Chronicle of Ideas

New Blog

2007-05-20T23:02:00.000-06:00

My office spring cleaning is beginning by changing my blog. I've had this blog for a 7 or 8 months and I'm tired of the title and the format...so I'm turning over a new leaf and turning to word press. The name of the new blog is The City Cafe. What does that mean? I'm not really sure...but it allowed me to incorporate a photo I really like into the header. So The City Cafe will remain a blog that discusses all things related to cities, with a focus to local government fiscal policy. I look forward to your comments.

Tis' The Season--Budget Season

2007-05-14T18:31:00.000-06:00

For local governments May is budget season. A number of cities are presenting their budgets for the 2007-08 fiscal year (Mayor Billings' presents Provo's budget on a bus tour of the city). I'm sure you'll see a lot more news stories about city budgets as they are debated and finalized.

Today on KCPW's Midday Metro show Bill Anderson (South Salt Lake City Councilmember), Gary Hill (Park City budget officer), and myself discussed the state of local government finance with KCPW host Bryann Schott. If you are interested in the 20 minute podcast check here: KCPW discussion May 14th 2007.

So city council meetings aren't so bad, after all

2007-05-13T22:47:00.000-06:00

Excellent column in the The Spectrum this weekend written by Steve Kiggins, Cedar City Bureau Chief. I keep telling people that local government finance really is an interesting issue that people should pay more attention to...sounds like Steve agrees. One quote from his column, "In the past 21 months, I've learned more about the world around me than I did in all my years as a sports reporter. That's because I've covered city council meetings, interviewed state, county and city leaders, studied subjects such as health care, taxes and education, opened my eyes to the issues and challenges around me....If you don't pay attention to city government, I urge you to start."

You can read the full column here.

On another note...how about those Jazz? Western Conference Finals here we come (am I jumping the gun?).

Housing Development

2007-04-24T09:44:00.000-06:00

The housing market continues to capture a number of headlines. Especially with reports today of the sharpest decline in home sales in 18 years (here). Overall the housing market in Utah still appears strong, but when the market continues to fall in Vegas and Phoenix it makes you wonder what is in store for the Salt Lake metro area in the next year or two.

I also found these two recent articles regarding housing development interesting.

Cluster Analysis

2007-04-19T14:51:00.000-06:00

I've been working on an interesting project the past few weeks, clustering of Utah's cities and towns. Often our analysis here at ULCT requires grouping or clustering of cities. But usually this grouping is dictated solely by population size or regional location--very surface and misleading variables. In an attempt to find a more accurate grouping, ULCT has attempted clustered cities together based on demographic, financial, and economic characteristics. The variables used to group cities are:

2005 population
Percent population change 2000-2005
Household median income (2000 Census data)
2003 Primary residential land value (& per capita)
2003 Commercial and industrial land value (& per capita)
2003 Property tax revenue (& per capita)
2003 Sales tax revenue (& per capita)

Our results led to 11 clusters of cities, with Salt Lake City as the one outlier. The eleven types of clusters are: major cities, commercial centers, high growth communities, residential transitioning, high income residential, urban edge, resort communities, natural resource/mining based, old established, traditional agricultural, and small towns.

If you are interested in where your city grouped or would like to see the analysis write-up please review the report: 2007 ULCT Cluster Analysis I'm interested in hearing your feedback on this project. I think we will find it a great tool enabling better policy analysis. Please contact me with any questions.

Tax Burden -- How much goes to your city?

2007-04-18T10:50:00.000-06:00

Taxes become a common discussion during the middle of April...but how many of us really know our complete annual tax bill (federal, state, and local)? The Utah Taxpayers each year provides an analysis of a typical Utah family each year--this year the average Utah family of five spends $15,877 in taxes or 25% of their income.

However, of this $15,877 in taxes how much goes to your city or town? Based on this analysis a family of five spend around $700 dollars a year (combined sales, property, and franchise) in municipal taxes.

A median Utah household spends 1.2% of their income in municipal taxes
Less than 5% of a Utahns entire tax burden is dedicated to municipal government.

$700 dollars a year for all the municipal services I use (sidewalks, city parks, water, garbage collection, sewer, city library, roads, etc)...sounds like a bargain to me. And I'm a libertarian who hates taxes as much as anyone.

By the way, the Utah Taxpayers have scheduled their 29th Annual Conference for May 4th. You can check out the packed agenda here.

Huckabee in St. George

2007-04-14T22:09:00.000-06:00

Overall I would say the mid-year conference this past Thursday and Friday was a great success. One highlight from the conference was Thursday speaker, presidential candidate Mike Huckabee. Huckabee was great, personally engaging and a captivating speaker. His comments focused on the need for citizens to solve the US health crisis by becoming active. Huckabee emphasized that success needs to be a long-term cultural shift that leads to more individual physical activity. I thought it was interesting that he mentioned four examples of cultural changes that have improved our overall quality of life: wearing of seat belts, reduced littering, reduced smoking, and a crackdown on drunk driving (think about the acceptance of things activities 30 years ago compared to today...huge changes). These are all evidence that the same cultural change can occur to enhance our level of physical activity.
Spectrum article on Huckabee
Spectrum video
Deseret News article

St. George Fastest Growing Metro Area

2007-04-08T21:46:00.000-06:00

Many of you maybe saw the news last week from the U.S. Census Bureau announcing St. George City as the fastest growing metro area in the nation. St. George area great by 39.8% between 2000 and 2006, this rate is almost 9% higher than the second metro area (Greeley Colorado at 31%). St. George is not the only Utah metro area to make this list...Provo-Orem metro area grew by 26% since 2000, ranking them 6th nationally. You can read and watch the KSL news story here or read the Census Bureau press release here.

On another note I'm looking forward to spending this coming week in the fastest growing metro area in nation for our 2007 Midyear Conference.

March HOA Forum Reviewed

2007-04-06T12:47:00.000-06:00

Around thirty staff members from a number of cities attended our recent March homeowner associations forum at South Jordan City. Here are a couple of questions discussed at the forum:

Why is communication between the city and HOA important? There are a couple of reasons. First, improved communication can improve emergency response at a time of crisis. Some larger HOAs may have a emergency response plan that can be coordinated with the city.
What is the best way to improve communication with HOAs in your city? This is a difficult task, especially since part of the challenge is just identifying the individual HOAs that exist. South Jordan City literally has gone door to door to identify HOAs and COAs. In addition, now they ask HOAs to record contact information with the city.
What can cities do to help prevent HOA failure? Unfortunately there really isn’t a lot cities can do. However, one key maybe is to closely review the proposed financial plan of a new HOA. Often HOA failure is due to inadequate reserve funds for emergency situations, the city can help review and approve this plan prior to development.
What does HOA failure mean? Really there are two kinds of failure. One kind is complete failure that results in absolving the HOA entirely, this failure is very rare. The other kind of failure relates to a specific private service (private road in the HOA , sewer or water, etc) this is more common. Often the frequency of service failure is directly related to the fiscal strength of the HOA.

Thanks to John Janson(West Valley City) and Chip Dawson (South Jordan City) for participating in the panel discussion and offering their experience/insight.

Check here is you are interested in my presentation. March HOA Forum

Growth of Homeowner Associations

2007-03-27T14:45:00.000-06:00

Question: How many Americans live in homeowner associations or condominium associations?
A. 2.1 million
B. 9.6 million
C. 29.6 million
D. 57 million

The correct answer is 57 million Americans (1 in 5 Americans) live in HOAs or COAs. If you answered 2.1 million you were correct in 1970. Since then the growth has exploded.

What is causing the HOA growth? What are the implications of HOAs for local government? There are a number of other related policy questions...who will retain the responsibility for maintenance or upkeep? Is there a perception of double taxation to HOA residents?

If you are interested in this issue please attend the ULCT forum: Homeowner Associations: the Good, the Bad, and the Unknown
Date: Thursday, March 29th
Time: 2:30 to 4:00 pm
Place: South Jordan City Hall, Council Chamber -- 1600 W. Town Center Drive (10600 South)

Panelists: John Janson (West Valley City Community & Economic Development and President Utah APA Chapter), Chip Dawson (South Jordan City Neighborhood Services Coordinator), and Neil Abercrombie (ULCT policy analyst)

Email me if you have questions.

Spanning the State

2007-03-22T10:48:00.000-06:00

After spending much of the last two weeks out of the office, for work and pleasure, I've been trying to catch-up on all the local news I missed. I thought maybe I'd link to a couple of recent stories I've noticed across the state...

West Valley City welcomes back City Manager Wayne Pyle from deployment

Pleasant Grove City studies their exotic animal policy

As the Gibby and Mapleton World Turns

Park City Council weighs the options of open space versus affordable housing

Eagle Mountain and Saratoga Springs lobby for federal funds

And Frank Pignanelli agreeing with Ronald Reagan? Well maybe in theory...

National League of Cities Conference

2007-03-13T21:51:00.000-06:00

Myself, a few other ULCT staff members, and around 70 Utah local elected officials and staff are currently in Washington, DC for the Annual National League of Cities Congressional Conference. This morning four different US Senators shared their thoughts regarding the role of local government; Senators Norm Coleman (R-Minn), Hillary Clinton (D-N.Y.), Christopher Dodd (D-Conn), and Joe Biden (D-Del). To be honest this turned into a session of 'campaign speak', with a lot of flattery and little substance.

The more interesting NLC speaker was George Stephanopoulous, host of ABC Sunday morning news show This Week. George spoke for 50 minutes without even hardly taking a breath, mostly addressing the national political landscape related to the upcoming presidential race. One interesting scenario mentioned by George is possibly the emergence of third party candidate...he suggested that maybe New York City Mayor Michael Bloomberg might throw his hat in the ring as an independent candidate. Bloomberg, one of the wealthiest individuals in the world, has the advantage of financing his own campaign. And as Stephanopoulous suggested, if a crazy Ross Perot can get 19% of the vote in 1992 think what an articulate intelligent Michael Boomberg can do. Interesting possibility.

Mayor Michael Bloomberg for President? Stephanopoulos said he wouldn't be too surprised to see this occur.

Utah's Aging Population

2007-03-13T11:03:00.000-06:00

Robert Spendlove, Pam Perlich, and I discussed the social and political implications of Utah's aging population with Lara Jones yesterday on KCPW. The discussion lasted about 25 minutes, you can listen the broadcast HERE.

Walkable Communities

2007-03-04T22:13:00.000-07:00

A recent study by the University of Washington confirms what we all intuitively know...people living in walkable communities are more active. Dr. Eric Larson, executive director of Group Health's Center for Health Studies and a co-author of the study, said the research shows you "have a higher chance of walking for exercise - from 30 percent to 600 percent in some comparisons - when you live in a more walkable neighborhood." You can read the UW news article here.

We will be talking much more about this subject in a few weeks at our Midyear Conference in St. George (April 12-13th). We are especially looking forward to our Midyear feature speakers, former Arkansas Governor Mike Huckabee and also Mark Fenton, host of PBS series America's Walking. Contact Brian Hall in our office or visit our website for more information regarding the conference.

Should Cities Print Their Own Currency?

2007-02-28T23:05:00.000-07:00

Here's one possible idea to try and stimulate the economy for locally owned stores...in Southern Berkshire Mass. they are starting to distribute a local currency called the Berkshare. For $90 you get 100 Berkshares, that can only be spent at locally owned stores. Read the full story here: New England Towns Prints Up Its Own Currency

Dow Takes a Huge Hit

2007-02-27T19:09:00.000-07:00

By now I'm sure you are all aware of the Dow dropping over 400 points today, the largest drop since September of 2001. But the question is what does this mean? Are we headed to a recession? Is the economy as strong as we think? Well the way I understand it there were three factors that really contributed to this huge loss:

Bomb going off near Vice-President Cheney in Afghanistan (psychological effect)
Econ number for durable goods released this week lower than expected, down over 7% (appliances, computers, and large goods like airplanes)
9% drop in the Shanghai Stock Exchange (huge drop...largest in a decade), some analysts are suggesting that maybe this drop is just equalizing the 130% growth the Shanghai market has experienced the past year...others suggesting it is a response to fears of the government is trying to slow down the economy.

Most seem unsure if this massive sell off will continue tomorrow or not (I watched Cramer describe this as a great buy opportunity). I'm not sure if this indicates a looming recession, but two points are interesting here: 1)This shows how closely we are now tied to the Chinese market (at least an appearance of what it might mean for the global economy), and 2)It is ironic this occurs a day after Alan Greenspan talks about a possible recession by the end of 2007. Click here to read this article.

How Much Do You Know About Government?

2007-02-25T19:24:00.001-07:00

We began the Legislative session showing this video at Local Officials' Day...so I thought maybe it is appropriate to the show the video again with the session ending this Wednesday. You can read the Deseret News article regarding this video here.

Whats the point? The point is we can all become more educated on civics and government. It is easy to be disengaged when we don't understand the process or the players...think about watching a sporting event without knowledge of any of the rules. We think local government can play a part in addressing this civics ignorance. Which is why we recently published a curriculum guide for 4th and 7th grade teachers. Read more about it here. Or if you are in South Jordan City you may want to consider South Jordan University.

City Fiscal Conditions 2007

2007-02-20T21:22:00.000-07:00

We know the State of Utah has a surplus of well over $1 billion, but what is the fiscal health of Utah's cities and towns? Each city and town is unique, which makes is difficult to assess budget health in the aggregate the way we evaluate state revenue and expenditures. In an attempt to better understand the fiscal state of municipal goverment we (ULCT) recently conducted a survey of municipal budget officers across the state of Utah.

The survey instrument used is patterned after a survey administered by the National League of Cities and adapted to address Utah's cities and towns. The survey asked respondents to assess if their city was better able or less able to address their budget needs this fiscal year versus the last. The survey also asked budget officers to measure the degree of impact a number of factors had on the budget process. Overall Utah's cities and towns are experiencing fiscal stability, led by the strong state economy, but that doesn't mean there aren't looming challenges (i.e. infrastructure needs and rising health care benefit costs). Click here to read Municipal Fiscal Conditions 2007.

I appreciate the input from staff at the University of Utah CPPA and a small group of city budget officers regarding the design of this instrument. Also, thank you to the 82 cities who responded.

Tax Incentives for Development?

2007-02-15T14:27:00.001-07:00

Thanks to the Utah Bloghive I've recently read a couple of interesting blog posts, especially y-intercept's post on how sales tax creates self-destructive behavior by cities. The post and following comments are interesting, I agree in part, but also disagree. First, I don't think cities are providing the incentives (or "subsidies") for retail development like y-intercept or others might think. For one reason the use of sales tax incentives for retail development has been prohibited for cities and counties since 2004 (SB 124). And recent RDA legislation has decreased the use of RDA money for retail development projects.

Of course, some large retail still receive municipal incentives. But these projects amount to a simple cost benefit analysis. It is the same reason why the State of Utah recently offered nearly $2 million to try and lure a toilet paper manufacturing company to Washington County or a $1.3 million rebate to Backcountry.com, read the article here. Not all retail occurs on its own (as suggested by y-intercept and the Utah Taxpayers Assoc.). Projects like Cabela's or IKEA, are often choosing a location between a number of regional jurisdictions, and don't just develop in Lehi or Draper on their own. Governments, state and local, are always going to compete regionally in attempts to stimulate the economy. I don't think I would call this process creating a false economy.

There are two key questions here: 1) How do we get state and local government economic development on the same page? There isn't an easy answer...maybe the state and cities should begin sharing income tax revenue (just an idea). 2) How do we maintain our locally owned unique stores while also allowing larger regional development projects? There is a lot we can do here, which is why we (ULCT) recently co-sponsored a training session/forum with Local First Utah to address this very question. Read the article here.

Anyhow, I'm not a planner...but I do understand the finance side of municipal government and the financial pressures cities face to provide the services we all enjoy. Sales tax revenue, for good or bad, is a very large piece of the municipal revenue pie.

Wild Valentine's Day Love

2007-02-13T22:07:00.000-07:00

Some cities (Tampa, San Francisco, New York, and even Boise) are providing a little extra incentive to visit the zoo around Valentine's Day...at least for adults. Wild animal sex tours seem to be catching on at zoos across the nation--that's right, people paying to watch animals mate and in some cases enjoying a candlelight dinner during the 'event'. I'm not sure I would ever attend, but I'm all for innovative revenue generation. Check out the story here or here.

Bush Delivers Federal Budget

2007-02-07T21:33:00.000-07:00

With everyone buried in the middle of the UT Legislative Session maybe you missed that Monday President Bush delivered his FY2008 budget to Congress. Just by mentioning the federal budget most eyes droop or glaze over...it is hard to see the relevance to local politics or to relate to numbers like trillions. However, there are some real factors for us to be aware of. Here are a couple of points to note:

Current budget deficits will likely diminish then disappear over the next decade (According the Congressional Budget Office).
While the deficit will decrease mandatory spending (Social Security, Medicaid, Medicare) continues to rapidly grow.
Currently Social Security, Medicaid, and Medicare amount to 8.7% of GDP or $1.1 trillion

CBO estimates that in 20 years these programs will nearly double, resulting in 14% of GDP.

The question becomes...what happens to the discretionary piece of the federal budget while mandatory spending grows? Discretionary spending includes all programs that impact state, county, and municipal governments. It is important to keep on eye on this to accurately assess the future of federal, state, and local fiscal partnerships.

The Tax Policy Center is a great resource to better understand federal budget issues and the budget process. Check here.

Another bad bill

2007-02-07T10:44:00.000-07:00

We (ULCT) have taken a formal position opposing HB233, Rep. Morley's bill that would restrict the ability of cities to zone in environmentally sensitive areas. If you've been reading Lincoln's blog you are familar with the background of this legislation. I was surprised, but pleased, this morning to see in the SL Tribune a letter to the editor also opposing HB233. Thanks Steve Glaser, I couldn't agree more. Check here.

The Daily Herald today also took a position to oppose HB282 (removal of sales tax on food). Read the editorial here. According to The Daily Herald Newbold's bill is "fraught with negative consequences." Of course I agree.

Meet Mayor Simmons...

2007-02-01T15:56:00.000-07:00

Brian Hall in our office recently initiated a new feature to our website called Ten Big Questions. This will highlight different municipal elected officials from across the state. First up...Mayor Randy Simmons (Mayor of Providence City). Check here to read what is easier for Mayor Simmons, correcting a stack of essay exams or sitting through a city council meeting.

Why I oppose HB 282...

2007-01-30T17:11:00.000-07:00

There has been much discussion in the media and at the Capitol regarding sales tax on food. HB 282, sponsored by Rep. Merlynn Newbold, will create a single sales tax rate of 4% on food purchases. In essence, this bill removes the sales tax on food for resort communities, transit districts, and in cities with RAP and ZAP taxes. The bill would cost these entities approximately a combined $20 million. Here are three simple reasons why I oppose this bill:

1. Bad Tax Policy – Legislators supporting this bill often express the benefit repealing the sales tax on food will have for Utah's low income families. I agree with this concern, but think there are other ways to address the need of low income households (and let's be honest, this is the same Legislature that last year cut $2 million in dental care from its Medicaid plan…plus, I don’t think anyone really believes that reducing the sales tax at grocery stores in Park City is really aiding Utah’s most needy families). Anyhow, in my opinion it is bad sales tax policy to narrow the base. I would rather lower the tax rate and expand the base. For example

Average State sales tax rate with food taxed – 4.8%
Average State sales tax rate with food exempt – 5.5 %

The more we narrow the base the higher our rate will be pushed as soon as the State needs money to balance their budget in future years.

2. What about the voters? – Just in November voters in Salt Lake County approved (over 60% in favor) a sales tax increase to be dedicated to transit. Now the Legislature is going to cut the base and with it the revenue this tax increase can generate? I understand that some Legislators don’t respect UTA, but what about the public? It seems to me the Legislature does not respect the opinion of the 140,000 SL County residents voting for Prop 3.

3. One Size Does Not Fit All – There is a reason that we allow for resort community taxes, resort hospital taxes, transit districts, RAP and ZAP taxes. We recognize that our state is diverse and local jurisdictions need flexibility to address the needs of their area. Reducing the tax on food for these distinct taxes reduces flexibility and local control.

I should add I'm not alone in this opposition. The ULCT League Policy Committee voted unanimously on Monday to oppose this bill.

Top 10 Legislative Issues Nationwide

2007-01-25T10:08:00.000-07:00

What is the hottest issue for the Utah State Legislature this session? I’m still trying to figure that out…I guess my vote would go to either tax cuts or education reform. While I’m still a little unclear on the top issues for the Utah Legislature, NCSL seems confident with their 2007 forecast of the top issues nationwide. Or as they put it they measure different policy issues in relation to water’s boiling point…212 degrees. Any guesses on which policy issue hit the 300 degree mark?

I’ll give you a hint…in 2006 there were 570 various immigration related bills introduced nationwide. Looks like that trend will continue. Check here for the full ranking: NCSL's Top 10 Policy Issue Forecast: Heat is on State Legislatures.

Mayoral Revenge

2007-01-24T08:32:00.000-07:00

Entire village suspected of mayor's murder...and we think the process to change our municipal form of government can be brutal.

Need for Conversation and Correspondence

2007-01-23T15:48:00.000-07:00

Mark Alvarez, columnists for the Salt Lake Tribune, wrote Sunday, "The greater good calls for more community conversation and correspondence about public policy that serves the common interest." I couldn't agree more. With the 07 Legislative Session in full swing it is time to start increasing our communication with each other and to our elected representatives.

Yesterday's League Policy Committee (LPC) meeting is evidence that we are already in the thick of the session. The LPC agenda was packed full of important issues, and our committee room was even more packed (I'm guessing over 80 city elected officials and staff from across the state). The LPC meeting is also evidence that a number of city officials are committed to participating in this conversation regarding public policy. There are a number of key issues we (ULCT) are tracking closely, for example:

Food tax, municipal election reform, municipal forms of government, land use issues, and telecommunications, to name a few.

Most of these issues are still in a very fluid state, so it can be difficult to stay up to speed. However, let's make sure the conversation and correspondence does not break down. Please check Lincoln's blog frequently, or visit the ULCT page, or you can always call (801-328-1601). The next month should be interesting and we look forward to hearing your input.

You can read Alvarez's column here.

Bootleggers and Baptists

2007-01-19T14:24:00.000-07:00

We all know politics makes strange bed-fellows...but do we know why? Bruce Yandle of Clemson University explains why politics often leads to these peculiar alliances of self-interested special interests with more altruistic motives. Or in his example bootleggers and baptists in the south teaming up to prohibit the sale of alcohol on Sunday. You might find this hour long podcast enlightening as the Legislative Session starts to heat up and Legislators start orchestrating deals. Or maybe you might just want to spend the weekend relaxing to some engaging EconTalk (seriously, it really is a good podcast). If interested check here.

Local Officials Day Reviewed

2007-01-17T19:51:00.000-07:00

The ULCT Local Officials’ Day was well attended today with Governor Huntsman, ninety percent of the State Legislature, hundreds of high school youth city council participants, along with mayors, council members, and city staff from across the state, even Abe Lincoln was in attendance. I hope everyone found the speakers and presenters informative.

Those in attendance enjoyed a lighthearted video regarding basic civics and government questions. Some of their answers are humorous, but more importantly I think the entire video is a reflection of all of us or society in general. Regardless of what we think we know, we still have much to do to become a knowledgeable and engaged citizenry. Hopefully that is the point that sticks—we can all become more informed regarding government.

I enjoyed my workshop with the Youth City Council members. Please click here if you are interested in my presentation or contact me if you have questions.

Local Officials' Day 2007

2007-01-16T15:40:00.000-07:00

Just a quick reminder regarding Local Officials' Day tomorrow at the Salt Lake City Sheraton. This cartoon here will make more sense tomorrow after our video is shown during lunch--a ULCT attempt at 'Jaywalking', but with our own local TV talent Allie Mac Kay.

I'm especially looking forward to meeting with the Youth City Council members from across the state. We should have a lively discussion about civics and what it takes to be an engaged citizen.

Do Mayors and Head Coaches Have Anything In Common?

2007-01-15T11:47:00.000-07:00

Okay, so I’m sure I’m not the only person who felt a little bad for Marty Schottenheimer when he had another playoff game slip away, losing to the Patriots 21-24. I felt bad because I knew I would wake up this morning and hear everyone calling for Marty’s job…sure enough Chargers fan David James (along with most of the nation) is calling for Marty’s firing. Here.

But in thinking about Marty I heard Colin Cowherd on the radio comment…“NFL head coaches are like our mayors. They are visible and the easiest to rip.” So do Andy Reid, Schottenheimer, Billick, and Holmgren have anything in common with Mayors Dolan, Curtis, Seghini, or Billings? Maybe they do, think about it…when something goes bad in a city who is the first to be blamed? The Mayor.

However, the Mayor is just a piece in the puzzle, just like the Head Coach. Sometimes we need to take a step back and look at the entire picture (or puzzle) before assigning blame…but oh it is so much easier to place blame on the most visible figure.

Maybe we need to take a minute to thank these visible figures while everything goes well—instead of waiting for events to go bad and blame them. Layton residents could start with Mayor Curtis ...pictured here, taking the time to try on the fire uniform with the Layton Fire Department.

O Water, Where Art Thou?

2007-01-10T13:29:00.000-07:00

Ever wonder exactly where your shower water comes from? Probably not...unless, of course, you turn on the shower and no water comes out. The City of Bryan, Texas put together a very clever calendar highlighting various aspects of their public works department--while also providing citizens great information regarding water uses. Check out the various calendar months in pdf form here.

My personal favorite...May 2007, Reservoir Clogs.

2007 Economic Report to the Governor

2007-01-08T15:33:00.000-07:00

The Council of Economic Advisors to Governor Huntsman recently released the 2007 Economic Report to the Governor. We all know the economy in Utah has been good in 2006...but just how good? This report provides important data and details regarding demographic changes, tourism, jobs and wages, and overall growth in Utah. If you don't have time to read the full 226 page report I at least recommend a review of the 4 page Executive Summary. Here are a few highlights.

5.2% -- job growth in 2006 (compared to 1.4% nationally)
2.7% -- population growth (67,714 new residents = a city the size of St. George)
18.1% -- construction job growth led all other sectors in 2006
5.4% -- non agricultural wages increase exceeded inflation for the 3rd consecutive year
5.4 million residents are expected to live in Utah by 2050...doubling our population in the next 44 years.

Smart Decline vs. Smart Growth

2006-12-27T16:06:00.000-07:00

While America continues to grow at a fast rate, some older more urban cities have declined in population. For example, Richmond VA, has lost over 50,000 residents in the last 35 years. And according to the US Census 11 of the 100 largest US cities fifty years ago now have less than 100,000 residents. There are a couple of factors that have led to this decline, primarily the use of automobile transportation and the incredible growth of suburbs.

Few Utah cities are addressing issues of population decline (however, there are some), but I found this article in USA Today interesting: As Older Cities Shrink, Some Reinvent Themselves. Ther article quotes Terry Schwarz, senior planner at Kent State University's Urban Design Center of Northeast Ohio, "Everybody's talking about smart growth, but nobody is talking about smart decline, there's nothing that says that a city that has fewer people in it has to be a bad place."

Portrait of the Average American

2006-12-19T09:35:00.000-07:00

The Census Bureau just released their 2007 Statistical Abstract. The abstract contains over 1,300 tables creating a fascinating portrait of what Americans look like (fascinating to those who love data and tables). Here are some interesting results from the Census Bureau data:

Americans are the most overweight people on the planet
Average American consumes 52 gallons of soda a year and 23 gallons of bottled water
Average American spends 4 ½ hours a day watching TV; 50 minutes a day reading the newspaper.
68% of American households have cable TV, up from 19% in 1980
207 million have cell phones, only 5 million in 1990
In 2005, 75% or college freshman said their primary objective was to be financially very well off
In 1970, 79% said their goal was developing a meaningful philosophy of life
In 1980 only 12% of doctors were women, today 27% are.
25% of households under the age of 25 own homes up from 8.5% from 1985
Of those Americans with Internet access:

97 million get their news online

91 million buy or make travel reservations

39 million read someone else’s blog

13 million created their own blog

Check here to read a recent New York Times article quoting Robert Putnam regarding this data. You might remember Putnam, the author of Bowling Alone, who spoke at our 2004 Annual Conference. Oh and I must note (due to my Idaho heritage) that potatoes still remain the most consumed vegetable by Americans.

What about expenses Tad?

2006-12-15T15:00:00.000-07:00

According to a recent article in the Deseret News, written by Tad Walch (Utah County bureau chief) Utah's cities and towns are flush with cash. However, Tad does not once in his article mention the rising expenditures that are often linked to a growing economy and society. For example, with growth come increased infrastructure needs.

True, Utah's cities and towns are benefiting from a booming statewide economy (like the State govt) however, this strong economy is not occurring with static service needs. According to a recent Utah League of Cities and Towns survey responding cities indicated the following:

91% report an increase infrastructure need from FY05 to FY06
44% anticipate a significant increase of infrastructure spending needed FY07
86% report an increase cost of employee benefits for FY06
73% report increase service needs for new development for FY06

These statistics illustrate the challenges that many cities and towns are faced with. Can cities better address these challenges during good economic times? Definitely. But does that mean cities and towns are flush with cash? Definitely not.

"Weird" Is Good, Right?

2006-11-30T16:31:00.000-07:00

So what makes city a successful city? Well according the CEOs for Cities it takes a combination of talent, innovation, connection, and a distinctive nature. A recent presentation at the CEOs for Cities conference in Miami attempted to measure the top 50 metropolitan areas based on these for dimensions. Here is a review of the indexes included for each dimension.

The TALENTED City: a)College attainment, b)Creative Professionals, c)Young & Restless residents, d)Traded sector talent, and e)International talent.

The INNOVATIVE City: a)Patents, b)Venture Capital, c)Self-employment, and d)Small businesses

The CONNECTED City: a)Voting, b)Community Involvement, c)Economic integration, d)Transit use, e)International students, f)Foreign travel, and g)Internet connectivity

The DISTINCTIVE City: a)Weirdness index, b)Culture, c)Restaurant Variety, and d)Movie variety.

So where does Salt Lake Rank?

1st -- community involvement (Minneapolis 2nd)
2nd -- 'weirdness index' (San Francisco 1st)
1st -- 'movie variety' (New Orleans 2nd)

Check here for more information: City Vitals Presentation...let me know what you think.

Making Better Communities (ULCT Focus Groups)

2006-11-20T22:16:00.001-07:00

This is a recent focus group video regarding 'making better communities.' The video is a collection of comments from four focus groups across the state of Utah regarding the quality of life in our neighborhoods and polices that are important to maintaining/improving this ideal.

Groups were moderated by Dan Jones & Associates, commissioned by ULCT. The video is around 14 minutes long, but just takes a minute or two to download.

Sad Day...Milton Friedman Passes Away

2006-11-16T15:27:00.000-07:00

Milton Friedman died today, at 94 years of age.
The New York Times described Friedman as "the grandmaster of conservative economic theory in the postwar era and a prime force in the movement of nations toward lesser government and greater reliance on free markets and individual responsibility."

Hoover Institute press release
New York Times article

I'm including a great video of Friedman's interview with Richard Heffner on The Open Mind, December 7, 1975. The video is around 30 minutes and takes a minute to download, but trust me it is worth it. Great interview. Check here.

Is Greenspan to Blame for Housing Bubble?

2006-11-10T11:25:00.000-07:00

What should be the role of the Federal Reserve? Should the Reserve be more transparent to the general public? Will there be a policy shift from Alan Greenspan to Benjamin Bernanke? And is Greenspan to blame for the latest housing bubbles that seem to be emerging nationwide?

I found this recent article in Reason extremely interesting, exploring these questions and more. Reason asked five key Fed watchers to assess these Federal Reserve issues.

Milton Friedman is a Nobel Prize–winning economist.
Rep. Ron Paul is a libertarian Republican representing the 14th District of Texas.
James Grant is a columnist for Forbes.
Bryan Caplan, an associate professor of economics at George Mason University, was a student of Bernanke's at Princeton.
Jeff Saut is chief investment strategist for the investment firm Raymond James Financial. He fears that Greenspan's seemingly excellent record built hazards into the economy of which investors need to be wary.

Check here for the full article: Can We Bank on the Federal Reserve?

Restrictive Public Finance Initiatives Fail

2006-11-08T11:57:00.000-07:00

While attorneys, candidates, pundits, etc. count votes in Montana and Virginia the real policy analysts have already started to look at the results of key initiatives and referendums from around the nation. Americans indicated significant frustration with federal government incumbents, but seemed unwilling to restrict local and state government spending and taxing authority.

According to NCSL election analyst Jennie Drage Bowser, “They (Americans) were reluctant to approve measures to reduce government power but receptive to conservative-leaning measures. Liberal-leaning measures received mixed results.” For example:

Major tax cuts, along with tax and spending limits in six states all failed. Voters in Maine, Nebraska and Oregon rejected tax and spending limits and while voters in Oregon, South Dakota and Washington decided against significant tax reductions.

For more detail of these initiatives access the NCSL review.

What is the Public Perception of Taxes?

2006-11-07T00:04:00.000-07:00

It is interesting that citizens do not know more about their local government taxes. Citizens are using local government services daily (water, sewer, garbage, libraries, roads, parks) yet, they have no idea how these services are funded. And a better question is, do citizens change their tax preferences with increased knowledge? This graph illustrates data from our Dan Jones conducted Tax Survey that indicates, that yes tax preferences do change with increased knowledge.

This is the issue Brian Roberts and I explore in our paper Citizen's Blank Check. We presented the findings of our study last week at the APPAM (Association for Public Policy Analysis and Management) conference in Madison. The response to the data and paper was excellent. Our session titled, Understanding Taxes and Tax Incentives, was attended by 20 to 25 academics and bureaucrats. The session included a panel of three papers, with each presenter taking 15 minutes to present, then discussion and Q & A. There was significant interest in the ULCT tax knowledge and perception data. It is surprising to most that public perception isn't greater regarding local taxes. I guess the idea that we know what is closer more is not consistent when it comes to local taxes.

One interesting suggestion was to explore whether new homeowners have better property tax knowledge than "seasoned" homeowners. The logic is individuals who have made a recent home purchase have looked closely at their property tax bill for the new property. I'm not sure what the results would be, I'm inclined to say that it wouldn't matter. Maybe it will be something we'll look to explore more. In the meantime (if you are very inquisitive or love taxes) you can read our paper here.

A couple of other interesting conference sessions...

Obesity and Public Policy (here)
Married and Poor (here)
Neighborhood Economic Development (here)

Remember to Vote

2006-11-06T16:26:00.000-07:00

300 Million Americans -- 2.42 Million Utahns

2006-11-03T20:09:00.000-07:00

America reached a milestone at the end of October, 300 million Americans. TIME magazine provided a recent breakdown of America "by the numbers." Their data provided some interesting descriptions on who we are today as Americans. For example FOR EVERY 1000 AMERICANS...

568 live in the state they were born
455 are employed
341 drive to work alone
173 speak a language other than English at home
126 live in poverty
122 are 65 and older
1 are in kindergarten

But what about here in Utah? FOR EVERY 1000 UTAHNS...

900 are white
630 were born in Utah
140 speak a language other than English at home
100 live in poverty
80 are over the age of 65
2 are in kindergarten

How much is the economy slowing?

2006-10-30T23:32:00.000-07:00

Did anyone see this article in the recent Economist? Third quarter GDP indicate the economy grew at a 1.6% annualized rate. Which is much less than most predicted and a full point lower than the previous three months. Decline in homebuilding accounts for a large portion of this GDP decline, with residential homebuilding declining by 17% this most recent quarter. According to The Economist the declines in house building accounted for two-fifths of the quarterly fall in GDP growth. See the full article here.

So what does this mean? According to the FDIC (Federal Deposit Insurance Corporation) Utah is experiencing some slowing housing growth, but not at the rate of the rest of the nation. In addition, FDIC reports that while some western states have recently experienced slowing job growth Utah's employment growth has increased by 3.6% from last year. Largely this growth is in construction related occupations. However, FDIC also concludes, "Recent declines in permit and sales activity point to slower residential construction activity in the months ahead, with possible adverse implications for overall job growth and the demand for construction financing." Something for analysts to keep a close eye for the next quarter.

New website

2006-10-30T23:16:00.000-07:00

Okay, so after months of anticipation (by whom you might ask) the League of Cities and Towns is launching a new website....and along with that a new blog for me. We'll see how long this lasts. Kind of feels like a New Year's resolution, I'm going to be more optimistic that this lasts longer than one week. I'm hopeful that this blog will remain up to date and provide some utility to those visiting our website.

And some utility in allowing me to discuss ideas, solicit feedback, and sort through some important policy questions.