PMA: Municipal Role in
Economic Development
April, 2012
Overview
1. The Municipal Role in Economic
Development
2. The Need for Collaboration
3. Municipal Economic Development
Approaches
4. Opportunity Management
The Municipal Role in
Economic Development
Context
• In 1995 the Community Taskforce on CED
(which included MNL) released the
Community Matters Report
• The report recommended legislative changes
to give municipalities an explicit mandate in
CED consistent with the role of REDBs
• In 1999, municipalities were given that role
via legislation.
Context
• In 2005 the Ministerial Committee on the
Process to Renew Regional Economic
Development released its final report
• It recommended municipalities be engaged in
the REDB planning process to ensure
municipal priorities were addressed, REDBs
include municipal seats, & government
explore mechanisms for municipalities to
contribute financially to the REDB process.
Context
• Municipalities need to play a central role in
Community Economic Development (CED) if
they are to flourish
• CED is a core service that must be provided
or many communities will suffer or die
• Many municipalities don’t recognize they
have a role in CED
• Municipalities lack capacity (tax base, staff
levels, skills currently required, engaged
councils, partnerships, etc.)
Context
• Municipalities are busy with the provision of
basic services (garbage collection, water &
sewer, animal control, etc.)
• Many lack the willingness to act (difficult,
competing priorities, “government should do
something”)
• Many do not know where to start with
economic development
Need for Collaboration
74% of municipalities have one
full-time staff-person or less
than full-time
2011 MNL Census of Municipalities
• 11.7% of small municipalities (fewer than 1000
residents) have economic development
committees
• 27.9% of medium municipalities (between
1000 and 4000 residents) have economic
development committees
• 88.2% of urban municipalities (more than 4000
residents) have economic development
committees
Assessment Officer I AE&S (Student aid)
• Salary $43,625.40 - $48,448.40 (GS-30)
Client Services Off. AE&S (Client Services)
• Salary $49,849.80 - $55,546.40 (GS-34)
Manager of Compensation & Benefits (CNA)
• Salary: (HL 22) $65,967.00 - $85,757.00
(Under Review)
Remuneration of Municipal Councils
• 74% of responding municipalities pay their
mayor between zero and $2000 per year
• 77% of responding municipalities pay their
deputy mayor between zero and $2000 per
year
• 81% of responding municipalities pay their
councilors between zero and $2000 per year.
Summary
• Most municipalities don’t have the bodies,
cash or skill sets required to engage in CED
unless they work with others
Some Municipal / REDB Collaboration
• Regional Marketing Initiatives
• Facilitation of Regional ICSPs
• Formation / Support for Joint Councils
• Sector Development Initiatives
• Project Specific Support
• Proposal Writing
• Dedicated Development Resources
• Training / Capacity Building
Municipal Economic
Development Approaches
Economic Development:
• A community informed, place-based,
strategic approach to 1) developing new
enterprises, 2) stabilizing existing enterprises
3) growing existing enterprises, 4) attracting
new enterprises, or 5) creating the conditions
for these activities to take place.
Why do we care?
•
•
•
•
•
Business Taxes
Employment
Population Growth
Community Confidence and Pride
Benefits (Direct, Indirect and Induced)
– Bigger homes
– Better collection rates
Developing New Enterprises
•
•
•
•
•
•
Social Enterprise Development
Cooperative Development
Incubation
Responsiveness (permits, information)
Promoting Entrepreneurship
Sector Development Initiatives (e.g.
Cranberries)
Stabilizing Existing Enterprises
•
•
•
•
•
•
•
•
Land-use Planning
Succession Planning
“Emergency Crisis Response”
Business Retention and Expansion
Red-tape Reduction
Industrial Related Benefits
Competitive Tax Structures / Fees
Access to Information and Programs
Growing Existing Businesses
• “Big Industry – Small Towns”
• Zoning
• Business Retention and Expansion
• Buy Local / Local Procurement Programs
• Regional Marketing
• Supporting Development Organizations
• Supporting Business Networks
• Industrial Water Supplies / Strategic
Infrastructure
Attracting New Enterprises
• Strategic Infrastructure
• Community Profiles
• Investment Attraction Desks
• Tax Incentives (Edge)
• Websites
• Welcoming Communities
• Community Readiness
• Regional Marketing
• Land-use Planning
Opportunity Management
There is a difference between
being busy and being
productive!
Final
Outcomes
The Logic Model
Intermediate
Outcomes
Immediate
Outcomes
Outputs
Activities
Inputs
Inputs vs. Activities
Inputs
“how we do it”
Activities
“what we do”
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Resources (budget, staff & volunteers,
information, offices, equipment, structure,
etc.) used to carryout activities. Inputs can
be outputs from another activity
Collections of jobs/tasks that consume
various inputs and whose outputs
contribute towards one or more outcomes
In summary, every REDB and every Municipality undertakes Activities
that consume Inputs
Outputs vs. Outcomes
Outputs
“what we
produce”
Outcomes
“why we do it”
The direct products and/or services (usually
“tangible and concrete”) generated through
activities (e.g. reports, symposiums, training
session, terms of reference)
Benefits or desired states (“not fully under
our influence’) to which the outputs of
activities contribute
In summary, every REDB and every Municipality undertakes Activities
that consume Inputs to produce Outputs that contribute to one or
more Outcomes
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Logic Model: Investment
Attraction
Direct employment,
diversified
economy,
prosperous region
Foreign
businesses
locate locally
Foreign
businesses
aware of regional
opportunities
Investment
attraction
website
Contracting
website
developers, data
collection
Staff, volunteer
Committee,
Budget,
offices
Key Elements of OM
1. Identifying Economic Dev. Opportunities
2. Evaluating & Prioritizing Opportunities
– Developing criteria, deliberating & ranking
3. Driving Opportunities
– Assigning leads, project management,
accountability & action plans
4. Constant Monitoring
– Advance: Commit resources to progress idea
– Rework: More investigation / rethinking
– Kill: Stop working on idea & move on
Gate 1: Core Functions
Gate 2: Assessment Criteria
Regional
Infrastructure
/ Marketing
Initiatives
Proposal
Writing
Gate 3: Technical Feasibility
Gate 4: Champion
Gate 5: Business Case
Gate 6: Funding
ICSP
Support
Completed Municipal Initiatives
Buying a
vehicle!
SUVs
Motorcycles
Gate 1: Do I like the
way it looks?
Gate 2: Is it the right size?
Gate 3: Can I afford it?
Cars
Gate 4: Does it have good fuel mileage?
Gate 5: Is it available locally?
Gate 6: Do they take trade-ins /
Can I get Financing?
You Buy a Car
Why do we use Opportunity Management?
•
•
•
•
Limited time, energy, funding, skill sets, etc.
Transparent process
Focus on things that make a difference
Focus on things we can successfully
complete
NOTE
Many municipalities and community groups are
now using OM to prioritize initiatives:
• House of Diamonds Art
Corporation
• Town of New Wes
Valley
• Town of Fogo Island
• Town of Glovertown
• Town of CentrevilleWareham-Trinity
• Cape Freels Heritage
Trust
• Town of Port aux
Basques
• EDANL
• Town of Port Hope
Simpson
• Town of Mary’s
Harbour
• Town of St. Lewis ,
Charlottetown,
Cartwright…
We Need Municipalities to:
• Participate in REDB / regional OM
• Develop and use OM at the community level
• Partner with REDBs, private sector and other
municipalities to help advance initiatives
We Need Municipal Staff to:
• Try to learn more about CED
• Learn from each other
• To remind their Councils that CED is part of
their role
• To support their Councils in learning more
about CED
• Engage in CED processes (REDBs, MNL,
Memorial, Province)
• Let us know if there are supports that you
need to engage in CED
www.nlreda.ca
Questions?
Thank You!