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

www.nlreda.ca

Questions?

Thank You!