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.

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.

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

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

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.

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...

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.

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.

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.

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.