Presentation to the Joint Municipal Shared Services Study - - PDF document

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Presentation to the Joint Municipal Shared Services Study - - PDF document

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Presentation to the Joint Municipal Shared Services Study Commission August 29, 2012 Joint Presentation by: John Simmons Executive Director, RIPEC Susanne Greschner Chief, Division of Municipal Finance, Dept. of Revenue 1

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Presentation to the Joint Municipal Shared Services Study Commission

August 29, 2012

Joint Presentation by:

John Simmons

Executive Director,

Susanne Greschner

Chief, Division of Municipal Finance, Dept. of Revenue RIPEC

State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Presentation Outline

 Overview of Responsibilities  Data Collection  Reports Published by Division  Challenges in Collecting Data  Act Providing for the Financial Stability of

Cities and Towns

 Local Pension Study Commission  Shared Services – Current Projects  Outlook

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State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Division of Municipal Finance – Overview of Responsibilities

To monitor the financial conditions of cities and towns

To work with cities and towns undergoing financial distress

To advise Governor on matters relating to municipal finances

To maintain information on local finances and property values

To provide assistance and encourage compliance with state laws and policies relating to municipalities

To compute property value information

To annually calculate state aid

To staff the Local Pension Study Commission

State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Division of Municipal Finance – Data Collection

Monitor and review municipal quarterly reports which certify the status of municipal budgets

Monitor and review adopted budget surveys

Monitor and review Five Year Forecasts

See handout for an example of each

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State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Monthly Reports (§ 45-12-22.2)

Monthly reports have to be submitted to the municipal CEO, each member of the town council, and school district committee, certifying the status of the municipal budget from all fund sources, including the school department budget from all fund sources, or regional school district budget from all fund sources.

State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Quarterly Reports (§ 45-12-22.2)

Quarterly reports must be submitted on or before the 25th day of the month succeeding the end of each fiscal quarter to the Division of Municipal Finance, the Auditor General, and the Commissioner of Education, certifying the status of the municipal budget, including the school budget that has been certified by the school department.

Each quarterly report submitted must be signed by the chief executive officer, chief financial officer as well as the superintendent

  • f the school district and chief financial officer for the school district.

The report has to be submitted to the city/town council president and the school committee chair. It is encouraged, but not required, to have the council president/school committee chair sign the report.

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State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Adopted Budget Survey (§ 44-35-10)

Surveys are to be sent to Division of Municipal Finance within 30 days of final action of the budget.

Each survey submitted must be signed by the chief executive officer as well as the chief financial

  • fficer.

State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Five Year Forecast (§ 44-35-10)

Forecast to be sent to Division of Municipal Finance within 30 days of final action of the budget

Forecast to be signed by municipal CEO and CFO, Superintendent and School Business Manager

Two scenarios:

–

Scenario 1: Reflecting baseline revenue and expenditure assumptions for current year (FY 2013) and forecasting for FY 2014 - FY 2017

–

Scenario 2: Reflecting fully funding pensions and Other Post Employment Benefits

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State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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School District Accounting Compliance (§16-2-9.4) – Article 12

The uniform system of accounting shall include a standardized budgeting process required to ensure districts can annually assess investment priorities and incorporate long-range planning.

Upon completion of the implementation of the UCOA, all school districts, regional school districts, state schools, and/or charter schools, shall implement a regents- approved budget model, and use best practices established by RIDE for long-range planning, budget development, and budget administration and reporting.

If a school district fails to install and maintain UCOA, including a chart of accounts and approved budget model, the Auditor General and the Commissioner shall make a report to the Superintendent, school committee chair, mayor/town manager, and the president of the council, to the board of trustees or directors, as applicable, specifying the nature and extent of the failure, refusal, neglect, hindrance, or prevention and the Commissioner is authorized to review the matter so reported. If the Commissioner finds that failure, refusal, neglect, hindrance or prevention exits he/she will direct the district, state or charter school in writing to comply. If no change has been made within ten (10) days of written notice, the Commissioner may withhold distribution of state aid to said school district, regional school district, state school or charter school.

State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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FY 2012 Property Tax Cap Report

Burrillville (1) 13.33% Foster 4.22% North Kingstown 2.79% Providence 5.68% Pawtucket 4.21% Exeter 2.76% Richmond 4.19% Scituate (3) 2.62% Woonsocket 4.16% Barrington 2.35% Newport 4.16% Smithfield 2.33% New Shoreham 4.06% North Smithfield 2.06% Central Falls 4.25% Bristol 4.01% Cumberland (4) 2.04% Coventry 3.86% East Greenwich 2.02% Warren 3.85% Jamestown 1.73% Warwick 3.81% Narragansett 1.71% Portsmouth 3.70% Little Compton 1.56% Cranston 3.26% Westerly 0.98% East Providence (2) 3.16% West Warwick 0.96% Johnston 3.14% South Kingstown 0.95% Middletown 3.12% West Greenwich 0.54% Tiverton 3.08% Hopkinton 0.46% North Providence 2.92% Glocester 0.05% Charlestown 2.83% Lincoln

  • 0.76%

(1) Burrillville was certified by the Division of Municipal Finance to exceed the cap by 12.17%. The town exceeded the cap by 13.33%. The additional tax levy increase is due to an expired payment in lieu of tax exempt property (PILOT) agreement. (2) East Providence fiscal year is Nov 1 to Oct 31. The City of East Providence levies its property tax in arrears; so the final tax rates will not be known until the spring of 2012. (3) Scituate fiscal year is Apr 1 to Mar 31. (4) Cumberland actual amount is an estimate reported by the town. Final levy will be set in May 2012. Source: Division of Municipal Finance based on Assessors Statement of Assessed Values and Tax Levy (12/31/2009 & 12/31/2010) and State Code Summary

At 4.25% Below 4.25% Above 4.25% Below 4.25%

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State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Division of Municipal Finance Other Published Reports

Annual Salary Survey

Organization and Staffing in Municipal Finance Offices (report from December 2009)

See handout for reports

State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Challenges in Collecting Data

No uniform reporting

Format of data

Timeliness of reports

Reduction in positions on municipal level

Interrelationship between city/town and schools

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State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Act Providing for the Financial Stability

  • f Cities and Towns

Legislation gives the State, acting primarily through the department of revenue, the power to exercise varying levels of support and control depending on circumstances

Creates three levels of State oversight and control

  • Level 1: Fiscal Overseer
  • Level 2: Budget Commission
  • Level 3: Receiver

State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Act Providing for the Financial Stability

  • f Cities and Towns

Links to the following information, including bankruptcy filings, meeting agendas and minutes, can be found

  • n the Division of Municipal Finance’s website listed

below.

Rhode Island General Law Chapter § 45-9

Central Falls Receivership

East Providence Budget Commission

Woonsocket Budget Commission

http://www.muni-info.ri.gov/finances/

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State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Local Pension Study Commission

Established by statute (RIGL 45-65-8)

Division staffing Commission

Commission charged with “making recommendations for the improved security and funding of locally administered plans and OPEB of cities and towns”

Statutory Requirements for local plans

April 1, 2012 - submit actuarial valuations and experience studies

May 11, 2012 – plans in critical status (<60% funded) sent critical status notices to plan beneficiaries and others

November 11, 2012 – Funding Improvement Plan to be submitted to Commission

Commission developed funding improvement guidelines to assist municipalities in developing Funding Improvement Plan

State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Division of Municipal Finance – Municipal Sessions

Recently, two municipal sessions have been offered

Jointly offered with the Rhode Island League of Cities and Towns

Topics ranged from new GASB standards on pensions, issues regarding locally-administered pension plans, and recently enacted legislation

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State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Shared Services – Current Projects

Income Tax Refund Offset Program

 State-local program  Administered by Division of Taxation

Governor’s Task Force on Shared Municipal Services

 Sanitation RFP  Exploring joint bidding for revaluations and statistical

updates

 Survey on shared municipal services

Joint Dispatch

State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Outlook

Explore electronic reporting between Division of Municipal Finance and municipalities

Work with the Governor’s Task Force on Shared Municipal Services

Work with this Commission to explore potential legislation going forward

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State of Rhode Island Division of Municipal Finance

www.muni-info.ri.gov

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Thank You!

RIPEC

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RIPEC

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What is RIPEC?

  • The Rhode Island Public Expenditure Council (RIPEC) is an

independent, nonprofit and nonpartisan public policy research and education organization

  • Founded in 1932
  • Primary purpose is to promote more efficient, economical

and responsible government

  • Website: ripec.org

RIPEC

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Governor’s Task Force on Shared Municipal Services

  • Executive Order 12-03: Governor’s Task Force on Shared

Municipal Services

– Signed June 28, 2012, at Pawtucket DPW Facility – Brought together Pawtucket, East Providence, and Central Falls

  • The Task Force Shall:

– Study possible shared services between the communities, beginning with Public Works – Make recommendations on DPW shared services to the cities – Pursue other shared services in the communities

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RIPEC

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Members

  • Chairperson John C. Simmons, RIPEC Executive Director
  • State Director of Revenue or designee

– Susanne Greschner, Director of Municipal Finance

  • Mayor Donald R. Grebien of Pawtucket
  • City Manager Peter Graczykowski of East Providence
  • Receiver John McJennett of Central Falls or designee

– Gayle Corrigan, Chief of Staff Central Falls RIPEC

Defining Shared Services

  • Shared services are any

joint venture between at least two entities to achieve common goals and provide

  • services. They can include

mergers, consolidations, joint contracting, service provision/purchase relationships, and other similar arrangements.

  • Matrix of sharing

– City/Town to city/town – City/Town to school district – School district to school district – City/Town & school district to city/town & school district – State to city/town

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RIPEC

Principles of Shared Services

  • Bring all stakeholders and interested parties to the table
  • Include leaders and decision makers who are committed to

the project

  • Create opportunities to eliminate duplication of services

and reduce costs

  • Focus on mutual shared interest
  • Set clear goals and revisit them every 2-5 years
  • The agreement should address: maintenance, operations,

liability, ownership, scheduling

  • Occur when there is a clear need for the joint service

partnership, and the political will and resources to accomplish the task

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RIPEC

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Early Work

Refuse & Recycling Curb-side Pickup

  • Pawtucket, East Providence & Central Falls crafted a joint

RFP for collections

  • The RFP asked for the costs for each community if they

bought individual service, and a cost for the communities if they collectively selected a vendor to provide services without borders

  • There were savings associated with the joint bid
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RIPEC

Early Work

Other Efforts

  • Shared Municipal Services Survey

– Sent to all municipalities and school districts – Goals:

  • Identify current shared services
  • Identify interested communities and districts
  • Sub-committee on Revaluation

– Exploring joint bidding for revaluation vendors – First meeting Thursday August 30

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RIPEC

Early Work

Other Efforts

  • Shared Purchasing Agent

– Pawtucket and East Providence currently discussing options

  • Shared Public Safety Dispatch

– Numerous communities discussing combining dispatch into one central facility – A recent consultant’s study identified a cost per community that was unacceptably high for most

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RIPEC

Other Issues to Consider

Pension Commission

  • Examining issues facing municipalities with locally

administered pension plans

  • Recommending solutions for plans in critical status
  • Reporting findings to the House and Senate

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RIPEC

Other Issues to Consider

Non-exhaustive List

  • Accounting/Payroll
  • Animal control
  • Building Maintenance
  • Building Inspections
  • Clerk Services
  • Economic Development
  • Energy
  • Facilities & Grounds
  • Financial Administration
  • Fleet Maintenance
  • Housing & Community Dev.
  • Human Resources
  • Information Technology
  • Library Services
  • Parks & Recreation
  • Permitting & Planning
  • Public Information
  • Public Safety
  • Records Management
  • Roads & Traffic
  • Sewer
  • Storm water compliance
  • Training
  • Water & Wastewater

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RIPEC

Moving Forward

  • RIPEC is committed to the issue of share services
  • RIPEC and the Governor’s Task Force on Shared

Municipal Services would like to work cooperatively with the Commission to foster greater shared services in RI

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