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” 26 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 27 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!