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3.8. SR 06-20-2011city of Elk -~-. River REQUEST FOR ACTION TO ITEM NUMBER Ma or and Ci Council 3.8. AGENDA SECTION MEETING DATE PREPARED BY Consent une 20, 2011 Tim Simon, Finance Director ITEM DESCRIPTION REVIEWED B)/ Consider Approval of Performance Measurement Program REVIEWED BY ACTION REQUESTED Approval of a resolution to adopt the performance measures and will report the results to the citizens. BACKGROUND/DISCUSSION In 2010, the Legislature created the Council on Local Results and Innovation. In February 2011, the Council released a standard set of ten performance measures for Counties and Cities that will aid residents, taxpayers, and state and local elected officials in deterrnixiing the efficacy of counties and cities in providing services, and measure residents' opinions of those services. By February of 2012, the Council must create comprehensive performance measurement systems for cities and counties to implement in 2012. Participation in the program is Volunta~rv,. Counties and cities that choose to participate in the standard measures program must officially adopt the corresponding 10 performance benchmarks developed by the Council, and implement them in 2011. We will be required to communicate the results of the measures to the residents the following calendar year. In discussions with Economic Development Director Annie Deckert, these questions can be incorporated into the community survey that was recently approved by the City Council. Other communities are using their website as a way to facilitate the survey. To participate, the City must approve a declaration stating that the City has adopted the corresponding 10 performance measurers developed by the Council by July 1, 2011. The Ten Performance Indicators are listed below: General 1) Citizen Survey Question -overall quality of services 2) Percent change in the taxable property market value 3) Citizen Survey Question -overall appearance Police Services 4) Citizen Survey Question- rating safety or Part I and II crime rates Fire Services 5) Citizen Survey Question -quality of services or ISO rating Streets 6) Citizen Survey Question -road condition or average street pavement condition rating 7) Citizen Survey Question -quality of snowplowing C:\Users\jmiller\AppData\Local\Microsoft\Windows\Temporary Internet Files\Low\Content.IES\68D8GBW0\performancemeasurersmemo[1].doc Water 8) Citizen Survey Question -quality and dependability Sewer 9) Citizen survey Question -quality and dependability Parks and Recreation 10) Citizen Survey Question -quality of recreational programs and facilities FINANCIAL IMPACT We will be eligible fox a reimbursement of $0.14 per capita in local government aid, not to exceed $25,000 and is also exempt fox levy limits fox taxes payable in 2012, if levy linvts are in effect. ATTACHMENTS ^ Performance Measurement Program ^ The Council on Local Results and Innovation 2011 Legislative report ^ Model Performance Measures for Cities ^ Resolution to adopt the performance measures and report the results to the citizens Action Motion by Second by Vote FOllow Up C:\Users\jmiller\AppData\Local\Miaosoft\Windows\Temporuy Internet Files\Low\Content.IES\68D8GBW0\performancemeasurersmemo[1].doc Performance Measurement Program Page 1 of 1 Performance Measurement Program The Program In 2010, the Legislature created the Council on Local Results and Innovation. In February 2011, the Council released a standard set of ten performance measures for counties and ten performance measures for cities that will aid residents, taxpayers, and state and local elected officials in determining the efficacy of counties and cities in providing services, and measure residents' opinions of those services. By February of 2012, the Council must create comprehensive performance measurement systems for cities and counties to implement in 2012. Cities and counties that choose to participate in the new standards measure program may be eligible for a reimbursement in LGA, and exemption from levy limits. Participation by Cities and Counties Participation in the standard measures program by a city or a county is voluntary. Counties and cities that choose to participate in the standard measures program must officially adopt the corresponding 10 performance benchmarks developed by the Council, and implement them in 2011. To view the 10 performance measures for voluntary adoption for both cities and counties, please click on the following link: http:l/www.auditor.state, mn. us/other/councils/LacalResultsandl nnavation/final_repart, pdf. Benefits A county or city that elects to participate in the standard measures program for 2011 is eligible for a reimbursement of $0.14 per capita in local government aid, not to exceed $25,000 and is also exempt from levy limits under sections 275.70 to 275.74 for taxes payable in 2012, if levy limits are in effect. Reporting Requirements for 2011 In order to receive the per capita reimbursement in 2011, and levy limit exemption for calendar year 2012, counties and cities must: File a report with the Office of the State Auditor by July 1, 2011. This report will consist of a declaration approved by the city council or county board stating that the city/county has adopted the corresponding 10 performance measures developed by the Council. To meet the reporting requirements for 2011, a copy of the declaration in a PDF format can be attached to an email and sent to: gid@osa.state.mn.us. Reporting and Requirements for 2012 and Beyond Annual reporting will be required by the cities and counties that participate in the program. By July 1, 2012, cities and counties will be required to report to the OSA that they have adopted and implemented both the performance benchmarks, and the performance measure system released by the Council in February of 2012. A declaration will be required that the city/county has reported or will report the results for calendar 2011 of the 10 adopted measures to its residents before the end of calendar year 2012. A county or city that elects to participate in the standard measures program for 2012 is eligible for a reimbursement of $0.14 per capita in local government aid, not to exceed $25,000 and is also exempt from levy limits under sections 275.70 to 275.74 for taxes payable in 2013, if levy limits are in effect. Further Questions If you have any questions regarding the program or the reporting requirements, please email Dave Kazeck at dove. kazeck@asa. state. m n. us. Privacy Policv ~ Accessibility Information ~ p2010 C?ffice of the Minnesota State Auditor http://www.auditor.state.mn.us/default.aspx?page=20110525.013 06/17/2011 The Council on Local Results and Innovation 2011 Legislative Report February 14, 2011 February 14, 2011 To the Property and Local Sales Tax Division of the House of Representatives, Taxes Committee and the Taxes Division on Property Taxes of the Senate Tax Committee, Per the requirements of 2010 Minnesota Laws Chapter 389, Article 2, Sections 1 and 2, the Council on Local Results and Innovation is submitting its recommended "... standard set of approximately ten performance measures for counties and ten performance measures for cities that will aid residents, taxpayers, and state and local elected officials in determining the efficacy of counties and cities in providing services, and measure residents' opinion of those services." The recommended model performance measures are attached. Local government and public feedback was solicited on the proposed benchmarks. The members of the Council include: • Patricia Coldwell, Association of Minnesota Counties • John Gunyou, City of Minnetonka • Mark Hintermeyer, City of Moorhead • Jay Kiedrowski, Humphrey School, University of Minnesota • Katie Nerem, Blue Earth County • Rebecca Otto, Minnesota State Auditor • Jay Stroebel, City of Minneapolis • Matt Stemwedel, City of Woodbury • Wendy Underwood, City of St. Paul • Tim Walsh, Scott County • Ben Woessner, City of Pelican Rapids The Council received no funding to conduct their work. Meeting minutes were taken by volunteers, and the Office of the State Auditor posted all meeting materials and meeting dates on the Office of the State Auditor website. All meetings were open to the public. The Council sees value in having all counties and cities in Minnesota develop performance measures that then use to manage their jurisdictions and having results of those performance measures shared with citizens and property tax payers. Our recommended performance measures should be considered examples to assist counties and cities in developing their own performance measures. The Council was concerned about the misuse of these performance measures by the legislature or others in the appropriation of funds or for comparisons among counties and cities. The general performance measures recommended are simply inadequate for those purposes. The Council on Local Results and Innovation is proceeding to meet the additional requirements of the statute, which is to "develop recommended minimum standards for comprehensive performance measurement systems by February 15, 2012." We interpret "performance measurement system" to mean more broadly a performance management system that uses performance measures to manage counties and cities. Representatives of the Council would welcome the opportunity to discuss the Council's work, our recommended model performance measures, and our concerns about the use of these measures. Sincerely, Jay Kiedrowski, Chair Minnesota Council on Local Results and Innovation Cc: House Speaker, House Minority Leader, Senate Majority Leader, and Senate Minority Leader Attached: Model Performance Measures for Counties, Model Performance Measures for Cities Model Performance Measures for Cities The following are the recommended model measures of performance outcomes for cities, with alternatives provided in some cases. Key output measures are also suggested for consideration by local city officials. General• 1. Rating of the overall quality of services provided by your city (Citizen Survey: excellent, good, fair, poor) 2. Percent change in the taxable property market value 3. Citizens' rating of the overall appearance of the city (Citizen Survey: excellent, good, fair, poor) Police Services: 4. Part I and II crime rates (Submit data as reported by the Minnesota Bureau of Criminal Apprehension. Part I crimes include murder, rape, aggravated assault, burglary, larceny, motor vehicle theft, and arson. Part II crimes include other assaults, forgery/counterfeiting, embezzlement, stolen property, vandalism, weapons, prostitution, other sex offenses, narcotics, gambling, family/children crime, D. U.I., liquor laws, disorderly conduct, and other offenses.) OR Citizens' rating of safety in their community (Citizen Survey.• very safe, somewhat safe, neither safe nor unsafe, somewhat unsafe, very unsafe) Output Measure: Police response time (Time it takes on top priority calls from dispatch to the first officer on scene.) Fire Services• 5. Insurance industry rating of fire services (The Insurance Service Office (ISO) issues ratings to Fire Departments throughout the country for the effectiveness of their fire protection services and equipment to protect their community. The ISO rating is a numerical grading system and is one of the primary elements used by the insurance industry to develop premium rates for residential and commercial businesses. ISO analyzes data using a Fire Suppression Rating Schedule (FSRS) and then assigns a Public Protection Classification from 1 to 10. Class 1 generally represents superior property fire protection and Class 10 indicates that the area's fire suppression program does not meet ISO's minimum criteria.) OR Citizens' rating of the quality of fire protection services (Citizen Survey.• excellent, good, fair, poor) Output Measure: Fire response time (Time it takes from dispatch to apparatus on scene for calls that are dispatched as a possible fire). Emergency Medical Services (EMS) response time (if applicable) (Time it takes from dispatch to arrival of EMS) Streets• 6. Average city street pavement condition rating (Provide average rating and the rating system program/type. Example: 70 rating on the Pavement Condition Index (PCI)) OR Citizens' rating of the road condition in their city (Citizen Survey.• good condition, mostly good condition, many bad spots) 7. Citizens' rating the quality of snowplowing on city streets (Citizen Survey.' excellent, good, fair, poor) Water 8. Citizens' rating of the dependability and quality of city water supply (centrally- provided system) (Citizen Survey: excellent, good, fair, poor) Output Measure: Operating cost per 1,000,000 gallons of water pumped/produced (centrally-provided system) (Actual operating expense for water utility / (total gallons pumped/1, 000, 000)) Sanitary Sewer• 9. Citizens' rating of the dependability and quality of city sanitary sewer service (centrally provided system) (Citizen Survey: excellent, good, fair, poor) Output Measure: Number of sewer blockages on city system per 100 connections (centrally provided system) (Number of sewer blockages on city system reported by sewer utility / (population/100)) Parks and Recreation: 10. Citizens' rating of the quality of city recreational programs and facilities (parks, trails, park buildings) (Citizen Survey: excellent, good, fair, poor) RESOLUTION 11- A RESOLUTION OF THE CITY OF ELK RIVER A RESOLUTION ADOPTING THE PERFORMANCE MEASURES WHEREAS, the State Legislature in 2010 created the Council on Local Results and Innovation; and WHEREAS, the Council released a standard set of ten performance measures for counties and cities that will aid residents, taxpayers, and state and local elected officials in determining the efficacy of counties and cities in providing services and measure residents' opinions of those services; and WHEREAS, cities and counties that choose to participate in the new performance measurement program may be eligible for a reimbursement of $0.14 per capita in Local Government Aid and exemption from levy limits for taxes payable 2012. NOW, THEREFORE, BE IT RESOLVED that the Ciry Council of the Ciry of Elk River does hereby approve the following Performance Measures and will publish the results of the Performance Measures prior to December 31, 2012. General Police ^ Fire Streets Ten Performance Indicators Citizen survey -quality of services Percent change in the taxable market value Citizen Survey -overall appearance Citizen survey rating safety or Part I and II crime rates Citizen survey -quality of services or ISO rating ^ Citizen survey -quality of road conditions or average street pavement condition rating • Citizen survey -quality of snow plowing Water • Citizen survey -quality and dependability Sanitary Sewer ^ Citizen survey -quality and dependability Parks and Recreation ^ Citizen survey -quality of services Passed and adopted this 20`'' day of June 2011. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk N:\PubGc Bodies\Ciry Council\Resolutions\Performance Measures.docx