund of the Town. It is used to account for all Town revenues and expenditures except those required to be accounted for in other funds. Major functions financed by the General Fund include Administration, Building & Code Compliance, Fire/EMS, Public Works, Facilities/Grounds Maintenance, Finance and Human Resources, Parks and Recreation, Information Technology, and Engineering. Sources of revenue include sales and use taxes, development fees and permits, court revenue, and franchise taxes. 2. The 413 Economic Development Corporation Fund is a local option established under the Texas local government code. 413 funds are generated from a %2 cent sales tax levy and proceeds can be used for general economic development and infrastructure support. The Town has dedicated all of these funds to the debt payment of the bonds issued for the construction of Westlake Academy. The Westlake Property Tax Reduction Sales Tax Fund will receive its funding from a %2 cent sales tax levy that was formerly earmarked for the 4A Economic Development Corporation. The purpose of this fund is to reduce local property tax rates throughout Texas by providing cities with an additional unrestricted revenue source. These funds may be used for general Town expenditures, capital projects, or debt service. Westlake is unique in that we are able to use the PTR fiend to reduce economic pressures that would normally result in the adoption of a local property tax. Currently, the 413 sales tax receipts do not cover the bond debt payments; therefore, the remaining funds needed are being paid from this fund. 4. Westlake Visitors Association Fund receives its primary funding from a 7% hotel occupancy tax adopted by the Town of Westlake in FY 99 - 00. Proceeds from the hotel occupancy tax are required to be used for the promotion of travel and tourism in the Town of Westlake as well as municipal buildings. The $2.5M GO bond payment for the Arts and Sciences Center will be transferred out of this fund to the Debt Service Fund for payment. 5. Special Revenue Grant Fund is used to track the revenues and expenditures of grants received by the Town. 6. The Capital Project Fund tracks the infrastructure and building projects (other than those financed by proprietary fund types), funded with general operating transfers, intergovernmental revenue, bond funds and other special funding methods. Capital expenditures are clearly identified by their respective funding sources, and projects are shown in a clear, concise format. 7. The General Permanent Capital Maintenance Fund is an account to offset the future costs of repair and/or replacement of large capital assets due to age and use. Contributions from the Town's General Fund are transferred on an annual basis; resulting in a cash balance which mitigates the cash flow impact of large maintenance and capital replacement costs. 8. The Utility Permanent Capital Maintenance Fund is an account to offset the future costs of repair and/or replacement of large capital assets due to age and use related to the Utility Fund. Contributions from the Town's Utility Fund are transferred on an annual basis; resulting in a cash balance which mitigates the cash flow impact of large maintenance and capital replacement costs. 9. The Debt Service Fund is established to account for, and the payment of, general long-term debt principal and interest. This fund provides a clearer accounting of ongoing debt obligations compared to operating budgets. The Debt Service Fund is used to make scheduled payments for all debt service. Typically property tax is used to make these payments. The Town of Westlake transfers funds in from 4B Economic Development Fund, Property Tax Reduction Fund and in the coming year, Visitors Association Fund, to provide payments for the outstanding bond issues. Proprietary fund types operate in a manner similar to private business utilizing an accrual basis of accounting. Enterprise Funds account for operations of governmental facilities operated in a manner similar to commercial enterprises where the intent is to recover, in whole or in part, the costs and expenses of providing goods and services to the public. Revenues are typically generated through usage fees based on individual demands of each customer. Enterprise funds may be used when the governing body has determined that periodic determination of revenue earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. ® The Utility Fund accounts for water, wastewater and telecommunications conveyance (duct bank) services for the residents of the Town. All activities necessary to provide such services are accounted for in this Fund, including administration, operations, maintenance, financing and related debt service, and billing and collection. Parks & 151 Services 96°lk Parks & R 0% Hotel T. 3% ri El Contribution 4% PROJECTED ALL SOURCES FISCAL Y2007-2008 EMS is interest Income �. 2% 0 Franchise Fees 4% 750 in Transfers In 28% 9 Court 5% Permits & Fees 9% 180 Ml - v 1Ytsisors <�. � �" ; .: i✓40Raanrc amity Tax fenexel in¥9 typo - t. .,: fcssocta"tote £ictMSerRce ._ x+�e3ai f.`aPk1a#? ESevek+txrrYuef ReaucftoR i?erfn.:CaPalat uCaP6 _ saneYal l=aRif tFalfl,j/FIRId`.. F464 R[I ,,.. .. ,.. „.- ..C`lEf efISCS. ,. .- Pa II & Related $ 1,616,383 $ 140,745 $ 83,554 $ $ $ $ $ - $ - $ - $ 1,840,682 15`Y OperatiGns&Maintenance 2.519,124 1 1,702,462 170,489 15,000 - - 4,407,075 37% Capital Outlay 16,400 35,500 - - - - - - 51,900 0"k Transfers Out 212,250 65,000 1,029,731 286,583 - 1,593,564 13% Capital Projects 173,501 2,461,000 183,500 2,818,001 23% Debt Service - - - 1,316,314 - - - - - - 1,316,314 11% The Westlake Academy financials are made up of the following funds: General Fund — The General Fund is the Academy's primary operating fund. It accounts for all financial resources except those required to be accounted for in another fund. Major program revenues include state funding under the Foundation School Program and Local sources including Blacksmith Apprentice Program, Food/Beverage, and interest Income. State Foundation revenue represents approximately 81% of the total Academy revenues with the Blacksmith Apprentice Program contributing approximately 14%. These numbers are based on our projected year-end revenues totaling approximately $3M. The major portion of the Academy's expenditures is made up of payroll and payroll related items. This represents approximately 75% of a projected year-end $3.1M budget. Of this total budget, professional services equal 16%, supplies and materials, 5% and the remaining 4% can be attributed to other operating expenditures. Because the Academy buildings are an asset of the Town, all building related expenditures, e.g. various annual contracts to include elevator, HVAC and Electrical/Lighting contracts, interior and exterior repair and maintenance, grounds maintenance, etc. are budgeted and paid through the Town's Facilities/Grounds Maintenance Department. This represents approximately $210K of this department's budget. All current debt payments on the Academy facility are paid by municipal funds using 100% of the 4B Economic Development Fund's 1/2 cent sales tax and any remaining balance is paid with the Property Tax Reduction Fund's 1/2 cent sales tax. Presently, these payments are approximately $1.3M. In future years, the $2.5M G® bond payment will be made from the Visitors Association Fund at an amount of approximately $180K. The in-kind amount related to payroll, finance, EMS, facilities/maintenance and town secretary duties performed for the Academy is approximately $100k. This is based on the allocation of salaries and time spent on various Academy responsibilities. Special Revenue Funds — The Academy accounts for resources restricted to, or designated for, specific purposes by the Academy or a grantor in a special revenue fund. (Amounts are from the FY 2007-2008 year-end projections) IDEA -B Reimbursement Grant - The Academy received approximately $50,000 from this federal grant which can be used only for special education. Typically, a portion of one of the special education teacher's salary is allocated to this fund. Advanced Placement/IB Awards — Receipt of state funds in the amount of $5,750. Represents reimbursement of $450 per course for each official 113 training taken by MYP and DP personnel. Technology Grant - $10,420 has been received from the state for technology use. FSP -High School Allotment — State funds of $7,600 based on $275 per high school student. Funds are to be used for high school expenditures only. Agency Funds — The Academy accounts for resources held for others in a custodial capacity in agency funds. Class fund raisers are separated by grade level in this fund to account for funds received and disbursed by each class. Various other accounts include year book, choir, student council, Black Cow, etc. Source Amount, % State Funds 2,417,935.00 81.6% Blacksmith Donations 420,324.00 14.2% Other Local 125,852.00 4.2% TOTAL 2,964,11,1.00 100% Academy numbers are based on 07/08 year end projections for General Fund only Page 1 of 4 6/2012008 4:12 PM Source Amount % WA Payroll and Related 2,314,553 74.7% WA Professional & Contracted Services 478,884 15.5% WA Supplies & Materials 167,450 5.4% WA Other Operating 136,085 4.4% TOTAL 3,096,972 100% Academy numbers are based on 07/08 year end projections for General Fund only Page 2 of 4 6120/2008 4:12 PM Source Amount % WA Payroll and Related 2,314,553 49.0% WA Professional & Contracted Services 478,884 10.1% WA Supplies & Materials 167,450 3.5% WA Other Operating 136,085 2.9% Town Building & Maintenance 209,000 4.4% Town Payroll 100,000 2.1% Town Debt Service 1,316,314 27.9% TOTAL 4,722,286 100% Academy numbers are based on 07/08 year end projections for General Fund only Page 3 of 4 6/20/2008 4:12 PM Source % Academy Costs 3,096,972.00 65.6% Town Costs 1,625,314.00 34.4% TOTAL 4,722,286.00 100.0% Academy numbers are based on 07/08 year end projections for General Fund only Page 4 of 4 6/20/2008 4:12 PM Finance Advisor June 2007 RaSaC Municipal Research and Services Center of Washington Working Together for Excellence in Local Government Page I of 2 MRSC has joined with Toni Nelson, Small Cities Specialist, State Auditor's Office, Gayla Gjertsen, Finance Director, City of Tumwater, and Mike Bailey, Administrator of Finance and Information Services, City of Renton, to bring you the "Finance Advisor" column. The "Finance Advisor" will feature a new article each month with timely local government finance information and advice you can use.* June 2007 By Tori Nelson, Small Cities Specialist, Mate Auditors Office Crucial decisions involving our cities/towns are made throughout the year but most particularly at budget time. It is during this time when elected officials will determine how to allocate the limited available resources to best provide services to their constituency. In anticipation of the coming budget season, we thought a discussion on the characteristics that make "governmental" accounting unique would be helpful. The private sector has two separate financial models: one for business enterprises and one for non-profit organizations. The public sector uses a single financial reporting model that bears similarities to the private sector models but is unique in many ways. The first is that governmental accounting is concerned with services rather than profit. Only when a city has its own utilities will attention turn towards a more profit -oriented model, and even then it is a modified business model that seeks to fully finance its operations through user fees and charges, rather than make a profit. Another factor is that governmental accounting is focused on "accountability," which requires governments to answer to citizens for the actions they take and the services they provide. These factors lead to another unique aspect of government accounting: the use of funds. So what is fund accounting? The biggest surprise to newly elected officials often comes when they review financial information and find numerous "funds." The largest corporations will report operations on just one balance sheet, providing all cash, sales, etc., but in the world of government accounting, funds are used to segregate resources related to specific activities. Each fund has a separate set of self -balancing financial records and financial reports are provided for each. Cities often establish separate funds to segregate financial resources that are subject to regulations, restrictions, or limitations. This segregation provides fiscal and operational accountability for each fund. In Washington separate funds are required for streets, utilities, general operations and restricted revenue sources such as hotel/motel tax, and real estate excise tax. During the course of a year there is typically a lot of discussion about the fund called the `general fund" (also known as the current expense fund). This fund encompasses the general operations and basic services provided by a city such as public safety (police, fire and building inspection), planning, parks and recreation and finance and administration. Transportation, while considered by most to be a `general" operation of the city, is required to have its http://www.mrse.org/focus/finadvisor/finaO6O7.aspx 6/19/2008 Finance Advisor June 2007 Page 2 of 2 own fund. Some functions of the general fund, such as finance and administration, are shared with other funds to reduce costs and increase efficiency. Utility funds must be operated more along the lines of a business enterprise. Charges for services should cover all operating expenses plus debt plus reserves for future capital needs. The revenues received can be used only for the benefit of the utility. This same concept applies to other restricted revenues like criminal justice and those restricted resources mentioned above. As you are reviewing the second quarter financials for your city or town, keep in mind that separate funds for these restricted revenue sources helps eliminate the possibility of co -mingling revenues and the chance of inappropriate use. Fund accounting is one example of the unique nature of government finance. It provides accountability and serves as a tool to reflect the financial operations of the city. We will be presenting more information on this topic and other financial issues at the session entitled "Finance 101" at the AWC annual conference in Tacoma. Understanding the unique characteristics of governmental accounting will assist you in making informed decisions during the upcoming budget season. Toni Nelson is the "Small Cities Specialist" for the Washington State Auditor's Office, providing both on and off site financial training and assistance to smaller cities and towns throughout the state. Ms. Nelson has been working with the Auditors office for 6 years and prior to that was the Clerk/Treasurer for a small town for 9 years. She has co- authored the "Small Cities Manual" a detailed reference guide for new clerk/treasurers on governmental accounting procedures and presents numerous training workshops throughout the state for AWC, WFOA, WMTA, WMCA and local/regional organizations such as EWFOA and SCWMCA. Ms. Nelson is also a member of and conference track coordinator for the WFOA Education Committee. *The Articles appearing in the "Finance Advisor" column represent the opinions of the authors and do not necessarily reflect those of the Municipal Research & Services Center. http://www.mrsc.org/focus/fiiiadvisor/finaO6O7.aspx 6/19/2008 Finance Advisor November 2005 RoSo,C Municipal Research and Services Center of Washington w Working Together for Excettence in Local Government Firnince . visor Page 1 of 2 MRSC has joined with Toni Nelson, Small Cities Specialist, State Auditor's Office, Gayla Gjertsen, Finance Director, City of Tumwater, and Mike Bailey, Finance Director, City of Renton, to bring you the "Finance Advisor" column. The "Finance Advisor" will feature a new article each month with timely local government finance information and advice you can use.* November 2005 City fund balances become a favorite topic of conversation during this budget time of year. What are they? Do we need them? If so, how much should they be? These are questions commonly asked by newly elected officials and members of the public who participate in the budget review process. Let's start with what they are. Whether fund balances are referred to as "beginning" cash and investments or `ending" fund balance, the general premise is the same. Fund balances represent the net cash after all revenues have been deposited and all expenses have been paid. Just like your checkbook at home at the end of the month, it represents how much you have in the fund. Whether those future needs are cash flow considerations to pay expenses, savings for capital projects or simply reserves for a rainy day, the fact is that fund balances are a necessity. The first and foremost reason to have an adequate fund balance is "cash flow." Cities revenues are cyclic in nature. For example, property taxes are due from homeowners on April 30 and October 30. For many cities, this tax is the primary revenue source for the general fund. Cities receive most of this revenue in May and November. To meet the financial obligations throughout the year, cities must maintain a certain fund balance. The same cash flow scenario can be demonstrated in a water utility fund in which increased revenues during the summer irrigation season must carry the fund through to the next summer watering season. Measuring a city's fund balance on December 31 of each year is equivalent of looking at your checkbook the day after payday. Without sufficient.cash flow reserves, cities would be forced to borrow operating cash. Cities are just like you and me. They must save (or reserve) enough cash before they can start a capital project. The city fund balance may include the savings for these future capital projects. Understanding what portion of the fund balance represents cash flow and what portion represents reserves for a capital project will help you understand how much fund balance is enough. An additional consideration is a "contingency" or rainy day reserve. For those cities with a heavy reliance on a single source of revenue, it is prudent to consider a contingency reserve. Hurricane Katrina has left a lasting impression on all of us. The City of New Orleans has lost retail sales taxes and property taxes that will never be made up. Having a contingency reserve for natural disasters would help to reduce the effect of financial disaster. Another reason for http://www.mrse.org/focus/finadvisor/final 105 . aspx 6/19/2008 Finance Advisor November 2005 Page 2 of 2 considering a contingency reserve is if your city has a heavy reliance on one or two major employers. If the thought of one of these employers leaving your community makes your worry, then perhaps a contingency reserve is worth considering. So how much fund balance is enough? Several different methodologies may be used to calculate this number. The Governn"lent Finance Officers Association has developed a "recommended practice" for fund balance levels. It generally suggests a minimum of 15 percent, but many issues come into play when making this determination. Keep in mind your city has numerous factors that make it unique. Try to evaluate all of these factors, along with consideration for capital reserves and cash flow needs when deciding what the fund balance number should be. Toni Nelson is the "Small Cities Specialist" for the Washington State Auditor's Office, providing both on and off site financial training and assistance to smaller cities and towns throughout the State. Ms. Nelson has been working with the Auditors office for 6 years and prior was the Clerk/Treasurer for a small town in for 9 years. She has co-authored the "Small Cities Manual" a detailed reference guide for new clerk/treasurers on governmental accounting procedures and presents numerous training workshops throughout the State for AWC, WFOA, WMTA, WMCA and local/regional organizations such as EWFOA and SCWMCA. Ms. Nelson is also a member of and conference track coordinator for the WFOA Education committee. *The Articles appearing in the "Finance Advisor" column represent the opinions of the authors and do not necessarily reflect those of the Municipal Research & Services Center. http://www.mrsc.org/focus/finadvisor/final 105.aspx 6/19/2008 Appropriate Level of Unreserved Fund Balance in the General Fund (2002) Backl4round. Accountants employ the term.hind balance to describe the net assets of governmental funds calculated in accordance with generally accepted accounting principles (GAAP). Budget professionals commonly use this same term to describe the net assets of governmental finds calculated on a government's budgetary basis.' In both cases, fund balance is intended to serve as a measure of the financial resources available in a governmental fund. Accountants distinguish reserved fisnd balance from unreserved fund balance. Typically, only the latter is available for spending. Accountants also sometimes report a designated portion of unreserved fund balance to indicate that the governing body or management have tentative plans concerning the use of all or a portion of unreserved find balance. It is essential that governments maintain adequate levels of fund balance to mitigate current and future risks (e.g., revenue shortfalls and unanticipated expenditures) and to ensure stable tax rates. Fund balance levels are a crucial consideration, too, in long-term financial planning. In most cases, discussions of find balance will properly focus on a government's general fund. Nonetheless, financial resources available in other finds should also be considered in assessing the adequacy of unreserved fund balance in the general fund. Credit rating agencies carefully monitor levels of fund balance and unreserved fund balance in a government's general fund to evaluate a government's continued creditworthiness. Likewise, laws and regulations often govern appropriate levels of find balance and unreserved find balance for state and local governments. Those interested primarily in a government's creditworthiness or economic condition (e.g., rating agencies) are likely to favor increased levels of fund balance. Opposing pressures often come from unions, taxpayers and citizens' groups, which may view high levels of fund balance as "excessive." Recommendation. GFOA recommends that governments establish a formal policy on the level of unreserved find balance that should be maintained in the general fund .2 GFOA also encourages the adoption of similar policies for other types of governmental funds. Such a guideline should be set by the appropriate policy body and should provide both a temporal framework and specific plans for increasing or decreasing the level of unreserved fund balance, if it is inconsistent with that policy. 3 The adequacy of unreserved fund balance in the general fund should be assessed based upon a government's own specific circumstances. Nevertheless, GFOA recommends, at a minimum, that general-purpose governments, regardless of size, maintain unreserved fund balance in their general fund of no less than five to 15 percent of regular general fund operating revenues, or of no less than one to two months of regular general field operating expenditures.`} A government's particular situation may require levels of unreserved fund balance in the general fund significantly in excess of these recommended minimum levels.' Furthermore, such measures should be applied within the context of 1 For the sake of clarity, this recommended practice uses the teens GAAP, fund balance and budgetary fiend balance to distinguish these two different uses of the same tern. Sometimes reserved ftrnd balance includes resources available to finance items that typically would require the use of unreserved fund balance (e.g., a contingency reserve). In that case, such amounts should be included as part of unreserved fund balance for purposes of analysis. 3 See Recommended Practice 4.1 of the National Advisory Council on State and Local Budgeting governments on the need to "maintain a prudent level of financial resources to protect against reducing service levels or raising taxes and fees because of temporary revenue shortfalls or unpredicted one-time expenditures" (Recommended Practice 4.1). 'The choice of revenues or expenditures as a basis of comparison may be dictated by what is more predictable in a government's particular circumstances. In either case, unusual items that would distort trends (e.g., one-time revenues and expenditures) should be excluded, whereas recurring transfers should be included. Once the decision has been made to compare unreserved fund balance to either revenues or expenditures, that decision should be followed consistently from period to period. In practice, levels of fiord balance, (expressed as a percentage of revenues/expenditures or as a multiple of monthly expenditures), typically are less for larger governments than for smaller governments because of the magnitude of the amounts involved and because the diversification of their revenues and expenditures often results in lower degrees of volatility. long-term forecasting, thereby avoiding the risk of placing too much emphasis upon the level of unreserved fund balance in the general fund at any one time. In establishing a policy governing the level of unreserved fund balance in the general fund, a government should consider a variety of factors, including: • The predictability of it revenues and the volatility of its expenditures (i.e., higher levels of unreserved fund balance may be needed if significant revenue sources are subject to unpredictable fluctuations or if operating expenditures are highly volatile). • The availability of resources in other fiords as well as the potential drain upon general fund resources from other funds (i.e., the availability of resources in other funds may reduce the amount of unreserved field balance needed in the general find, just as deficits in other funds may require that a higher level of unreserved find balance be maintained in the general fund). ® Liquidity (i.e., a disparity between when financial resources actually become available to make payments and the average maturity of related liabilities may require that a higher level of resources be maintained). ® Designations (i.e., governments may wish to maintain higher ,levels of unreserved find balance to compensate for any portion of unreserved fund balance already designated for a specific purpose). Naturally, any policy addressing desirable levels of unreserved fund balance in the general fund should be in conformity with all applicable legal and regulatory constraints. In this case in particular, it is essential that differences between GAAP fund balance and budgetary fund balance be fully appreciated by all interested parties. Approved by the Committee on Accounting, Auditing and Financial Reporting and the Committee on Governmental Budgeting and Management, January 30, 2002 Approved by the Executive Board, February 15, 2002. Recommended Budget Practice on the Establishment of Strategic Flans (2005)_(BUDGET)LI Background. Strategic planning is a comprehensive and systematic management tool designed to help organizations assess the current environment, anticipate and respond appropriately to changes in the environment envision the future, increase effectiveness, develop commitment to the organization's mission and achieve consensus on strategies and objectives for achieving that mission. Strategic planning is about influencing the future rather than simply preparing or adapting to it. The focus is on aligning organizational resources to bridge the gap between present conditions and the envisioned fixture. While it is important to balance the vision of community with available resources, the resources available should not inhibit the vision. The organization's objectives for a strategic plan will help determine how the resources available can be tied to the future goals. An important complement to the strategic planning process is the preparation of a long -tern financial plan, prepared concurrently with the strategic plan. A government should have a financial planning process that assesses the long-term financial implications of current and proposed policies, programs, and assumptions. A financial plan illustrates the likely financial outcomes of particular courses of actions. Strategic planning for public organizations is based on the premise that leaders must be effective strategists if their organizations are to fulfill their missions, meet their mandates, and satisfy their constituents in the years ahead. Effective strategies are needed to cope with changed and changing circumstances, and leaders need to develop a coherent and defensible context for their decisions. National Advisory Committee on State and Local Budgeting (NACSLB) Recommended Practices provide a framework for financial management, which includes strategic planning. Recommendation. The Government Finance Officers Association (GFOA) recommends that all governmental entities use some form of strategic planning to provide a long-term perspective for service delivery and budgeting, thus establishing logical links between authorized spending and broad organizational goals. While there is not a single best approach to strategic planning, a sound strategic planning process will include the following key steps: (1) Initiate the Strategic Planning Process. It is essential that the strategic plan be initiated and conducted under the authorization of the organization's chief executive (CEO), either appointed or elected. hnclusion of other stakeholders is critical, but a strategic plan that is not supported by the CEO has little chance of influencing an organization's future. (2) Prepare a Mission Statement. The mission statement should be a broad but clear statement of purpose for the entire organization. One of the critical uses of a mission statement is to help an organization decide what it should do and, importantly, what it should not be doing. The organization's goals, strategies, programs and activities should logically cascade from the mission statement. (3) Assess Environmental Factors. A thorough analysis of the government's internal and external environment sets the stage for an effective strategic plan. A frequently used methodology for conducting an environmental assessment is a "SWOT" (Strengths, Weaknesses, Opportunities, Threats) analysis. Strengths and weaknesses relate to the internal environment, while analysis of opportunities and threats focuses on the environment external to the organization. Local, regional, national, and global factors affecting the community should be analyzed, including (a) economic and financial factors, (b) demographic trends, (c) legal or regulatory issues, (d) social and cultural trends, (e) physical (e.g., community development), (f) intergovernmental issues, and (g) technological change. Also, a government should develop mechanisms to identify stakeholder concerns, needs, and priorities. Among the mechanisms that might be employed to gather such information are (a) public hearings, (b) surveys, (c) meetings of community leaders and citizens interest groups, (d) meetings with government employees, and (e) workshops for government administrative staffs and the legislative body. (4) Identify Critical Issues. Once the environmental analysis has been completed, the next step is to use the resulting information to identify the most critical issues. Issue recognition should reflect stakeholder concerns, needs, and priorities as well as environmental factors affecting the community. (5) Agree on a Small Number ofBroad Goals. These written goals should address the most critical issues facing the community. It may be necessary to define priorities among goals to improve their usefulness in allocating resources. (6) Develop Strategies to Achieve Broad Goals. Strategies relate to ways that the environment can be influenced (internal or external) to meet broad goals. A single strategy may relate to the achievement of more than one goal. There should be a relatively small number of specific strategies developed to help choose among services and activities to be emphasized. Use of flowcharts or strategy mapping is encouraged in the design of startegies. To optimize the success of these strategies, opportunities should be provided for input from those who will be affected. (7) Create an Action Plan. The action plan describes how strategies will be implemented and includes activities and services to be performed, associated costs, designation of responsibilities, priority order, and time frame involved for the organization to reach its strategic goals. There are various long-range planning mechanisms available to enable organizations to clarify their vision and strategy and translate them into action. (8) Develop Measurable Objectives. Objectives are specific, measurable results to be achieved. Objectives and their timelines are guidelines, not rules set in stone. Objectives should be expressed as quantities, or at least as verifiable statements, and ideally would include timeframes. (9) Incorporate Performance Measures. Performance measures provide an important link between the goals, strategies, actions and objectives stated in the strategic plan and the programs and activities funded in the budget. Performance measures provide information on whether goals and objectives are being met. ('10) Obtain Approval of the Plan. Policymakers should formally approve the strategic plan so it can provide the context for policy decisions and budget decisions. (11) Implement the Plan. Organization stakeholders should work together to implement the plan. Moreover, the strategic plan should drive the operating budget, the capital plan, and the government's other financial planning efforts (12) Monitor Progress. Progress toward planned goals should be monitored at regular intervals. Organizations should develop a systematic review process to evaluate the extent to which strategic goals have been met. (13) Reassess the Strategic Plan. Many external factors, such as the national or regional economy, demographic changes, statutory changes, legislation, mandates, and climate/environmental changes, may affect the environment and thus achievement of stated goals. To the extent that external events have long-range impacts, goals, strategies and actions may need to be adjusted to reflect these changes. New information about stakeholder needs or results may also require changes to the plan. It is desirable to minimize the number of adjustments to longer-term goals in order to maintain credibility. However, governments should conduct interim reviews every one to three years, and more comprehensive strategic planning processes every five to ten years, depending on how quickly conditions change. Performance measure results need to be reviewed more frequently than the strategic plan. P] Key elements of this recommended practice are drawn from Recommended Budget Practices: A Frameworkfor Improved State and Local Governmental Budgeting of the National Advisory Council on State and Local Budgeting and from GFOA's recommended practice on "Performance Measurement: Using Performance Measurement for Decision Making — Updated Performance Measures" Approved by the GFOA Executive Board, March 2005 4 A LL for Nonprofit lana+ge€nent Alliance for Nonprofit Management > Frequently Asked Questions > Strategic Planning > FAQ Question Frequently Asked Questions Question What is strategic planning? Answer Overview Strategic planning is a management tool, period. As with any management tool, it is used for one purpose only: to help an organization do a better job - to focus its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization's direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson's Strategic Planning in Public and Nonprofit Organizations) A word by word dissection of this definition provides the key elements that underlie the meaning and success of a strategic planning process: The process is strategic because it involves preparing the best way to respond to the circumstances of the organization's environment, whether or not its circumstances are known in advance; nonprofits often must respond to dynamic and even hostile environments. Being strategic, then, means being clear about the organization's objectives, being aware of the organization's resources, and incorporating both into being consciously responsive to a dynamic environment. The process is about planning because it involves intentionally setting goals (i.e., choosing a desired future) and developing an approach to achieving those goals. The process is disciplined in that it calls for a certain order and pattern to keep it focused and productive. The process raises a sequence of questions that helps planners examine experience, test assumptions, gather and incorporate information about the present, and anticipate the environment in which the organization will be working in the future. Finally, the process is about fundamental decisions and actions because choices must be made in order to answer the sequence of questions mentioned above. The plan is ultimately no more, and no less, than a set of decisions about what to do, why to do it, and how to do it. Because it is impossible to do everything that needs to be done in this world, strategic planning implies that some organizational decisions and actions are more important than others - and that much of the strategy lies in making the tough decisions about what is most important to achieving organizational success. The strategic planning can be complex, challenging, and even messy, but it is always defined by the basic ideas outlined above - and you can always return to these basics for insight into your own strategic planning process. Strategic planning and Long -Range Planning Although many use these terms interchangeably, strategic planning and long-range planning differ in their emphasis on the "assumed" environment. Long-range planning is generally considered to mean the development of a plan for accomplishing a goal or set of goals over a period of several years, with the assumption that current knowledge about future conditions is sufficiently reliable to ensure the plan's reliability over the duration of its implementation. In the late fifties and early sixties, for example, the US. economy was relatively stable and somewhat predictable, and, therefore, long-range planning was both fashionable and useful. On the other hand, strategic planning assumes that an organization must be responsive to a dynamic, changing environment (not the more stable environment assumed for long-range planning). Certainly a common assumption has emerged in the nonprofit sector that the environment is indeed changeable, often in unpredictable ways. Strategic planning, then, stresses the importance of making decisions that will ensure the organization's ability to successfully respond to changes in the environment. Strategic planning is only useful if it supports strategic thinking and leads to strategic management - the basis for an effective organization. Strategic thinking means asking, "Are we doing the right thing?" Perhaps, more precisely, it means making that assessment using three key requirements about strategic thinking: a definite purpose be in mind; an understanding of the environment, particularly of the forces that affect or impede the fulfillment of that purpose; and creativity in developing effective responses to those forces. It follows, then, that strategic management is the application of strategic thinking to the job of leading an organization. Dr. 3agdish Sheth, a respected authority on marketing and strategic planning, provides the following framework for understanding strategic management: continually asking the question, "Are we doing the right thing?" It entails attention to the "big picture" and the willingness to adapt to changing circumstances, and consists of the following three elements: formulation of the organization's future mission in light of changing external factors such as regulation, competition, technology, and customers development of a competitive strategy to achieve the mission creation of an organizational structure which will deploy resources to successfully carry out its competitive strategy. Strategic management is adaptive and keeps an organization relevant. In these dynamic times it is more likely to succeed than the traditional approach of "if it ain't broke, don't fix it." Everything said above to describe what strategic planning is can also provide an understanding of what it is not. For example, it is about fundamental decisions and actions, but it does not attempt to make future decisions (Steiner, 1979). Strategic planning involves anticipating the future environment, but the decisions are made in the present. This means that over time, the organization must stay abreast of changes in order to make the best decisions it can at any given point - it must manage, as well as plan, strategically. Strategic planning has also been described as a tool - but it is not a substitute for the exercise of judgment by leadership. Ultimately, the leaders of any enterprise need to sit back and ask, and answer, "What are the most important issues to respond to?" and "How shall we respond?" Just as the hammer does not create the bookshelf, so the data analysis and decision-making tools of strategic planning do not make the organization work - they can only support the intuition, reasoning skills, and judgment that people bring to their organization. Finally, strategic planning, though described as disciplined, does not typically flow smoothly from one step to the next. 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Council-manager government combines the strong political leadership of elected officials with the strong managerial experience of an appointed manager or administrator. All power and authority to set policy rests with an elected governing body, which includes a mayor or chairperson and members of the council, commission, or board. The governing body in turn hires a nonpartisan manager who has very broad authority to run the organization. Born out of the U.S. progressive reform movement at the turn of the 20th century, the council-manager system was designed to combat corruption and unethical activity in local government by promoting effective management within a transparent, responsive, and accountable structure. Since its establishment, the council-manager form has become the most popular structure of local government in the United States. The form is also widely used throughout the world in countries such as Canada, Australia, the Netherlands, New Zealand, and the United Kingdom. Flow does council-manager government work? The elected council or board represent their community and develop a long-range vision for its future. They establish policies that affect the overall operation of the community and are responsive to residents' needs and wishes. To ensure that these policies are carried out and that the entire community is equitably served, the governing body appoints a highly trained professional manager on the basis of his/her education, experience, skills, and abilities (and not their political allegiances). If the manager is not responsive to the governing body, it has the authority to terminate the manager at any time. How can council-manager government benefit my community? A city, town, or county benefits from the council-manager form of government in a number of important ways: 1. Political power is concentrated in the entire governing body. The mayor and council share legislative functions 2. Policy making resides with elected officials, while oversight of the day-to-day operations of the community resides with the manager. In this way, the elected officials are free to devote time to policy planning and development 3. The manager carries out the policies established by the elected governing body with an emphasis on effective, efficient, and equitable service delivery 4. Because decisions on policy and the future of the com- munity are made by the entire governing body rather than a single individual, council-manager governments more often engage and involve their residents in decision making. Residents guide their community by serving on boards and commissions, participating in visioning and strategic planning, and designing community -oriented local government services 5. The form is flexible enough to adapt to local needs and demands. For example, some communities elect their councils at large, while others elect them by district or by a combination of an at -large -and -by -district system. Also, the mayor can be directly elected by voters or selected by and from among the council, What is the role of the manager under council-manager government? The manager is hired to serve the council and the community and brings to the local government the benefits of his/her training and experience in administering municipal or county projects and programs. The manager prepares a budget for the council's consideration; recruits, hires, terminates, and supervises government staff; serves as the council's chief advisor; and carries out the council's policies. Council members and residents count on the manager to provide complete and objective information about local operations, discuss the pros and cons of alternatives, and offer an assessment of the long-term consequences of their decisions. Appointed managers serve at the pleasure of the governing body. They can be fired by a majority of the council, consistent with local laws, or any employment agreements they may enter into with the council. The manager makes policy recommendations to the council for consideration and final decision. The manager is bound by whatever action the council takes, and control is always in the hands of the elected representatives of the people. What is the role of the council? The council is the community's legislative and policy- making body. Power is centralized in the elected council, which, for example, approves the budget and determines the tax rate. The council also focuses on the community's goals, major projects, and such long-term considerations as community growth, land use development, capital improvement and financing, and strategic planning. The council hires a professional manager to implement the administrative responsibilities related to these goals and supervises the manager's performance. /hat is the role of the mayor or chairperson? Mayors or chairpersons in council-manager communities are key political and policy leaders, and their specific duties, responsibilities, and authorities depend on the organization's charter. In council-manager communities, typically the mayor or chairperson is a voting member of the city council who presides at council meetings, represents the city in intergovernmental relationships, appoints members of citizen advisory boards and commissions (with the advice and consent of council), assigns agenda items to committees, facilitates communication and understanding between elected and appointed officials, and assists the council in setting goals and advocating policy decisions. What value does a professional manager contribute to a community? Professional managers contribute value to a community because they: • Work in partnership with elected officials to develop sound approaches to community challenges by bringing together resources to make the right things happen and produce results that matter • Bring a community -wide perspective to policy discussions and strive to connect the past and future while focusing on the present. They help the governing body develop the long-term vision for the community that provides a framework for policy development and goal setting Promote ethical government through commitment to a set of ethical standards that goes beyond those required by law. Managers who are members of ICMA subscribe to the organization's Code of Ethics, which requires them to "affirm the dignity and worth of the services rendered by government and maintain ... a deep sense of social responsibility as a trusted public servant" Encourage inclusion and build consensus among diverse interests (including those of elected officials, the business community, and citizens) by focusing on the entire community rather than the centralized interests of one or two individuals • Promote equity and fairness by ensuring that services are fairly distributed and that administrative decisions (such as hiring and contracting) are based on merit rather than favoritism • Develop and sustain organizational excellence and promote innovation. Professional managers focus relentlessly on efficient and equitable service delivery, policy implementation, and evaluation. They align the local government's administrative systems with the values, mission, and policy goals defined by the community and elected officials. Does it cost more for a community to adopt the council- manager form and hire a professional manager? Many local governments have found that their overall costs are actually reduced under competent management. Savings can come from decreased operating costs, increased efficiency and productivity, improved revenue collection, and effective use of technology. The economic health of the community may also benefit from implementation of improved business development and retention strategies. What kinds of communities use the council-manager form of government? In 2007, more than 3,500 (49 percent) of the 7,171 U.S. cities and towns with populations of 2,500 residents or more operated under the council-manager form. This structure is also used by more than 370 counties. More than 92 million people in the U.S. live in communities that operate under this form. Is the council-manager form popular among larger communities? Of the 247 U.S. cities with populations greater than 100,000 residents, 144 (58 percent) use this form of government. Larger cities and counties that use the form include: • Broward County, Florida (pop. 1,623,000) • Charlotte, North Carolina (pop. 540,000) Dallas, Texas (pop. 1,188,000) • Fairfax County, Virginia (pop. 969,000) • Las Vegas, Nevada (pop. 535,000) Mecklenburg County, North Carolina (pop. 695,000) • Oklahoma City, Oklahoma (pop. 506,000) (continued) (continued) • Phoenix, Arizona (pop. 1,321,000) • San Antonio, Texas (pop. 1,144,000) • San Jose, California (pop. 894,000) • Virginia Beach, Virginia (pop. 425,000) Wichita, Kansas (pop. 344,000) Flow can a community adopt the council-manager form of government? Most communities can adopt council-manager government through a charter, local ordinance, state enabling law, or by voter referendum. For information on how your community can adopt council-manager government, contact your state municipal league or association of counties. You can locate the addresses of these organizations on the Internet, or in the back section of ICMA's Municipal Year Book, which you may find in your local library. Once a community adopts council-manager government, how does it choose a professional manager? The vacancy usually is announced in the ICMA Newsletter, and managers, assistants, and other individuals from across the country are invited to apply. Interested parties apply directly to the council, which reviews the applications and interviews qualified candidates. ICMA makes no recommendations regarding candidates. Additional information is available in ICMA's Recruitment Guidelines Handbook. To download a copy, visit http://jobs.icma.org and click on "Recruitment Guidelines Handbook" under "Resources." What kind of educational and professional experience do professional local government managers possess? Nearly 67% of managers surveyed by ICMA in 2006 indicated that they had earned a master's (usually in public administration, business, or public policy), or other advanced degree. Respondents to the same survey said they had spent an average of 19 years in the local government management profession. Do professional local government managers have a membership organization? Yes. ICMA (the International City/County Management Association) is the premier local government leadership and management organization that serves as the professional and educational "home" for appointed professional managers and administrators. ICMA's membership also includes directors of state associations of local governments, other local government employees, academics, students, and concerned citizens who share the goal of improving local government. ICMA's mission is to create excellence in local governance by developing and fostering professional local government management worldwide. To that end, the organization provides technical assistance and publications for management professionals to help them improve their skills and increase their knowledge. ICMA also serves as a clearinghouse for the collection, analysis, and dissemination of information and data about local government. Why is membership in 1CMA Important for a professional local government manager? In addition to gaining access to valuable resources and lifelong professional development opportunities, managers who belong to ICMA are bound by its Code of Ethics, which states that every member of the organization shall act with integrity in all personal and professional matters so that they will merit the respect and trust of elected officials, employees, and the public. This stringently enforced Code specifies 12 ethical principles of personal and professional conduct, including dedication to the cause of good government. ICMA members believe in the effectiveness of representative democracy and the value of government services provided equitably to residents within a community. ICMA members are also committed to standards of honesty and integrity that go beyond those required by the law. For more information, contact ICMA or visit http://icma.org/ethics. Finally, ICMA defines professional management and recognizes individual members who are qualified by a combination of education and experience, adherence to high standards of integrity, and an assessed commitment to lifelong learning and professional development. ICMA members who meet these requirements may earn designation as an ICMA Credentialed Manager. For more information on ICMA's Voluntary Credentialing Program, visit http://icma.org/credentialing. Are there other, independent organizations that support council-manager government? The National Civic League (NCL) is America's original advocate for community democracy. This nonprofit, nonpartisan membership organization is dedicated to strengthening citizen democracy by transforming democratic institutions. NCL accomplishes its mission through technical assistance, training, publishing, research, and promoting the All -America City Awards, America's original and most prestigious community recognition program. Founded in 1895, NCL serves as a clearinghouse for information on methods of improving state and local government. The League's Model City Charter, now in its eighth edition, has endorsed council-manager government since 1915. Ethics The Ethics of Council -Staff Teamwork By the Institute for Local Self Government Question: I am a newly elected city councilmember, and I ran on a platform of "taking care of the basics" in our city. Being action -oriented, I requested a meeting with our public works director immediately after I took office to discuss some concerns that my neighborhood has had about the condition of our streets. I think this is a situation that needs addressing now. During the meeting, I noticed she was very uncomfortable. Furthermore, I got frustrated because she refused to commit herself to any plan of action to address my concerns. I lost my temper when she suggested that my concerns should be discussed with her boss, the city manager. The public works director has worked for the city for more than 10 years and should be able to respond to my concerns competently. Frankly, this is the kind of nonresponsiveness that I ran against in my campaign. What gives? Answer: First, congratulations on your election and your willingness to spend time engaged in public service to your community. Public service is complex and holds some traps for the unwary, as you discovered in your meeting with the public works director. There are probably several things triggering her discomfort. How Decisions on Street Repairs/Improvements Are Made As a city councilmember, you are now part of a multimember governing body that collectively makes policy decisions for the city. These policy directives are typically communicated to the city manager, who then provides appropriate direction to staff to follow up. For example, regarding the street issue, the city may already have a capital improvement program. This program probably has a schedule or agreed-upon standards and/or an engineering evaluation of the condition of city streets. These objective criteria guide staff on how to prioritize repairs for those streets most in need. These criteria likely have already been approved by the council as a whole and are subject to a budget also adopted by the council. The public works director's discomfort may have resulted from a concern that you were suggesting that the city deviate from its already adopted policies and budgetary priorities. It may be that you don't agree with the city's present approach or priorities, but these concerns need to be addressed to and by the council collectively. You can imagine the chaos that would result if each councilmember could individually direct the activities of city departments. This is not to say that staff members do not appreciate hearing from councilmembers about conditions of which the city should be aware. The key is to communicate this information in a way that does not direct or appear to direct staff to act. The Manager's Role This distinction between providing information to staff and providing direction is key in local governments with a council-manager form of government. In such places, the council provides direction to the manager, who then relays that direction to staff. The general role of the manager is to promote partnerships among council, staff, and the public in developing public policy and building a sense of community. The reason that your public works director suggested that you talk with the city manager is that, by law, this is the way the council-manager form of government has been set up. Because the manager recruits, hires, and supervises the city's staff and carries out the council's policies, it is appropriate for the manager to direct staff.1 In fact, most staff members are trained to do exactly what the public works director did -suggest that you contact the city manager. This enables the manager to hold staff accountable on the council's behalf for implementing the council's policies and directives. The entire council, in turn, holds the manager accountable for staff's overall performance. This "chain of command" feature of the council-manager form of government is typically embodied in the city's charter or ordinances. Elected officials who have disregarded this feature have found themselves in legal hot water. For example, a mayor in the San Francisco Bay Area was convicted in 2002 of violating this aspect of a city charter by asking that city employees do favors for him that advanced his personal investment objectives. The issue also came up in litigation involving a southern California city and a land use matter. Homeowners argued that the city's actions with respect to a nonconforming use were legally flawed because a councilmember had passed along a constituent's concerns about the structure to the city's planning director.2 Ultimately, the city prevailed, on the argument that the councilmember's communication was an inquiry and not a directive. But it was an arduous process. The court also implied that the result might have been different had the councilmember's communication been a directive to staff. This is not to say that lawsuits or criminal prosecutions will follow all communications with staff. These two cases, however, do underscore that the particular division of labor envisioned by the council-manager form of government is one that has the force of law and needs to be respected for the city to operate smoothly. The bottom line is that, if your city has a council-manager form of government, it appears that your conversation broke the law. Another possible reason for the public works director's discomfort may relate to the fact that the street improvements were in your neighborhood. Under the state's conflict-of-interest rules, you need to be especially careful about becoming involved in city issues that affect your neighborhood if you own or have a long-term lease on property in the vicinity. The conflict-of-interest rules preclude you from being involved in governmental actions that affect your economic interests. Under these rules, you have an economic interest in real property in which you, your spouse, your dependent children, or anyone acting on your behalf has invested $2,000 or more, and also in certain leasehold interests. The analysis can be complex and involve determinations of whether your property will receive improved street services (as opposed to merely repaired streets). A conversation with your agency counsel can help you understand the law's application to your specific circumstances. Remember, too, that the law only sets minimum standards for ethical behavior in public service, and public perception plays an important role in public service ethics. Whether or not you legally need to disqualify yourself from becoming involved in these discussions, think how it will look to the community in general if one of your first priorities as an elected official appears to be one that involves some kind of personal benefit in terms of improved streets in your neighborhood. This can be an ethical dilemma in and of itself if one of your campaign pledges involved a promise to get the streets fixed for your neighbors. On one hand, you told people you would take steps to address a problem (promise keeping is an ethical value); on the other, you now have a responsibility to act in the community's best interests as a whole. One approach to balancing these conflicting ethical values is to learn how decisions concerning street repairs and improvements are made in your city. It may also be that other areas of the city have the same needs as your neighborhood. Talking with the city manager about whether this issue can be put on the agenda for discussion by the council, or whether the city can sponsor a community workshop to hear residents' concerns, are two options to move forward on your goal of following up on campaign commitments. This also gives your fellow councilmembers an opportunity to participate in the conversation. Treatment of Staff Staff can be a valuable source of expertise and background on these issues, which is why it is unfortunate that you lost your temper with the public works director. Experienced and loyal staff are a precious resource for any organization, and the public sector is no exception. As you can tell from the above analysis, the public works director was trying to do her job and keep you from stepping over legal boundaries by referring you to the city manager. As a general matter, keep in mind that asking staff for special favors -even those that do not benefit you personally -puts staff in an awkward situation. Staff generally are dedicated to their jobs and want to work with elected officials to improve their communities. Forcing them to choose between doing something an elected official wants them to do and established city practices, protocols, and policy erodes that trust. Add the fact that staff may worry that their livelihoods are on the line no matter which approach they take, and the damage to the relationship goes even deeper. Why should you care? There are two sets of reasons. In terms of ethics, respect is another key ethical value. There are ways of communicating the depth of one's concern and frustration without giving in to the anger that may accompany that frustration. Sure, you have the power as an elected official to scold staff about something, but ethics is not about what we can do; it's about what we ought to do. This is why most cities have protocols or other requirements that any criticisms of staff members be made only in private to the city manager. Communicating with Staff: hat's OK and hat'sNot? In localities with a council-manager form of government, the typical ordinance provides that elected -official inquiries and information exchanges with staff are OK, but "directives" are not. Typically, this means that an elected official can share information with staff members and seek facts from them but cannot tell them to do anything. The lines can become blurry, however, when an elected official is inquiring about a problematic situation, because there usually is a strong and natural correlation between an elected official's being aware of a problem and wanting that problem addressed. As an ethical matter, it's best not to try to walk too closely to the line, for example, making it clear in the tone and phrasing of your "inquiry" that you would appreciate/expect some form of action, while carefully avoiding anything that literally would be a "directive" or a request for action. Basically, such an approach violates the spirit of the rule against councilmembers' issuing directives to staff. Violating the spirit of any rule is rarely, if ever, ethical. If what you want is action on a problem, talk with the manager. The second set of reasons to care about staff's loyalty is more pragmatic. Your success as an elected official depends on the assistance of capable staff who know your community. Savvy leaders cultivate their relationships with those in a position to help them achieve their goals. You want to motivate staff to apply their expertise, energy, and creativity to the problem you want to solve. As management guru Ken Blanchard counsels, "The key to successful leadership today is influence, not authority." As a steward of the city's resources, you have a responsibility to concern yourself with the long-term implications of city practices in general. On the staff relationship issue, veteran recruiter John Shannon (now with CPS Executive Search) says he has observed the difficulties that public agencies have in attracting top-notch individuals if the word gets out that their working environments are abusive, unstable, or unfair. (And be assured that, with e-mail, word travels fast if members of a profession feel that one of their own has been mistreated.) In fact, when organizations have had this problem for awhile, they become subject to a sort of downward spiral of mediocrity that becomes difficult to overcome. This is not the direction in which you want to take your city. Finally, encouraging talented individuals to make a career in public service is an even more long- term and global issue. The question of where the next generation of local government professionals will come from is significant enough that the city managers' organization has a committee dedicated to grappling with it. This month's column discusses the ethics of elected officials' dealing with staff. What about the city or county manager's ethical obligations to serve elected officials? Managers who are members of the International City/County Management Association (ICMA) subscribe to a lengthy Code of Ethics that includes a number of tenets on this topic: Tenet 5. Submit policy proposals to elected officials, provide them with facts and advice on matters of policy as a basis for making decisions and setting community goals, and uphold and implement local government policies adopted by elected officials. ® Tenet 6. Recognize that elected representatives of the people are entitled to credit for the establishment of local government policies; responsibility for policy execution rests with the [ICMA] members. ® Tenet 7. Refrain from all political activities that undermine public confidence in professional administrators. Refrain from participation in the election of members of the employing legislative body. ICMA promotes ethical conduct through its Code of Ethics, publications on ethics issues, and training programs for local government professionals. For more information on ICMA's ethics program, issues and advice, or enforcement of the ICMA Code of Ethics, visit the "Ethics Program" section of www.icma.org. Cartoonist Lynn Johnston described an apology as the "superglue of life" because it can repair almost anything. Do what the public works director suggested: talk with the city manager about what happened, and explore options. Then, ask to meet with the public works director to apologize for losing your temper. Experienced staff appreciate that elected officials may not be accustomed to being part of a collective decision-making body. They also understand that you are just becoming acquainted with how city councilmembers can advance both their policy goals and constituents' concerns. Being a person who acknowledges this point can get you off on the right foot with the city's staff in your new position. 'See, for example, Section 5 of the typical ordinance establishing a council-manager form of government offered on the International City/County Management Association's Web site: www.icma.org (providing that "Except for the purpose of inquiry, the council and its members shall deal with the administration solely through the city manager, and neither the council nor any member thereof shall give orders to any subordinates of the city manager, either publicly or privately.") 2Levy v. City of Santa Monica, 114 Cal. App. 4th 1252, 8 Cal. Rptr. 3d 507 (2d Dist., 2004). Adapted with permission from the December 2004 issue of Western City magazine, published by the California League of Cities, Sacramento, California. For information about Western City, call 916/658-8223, or visit the Web site at www.westerncity_.com. A fully footnoted version of this article is available online at www.westerncity.com/articles. This column is one of a series of bimonthly columns made available to local officials in Western City magazine by the Institute for Local Self Government (ILSG). The "Tough Questions and Tight Spots: Everyday Ethics for Local Officials" column is part of ILSG's Public Confidence Project. It is a joint effort of the members of the institute's advisory panel on ethics. ILSG is the nonprofit research arm of the League of California Cities. For more information about the institute's ethics resources available to local officials, visit the Web site at www.ilsc�org. The following principles drive California's ethics taws. if you find yourself in a situation that implicates one of these principles, talk with your agency counsel as soon as possible about the specifics of what the law does and does not allow. Personal Financial Gain - Appearing to Influence Decisions Public Officials: • Must disclose their financial interests. • Must disqualify themselves from participating in decisions that may affect (positively or negatively) their financial interests (see reverse for list of types of financial interests). • Cannot have an interest in a contract made by their agency. • Cannot request, receive or agree to receive anything of value or other advantages in exchange for a decision. • Cannot influence agency decisions relating to potential prospective employers. • May not acquire interests in property within redevelopment areas over which they have decision-making influence. Personal Advantages and Perks Relating to Office Public Official: • Must disclose all gifts received over $50 and may not receive gifts aggregating to over $340 (2004) from a single source in a given year. • Cannot receive compensation from third parties for speaking, writing an article or attending a conference. • Cannot use public agency resources (money, travel expenses, staff time and agency equipment) for personal or political purposes. • Cannot participate in decisions that may affect (positively or negatively) their personal interests. • Cannot accept free transportation from transportation companies. • Cannot send mass mailings at public expense. • Cannot make gifts of public resources or funds. • Cannot receive loans over $250 from those within the agency or those who do business with the agency. Fairness, Impartiality and Open Government Public Officials: • Cannot participate in decisions that will benefit their immediate family (spouse or dependent children). • Cannot participate in quasi-judicial proceedings in which they have a strong bias with respect to the parties or facts. • Cannot simultaneously hold certain public offices or engage in other outside activities that would subject them to conflicting loyalties. • Cannot participate in entitlement proceedings - such as land use permits - involving campaign contributors (does not apply to elected bodies). • Cannot solicit campaign contributions of more than $250 from permit applicants while application is pending and for three months after a decision (does not apply to elected bodies). • Must conduct the public's business in open and publicized meetings, except for the limited circumstances when the law allows closed sessions. • Must allow public inspection of documents and records generated by public agencies, except when non -disclosure is specifically authorized by law. • Must disclose information about significant ($5000 or more) fundraising activities for legislative, governmental or charitable purposes. A A PUBLIC OFFICIAL'S CONFLICT OF INTEREST CHECKLIST Key Concepts: ® A public agency's decision should be based solely on what best serves the public's interests. ® The Saw is aimed at the perception, as well as the reality, that a public official's personal interests may influence a decision. Even the temptation to act in one's own interest could lead to disqualification, or worse. ® Having a conflict of interest does not imply that you have done anything wrong; it just means you have financial or other disqualifying interests. Violating the conflict of interest laws could lead to monetary fines and criminal penalties for public officials. Don't take that risk. Basic Rule: A public official may not participate in a decision — including trying to influence a decision — if the official has financial or, in some cases, other strong personal interests in that decision. When an official has an interest in contract, the official's agency may be prevented from even making the contract. When to Seek Advice from Your Agency Counsel: The rules are very complex. Talk with your agency counsel 1) early and often 2) when an action by your public agency 3) may affect (positively or negatively) 4) any of the following: ❑ Income. Any source of income of $500 or more (including promised income) during the prior 12 months for you or your immediate family (spouse and dependent children). ❑ Business Management ar Employment. An entity for which you serve as a director, officer, partner, trustee, employee, or manager. ❑ Real Property. A direct or indirect interest in real property of $2000 or more that you or your immediate family (spouse and dependent children) have, including such interests as ownership, Leaseholds (but not month- to-month tenancies), and options to purchase. Be especially alert when any of these are located within 500 feet of the subject of your decision. ❑ Personal finances. Your or your immediate family's (spouse and dependent children) personal expenses, income, assets, or Liabilities. ❑ Gift Giver. A giver of a gift of $340 or more to you in the prior 12 months to you, including promised gifts. ❑ Lender/Guarantor. A source of a loan (including a loan guarantor) to you. ❑ Contract. You or a member of your family would have an interest (direct or indirect) in a contract with the agency. ❑ Business Investment. An interest in a business that you or your immediate family (spouse and dependent children) have a direct or indirect investment worth $2000 or more. ❑ Related Business Entity. An interest in a business that is the parent, subsidiary or is otherwise related to a business where you: ® Have a direct or indirect investment worth $2000 or more; or ® Are a director, officer, partner, trustee, employee, or manager. ❑ Business Entity Owning Property. A direct or indirect ownership interest in a business entity or trust of yours that owns real property. ❑ Campaign Contributor. A campaign contributor of yours (applies to appointed decision-making bodies only). ❑ Other Personal Interests and Biases. You have important, but non-financial, personal interests or biases (positive or negative) about the facts or the parries that could cast doubt on your ability to make a fair decision. What Will Happen Next? Agency counsel will advise you whether 1) you can participate in the decision and, 2) if a contract is involved, whether the agency can enter into the contract at at(. Counsel may suggest asking either the Fair Political Practices Commission or the State Attorney General to weigh in. Even If It's Legal, Is It Ethical? The law sets only minimum standards. Ask yourself whether members of the public whose opinion you value wilt question whether you can act solely in the public's interest. If they might, consider excusing yourself votuntarity from that particular decision-making process. Remember, good ethics is good politics. Generous support for this publication provided by. I .'�� IE� IR E . Full service and cost-effective legal solutions for our Municipal, Public Agency, and Public Finance clients for over 45 years. For additional copies of this checklist, contact 0TYBOOKS at 916.658.8257 ocsetnf 5 Gopyrighl 62004 by 6s Imime 5r Local self CoYern vit as v _ v •� Q-F1 v C N N i O J J 1 O Tu o 4Ln •� 41 so E fuv O M1. VZ C J O• v � a OJ ,N SY o m C c, O N v m� ilk -O an 4=1 fl 6 LL- m H Q O M1 ® (D v •V W 4-1 41 N v CL (v k2 C E cn n 4? J u Q 5, OU zS >r0 c E�� 's o 1 o m a as w 0 U f9 _ v •� Q-F1 v C N N i O t1? 0 41 N 4- O 0 o 4Ln •� O C C O C J O• v � a OJ O \� O Cc, C c, O C v m� v U v i = fl 6 m H Q r O > M1 �2) C M1• , d C • � i + CU u � v a o 4N O —� C E cn n °' .� + o an N Occ a w 0 U f9 Q-F1 v J t1? 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S' v Q 4...+ 4� 0 O CL 0 E EU'� Q z pq C O 'a v „a VIP� S v .+� 'C5 - O tis , U V E E41 N• >_ v„ 0E o 4t 22 o �• �� -= 41 c N O o •N41 o 4...+ CL ccs ra +� v S v .+� - m N• >_ v„ 0E o 4t 22 o �• �� -= 41 c N O o •N41 o N c o O N O E 'O •F� tSJ O O O CL i7 O L O 4-- ..O o -t-+ E O N m O -[7 _ a � o o v o v o> v o o a � V, •C 'U � O O H O Q7 � � � •i-� �--+ b � U N p U J -Q •� N E v O tt=- O E { y N i6 O C ip . a E res OJ ¢ V O Q. w E L tt .N O U N .0 a 's -' > E .� axi a ra 'S �' . S' v Connie Deford, with sidebar by Kim Cekola Do you remember your very first public meeting — when you were a brand-new elected official making decisions on behalf of your constituency? Were you filled with dread — not knowing what to expect and ill at ease with terminology and procedures? Or did you feel ready — well versed, poised and prepared? If the latter was the case, perhaps one of the reasons you felt comfortable and confident was because you had a good working knowledge of meeting management and the basic elements of parliamentary procedure — how to make a motion, what was expected of you in debate, and how the vote would be taken. In other words, you knew your rights and how to enforce and protect them. Parliamentary procedure is not meant to be restrictive or prevent free expression of opinion, but rather to serve as a protection of the rights of all — the majority, the minority, individual members, absent members and all of these together. For a governmental body, that also includes the public, your constituency. The purpose is to expedite business, maintain order, insure justice, and make sure that the will of the organization is accomplished properly and fairly. In other words, these procedures are designed to help, not hinder, the process. In a message to Congress in 1961, President John F. Kennedy stated "The basis of effective government is public confidence." As a member of your city or village council, you can help inspire that confidence by being professional in your duties, by having a good working knowledge of parliamentary procedure and by projecting your image as an efficient, fair-minded, knowledgeable official. An orderly, smoothly run meeting, one that accomplishes the tasks at hand, should be your goal. And it shouldn't last too long either. The first ingredient for a smooth meeting It all sounds so simple. A motion is made, we talk about it, and then we vote on it. How much easier can it get? Well, we have a tendency to make it much more difficult than it has to be. Parliamentary law is composed of the rules and customs governing deliberative assemblies. The most widely used authority is Robert's Rules of Order Newly Revised (Robert's Rules), used by more than 75 percent of all deliberative assemblies, including governmental bodies. If you have adopted the current version of Robert's Rules, it should be consulted as a last resort if nothing else applies, not as the first and foremost authority. As a member of the public body, you have the responsibility to be familiar with requirements and restrictions under Michigan's Open Meetings Act; your own governing documents, especially your charter; and any council rules that have been adopted regarding the conduct of business. Your agenda, how business is introduced, how debate is conducted, how the vote is taken — all of these things have their basis in parliamentary procedure. There are some basic concepts that are common to all organizations: • a quorum must be present to take legal action, only one main proposition can be on the floor at a time, • only one member can speak at a time, • the issue and not the person is always what is under discussion, and • usually, a majority vote decides. A motion is handled in the following manner: 1. A member is recognized and makes a motion by stating "I move ..." (Never use "I want to ... " or "I think we should ..." or "I motion ..." or "So moved.") 2. Another member "seconds" the motion, without waiting for recognition. This means that another person thinks the subject is important enough for discussion and vote. (To expedite business and avoid confusion when no second is offered, you might want to adopt a rule that eliminates the requirement for a second). 3. The chair states the question: "It is moved and seconded that . . ." The motion now belongs to the assembly for discussion. 4. The chair asks: "Is there any discussion?" or "Are you ready for the question?" The motion is opened for debate, and the member who made the motion has first priority in speaking to the question. According to Robert's Rules, each member has the right to speak twice in debate, but may not speak the second time until everyone has had a chance to speak the first time. 5. The chair states "The question is on the adoption of the motion to ..." the vote is taken by whatever means is established in your community. If by voice vote, "All those in favor say `aye'. All those opposed, say no'. 6. The chair announces the results of the vote. "The ayes have it and the motion is adopted." Or "The noes have it, and the motion is lost." Other basics you need to know The chair must be comfortable not only with procedures in handling motions, but also with showing impartiality, keeping the discussion focused, soliciting opinions from members, not allowing blame -oriented statements, protecting staff and colleagues from verbal abuse or attack, encouraging alternate solutions, making sure everyone knows what is being voted on, and even explaining what a yes or a no vote mean. Individual members should respect their colleagues and the chair, obtain the floor by being recognized by the chair before speaking, use correct terminology, limit remarks to the issue under consideration, raise concerns and objections during debate, and actively listen to citizen input and discussion. Also, remember that silence gives consent. Some communities have a restriction on the ability of members to abstain from voting or a member may need approval of a majority, or even unanimous approval, of the other members, in order to abstain from voting. If you have no such rule, you may abstain, but the abstention is not counted as a "yes" or "no" vote. In essence, you have given your permission to the will of the majority, whatever that might be. Which type of motion to use Following are the five classes of motions and some examples of when to use them: 1. Main motion • ITo. introduce a subject, make a main motion. 2. A subsidiary motion assists the members in treating or disposing of a main motion. • To kill or reject a main motion without a direct vote on it, move to postpone indefinitely. • To change a pending motion, move to amend. • To send a pending question to a small group for further study, move to commit or refer. • To put off action or a decision until later in the same or next meeting, move to postpone definitely. • To change the rules of debate, move to limit or extend limits of debate. • To close debate, move the previous question. • To set aside the pending question temporarily in order to take up more pressing business, move to lay the question on the table. 3. A privileged motion deals with rights and privileges of members and do not directly affect the main motion. • To return to the printed agenda, call for the orders of the day. • To secure a privilege, such as insuring your ability to see or hear, raise a question of privilege. • To take a short break in the meeting, move to recess. • To close a meeting, move to adjourn. • To set a time to continue the business to another day without adjourning the current meeting, move to fix the time to which to adjourn. 4. Incidental motions are incidental to the business at hand. • To endorse the rules, rise to a point of order. • To reverse or question the decision of the chair, appeal. • To question the correctness of a voice vote as announced by the chair, call for a division of the assembly (rising vote). 5. A motion that brings a question again before the assembly allows the assembly to reopen a completed question. • To give members a chance to change their minds, some motions can be re -debated and re -voted (the motion must come from the prevailing side —'yes' if it was adopted; `no' if it failed), move to reconsider. • To change what was adopted at a previous meeting, move to amend something previously adopted. • To change the outcome of an affirmative vote, move to rescind. Each of these motions, of course, has its own rules regarding when it is in order, if it must be seconded, if it is debatable or amendable, and what vote is required for adoption; and even if it can be reconsidered. Make it your business to become as knowledgeable as you can, and then share your knowledge with others. As you perform your duties as an elected official in the public meetings in your community, keep in mind the wisdom of General Henry Robert, who wrote the following: "In enforcing the rules there is a need for the exercise of tact and good sense. In small assemblies, and especially when the members are unfamiliar with parliamentary procedure, a strict enforcement of the rules is unwise. It is usually a mistake to insist upon technical points, so long as no one is being defrauded of his rights and the will of the majority is being carried out. The rules and customs are designed to help and not to hinder business." Sidebar Rules of procedure will keep your meeting on track by Kim Cekola Adopting rules of procedure to govern its meetings may very well be one of the most important actions a council takes. These rules assist in ensuring that meetings are efficient and genial and provide guidelines for dealing lawfully and effectively with the public and the media. Typically, council rules contain provisions for: • notification of meetings, • attendance at meetings, • meeting information packets, • agenda preparation, • voting, • public hearings, • parliamentary procedure, • conduct of meetings (decorum of council members; disorderly conduct), • public participation, • minute preparation, • committees (establishing; appointments; duties and responsibilities), • resolutions, and • ordinances (introduction; public hearing; publication; amendments). The rules should indicate the sequence of the council agenda as well as the procedure for holding public meetings. They might also include whether or not the mayor or president is entitled to speak in debate, any restrictions on abstentions, how items are added to the agenda, how the agenda is distributed, and limits on speeches. Basically, council rules of procedure should contain anything having to do with how you procedurally conduct your meetings. Rules of procedure should be adopted by the council and reexamined regularly. As a new council member, you should become familiar with any rules of procedure adopted by previous councils. If a council adopts a parliamentary authority, such as Robert's Rules of Order Newly Revised, and some of those rules are proposed to be changed — such as rules of debate, they must be adopted by a 213 vote. Strictly procedural rules, such as meeting notification requirements, etc., may be adopted by a majority vote. Sample rules of procedure are available in the member section of the MML web site, www.mmi.org Public hearings Council rules should include a procedure for public hearings. A public hearing is that portion of a meeting designed specifically to receive input from the public on a single issue. It may be required by ordinance, charter or statute. The time, place and subject of the hearing must be posted as required by the ordinance, charter or statute and only the posted subject can be discussed. The hearing may be before, during or after a regular meeting or may be at a special meeting called specifically for that purpose. Public hearings are formal meetings of the council to obtain input from the public. Public hearings offer citizens an opportunity to be heard, and should be viewed as a serious effort on the part of elected officials to secure as much information as possible about a topic before a final decision is made. Public hearings are legal requirement for some matters, such as: • adoption of the budget and • changing the zoning ordinance. Local charters may also include provisions on public hearings, such as requiring a public hearing for the consideration of a proposed ordinance. Even if not required by law, a public hearing can be useful in helping municipal officials understand how their constituents feel and why they feel that way. v Ground rules are essential to this process because: ® It reduces the element of surprise by giving everyone information at the start of the process about how the process will be conducted. As a result, the participants can focus on what is really important policy—rather than on the mechanics—process. • Ground rules clarify roles and responsibilities, thus giving everyone notice about what is expected of them. IM Once the process gets going, ground rules help keep it on track. ® Ground rules help place the focus or emphasis on substantive issues rather than on personalities, which makes conflict easier to deal with and more likely to be creative and constructive, not destructive. 1. We are all equal participants and shall have equal responsibility to voice opinions and ideas and assume equal responsibility for the success of this process. 2. Everything shall remain confidential until the group agrees what will be shared. 3. The facilitator is responsible for facilitating discussion and will endeavor to keep the discussion productive, professional and on task. 4. We will not interrupt others when they have the floor. 5. Conflict is ok because it leads to creative decisions. But it must be focused on the issues, not on personalities. Criticize ideas, not people. b. If anyone feels too uncomfortable to continue a discussion, he or she has the right to call a "time out" and request a break. 7. Our goal is to reach decision by consensus, not by voting or some other method that produces winners or losers. 8. If we cannot live with the consensus of the group, you must offer an alternative that you believe everyone else can live with. 9. Once a decision is reached, everyone will fully support the decision. The purpose of this report is to provide the Board of Aldermen. with information relative to strategic planning and the future goals of the service areas for the Town of Westlake. This document will provide a brief description of each department, a summary of the strategic services performed in each area and a look at departmental identified future goals and challenges. ADMINISTRATIVE - The Assistant to the Town Manager position is designed to provide administrative support and assistance in all areas of the organization to the Town Manager, STRATEGIC SERVICES ® Maintain an open conduit of communication between department heads and Town Manager ® Assist in daily operations of the organization • Work with developers, vendors and other customers of the Town • Manage the Town Manager's calendar • Serve on Town related committees as directed by the Town Manager ® Assist residents on Town related issues ® Liaison between Town Manager and Academy on many projects • Handles security programming for the Civic Campus ® Attends Planning & Zoning meetings and assists in related projects ® Communicates with Board members ® Assists Town Secretary on agenda packet preparation • Co-ordinates with department managers on agenda memo and ordinance/ resolution submittals ® Provides background information and conducts research for Town Manager on various projects As demonstrated by the list of tasks performed by the position, the functions of the job are varied and affect virtually every aspect of the Town. 1. hmprove the communication of Town related information to the residents 2. Continue to work on interactive portion of web portal 3. Finish the implementation of. the Voice shot program in conjunction with Town staff and Town Manager 4. Assist new Head of School with relocation and other job related issues 5. Further assist Town Manager with the Academy PLANNING AND DEVELOPMENT - The Director of Planning and Development handles projects that correspond to plan review and residential and retail development within the Town. On an intermittent basis, plan review and inspection services are contracted out based on the anticipated workloads. Additional assistance is provided by other Town staff members on an as -needed basis and 20% of a full-time clerical person, in the finance department, is charged to this department in the annual budget. • Performs or contracts for all plan review and inspections for construction (except those items specifically regulated by the fire code) • Reviews and enforces code requirements and development issues. Coordinates the Development Review Committee (DRC) meetings ® The Town of Westlake has adopted the 2003 International Codes and the 2005 National Electrical Code along with the amendments recommended by the North Central Texas Council of Governments (NCTCOG). • The Town currently has an ISO Building Code Effectiveness rating of 3 for residential and 3 for commercial. The ratings are measured from 10 being the lowest to 1 being exemplary. Our rating is equal to or higher than our neighboring cities and equal to or higher than any other city our size in the state. Building Inspection and Code Enforcement 1. Adoption of new codes and amendments 2. Update departments section of the Town's web page 3. Update forms, informational bulletins, and applications 4. Scan archived blueprints for records management Planning and zoning 1. Revise gas and oil well drilling ordinance 2. Update Master plans 3. Establish policy and procedure guide for processing plats, SUP's and zoning cases ...................................................................................... TOWN SECRETARY - Responsibilities of the Department primarily revolve around Texas Municipal Law for General Law Type A Cities. The Town Secretary serves as an officer of the Town. STRATEGIC SERVICES • Serve as the Recording Secretary for the Board of Aldermen, Board of Trustees, Planning and Zoning Commission, Zoning Board of Adjustments, and the Texas Student Housing Authority (Authority, Denton Project, San Marcos Project) ® Attends and records all proceedings of the above-named bodies. • Receives and processes all public information requests ® Serves as Records Management Officer for the Town • Oversees codification of ordinances for both the Code of Ordinances and the Planned Development Supplement ® Electronically images all minutes • Posts all meeting agendas, updates website with agenda postings and approved minutes, e-mails meeting notifications to the residents • Monitors Boards, Commission, and Committee members and term limits, and administers oaths to all officers and appointed board members Flartinnc This office has conducted elections on the two uniform election dates in 2007, constituting a total of four elections: one (1) general, two (2) specials, and one (1) bond election. Texas Student Housing Authority In 1995, the Board of Aldermen established the Texas Student Housing Authority, whose mission is to provide university housing scholarships to graduates of Texas high schools and community colleges. Since its inception, TSHA has awarded over 1,200 scholarships to young Texas men and women at a value exceeding $3.5 million. The seven member Board of Directors is appointed by the Board of Aldermen, and support is provided by three paid staff members. TSHA, an instrumentality of the Town, receives approximately 850 scholarship applications a. year. The scholarship is open to all Texas high school seniors as well as current college students. TSHA offers off -campus housing in four (4) cities - Austin, College Station, Denton, and San Marcos. The Town Secretary's office provides high level administrative support and is involved in all aspects of the scholarship administration process with the exception of the finances. Under contract labor, TSHA employs a Finance Manager to oversee the finances. ® Continue to identify tools and process improvements to increase overall effectiveness of the Department o Initial areas for improvement include the agenda preparation process and the conversion of paper documents to electronic records to facilitate quick, easy distribution to internal and external customers Conduct a complete records inventory and establish Record Control Schedules so that records can be retained, stored and destroyed in accordance with the Texas State Library and Archives Commission retention schedules (as adopted by the Town). ..9009 ■ 0..0.08 .............. ■ . ■ ........................... ■ .......................... . DEPARTMENT OF PUBLIC SAFETY — The Department utilizes individuals who are cross trained as fire fighter/paramedics and, in certain instances, police certified employees to provide emergency response and safety to the Town's residents. ® Operate three (3) platoon system with certified firefighter/ paramedics • One (1) Lieutenant • Two (2) firefighter/ paramedics • One (1) part-time firefighter/ paramedic • Respond to customary Fire rescue and EMS type of incidences • Participates in the North East Fire Department Association (NEFDA) for specialized and hazardous response situations • Attend regional, state and federal training • Work with Keller Police Department on training activities for Westlake police certified employees • Transports patients to needed care facilities • DPS Director performs fire related review of code requirements and developmental issues; also serves on Development Review Committee (DRC) ® Works closely with the Academy on health and security issues • Implementation of full DPS division: police, fire and EMS • Increased number of service calls • Implement grants received for the brush truck skid unit ® Continued work with developers on inspection and fire marshal duties • Capital replacement program for equipment • Obtaining permanent facilities for department ..... 0 .. 0 .......... 0. 0 8. 0 8 .. 8•. 0 8 8 ... 0 0 ... 8. 0 .... 0 00.00 0 .. 8 .. 8 .... 8 .... 0 .. 0 ... 0 ..... .. MUNICIPAL COURT - The Municipal Court represents the judicial branch of the Town of Westlake and is responsible for providing fair and impartial trials as well as a range of customer service duties to defendants who are charged with a Class C misdemeanor or town ordinance violations. The Court was established as a court of record in 2001 and has original jurisdiction over many of the offenses which occur within the Town limits. STRATEGIC SERVICES 0 Handles customer service for defendants and other court patrons ® Conducts various court docket settings: bench, jury trials, plea dockets, attorney dockets • Processes payments for citations, reconciles daily cash and transmits to Finance • Issues and serves outstanding arrest warrants for delinquent violators • Enter new citations, monitor case flow of pending offenses, process payment plans, etc. ® Maintain case processing level with minimal or no backlog in cases ® Increase clearance rate of delinquent citations • Case archival duties - implement scanning system to readily retrieve closed files ® Dealing with conflicts ® Insurance verification - calling to verify coverage for defendants who have a'no insurance' citation • Enforcement of judicial orders on outstanding warrants a IN a a s• is a a In s a a a 10 11 IN a a a a a a a a a a s a Is a a a a a Is s a a a In a IN Is it a a a a a a s s a■■ a a a a a a a a a a a a a a a a a a a s a a a s a a a s PUBLIC WORKS - The Public Works Department oversees several functions: water/ wastewater and telecommunication duct bank operations and maintenance, meter reading/ utility billing, streets, drainage, solid waste, and engineering. STRATEGIC SERVICES WATER - Westlake has approximately 59,000 LF of water lines and purchases treated water from the City of Fort Worth as a wholesale customer. Fort Worth charges are based on volume and demand. We have one (1) - 1MG elevated storage, one (1) -.685 MG ground storage tank, and one (1) - pump station. The water tower (elevated storage) is a joint use tower that is co -owned between Westlake and Keller. SEWER AND S®LID WASTE - The Town has approximately 15,000 LF of sanitary sewer lines and contracts with Trinity River Authority (TRA) to treat wastewater. The billing is based on the projected annual flow, which is determined by each member city with a midyear adjustment. The trash and recycling services in Westlake are handled by Allied Waste, formerly Trinity Waste. TELECOMMUNICATI®NS DUCTBANI< - Consists of a series of pipes used to convey telecommunication lines. The concept was intended to minimize the need for telecom providers to dig in Westlake. The opportunity to control right-of-way and manage it responsibly is imperative for the protection and safety of all citizens and utility providers. STREETS - Approximately 10.8 miles of public streets, of which 2.8 miles have been reconstructed within the last 4 years, exists within the Town limits. Vaquero, Glenwvck, Paigebrooke, and Terra Bella subdivisions all have private streets. ENGINEERING - The Town utilizes an outside firm, Graham Associates, to provide engineering services. INTER/INTRA AGENCY INTERACTION - Provides barricades and other traffic control devices during emergency situations also assist with road sanding and other traffic related re- routing due to snow or icy weather. ® Age and technology associated with the water meter reading procedures ® Implement "line of sight" meter reading program • Work with incoming developers in reference to commercial development ® Explore the acquisition of an additional water storage source a a a a a a a a a a a a a a a s a m e® a® s® a®asaaaa a® a® s® s®®® a a a a a a a a a a s a a a a a a a a a a a a a a a a a a a a a a a a a a aaaa FACILITIES/GROUND MAINTENANCE AND PARKS AND RECREATION - The Department performs preventive maintenance on all campus buildings and landscaping to protect the Town's investment in our infrastructure and to avoid significant costs related to system failures due to a lack of maintenance. The Park and Recreation Department maintains open spaces and facilities for recreational use by our citizens and the general public. The Civic Campus and the park, located in the Glenwyck Farms subdivision, comprise the facilities and park space that is available for use by residents and the public. The park at Glenwyck Farms and the Academy campus host the Arbor Day celebration, Bandana Bonanza, the Christmas Tree Lighting ceremony and Decoration Day. PARKS - Glenwyck Farms Park site - 13.5 acres of park open space. The park has walking trails and has frequently been the site of the annual Arbor Day celebration. ® The Parchman house, located on JT Ottinger Road- six acres of open space, a 2,000 square foot home and a small barn. We are currently using the property for miscellaneous storage and parking events at the cemetery. • Fire Station - non -permanent facility -14 x 60 modular building ® Civic Campus - 23.5 acres - home of Westlake Academy - 53,000 square feet of building space ® Leased office space - Solana Office Complex - 9,400 square feet of office and Court space OPEN SPACE - Parchman's six acres, the 13.5 acres within the Glenwyck subdivision and the street medians within the Town. CEMETERY - Roanoke I.O.O.F Cemetery was transferred to the Town in January of 2008. • Arts & Sciences Center ® Water well on the Civic Campus - will provide water support to landscaping, new athletic field and west parking lot - anticipated completion time is October of 2008. ® Master Trail Plan Review ® Increase funding for HVAC to replace aging units • Plans for maintenance facility and land for new Fire State and/or Town Hall complex ■ ■ ® ® ® ® B B ■ ® ■ ® ® 0 ® ® ® ■ ® 0 ® B ® ® ® ® ® ® ■ 0 ® ® IN ® ® ® O in ® is ® ® In ® in in ® m ® O ® ® ■ ® 0 ® ® 0 ® E 2 0 0 ® ® ■ ® ® ® ® ® ® ■ ® ■ ® ® ® 0 ® ® ® ® a FINANCE - The Finance department is responsible for collecting, recording, summarizing, and reporting the results of all financial transaction of the Town, Academy and Foundation in a timely manner. The department staff also handles non-financial related front office duties, which include receptionist responsibilities and permit and registration THE ACADEMY - The Academy's general ledger, payroll, and accounts payable and receivable are maintained by the Region XI Education Service Center. The Finance Director handles final review and verification of proper documentation and coding and then submits invoices and check requests to the Service Center for issuance. WESTLAKE ACADEMY FOUNDATION - A monthly report is prepared by the Finance Director and forwarded to the Foundation's treasurer for monthly presentation to the Board. Currently, we have one fundraising function annually to supplement the Academy. This is called the "Blacksmith Apprentice Program'. The funds received from the annual "Gallery Night" event are used to maintain and operate the Foundation. THE BUDGET - The budget document has been awarded our first "Distinguished Budget Presentation Award" from GFOA for the 2007-2008 fiscal year. We began implementing goals and objectives in the 2005-2006 budget and worked towards substantiating our activity and performance measures. General Fund budget has hovered around $3.5 million to $4.1 million from FY 03/04 to present. This is, of course, without implement a property tax. Our beginning FY 07-08 fund balance of $3,096,299 looks deceivingly large due to the dissolution of 4A Economic Development Fund during FY 2005-2006 and a transfer of $2,194,313 being made to General Fund's fund balance. THE AUDIT - The Academy is included in the audit as a blended component unit of the Town and Texas Student Housing projects are included as discretely presented component units for the auditing process. Bond Sales - Construction of Westlake Academy a. Certificates of Obligation- Series 2002 - $12,265,000 - Current balance $5,630,000. The town saved approximately $30K annually by refunding a portion of the 2002 Certificates of Obligation. b. Certificates of Obligation - Series 2003 - $6,410,000 - Current balance $6,125,000 c. General Obligation Refunding Bonds - Series 2007 - $7,465,000 - Current balance- $7,365,000 Proposed General Obligation Bonds -Series 2008 - $2,500,000 - Phase I construction of Arts and Sciences Center - construction to begin in July, 2008 and completed by August, 2009. We have currently spent approximately $200K on preliminary activities out of the Visitor's Association Fund which will be reimbursed upon the sale of these bonds. All debt for the Academy buildings is being paid by the Town as follows: 4B Economic Development Fund - these amounts have been committed to the repayment of the debt incurred for the Town's Civic Campus project. Property Tax Reduction Sales Tax Fund - Any excess debt payments remaining will be paid from this fund. Visitors Association Fund - Payment for the Series 2008 - $2,500,000 bonds is expected to be made from this fund. m®®®®e®®®®®®®®®®®®s®®®®®®®®®®®®®s®®®®®®®®®®®®®®®®®®®e®®®®®®maMMMa0®®®aaNaMaas®®®®®m HUMAN RESOURCES AND ADMINISTRATIVE SERVICES DEPARTMENT - The Department is involved in nearly all areas of the Town's operations. Service levels provided to the Town's internal and external customers typically correspond with organizational growth. • Processes/ reviews payroll for all Town and Academy employees ® Remits payroll taxes, child support payments, supplemental deductions ® Files all monthly, quarterly, and annual payroll related reports • Processes all enrollments, changes, payroll deductions for all benefit plans ® Administers Section 125 Plan internally • Conducts advertising, interviewing, testing, background checks, as required ® Performs new employee orientation/ completion of all required paperwork ® Files insurance claims, updates information as needed • Provides primary general IT & desktop support to Town employees, procures equipment ® Updates and maintains the Town's website in conjunction with Brett Barron of Kaleidoscope Information Services. ® Assists with general creation/ revision of the budget, forecasts employee costs • Prepares charts, graphs, financial forecasts, budget narratives, and PowerPoint presentations upon request • Initiates all ACH and wire transactions for the Town and Academy ® Performs comprehensive annual salary surveys for the Town and Academy ® Obtains bids annually on all insurance programs & benefits ® Performs all general HR -related tasks ® Provides legal research and/or recommendations to the Town Manager and Town Attorney as needed ® Proposes policies and procedures for TM & Board Approval. • Procure an HR Software package to automate many tasks, which are now performed manually ® Obtain additional administrative support to be shared by several departments • Analyze HR processes at the Town and Academy for potential improvement, and align them more closely where possible • Implement a step -pay system and align employee compensation to be more competitive with other cities • Outsource the administration of the Section 125 plan