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E. Performance MeasuresBuilding Inspections BACKGROUND Phone: 952.227.1180 CITY OF MEMORANDUM CHA NSEN TO: Mayor and City Council 7700 Market Boulevard FROM: Greg Sticha, Finance Director PO Box 147 Phone: 952.227.1130 program was designed with the intent to have standard measures for performance Chanhassen, MN 55317 that residents, taxpayers and the legislature could review on an annual basis. Phone: 952.227.1140 ATTACHMENTS DATE: June 13, 2011 6kP Administration Phone: 952.227.1100 SUBJ: Performance Measures Created by the Council on Local Results Fax: 952.227.1110 Fax: 952.227.1110 and Innovation Building Inspections BACKGROUND Phone: 952.227.1180 exemption for 2012, the city council would be required to pass a resolution by Fax: 952.227.1190 In 2010, the legislature created the Council on Local Results and Innovation. Fax: 952.227.1404 This board was given the assignment of setting standard performance measures Engineering Phone: 952.227.1160 for all local municipalities to report annually. Over the past year, this group has Fax: 952.227.1170 created a list of ten performance measures that are part of the program. The Phone: 952.227.1130 program was designed with the intent to have standard measures for performance Finance that residents, taxpayers and the legislature could review on an annual basis. Phone: 952.227.1140 ATTACHMENTS Fax: 952.227.1110 Participation in the program is voluntary. Those municipalities that choose to Park & Recreation participate are eligible for $0.14 per capita in local government aid, and also Phone: 952.227.1120 would be exempt from levy limits in 2012 and years thereafter for continued Fax: 952.227.1110 participation. Recreation Center In order to participate in the program and receive the local aid and levy limit 2310 Coulter Boulevard exemption for 2012, the city council would be required to pass a resolution by Phone: 952.227.1400 July 1, 2011 indicating their intention to participate in the program. Fax: 952.227.1404 Planning & Staff will be reviewing the pros and cons of participating in the program on Natural Resources Monday night in the work session. If the city council decides to participate, a Phone: 952.227.1130 resolution will be included on the June 27 agenda. Fax: 952.227.1110 ATTACHMENTS Public Works 7901 Park Place Phone: 952.227.13 1. Letter dated June 1, 2011 from the Council on Local Results and Innovation, Fax: 952.227.1310 and Required Performance Measures to Participate. Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us f\gregs \counci1\201 I \performance measures work session 6- 13.docx Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow STATE OF MINNESOTA OFFICE OF THE STATE AUDITOR REBECCA OTTO STATE AUDITOR June 1, 2011 SUITE 500 525 PARK STREET (651) 296- 2551(Voice) SAINT PAUL, MN 55103 -2139 (651) 296 -4755 (Fax) state.auditor@)state.mn.us (E -mail) 1- 800 - 627 -3529 (Relay Service) Dear City Clerk/Finance Officer /County Auditor: 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 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. They will be required to communicate the results of the measures to their residents the following calendar year. 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. 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. 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 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. 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. Beginning next year, the Office of the State Auditor will be using the State Auditor's Form Entry System (SAFES) for the local performance measurement and improvement program reporting. An Equal Opportunity Employer 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 they 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: 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 I to 10. Class I generally represents superior property fire protection and Class 10 indicates that the area's fire suppression program does not meet ISO's minimum criteria.) .1' 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)) 1W 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 11, 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) 6.91 LOCAL PERFORMANCE MEASUREMENT AND REPORTING. Subdivision 1.Reports of local performance measures. (a) A county or city that elects to participate in the standard measures program must report its results to its citizens annually through publication, direct mailing, posting on the jurisdiction's Web site, or through a public hearing at which the budget and levy will be discussed and public input allowed. (b) Each year, jurisdictions participating in the local performance measurement and improvement program must file a report with the state auditor by July 1, in a form prescribed by the auditor. All reports must include a declaration that the jurisdiction has complied with, or will have complied with by the end of the year, the requirement in paragraph (a). For jurisdictions participating in the standard measures program, the report shall consist of the jurisdiction's results for the standard set of performance measures under section 6.90_ subdivision 2 , paragraph (a). In 2012, jurisdictions participating in the comprehensive performance measurement program must submit a resolution approved by its local governing body indicating that it either has implemented or is in the process of implementing a local performance measurement system that meets the minimum standards specified by the council under section 6.90, subdivision 2 , paragraph (b). In 2013 and thereafter, jurisdictions participating in the comprehensive performance measurement program must submit a statement approved by its local governing body affirming that it has implemented a local performance measurement system that meets the minimum standards specified by the council under section 6.90. subdivision 2 , paragraph (b). Subd. 2.Benefits of participation. (a) A county or city that elects to participate in the standard measures program for 2011 is: (1) eligible for per capita reimbursement of $0.14 per capita, but not to exceed $25,000 for any government entity; and (2) exempt from levy limits under sections 275.70 to 275.74 for taxes payable in 2012, if levy limits are in effect. (b) Any county or city that elects to participate in the standard measures program for 2012 is eligible for per capita reimbursement of $0.14 per capita, but not to exceed $25,000 for any government entity. Any jurisdiction participating in the comprehensive performance measurement program is exempt from levy limits under sections 275.70 to 275.74 for taxes payable in 2013 if levy limits are in effect. (c) Any county or city that elects to participate in the standard measures program for 2013 or any year thereafter is eligible for per capita reimbursement of $0.14 per capita, but not to exceed $25,000 for any government entity. Any jurisdiction participating in the comprehensive performance measurement program for 2013 or any year thereafter is exempt from levy limits under sections 275.70 to 275.74 for taxes payable in the following year, if levy limits are in effect. Subd. 3.Certification of participation. (a) The state auditor shall certify to the commissioner of revenue by August 1 of each year the counties and cities that are participating in the standard measures program and the comprehensive performance measurement program. (b) The commissioner of revenue shall make per capita aid payments under this section on the second payment date specified in section 477A.015, in the same year that the measurements were reported. (c) The commissioner of revenue shall notify each county and city that is entitled to exemption from levy limits by August 10 of each levy year. An Equal Opportunity Employer