Post on 31-Mar-2015
PMA: Municipal Role in
Economic DevelopmentApril, 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!
Inputs
Activities
Outputs
Immediate Outcomes
IntermediateOutcomes
To Accomplish
To Accomplish
To Accomplish
To Accomplish
Less control a
s you move up
Final OutcomesThe Logic Model
To Accomplish
Inputs vs. Activities
Inputs
“how we do it”
Resources (budget, staff & volunteers, information, offices, equipment, structure, etc.) used to carryout activities. Inputs can be outputs from another activity
Activities
“what we do”
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
In summary, every REDB and every Municipality undertakes Activities that consume Inputs
26
Outputs vs. Outcomes
Outputs
“what we produce”
The direct products and/or services (usually “tangible and concrete”) generated through activities (e.g. reports, symposiums, training session, terms of reference)
Outcomes
“why we do it”
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
In summary, every REDB and every Municipality undertakes Activities that consume Inputs to produce Outputs that contribute to one or
more Outcomes27
Staff, volunteer Committee,
Budget,offices
Contracting website
developers, data collection
Investment attraction website
Foreign businesses
aware of regional opportunities
Foreign businesses
locate locally
To Accomplish
To Accomplish
To Accomplish
To Accomplish
Less control a
s you move up
Direct employment, diversified economy,
prosperous region
Logic Model: Investment Attraction To Accomplish
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
Completed Municipal Initiatives
ICSP Suppor
t
Regional Infrastructure /
Marketing
Initiatives
Proposal
Writing
ICSP Consultations
Joint Councils
Individual Municipalities
PMA
MNL
REDB Mun
icipa
l Rep
s
Gate 5: Business Case
Gate 2: Assessment Criteria
Gate 3: Technical Feasibility
Gate 4: Champion
Gate 1: Core Functions
Gate 6: Funding
You Buy a Car
Cars
SUVs
Motorcycles
Suggestions from Fam
ily
Advertising
Looking at cars on the
Road
Talk
to F
riend
sChe
ck C
onsu
mer
Rep
orts
Visi
t Car
Lot
s
Gate 5: Is it available locally?
Gate 2: Is it the right size?
Gate 3: Can I afford it?
Gate 1: Do I like the way it looks?
Gate 6: Do they take trade-ins / Can I get Financing?
Buying a vehicle!
Gate 4: Does it have good fuel mileage?
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
NOTEMany 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 Centreville-
Wareham-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
Questions?
Thank You!