United States Region 8 EPA-908/4-78-005c
Environmental Protection 1P60 Lincoln Street July, 1978
Agency Denver, Colorado 80203
AFPA Action Part
-ji ¦ Community Action
Handbook and Growth
Management
Managing Growth
in the Small
Community
Briscoe, Maphis, Murray, Lamont, Inc.
Boulder, Colorado
-------
EPA-908/4-78-005C
Action Handbook
Managing Growth
in the Small Community
PART III:
COMMUNITY ACTION
AND GROWTH MANAGEMENT
Prepared For
U.S. ENVIRONMENTAL PROTECTION AGENCY
GEORGE G. COLLINS, PROJECT OFFICER
REGION VIII, DENVER, COLORADO
Prepared by
Briscoe, Maphis, Murray & Lamont, Inc.
Boulder, Colorado
1978
-------
This report has been reviewed by the U.S. Environmental
Protection Agency, Region VIII, and approved for
publication. Mention of trade names or commercial
products does not constitute endorsement or recommenda-
tion for use.
This document is available to the public through the
National Technical Information Service, Springfield,
Virginia 22161.
For sole by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20102
ii
-------
Acknowledgements
The authors wish to acknowledge the assistance and advice of the
E.P.A. Project Officer for this study, George C. Collins of the Region VIII
Denver Office. We also thank the many reviewers who offered
useful comments at the draft stage of this document. In particular, the
suggestions and encouragement provided by Joel D. Webster,
Region VIII E.P.A., Denver, were most helpful. Daniel Schler of the
University of Colorado, Denver, is also to be credited for his
major role in developing the community involvement concepts contained
in Part II of the handbook.
Funding for the preparation of this handbook was provided by the
Office of Energy, E.P.A., Region VIII; the Water Planning Branch, Water
Division, E.P.A., Region VIII; and the Office of Land Use Coordination,
E.P.A., Washington, D.C.
tu
-------
,v» ¦ mm
* - j
iv
-------
Preface:
How to Use the Action Handbook
The Action Handbook is designed to be a detailed "how to manage" manual for
small communities undergoing or facing the prospect of accelerated growth.
The recommendations and prescriptions may be of particular interest to small
Rocky Mountain communities facing rapid growth due to the surge in energy
development activities. However, the authors consider the material valid
for a much broader range of communities in terms of both size and of the
causes of growth.
The reader may find the Action Handbook rather straightforward in detailing
"the approach" to successful community growth management. This presentation
should not be interpreted to mean there is only one approach. Rather, it
reflects the author's intent to suggest concrete procedures which are speci-
fic enough to implement with only slight modification for particular local
conditions. In all cases, the suggested procedures must be tailored to
local conditions.
To accomplish the goal of preparing a "how to" handbook, it was necessary to
commit to a best overall approach to community management under growth con-
ditions. The approach recommended was not chosen arbitrarily. Rather, it
is based on a decade of experience in the Rocky Mountain West. The concepts
are not speculative; they have been tried and tested in a number of locations
including Boulder, Loveland and Vail, Colorado, and Rock Springs, Wyoming,
and as part of this project, applied in Scobey, Montana, and Sheridan, Wyoming.
The Action Handbook presents a process for community management. The job to
be done is not a one-shot project, but an ongoing set of organized activities
involving a broad range of citizens in the community and outside affected
parties. Once the process is accepted and becomes part of the community way
of life, the practices and procedures tend to perpetuate themselves. Thus,
the focus is on describing the process and steps to be taken for its adoption
in the community.
The handbook is divided into three parts for the reader's convenience. The
Table of Contents, which follows, includes all these parts. Part 1 is intended
to give an overview of the community management process and to assist the user
in estimating how development of a certain type might affect the community's
needs for various public services, such as police officers, sewage treatment
capacity, park land, etc. This part should be of interest to all those who
wish to understand potential community impact, and especially those who would
initiate community management and organization. Part II deals with approaches
to getting the community involved and organized. It suggests a working model
for the community organizers. Part III focuses on community action and growth
management. This part will be of greatest interest to those closely involved
in making government work to manage growth.
HOW TO USE THE HANDBOOK
After reading this preface and the introduction contained in Part I, look
at the chapter entitled "Getting Control" in Part III. At this point, you
will not need to understand the complexities involved in establishing standards,
codes, and policies, but rather the basic philosophy underlying the recommended
actions and approach. "Getting control" is really the main purpose of the
entire process described in this book.
Next you may want to look at the tables in the chapter "Getting a Picture
of What Lies Ahead" in Part I and work some or all of them, based on actual
figures associated with proposed development in your area, or using your
own estimate of development which may occur. What will it cost your community
not to take control? How much trouble will organizing the community for
impact management create?
v
-------
Look through "The Process of Community Management" in Part I to get an idea
of what will be involved in following the recommended management process.
How difficult will it be to involve the community? Compare this with the
problems that may arise if work is done by town staff and/or consultants and
the community is then asked to accept decisions it had no part in making.
Depending on your assessment of the seriousness of what may lie ahead, and
the opportunities and/or difficulties presented by the involvement process,
you can decide if you want to go ahead.
Keep in mind that what is presented in this handbook basically describes the
areas of concern that surface in most communities threatened by change. The
Action Handbook attempts to show how to make this process more successful
by emphasizing study and involvement by citizens, and getting an early start
on response by the whole community before a crisis develops. Such efforts
will strengthen the community and the democratic process, create a broader
base of positive responses to the impact situation by a variety of community
organizations, groups, and individuals, and reduce the long range possibili-
ties of citizen opposition to needed changes and adjustments. The "crisis"
approach to dealing with growth has long range negative effects on the
community's quality of life. A systematic, communitywide approach can avoid
many of the chaotic problems that will otherwise develop, and can conserve
scarce human and fiscal resources.
Because local communities are run on a democratic basis, the handbook is
written for a varied audience. Especially in Parts I and II, the authors
have tried to use nontechnical language so that citizens can carry out the
activities designed for their participation and achieve a basic understand-
ing of specifics such as financial or facilities planning which are part of
a government's role. If particular sections or concepts are unclear or con-
fusing, we encourage you to seek explanations. Don't be afraid to ask. Go
to government staff, local college professors, or available technical experts.
You might invite one of these people to an informal study session to go over
a particular section(s) with a group.
The authors also wish to emphasize that although a given chapter may be
particularly useful for, say, financial managers, all chapters are part of
an overall process which is inter-related and in which cooperation within
local government and between government and citizens' groups is essential
to the overall success of the impact management effort. It is strongly rec-
ommended that readers of the handbook concern themselves with chapters speci-
fic to their area of interest, but also look at related chapters to gain a
broader understanding of how their activities relate to all impact management
activities which are taking place.
To some people, handbook recommendations may appear too detailed and struc-
tured for their particular community. Each community is encouraged to adapt
the specific contents to its local situation, use those parts which are most
relevant, and revise particular situations to make them more suitable to the
community's own situation and needs. As stated above, handbook recommendations
are the result of the authors choosing among various alternative approaches.
They are intended as guidelines, not as rules.
Finally, remember that the Action Handbook is a working document. Write in
it. Reorganize sections to fit your community's style and needs. Tear out
pages and charts and put them up on walls. Get this book dirty and dog-eared
with use!
vi
-------
TABLE OF CONTENTS
PART I: GETTING A PICTURE OF WHATS AHEAD
Preface: How to Use the Action Handbook v
1 Introduction to Part 1 1
2 Getting a Picture of What Lies Ahead 5
3 The Process of Community Management 13
PART II: GETTING THE COMMUNITY INVOLVED AND ORGANIZED
4 Introduction to Part II 1
5 Getting Started: The Initiators 3
6 Creating a Nucleus of Broad-Based Community Support: The Community
Impact Committee 7
7 Laying the Groundwork for Community Involvement 13
8 Planning for Community Meetings 15
9 Informing the Community: The First Community Meeting 19
10 The Second Community Meeting: Forming the Task Forces 21
11 The Task Force Process 27
12 Identifying Development-Related Risks and Opportunities:
The Impact Committee Report 31
13 Taking Inventory, Assessing Impact, and Recommending Goals:
The Task Force Reports 35
14 Determining Community Attitudes: The Survey Task Force 39
15 Forging Community Goals 45
Appendices: Part II 47
A: Task Force Study Outlines
B: Sample Survey Questionnaire
C: Sample Community Goal Statements
PART III: COMMUNITY ACTION AND GROWTH MANAGEMENT
16 Introduction to Part III 1
17 Identifying Required Resources and Capabilities 3
18 Setting Community Priorities 7
19 Determining Governmental Functions 11
20 Coordinating Non-Governmental Groups 15
21 Getting Control 17
22 Assessing Details of Likely Impacts 31
23 Developing Liaisons 37
24 Land Use Planning 39
25 Planning and Policies for Physical Facilities 47
26 Planning and Policies for Social Needs 55
27 Fiscal Planning and Policies 61
28 Capital Improvement Programming 71
29 Annual Budgeting 81
30 Construction of Facilities 87
31 Housing 95
32 Managing Public Facilities 99
33 Managing Financial Resources (Accounting and Control) 105
34 Managing Cash Resources 109
35 Organizing Human Resources 119
36 Using Outside Resources 123
37 Follow-Up 127
Appendices: Part III 131
D: Governmental and Non-Governmental Agreements
E: Sample Subdivision Application Procedure
F: Sample Utility Extension Policy
G: Glossary of Bond Financing Terms
H: Construction Bonding Sample Forms
vii
-------
viii
iMW^m
-------
16 Introduction to Part III
If the preceding recommendations have been followed, at this point the com-
munity will know the general magnitude of the job ahead. Now you must turn
to organizing resources and creating programs for action. First, the availa-
bility of resources needs to be assessed. Then priorities are set in light
of resource limitations. Next, alternatives are considered for "who should
do what." Finally, a coordinated set of programs and activities is suggested
so all capabilities can be turned to the job at hand.
Of key importance is the role of the local general government. On the one
hand, it is surely wasteful to expect government to serve all the community's
needs. Many other valuable resources are available. Without the use of non-
governmental groups — private businesses, churches, citizens' organizations,
business groups, and so on, the community's needs will overwhelm its govern-
ment's abilities. On the other hand, it is essential that there be one party
with overall responsibility for the community's goals. Local government must
assume this role. As such, there is much to be done. The following chapters
detail a recommended approach for the small community. The focus is on gov-
ernmental tasks. Some things may not fit in the very small towns, or perhaps
they can be done informally. Some things will require the use of resources
outside of the community. Nevertheless, the following chapters contain use-
ful information on an approach to governmental administration that is designed
for communities wishing to take active steps to control and shape their own
futures. Remember, it is the central approach, and underlying philosophy
that is most important. Specific actions to implement these concepts should
quite properly be tailored to the local conditions and local capabilities.
The management process suggested in this part of the handbook strongly
emphasizes a philosophy of first getting control to ensure problems are not
so compounded at an early stage that they become overwhelming. This requires
careful analysis of existing conditions, identification of the nature of pend-
ing growth, and setting standards to control new development. Be convinced
of the importance of these "planning" activities. They will set the stage
for community quality and costs of services for years ahead. The most effi-
cient and effective government administration possible cannot lower the costs
arising from poorly planned physical systems. The layout and design of your
community, the timing and location decisions of development, and the terms on
which development occurs will very nearly predetermine your annual capital
budgets for years to come. If the costs are too high, your community will
have to accept a lower quality of life than you deserve.
1
-------
C:^°
^°co^>%; S*$xtV,ce
,Co<£sOt .v0K^ slxGe MO^J
^ef^p0^G°^
,#c
«?
,rtv»
^VN* v* ^°VtA
^sfjC^ ®V
#*>*$&** , -*»"
<£><* ~»»
2
-------
17 Identifying Required
Resources and Capabilities
Managing community impacts caused by growth requires many positive actions.
Business as usual will not work, nor will leaving everything to the local
government. The sheer volume of activity will require changes in proce-
dure, numbers of employees and commitment of resources. Efficient organi-
zation of activities will become much more important than before. In
many cases it will be desirable to call on non-governmental resources for
assistance.
While the citizens' committee is pursuing its activities (with local
government participation), the local government (city and county) can
begin organizing and planning strategies for dealing with existing and
anticipated problems. Identify early the roles and responsibilities that
local government and public agencies can most effectively assume, and
areas where non-government resources might be able to help.
ORGANIZE A LIST OF EXISTING COMMUNITY NEEDS
The work contained in this chapter should be done by the government
staffs. Obtain impact information from the Community Impact Committee.
Where staff specialists exist in the various functional areas (utilities,
finance, parks, etc. ) assign these persons the review in their respective
areas. Remember, the purpose of this exercise is to assess the general
outline of the job to be done, and develop some ideas for priorities
and getting help with the job ahead.
List all service areas which may require some action by the community as
a whole. Refer to Column (1) on Table 17-1.
Summarize the information compiled by the citizens' committee (task forces)
regarding the existing conditions and capabilities of present facilities
and services for each service area. Be specific. Record this in
Column (2) on the table.
Note existing problem areas in services and faciliities. There is no need
to be highly technical at this point. Identify broad areas of concern.
For example, "raw water storage is lacking," "library facilities are
unavailable in the junior high school," "the sewage treatment plant is
overloaded due to infiltration." Enter this in Column (3) on Table 17-1.
Avoid referring to national standards for public services except where
mandated by law (e.g., sewage effluent standards). Try to tailor the
statement of needs to the local situation and what will meet the local
citizens' tastes and budget. However, don't trim the list of needs to
meet estimated budget constraints. This will come later.
Focus on needs and desires being expressed by the existing population.
Anticipated needs to serve new growth should be identified separately
(see below).
ORGANIZE A LIST OF ANTICIPATED NEEDS
TO SERVE NEW GROWTH
For each service area, judge the general nature and severity of the
expected impact with rapid growth. Again, do not be overly concerned if
you can't be highly specific or accurate. Coordinate this assessment of
anticipated impacts with the work of the Community Impact Committee. Con-
sider the timing of possible problems, long term effects, affected groups
within the population, and so on. Record this information in Column (4)
on the table.
3
-------
Consider service area deficiencies that could develop with an acceleration
in growth and identify where corrective measures will be required. Record
this in Column (5) on the table. Show those needs arising with growth
separately so that:
• Higher priority may be assigned projects needed whether or
not growth occurs.
0 You can consider financing arrangements that place the burden
of paying for facilities only needed in the event growth occurs,
on the new population.
IDENTIFY POTENTIAL SOURCES OF ASSISTANCE
TO HELP IN MEETING THE COMMUNITY'S NEEDS
Consider as potential sources of assistance:
• Local governments and their existing advisory boards — city,
county, school, and local state-supported agencies
• Private companies — particularly the energy related companies
proposing to come into the community
• Service groups and organizations — churches, YMCA, YWCA, 4-H,
Chamber of Commerce, Board of Realtors, Co-ops, Kiwanis,
Rotary, Lions, etc.
• State universities and community colleges
• State agencies geared to local assistance
• Federal agencies geared to local assistance, e.g., Soil Conser-
vation Service; Housing and Urban Development; Health, Education,
and Welfare; Environmental Protection Agency, Bureau of Land
Management; Forest Service; Corps of Engineers, etc.
Consider non-governmental assistance other than complete provision of
a service. Such help may be of value in:
• Assessing current performance
• Researching new needs that might arise with growth
• Planning the steps required to meet needs (current or growth
impact) — technical, manpower and financial
• Participating in the actual process of raising service levels
• Funding, management, and/or operation of services and facilities
CAREFULLY EVALUATE NON-GOVERNMENTAL
SOURCES OF ASSISTANCE
Often non-governmental organizations cannot serve all citizens in the same
manner. For example, an organization's primary objective may be earning
profits, serving the interests of a particular community group (business
people, ranchers, realtors) or serving spiritual or cultural interests.
In spite of this, non-governmental groups may be able to meet all or part
of the community's needs in a given service area. For instance, recrea-
tional needs may be largely supplied by the local YMCA, church groups, and
the U.S. Forest Service.
In approaching non-governmental involvement in providing for community
service needs:
• Be sure to identify special interests at the outset.
0 Recognize that local governmental involvement may be required
to ensure all citizens have access to services provided to
special groups by private or quasi-public organizations.
4
-------
PAGE NOT
AVAILABLE
DIGITALLY
-------
• Exercise care not to overestimate the ability of non-governmental organi-
zations to provide public services on an ongoing basis. Only so long as
the organization's own goals are being achieved will a public interest also
be served. If a private golf course operation ceases to be profitable,
such a service may be cut off.
0 Realistically evaluate the resources actually available to non-governmental
groups to accomplish what is expected. Good intentions alone may not
suffice. If services are started outside of local government and cannot
be continued, the government may have to take over responsibility, even
though the service priority is not high relative to other needs.
• Based on the preceding evaluation, list the organizations in Table 17-1,
Column (6) which may be willing and able to provide some assistance in
meeting the community's existing and anticipated needs. However, as only
limited help can be anticipated, do not move to request help until you
have determined priorities, as discussed in the following chapter.
5
-------
6
-------
18
Setting
Community Priorities
Once the general needs of the community are identified, it is essential to
decide what requires attention first. A long lead-time to produce a given
facility may dictate early action. Some actions can await population growth.
Some actions can be planned and designed, and execution set aside until
growth occurs, while some will need to be developed before growth will be
able to occur.
Setting priorities guards against being caught short because timing or a
required sequence of actions has been ignored. Priorities will also dis-
cipline your actions and provide a feeling of confidence that the community
can get the job done. Critical paints can be identified and mechanisms
or checkpoints established to assure the community they will not be overrun
by impacts before they are ready. For example, if you will need a year
to build a sewage treatment facility and you only have a capacity to add
25 more taps now, you may want to ration the number of building permits
until the new facility is completed.
All actions will not be in your control. For example, you may have to
wait for outside funding before building a facility. If this is the
case, you will quickly learn that yo\i need a lever to assure that energy
development and its attendant impacts do not occur before someone provides
that outside funding. Events must occur in the proper sequence or you will
always be playing catch-up. This requires that you not only know what
you needy but when you'll need it.
ORGANIZE FOR SETTING PRIORITIES
Using Table 18-1 that follows, the inventory work of the task force
groups, and the table of potential resources (Table 17-1 in the previous
chapter), the local government, possibly with assistance from the Community
Impact Committee, should begin to identify which programs to pursue in
what order to meet the community's goals.
Although citizens, such as the heads of individual task forces, might make
up a working group to help hammer out priorities, it is essential that the
local government be seriously involved. In addition to local government's
major responsibility in implementation, setting priorities will require
certain technical information that can best be supplied by government
personnel.
USE OF SIMPLE APPROACH TO SETTING PRIORITIES
Priorities can change as conditions change. For this reason, the community
should not lock itself into an inflexible position which cannot respond to
new developments. Keep in mind that assigning priorities does not neces-
sarily commit the community to major expenditures. The financing problem
will be raised later on. Above all, concerns with financing should not
stand in the way of an honest appraisal of the community's needs and their
relative importance.
Assign priorities to groups of projects as follows:
Priority 1: Plan and start before growth accelerates.
Priority 2: Plan, but do not start until growth accelerates.
Priority 3: Plan in general, but detail work should not occur until
growth accelerates.
7
-------
It will help to bear in mind that services or facilities usually follow a
sequence of actions before they become realities. Each of these is a step
in the process.
• Identification of the need/objectives
• Definition of the magnitude of the problem
• Analysis of system or facility alternatives to meet the need
• Planning considerations as to proper location, special needs,
and support elements
• Design
• Funding
• Construction or provision of service
In setting priorities it may be desirable to move through the planning
stage, and in some instances design. But because some facilities and
services will only be necessary if growth actually occurs, design through
construction may be able to wait until the uncertainty or risk is gone.
ASSIGN PRIORITIES
Consider the following items in developing the priority list:
• Desires of the existing citizens.
• Physical, financial, or institutional capacities of existing
service systems in the community.
• Some project may be prerequisite to meeting another community
need, e.g., expanding the water system may have to precede
new housing development.
• Some projects require extended construction or public involvement
leadtimes, such as providing sewage treatment facilities. (Refer
to Table 18-1).
• The availability of financing may dictate the timing of an action
or project. For instance, grant funding applications may require
immediate action to be eligible.
• Preservation of certain natural features may require immediate
action or be lost.
• Some tax measures must precede a rapid acceleration in growth in
order to ensure the growth helps to pay for expanded facilities
(tap fees, use tax, etc.).
• Community desires and support may dictate action on a given
project, regardless of the anticipated growth impact.
Compile a list of community needs and actions which require attention,
beginning with the highest priority and working to the lowest priorities.
In addition to the assignment of priorities, identify actions necessary
to provide leverage to avoid premature impacts, e.g., a policy statement
that site approval for a new mine should not be given until a new bypass
road is constructed to keep traffic from bisecting a residential community.
Expose the priorities to the local governing bodies and the public. Be
sure this is done with some explanation of the underlying reasoning. The
local governing body need not formally adopt the priorities, but its input
should be sought and its acceptance of the list obtained.
8
-------
PAGE NOT
AVAILABLE
DIGITALLY
-------
NOTES
-------
-------
19 Determining
Governmental Functions
Local government may play many different roles in meeting the community's
needs. It may directly produce and distribute services. It may solicit
certain services from private companies or other governments. It may
assist and support these sources, perhaps financially or by providing
information or expertise. Or it may organize or facilitate service develop-
ment and operation by others.
Determining appropriate roles of local government bodies and of alternative
institutions, is a decision of the elected officials. It should be based
on widespread citizen participation and understanding of governmental and
non-governmental capabilities.
STRATEGY
Avoid the notion that the local government must directly provide for all
the community's collective needs. Keep in mind the information on sources
of assistance recorded on Table 17-1 above.
• View the local government's job as one of organizing the supply
of services, not necessarily always being the provider.
• Recognize local resources and private. sources of services.
• Keep in mind that the local government may be forced to
provide certain services that cannot be obtained from any
other source.
Make every effort to maintain continuing involvement of the citizens'
committee, other government agencies (town with county and vice versa),
and the school board. Coping with growth reguires a united front.
* • Such efforts can avoid overlap, duplication, and wasted funds.
• Joint support can carry more weight with the energy companies,
the state, and the Federal Government.
• Citizens are more apt to support a joint front than an
"everybody do his own thing" effort.
REVIEW LOCAL GOVERNMENT CAPABILITIES
The types of activities involved in supplying community services are re-
markably diverse. Included are tasks of planning, research, administration,
engineering, utilities management and operation, and services to the
public. In the process of determining governmental functions, consider:
•The local government's ability to recruit and hold persons
qualified to properly execute the required functions.
• The local government's ability to expand its financial base.
Can new taxes be levied? Can fees be charged for services
provided?
Remember that a government is usually more effective than other organizations
in obtaining grants and loans from higher levels of government.
The governmental powers of licensing, regulation, and taxation may be used
to achieve public goals without direct involvement by the government in
providing a Service. For instance, many electric utilities are privately
owned and operated, but regulated by a public body.
11
-------
Recognize that all organizations tend to become more bureaucratic
as they increase in size. If a service can be provided privately at an
eguitable cost to the citizens, this may be preferable to the local govern-
ment having to assume more personnel costs and overhead.
Keep in mind the ability of local government to respond to citizen concerns.
It is typically more accessible than non-governmental organizations.
DETERMINE GOVERNMENTAL
AND NON-GOVERNMENTAL FUNCTIONS
Review the inventory of non-governmental resources developed above. Review
the list of priorities.
For each service, identify the logical roles of each government agency as
well as each available non-governmental organization. Recognize that the
local government must play the lead role in many areas, and be ultimately
responsible for assuring the community's goals are pursued in all service
areas.
Review organizational structure and anticipate change.
• Changes will occur as staff and programs are added.
• A key consideration is hiring a professional administrator or
manager to orchestrate the community's functional operation
during the growth years. If a sufficient size is reached,
he/she will likely continue after the boom has passed.
Expect to pay governmental salaries which will attract and hold professional
people with experience for key positions. This is difficult to accept in
areas where local salaries may traditionally be low for government employees~
But you are seeking people from a national market such as city managers,
finance directors, or city planners. Large sums of money that will be
spent on facilities and services and the importance to the community of
getting the best advice possible to avoid degrading its lifestyle requires
trained people. Hiring uninformed, well-meaning amateurs will prove to be a
very expensive decision in the long run. Ideally, someone with local or
regional ties who also has the necessary expertise can be hired.
12
-------
NOTES
-------
-------
20 Coordinating
Non-Governmental Groups
Implementation of the community's plans should be organized and systemized.
Of utmost importance in efficiently carrying out the community's desires
is a clear definition of who is responsible for what actions. The local
government must play the major role in meeting this requirement. In cases
where the local government is not actually the provider of a service, it
should be responsible for ensuring the services meet the community's goals
and standards.
STRATEGY FOR COORDINATING
NON-GOVERNMENTAL GROUPS
Clearly identify what is expected from the non-governmental groups.
Keep in mind the limited capabilities of such groups. Use their
strengths.
Put in writing just how such a group will relate to the government.
A contract is the best approach, though often a letter of agreement or
understanding will suffice and is less formal and expensive. Refer to
Appendix D for examples of agreements with non-governmental groups.
FOLLOW A FEW SIMPLE RULES
WITH NON-GOVERNMENTAL GROUPS
Do not delegate unimportant tasks. Make-work jobs will turn people off.
In the event public monies or other resources or actions are necessary
for completion of the task, the party (parties) with primary responsibility
should work within the government's normal system for decision-making and
control.
Whenever responsibilities for meeting a community's needs are assumed by
non-governmental groups, the local general government must be prepared
to respond to their requests or recommendations for action.
Delegation of tasks without follow-up will kill community interest,
raise suspicion of the local government, and in general, render delegation
ineffective. The government need not agree with recommended actions, but
must give them a hearing and respond intelligently.
When tasks are delegated, the general government must communicate signi-
ficant events and developments to the non-governmental groups.
• The government will likely know first about happenings which
might affect the groups' work or implementation of their
recommendations.
• For best communication, assign some governmental"staff to act
as a liaison with the citizens' groups.
Beware of accepting assistance from non-governmental groups when you can
anticipate that such assistance will be short-lived. In such cases, the
local government may eventually be forced to accept responsibility and
costs for the service.
15
-------
16
-------
21 Getting Control
In a region being impacted by energy development, the extent of government
controls over private development is of major concern. Most area resi-
dents would like to avoid such things as zoning, building codes, or sub-
division regulations. As long as growth doesn't occur, most communities
can continue to operate without these restrictions on their lives. Argu-
ments from "the Constitution" to "World Wars were fought to preserve these
freedoms," to "communism" are raised when governmental regulations are
proposed. But if growth begins, the community which lacks standards and
development regulations will pay a dear price. Controls are usually pro-
posed and adopted when the problem has gotten so bad that citizens demand
these steps. This is too late. It's hard to move a mobile home park out
of the flood plain after it's occupied.
Before development begins, carefully review what you want to preserve,
protect, avoid, as well as what you want to see happen in a positive view.
Then draft codes and policies that support these goals. The new growth
that occurs will largely be the work of developers and financiers who live
outside the area. Their primary concern will be, "Does it return a pro-
fit?" -- not whether or not the community's values, traditions, and way of
life are served. The conscientious developer will be at a disadvantage
competing with the fly-by-night operation unless the community sets down
guidelines and standards for all to meet. Promoters and developers will
supply the market with products they know from other areas. Visit the
early mobile home parks in Gillette and Rock Springs, Wyoming, or Grants,
New Mexico. Did these areas add to the community or provide more than
minimum shelter to the occupants? You can avoid this!
STRATEGY FOR GETTING CONTROL
Identify what is important to preserve in your area. Much along these
lines will have been accomplished in the course of the task force studies
throughout the community involvement process.
Identify the types of controls that might be significant. You may already
have some, but can they insure the community's goals will be met under
conditions of rapid growth and large scale development? Development con-
trol tools often used by communities include:
•
Zoning or density and use
controls
•
Construction permits
•
Subdivision regulations
•
Building codes
•
\
Flood plain zoning
•
Housing codes
•
Hillside development
•
Occupancy limits
regulations
•
Dedication requirements
•
Grading regulations
•
Sign codes
•
Drainage regulations
•
Parking regulations
Identify what aspects of these controls would Create problems for locally
accepted habits or situations, e.g., farming or ranching practices. Be
sensitive to avoiding control of situations that don't need it, e.g., con-
struction of barns or ranch facilities that simply serve the ranch. Buil-
ding permits for these structures should not be necessary unless state law
dictates they are.
Involve local groups who will be affected by such controls (e.g., realtors,
builders, agricultural interests, environmentalists, and administrators) in
reviewing what is desirable and what is a concern for control. Remember you
are preparing to control developments from sources who may not be sympathetic
to your local life style or values.
17
-------
STANDARDS
Development will occur whether there are standards or not. The question
is what do you want new development to be? What requirements will be
necessary to avoid future problems? Consider dust, pollution, living
conditions, safety, preservation of community character, location of
businesses and industries, location of junk cars of heavy equipment.
• Decide what is desirable about your community.
• Decide what is necessary and required by state standards to
preserve health and safety.
• Decide how you want the residential, commercial and industrial
areas to be if growth occurs.
• Decide what environmental concerns need protection if the
demand for land for development increases.
• Decide who you want to pay for new growth, existing residents
or newcomers.
• Decide if community appearance will be a concern if your town
doubles in size.
• Decide if you want to avoid problems before they develop or
will be willing to pay to correct them later.
Standards become the rules for development. They must be precise in an
engineering sense and address the large variety of situations faced by
designers, developers and builders. For instance, if it is a developer's
responsibility to install local residential streets, he must be informed
about standards for all design elements including right-of-way widths,
utility easements, curb types, sidewalks, etc. Table 21-1 is an example
of written standards for street construction. Figure 21-1 shows these
standards pictorially.
Standards of all types have been adopted by communities throughout the
country. Professional organizations like the American Society of Planning
Officials (ASPO), the International City Management Association (ICMA),
the National Recreation and Park Association (NRPA), the American Society
for Public Administration (ASPA), and the American Water Works Association
(AWWA) can supply you with models and references. The important thing to
remember is that your standards must fit your own local goals and problems.
Affected local groups can be very helpful in reviewing what is needed in
your area.
The same standards must apply to all parties working in the community,
public and private. The town government must avoid feeling that because
it represents the public interest it can ignore adopted standards when it
chooses. This will quickly result in a loss of respect for the standards
by all parties.
If you have had few standards in the past, you may feel the need to act
quickly in adopting standards in a number of areas. Rather than rushing
in their development, proceed systematically. Refer to the priorities
previously established, judge how responsive the community is to regulation,
and avoid omitting the public input and process of localizing models.
CODES AND POLICIES
Many times, standards are formally adopted in the legislative process.
Typically they are combined in codes that relate to building a subdivision,
building in a flood plain area, constructing signage, etc. In addition,
some standards are expressed as policies when it is not possible to write
out precise, detailed requirements. Your community's efforts to accomplish
its goals will depend importantly on codes and policies which express your
standards and guidelines.
18
-------
TABLE 21-1: STANDARDS FOR STREET CONSTRUCTION
STREET DESIGN ELEMENTS
DESIGN ELEMENTS
(in feet)
0
RESIDENTIAL
©
RESIDENTIAL
COLLECTOR
COLLECTOR
@ COLLECTOR
INTERSECTION
w/MAJOR ST.
©
ARTERIAL
©
FREEWAY
RIGHT OF WAY
+ + 48*
68'
Bl*
9 8"
130'
200'
RIGHT OF WAY PLUS
UTILITY EASEMENTS
68'
68*
81'
98'
130*
UTILITY EASEMENTS
lo'aio'
TRAVEL LANES
2-IO'
2-I2'
4-I2'
4-I2"
4-12'
6-12'
PARKING LANES
2-8'
2-8'
MEDIAN
14'
14'
28'
PLANTING STRIP OR
UTILITY AREA
2-8'
2-8"
2-8'
2-12'
2-30'
TRAFFIC FRICTION
FACTOR OR SHOULDER
2- I I/2'
4- 11/2'
4- 1-1/2'
2-10*
2-4*
CURBS
2- I/2'
2- I/2'
2-I/2'
2-1/2*
2-1/2'
SIDEWALK
4* CURBWALK
2-4'
2-5*
2-5*
2-5'
LATERAL CLEARANCE
2-I I/2'
2-II/2*
2- I I/2'
2-11/2'
2-11/2'
MINIMUM RADIUS OF
HORIZ. CURVE ON
-------
FIGURE 21-1: STANDARDS FOR STREET CONSTRUCTION
UTILITY
EASEMENT
ROW.
(?) RESIDENTIAL
ROW.
IS
8
UTILITIES
xc
ROW
12
12'
66
B*
toMUWK-r -atMKHHHH'l
P
r ui
6
UTILITIES
15
(D RESIDENTIAL COLLECTOR
ROW.
-------
Use available models and work with citizen task forces to develop a draft
of codes and policies. Use college students for assistance.
If you have funds available, you may wish to use consultants to assist you.
But know what you want to accomplish before you hire someone. You should
be in control.
State technical assistance can help you create and review your standards
and codes.
Follow these basic guidelines:
• Use model codes for ideas, but localize them. Keep your
community's attitudes and goals in mind when drafting.
• Identify your objectives in adopting regulations.
• Remember, you want to set your terms for development. Recognize
that minimums frequently become maximums, i.e., a 7000 square
foot minimum lot will be what subdividers will plan as their
basic lot size.
• There are differences between developed and undeveloped parts
of the community. If you feel existing lot sizes are too small,
you need not permit such sizes in potential development areas.
• Make sure the standards and codes complement each other and
use the same definitions where appropriate, e.g., definition
of a multiple family unit.
• Know why each standard is needed and why you are setting a
given size, quantity or amount.
• Try to coordinate standards among communities in the area and
the county. It makes little sense to require a 60' collector
street in the town and a 50' collector for the county.
• Make sure the process and requirements are as straight-forward
as possible and can be handled administratively.
~ Build time limits into the codes so local governments
will have to act on requests for review within a
reasonable time.
~ List what information should be submitted by developers
and require that it be provided far enough before public
review that staff or a consultant can review it and
prepare a written recommendation to the review board.
Refer to Appendix E for examples.
~ Use illustrations, examples of standard forms, tables,
and graphics to demonstrate what you are striving for.
Figures 21-2, 3 and 4 are examples of a Subdivision
Pre-application Sketch Map, a Preliminary Plat and
Location Map, and a Final Plat; Figure 21-5 provides an
example of the type of letter of credit which may be
required to insure that necessary improvements are
provided by a developer. If included as examples in
your codes/regulations, communications will be simpli-
fied.
CONTROL OVER DEVELOPMENT IMPACTS
-—
Key areas of development concern for local governments will relate to
the community's goals. As an example, the following suggests the outlines
of standards and policies for several possible areas of community concern.
To control the location and nature of development, identify where growth
can best be accommodated and served at the least cost:
21
-------
FIGURE 21-2: SUBDIVISION PRE-APPLICATION SKETCH MAP
NJ
ro
PRE-APPLICATION
SKETCH MAP
Wonderland
Lake
Oo*CC
"M.'vi
"tw(Mur
-------
FIGURE 21-3: PRELIMINARY PLAT AND LOCATION MAP
-k.a .cSEBfW""'in
APPLERIDGE PARK
north o plonned residential development
PRELIMINARY PLAT 3 LOCATION MAP
* t«IT TUB * ¦*»« « Mh UllOi <© Tim CM/
I* wC ¦ *411' At. >b I C
-nvi r CV kTw*.M^c %e**4t'«b'« .»»| P*»r
TMK SCWIH Ut^C. ««* . •«* 'xaCTOi £> TMe^tCI
NO'.iW* iMCf'irr Mew.f mr'liw ( SDMMrr, TWydf
W"»'« «!»«. r»«i Kin« «oriM n» ~•«« wft *«* «¦>» •>.«
uatu m»*o *o i •«( iio nit lu t»« «e aiiuii cm*
It*; . tun , C.«jfc . •*<.! >0*4 >0. -TVKVKS TUiT
¦ AM. *?•«
cwmvk.• i tAo ^ »,twxp aMtnnicioj.ii^
C-t« * t-«l. <^MOCO
fcM&ilAit l RA*rttl L U*>*UZ~
e»e c»kvl
WKVtltX -r wtuiwcwt'
<<> oo
Huik. CCA K3C
n«rrK. vlg.kiMJCY' '*»
onk. i*»*. •. #5 ww TYr>cAi_i^r =A£W tfr f ,xx) n•
"V7U.L. A^.r» s d "7
-------
FIGURE 21-4: FINAL PLAT
APPLERIDGE PARK
A iUNOlVlSIOM OF A FANT Of TMf CITY Of NOULOCN, COUNTY Of NOULOfN. 8TATK Of COLON A 00
AMD ItINi A PANT OF TMC •WI/4,S«U4.lWI/4.0f 1CCTI0N IN, TIN .* 70• Of NTMP.tt.
i •»
rStZj'jr 1
FINAL PLAT EXAMPLE
-------
FIGURE 21-5: LETTER OF CREDIT
FORM - IRREVOCABLE LETTER OF CREDIT
City of Boulder
Municipal Building
1777 Broadway-
Boulder, Colorado 80302
Gentlemen:
We hereby authorize you to draw on us for the account of
up to an aggregate amount of $
(Subdivide r)
(Estimated cost of improvements) available by your drafts at sight for 100
percent invoice value accompanied by your signed statement that the above
is drawn in payment of street improvements covering
and storm drainage improvements covering
Drafts must be drawn and negotiated on or before eighteen months
from date. Each draft presented under this Letter of Credit must state
that it is drawn under Letter of Credit of
(Financial institution)
dated and the amount endorsed on this Letter of
(Date of Letter)
Credit.
We hereby agree with the drawers, endorsers, and bona fide holders
of all drafts drawn under and in compliance with the terms «f this credit
that such drafts will be duly honored upon presentation to the drawee.
Yours very truly,
(financial institution - if corporation,
executed by duly authorized officer and
attested by the secretary with the
corporate seal affixed)
25
-------
• Financially (public costs to serve)
• Social change to existing residents (won't dislodge)
• Environmentally (won't destroy critical areas)
• Economically (won't create threats to agricultural lands or
water or to tourist or recreation areas)
Consider incentives to encourage development where you want it and of the
type you want; e.g., extend trunk lines; plan schools, fire stations,
or parks; create bonding powers for lower finance rates or tax rebates for
low income units.
To control patterns of development, determine the pattern of development
desired; do not allow a pattern to just happen. Possible patterns are:
• Contiguous to existing centers
• Scattered throughout the county
• Corridor along existing roads
• Corridor along river valleys
Recognize that all but the contiguous pattern have adverse budget effects
for towns, schools and county governments. For example, they mean increased
road maintenance, sheriff's patrol, school bus mileage and public facili-
ties, loss of farm land, and increased potential for water pollution.
Once a desired pattern is settled on, use strategies, plans, controls,
and expenditures to make it a reality. Tools to achieve the desired
patterns are:
• Land use controls — only permit specific uses in certain areas
at desired densities.
• Annexation policies — if town and county share the same view-
point, require all urban type uses to annex to a community in
order to receive approval to develop or receive water and sewer
service.
To control the timing, quality and financing of services and facilities
required by development, phase growth of service and facilities so resi-
dents' needs can be provided in a timely manner.
Require improvements in new developments to be constructed to your standards
by the developer. For example, water and sewer lines, streets, and drainage
materials should be constructed to the community's standards for size and
location; regulate landscaping, open space, off-street parking, pedestrian
ways, area provided for schools, hydrants, street lighting, and signs.
Require new growth to pay for itself to the fullest extent possible.
Set charges to buy into existing systems or pay off required expansions.
In utilities these are commonly called plant investment fees (PIF). These
should cover capital costs (see Chapter 25 below on "Planning and Policies
for Physical Facilities").
If there are existing neighborhoods with a character or tradition the
residents wish to preserve, make sure your development controls reflect
this concern.
Publicize community goals, plans and policy. Provide potential developers
with written guidelines of what you want and how to process proposals.
(See Appendix E.)
Keep governmental review times to the minimum necessary.
Use the goals, plans and policies as a basis for all decisions. If you
differ from them in a recommendation, justify why it deviates. Legislative
26
-------
bodies and the public will soon accept the program and achievement of
the community's common goals will be simplified.
INTERGOVERNMENTAL COORDINATION
A coordinated effort by all government bodies concerned is essential if
the community is to effectively gain control of its future.
At the local level a united front is essential. Competition between
communities or urban and rural interests will jeopardize the area's
ability to deal with rapid growth. Support each other; don't be used
by outside interests playing one local government against the other.
Consistency and cooperation on development controls and standards are
important, or you will simply force the problems into the county or
other communities.
Isolate existing regional problems and try to identify ways to solve them
collectively, e.g., solid waste dumps operating poorly may be consolidated
into a single, economic scale to permit efficiency.
Cooperation and support from state and federal interests is also critical.
Local governments must make their collective interests and desires known
and be active in shaping decisions made at other levels of government that
will affect them.
LEGALITY OF DEVELOPMENT CONTROLS
To gain control over anticipated development, the community must develop
and adopt local development controls. Developing local codes and guidelines
is the biggest problem in areas of rapid growth. Either the community has
controls and the county doesn't, or both have controls but they are not
current with present development practice.
Existing state statutes can provide the community with standards to adopt
or use as guidelines. Even though most states have adopted either per-
missive or required legislation on zoning, comprehensive planning, sub-
division control, housing, planned unit developments, and other development
related ordinances, many city and county attorneys are not conscious of
trends in national legislation and court cases in land use and planning
areas.
The process of developing local controls should be clear and should reflect
the community goals.
• Begin with state statutes. Before drafting or copying model
laws to control development, refer to the state statutes. Know
what is possible. Do not just copy requirements to copy them.
Ask why it is required.
• Use state advisory agencies for technical support and review. State
planning agencies have developed model codes and can provide staff
to meet with local governments. They will not draft codes for local
governments but they can advise on what is needed.
• Carefully question advisors who say, "I think it is unconstitutional"
or "I don't think you can do that." If they can't produce a legal
case in your state and it seems like a good idea to you, try it.
Draft it carefully and with clear intent in mind.
0 Where possible, standardize regulations, standards, procedures
and guidelines with neighboring governmental agencies. Time,
cost, and confusion can be saved by bringing development require-
ments into conformity. The county and towns within the county
should decide what is appropriate and jointly draft their require-
ments accordingly.
• Build in time limits and due process. Impose time restrictions on
administrative reviews according to the staff's or consultant's
27
-------
ability to respond, to avoid added costs from unnecessary delays. If
a local staff doesn't exist, use a consultant to review development
proposals and charge the cost back against the applicant.
Make sure all interested agencies have an opportunity to review
development applications. School districts, state highway, local
power companies, special districts, (i.e., fire, water, sewer, etc.)
should be able to provide input on proposed development which may
affect them.
28
-------
NOTES
: !¦
ft'f ;•'!
-------
EMPLOYMENT PATTERNS FOR
SELECTED ENERGY PROJECTS
Substitute Coai Gasification
\&00
&
&
Electric Generating
Plant—2250 MW
Substitute Gasification
, Construction
Operations
200
Electric Generating
Plant—440 MW
Coal Export Mine
X
4 5
YEARS
Jo
• J9?r
-------
22 Assessing Details
of Likely Impacts
In Part I, Chapter 2 of this handbook, a routine is provided for roughly
estimating community impacts associated with various types of energy
development projects. It is aimed at quickly estimating a first approxi-
mation of impacts. After the community has become more involved and some
consensus developed regarding its goals and desires, the community's
actions should proceed with the benefit of more detailed information on
potential energy developments. This information should be compiled by the
personnel within the local government who must prepare plans for dealing
with the pending developments. This effort invariably is plagued by uncer-
tainty and lack of specific information. It is seldom possible to pin-
point when and where the development will occur, levels and timing of
employment, plant sizes and types of labor, where immigrants will locate,
and so forth. Indeed, this is the reason that the community's efforts to
cope with impacts must be viewed as an ongoing process of taking control
rather than a single, one-time project of simply enlarging the community's
capacity to provide expanded public services.
The primary purpose of finding out more detail of likely impacts is to
assist the community in its own detailed planning and to bring to light
strategies which might enhance the community's control over impacts. At
this stage of the process, much information has been gathered about existing
capacities and prospective problem areas. General information is suffic-
ient to allow the community to set broad priorities. However, before speci-
fic plans, capital programs and budgets can be adopted, the most up-to-
date and accurate data on possible energy developments must be collected.
EXCHANGE INFORMATION WITH THE ENERGY COMPANIES
Representatives of the energy companies who are planning work in the area
should be brought into the process early. In so doing, they will become
aware of the community's needs and problems.
# Actively seek to involve company representatives from each
company that may become an energy developer in the area.
• Try to assign such representatives some meaningful role in
the community growth management effort beyond that of simply
providing information.
Recognize that the companies' plans frequently change. Develop informal
contacts to keep up-to-date on changes. Avoid pressing for a single hard
and fast projection. Rather focus on gaining an understanding of the factors
being weighed by the company itself.
Attempt to inform the companies about the process of community development.
Point out the leadtimes required in expanding community facilities and
services.
Emphasize the benefits to the company of orderly community growth, thereby
offering an attractive living environment for the company's employees.
SEEK TO UNDERSTAND
THE ENERGY DEVELOPMENT PROCESS
Commitments by energy companies to multi-million dollar investments are
always contingent on many factors, some beyond the companies' control.
State and local permit requirements, federal subsidies, federal leases,
projected energy prices and other market conditions all play a vital role.
31
-------
For the type of developments likely to occur in your area, become familiar
with the steps required of the energy companies before construction can
begin.
• Plant siting permits
• Environmental impact statements
• Governmental plan approval
Learn as much as possible about the nature of the construction and opera-
tional phases. Where the development technology is not completely new,
observe how similar developments have occurred elsewhere.
• Obtain available studies.
• Contact local officials in other locations where similar operations
are underway.
• Talk with company representatives.
Attempt to obtain data on plant employment, wage scales, skill requirements,
attraction of support industries, plant working conditions, employment
turnover, employment stability, and other factors that may signal the level
and characteristics of a population influx that might accompany energy
development in a particular industry.
Where possible, correlate the above data with the scale of output. This
will allow you to assess the impacts that might arise under a variety of
assumptions about how large a development might occur in your area.
RECOGNIZE UNCERTAINTY
The energy companies are frequently unsure about just how development will
occur until shortly before the start of construction.
Avoid the temptation of delaying action until the future becomes clear.
This may be too late.
Identify points in the development process where the local community has
the opportunity to raise problems regarding its needs and to seek assurances
such needs are met before the development can continue.
To the extent possible, identify the range of impacts that might occur.
Also note the possibilities in timing. This is vital for developing the
community's plans and specific budget priorities.
ANALYZE IMPACTS
As you can see from the impact assessment routine provided in Part I,
Chapter 2 of this handbook, the community's standards and plans will pri-
marily dictate how the population growth translates into demands for com-
munity services. At this point, there should be a clearer picture of how
the community desires to handle the growth and development. Goals will have
been discussed in the community -involvement effort, and standards will have
been refined and developed. Use these to guide the assessment of impact.
The format provided in Chapter 2 may be used for the impact assessment, or
in some cases computer programs are available from state sources. Don't
hesitate to use more than one approach. Impact assessment is more of an
art than science, and using different approaches will help illustrate the
underlying uncertainty, and the potential different impacts that two dif-
ferent people might independently project.
Try to gain some understanding of the sensitivity of the projected needs
in various service categories (education, housing, medical services, etc.)
to different assumptions about the development. If plant location is not
tied down, what difference might it make if various alternative locations
are chosen? What if the development is delayed some period of time? How
sensitive are community impacts to plant size? Knowing some of these
32
-------
effects can allow the community to articulate and negotiate what type of
development is in its interest as opposed to other approaches which might
be particularly difficult to handle.
Be aware of the effects which growth and development will have on the
community's resource base. It is easy to see that certain sources of
tax revenue will expand. But this should not be overplayed. Dollar short-
falls are usually predictable in the early years of development, and some-
times can be projected for years. Rather, consider opportunities that
growth might bring for expanding non-tax revenues. Consider the opportuni-
ties for strengthening community organizations and their potential in
helping to meet community needs. Consider the energy companies and their
personnel and management expertise that might help serve the community.
Consider state level offices aimed at assisting impacted communities.
Identify federal programs for which an impacted area might be eligible.
Look to private companies that might do business, and serve the community,
in a growing area.
DEVELOP IMPACT PROJECTIONS
An idea of the anticipated impact is a necessary input to the subsequent
planning processes (see following chapters on land use, facility and
social planning). Planners in different functional areas should not be
left to make their own assumptions about population growth, impact, timing,
wage levels, social characteristics, etc. These should be consistent and
understood by all participants before planning begins. Develop impact pro-
jections by assigning government staff (those who will be doing the plans),
as a group to use the efforts of the citizen's committees, and the
preceding work suggested in this chapter, to produce the necessary
planning assumptions. The necessary data is identified in the chapters
on planning that follow in this section.
Do not try for precision, but rather describe the most likely general
scenario. Remember this is for planning purposes, and the most rigorous
techniques cannot overcome the inherent uncertainty.
Put the various elements of projection into table form. That is, list
population size by year from the date construction begins (year 0),
amount of residential land, amount of park land, etc. Other items, such
as number of housing units needed, may be included. See Table 22-1 for a
sample layout.
33
-------
TABLE 22-1: EXAMPLE OF PLANNING PROJECTIONS
PROJECTED POPULATION' AND
LANO USE DEMAND
1974 - 1990
LONGMONT, COLORADO
1974
1975
1976
1977
1978
1979
1980
1985
1990
(Yearly)
Increase
2797
3105
1983
2110
2246
2395
2552
9410
LI, 490
Totals
32,863
35,968
37,951
40,061
42,307
44,702
47,254
56 ,6 6 4
58,154
LAND USE
DEMAND
(In Acres)
1974
1975
1976
1977
1978
1979
1980
1985
1990
Total Land
Demand
Residential
95
165
106
112
120
127
136
502
604
1967
Commercial
11
18
12
12
13
14
16
55
68
219
Industrial
15
16
11
12
12
13
14
50
62
205
Parks
11
19
12
13
14
14
16
58
70
227
Streets and
Other Public
87
150
96
102
108
117
123
454
556
1793
Yearly Demand
219
368
237
251
267
285
305
1119
1360
4411
Existing
Developed Area
Jan. 1. 1974
3701
Projected Total
Developed Acres
3920
4288
4525
4776
5043
5328
5633
6752
8112
if Source: The Institute of Regional Research and Planning, Ft. Collins, Colo.
34
-------
NOTES
-------
' * '¦ * : •" - •. » '
j&tu «a>fatt>»*fca«aWI '¦*
36
-------
23 Developing Liaisons
Whether your community is a town or county, actions of neighboring government
units are going to affect you. For this reason, it is necessary to participate
in regional decisions of the Council of Governments or regional planning
agency, neighboring communities, and county, state and federal agencies.
The primary requirement is for the community to make its presence known and
to be active in shaping decisions.
COMMUNICATE GOALS AND PLANS
Annual reviews will clarify policies and direction, and promote coordinated
planning among neighboring government bodies.
The administration, advisory boards, and Council or Commission should
annually review goals, direction, and priorities, and their relationships
to regional concerns.
Areas of common regional concern can be considered at annual meetings of
the City Council and administrative staff with those of neighboring towns.
The City Council and administrative staff should meet with County Commissioners
and their key staff to review directions for the area. Request that the Com-
missioners support the community's goals in their actions on zoning, subdivision
control, and control of the creation or expansion of special water and sewer
districts.
Be clear as to where you encourage growth. Indicate publicly where services
and utilities are available, and where and when extensions are proposed.
COORDINATE POLICIES
Wherever possible, reach out to solve past problems with other governments,
developments or special districts
Develop mutually acceptable service boundaries with existing special districts.
Consider extending service to unincorporated areas having water or sewage
problems, if such extensions will alleviate an existing problem and preclude
the need for new districts.
PARTICIPATION IN THE REGION
The city must make its presence known and be active in shaping area deci-
sions .
Its representative should:
• Attend all meetings and take a position with these groups whenever an
item requires comment.
• Comment on how items might affect the local Master Plan and the County's
or region's goals and policies.
• Report monthly to the administration, advisory boards, and City Council.
Use a memo of information and, where necessary, request a position state-
ment for guidance.
Replace representatives whenever more than two meetings are missed. Have
alternates.
37
-------
CAi«i«t5
l»«C
-------
24 Land Use Planning
Begin with nature. Assess your environmental setting. Where are hazardous
areas or areas of critical environmental control? This will get you into
your local economy as well. What areas are critical to ranching and farming?
Be concerned about your arrangement of land uses. Assume the scale of new
development is going to be much greater than anything you've had previously.
Be concerned about the details, e.g., landscaping, traffic, pedestrian ways,
densities related to building type, and convenience. Build in the amenities;
don't try to add them later. Remember you're planning for people.
You will determine the character of your community by your initial decisions
(or lack of them) for the next 20-30 years. Once built, subdivisions,
streets, business areas, parks, schools, or industrial land uses are not
going to radically change or relocate. A builder's equipment yard or a
mobile home park will continue unless a phasing out plan was committed
before the use began.
DEVELOP A BASE OF INFORMATION
You will need to collect available information about your community; check
with state and local agencies and universities. In some cases, you will
have to provide the information yourself. You should present the information
both in written and map form. A base map, with topography, natural features
and man-made features (such as roads and buildings) is essential. Develop
a set of overlay maps containing information listed in this chapter. These
maps will make it easier to consider all the information together. Make
sure the maps can be reproduced.
Identify environmental resources, including hazard areas and critical areas.
See Figure 24-1.
Hazard areas include:
• Mined out land subject to settling
• Flood plains
• Unstable soils
• Unstable or steep slopes
• Other
Critical areas include:
• Aquifer recharge areas
• Lakes, streams, reservoirs
• Scenic vistas
• Wildlife habitat areas
• Historical sites
• Critical agriculture lands, e.g., bottom land that is needed
• Valuable groves of trees
• Irrigated farmland
• Truck farming lands
• Mineral resources including gravel if limited supplies
• Others
39
-------
FIGURE 24-1: BASE MAP WITH OVERLAYS
Overlay Method
OVERLAY 3
DESIGNATES
MUDSLIDE AREA
OVERLAY 1
DESIGNATES
FLOOD PLAIN
OVERLAY 2
DESIGNATES
AGRICULTURAL LANDS
-------
PLAN SERVICE AREAS
Service areas define areas where growth is projected to occur and services
will be provided. These areas define the area of responsibility or area of
domain for planning and service purposes. Service areas are necessary to
plan future land use needs and facilities which will be required. City
limits lines are not useful for this purpose because they are subject to
change. Urban service areas will avoid conflicts regarding who will serve
developments and will permit long range planning. Cities and the county
should work together in this effort. Coordinate this effort with utility
planning described in Chapter 25 on "Planning Physical Facilities."
Consider the following factors in delineating service area boundaries:
• Areas of least cost for sewer, water and drainage facilities;
• Local desires as to the size and character of the community;
• The areas in which planning decisions are being made;
• Ability and willingness to provide or make available adequate and eco-
nomical, water, sewer, police and fire protection and other urban services;
• Housing needs by type, quantity and impact expected by the projected
population growth;
O School needs and impact;
• Natural barriers such as critical and hazardous areas and man-made
barriers to economical expansion of urban areas or service within urban
areas;
• Eliminating or controlling further urbanization in areas where such
urbanization would be hazardous because of geological, climatic or topo-
graphic conditions or to preserve natural open space areas; and
• Regional goals to preserve the agricultural economy by preserving prime
agricultural land.
The size of the service area will vary with each community and in some cases,
where growth is not anticipated, it may be determined on the basis of the
location of existing facilities. A number of services areas may be identi-
fied in a county.
Once the area has been defined, the core city in the service area must
develop -- and the county approve — a comprehensive land use plan, service
plans indicating location and level of service, service standards, and
priorities for extension or phasing of services, and a capital improvements
plan. Where other communities or districts are contained in the service area,
they too must be involved in the creation and review of the plans. It is
unacceptable for the core city to unilaterally develop the plans and bear
the cost and burden of doing so.
Figure 24-2 illustrates the use of service areas in phasing of development,
based upon environmental constraints and land use needs.
PLAN LAND USES
Within the service area, plan locations for special land uses, i.e., residential,
commercial, industrial and public land uses and needs in order that physical
planning of services can be done efficiently. Unless you know what areas will
be served and levels of service that are needed, you may be forced into need-
less and wasteful oversizing of facilities such as streets or pipes. From
population and land use projections and a map of land use, you will know
about how much land you will need. The next task is to determine where
various land uses should be located. Figure 24-3 gives you an example of a
land use plan.
41
-------
FIGURE 24-2: SERVICE AREA MAP
US 34
primary
development
THIS AREA INCLUDES THE EXISTING
CITY LIMITS AND SURROUNDING
AREAS WHERE URBAN SERVICES
ARE EITHER EXISTING OR
AVAILABLE WITH MINIMUM
EXPENDITURES BY THE CITY.
THE PRIMARY DEVELOPMENT
AREA I? DEVELOPED AT CURRENT
DENSITIES CAN ACCOMODATE A
POPULATION OP 51,900.
area of critical
environmental concern
THIS AREA INCLUDES THOSE LANDS NEAR THE MAJOR
LAKES AND RESERVOIRS IN THE LOVELAND REGION.
OF PARTICULAR CONCERN ARE THE BOYD LAKE AND
HORSESHOE LAKE AREA AND THE BOEDECKER LAKE
AREA. WHILE DEVELOPMENT IS EXPECTED TO OCCUR
IN THESE AREAS, IT IS ESSENTIAL THAT DETAIL
STUDIES BE MADE TO DETERMINE WHICH PORTIONS
SHOULD REMAIN NATURAL, BE DEVELOPED FOR PARKS,
OR BE SUITABLE FOR PRIVATE DEVELOPMENT. LAND-
OWNERS, DITCH COMPANIES, STATE, COUNTY AND CITY
SHOULD WORK TOGETHER TO DEVELOP A PLAN OF ACTION,
secondary
/ development
THIS AREA IS CONTIGUOUS TO
THE PRIMARY DEVELOPMENT AREA
AND CAN BE DEVELOPED IF URBAN
SERVICES ARE EXTENDED INTO THE
AREA. THE DEVELOPER MAY BE
REQUIRED TO FINANCE OFF-SITE
IMPROVEMENTS IF DEVELOPMENT
PROCEEDS BEFORE CITY IS PREPARED
TO EXTEND SERVICES. THE
SECONDARY DEVELOPMENT AREA CAN
ACCOMODATE A POPULATION OF
27,680.
open space
future-potential
DEVELOPMENT OF THIS AREA WILL
REQUIRE MAJOR PUBLIC EXPENDITURE
IF SERVICES ARE PROVIDED BY
LOVELAND. ONLY IF A PROPOSAL
FOR DEVELOPMENT INCLUDES A TOTAL
DEVELOPMENT OF SERVICES WITHOUT
EXPENDITURES BY THE CITY OF
LOVELAND SHOULD IT BE CONSIDERED.
THIS AREA DELINEATES THE BIG
THOMPSON RIVER FLOOD WAY AND
THE AREAS WHERE MINERAL DEPOSITS
MAY BE LOCATED. DETAIL STUDIES
OF THIS AREA SHOULD BE UNDER-
TAKEN TO DETERMINE THE EXTENT
OF FLOOD HAZARDS, FORMULATE
POLICIES FOR REGULATION OF
LAND USE, AND PRESERVATION OF
NATURAL AREAS.
PHASING OF DEVELOPMENT
Loveland Master Plan 1976
42
-------
YA
FIGURE 24-3: LAND USE MAP
LEGEND
Proposed Project Boundry
—— Major Road
Railroad Spur
Expressway Interchange and R.O.W.
Powerline R.O.W.
Residential Area of Low Density
Residential Area of Medium
and High Density
Major Educational Facilities
Major Community Facilities
New Community Center
and Sub-Center
Y/X/'/X Industrial Development
| 1 Major Open Space and Recreation
•J)
43
16
-------
Be sensitive to environmental constraints. Evaluate which areas in your
* community should be preserved or upgraded. Are there historic resources
which should be preserved? Are there natural or man-made features which
identify the community or which are of symbolic value?
Determine the location and types of residential development that is needed.
Specify densities of residential areas. Generally, locate higher density
areas near community facilities and larger roads. Consider a mix of housing
types in newly developing areas to produce an interesting living environment
Make efforts to preserve existing neighborhoods and upgrade these areas
where needed. Wherever possible, buffer residential neighborhoods from land
uses which will adversely affect living environments. Encourage housing
which will meet the needs of people of all ages and income levels.
Convenience or highway business uses will need to be permitted outside the
central area. Businesses which use a good deal of space such as lumber
yards, farm machinery sales and auto dealers will require locations outside
the downtown. The nature of these permitted uses should be limited to
avoid other retail uses spreading into the area.
The market will exist, so the stores aome in. Make sure they come in on
your terms. Don't be browbeaten into changing your goals if you have suffi-
cient room and access to accommodate new stores in your downtown.
Over fifty percent of your population doesn't drive cars (elderly, youth,
non-drivers, or handicapped). Consider this in locating uses and in develop
ing some type of program to serve these people. A compact community where
people can walk or ride bikes from their homes is desirable. It will also
make it easier to provide public transportation if needed.
Include human resource planning efforts. Your physical systems must, first
of all, serve people:
• Elderly
• Young people
• Handicapped
• Physically and mentally ill
• People on welfare
• Cultural groups
• Others
See Chapter 26 in this Part III entitled "Planning and Policies for Social
Needs."
Randomly located commercial uses can destroy the health of your downtown.
Most of the impacted communities will continue to be small enough to find
a central business area sufficient for community and regional retail service
• Maintaining a central business area is highly desirable from standpoints
of community investment, social values, tax base, transportation, and
community character.
• Outlying shopping centers or sites for discount stores will be sought
but aren't needed. Such uses can be integrated into most downtowns if
local governments require it.
Local government and downtown business and property owners will have to make
aggressive commitments to keep the area responsive to new needs such as con-
venient parking and attractive facilities or pressure for permitting new
shopping areas will become overwhelming.
Develop a monitoring system for uses and how they develop. Update your
information sources continually to keep pace with changes. Spot issues
and adjust quickly.
44
-------
NOTES
-------
46
-------
25 Planning and Policies
for Physical Facilities
Capital facilities represent a community's largest public financial commit-
ment. The costs for construction of water and sanitation facilities, schools,
parks, cultural and recreation facilities, streets and roads, meeting halls,
administrative buildings, and the various related equipment and vehicles
typically run into the thousands of dollars for each household in the com-
munity. Moreover, these facilities give rise to perpetual annual costs for
staff, operating supplies, maintenance, and the like. These annual costs,
which comprise the majority of each year's operating budget, are in a very
direct way predetermined by the community's decisions in the area of capital
facilities.
For these major financial commitments to be acceptable to the community, it
is imperative that a broad range of community objectives be served by the
investments made. Citizens must be served efficiently. Costs must be
allocated equitably. The desired level of service must be provided in the
various different geographical areas of the community. In a broader sense,
public facilities affect the nature and shape of the community and these
effects should also serve the community's objectives. The location of water
and sewer lines will strongly influence where new growth will occur. This
in turn may affect where street improvements and new parks are needed.
Public investments in an aging downtown may stimulate parallel private efforts
aimed toward revitalization.
Frequently, communities fail to consider all the facets of getting the maxi-
mum public benefit from their capital investments. This is particularly
true in rapidly growing communities where there are pressing demands to act
quickly. Decisions are made without due regard for the long term suitability
of facility locations, capacities, designs, service areas, and operating and
maintenance requirements. Efficiency is sacrificed, inequitable cost burdens
are imposed on citizen groups, facilities are deemed inadequate and poorly
managed, credibility is lost, and eventually serious political issues can
arise.
It is difficult to correct such mistakes after the fact because capital
facilities are not easily modified to adjust to new and perhaps unforeseen
circumstances. Once facilities are built, they become fixtures; locations,
capacities, and designs are not readily changed, nor are financing and manage-
ment policies.
These characteristics of public capital facilities strongly indicate the
need for careful planning and a logical approach to making these investment
decisions. Planning and policies for physical facilities are the subjects
of this chapter. Facility construction and facility management are equally
important areas which are discussed in separate chapters below.
Note that the guidelines and basic principles presented in this chapter are
valid for all types of facilities planning. However, because utility faci-
lities represent a critical planning area to serve added population, speci-
fic recommendations will focus on utility facilities planning. Keep in mind
that the general principals discussed are applicable to the range of facilities
you will need to plan.
GROUND RULES FOR FACILITIES PLANNING
The local government should assume primary responsibility for accomplishing
the work items suggested below. Communities with management/municipal
employees in these areas should assign this work to them. Otherwise, seek
outside assistance from consultants or other available professionals.
Determine institutional alternatives. Think through the particular organiza-
tions who might provide each type of public facility. Questions of using
47
-------
non-governmental organizations, special districts, or other quasi-governmental
forms (authorities, government contracts, regional agencies) should be
settled before detailed planning is begun.
Do not allow present deficiencies in physical systems to compound with the
occurance of gr-owth. Allow growth only when and. where provisions have been
made so that physical facilities can be developed to the community's standards.
This will require using the community's control over the development process
to specify the developer's responsibilities, as well as decisions by the com-
munity as to w'here it (I) wants growth to occur, and (2) can make its required
investments. If growth is allowed without considering the needed physical
facilities, the burden will later fall upon the community as a whole.
START WITH THE OVERALL PICTURE
Analyze the community's goals and plans to determine which areas might be
affected by development and financing of upgraded or expanded physical faci-
lities. Consider the implications of facilities development and their rela-
tionship to other aspects of the community.
• How might facilities development encourage or retard overall growth?
• How will placement of facilities influence the direction of growth?
• How might public investment in parks, recreational, cultural, or admini-
strative facilities attract further private investment? You might re-
vitalizae a declining core area this way.
• How might upgrading local streets encourage neighborhood improvements?
• How do various methods of financing public facilities (like service charges
and tap fees) affect the use of air, water and land resources?
• How can various financing schemes distribute the cost burden among citizens?
• How can cultural and recreational facilities help promote a community
'identity?
• Whenever possible, identify the relationships of physical facilities to
the comprehensive community development plans.
Meet with representatives of other nearby or overlapping governmentsl units
and regional agencies to:
• Gain an understanding of how the community's plans might affect and be
affected by the programs and goals of neighboring populations.
• Begin to inform neighboring governments of the community's approach to
facilities planning. (Refer to Chapter 23 above, "Developing Liaisons.")
UTILITY SERVICE AREA
Plan utilities (water and wastewater systems) and road systems to serve a
particular geographical service area (see Chapter 24) where the community
is willing to extend services to accommodate future development.
Service area designation is not intended to correspond directly to projected
growth (i.e., working from a projection of 500 new families to develop a
service area for exactly 500 new homes). Rather, the purpose of service
area planning is to identify and map out areas in which future growth might
be accommodated for the next 20 years. Like land use planning, service
area planning is a comprehensive long range planning activity, probably
spurred by anticipation of growth, but extending beyond specific near term
projected needs.
Base service area designation on given areas* multiple service requirements
and natural topographical features, as opposed to somewhat arbitrary town
limits.
48
-------
Coordinate service planning and the community's land use plan. (Refer to
the previous chapter on land use planning.) Check the two plans against
one another for feasibility, possible conflicts, and costs. Take into con-
sideration:
• The area in which planning decisions are being made and where local
services will be required.
• The proposed location of various types of land uses and activities that
will need utility services.
• The density or intensity of existing and proposed uses.
• Topographical barriers to service: hazardous areas (flood plains, un-
stable soils, steep slopes) and critical areas (prime farmland, unique
natural areas, recreation areas) where services should not or cannot be
provided.
• The phasing of growth — that is, the logical sequence of development in
extending services the community wishes to follow.
Base utility service plan on a minimum 20 year projection of growth. Logi-
cal extensions, pipe size, treatment facility capacity, and location should
all be part of the utility service master plan. Elements of the system can
occur in increments. These should be included as part of a five year capital
improvement program. (Refer to the chapter on capital improvement program-
ming later in this Part III.)
INVENTORY OF EXISTING FACILITIES
Do a detailed inventory and evaluation of existing physical facilities,
identifying:
• Facilities now in place
• Physical characteristics and capacities
• Management structure
• Financial status and support methods
• Citizen use characteristics
• Contractual arrangements
Record this information on maps as shown in Figure 2 5-1. Information should
also be recorded in suitable forms or tables.
Refer to the previous chapter in the community management process, "Getting
Control," where service level standards are discussed. At this sfcage, you
may have to make yoyr standards more specific and refined in detail regard-
ing:
• Sizing capacities
• Locations
• Design considerations
• Legal aspects
• Financing
Compare the status of existing facilities with service level standards to
identify deficiencies and needs.
I so late existing problems in order to establish special programs to correct
them. This may take several years and could require the use of general tax
revenues. The important point is not to add to existing deficiencies by
allowing growth to compound problems of below standard service facilities.
49
-------
COMMUNITY FACILITIES PLAN
CHEYENNE, WYOMING REGION
legend
existing future
ELEMENTARY SCHOOLS # O
JR. HIGH SCHOOLS ¦ Q
SR. HIGH SCHOOLS ~ A
PLAYGROUNDS ^ O
PLAYFIELDS ¦ ~
MAJOR PARKS ~ A
FIRE STATIONS • O
LIBRARIES 9 O
-------
FUNCTIONAL PLANS
Use the previously developed data and policies regarding the service area,
physical standards, existing inventories, and land use, to develop functional
faciltiies plans.
Based on an understanding of community needs for physical facilities, con-
sider alternative approaches for progressing toward desired service level
standards.
When plans are developed to address deficiencies in existing public facilites,
take care that the community's broad goals and objectives are continually
borne in mind.
Cost effectiveness should be of major importance at this stage.
\
Within the geographical area to be served, plan utility and road networks
that are complementary to planned land uses.
At this stage, details are important, although some measure of flexibility
must be maintained to meet future contingencies. Facility capacities, net-
work sizes, locations, phasing and other engineering specifications should
be addressed.
Use maps to graphically show these plans. Plans should also be expressed in
written or table form.
At this point keep broad considerations in mind. In planning wastewater
systems, for instance:
• Natural drainage is greatly preferred to avoid the need to purchase and
operate costly pump systems. The treatment facilities should be located
to serve the area and yet not become a problem due to their proximity
to residential concentrations.
• Development of collection systems should be phased to avoid investments
lying unused waiting for additional hookups.
• Location of trunk lines is a key to where new subdivisions or other urban
uses can occur. By controlling where trunk lines are placed, and thus
where urban uses are encouraged, a community has some control over where
it will have to provide other services as well.
• When facilities are constructed in the lower reaches of a drainage basin,
flooding is a concern. Such occurrances can create major hardships and
costs if not considered initially in the treatment facilities location.
Facility decisions are areas of concern which the engineers typically handle
for a community. However, the related land use issues are frequently over-
looked. It will be up to the community to ensure that the broader issues
are raised and addressed.
Develop plans for adding capital facilities in each functional area (parks,
education, health, utilities, etc.). These plans should then be used as a
basic source of information in development of:
• Total capital improvements program
• Capital budgets
• Annual budgets in the individual agencies responsible for each program
FINANCIAL PLANNING FOR CAPITAL FACILITIES
No single approach to raising the capital funds for the development of
physical facilities is best for all communities. Tailor policies to fit
your specific goals and capabilities. Be especially careful to avoid view-
ing the planning exercise as futile due to lack of immediately visible capi-
tal funds. Having plans gives the community direction and can give rise to
financing methods that might not be thought of otherwise.
51
-------
Consider the following principles as guidelines for financing capital faci-
lities. Local conditions may suggest modifications.
Adopt financial policies which:
• Ensure that physical systems can continually expand as required to serve
new growth.
• Are equitable and do not impose the burden of providing new capacity onto
the existing population.
• Will produce sufficient funding for ongoing maintenance and operations
costs.
Operate revenue-producing utilities like a business: Create a structure of
service charges and tap fees that will fully cover costs of operating and
future plant investments.
• Ideally, service charges will cover all operating and maintenance costs.
This includes an amount for plant depreciation and possibly an amount to
transfer to the general fund to help pay administrative overhead costs.
• Base tap fees on the best estimate of the pro rata share of the utility
capital investment required to serve each customer (tap).
Take great care when you finance utility expansions with bonds which you plan
to retire from future tap fee revenue. In the event growth does not occur
as scheduled, bond repayment may substantially burden the existing populace.
Identify and account for this ultimate risk prior to a decision to expand
debt financing.
Designate special facilities required to provide services to new developments
as the developer's responsibility.
0 If the community has set standards for utility services, streets, drainage
facilities, schools, parks, fire protection, etc., it should not allow
development to take place without assurance that these facilities will be
provided, at a level equal to community standards. Otherwise, deficiencies
in these facilities will compound with growth.
• Use subdivision regulations to specify the developer's responsibility.
Include streets, curbs and gutters, internal/lateral water and sewage
lines, open space/park land, etc.
• In some cases, where facilities must be constructed by a public agency,
assess fees covering a pro rata cost attributable to the developer,
e.g., dedication fees for park land, schools, and fire protection.
Require utility extensions to be financed by the developer following the
concept defined in the service area map. Prepare and publish a utility
extension policy. See Appendix F for an example. The policy should contain
the following provisions.
• All extensions of lines past undeveloped areas to a development should be
financed by the new development. Some of these costs can be paid back
to the developer in the future as intervening property is developed and
attached to the system.
0 The community should not be burdened with a commitment to provide such
lines on request. Public financing of major extensions on demand to
serve new development negates the community's ability to plan for logi-
cal expenditures and extensions of its system.
• Out-of-phase growth ties up major amounts of community funds in non-
productive lines, in the ground, while other areas might be in need of
funds for system upgrading, or simply for providing basic services.
Whenever possible, use revenue bonds to finance revenue-producing utility
improvements.
52
-------
• If the community must borrow money to finance revenue-producing utility
improvements, it is highly desirable to protect its limited general
obligation bonding capacity to use where revenue bonding is not feasible,
(e.g., for parks, libraries, offices, police facilities, or fire stations).
Any revenue-generating operation should borrow money based on the ability
of the system to retire the debt.
• There are some limitations on this method of financing, i.e., cases where
the cost of the system exceeds its ability to generate revenue, or where
general obligation bonds are not limited by state statute. Even in these
cases, raise the maximum amount of reasonable revenues to retire at least
a portion of the debt.
Consider special assessment districts for the construction of facility
improvements which benefit specific property owners in the community.
• Most commonly, this applies to local streets, curbs, gutters, and
storm drainage facilities.
• This financing method can provide for projects for which no general com-
munity funding is available, although it is often helpful for the govern-
ment to assist with some "seed money."
• Substantial negative public reaction can result if projects are not well-
planned, based on public participation, and well-executed in terms of
assessments and construction. Obtain substantial assistance from fiscal
advisors who would handle bond requirements and engineering consultants
who can administer project planning and construction. These costs can
usually be included in the overall project costs assigned to the dis-
trict and its property owners.
53
-------
-------
26 Planning and Policies
For Social Needs
In small, relatively stable communities, community organizations, churches,
and neighbors usually provide the basic "social services" that residents
require. The need for planning and management for social systems often
does not exist. But with the influx of new development-related population
-- many of whom will be from urban areas — some new needs and problems
that existing social service providers may be ill-equipped to handle may
arise. Former means of "caring for one's neighbor" will be less effective
in changing neighborhoods where many people are unused to a small town's
neighborly ways.
In order to deal with social problems in an effective way and to provide
for the needs of new population, a community must plan carefully for how
it will meet anticipated social needs. Comprehensive social service plan-
ning, as discussed below, is a recommended way to take charge of social
service programs to prevent problems from taking over the community.
Well-thought-out social service planning can ease the transition of exis-
ting residents to a larger community population, and of new residents to
a less urban way of life.
GUIDELINES
In planning for social services, consider needs as what to focus on, and
organizations as the means of fulfilling these needs.
In most small communities, existing organizations can serve most newly
defined needs if properly advised and supported.
Exercise special care not to proliferate social service agencies, but
rather create multi-purpose organizations whenever possible to reduce
overhead. Emphasize coordination and cooperation between organizations
which may be aimed at the same need or population group, and the use of
volunteers rather than large paid staffs.
SOCIAL AND COMMUNITY SERVICE COUNCIL
If the community does not have a Social and Community Service Council,
the conwunity Resources and Service Task Force should reconvene to organize
such a group.
Membership should represent existing social service organizations, profes-
sionals (e.g., university people) knowledgeable about social service needs
and planning, and the existing or potential client population — e.g., low
income people, mothers needing day care, young people, senior citizens.
The primary responsibilities of the Social and Community Service Council
will be:
• Developing a profile of existing and potential needs in terms of
their nature, severity, and population groups most affected.
• Identifying how these needs are presently being met, if there are
gaps, and if the service offered can be readily expanded under its
present organizer.
• Considering alternative ways to meet social service needs.
• Developing service level standards describing the general
level of social services the community wishes to see provided.
• Developing a comprehensive social service plan.
55
-------
• Investigating funding sources.
• Developing an ongoing process of keeping on top of social service
needs and helping existing programs evaluate problems and needs
in their specific areas.
• Filling the gaps or the marginal service areas, but avoiding over-
lap. Do not dismiss volunteer efforts if a group is desirous of con-
tinuing its efforts just because they do not want to be part of a
highly structured effort or part of the local government.
TASK FORCE INPUT
Previous efforts by the community Resource and Services Task Force can
provide the starting point for the Council. Council work should start
by reviewing the needs assessment, existing organizations directory,
evaluation of trends, and recommendations prepared by the task force.
At least one task force member will likely be on the council. If not,
the Council should meet with some or all task force members to exchange
ideas.
POTENTIAL PROBLEMS RELATED TO GROWTH
In addition to the Task Force Evaluation, the Council should give special
attention to specific social service needs which experience has shown to
be key service areas in situations of energy-induced growth.
• Recreation facilities and programs
• Day care
• Housing (see Chapter 31 below for a discussion of the housing
problem)
• Social counseling and referral
~ Mental health
~ Crisis counseling
~ Marriage and juvenile counseling
~ Employment/vocational counseling
• Programs for handicapped and elderly
• Criminal justice services — better police services and
crime prevention programs
• Alcoholism counseling
• Welfare programs
ANALYZE EXISTING AND POTENTIAL PROBLEMS
AND CONSIDER ALTERNATIVE SOLUTIONS
Based on the task force report and the previous key items, develop an
overview of problems and concerns related to social service needs.
Consider:
• The severity of the problem or need.
• The nature and size of the affected population group.
• What already exists to combat the problem or meet the need.
56
-------
For each general problem area, consider possible solutions.
• Make sure you consider all feasible alternatives — don't
just settle on the first solution that comes to mind.
• Look for ways to integrate programs — e.g., a multi-purpose
recreational facility to serve the needs of seniors and young
people, as well as the rest of the community; a day care
program which might make use of senior or youth volunteers.
• Refer to the directory of existing services compiled by the
task force. Be inventive as to how existing organizations
might respond to new needs.
0 Consider regional coordination to provide certain services or
university programs such as the University of Wyoming's social
assistance program. What already exists in this area? Use
liaisons (see Chapter 23, "Developing Liaisons") to investigate
possible regional service programs.
DEVELOP A COMPREHENSIVE SOCIAL SERVICE PLAN
The purpose of a comprehensive plan is not to detail each individual
program but to provide coordination and an umbrella to guide program
areas, the general planning direction the community wishes to take, and
the types of programs or facilities the community wishes to develop.
The plan is an extension of goals developed in the community involvement
phase, and must be geared to the community's particular nature and needs.
Elements of a comprehensive social service plan might be:
9 A five year schedule for the addition or expansion of programs
and facilities.
« Recommendations for multi-purpose facilities development.
0 Guidelines for social service agencies or volunteer groups to
utilize — e.g., a desire to gear programs toward minority
families, or to include members of the client population on
organization boards.
Use the plan as a guide whenever new issues surface or you begin to detail
individual elements. Constantly test against its direction to see if the
goals are being furthered by a proposal. The plan should be updated
annually, particularly during the development stages of the energy project,
when needs will continually change.
designing a program
Individual agencies will be responsible for detailed program design. Their
activities should be coordinated through the Social and Community Services
Council to avoid duplicated efforts and maximize a program's potential for
obtaining grant assistance.
Recommended components of a social service program design (useful for
community understanding and for grant proposals) are:
•
Program description
•
Need for program
•
Program goals - be clear and specific,
not lofty
•
Expected timetable and organization of
responsibilities
staff/volunteer
•
Significance of program
57
-------
• Description of program staff and/or organization sponsoring
the program
• Budget
SEEKING FUNDING
The Social and Community Service Council should investigate major sources
of financial assistance. Depending on the desires of participating agen-
cies and the community, the Council may want to coordinate all grant
requests, or may simply advise individual agencies seeking assistance.
When considering public resources and programs, utilize technical resource
people from regional HEW offices, the university, and state departments
of social services. Pay particular attention to the flexibility provided
to states and local governments in program selection under the 1975
Title XX amendment to the Social Security Act. (A good pamphlet is
entitled, "A Decisionmaker's Guide to Program Coordination and Title XX",
prepared by HEW Region X, March 1975.)
There are also many private sources of social service program funds.
Consult publications such as The Foundation Directory and The Annual
Register of Grant Support to get an idea of what is available. Local
university people may also be very helpful in advising local organizations
on obtaining private grants.
COOPERATION WITH OTHER AGENCIES
It is essential that the Council exchange information with the other
community groups involved in housing, physical facilities planning,
schools, health care, and so forth, to ensure that a coordinated, coopera-
tive effort is undertaken which will benefit the community as a whole.
All service agencies should develop a policy of having representatives
from the client groups they serve on their boards or advisory bodies to
receive direct input of service effectiveness and efficiency. In
addition, annually or more often, client evaluations should be conducted.
The Social and Community Services Council should place heavy emphasis
on assisting the personnel and volunteers of service agencies in developing
educational programs they view as needed; sponsoring workshops and training
sessions in the community on a monthly basis dealing with the general
areas of management, budgeting, resource securing techniques, and specific
areas of the various programs such as counselling, therapy, etc. The
professionals provide the guidance and training and the Service Council
the logistics and support.
58
-------
.
-------
Tax Leadtime Problem for
Capital Intensive Energy
Development
(Tri-County Oil Shale Region)
Total
Revenues
Total
.Needs
I i i i i ' ¦ i i —* i i
0123456789 10 YEAR
YEAR PROM START OF CONSTRUCTION
Source: Briscoe, Maphis, Murray & Lamont, Inc., Tax Lead Time Study, State
of Colorado, 1974
60
-------
27 Fiscal Planning and Policies
Financial planning involves (1) identifying dollar needs and availability
within a five or six year future, and (2) identifying revenue alternatives.
These are planning projections and not meant to be used in formulating
budgets, but rather to light the road ahead. This information will give
you guidance in considering long term physical facility commitments,
evaluating rate structures, adopting new taxes, borrowing funds, and
seeking intergovernmental assistance.
FORECASTING REVENUES AND EXPENDITURES
Develop five-year forecasts for revenue and expenditures. Use these
forecasts as a guide when evaluating long-range financial commitments.
See Tables 27-1 and 2 for how this information might be organized.
Don't get discouraged or "bogged down" with questions like, "How should
I know what is going to happen?" The important thing is to begin. No
one is in a better position to accurately forecast municipal expendi-
tures and revenues than municipal employees.
A practical approach is for one person (city manager/finance director/
town clerk) to do the forecasts and let department staff react to them.
Be explicit and consistent with assumptions. Coordinate your assumptions
with those being used in land use and facility planning.
Don't worry too much about accuracy the first time through; accuracy
will improve with time and experience.
Do not underestimate the importance of logic and common sense. Although
a number of complicated analytical techniques are used for forecasting,
the most important ingredient is a thorough knowledge of your revenue
system and the local economy, and how it is most likely to change in
the future.
Sophisticated forecasting methods are available such as regression analy-
sis and econometric modeling techniques. If you want to explore such
techniques, retain an experienced consultant for assistance.
Develop an historical record of major revenue sources and key economic
indicators.
• Sales tax collections by month/by year
• Assessed valuation by year
• Number of business licenses issued by year
• Valuation of building permits by year
• Domestic water usage by month/by year
• Golf green fees and cart rentals by year
• Bus ridership by year
• Water/sewer tap fees by year
Analyze past records and trends and make a judgement about the probability
that recent trends will continue.
Be careful of the effect that compounding can have on revenue yields. Look
at historical growth rates.
61
-------
The ideal approach is to reach the same revenue or expenditure forecast
by using two different forecasting methods.
Develop two different forecasts for each major revenue source.
• High or optimistic forecasts based upon five years of solid growth.
• Low or conservative forecasts based upon five years of slow growth.
Prepare forecasts for expenditures by budget account and for each
revenue source. Separate by accounting fund so that totals are accumula-
ted later.
Develop one expenditure forecast based upon providing a high quality level
of basic municipal services, assuming a moderate rate of growth. Show
capital expenditures to which you are already committed separately.
don't underestimate the impact of inflation upon expenditure forecasts.
Carefully consider the effects of population growth and increasing demands
for services as well.
When forecasting costs of new major facilities, e.g., swimming pools,
city halls, communication systems, be careful not to underestimate the
on-going operating and maintenance costs.
Compare high and low revenue forecasts against moderate expenditure fore-
casts and analyze the "available balances" or "deficits" for each year,
under each growth assumption.
The "available balances" or "deficits" should be used as a tool for
making planning decisions.
• Can the community afford additional debt service on a proposed
bond issue?
• Can the community afford additional operating costs of a new
swimming pool?
• Will the community need additional revenue sources to fund
existing operations?
• Will water and sewer users' fees have to be increased?
Update the five year revenue/expenditure forecast annually at budget time
and prior to making a decision about any major long-range financial commit-
ment. Always compare your revenue forecasts with what actually occurred.
Note where you could have avoided errors. Consider this in revising your
forecasts for the next period.
REVENUE ALTERNATIVES
Retain a qualified and experienced municipal financial consultant to assist
the governmental staff in developing a report that identifies all major
additional revenue sources available to the community.
The report should analyze each revenue source in terms of:
• Projected yield
• Legality
• Cost of administration
• Incidence of tax burden
• Elasticity 1
• Citizen acceptance
Elasticity is a measure of the responsiveness of the community's revenue
growth to inflation, population growth, and growth in demand for community
services.
62
-------
PAGE NOT
AVAILABLE
DIGITALLY
-------
PAGE NOT
AVAILABLE
DIGITALLY
-------
See Tables 27-3 and 4 for a summary of the information that should be
gathered and how it might be organized. The City Attorney should analyze
the financial limitations that may be imposed upon the community by state
statute or city charter.
A growth impacted community needs financial flexibility. A growth impac-
ted community that is severely hampered by debt limitations imposed by
charter or statute should consider electing to go homerule if possible,
or amending the existing city charter.
As a revenue alternative, consider policies that require developers to pay
for basic community improvements required because of growth. Include:
• Tap fees (Plant Investment Fees) for utilities, parks, and
possibly schools
• Use tax on construction materials
• Cost of utility extensions past undeveloped ground for subdivisions
• Cost of paved roads for subdivisions
• Dedication of open space for greenbelt and parks
GENERAL FUNDING POLICIES
Local government revenue structures typically develop along the path of
least resistance. Once in effect, taxes gain a measure of acceptability,
and it is often wisest, politically, to leave well enough alone. Such a
policy may work in a stable community, where the demands for governmerrt
spending are neither large nor growing.
However, managing rapid growth requires a major investment of public funds.
A higher level of government spending will bring major issues to the sur-
face: Who pays for managing and providing for the needs of the new popu-
lation? Should the present revenue system change?
In addition to concerns for equity, it is important to note that almost
every public fund-raising measure affects the decisions of private indi-
viduals. It is natural to attempt to avoid taxation. In the case of
municipalities, this is often possible by living, working, buying, or
selling outside of the town boundaries. But this may be contrary to the
community's attempts to develop and operate efficient public service sys-
tems.
Plan revenue structures to be in effect for at least five years, preferably
longer. It is time-consuming and difficult for the community to accept
frequent changes in the types and rates of taxes and charges.
In rapidly growing communities, taxes and charges must respond positively
to inflation in public service costs and the demands of a growing popula-
tion. Of the sources available to Rocky Mountain communities, the sales
tax is most responsive. Revenue from property taxes typically lags behind
growth and/or inflation by two to three years. User fees grow along with
population increases, but not with inflation.
Equity in paying for the specific services of new residents dictates heavy
reliance on user charges and revenue bond financing to shift the burden
from the existing residents. Sales taxes and property taxes place the bur-
den of growth on the community as a whole and therefore should be used to
fund programs that benefit the whole community.
Adopt taxes and charges designed to make growth pay its own way before
major growth occurs. Otherwise, new residences will tap into utility
systems and then it will be too late to charge a tap fee; residential
and commercial improvements will be in place and potential use tax will
be lost; developments will be underway without having paid fees for sub-
sequent school or park construction.
63
-------
Place utilities such as water, sewer, and electricity on a self-supporting
basis to avoid the need to subsidize them with precious general tax funds.
Self-supporting utilities can also rely on revenue bonds for debt financing
and thus preserve limited general obligation bonding capacities for non-
revenue producing facilities.
Subsidizing general fund programs with utility charges that are higher
than adequate is a dangerous and inequitable practice. At the point
when higher utility expenditures must be faced, the community may find
itself unable to pay for general purpose programs long taken for granted,
without major general tax increases.
Always tie proposed new taxes or a bond issue to a proposed expenditure
at the time the expenditure commitment is made. Raising taxes to pay
for past commitments loses citizen trust and support.
TAXES AND USER CHARGES
Recognize the need for a broad mix of revenue sources. Achieving the
proper balance of eguity, yield, responsiveness to inflation and popula-
tion growth, and control in the community's overall revenue structure will
require reliance on a variety of tax measures, fees, and user charges.
Keep an up-to-date file on all revenue sources that are legally available
to the community. Draw on the basic financial planning work where alter-
natives and their characteristics are initially examined. Note state
legislative developments as they occur.
Be sure that careful records of monthly collections for each revenue
source are maintained. Be aware of new trends that may be developing.
Periodically audit payments and collection procedures.
• Be sure legal requirements are being observed.
• Exert proper financial control over revenue collection activi-
ties. This is especially important as user charges are applied
and involve operating departments.
• Honest payment of taxes and fees is crucial for credibility
and equity.
A moderate level of auditing typically pays for itself in increased
revenues.
Set user charges as close as possible to the actual costs of the service
being provided when the consumer is the direct, primary service bene-
ficiary. This principle applies to:
• Utility hookups
• Water, sewer, power utility services
• Building inspections
• Recreational programs
Follow up overdue accounts with immediate, businesslike collection procedures.
BONDING AND LONG-TERM FINANCING ALTERNATIVES
The community should make a thorough assessment of its bonding capability
prior to contemplating any long-range financing.
• The Town or County Attorney should review the Town Charter and state
statutes to determine what the government's "legal bonding capa-
bility" is. Be aware of "debt service limitations." Be aware of
"bond reserve fund requirements." What are election and legal
notice requirements?
64
-------
PAGE NOT
AVAILABLE
DIGITALLY
-------
PAGE NOT
AVAILABLE
DIGITALLY
-------
• Use the long-range (five-year) revenue/expenditure forecast based
upon existing revenue sources to determine the municipality's
"practical bonding capability." If assistance is needed, an inde-
pendent consultant may be more objective than an investment banker
or engineer with a stake in the outcome.
• Analyze the impact that additional revenue sources could have upon
the municipality's "practical bonding capability."
Become knowledgeable about long-range financing options available to the
municipality other than the traditional general obligation bond approach.
Refer to Table 27-4 for some options. These will differ from state to
state in their legal aspects.
BONDING PROCEDURES AND POLICIES
When contemplating a municipal project that will require bonding, select
a regional investment banking firm whose primary role will be to assist
the municipality with marketing its bonds at the lowest possible interest
rate. Become familiar with the terms and jargon. Refer to the glossary
in Appendix G.
• Investment bankers may offer reasons why a municipality should
not sell bonds at a "public sale" — some are valid; some are not.
• An investment banker has more to gain if bonds are "negotiated"
directly with his/her firm.
• When in doubt about the merits of "public sale" vs. "negotiated
sale" approaches, seek the advice of an independent financial
consultant.
In most cases it is in the town's best interest (financially and politi-
cally) to seek competition through marketing its bonds at a "public sale."
When selecting an investment banking firm, be specific about the fees
the investment banker will charge and discuss the firm's capabilities
in the following service areas:
• A review of the municipality's legal and practical bonding capa-
bility.
• A careful review of the project costs that are to be funded through
the bond issue. Be careful not to overlook or underestimate
"hidden" costs, such as utility relocation costs; future change
orders — provide for a contingency; professional fees - "fiscal
agent fees"; cost overruns — anticipate them; landscaping; special
equipment — furniture/fixtures; and interest on the bonds during
the construction period should be included in many cases.
• Selection of qualified bond counsel — the legal firm that will
render its opinion should appear in the "Red Book."
• Coordination of all legal matters, publication requirements and
ordinances.
• Preparation of the election ballot.
• Coordination of the bond election campaign including attendance
at public hearing, presentation of financial data, and assistance
with the preparation of newspaper articles and citizen mailings.
• Structuring of the bond maturities schedule in a manner that
provides the greatest financial flexibility for the community.
~ "Interest payment only" should be considered for the
first couple of years.
65
-------
~ Issuing the bonds at a "premium" can result in additional
front-end revenues for the town.
~ Stay away from balloon payments — annual debt service pay-
ments should level out after the first three-four years.
~ Allow for future refunding possibilities.
~ The life of the bonds should relate to the life of the project;
stay away from maturities in excess of 20 years.
• Preparation and mailing of the "notices of sale" -- this does
not have to be elaborate or fancy.
• Efforts to obtain the highest possible credit rating for the bond
issue.
~ Make rating agencies aware that the municipality is concerned
about maintaining and improving its credit rating.
~ Auditors' reports, budgets, Certificate of Conformance, and
long range financial forecasts can help.
~ Rating agencies base their decision upon assessed valuation,
overlapping debt, and the fiscal stability of the community.
• The bid opening and award.
• Any interim financing that may be required prior to the bond
closing.
• The actual closing on the bonds.
• A "bond proceeds investment plan" that has as its objective maxi-
mizing interest earnings from bond proceeds during the construction
period. The municipality should pursue an aggressive investment
policy during the construction period — plan ahead:
D Know when investments will fall due.
~ Know what interest rates banks will pay.
~ Don't take chances — security is important.
~ Investing funds with a local bank is usually politically
expedient, but make sure interest rates are competitive.
~ Don't let funds sit idle in checking accounts. (Refer to
the chapter on "Managing Cash Resources.")
CITIZEN INVOLVEMENT
Citizens usually do not understand governmental revenue structures and
their relationship to the problem of financing growing expenditure require-
ments. Whenever major changes or additional taxes are being considered,
involve citizens in an advisory role.
Before proposals are made public consider creating a citizens' tax advisory
committee to:
• Study available alternatives.
• Evaluate alternatives in light of all community goals (with the
exception of financial need) and as to yield incidence, elasticity,
legality, administrative cost, local control, side effects, etc.
• Make recommendations of preferred alternatives if and when need
can be demonstrated.
66
-------
Assign staff to work with and help inform the citizens' group. Request a
written report.
When it is determined new taxes are required, take time to inform the
community of why the need exists, and request the advisory groups assistance
in educating the community on the proposed alternative.
ELECTIONS
Involve community leaders and citizen advisors before planning a tax or
bond election. Recognize the difficulty in selling a tax increase. Sell
the program's benefits while being honest about cost and required financing.
• Educate citizens about the community's existing tax structure and
past performance in financing needs.
• Solicit advice and either follow it or give sound reasons why not.
Plan ample time for community information.
• Use plans and studies done previously to relate expenditure needs to
community goals and needs caused by growth.
• Deal with issues of "who pays" in an honest and straight-forward
manner.
• Relate funding needs closely to expenditure requirements, but
avoid locking the community into a long term earmarking of funds
for needs that might later drop in priority.
• Publicize the alternatives to the planned rate increase or bonds
without appearing to "threaten" the community.
• Prepare and distribute- fact sheets addressing common citizen
concerns. Encourage citizen groups to distribute these personally
and to give reasons for their support of the proposal.
Active and solid, support from local legislators is essential. They are
the community leaders. If they are not sold, the community will waiver
as well.
INTERGOVERNMENTAL FUNDING
Grants and loans are available from the state and federal government.
Some funds are distributed according to legislated formulas, like
general revenue sharing; others are discretionary. Though formulas may
be affected by major collective lobbying efforts, pursuit of discretional/
funds promises the greatest return for the local effort required.
Concentrate efforts on obtaining discretionary, or categorical grant
funds.
• Plan to make a sustained effort in getting to know state and
federal administrators who control discretionary grant funds.
• Do not assign low level staff personnel the job of pursuing
grant funding.
The best source of information on grant availability is word of mouth.
If you are close to state and federal offices, you. will be the first to
know. You will also have insight as to what kind of program is desired
by the funding agency.
Utilize the community's plans and capital program to communicate the
range of community needs.
• Know your complete list of needs, so efforts can be directed
to the most promising areas. Funds may not be available for
parks, but may be for water.
67
-------
• Communicate the community's overall needs to the state/federal
representatives. Their ideas may lie stimulated.
• Use the capital program to show that the community's priorities
have been well-thought out, and that the community is not simply
fishing.
When conducting a project funded vith state or federal assistance, remember
that performance will be monitored, and that success or failure will
affect chances for future grants. Everybody likes to support a winner.
Hake the grantor agency look good.
68
-------
NOTES
-------
»
I
I'
•V,
?¦ ¦ ¦
* .
Priorit|g||
An already approved program to
community is committed, and for which funding and
timing are not flexible.
Priority 2:
A program that is needed now but for which funding
is flexible.
-------
28 Capital Improvement
Programming
After following the procedure described previously, the community will
have (1) established service level standards that reflect the community's
public service goals, (2) identified appropriate future land use pat-
terns, (3) adopted policies and plans for providing community services
and physical facilities, and (4) assessed service deficiencies that
exist now and/or can be projected as growth occurs (refer back to the
previous chapters in this section).
This process will surface substantial needs for new capital facilities
expenditures. Immediate development of all "needed" facilities and
programs will likely be beyond community financial capabilities. Capital
improvement programming (CIP) can be the means to decide where to focus
immediate attention and what to do first.
Capital improvement programming is a process for developing a list of
needed facilities in all functional areas (utilities, parks, public
safety, etc.) together with priorities. Costs and financing possibili-
ties are included. The process for developing the list is important.
It is a way of testing the community's standards and plans in terms of
concrete proposals for facility development. Also, priorities cut
across functional lines. The capital spending proposed in the annual
budget is formulated from the CIP.
Capital programming can accomplish more than simply identifying highest
community priorities for immediate funding. As one element of the overall
management process described in this handbook, capital programming can
provide a framework to:
• Identify and test the effects and mutual compatibility of
service standards, land use patterns, and management policies
previously considered.
• Provide a forum for discussion of priorities, in which all the
community's near-future needs are considered together and in
light of available financing.
• Detail the community's financial needs, based on a logical plan
and set of policies. A detailed statement of need can be used
to seek assistance from other governmental agencies and stimulate
discussion of "r ^-traditional" financial tools.
• Coordinate the community's efforts, both internally and with other
governmental agencies — local, regional, state and federal.
• Crystallize and support the cot ¦.1 unity's growth management plans
and policies so administrative personnel can direct wholehearted
efforts toward implementation.
CIP COORDINATION
Preferably, a single staff member should coordinate development of the CIP.
If possible, this should be the community planner. When there is no
planner, a small committee including a planning commission member, the
public works director, and the town clerk might coordinate the process.
Principle responsibilities of the CIP coordinator or coordinating
committee are to:
• Develop a timetable and make sure it's followed as closely as
possible.
71
-------
• Provide guidance to staff personnel involved in preparing CIP
requests.
• Review activities and progress of request preparation to check
for gaps, duplication, misunderstandings, or possibilities which
may have been overlooked.
• Identify opportunities for coordinating and financing projects.
• Publicize the CIP process.
• Maintain a "whole picture" approach to the process in order to
achieve balance between various departmental requests.
GETTING STARTED
The coordinator should prepare a schedule and calendar for the CIP
process. See the example in Table 28-1.
+ Start early. The process must be open and the various meetings
required will take more time than you may anticipate. Especially
the first time a CIP is prepared, plan for extra time.
• Schedule the process so departmental requests and initial public
reviews are completed before the manager or mayor prepares annual
budget requests. The CIP is necessary for proposing the coming
year's capital spending.
• Work closely throughout the process with everyone involved to assure
the CIP is ready on schedule.
Start with the CIP from the previous year, if it exists. Once an accep-
table CIP is developed, the yearly procedure is mainly updating, refining,
and adjusting. Continuity in annual CIP's is evidence of a process working
effectively, even though review, changes, and renewed commitment are
essential each year.
The coordinator should hold a briefing for staff preparing requests
where the following items are covered:
• Initial direction from the legislature and chief administrator
• Schedule
• Cost factors to handle inflation
• Assumptions for growth, future land use patterns
• System for assigning project priorities (see suggested system
in this chapter)
• Organization and approach for presentations to the advisory review
agency at public hearings
BASIC PRINCIPLES FOR CIP PREPARATION
The CIP should reflect the community's goals by using accepted standards
for facility sizing and design. (See chapters on "Getting Control" and
"Planning and Policies for Physical Facilities" for specific discussion
of establishing standards.)
Where accepted standards do not exist, clearly identify the assumptions
underlying physical plans. Don't wait until you have adopted all your
standards and plans to do a CIP. Start now, refine them as additional
information is available the following year.
Standards that exist, or stated assumptions, should be reviewed and
approved by advisory boards where appropriate.
72
-------
TABLE 28-1: BUDGET AND CAPITAL IMPROVEMENTS
PROGRAMMING SCHEDULE-EXAMPLE
Activity
Year
Month
First quarter status report on 1977
completed projects and 1978 projects
underway.
Manager-Council formulation of initial
direction for 1979 activities.
Five-year projections of revenues and
expenditures reflecting existing
commitments.
Planning Department briefings with
departmental staff and Planning
Commission.
Preparation of departmental requests.
Revenue estimates for 1979.
Planning Commission hearings and
recommendations to Manager.
Five-year projections of various CIP
scenarios.
City Manager review and hearings.
Development of Manager's joint operating-
capital budget.
Manager's five-year budget projections.
Manager's budget to printers.
Third quarter status report on
1978 projects underway.
Council hearings on proposed budget/
CIP.
Adoption of budget/CIP and mill levy.
Execution.
First quarter status report on 1978
completed projects and 1979 projects
underway.
Third quarter status report on
197 9 projects underway.
First quarter status report on 1979
completed projects and 1980 projects
underway.
1978
1978
1978
1978
1978
1978
1978
1978
1978
1978
1978
1978
1978
1978
1978
1979
1979
1979
1980
4,5
4,5
5
5
6
6.7
7
7.8
7.8
8
8.9
9.10
10,11
All
3
8,9
3
73
-------
Standardize assumptions regarding population growth, locations of new
development, anticipated annexations, inflation in cost factors.
Agree on a system for priority rating. Some systems aim to be highly
objective, identifying criteria and weighing project importance to
arrive at a numerical project rating scale. However, safety and public
health tend to dominate a numerical system, and typically push social
and cultural programs to a low priority level (how does a city ever
justify a cultural center, a mall, or a city hall?). Because numbers
often lead to counterintuitive priorities, such systems usually break
down in the political arena.
A more satisfactory approach is subjectively to equate alternative pro-
jects with the community's goals and needs. As long as the review process
is open, department heads and the public will be kept informed, and an
effective priority profile can be achieved. This approach would classify
requests as follows:
• Priority one: An already approved program to which the
community is committed, and for which funding and timing
are not flexible.
• Priority two: A program that is needed now but for which
funding is flexible.
• Priority three: A highly desirable program that has both
timing and funding flexibility.
• Priority four: A program lacking immediate justification
but that may be needed in the future.
• Priority five: A program requiring more analysis before
a commitment can be made.
Use the overall list of facility needs to identify opportunities for
coordinating and financing projects.
• A low priority utility line replacement can logically occur con-
currently with a higher priority street pavement project because
of the cost savings of doing them together.
• A substantial impact can be achieved in a given area of the
community by concentrating projects in a given year.
• Private assistance may be forthcoming if a project can help a
private company eliminate a problem, e.g., a parking area or
laved road.
• "rant assistance can more readily be sought and grant funds
justified when needed capital projects are carefully selected
according to a CIP process.
Project capital requirements over six years. Don't be constrained by
uncertainty over the community's ability to finance projected capital
ne'eds.
• Construct the list based on what is presently needed, plus what
new facilities will be required to serve added population to the
community's standards.
• Only pare down facilities planned for the upcoming year to fit
known budget constraints.
• It may be unrealistic to expect to correct all existing facility
deficiencies within a six-year period. But resolve not to let
deficiencies grow.
• Be sensitive to the risk of allowing growth with streets, parks,
safety protection, etc., below standards. Quality will always be a
casualty. In the long run the public will pay the price.
74
-------
PREPARATION OF PROJECT REQUESTS
Operating department personnel, the mayor, or commissioners are responsi-
ble for preparing project requests based on previously established service
level standards and functional facilities plans. (Refer to "Planning
and Policies for Physical Facilities."
• Do not necessarily accept the "traditional approach."
• Question consultants' recommendations. Get a second opinion
or review by available state personnel.
• Consider opportunities for subcontracting to private firms.
• Make sure your standards are readily justified and right for
your community — do not accept a standard just because it's
a national average or "model."
Project requests (see Figure 28-1 for an example) should include the
following information:
• Project description.
• Justification.
• Project's priority as seen by the proposer (see suggested
priority system above).
• Estimated capital costs for each:
~ Land, right of way
~ Engineering, architectural fees
~ Building construction cost
~ Equipment cost
• Construction time requirements
• Estimated cost to maintain, staff, and operate annually
• Ideas for financing (especially possible grant availability)
Obtain the finance director's or town clerk's assistance with necessary
cost projections.
• Explicitly identify assumptions about inflation.
• Be sensitive to the tendency to underestimate future
facility operating costs.
• Think about the need for management personnel, office space,
and vehicles that often accompany expansion of physical
facilities.
• Always work in terms of "net costs." That is, for a facility
that will generate revenue from user charges, subtract estimated
revenue from the total costs. By doing this, revenue projections
can be based on the existing set of taxes, fees and charges.
Don't be discouraged by the magnitude of needed facilities. It's easy to
consider the CIP a "wish list" because it is typically overwhelming in
light of immediately available financing. Look at the list ae the job
to be done, and as reflecting current policies. When the complete list
is in hand is the time to consider how it can be accomplished.
75
-------
FIGURE 28-1: CAPITAL IMPROVEMENT PROJECT REQUEST FORM
City of ,
Project No..
Date
19
1. Department
Division of
3. Description of project -
a. Hdoe, physical descript., location
b. Purpose
c. Shovn on nap attached,
(yes or no)
4. Meed for project (use sep. sheec if
necessary)
a. Why requested -
b. In conprehensive Plan?.
.Page .
5. Relation to other projects, where
applicable -
6. Estimated cost -
A. Planning (totals a, b, c)
(a) Architects
services
(b) Engineering
(c) Inspection
B. Land
(a) Site is secured
(b) To be secured
C. Construction (totals a,b)
(a) Labor
(b) Non-labor
D. Miscellaneous equipment
(totals a, b)
(a) Equip.
(b) Furniture
Other
TOTAL ESTIMATED COST
F. Cost prior to July 1, 1976
(Included above)
ESTIMATED ADDITIONAL COST
7. Future burden resulting from
project - _
(a) Annual cost: maintenance,"
repair and operation
(b) Annual estla. cost of
nev staff required _
(c) Future expend, for
addlt. equip, not
Included in proj. cost
8.
Income from project (Estimated annual,
direct and indirect)
9. Estimated construction period -
10.
Status of plans and specifications -
(Place check mark opp. proper status)
0 Plans not needed
1 Nothing done except this report
2 Preliminary estimate received
3 Surveys completed
4 Work on plan3 scheduled
5 Sketch plans In preparation
6 Sketch plans completed
7 Detail plans In preparation
S Detail plans and specifications
completed
11. Proposed manner of construction
(contract or day labor)
12. Project expenditures by years -
1976 1977
1978 1979
1980 1981
ENDORSEMENT (Questions 13, 14, 15 to be
filled In by Dept. Heads)
13. Priority rating -
14.
Year reconnended
for construction
15. Recommended financing:
General Revenue
Service Charges
Utility Revenues
Cen. Obltga. Bonds
Federal Aid
State Aid
Revenue Bonds
Special Reserves for
Capital Expenditures
Working Capital or
Revolving Fund
Total
ca
SC
UR
COB
FA
SA
RB
SS
UC
76
-------
COST AND REVENUE PROJECTIONS
The purpose of making cost and revenue projections is not to "budget"
capital facilities for the six year period. Rather these projections
should show the costs and financing possibilities/limitations of under-
taking the entire program. Almost certainly, financial resources will
be inadequate. Nevertheless, this list of facilities reflects the com-
munity's needs per its standards.
The town clerk or financial director should project revenues at the same
time project requests are being compiled. See Chapter 27 on "Financial
Planning" above.
Consider alternative methods for financing capital improvements. Revenue
and special financing techniques should not have to be analyzed each
year.
• Avoid feeling that "we could never in a million years come up
with this kind of money."
• Be opportunistic! With the list of needs in hand, look for
state and federal grant funds, possibilities to work with a
private firm or group, and grants from philanthropic groups.
Continue this as an ongoing activity even after adoption of
the CIP.
• Evaluate use of special assessment districts.
• Be aware of financial techniques for assisting private com-
panies (like industrial development bonds) that might in turn
encourage the firm to assist the town or county.
INITIAL REVIEW
After all staff requests have been compiled, and each department's own
priorities assigned, the Planning Commission should review CIP requests
in a public setting such as a public hearing. Where no Planning Com-
mission exists, use the Council, Commissioners, or a subcommittee thereof.
The focus should be broad, providing a forum for input from the agency's
staff, consultants and citizens.
Consider:
• specific issues of the community's overall capital requirements
• their relationship to community goals and standards
• annexation decisions
• utility extension policies
• priorities among the various functions (utilities, streets, parks,
safety, etc.)
• anticipated timing of energy impacts
• financial policies
Where professional staff exists, each proposing staff member (rather than
the CIP coordinator) should present his/her own recommendations. This
will enhance the staff's feelings of accountability and clarify technical
aspects of, and relationships among, projects.
Following its hearings and deliberations, the review body should forward
recommendations, including suggested priorities and related comments to
the dhief administrator for use in budget preparation.
77
-------
FINANCIAL ANALYSIS
Focus the financial analysis on whether or not at least the high priority
items (as established by initial public review) can be funded with local
resources. Repeat this procedure for the next highest priority, and
so on.
• Spread the highest priority projects over the six-year period,
or maybe the next three years if this seems too long. Assume
bonds will be used to finance major projects with long service
lives (15 years or more).
• Always work within each accounting fund. Monies may not be
transferable.
• Compute the total capital and operating costs for each project.
Use debt service only for capital projects assumed to be debt
financed. Combine these costs for the highest priority projects
and spread them over the six-year period (or shorter period if
needs obviously cannot wait that long). Add these costs to the
projection of costs required to fund existing programs.
For presentation, consider using a format similar to Table 27-2 in the
preceding chapter. Graphically present the revenue projections separately
by accounting fund, alongside the total costs projected for continuing
existing programs. Alternatively, undertake priority 1, 2, 3, etc., and
present capital improvements and associated operating costs. Do not
overemphasize anticipated funding shortages. Deal with that problem later.
LEGISLATIVE ADOPTION
The legislative body should review the capital program before considerinq
the coming year's proposed budget (including the capital budget). In this
way a better perspective on overall needs and priorities is maintained.
• CIP review should focus on whether or not it reflects overall community goals.
Do not get bogged down with technical matters.
• Adoption by the Council or commissions does not mean it commits to financing
all CIP projects with local funds, but that the list accurately reflects
community goals and that priorities are acceptable.
USE OF CIP IN FUTURE PLANNING
The chief administrator will utilize the capital program in proposing a capital
budget for the coming year. CIP recommendations must arrive from the advisory
review board before the budget is prepared.
The capital program can be used:
• as a tool to prioritize staff efforts (such as deciding whom to approach
for financial assistance and what to ask);
• for guidance in identifying policy review and revision which may be
required.
PUBLIC INFORMATION
Use the media and public meetings to involve the public — the CIP details the
physical and financial implications of the community's goals.
• Stimulate public discussion of non-traditional approaches. Clearly,
simply relying on tax collecting cannot effectively do the job.
The use of debt financing, special assessment districts, private
contracting, joint ventures with energy companies, acceptance of inter-
governmental grant assistance may have been considered undesirable in the
past.
• Encourage public input regarding a broader citizens' role in providing
facilities through non-governmental initiative. Non-governmental
78
-------
resources can be highly effective in acquiring needed facilities.
Cooperation is easier when the public, public institutions, and
private companies have a common roadmap.
79
-------
Unplanned Growth
$
Planned Growth
80
-------
29 Annual Budgeting
The annual budget is a detailed plan outlining activities and responsibilities
for the upcoming year. Time limitations and the intricate detail required make
it impossible to deal with broad questions of community direction and policy
in the annual budgeting process. Long range overall community goals and poli-
cies must be determined independently, and prior to preparing the next year's
specific plan. The backbone of the budget should be accepted community standards,
a land use plan, management policies for utilities, taxation policies, annexa-
tion policies, and the capital program. (See preceding chapters in this Part III
for related discussion.)
Given an overall sense of direction, an annual budget is designed to:
• Ensure money is allocated to programs and projects that are con-
sistent with the community '8 long range plans.
• Encourage efficient operation of programs and projects.
• Clarify responsibilities and coordinate the efforts of
governmental staff.
9 Control the next year's spending so that legal requirements
are satisfied.
BUDGET FORMAT
Budgets should be simple, realistic, flexible and understandable. Smaller growth
impacted communities don't need to get too sophisticated.
Old fashioned "Line Item Budgeting" — personal services, non-personal
services, capital outlay — is still the most meaningful and best method
of monitoring (controlling) expenditures.
Planning Program Budgeting Systems (PPBS) are expensive to develop and maintain
and are of questionable value.
Zero Base Budgeting is becoming popular. The underlying concept of evaluating
budgets in terms of (a) different service levels and (b) alternate ways of
accomplishing objectives is valid. Don't go overboard in smaller or even large
organizations.
Prepare an inexpensive and understandable budget document for all interested
parties. It should include:
• City manager's or mayor's budget message
• Summary of all accounting funds
• Five-year forecast (see section on Financial Planning above)
• Debt service schedules
• All other relevant statistical information
BUDGET SIZE
Plan expenditures based upon thorough evaluation of department requests.
• Do not "pad" budgets, "hide" money, or create "slush funds".
• If excess funds are available, budget them as "contingency for unanti-
cipated expenditures." Unforeseen expenditures are quite common for growth
impacted communities. Don't be alarmed — have funds ready for them.
Appropriate the funds by ordinance as needs arise during the budget year.
81
-------
Try to budget for a surplus fund (fund balance) of 5-10% of the annual operating
budget.
Avoid deficits — they will only cause political and financial problems.
Do not exceed the budget. Expenditures in excess of appropriations are illegal
and will have negative financial implications for councils and administrators.
• Make each department head responsible for his/her budget.
f
• Monitor budgets monthly or quarterly to identify budget trends early.
• Formally appropriate unanticipated expenditures as they arise during
the budget year.
REVENUE ESTIMATES
Budget revenues realistically and a little on the conservative side.
The finance officer or town clerk should make revenue estimates. Budget major
revenue sources on a cash basis. Estimate individual revenue sources separately
(then accumulate them by fund).
Before starting next year's estimates, construct a table to show (a) actual
revenue collections for at least the last three years and (b) the latest
budget figures for the current year. See Table 2 9-1 as an example.
Compare revenues collected to date this year with previously adopted budget
amounts. Make revisions where appropriate.
Base next year's estimates on:
• Trends apparent in the table
• Discussions with state personnel where state-shared revenues are
concerned
• Discussions with other department personnel concerning utility
charges, building permit fees, recreation charges, etc.
Do not budget grant funds unless final approval has been received, and you know
when the funds will be available.
For each fund, add estimated revenues to anticipated unappropriated fund balances
to obtain a figure for "Total Funds Available."
SALARY LEVELS
Conduct a salary survey for comparable communities throughout the state. This
can be done by telephone. Compare survey findings to the community's existing
and proposed pay plan.
Determine the average rate of pay for comparable positions throughout the state.
Relate averages to rates in your community.
Compare proposed cost of living increases.
Keep the study highly confidential — only top management and council — to avoid
stimulating hopes for pay raises which may not materialize. Possible salary
changes are always easy to get excited about.
DEPARTMENT INVOLVEMENT
Accurate and realistic budgets will be developed if department heads are involved
through the entire budgetary process.
Do not prepare departmental budgets for departmental heads. This will cause
resentment and they will not feel responsible for budget implementation or
control.
82
-------
TABLE 29-1: SAMPLE FORMAT FOR REVENUE ESTIMATES
1. TAXES AND FEES:
Property Tax
Franchise Tax (Public Service Co.,
Mt. Bell & Cable TV)
Contribution from Water, Sewer
and Flood Control Funds
Cigarette Tax
Sales and Use Tax
Public Accomodations and
Admission Tax
Licenses and Fees
Court Fines and Costs
Interest Earnings 4 Property Rental
City Share of State Highway
Users Tax
City Share of State Auto Registration
Fees
City Share of County Road and
Bridge Property Tax
County Contribution for library
Recreation Charges
Building Inspection Fees
Settlement for Bus Termination
Transfer to Flood Control Utility
Transfer to Revolving Street Fund
Other Miscellaneous Revenues
2. GIFTS AND GRANTS:
1973
ACTUAL
1974
AC1UA1
1975
ACTUAL
1976
ACTIIAl
1977
Rtviscn
19/(J
AUOPTLU
BUDGET
1 ,853.515
1,951,675
2,262,303
2,429,148
2,594,339
2.998,234
471,014
508,013
630.837
691.098
827.500
940,378
253,600
369.879
4.950,895
260,000
506,985
5,294,189
339,780
506,640
5,608,217
388.645
522,196
6,476,429
373.363
532,335
7,620,000
351.935
548,710
8.547,500
180,011
154,502
223,045
202,651
219,147
212,162
196,388
327,046
242,415
149,567
136.426
263.227
247,214
149,296
155,432
387,254
316,000
154,400
200,000
179.460
345.500
178.300
220.000
83,780
336,857
312,947
316,218
329,652
320.000
364,944
290,604
323,277
328.587
341,494
358,500
386,648
278,241
45,376
283,584
121,537
214,218
295,129
47,550
446,753
106,705
198,952
313,938
51,750
541.087
112,447
1,125,293
(110,000)
309,471
329,723
70,110
649.303
149,488
(130.000)
515,120
342,000
85,500
697.000
110,000
185,230
373,900
85,500
937.000
120,000
181,990
Specific Grants
Revenue Sharing
Community Development
3. UTILITY REVENUES (Including Grants):
Water
Sewer
Flood Control
412,298
902,182
3.572,091
2,488,989
267,608
1,036.957
3,819,954
2,220,171
335,629
7.
328,467
1,030,455
126,957
3,798,694
1,912,343
_306,892
TOTAL REVENUES
17,605,089
18.887,237
20,632,011
UNAPPROPRIATED FUND BALANCE:
General Fund
Revenue Sharing
Water Utility Fund
Sewer Utility Fund
Flood Control Utility Fund
914,474
711,135
1,999,181
2,105,433
1,134,881
265.615
3,263,286
3,018,620
1,261,257
299,084
3,894,917
3,430,202
(179,009)
CHANGE IN OUTSTANDING BONDED DEBT:
915.581
(1,127,857)
836,617
TOTAL FUNDS AVAILABLE (Restricted and
Unrestricted) (4*5*6)
24.250.893
25.441,782
30jJ75j07_9
RESTRICTED REVENUES:
Restricted Interest
Open Space Acquisition
Transportation
Parks I Recreation Construction
Library
CATV
Water Utility
Sewer Utility
Flood Control Utility
Specific Gifts and Grants (Not
otherwise restricted)
Community Development
2,941 ,433
1 ,332,343
224,350
108,600
1,998
3,080,822
2,241,560
177.815
882.600
1 .766.899
375,752
114,206
2,235
3,327,174
1,972,580
335,629
97,942
2,839,053
1,580,615
215,849
135,626
2,512
3,304,347
1,664,556
306,892
251,975
126,957
TOTAL RESTRICTED REVENUES
10,108,921
8,875,017
10.428,382
RESTRICTED UNAPPROPRIATED FUND
BALANCES:
General Fund
Water Utility
Sewer Utility
Flood Control Utility
585,850
1,999,181
2,105,433
494,093
3,263,286
3,018,620
894,596
3.894,917
3,430,202
(179,009)
TOTAL RESTRICTED UNAPPROPRIATED
FUND BALANCE
4,690,464
6,775,999
8,040,706
TOTAL RESTRICTED FUNDS (9+11)
14,799,385
15,651,016
18,469,088
TOTAL UNRESTRICTED FUNOS (7-12)
9.451,508
9,790,766
11 ,705.991
562,078
1 .129,894
480,896
3.761.131
2,191,799
_ 676.878
22,504.278
2,856,222
322,887
3,810.069
2,966,620
(148,390)
(1.310,388)
31,001,298
20", 000
975.000
920,000
3,429,500
1,949,770
375.000
'2? .833,897
3,441,606
239.119
2.740.337
3,016.297
73,008
(1,309,775)
31,034,489
1 .632,051
3,810,069
2,966,620
(148,390)
8.260.350
18,311,434
12.689,864
1,985,721
2,740,337
3,016,297
73,008
7.815,363
17,430,421
13,604,068
38,000
1,136,000
931,000
3,176,000
1,717.000
433.343
24,095,662
2.104,5%
211,015
1.533,746
1,611,895
78,798
(1,328,825)
28,306,897
15,179
6,800
5.000
880.555
1 ,032,495
1,193.693
1,876,787
2,041,748
2,230,977
319,416
278,388
201,429
163,601
171,582
168,699
2,806
2.500
2,750
3,265,336
2,937.315
2,682,645
1 ,944,020
1,702,230
1,469,865
676,878
375,000
433,343
425,610
147,000
480,896
920,000
931,000
10,051,084
9.615,058
9,328,406
1,670,028
1,533,746
1.611,895
78,798
4.894.467
14,222,873
14,084,024
83
-------
Conduct a "pre-budget" staff meeting with all department heads.
• Stress the importance of evaluating departmental operations in terms of
efficiency, productivity, employee performance, service levels, and alter-
nate methods of doing things.
• Impress upon department heads the significance of a serious and thorough
approach to the budget as one of their major responsibilities as managers.
Prepare a "budget package" for each department head, containing:
• A form with the current year's budget
• Actual expenditures to date by detailed account classifications
Request each department head to estimate the current year's final actual
expenditures and requested amount for next year's budget.
• Set deadlines for each department's budget requests.
The chief administrator or finance officer should thoroughly review each budget
request with the department head and increase or decrease it as the case may be.
Tact and diplomacy are extremely important at this point in the budgetary
process.
THE BUDGET AND LONG-RANGE PLANS
Each annual budget will move the community a step closer to its long range
goals, if goals, plans, and policies are used to give the budget direction.
Before compiling expenditure requests, the chief administrator should review
goals and plans with the legislative body to get a feeling for the desired
emphasis fo^ the coming year.
• Review the budget year just ended.
• Review the status of projects and spending thus far in the current
budget year.
• Discuss the community's long range goals and plans.
• Discuss the tradeoff of addressing immediate problems, compared with
longer range objectives.
• Assess current and near-future financial outlooks and alternatives
(refer back to the chapter on "Financial Planning" in this handbook).
• Review the salary policy and funds required to support pay increases.
The chief administrator should document the general conclusions and direction
from this meeting. He/she should communicate them verbally and in writing at a
meeting for all staff who will be preparing budget requests.
Department personnel should prepare budget requests -- paying close attention to:
• Existing community plans, policies, and standards
• Advice (including that on pay raises) received at the prebudget planning
meeting described above
Administrative review of staff requests should always ask how each proposal relates
to long range plans.
EFFICIENCY
Take a strict position when evaluating departmental budget requests. Do not allow
bureaucracies or organized inefficiency to build up.
84
-------
The government should be run efficiently along the lines of a small business.
Every department manager should take this attitude when formulating budget
requests.
• Don't tolerate "padded" budgets and other types of "games."
• Each department head should ask the question, "Who does this expenditure
really benefit — the public or myself?".
• Department heads should prepare budget requests as if their department
were their own business and the requested dollars coming out of business
profits.
• Inter-departmental cooperation and sharing of labor/materials/resources
can save money and create a team approach to problem solving.
Be especially careful about adding people. The tendency is to think that move
people will solve all problems -- this is usually not the case. People are
expensive, become permanent} decrease productivity, cause inter-departmental
j ealousies, and usually compound problems. Strive for a high level of pro-
ductivity -- hard working, efficient, dedicated employees. And reward pro-
ductivity with recognition.
Before evaluating budget requests, set target expenditure levels for each
department that seem reasonable and that fit the total budget's available
revenues.
• Targets may or may not be communicated to department heads.
• Targets will be useful to evaluate department requests and to
maintain perspective on the overall budget.
The most effective way to minimize bureaucracies is to limit the total dollars
available to spend. Communities and their departments are like people -- as
their income increases3 they tend to increase their standard of living. Try to
maintain a basic living standard and don't become extravagant.
Common signs of extravagance in an organization are:
• Most department managers have "company cars" — pool cars are more
efficient.
• Large amount of money are budgeted for professional development —
out-of-state conferences are expensive and often not worthwhile.
• All administrators have personal secretaries — the pool concept
is more productive.
• Department managers have "assistant managers" — unnecessary in a
small organization.
• Each department has its own machinery and equipment — loaders, dupli-
cation machines, mag typewriters, etc. — expensive machinery should be
shared by all.
85
-------
-------
30 Construction of
Facilities
After the local government has completed establishing standards, land
use planning, facilities planning, capital programming and obtained
financing, it must now construct needed facilities. Facilities con-
struction, if not handled properly, can negate all prior effort and
cause serious economic, political, and social problems for the community.
Therefore, local government must ensure that construction of facilities
involves sound/practical planning, design and implementation, and repre-
sents an integrated process that recognizes other things going on in
the community. Imaginative construction planning and design can result
in efficient utilization of available resources, stimulate renewal and
proper development, provide needed urban services, and enhance the
quality of the local environment.
THE PROJECT
The type of project to be constructed, whether a new facility, a rehabi-
litation, or expansion or maintenance of an existing facility, will
significantly affect planning processes, design considerations, project
administration, and the community itself.
Coordination between the project and the community can vary from a minimal
to a very complicated effort. For example: construction or expansion of
a sewer facility will have minimal daily impact on the general community
with the exception of residents in the immediate area of the site;
whereas, a major roadway improvement located in a downtown area will sig-
nificantly impact the entire community as well as individual property
owners and commercial establishments in the area.
It is mandatory to categorize each project as to its effect on the
community and on local affected citizens. The planning process must be
conducted accordingly to ensure proper trade-offs are evaluated with the
final objectives of providing the needed service and minimizing detri-
mental effects during the construction period.
Recognize that in any construction project:
• Absolute convenience and no community impact are unobtainable
at any cost.
• Some inconvenience and minor hazards are inherent even in the
best practical design.
• Important economic savings may be accomplished with minor
inconvenience.
STANDARDS (CRITERIA)
The local government must establish standards for design and construction
of public facilities (refer to Chapters 21 and 25 above). The format or
makeup of these standards may vary widely with the community, and its
staff's level of expertise and capabilities.
Many communities pattern their design and construction requirements after
state or county practices. This may work for facilities such as major
thoroughfares, but is often inappropriate for local streets and may present
v a major obstacle to acceptance of more effective or innovative design
and construction methods.
As a minimum, communities must adopt a set of requirements in terms of
objectives, principles and design considerations for each major service system.
87
-------
Standards should always provide design flexibility and the opportunity for
design innovation with the ultimate goal of providing systems that provide
needed levels of service in an economical manner.
OBJECTIVES
Basic design objectives for any service or system are as follows:
• To provide guidance which is consistent with today's conditions
and needs, but to anticipate insofar as possible and practical
physical, social, economic, and system trends which may be
significant in shaping future local lifestyles.
S To consider the system's special problems and needs.
• To encourage physical integration between related services and
systems.
• To provide guidance toward identifying and selecting alternatives
to system designs which best utilize and preserve the desirable
existing natural environment.
• To make the system/service and its improvements contribute to
increased individual safety and livability.
• To stimulate design decisions which conserve materials, construc-
tion labor, construction equipment, land, and environmental values.
• To encourage an appropriate balance among costs of initial con-
struction, amortization, operations, maintenance, and replacement,
thereby encouraging designs which will minimize total average-annual
costs.
DESIGN PRINCIPLES AND CONSIDERATIONS
Each individual system should have a set of general principles and considera-
tions to guide the system design.
For example, a list of principles for residential street design might
be as follows:
Safety Parking
Design Pedestrians/bicycles
Intersection Landscaping
Construction
Standards for residential street design should account for the following
considerations:
Street classifications Speed
Access Fire equipment access
Street alignment Snow removal
Intersection design Bike/walk/pedestrians
Number of lanes Drainage
Right-of-way widths Turning requirements
Parking (on/off street) Pavement design
Street lighting
88
-------
PROJECT DESIGN
Outside professional assistance is recommended for construction project
design.
• Community engineering capabilities for a construction project
must include project administration, project design, and project
inspection. Most communities do not possess all three capabili-
ties, and those that do tend to be "jacks of all trades, masters
of none," whose effectiveness as designers is usually marginal.
The local community should specialize in one or two capabilities, speci-
fically administration and inspection, and solicit outside assistance
for design.
• The critical selection criteria for an outside design engineer should
be technical expertise and performance, not cost. Extra expenditures
for sound engineering can reap tremendous savings in time and
future costs, as well as achieving a successful project.
• Local and state firms are generally most sensitive to community
needs, contractors' capabilities, and the general community
environment.
• Requests for proposals for engineering services should be made in
writing. Requests can be formal or informal. A formal reguest
would include very specific requirements and the informal would
give general requirements, leaving the approach to the designer.
The design proposal should solicit several basic ideas:
• Description of the project
• Objectives of the project
• Design approach
• Design team - capabilities and experiences of key personnel
• Experience of the firm and key personnel on similar projects
EVALUATION OF PROPOSALS
Does the proposal deal with and will the final results of the proposed
project meet stated requirements ^nd the community's needs?
• The process of evaluating technical proposals can be a major
problem for smaller communities. To analyze and evaluate sub-
mitted proposals, the community should solicit outside expertise
from other communities, the state, and professional organizations.
• Establish an evaluation committee of three persons, at least one
of whom is an engineer, to investigate and evaluate proposals
and make recommendations. The committee should hold interviews
and inquiries as necessary.
• Final selection should be made by the administrator or governing
body of the community, based on the recommendation of the committee.
• Base selection policy on the community's best interest, the com-
mittee's evaluation of proposals, and the capabilities and credi-
bility of the engineering firm.
A firm should meet the following minimum requirements:
• The firm should be of high ethical and professional standing.
• Principal members of the firm must be registered professional
engineers in their state of residence.
89
-------
• A principal member of the firm's staff must have at least ten
year's recent experience in responsible charge of the type of
work involved in the project.
• The firm should have a proven performance record that indicates
accomplishment of past design projects that provided the required
results at a minimum cost.
• The firm must be sensitive to the local community and its environ-
ment to assure complete integration with other operations and
services. We do not need "cook book design," but the task should
be evaluated and designed based on local constraints and require-
ments.
KEY DESIGN REQUIREMENTS
The optimum output of the design phase is a set of plans and specifications
that will permit construction of the project in a manner that provides a
balance of the following elements:
• All costs - initial capital, operations and maintenance,
replacement, etc.
• Design parameters
• New technologies - materials/construction
• Community environment
• Ultimate project requirements/needs
This only can be accomplished through "attention to detail" on all phases
of design. All phases of the project must be included in the plans/
specifications. Emphasize the critical features of the project. At the
same time do not minimize any routine items, so they are taken for granted
and then not accomplished.
The specifications (included with the contract) should contain the minimum
following items plus a complete set of drawings that clearly define the
project to be constructed:
• Instruction to bidders or to contractors if negotiated
• Proposal form - list of items, quantity, unit cost
• Specifications - general
• Special provisions, e.g., project schedule, including phasing,
traffic control, utility schedule, etc.
• Contract
• Labor and materials payments bond
• Performance and maintenance bond
PROJECT CONSTRUCTION ORGANIZATION
Prior to commencing the bidding or negotiation process, the local community,
along with the designer, must decide how the project construction is to be
organized. There are two basic approaches:
• General contractor - all specialty construction provided by a
general contractor through sub-contractors.
• Local community acting as general contractor - all specialty
construction sublet to individual sub-contractors.
The key requirements for determining the approach to be selected are:
90
-------
• The community's ability to direct the project as a general
contractor
• Type of project
• Contractors' capability to act as general contractor
The advantage of the community performing the general contractor's
role is normally one of cost savings through utilization of the best
sub-contractors in each specialty, better scheduling and control of the
project, and elimination of the general contractors' overhead. A project
with several specialty tasks and a tight schedule lends itself to this
approach. A roadway through the center of the community is a typical
example with all the various sub-contractors required, utility needs/
adjustments, community inconveniences, etc.
The decision on who will act as general contractor will have a significant
effect on the content/organization of specifications. Therefore the decision
should be made during the design process and prior to bidding/negotiations.
BIDDING PROCEDURE
The bidding/negotiation process can be formal — public notice in the
local paper requesting submission of closed bids to be opened at a specific
date and time — or informal — request to a minimum of three prospective
contractors to submit proposals.
Normal procedure is to accept the low bidder, if he/she has the capability
to perform the specified task.
Informal negotiation is advantageous for small communities. Procedure
is as follows:
• Submit a request for proposals from selected contractors.
• Review proposals both for cost and capability to perform task.
• Select one contractor - normally the low bidder.
• Evaluate the proposal with the contractor to determine the
specific costs for key items. This type of negotiation may
allow the community to reduce cost by determining if specific
design requirements caused certain higher prices. Subsequently,
redesign or some other procedure might reduce these individual
items, creating a low total project cost and better overall
results.
During this procedure 3 the community must not play one contractor against
the other or future contracting efforts will be jeopardized.
CONTRACTOR RELATIONS
PROJECT SUPERVISION AND INSPECTION
The inspector has the most difficult task in any project. He/she must
control the entire project — monitor its sequence, enforce specifications,
anticipate problems of design, and develop mutual cooperation with the
contractor to insure ultimate project objectives, while maintaining a
tough, rational attitude of expecting quality work without any shortcuts.
The inspector should coordinate closely with the designer to insure an
understanding of the plans/specifications and develop the ability to
react to needed changes based on field conditions or other requirements.
If the design calls for a tolerance of half an inch, the inspector must
insure that the contractor constructs to that tolerance or valuable design
time is wasted (lost dollars) and the end result of the project could ulti-
mately be affected.
The inspector must perform the following tasks:
91
-------
• Review plans and specifications completely with the designer
and on your own.
• Set up a pre-construction conference with the contractor to
coordinate all phases of the project prior to its start. Make
sure- the contractor understands the task to be accomplished.
All other individuals involved in the project must be present
at this conference (public service, gas, telephone, etc.).
• Determine how the contractor intends to sequence the work
effort. Establish starting dates, responsible individuals, sub-
mittal of payment requests, and all other administrative matters.
• Establish your responsibility with contractor and what is expected
of the contractor, e.g., when inspector approval is needed during
the sequence of construction prior to starting the next phase.
• Maintain a daily log - the format should be based on experience
and specific project needs:
~ Identify problems
~ Record work accomplished
~ Quantities of material placed
• Daily summary with the contractor on work accomplished in order to
follow up the next day.
• Maintain a relationship with affected property owners if they are
to be affected by a specific effort of work or just general project
data.
It is recommended that the local community provide this individual as a
member of their staff. If the project requires a specialist for a critical
phase, the designer can normally provide one, but overall inspection
should be the community's responsibility if possible. Finding an indivi-
dual with a wide range of construction inspection techniques may be
difficult, but this individual is a key asset to the community's develop-
ment, whether it is constructing new systems or maintaining the existing
facilities.
BONDING REQUIREMENTS
Both performance and labor/material bonding should be surety secured in the
amount of the estimated constructed cost as approved by the engineer for
all projects. See Appendix H.
Performance bonds will be forfeited if local public pressures warrant com-
munity government participation in completing the project, or if, in the
opinion of the government, the project is not progressing in a satisfactory
manner. These bonds can be released at completion and acceptance of the
project.
Labor/materials bonds - warranty is guaranteed that the construction of the
project was accomplished per specification. The time period for this type
of bond should range between one and two years.
PUBLIC INFORMATION
Inform the general public and the citizens in the immediate project area
of construction plans, schedule of events, potential inconveniences, new
routes of travel if applicable, etc. This will provide you with generally
greater public support for the project, confidence in the local government,
less complaints during construction, and a more efficient total project.
This can be accomplished by several means:
92
-------
• An informal public meeting — shewing construction plans, schedule,
cost, justification for the project
• Newspaper, radio, or television coverage
• Personal contact with affected citizens through community staff
(project inspector)
93
-------
94
-------
31 Housing
Housing, one of the most critical needs in a rapid growth situation, is
the most difficult to provide. Housing must have immediate and sustained
attention if the residential development that takes place is to be pro-
vided when it is needed, where it is most easily served, and in a manner
which will benefit the community. Without a major effort, housing costs
will skyrocket, land speculation will dominate and overcrowded, unattrac-
tive, and inefficient mobile home parks and subdivisions will proliferate.
It will take years to undo the living environment problems created in
the first years of uncontrolled boom. Social problems that are prevalent
in boom situations are compounded by living conditions that are poorly
designed and located, overpriced, and marginal. Existing residents who
are renting are immediate victims of rent inflation. The service employees
required to meet the needs of the basic employment find tremendous gaps
between incomes and rental or housing costs. This includes public and
private employees, i.e., school teachers, police, fire protection, shop-
keepers, and bank employees. The ousing T&sk Ftorce Inventory, Impact
Assessment, and adopted recommendations should be the basis of an action
program designed to prevent problems which can be anticipated and mini-
mize unforeseen or unavoidable problems which occur.
HOUSING AUTHORITY
If a Housing Authority does not exist, members of the Housing Task Force
should be reconvened to assist the town and county to establish a joint
authority. Some members of the Housing Task Force may be well qualified
to serve on the housing authority.
Major Housing Authority responsibilities are as follows:
• Work from the previously completed inventory and impact
assessment to profile potential housing problems.
• Develop a comprehensive program to ensure adequate housing
is provided in line with the community's overall standards
and goals.
• Investigate and apply for state and federal assistance.
• Work with other planning bodies and local government to develop
and enforce effective building and developer controls.
HOUSING STRATEGY AND MAJOR CONCERNS
Anticipate the housing problem. In particular, be aware that subsidized,
as well as market rate housing, will be a necessity even if it's just to
provide housing for elderly who will be caught in the rental crunch. Most
communities can justify a limited number of such subsidized units even
before growth occurs.
Complete state and federal applications for assistance.
Waiting for federal or state agency action, finding builders, and actual
construction can take 24-36+ months to accomplish. State and federal
agencies will provide necessary guidance to develop subsidized housing,
but it takes local initiative to get their help. Other communities in
the state which have provided such housing are also good sources of
information on how to proceed.
Develop a program to preserve and rehabilitate existing housing. This
is the only low cost housing immediately available.
• Fixed or low income people cannot easily obtain loans for rehabili-
tation unless a community program exists. The existing federal/state
programs are inadequate to the task.
95
-------
• Coalitions of local banks and savings and loans can also provide
rehabilitation loan programs. (The City of Boulder, Colorado, has
a program of this kind that might be referred to for ideas.)
Identify and program where new housing developments are needed.
• Tie into the comprehensive land use and utility planning
activities.
• The community should provide the guidelines on where growth is
most acceptable, based on availability of services or logical
areas of expansion.
• Refer to earlier chapters on "Getting Control," "Land Use Planning,"
and "Planning and Policies for Physical Facilities" for discussion
of how to control where development occurs and determining desired
areas for development.
Face the problem of speculation very early -- before the plant or mine
is widely known or construction assured. Uncontrolled speculation will
unjustifiably increase housing costs, withhold needed land from develop-
i ment, and force premature development of non-contiguous areas when the
incoming population presents housing needs which cannot be ignored.
Secure sufficient land at minimum cost served with the necessary public
facilities.
• The community or the energy company should consider immediately
optioning land to preserve it from speculation. This land can
be leased or sold to the private sector when housing is needed
there.
• Surplus federal lands or Bureau of Land Management land adjacent
to the community can also provide an opportunity for controlling
land prices. If this land is made available it should be annexed
to the community and be leased to prevent speculation.
Qualified builders and developers from around the state/region need to
be sought out to make sure the community gets quality products. Do not
accept arguments that it is more important to get units up than to see
that they are provided properly.
• Most rural areas have not had a large enough market to support
large builders. In rapid growth situations, many marginal
developers initially flock into the area. They develop and
move on, leaving their problems with the occupants and the
public agencies.
• The community needs to make use of codes and regulations if
buyers are to avoid being taken. (See Chapter 21 on "Getting
Control" for some specific techniques.)
IMPORTANT CONSIDERATIONS
The lack of mortgage money in impacted communities is an impediment to
housing construction.
• Because housing developments require long term commitments,
lenders want reassurance that the market will continue. The
boom-bust cycle that has frequently characterized the resource
recovery industry (uranium booms, coal booms, oil booms, etc.)
is a limiting factor on getting money away from growing metro-
politan areas and into rural communities.
• State agencies have been established in some Rocky Mountain
states to help overcome this problem.
• Encourage local bankers to lend their expertise in developing
solutions.
96
-------
• Energy company guarantees of a certain number of units are another
approach that has been successful in bringing mortgage and con-
struction money into the communities by removing the risk factor.
The difference between construction phase employeees and permanent employees
associated with the energy project will create special housing needs.
• By anticipating the number of workers at different phases in
project development, a balance of facilities can be programmed
and appropriately phased.
• Coordination between the public sector and the energy company
is needed to determine the cycle of what is needed when, to
avoid wasted expenditures and efforts. This programming should
not be left to the open market place to figure out.
• The greater the difference between construction phase needs and
permanent needs, the more responsibility for temporary facili-
ties and improvements the energy company will have to assume.
Permanent financing from the market place or the public is
unrealistic under such circumstances.
• Site planning can be designed to serve mobile home spaces
initially to be replaced with permanent housing if needed in
the operations phase.
There is a tradeoff between housing costs and growth "paying its own way."
Higher housing costs will surface as higher taxes or rates for revenue-
supported services, burdening existing residents as well as new popula-
tion. Higher initial costs for housing avoid creating much "hidden" costs.
• Subsidies or waivers can be established to avoid placing new
housing beyond the reach of lower income families.
• Past experiences indicate that costs such as plant investment
fees for water, sewer, or park services are legitimate costs
for federally subsidized housing and can be covered as part of
the unit costs.
97
-------
-------
32 Managing Public Facilities
Proper management of a community's physical facilities is essential to
assure the citizens receive the maximum benefit from their planning
efforts and capital investments. Whether or not facilities are properly
managed, the community will spend substantial amounts each year in
personnel and maintenance costs. In the minds of citizens, good manage-
ment practices reflect competence in local government. Such credibility
is an absolute necessity for any community that wants to successfully
manage rapid growth. As in Chapter 25 on "Planning and Policies for
Physical Facilities," special attention will be given to management
of utilities. Bear in mind that the basic management principles that
follow apply to public facilities of all types.
ORGANIZATION AND ACCOUNTABILITY
Clearly designate responsibilities for management of the community's
facilities. The day-to-day operations are best assigned to professional
staff employed by the responsible agency. In cases where full time staff
cannot be justified, and part time staff or consultants are used, it
is important that long-standing relationships develop so that experience
and an understanding of agency policies can be brought to the management
job.
Accountability is especially important. Some individual must feel that
poor management will be identified as his or her own personal failing.
Short term relationships with large, impersonal outside groups often fail
to produce desirable results because of a lack of accountability to the
community.
Beware of developing an organization that is top heavy with policymakers
and adequately staffed with "workers," but has no administrative manage-
ment capability. Such an organization may get facilities built, and keep
the doors open, but routine management tasks (see the remainder of this
chapter) will not get done. The citizens will not get the most out of
their capital investments.
UTILITY ORGANIZATION
Long experience has taught that publicly operated utilities are best run
as enterprises independent from, but coordinated with, other general
government activities. This provides an opportunity to run the utility
"like a business" and discourages the use of the utility for raising
general fund revenues to fund normally tax-supported programs. This
latter use of the utility is not uncommon, but it can create severe
problems of credibility in financing public programs, may be questionable
legally, and can threaten the utility's long run financial viability.
Clear management responsibility should be defined. An individual in the
organization should both have authority and be held accountable for the
utility operation. This person may have other responsibilities as well.
The utility should be organized as a separate accounting entity so that
its revenues and costs are not entangled with those of non-utility
activities.
The utility manager is responsible for:
• Preparing budgets and authorizing expenditures
• Monitoring the adequacy of rate structures
• Supervising plant operation
• Devising operations and maintenance programs
99
-------
• Communicating with other utility professionals in the state,
region, and local area
• Assuring that community development activities take the
utility's needs and circumstances into account
• Recordkeeping
• Relating with other public agencies and activities
• Providing the stimulus for utility planning and capital
improvement plans
• Securing technical and engineering advice as required
A certified operator is also required. The manager may be the operator
or an operator may be shared with another small community or district.
In some cases, operator skills may be obtained from a private company
on a contract basis.
Technical, engineering skills are frequently required as well. It is
important that technical advice be based on a thorough understanding of
the community's overall needs, capabilities, and desires. The utility
system has effects far too broad to rely on a narrow, short-run techni-
cal perspective. For this reason, a continuous and close relationship
with the source of engineering or technical advice is highly desirable.
The utility manager and Council should insist that community development
and financial considerations are a meaningful part of any technical
analysis.
OPERATION AND PROGRAMMING
Develop the idea that you must "market" your public services like a private
business. Both policy makers and managers should be sensitive to what
the citizens want in the way of educational programs, library offerings,
park equipment, recreational programs, and the like.
Avoid giving the community the idea that its public servants are auto-
cratic or unresponsive. Seek input from the community and either respond
or explain why suggestions cannot be followed. Do not try to dictate what
is good for the community.
Recognize that low cost activities and services can be provided by inten-
sively using public buildings and facilities. An empty room or unused
park is wasteful when some beneficial use could be provided.
Work out joint arrangements among independent public agencies and quasi-
public groups to share facilities. The school auditorium might nicely
double as a council chamber or commission hearing room.
Keep records relating to facility use. For example, in the case of the
wastewater utility:
• Accumulate a history of data relating to user characteristics and
plant influent and effluent characteristics. Records should be
continuous and structured to meet the needs of billing, studying
alternative rate systems, and identifying possible sources of
operational problems such as infiltration, plant overloading, or
below standard discharge. Some data is required by federal and
state law through discharge permit requirements or other regulations.
• Data on the number and types of taps, modifications to the collective
system, daily or weekly plant inflow volume, effluent characteristics,
and status of the accounts of each customer are essential. Identi-
fying correlations among data will be extremely useful in achieving
efficient operation. For instance, a correlation between rainfall
and plant inflow can help assess infiltration problems.
100
-------
See Figure 31-1 for forms that illustrate the type of recordkeeping
suggested.
UTILITY EXTENSIONS
As a policy matter, decide where it is most economical and efficient to
provide services, and make it known where the community prefers to see
growth take place. Once the community identifies the area it is willing
and able to serve efficiently, it can achieve its goals by refusing to
provide service elsewhere. It can go even further and provide incentives
by actually building trunk lines into areas where it has determined develop-
ment desirable. This approach must obviously be tied to other community
goals and programs in order to be successful. (Refer to Chapter 21,
"Getting Control.")
Write down utility extension policies and be sure they are acknowledged by
the community legislature. Individual contracts should be used to spell
out the responsibilities of both the utility and the parties requesting
new service. A standard form can usually explain the obligations of each
party in accordance with the extension policy in order for the service
to be provided. (Refer to Appendix F for an example of such a policy.)
The following conditions are frequently included in such contracts and
extension policies:
• All extension of lines to serve new customers should be financed
or paid for by the people requesting service.
• If extensions must pass by undeveloped properties provide a payback
agreement so that an appropriate share of the developers' extension
costs can be recovered as intervening properties are developed.
A time limit of 7 to 10 years should be placed on this reimburse-
ment provision.
• The utility master plgn specifies the desired sizes of trunk
lines (frequently 8" or larger) planned for future installa-
tion in various locations within the service area. When
constructed in phase with the community's program of capital
improvements, these lines should be paid for by the utility. For
extension out of phase with the capital improvement program,
require the developer to install whatever size lines are speci-
fied in the utility plan, even if the lines are oversize for
the development. At the time when the oversize line was origi-
nally planned for installation by the utility, the developer
should be reimbursed for the additional cost for putting in the
larger line.
• Identify special circumstances that may arise with expansion of
the collection system and adopt a specific policy regarding res-
ponsibilities and costs. To the extent possible, on-the-spot
negotiations with the developer should be avoided.
• Engineering standards for the system design, including pipe
materials, jointing and fitting, manholes, etc., should be written
and all system expansions should follow these desired standards.
• Charge plant investment fees to all new customers who tap into the
system.
Require all new developments to provide their own basic system. Internal
or local lines required to serve a new subdivision, industrial park, or
shopping area should be provided by the developer in accordance with
the system's master plan. The developer may directly finance and build these
lines and pass on costs to the future occupants; or, where occupancy is
assured, the community may permit formation of a special improvement district
to finance the improvements. In any event, the cost of these facilities
should not be borne by the community at large.
Competition among communities can destroy the effectiveness of a sound
management program. Unless the program reflects regional concerns and is
101
-------
consistent in application, particularly between cities and the county,
the program may not work. If the city has standards for service and a
proposed development can circumvent those guidelines by locating in the
county, by starting a special district, or by putting in a package plant,
the program will be jeopardized. Inter-governmental cooperation is
essential.
Public services that directly benefit specific individuals may be sold
at prices to at least recover the direct operating costs involved in
their supply. This might include water and sanitation services, certain
recreational activities, and building inspection and plan checking ser-
vices. This approach not only assures equitable financing, but also
encourages efficient use of the community's resources.
Balance these advantages with the administrative costs of assessing
and collecting user charges. For example, sometimes it is not economical
to have to install water meters to monitor use. In this case fixed rate
user charges can be applied that nevertheless relate to the overall com-
munity costs for supplying water.
Refer to Chapters 25 and 27 for related discussions on financing.
MAINTENANCE PROGRAMS
Once public facilities are built, they are often put aside as community
concerns, and allowed to run down and deteriorate until they can be
replaced. Obtaining and sustaining an annual budget for maintenance is
notoriously difficult. The best approach is to formalize a maintenance
and rehabilitation program and build the cost into the user fee structure.
Then commit to the overall program. For example, if the collection
system has 400 bad joints and replacement is cost effective, consider a
program whereby 40 are replaced each year. Once initial funding is
accepted as including maintenance, the activity will stand much more
chance of obtaining funding each year without a complete rejustification.
102
-------
PAGE NOT
AVAILABLE
DIGITALLY
-------
PAGE NOT
AVAILABLE
DIGITALLY
-------
NOTES
IfllH
-------
-------
33 Managing Financial Resources
(Accounting and Control)
The accounting system is the foundation of all community financial programs.
Detailed knowledge of how much money is coming in and being spent, its
source, timing and accountability is essential in managing even the smallest
enterprise. The payment of bills, and personnel, and the collection of
revenues are ongoing requirements that should be done efficiently and with-
out errors. Periodic financial reporting is an important information element
required.
The accounting system and information should be used. Legal requirements
may dictate collection, but little is gained in improved community manage-
ment. Utilize the work already being done in data collection in reporting,
auditing and control activities.
KEEP ACCOUNTING SYSTEMS BASIC AND SIMPLE
Minimize the number of accounting funds. Minimize the number of bank accounts.
Minimize the number of accounting categories.
Don't get too technical or sophisticated. Take a practical approach — what
"the book" says is often too theoretical for a small growing municipality.
For example, you will probably want to stay away from complicated encumbrance
systems.
Always remember — the objective of the accounting system is to provide
timely and understandable data to management so that better decisions can
be made.
KEEP CURRENT
Do not get behind with "monthly maintenance" of Accounting Systems. Deposit
cash and checks daily. Bill and collect receivables promptly — in a firm
but reasonable manner.
• This can build respect for municipality.
• Use a "Master Charge" approach — 1-1/2% per month finance charge.
• Use return envelopes
• Send out statements a few days before the end of the month.
• Printed "reminder" and "delinquent" notes can help.
• Do not let collections fall behind.
Get in the habit of paying bills on time.
• This builds respect for the municipality.
• Provides for more accurate financial reports.
Journalize and post ledgers as soon after the end of the month as possible
(Computer Service Bureaus can help).
• Set deadlines (2-4th of month) for posting and try to stick to them no
matter what.
• Deadlines will get people in the habit of using time efficiently and will
force them to do things during the month in anticipation of the posting
deadline.
105
-------
Reconcile all balance sheet accounts as soon as ledgers are posted and prior
to preparing financial statements.
• Cash
• Investments
• Receivables
• Payables and payroll liabilities
Edit all revenue and expenditure accounts for accuracy prior to preparing
financial reports.
FINANCIAL REPORTS
Ask councils, staff, etc., what information they are interested in and what
information they are not interested in.
Revenue and expenditure reports that compare actual revenues and expenditures
with budgeted amounts should be prepared and reviewed with councils and staff
to analyze any existing or projected budget variances.
• Reports should at least be prepared quarterly.
• Monthly reports recommended for larger, more complex municipalities.
A concise narrative report highlighting the revenue and expenditure report
should accompany the "numbers" report.
Most people do not like to read numbers.
A narrative report (backed by financial report) is usually more effective.
Make a point to communicate personally with each department head about the
status of his department's finances.
INDEPENDENT AUDITORS
Do not fear independent auditors — they are human and are trained to not go
strictly "by the book."
Let the auditors know that the municipality realizes the importance of main-
taining accurate and organized accounting records and that the objective of
the municipality is to obtain only "unqualified" audit opinions.
• This approach will result in fewer audit report "surprises" and will build
a team approach to the annual audit examination.
• Ask auditors what the municipality must do to obtain MFOA Certificate of
Conformance — it is usually easier for a smaller municipality to obtain
this award than a larger municipality.
• Instruct the auditors to prepare financial statements in compliance with
"Blue Book" standards.
• Request that auditors review the audit report and management letter with
council. Remember — auditors work for councils, not staff!
• Request that auditors thoroughly review the "insurance in force" annually
and review their findings with the Cbuncil.
• Request that auditors set up simple internal control systems with staff.
COMPUTER SERVICE BUREAUS
Do not be afraid of using Computer Service Bureaus — they can save time and
money and result in more accurate and timely financial reports while strength-
ening the system of internal control.
106
-------
A municipality can benefit from using a Computer Service Bureau without
understanding how a computer works, hiring a programmer, or hiring a key-
puncher.
Computer Service Bureau applications should be considered for:
• Payroll
• Utility billing
• General ledger maintenance and financial report preparation
Don't try too many new applications at one time.
• Applications should be phased over a 1-2-3 year period.
• Computer Service Bureau output must be monitored — edited for'accuracy.
107
-------
..v c°
-------
34 Managing Cash Resources
Although most local governments are required to adopt a balanced budget each
year, there may be significant amounts of cash available for investment at
some time. In recent years, as interest rates have climbed, revenues from
investment of temporarily idle funds have become an important source of
government income.
There is another reason for carefully managing cash resources. Citizens,
especially bankers and businessmen, equate careful cash management with good
business management. If a local government leaves larger-than-necessary
balances in its local bank accounts, although a bank stands to profit from
the practice, the bankers will inevitably come to view the town's clerk,
treasurer, or finance director as an "easy mark," who is naive regarding
good business practices. This attitude will undercut the government's
efforts to lead the community, and especially erode its credibility with
the business and financial communities.
Careful cash management is more than simply identifying and investing idle
cash balances. It should also aim to increase investable balances by adopt-
ing measures (1) to encourage prompt payment of bills issued by the govern-
ment; (2) to delay payment of bills received until they are due, or within
such time that a discount is offered; and (3) to maximize investment returns
through the careful choice of investment returns within the constraints
imposed by the community's need for liquidity.
DO YOU NEED A CASH MANAGEMENT PROGRAM?
Before you start a cash management program, get a feel for increased earning
potential.
• Obtain daily bank balances for every operating, noninterest earning
account for the previous year (sometimes only weekly or monthly figures
will be available — work with what you can get).
• Unless there is a negotiated agreement to leave certain balances with the
bank to pay for specified services, the total funds in all accounts could
potentially have been invested.
• Compute an average daily, weekly, or monthly balance for the year. Take
5% of the amount to get a rough idea of what you might have earned with
an effective cash management program. Be aware that it is usually not
possible to invest 100% of your balance — 70%-80% is more probable.
Thus, you might multiply your computed potential earnings by 70%-80%.
On the other hand, by fully using all aspects of good cash management
you may increase the initial balance you are able to invest. So your
first figure may actually be low.
SETTING UP A CASH MANAGEMENT PROGRAM
A single individual can most effectively administer the Cash Management
program. Review of this handbook may familiarize him/her with concepts and
with problems that might be encountered.
The responsible person's first step should be a thorough review of existing
procedures.
• Look at average idle balances during the previous year. (Compute them
as above, if this wasn't done before).
• Check a sample of deposit slips to determine the average delay in deposit
of cash received by the city/county from various sources.
• Check a sample of payments to determine if bills are paid too soon, or
if discounts for early payment are overlooked.
109
-------
• Review the procedures for how payments are initiated within the organiza-
tion. Identify changes that might facilitate efforts to fine tune the
timing of payments.
• Identify investment earnings and yields for the previous year. Check
them against potential yields for similar term investments in U.S.
Government securities or securities of U.S. Government agencies. These
are usually feasible investments for community funds and should set the
standard for interest earnings.
• Check typical maturities of securities purchased. If they are all short
term, note what higher yields might have been obtained with longer maturi-
ties .
Review the existing procedures and ideas you have for improvements with
local bankers.
• This will encourage their support as well as provide a valuable source
of advice.
• Exercise care in inviting a representative from each local bank. Do not
invite bankers from large cities or investment house brokers, as this may
threaten local representatives.
• Begin the meeting by making clear that you are only seeking advice for
developing your program and policies, and are not trying to reach deposit
or investment arrangements at this stage.
• Brief representatives on your existing system. They may wish to comment
immediately or confer with their staffs and respond later.
• You will likely want to communicate with them later in the process when
the government is selecting its bank (see below).
BASIC PRINCIPLES OF A GOOD CASH MANAGEMENT PROGRAM
Flexibility - Build flexibility into your cash management program. Avoid
fixed rules regarding the use of particular banks or types of investments.
Under constantly changing circumstances, allow yourself to make decisions
which will best serve the overall objectives of the community.
For example, you may want to invest with a bank that doesn't offer the top
investment return, but is willing to assist you in maximizing available
investment funds.
Find out if a bank may agree to automatically loan you sufficient short
term funds to cover an operating account overdraft. This allows you to
minimize operating balances without necessitating costly efforts to fore-
cast and to control receipts and disbursements.
Consolidation - Just as an individual can keep better personal finance
records if all funds are in one account, a local government can keep better
track of cash flows if accounts are as consolidated as possible.
In many governmental units, each collecting agency deposits receipts in a
"private" bank account. Separate bank accounts may be held by the municipal
clerk, the tax collector, utilities, etc.
For investment purposes, consider consolidating all cash into one or a
limited number of general accounts. Pooling cash allows your cash manager
to keep easy track of cash flows, minimize cash balances, and maximize
available investment funds.
If you consolidate, design your accounting system to reflect the respective
cash balance, deposits, and withdrawals of each fund being consolidated.
Before you pool special funds, review specific state statutes, ordinances,
and charter provisions regulating their use.
Determine interest distribution early in the investment program.
110
-------
• You may treat interest of some funds as current revenue which accrues
to the general fund.
• You may prorate interest back to each fund based on its monthly or quarter-
ly cash balance.
• As above, review state statutes, etc., regarding regulations for interest
on special funds.
Forecasting - Most cash management systems utilize some method to forecast
daily or weekly minimum bank balance. This is the investable amount.
Include the float — the amount of uncashed, outstanding checks. By always
focusing on the bank's balance, and not the balance shown on agencies' books,
you can invest the float amount.
In some cases, you can invest most available balances with minimal forecasting,
e.g., when a bank will agree to cover overdrafts with short term loans.
CASH MANAGEMENT PROCEDURES
Whether or not banks will cover occasional overdrafts, you will need to
adopt a system for projecting cash flows.
Some receipts and disbursements can be readily forecast, such as payroll
and scheduled outlays on construction contracts. Estimate others based on
historical experience.
The best approach is to make up a form for a cash flow forecast similar to
that shown in Figure 34-1. Fill it out as completely as possible. A look
at historical receipts/disbursements will help you avoid overlooking important
items.
Following this procedure, the calculated closing balances are the amounts
available for investment.
• The minimum closing balance for the entire year can be invested for the
full year.
• Other months may show balances larger than the minimum throughout the
year. Plan these amounts for investment from their availability until
the beginning of the month when they will be needed.
Note that the above procedure does not directly account for the float. To
estimate float, review the average amount by which the bank's account balances
have exceeded the agency's book balance on a daily basis over the past y r.
It may help to relate the float experienced in the past to particular iti' ihs
and/or the level of disbursements made during the month.
One word of caution: In some agencies, bills are paid but once or twice
monthly. In such a case, the float will rise immediately after checks are
written, then eventually fall to zero. Float is only available on a continu-
ing basis when checks are being written continuously.
Increase the minimum monthly balance forecast by the minimum monthly float
to arrive at investable funds for the period.
This very same procedure can be structured to examine weekly or daily cash
balances with a resulting improvement in information as to investable funds
during the month or week.
In addition to analyzing cash flows and pooling cash, you can use other tech-
niques to maximize cash available for investment.
• Process receipts on the day they are received and deposit them as promptly
as possible.
Ill
-------
FIGURE 34-1: SAMPLE FORM FOR CASH FORECAST
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
CASH RECEIPTS
Taxes Collected
State Taxes
Utility Revenue
Fees and Fines
Other
Total Receipts
CASH DISBURSEMENTS
Legislative and
Judicial
Police and Fire
Utilities and Public
Works
Capital Outlay
Financial Obligations
Other
Total Disbursements
EXCESS RECEIPTS
(DISBURSEMENTS)
CASH BALANCE
Opening Balance
Change During Period
Closing Balance
112
-------
• Process billing of accounts rapidly to speed payments. In some municipali-
ties automatic data processing may further increase billing speed and the
registering of payments. The earlier revenue is received, the more time
there is to invest it before it is needed for disbursement. Vigorously
pursue late payments just like a business would.
• Hold disbursements as long as practicable without overrunning due dates
or endangering vendor relations. If accumulative disbursements exceed
accumulative revenue at some part of the fiscal year, you might rearrange
to receive some revenue earlier.
• Constantly monitor the cash balance tallied daily by the municipality as
compared with the bank's current machine tally (the difference being the
"float").
• In municipal disbursements you may use warrants to take advantage of
float. The payment of a warrant reduces the earning base (the money
available for investment) at the time of payment but not before.
~ In contrast to this is the disbursement of money by means of checks
drawn on bank. When a check is written, the bank balance and the
earning base are reduced immediately. The municipality loses money
when some checks remain outstanding for several weeks.
~ Another advantage of the warrant system is that it takes less admini-
stration on the part of the bank.
• Paying a fee to banks for services rendered instead of maintaining a
"compensating balance" will free up the money held in compensating
balances for short term investment. Be aware of what you are paying the
banks for services rendered.
BANK SELECTION
The full service commercial bank is probably the finance officer's best ally
in the investment process.
• As dealers in the money market, banks provide a logical source of informa-
tion and advice for municipal officials on new issues, changing markets,
and promising investment possibilities. A bank may also provide for the
delivery, custody, and safekeeping of securities.
• An investment officer can make a purchase or sale with one phone call.
The bank will place the order, negotiate the price, and, subject to
municipal approval, close the transaction, arrange for delivery, and
deposit securities in the vault.
In selecting a bank(s) there are at least three approaches:
You may deposit a portion of your funds in each bank in the community.
~ This permits all banks to receive municipal business and you avoid
charges of favoritism.
~ On the other hand, you are unable to take full advantage of higher
interest rates which may be offered by one bank in the community or by
a bank outside.
~ In addition, such decentralization can result in high administrative
costs.
• You may place all funds with a single bank and rotate banks on an annual
basis.
~ This procedure can improve your bargaining position for bank services
and at the same time assure each bank in the community that it will
have an opportunity to hold municipal funds.
113
-------
~ There are several disadvantages in this method. It precludes changing
banks during the year to take advantage of better interest rates and
also excludes the use of banks external to the municipality.
~ Another disadvantage is that no lasting continuity in banking services
and relationships can be established when a different bank is selected
each year.
• Another approach is to award the municipal account to a single bank on a
bid basis.
~ In this instance you write specifications for desired banking services
and ask interested banks to submit bids on the specifications (a varia-
tion is simply to request banks to list available services and quote
terms). The municipality then offers its account to the bank with
the lowest bid or the most attractive combination of services and terms.
~ The chief advantage of this competitive approach is the maximization
of interest earned and banking services received.
An additional question in bank selection is whether to deposit municipal
funds in a local bank(s) if the terms and services of a bank outside the
community are superior. The argument is that investment in local banks
produces growth and returns capital, in the form of loans, for the use of
some residents in the municipality. This contention must be weighed by each
municipality against the desirability of maximizing investment returns for
the benefit of all residents.
CRITERIA FOR CHOOSING INVESTMENTS
A government agency can make many different investments. Table 34-1 lists
some of the more common. Choose individual securities based on:
• Legality and safety (consult the Town or County Attorney on relevant
state and municipal regulations).
Liquidity
~ Liquidity is the ability to convert a security into cash promptly with
minimum risk of principal.
~ An emergency makes the importance of a liquid investment portfolio
clear.
~ If you must sell investments prior to maturity to obtain cash quickly,
you will likely retain interest already accured. Market conditions
will dictate what you will gain by the sale.
• Maturity. Maturity can have a significant bearing on liquidity. The key
factor is whether investments can be sold prior to their due date.
The varying maturities of available investments is one of your more important
areas of latitude in the investment process. Here you oan develop the mix
of investments that best suits your community's needs.
~ Investments such as non-negotiable certificates of deposit must be
held until maturity. Liquidation of CD's before maturity may result
in forfeiture of some interest.
~ Some investments, such as U.S. Treasury offerings, can be sold prior
to maturity. Their active secondary market makes the sale of these
investments relatively easy. At times, you may even wish to sell such
investments early to take advantage of market conditions that can
bring higher returns than if you held them until maturity.
~ Buy and sell investments based on the information you received from
the cash analysis process.
114
-------
TABLE 34-1: INVESTMENT MEDIA
Type
Issues and Maturities
Denominations
Restrictions
Marketability
Bank Deposits
Savings Accounts
Issued for any maturity
No Minimum
Yields are generally
b*low those of
other investments.
Negotiable
Certificates of Deposit
Issued upon demand as
selected by purchaser.
No Minimum
Requires administra-
tive burden of con-
tractual agreements.
Non-negotiable
Repurchase Agreements
Issued upon demand for
1 to 30 days under
normal circumstances.
J 100,000
Minimum (Varies
with some banks)
Yields generally below
prevailing interest rates.
No Secondary
Market
Federal Azencv Issues
Banks for Cooperatives
Debentures
Issued most months for
180 days. Matures on
first working day of
month.
$5,000 Minimum
Not legal obligations
of or guaranteed by
the Federal govern-
ment
Active Secondary
Market
Federal Home Loan
Bank Notes
Issued irregularly with
8 to 10 maturiues of
less than 1 year
$5,000 Minimum
Not legal obligations
of or guaranteed by
the Federal govern-
ment.
Acuve Secondary
Market
Federal Intermediate
Credit Bank Debentures
Issued monthly, usually
for a 9 month duration.
$5,000 Minimum
Not legal obligations
of or guaranteed by
the Federal govern-
ment.
Active Secondary
Market
Federal Land Banks
Issued irregularly for
periods of a few months
to 10 years.
SI,000 Minimum
Not legal obligations
of or guaranteed by
the Federal govern-
ment.
Active Secondary
Market
FNMA and GMNA
Issued about 4 times
a year for periods of a
few months to 8 years.
SI,000 Minimum
Not legal obligations
of or guaranteed by
the Federal govern-
ment.
Active Secondary
Market
FNMA Short Term
Notes
Issued daily for 30 to
270 days, as selected
by purchaser.
$2,000 Minimum
Not legal obligations
of or guaranteed by
the Federal govern-
ment.
Active Secondary
Market
Tennessee Valley
Authority Notes
Issued monthly for about
120 days.
$5,000 Minimum
Not legal obligations
of or guaranteed by
the Federal govern-
ment
Active Secondary
Market
U. S. Treasury Securities
:
Treasury Bills
Issued weekly with
maturities up to 1
year.
$10,000 Minimum
Short issues not
always available.
Broadest Secondary
Market of any
instrument.
Treasury Notes
Issued with maturities
ranging from 1 to 7
years.
$ 1,000 Minimum
Short issues not
always available.
Active Secondary
Market
Treasury Bonds
Issued with maturities
ranging from 5 to 30
yean.
S500 Minimum
Statutory limit of
4V4% on coupon rate.
Active Secondary
Market
115
-------
~ Buy and sell investments based on the information you received from
the cash analysis process.
~ You may arrange for a range of investments sequentially reaching matu-
rity if a series of expenditures has been forecast or you may have a
diversified investment portfolio characterized by varying maturity dates.
In these respects, the selection of maturities represents a real opportunity
for comprehensive planning and a safety valve for unexpected contingencies.
• Yield. After safety of principal and liquidity have received proper
consideration, the selection of investments providing maximum earnings
may be made. Maximized earnings occur as the result of high yields.
Yield is the annual income return on an investment, expressed as a per-
centage. Evaluate investments on the basis of net yield which is the
current income yield minus any premium above par or plus any discount
from par in purchase price, with the adjustment spread over the period
from the date of purchase to the date of maturity of the investment.
116
-------
NOTES
-------
-------
35 Organizing
Human Resources
As a community grows, it becomes important for the various actors in
local government to assume formalized roles. In smaller communities where
growth pressures are nonexistent, there is usually a very comfortable re-
lationship between the legislative body, its advisory boards, and the
relatively few staff. Much can be transacted at coffee or by informal
visits. Unfortunately, as pressures of growth begin to occur, this in-
formal relationship changes and the actual day-to-day operation of a
community or local government can become very difficult. As additional
staff are hired to manage the community or new citizen groups organized,
it is important for the relation between the legislative body, advisory
boards, and the staff and the citizens groups to be clearly articulated
in order to mount an effective community management effort.
This chapter discusses major groups and their roles in the management
process.
LEGISLATIVE BODY
The fundamental job of the legislative body is to provide leadership to
the community and develop policy. They need to set the direction of
the community and be responsive to citizens' interests and needs. They
must assure that the community is capable of functioning in an efficient
and effective manner.
The focal point of the legislative body's leadership role is the mayor
or commission chairman:
In order to carry out its responsibilities in a growing community, the
legislative body must utilize the assistance of its advisory boards and
staff. It cannot be both policy-maker and staff and hope to successfully
manage growth.
A highly efficient community is one in which the Council, advisory boards,
and staff work together closely. Communication is paramount to effective-
ness. The legislative body should give the staff clearly defined respon-
sibilityj and should expect them to carry it out. Flexibility is highly
desirable, but not at the expense of efficient performance. The joy of
governing should be in setting high standards and clear policies and
having advisory boards and staff that will come up with innovative ways
to achieve them. It is no more, no less than what can be expected if the
legislative body performs their policy making task.
ADVISORY BOARDS
Advisory boards act on specific tcsks for the legislative body. Their
role is to investigate items in giec^er depth than the Council or legis-
lative body has time to pursue. Examples are planning boards, library
boards, park and recreational boards, water boards, or human resource
boards. The types of boards vary from community to community.
In order to obtain citizen involvement, the role of the board must be
clearly articulated by the legislative body. Many community charters
clearly set out the role, responsibilities, duties, and powers of such
boards. In other communities advisory boards are established and serve
entirely at the request of the legislative body. In addition, certain
federal and state programs require that local advisory boards be created
to assure citizen input into local government decisions.
It is essential that the legislative body utilize advisory boards to
their fullest extent. Their advice must be listened to. To accomplish
this, the city or Town Council or County Commissioners should meet
119
-------
annually with their advisory boards to discuss mutual interests and
concerns. Close communication with and effective utilization of advisory
boards can greatly increase the quality of local government.
STAFF
The administrative staff in a growing community is frequently faced with
great difficulties:
• The staff is not experienced in dealing with rapid growth
situations.
• Professional consultants who come into the community may or may not
do a good job.
• Pressures for action and more sophisticated technology come from
all sides — citizens, developers, the Council, and industry —
as the community grows. For example, where formerly sewer lagoons
requiring a minimum of operation may have sufficed, now the com-
munity may have to move to a mechanical treatment facility requiring
skilled staff seven days a week to meet the needs of growth.
The staff's role is to carry out the policies set by the legislative body.
They should also act as a liaison between the citizens' concerns as
they develop and the advisory boards and Council.
The staff should display initiative in their particular field by bringing
new ideas and concepts before the legislative body. But they should not
begin to set policy. Policy making is the elected legislative body's
role.
ADVICE ON HIRING PROFESSIONAL STAFF
Exercise great care in expanding governmental staff. Organizational and
administrative problems can grow when new positions and departments are
created rapidly. Often the solution lies in becoming better organized,
focusing on the most important tasks, and possibly dropping useless
activities. Nongovernmental groups should also be turned to for appro-
priate jobs.
Areas which do need professional employees are finance/administration,
planning, and utility management. These positions can form the core
management team. Other staff members may be deemed necessary — but
careful consideration of how much they are needed and how else the job
might be done should precede a final decision to hire new staff.
For key positions where staff are deemed necessary, the legislative body
is encouraged to hire skilled professionals with experience. In a rapid
growth situation extremely high sums of money are spent for facilities,
services, and professional advice. A nonprofessional cannot be expected
to exercise the type of control and provide and advice necessary for
maximum utilization of public funds and protection of the quality of life.
Salaries will have to reflect national competition for top people. This
is very difficult for a community which has a tradition of low governmental
salaries. However, it will be far cheaper and more beneficial in the long
run to pay for skill and experience than to hire a well-intentioned but
untrained individual to fill a new position.
CITIZENS' GROUPS
Neighborhood groups, task forces, vested interest groups, community
organizations, all perform a valuable function in a growing community.
These groups should be listened to and utilized to the fullest extent,
and their information put into the larger context of the overall community.
Refer to Chapter 20 on "Coordinating Nongovernmental Groups" in this
handbook.
120
-------
NOTES
-------
HOW MUCH IMPACT?
122
-------
36 Using Outside Resources
Professionals who are not an ongoing part of the community management
process can often be used to assist the community's efforts. These
might include specialized bond attornies, municipal bond advisors, en-
gineering and management consultants, university professors, or employees
of other organizations who are concerned with local government problems,
e.g., certain state or federal government officials, the in-state personnel
of professional organizations and energy company employees. Successfully
using their resources poses the strictest test of whether or not the com-
munity knows what it wants. When it does not, valuable time is wasted
and freguently larger expenses or other costlv commitment are incurred.
CLARIFY YOUR OBJECTIVES
Before contacting any outside resources, know what it is you want to
accomplish. This is essential if you are to avoid the classic problem
of being handed a solution to the wrong problem. This does not mean
you must know what the end product will be. Your immediate objective
may be to define the problem.
Concern yourself less with the procedures an advisor may employ than with
the end product. Let the advisor use his/her own methods so long as it
suits the final outcome desired.
Plan on working with outside advisors to give them the benefit of your
experience and knowledge of what will work, and what won't work in your
community. It is tempting to feel that by hiring a consultant to deal
with a sticky problem you have solved the problem. This is rarely true.
Be realistic about what an advisor can accomplish.
Retain outside advisors who are equipped to do the job at hand. Often-
times, unexperienced help (such as college students) is valuable. But
avoid underestimating the job and thereby having to do it twice.
SEEK EXPERIENCE
Typically it is difficult to chose the best qualified source for outside
assistance. One rule that tends to hold true is to seek advisors who are
experienced in your problem area.
• You can look at previous work efforts and talk with past clients.
• You will not be a training ground, but can benefit from the
advisor's past mistakes.
When selecting an advisor, be sure you find out who will be doing the work.
Oftentimes, it is someone other than the person presenting a proposal.
You may wind up with inexperienced staff.
ACCOUNTABILITY
Try to make outside resources accountable for their work. Be sure that
the job to be done is well-defined, that the basis for your costs is
spelled-out, and that a schedule is adopted. Usually, a letter of agree-
ment is sufficient and lengthly contracts with pages of boilerplate are
not necessary.
An outside advisor's feeling of accountability is related to his/her
commitment to the community. When only a single short-term project is
involved, there may be less commitment than when there is more at stake.
This suggests that, when possible, a standing relationship should be
sought with advisors. Let them live with their (your) mistakes.
123
-------
PROCEDURES FOR SELECTING OUTSIDE ADVISORS
When you hire, or in any other way retain, professional advisors, you are
obtaining human skills and experience to deal with your problems. You
should never purchase "packaged solutions." Most likely these will not
fit your community. Focus your selection on obtaining the right people
for your problem and your community.
Rely more on personal interviews and references from persons whose
judgment you can trust than on written proposals. Written proposals
may form the basis of a working agreement, but typically give you
little indication of the overall product you will receive. Sometimes,
solutions are prematurely locked-in during proposal writing.
Decide whether or not you can benefit by going through a formal selection
process. It may be required by law, or you may feel uncomfortable in
selecting advisors without a competition. On the other hand, a formal
competition is costly, time-consuming, and demands that you know pre-
cisely what you want. Sometimes selecting a trusted advisor first,
then clearly defining his/her task is more practical.
When selecting advisors via a competition, do not solicit price competi-
tion. Figure what you can spend and make the amount known when proposals
are requested. Let the respondants indicate what can and cannot be done
within the budget.
Don't ask for lengthly proposals. There is usually little of value in
proposals relative to the selection process. Rather, ask for letters of
interest. Solicit the proposer's experience in the problem area, names
and backgrounds of those who would do the work, and knowledge of the
area. Select the three or four best and hold interviews. Stress that
you want to see those who will do the work. Use a committee of affected
staff and perhaps legislators or advisory board members to conduct the
interviews, and make the selection. Structure the committee to reflect
diverse views on controversial issues.
ONGOING LIAISON/FOLLOW-UP
Appoint specific staff to work with consultants and advisors. Inform
advisors of new developments that may affect the project. Being
accessible will save you money and improve the product.
Frequently, good ideas, information, or proposed legislation developed
with intensive study are ineffective because of improper follow up.
Expect such efforts to simply set the stage for further activity in
implementation aod administration. Seldom does a major study solve
a community problem by "putting it to bed."
124
-------
NOTES
-------
-------
37 Follow Up
Community members, local government, and staff who have become involved
in the process of setting goals and developing implementation plans will
likely be very interested in "what will happen next." New developments
from the energy industry and implementation programs, testing goal state-
ments and achieving programs will keep some of the original Community
Impact Committee and task force members, as well as the legislative body
and staff, concerned about the impact management process and the details
of how it is working.
Following up is the process of keeping people informed, keeping on top
of new industry developments, and asking, "Does this work? How well?" —
with the final outcome of updated plans aimed at filling any gaps and
addressing problems which have occurred. Hopefully all citizens will
be interested, concerned and will follow the "progress" of their community
in coping.
KEEPING THE COMMUNITY INFORMED
Depending on the nature and needs of the community, what has happened
in the previous community involvement process, and the extent of the
impacts the community expects to experience, the Community Impact Com-
mittee may continue as an informal effort to stay on top of new energy
developments and bring them to the community's attention.
The number and timing of energy projects impacting the community may
make a significant difference here. For example, Craig, Colorado, and
Rock Springs, Wyoming, are being impacted by a number of developments,
creating a continually changing and complex situation which requires
constant updating. On the other hand, a single energy project might
make the community-wide intense involvement process more of a one-shot
affair.
Should the Community Impact Committee continue, its activities might
include:
• Keeping a liaison with the energy company(ies) to find out
about any new project developments as soon as possible.
• Meeting periodically on a regular schedule to review any new
developments and discuss future actions.
• Preparing a newsletter or an article for the local newspaper
on a regular basis
• Holding an annual community meeting to discuss progress or
calling a special meeting if a major new development is
expected to take place
• Acting as a resource and information group for the legislative
body and staff to use, concerning community goals and energy
project-related activities.
The committee should also develop a way to appoint new members, either to
replace a member who is resigning or as a regular way to bring in fresh
ideas.
Remember': Whether or not your community continues the committee, and what
it should do, depend on your own community 'b needs and desires, the nature
of the interaction between the committee and local government, and the
desire of existing committee members to continue their commitment.
127
-------
KEEPING ON TOP OF INDUSTRY DEVELOPMENTS
The Community Impact Committee and/or local government and staff should
continually update their picture of anticipated changes as new industry
developments occur. Good communication between the community and the
industry is essential to intelligent planning to avoid being overwhelmed
by impact-related growth. The advantage of having industry as a member
of the Community Impact Committee is that adjustments in industry plans
have a direct pipeline into the system. Special efforts on someone's
part do not have to be made to "check up" on industry thinking.
KEEPING ON TOP OF ACTION PLANS
Action programs set in motion by the community to meet the growth challenge
will now be tested as programs get underway and new population comes into
the community needing the sewer lines, housing, recreation programs, etc.
The legislative body, staff, and all concerned members of the community
should continually access the effectiveness of the programs that have
come out of their work, the stated goals, and the details of those programs
in light of their problems or success. Some guideline questions might be:
• Are they working or being used?
• If a program was set up to meet a particular goal — is that
goal being met?
• What problems are highly visible? Is there a problem which is
supposed to address any such problem? Was no program developed
because the problem was not anticipated?
• Based on personal knowledge of a given program or use of a stated
policy or code — how is it working? Are there gaps in the program
or policy? Are there gaps in carrying out of a program or policy?
Why?
• Is there anything that has turned out to be unnecessary? How
might resources going to an unnecessary project be directed in
more positive ways?
• Is the process functioning or is it frustrating people with
delays, indecision, needless extra costs?
• Are the goals and policies being used on a regular basis to
evaluate decisions against?
• Are the details being considered?
UPDATING PLANS
Prior to annual capital improvements programming and budget preparation,
each governmental department or agency in the community should look at
the following areas for reevaluation:
• Its efforts and results over the past year
• Changes in the community's attitudes or values and related
trends which affect its particular field
• Changes which appear to be warranted in particular standards,
plans, goals, or functions related to its activity
• Suggestions for improvement, needs for change, and directions
to keep going in, as brought up by citizens or the government
as discussed above
The annual review described above should be brief and focus primarily on
details of programs and procedures.
128
-------
A formal reevaluation should occur every five years or after major
changes have occurred, i.e., construction phase completed, new industry
or mine proposed, major changes in employment levels, etc. At these
times, a total comprehensive community-wide evaluation of overall goals,
policies, and plans should occur, and any necessary changes in goal
statements or community direction be made.
129
-------
130
-------
Appendices: Part III
13.1
-------
APPENDIX D
GOVERNMENTAL AND NON-GOVERNMENTAL AGREEMENTS
132
-------
CONTRACT
THIS CONTRACT dated this / day of February 1977 is between the City
of Roulder, a Colorado municipal corporation, hereinafter referred to as "City"
and Boulder County Legal Services, Inc., a Colorado nonprofit corporation, herein-
after referred to as "Agency."
RECITALS
WHEREAS, the City is cognizant of the needs of indigent and low income persons
for free or low cost legal counsel and education regarding their rights and the
laws which affect them and,
WHEREAS, the Agency has an.operation which the City believes will satisfy
some of these needs;
COVENANTS
NOW THEREFORE, the City and the Agency do mutually agree as follows:
I. The Agency shall perform and furnish the following services in a manner subject
to the approval of the City through its Director of Human Resources Development:
A. Establish and maintain offices with staff available to provide civil legal
assistance to indigent residents of Boulder in areas such as family law,
administrative law, and miscellaneous categories.
1. Individual representation of eligible clients by two staff attorneys."
2. Referral of no fee and reduced fee clients to participating members
of the Foulder County Bar Association.
3. A monthly pro se nou-contested dissolution clinic.
A. Outreach to senior citizens.
B. Community education and preventive law projects.
C. The Agency is to operate in substantial accord with its application for
funding, a copy of which is attached hereto as Appendix A.
133
-------
II. The terra of this contract is for one year, from January 1, 1977 through
December 31, 1977 and City shall pay the maximum sum of Ten thousand forty
dollars ($10,040). Such sum shall be paid in equal monthly payments prior
to the 10th day of each month, or upon receipt of the appropriate reports.
«
The funds will be used by the Center to partially cover expenses identified
in its operation buuget as requiring a One hundred thousand dollars ($100,000)
cash expenditure.
1. The Board of Directors shall furnish the City with information on the
financial assistance provided by other governmental or private entities
as well as information regarding any proposed or anticipated use of such
funds.
2. During the 1977 funding year, the staff and the board of directors of
the Center will seek alternative sources of funding. A written report
of this continuing effort to seek alternative funding will be included
in quarterly reports submitted to the City.
III. The program will be controlled by a Board of Directors who shall meet on a
regular basis and develop the programs policy and evaluation; recruit;
monitor the staff; conduct public relations work in the community; insure
that the funds under this contract are allocated in accordance with the
above schedule, and make reasonable efforts to obtain outside financial
assistance for the program. The Agency shall have in its employment
appropriate staff to administer the agency and to provide the services
described in this document. Volunteers who agree to furnish services
for the Agency will receive initial as well as ongoing training from the
office and volunteer coordinator.
IV. The Agency shall submit reports on ok before April 10, 1977, July 10,
134
-------
1977; October 10, 1977; and January 10, 1978, to the Department o£ Human
Resources Development. The reports shall Include a financial statement,
d„t, fw>rprnine number of client^servgj. data concerning types of services
a-nA arfemots at and progress in seeking
that the client" are utilizing, an e
alternative funding. The Agency shall also furnish such other information
as the Director of the Department of Human Resources may request from time
to time. The Director shall not be entitled to receive confidential or
otherwise privileged information from the Agency without approval of the
Board of directors.
T, . , jc f-So Director of the Department of Human
V. It is expressly agreed that if the
t_ failing to perform satisfactorily the
Resources feels that the Agency is
che shall notify the "board chairman
terms and conditions of this contract, she snail y
. ul..- cuch objections shall relate to the performance
of her objections in writing- ^ J
u~~^ttr*Ae>r If the Board of Directors does
by the Agency of its obligations hereunder. It trie bo
rorrect the objections and defects in performance
not alter the program to correct cn j
within a specified length of time, to the satisfaction of said Director,
upon her advisement the City Manager shall have the right to terminate this
~ « ^ o ™ davs from the date he decides to terminate. In the
contract effective 30 days iruw
event of termination, the Agency shall be entitled to receive actual expenses
to the date of termination, however, not to exceed a prorata portion on a
monthly basis of the amount set forth in paragraph II above.
VI. The Agency authori.es the City to perform audits and to make inspections
during notmal business hours for the purpose of evaluating performance
under this contract.
VII. It is understood between the parties hereto that the nature of the problems
which the Agency is attempting to alleviate may not permit easy resolution
135
-------
or show readily ascertainable results. Therefore it is agreed that the
terms and conditions of this contract shall be governed by reasonableness
and good faith.
VIII. The parties to this contract intend that the relationship of the Agency to
the City is that of an independent contractor. No agent, employee or
volunteer of the Agency shall be deemed to be an agent, employee or volunteer
of the City. The Agency will be solely responsible for its acts and the
acts of its agents, employees and volunteers.
IX. In all hiring or employment made possible by or resulting from this contract
and in all services rendered pursuant hereto, there will not be any discrimina-
tion against any employee or applicant for employment or person seeking the
Agency's services because of race, color, religion, sex, age, national origin
or marital status, and affirmative action will be taken to insure that
applicants are employed and that employees are treated during employment without
regard to their race, color, religion, sex, age, national origin or marital
status.
X. This contract is not assignable without the prior written consent of the City.
EXECUTED on the day and year first above written.
CITY 0Fy550U«LDER/9C0L0RAD0
Robert wSftdyke, City Manager
136
-------
Attest:
Direc^oi* of Finance and Record
Ex-Officio City Clerk
BOULDER COUNTY LEGAL SERVICES, INC.
by h e C^- • CLS-
President,Board of Directors
STATE OF COLORADO:
: SS.
COUNTY OF BOULDER:
The foregoing instrument was acknowledged before me this Jday of February 1977i
by_ Jtr President of the Boulder County Le^al Services, Inc.
Witness my hand and official seal.
My commission expires *7. / f P/
' jL^/ si .
Notary Public^/ J*
>EAL
137
-------
APPENDIX E
SAMPLE SUBDIVISION APPLICATION PROCEDURE
138
-------
Subdivision
3-0 SUBDIVISION
Purpose:
a) to divide a parcel of land Into lots for the purpose of
transfer of ownership or building development.
b) to change an existing subdivision when the change involves
rights-of-way or major easements.
3-1 PROCEDURE
The APPLICANT is responsible for having a representative at all
meetings where their request is reviewed. Failure to have a repre-
sentative present will be cause to have the item withdrawn from
the agenda of that meeting.
(A) Sketch Plan:
1. APPLICANT consults with PLANNING DEPARTMENT for general informa-
tion regarding requirements for subdividing and any special
considerations pertaining to the site.
2. APPLICANT consults with CITY ENGINEER for general information re-
garding subdivision standards, public improvements, storm drain-
age, and raw water requirements.
3. APPLICANT consults with the SCHOOL DISTRICT to discuss the impact
of the project on the school system.
4. APPLICANT submits 12 copies of the sketch plan to the PLANNING DE-
PARTMENT along with the review fee for subdividing ($100 + $1.50/
lot over 25 + $50/extra sheet of the final plat). Plats must con-
form to the attached SUBDIVISION REQUIREMENTS.
5r Copies of sketch plan are distributed by the Planning Department
for referrals.
6. APPLICANT meets with PLANNING DEPARTMENT to review comments.
7. Plans are reviewed by the PARKS BOARD and the WATER BOARD at their
next regular meeting.
(B) Preliminary Plat:
1. APPLICANT submits 14 copies of the Preliminary Plat to the PLAN-
NING DEPARTMENT a minimum of 21 days prior to the regular PLANNING
and ZONING COMMISSION meeting.
2. Copies of Preliminary Plat are distributed by the PLANNING DEPART-
MENT for referrals.
3. APPLICANT meets with PLANNING DEPARTMENT to review comments.
4. Preliminary Plat and recommendations are reviewed by the PLANNING
and ZONING COMMISSION at the next regularly scheduled meeting.
139
-------
Subdivision
subdivision
(C) Final Plat:
1. APPLICANT submits 14 copies of the Final Plat to the PLANNING DE-
PARTMENT a minimum of 21 days prior to the regular PLANNING and
ZONING COMMISSION meeting. All conditions placed on the Prelimi-
nary Plat should be met on the Final Plat, to insure a favorable
recommendation. The Final Plat must be submitted within one year
of the date of Preliminary Plat approval. If a Final Plat 1s not
filed within this time, a new Preliminary Plat must be filed.
2. Copies of the Final Plat are distributed by the PLANNING DEPART-
MENT for referrals.
3. APPLICANT meets with the PLANNING DEPARTMENT to review conments.
4. Final Plat and recommendations are reviewed by the PLANNING and
ZONING COMMISSION at the next regularly scheduled meeting.
(D) City Council:
1. APPLICANT submits to the PLANNING DEPARTMENT a mylar of the final
plat as approved by the PLANNING and ZONING COMMISSION. All con-
ditions of the PLANNING and ZONING COMMISSION should be met, to
insure a favorable recommendation.
2. ENGINEERING DEPARTMENT makes the necessary computer closure check
of the plat.
3. PLANNING DEPARTMENT checks and submits the Final Plat plans to
the CITY CLERK for the CITY COUNCIL.
4. CITY COUNCIL holds 1st hearing on the ordinance approving the plat
and sets a date for Public Hearing and Final Reading.
5. DEVELOPER sees that all water transfers are made, and all required
signatures are on the plat.
6. PLANNING DEPARTMENT and CITY ENGINEER see that needed contractual
agreements are drawn up.
7. CITY COUNCIL holds a Public Hearing and Final Reading on the ordi-
nance.
8. All pending contractual agreements are finalized.
9. CITY CLERK records the plat in the Boulder County Clerk's Office.
10. APPLICANT may apply for Building Permits after copies of the re-
corded plat have been received by the PLANNING DEPARTMENT.
11. Building Permits are not Issued until the building plans have been
checked and approved by the INSPECTION DEPARTMENT.
-MINIMUM TIME 90 DAYS-
140
-------
Subdivision
Subdivision
3-2 REQUIREMENTS
Completion of these requirements in no way insures approval of
the request, but rather allows the applicant to continue through
the procedure as these requirements are met.
(A) All Plans
1. North arrow, engineers scale (min. 1" - 1000'), sheet size
24" x 36".
2. Legends readable when the North arrow points up.
3. Name of the Subdivision.
4. Legal description.
5. Names and boundaries of adjacent subdivision, streets and prop-
erty owners.
6. Appropriately labelled - Sketch Plan, Preliminary Plat, Final
Plat.
(B) Sketch Plan and Preliminary Plat
1. Existing features (utilities, waterways, contours, etc.)
2. Proposed features (utilities, waterways, contours, etc.)
3. Proposed and existing easements and rights-of-way.
4. Street names, rights-of-way, and classification.
5. Lot numbers, approximate dimensions and the total lots devoted
to each zone on the plat,
6. Total acreage devoted to each zone, streets, public areas, and
other uses.
7. Adequate easements for flood controJ,
8. Zoning of the area to be platted and of adjacent properties.
9. Name, address and phone of persons and/or firms responsible for
plan.
(C) Supportive Information - Preliminary
1. Vicinity map showing a mile radius of the site and external
facilities such as schools, shopping centers, parks, etc. Scale
1" - 1000'.
2. Copies of proposed deed restrictions, if any.
141
-------
Subdivi s i on
Subdivi sion
3. Soils types and restrictions, if not submitted when annexed.
4. Description and location of any hazardous areas on the property
and proposed remedial measures.
5. Existing capacities of facilities and proposed impact.
(D) Final Plat
1. Reflect the recommendations of Planning and Zoning Commission.
2. All bearings, distances, chords, radius, central angles, tangent
lengths, etc. for all lots, blocks, perimeter, easements, R.O.W.
etc.
3. Bearing equation to relate plat to true meridean; how related
and what baseline used.
4. Location and physical description of monuments.
5. Street names (see page 15).
6. All rights-of-way, easements and dedicated or reserved public
areas.
7. Reverse corner lots have adequate width for required setback.
8. Certification blocks (see following pages 13 and 14).
9. Must be ink on mylar or linen.
(E) Supportive Information (Final)
1. Legal opinion as proof of land ownership.
2. Transfer of water rights if not done when land is annexed.
3. Traffic control plan showing all controls as per the City
Traffic Engineer.
4. Four copies of the complete street plans and profiles, prepared
and stamped by a Registered Engineer. Minimum scale 1" - 50'.
5. Drainage plan.
6. Copy of design soils test results and location map.
7. Financial security agreements.
8. Construction schedule and required information to obtain a
construction permit from the City to proceed with public
improvements.
9. Final utility plan showing all utilities.
14 2
-------
lr
p
LONGMONT
RL-AIMIMING
i/O0
PROJECT
1
I
DEPARTMENT
REQUEST
J
INFORMATION
ADDREs!
PHONE V
LOCATION ¦
EXISTING DSC
EXISTING ZONE ¦
PROPOSED use ¦
LEGAL DESCRIPTION
NAME
CONSULTANTS
AOORESS
PHONE
CAPACITY
PERSONS IN INTEREST
ALL PERSONS ft COMPANIES, WHO HOLO AN INTEREST N THE DESCRIBED REAL PROPERTY, AS OWNER, MORTGAGEE, LESSEE, OPTIONEE, ETC.
ADDRESS
PHONE
INTEREST
CERTFICATION
t CERTIFY THAT THE INFORMATION ANO EXHIBITS HEREWITH SUBMITTED / "RUE ANO CORRECT TO THE BEST OF MY KNOWLEDGE AND THAT
IN FILING THIS APPLICATION, I AM ACTING WITH THE KNOWLEDGE AND CONSENT OF THOSE PERSONS LISTED ABOVE, WITHOUT WHOSE CONSENT
THE REQUESTED ACTION CANNOT LAWFULLY BE ACCOMPLISHED.
NAME.
.ADDRESS.
.SIGNATURE.
.PHONE.
_ DATE _
STAFF USE ONLY
143
-------
APPENDIX F
SAMPLE UTILITY EXTENSION POLICY
144
-------
TYPICAL UTILITY EXTENSION POLICY
Requests for sewer main extensions to serve properties located
outside the corporate limits of the City shall be reviewed by the
Planning and Zoning Commission for its recommendations, and shall
be permitted only upon execution of a Utility Services Agreement
as approved by the City Council and under such terms as may be
specified by Council.
Utility Service Agreements shall contain the following minimum
conditions as applicable:
Applicant agrees:
1. To pay for services at those rates currently in effect
for areas outside the City as set by ordinance.
2. That all lines and other facilities needed to extend
the service to his area shall be built to City speci-
fications and shall become the property of the City.
3. To bear the full costs, including cost of inspection,
of extending all such lines and facilities.
4. To build all distribution lines within the area to
City specifications.
5. To pay the full cost, including cost of inspection,
of all interior lines and facilities.
6. Not to develop the land without first submitting the
development plans to the City Planning and Zoning
145
-------
Commission for their review and recommendations to
the City Council and subsequent approval.
7. Not to use his land for any use which would be deter-
mined by the City Council to be detrimental to the
health, safety and welfare of the citizens of the
City.
8. Not to build any streets, or other public improve-
ments or buildings except in accordance with the
City's building, plumbing, electrical and fire codes,
subdivision regulations, zoning ordinance, and
engineering standards and specifications, as would
be applicable to similar improvements within the City
and agree to pay the cost of all inspections required
by the City.
9. To comply with the City's existing thoroughfare plan
and comprehensive storm drainage plan.
10. Not to sell any water rights connected with the land
to anyone else without first offering them to the
City at the price and on the terms offered in an arm's
length transaction with a third person.
11. To annex to the City when the land is legally eligible.
12. At the time of annexation, to comply with the then
existing policy or ordinance of the City concerning
the dedication of open space.
146
-------
13. Upon annexation, agree to dedicate all necessary
rights-of-way for streets, alleys, highways, and
utility easements.
14. Upon annexation, to do all other things which the
City may then reasonably require.
15. Not to participate in the formation of another City
or to participate in the formation of any special
service district without the consent of the City.
16. To cooperate with the City to prevent wasting or
polluting of water.
17. To indemnify and hold the City harmless from any
and all damages or liability arising either directly
or indirectly from furnishing said services.
18. To comply with all applicable ordinances of the City
relating to sewer service.
The agreement shall, by its terms, be binding upon the property
owner and on the successors, heirs, personal representatives, and
assigns of such property owner, and the terms and conditions of said
agreement shall constitute covenants running with the land. Said
agreement may be recorded with the appropriate clerk and recorder's
office by the City at its sole and exclusive option.
In the event the property owner, or the successors, heirs,
personal representatives, or assigns of such property owner fails,
neglects, or refuses, for any reason, to comply with the above-
147
-------
listed terms and conditions, the City, at its sole and exclusive option
and discretion, may forthwith discontine water and/or sewer services
without legal liability.
In the case of subdivisions, housing developments, or other
areas inside the City where sewer mains and installations must be
expended from the existing Wastewater Utility System to the area of
use, the applicant must, at no expense to the City, provide and
install the necessary sewer mains, manholes and fittings for the
extension, in accordance with City specifications and the provisions
of this ordinance. All such extension installations shall be made
in accordance with plans approved by the Public Works Director.
The applicant shall bear the entire expense of plan preparation and
review. Upon completion of construction and final approval by the
Public Works Director all such applicable sewer mains, manholes and
fittings incorporated in the extension shall become the property of
the City.
All sewer mains or extensions shall be installed only in
dedicated public streets or alleys or in easements which grant to
the City rights at least equal to the right it would enjoy in
dedicated streets or alleys. All sewer main extensions shall be
made to the property lines. The size of the main required to serve
any part of the City shall be subject to approval by the Public
Works Director.
All sewer mains required to serve a platted subdivision shall
be installed at no cost to the City. The subdivider shall install
mains to the farthest point or points of his subdivision.
148
-------
When a subdivider finds it necessary to extend sewer service
from the existing Wastewater Utility System through vacant property
to his platted subdivision or construct lines on the perimeter of
said subdivision, the subdivider shall pay the entire cost of con-
struction. At the time of annexation, or as the property abutting
such sewer main is developed, and connections are made to the said
sewer main, the City may enter into a sewer main extension agreement
with the developer and may collect a charge per front foot based
upon the original construction cost, and if so collected shall re-
imburse the original subdivider to the extent of the collection so
made. In no event, shall the actual amount so paid to the subdivider
by the City exceed the original cost of the extension agreement
shall in no event exceed a period of seven (7) years from the date
of the execution of the extension agreement and all payments shall
cease at that time regardless of the amount that has at that time
been received by the subdivider.
Extension of sewer mains to serve property within the City,
but not a part of a subdivision platted after the adoption of this
ordinance, may be financed by special assessment against the benefited
property. Assessments against the benefited property shall not exceed
the actual cost of the extension plus engineering and administrative
costs.
149
-------
APPENDIX G
GLOSSARY OF BOND FINANCING TERMS
150
-------
A glossary of selected terms
used in municipal finance
Ul
People in municipal finance use terms that
have special technical meanings in some cases,
and in others have imprecise meanings that de-
pend on what person is using the word. Rather
than clog the text of this booklet with lengthy
definitions of words frequently misunderstood
by laymen, this brief glossary was compiled.
Definitions were taken primarily from the book
by Lennox L. Moak, Administration of Local
Government Debt, and from the extensive ap-
pendix on terminology in the book Governmental
Accounting, Auditing, and financial Reporting.
Both books are published by the Municipal Fi-
nance Officers Association.
ACCRUED INTEREST. In an original govern-
mental bond sale, accrued interest is the amount
which has accumulated on the bonds from the
day they are dated up to, but not including, the
date of delivery. Where a bond is purchased by
a governmental unit, accrued interest is the
amount which has accumulated on the bond
from the last interest date up to, but not includ-
ing, the date of purchase.
or in some cases it may be partially dependent
upon other governments for its creation, its fi-
nancing, or the exercise of certain powers.
AUTHORITY BONDS. Bonds payabta from the
earnings or other revenues of a specific authority
created by governmental action for a public
purpose. Since such authorities usually have no
revenue other than charges for services, their
bonds are ordinarily revenue bonds.
AVERAGE NET INTEREST COSTS. This is the
expression of the average annual interest rate
payable semiannually in respect to an issue or
other group of bonds. There are a number of
methods by which averege net interest coats
may be computed.
•
BALLOON MATURITY. An issue of bonds with
many more late maturities than early maturities.
Provision is often made for redeeming some or
ail of the late maturities by making them call-
able.
AD VALOREM TAX. A tax baaed on the value
(or aaaesaed value) of property.
•
AMORTIZATION. The systematic reduction of
debt through ua# of serial bonds or term bonds
with ainking fund on an actuarial basis. Also,
the gradual and periodic reduction of premiums
and discounts on bonds purchased or sold, so
as to reflect the true rate of interest and so as
to show the true amount of assets or liabilities
represented by premiums or discounts.
•
ASSESSED VALUATION. The valuation placed
on real estate or other property by a government
for the purpose of levying taxes.
BASIS BOOK. A book ©f mathematical table*
used to convert yield percentages to equivalent
dollar prices.
•
BASIS PRICE BONO. A bond quoted on a basis
of annual yield or net return to maturity. Such
a quotation is converted into a dollar price by
the use of bond tables. Ten basis points, for ex*
ample, equal 1/10 of one per cent a year. One
hundred basis points equal one per cent. Serial
bonda are usually quoted on a basis price.
•
BEARER BOND. A bond on which no specific
owner is identified. The preeumed owner is the
person who holds it.
AUTHORITY. A governmental unit or public
agency created to perform a single function or
a restricted group of related activities, Ususlly
such units are financed from service charges,
fees, and toils, but in some instances they also
have taxing power: *n authority may be com-
pletely indepemj#. -ther governmental units,
BOND. A written promise to pay a specified sum
of money, called the face value or principal
amount, at a specified date or datee in the fu-
ture, cafJed the maturity dafefs), together with
periodic interest at a specified rate. The dif-
ference between a note and a bond is that the
latter runs for a longer period of time and re-
quires greater legal formality.
-------
glossary
BOND AND INTEREST RECORD. The permanent
and complete record maintained by a govern-
ment upon each bond issue. It shows the amount
of interest and principal coming due each date,
the bood and coupon numbers, and all other
pertinent information concerning the bond issue.
The term is synonymous with, but preferable to,
BONO REGISTER.
e
BONDED DEBT. That portion of indebtedness
represented by outstanding bonds.
e
BOND PREMIUM. The excess of the price at
which a bond is acquired or sold over its face
value. The price does not include accrued inter-
est at the date of acquisition or sale.
e
H* BOND REGISTER. See BONO AND INTEREST
w RECORD.
(O .
BOND RESOLUTION (ORDINANCE|. Act of a
local governing body authorizing a bond issue.
State law and municipal charters prescribe
whether a bond issue may be authorized by reso-
lution, or must be mada by ordinance. The latter
is a more formal legislative act.
BUDGET. A plan of financial operation embody-
ing an estimate of proposed expenditures for a
given period and the proposed means of financ-
ing them. Used without any modifier, the term
usually indicates a financial plan for a single
fiscal year. The term "budget" is used in two
senses in practice. Sometimes it designates the
financial plan presented to the appropriating
body for adoption and sometimes the plan finally
approved by that body. It is usually necessary
to specify whether the budget under considera-
tion ia preliminary and tentative or whether it
has been approved by the appropriating body.
CALLABLE BONO. A type of bond which permits
the issuer to pay the obligation before the stated
maturity data by giving notice of redemption In
a manner specified in the bond contract.
•
CALL PRICE. The price at which callable bonds
will be redeemed if called.
CAPITAL BUDGET, a plan of propos*u capital
outlays and the means of financing them for the
current fiscal period, it is usually a part of the
current budget. If a Capital Program ia in opera-
tion, it will be the first year thereof. A Capital
Program is sometimes referred to as a Capital
Budget. See also CAPfTAL PROGRAM.
CAPITAL PROGRAM. A plan for capital expendi-
tures to be incurred each year over a fixed
period of years to meet capital needs arising
from the long-term work program or otherwise.
It sets forth each project or other contemplated
expenditure in which the government is to have
a part and specifies the full resources estimated
to be available to finance the projected expendi-
tures.
CAPITAL PROJECTS FUND. A fund created to
account for all resources used for the acquisi-
tion of designated fixed assets by a govern-
mental unit except those financed by special
assessment and enterprise funds.
COUPON. That detachable part of a bond which
serves as proof of interest due. Bondholders de-
tach coupons from bonds, usually at semian-
nual intervals, and present them for payment to
the issuer's paying agent or to the bondholders
own bank for collection.
COUPON RATE. The rate of interest specified on
coupon bonds. In the case of registered bonds,
it is the rate payable by the issuer's automatic
check to the holder.
e
COVERAGE. This is a tefm usually connected
with revenue bonds. It indicates the margin of
safety for payment of debt service, reflecting the
number of times by which earnings for a period
of time exceed debt service payable in such
period, e.g., 1.20, referred to aa "one-twenty"
with decimal point implied.
e
CURRENT YIELD. A relation stated as a percent
of the annual interest to the actual market price
of the bond — same procedure aa computing
a stock yield.
glossary
DEBT LIMIT. The maximum amount of debt
which a governmental unit may incur under con-
stitutional. statutory, or charter requirements.
The limitation is usually a percentage of as-
sessed valuation and may be 1ixed upon either
gross or net debt. If the latter is the case, the
legal provision will usually specify what deduc-
tions from gross funded debt are allowed in
order to ascertain net debt.
e
DEBT RATIO. The ratio of the issuer's debt to
a measure of value such as assessed valuation
or real value.
e
DEBT SERVICE REQUIREMENT. The amount of
money required to pay the interest on outstand-
ing debt, serial maturities of principal for serial
bonds, and required contributions to a debt
service lund lor term bonds.
e
DELINQUENT TAXES. Taxes remaining unpaid
on and after the date on which a penalty for
non-payment is attached. Even though the pen-
alty may be subsequently waived and a portion
of the taxes may be abated or cancelled, the
unpaid balances continue to be delinquent taxes
until abated, cancelled, paid, or converted intp
tax liens.
e
DEFAULT. Failure to pay a bond's principal
and/or interest promptly when due.
e
DENOMINATION. The face amount or par value
of a bond which the issuer promises to pay on
the bond's maturity date.
e
DIRECT DEBT. Debt which a government has in-
curred in its own name or assumed through the
annexation of territory or consolidation with
another government unit.
e
DISCOUNT. The excess of the par value of a
bond, or other security, over the price for which
it is acquired or sold.
e
DOLLAR BOND. A bond which is quoted and
traded in terms of dollars rather than yield. For
example, a quotation of 97'/; means $97.50 per
$100 of par value or $975 per $1,000 par value of
bonds.
DOUBLE-BARRELED BOND. A bond secured by
a pledge of two or more sources of payment
such as the unlimited taxing power of the issuer
plus a special assessment or revenue pledged
e
EFFECTIVE INTEREST RATE. The rate of earn-
ing on a bond investment based on the actual
price paid for the bond, the coupon rate, the
maturity date, and the length of time between
interest dates in contrast with the nominal in-
terest rate or - coupon" rate.
e
FLAT. A bond in default, or about to go into de-
fault, is traded flat. Thai means accrued interest
is not added to the quoted price
e
HSCAL AGENT. An agent (usually an incorpo-
rated bank or trust company) designated by a
government to act for it in any of several capaci-
ties in the sale, administration, and payment of
bonds and coupons.
FISCAL YEAR. A twelve-month period of time to
which the annual budget applies and at the end
of which a governmental unit determines its
financial position and the results of its opera-
tions.
e
FIXED DEBT. A term sometimes contrasted w:
floating debt. It is broader than funded debt,
because it includes long-term obligations other
than bonds, such as judgments, mortgages, and
long-term serial notes or certificates of indebt-
edness.
e
FLOATING OEBT. Obligations payable on dt.
mand or with very short maturities. Such obliga-
tions are usually in the form of accounta
payable, bank loans, notes, scrip, or warrants.
This term is sometimes contrasted with FIXEO
DEBT.
e
FULL-FAITH - AND-CREDIT BOND. See GEN-
ERAL OBLIGATION BONO.
e
FUNDED DEBT. That portion of the indebted-
ness of a municipality represented by outstand-
ing bonds. Same as BONOED OEBT.
-------
glossary
GENERAL OBLIGATION BOND. A bond for
whose payment the full faith and credit of the
issuer has been pledged. Mora commonly, but
not nacasaarily. general obligation bonds are
payable from ad valorem property taxes and
other general revenues.
GENERAL PROPERTY TAX. The tax levied on
rati estate and peraonat property. This tax is
usually levied locally. In emergencies it is the
tax which is cuatomarily increased to balance
the budget.
GROSS.-OEBT. Tha sum total of a debtor's obh-
gations;;however. in reporting gross debt, the
amount of unfunded obligations of pension and
retirement lunds is ordinarily not included.
in INDUSTRIAL AIO BONOS. Bonds issued by gov-
W emmentai units the proceeds of which are used
to construct plant facilities for private industrial
concerns. Lease payments made by the indus-
trial concern in the governmental unit are used
to service the bonds- Such bonds may be in the
form of general obligation bonds or combina-
tion bonds or revenue bonds.
INTEREST. Compensation paid or to be paid for
the use of money, including interest payable at
periodic intervals or as discount at the time a
loan is made.
INTEREST RATE. The interest payable, ex-
pressed as a percentage of the principal avail-
able for use during a specified period of time.
INTERIM BORROWING. (1) Short-term loans to
be repaid from general revenues during the
couree of a fiscal year. (2) Short-term loans in
anticipation of tax collections or bond issuance.
ISSUER. A municipal unit which borrows money
through sale of bonds.
LEGAL OPINION. The opinion, usually of a
specialized bond attorney, as to the legality of
a municipal bond issue. A preliminary legal
opinion is made in advance of the original sale
of the bonds; the final opinion, after the bonds
have been issued and sold. See QUALIFIED
LEGAL OPINION.
LEVEL DEBT SERVICE. An arrangement of serial
maturities in which the volume of maturing
bonds increases at approximately the same rate
as the interest declines.
marketability. The measure of ease with
which a bond can be sold in the secondary
bond market.
MATURITY. The date at which the principal ol
a bond becomes due and payable.
MUNICIPAL BOND. A bond issued by a state or
local governmental unit.
MUNICIPAL(s). "Municipal" refers to the state
government or any government unit below or
subordinate to the state. "Municipals" (i.e.,
municipal bonds), as used in the bond trade,
include not only the bonds of all local subdivi-
sions such as cities, towns, villages, counties.
and school, park, sanitary, and other special
taxing districts, but also bonds of states and
agencies of the state (as distinguished from
the foregoing).
NEW HOUSING AUTHORITY BONOS. A bond is-
sued by a local public housing authority to
finance public housing, it is backed by federal
funds and the solemn pledge of the U.S. govern-
ment to see that the debt service is paid in full.
NET REVENUE AVAILABLE FOR DEBT SER-
VICE. Gross operating revenues of an enterprise
less operating and maintenance expenses but
exclusive of depreciation and bond interest.
"Net Revenue" as thus defined is used to com-
pute "coverage" on revenue bond issues. Un-
der the laws of some states and the provisions
of some revenue bond indentures, net revenues
used for computation of coverage are required to
be on a cash basis rather than an accrual basis.
glossary
NEW-ISSUE MARKET, a market for new issues
of municipal bonds.
e
NOMINAL INTEREST RATE. The contractual in-
terest rate shown on the face and in the body
Of a bond and representing the amount of inter-
est to be paid in contrast to the effective interest
rtfe. See also COUPON RATE.
•
OVERLAPPING DEBT. The proportionate share
of the debts of local governments located wholly
or in part within the limits of the reporting
government which must be borne by property
within each governmental unit.
•
OVER-THE-COUNTER MARKET. A securities
market conducted by dealers throughout the
country by individual negotiation rather than by
the auction system used by various stock ex-
changes.
OVER-THE-COUNTER SALES. Direct sales by
governments to the investor public without the
marketing facilities of bond dealers.
•
PAR VALUE. The face value of a security, in the
case of bonds, it is the amount that must be
paid at maturity. Although bonds are usually
issued in denominations of $1,000, a quotation
of 100 means "at par." Bonds quoted at 96 are
selling at a discount. That is, they cost $980 for
a $1,000 bond. Bonds quoted at 102 are selling
at a premium, that is $1,020 for a $1,000 bond,
e
PAY-AS-YOU-GO BASIS. A term used to de-
scribe the financial policy of a governmental
unit which finances all of its capital outlays from
current revenues rather than by borrowing. A
governmental unit which pays for some improve-
ments from current revenues and others by bor-
rowing is said to be on a partial or modified
pay-as-you-go basis.
e
PAYING AGENT. A bank or other institution lo-
cated usually in a financial center, which acts
as the agent for a municipality in making bond
interest and principal payments.
e
PHILADELPHIA PLAN. A plan under which cou-
pon bonds surrendered In exchange for regis-
tered bonds are held by the paying agent until
maturity or until used in reconversion of regis-
tered to coupon bonds.
e
PREMIUM. The excess of the price at which a
bond, or other security, is acquired or sold, over
its par value.
PREMIUM CALL PRICE, price above par at
which a municipality, according to the bond
contract, may call optional bonds for retirement
or sinking fund purpose.
e
PRINCIPAL. The face amount of a bond exclu-
sive of accrued interest.
e
QUALIFIED LEGAL OPINION. Conditional af-
firmation of the legality of bonds, before or after
they are sold. An unqualified legal opinion, on
the other hand, is an unconditional affirmation
of the legality of bonds.
e
RATING. A designation used by analysts or in-
vestors' services to represent relative quality
of a bond.
REDEMPTION (CALL) OPTION. An option in
the bond contract whereby the issuer is allowed
to pay the bonds prior to maturity. These terms
are specified in the bond resolution.
e
REFUNDING BOND. Bond issued to retire bono
already outstanding. Refunding bond may be
sold for cash and outstanding bond redeemec
in cash, or the refunding bond may be ex-
changed with holders of outstanding bonds,
e
REGISTERED BOND. A bond listed in the name
of the holder. When sold it must be transferred
on the books of the issuer and its agent. When
fully registered there are no coupons attached
and the interest is paid to the owner by check
by the paying agent. Sometimes bonds are reg-
istered as to principal only.
e
RESERVE FOR RETIREMENT OF SINKING
FUND BONOS. A reserve representing the
amount of cash and other resources which
should have been accumulated in the sinking
fund at a certain date, according to actuarial
-------
glossary
compulation, in order that the bonds outstand-
ing may b» redeemed at maturity.
REVENUE BONO. Bonds whosa principal and
interest are payabla exclusively from earnings
of a public antarprisa. In addition to a pledge
of revenuee, such bonds so met i mas contain a
mortgage on tha enterprise's property and are
than known as Mortgage Revenue Bonds.
properties to defray part or all of tha cost of a
specific improvement or service which is pre-
sumed to be of general benefit to the public
and of special benefit to such properties. The
term ehoutd not be used without a modifier (for
example "special assessments for street pav-
ing,' or "special assessments for street sprin-
kling") unless the intention is to have it cover
both improvements and services or unless the
particular use is apparent from the context.
U1
SCRIP. An evidence of indebtedness, usually in
small denomination, secured or unsecured, in-
terest-bearing or non-interest-bearing, stating
that tha governmental unit, under conditions set
forth, will pay the face value of the certificate
or accept it in payment of certain obligations.
SECONDARY MARKET. A market tor bond is-
suea previously offered or sold.
SELF-SUPPORTING OR SELF-LIQUIDATING
DEBT. Debt obligations whose principal and in-
terest are supposed to be paysble from the
eernings of the municipel utility or enterprise
for tha construction or improvement of which it
waa originally incurred.
SERIAL BONO. A bond of an issue that matures
at various dates over a period of years.
SHORT-TERM DEBT. Debt with a maturity of one
year or lees after the. date of issuance. Short-
term debt usually includes floating debt, bond
anticipation notes, tax anticipation notes, and
interim warrants.
SPECIAL ASSESSMENT BOND. Bond payable
from the proceeds of special assessments. If
these bonds are payable only from the collec-
tions of special assessments, they are known as
"special assessment bonds.'' If, in addition to
the assessments, the full faith and credit of the
governmental unit are pledged, they are known
as "general obligation special assessment
bonds."
SPECIAL DISTRICT BOND. Bond of a local tax-
ing district which was organized tor a special
purpose, such as a road, sewer, fire, drainage,
irrigation, or levee district. Also called Tax
District Bond..
SPECIAL LIEN BOND. Special assessment bond
which is lien against particular pieces of prop-
erty. The term is sometimes used as synony-
mous with REVENUE BONO, even when the debt
is not secured by a mortgage on the utility or
property, but this usage is not recommended.
SPECIAL TAX BOND. A bond secured by a spe-
cial tax, such as a gasoline tax.
SINKING FUND. A fund of earning assets and
caah to which additions are made periodically
so that future contributions plus interest earned
will accumulate to the par value of the bonds at
maturity and can thus be used to redeem them.
Difficultlaa of administration have made this
practice rare today, but the term is sometimes
used to cover any retirement of principal other
than by serial maturities. Thus a call of a part
ofl a bond Issue In order to retire debt may be
called "for sinking-fund purposes."
•
SPECIAL ASSESSMENT. A compulsory levy
made by a local government against certain
SPREAD. The gross profit in an underwriting
assuming that all bonds are sold at the initial
offering price.
STRAIGHT SERIAL BONDS. Serial bonds in
which the annual installments of bond principal
are approximately equal.
SYNDICATE. A group of investment bankers
who buy, that is. underwrite, at a wholesale
rate, a new bond issue. They then offer it for re-
sale. at a profit for the group, to the general
public.
glossary
TAX ANTICIPATION NOTES OR WARRANTS
Notes (sometimes called warrants) issued in an-
ticipation of collection of taxes, usually rate-
able only from tax collections and frequently
only from proceeds of the tax levy the collec-
tion of which they anticipate.
TAX BASE. The total resources available for
taxation.
e
TAX-EXEMPT BOND. Bonds exempt from federal
income, state income, or state or local personal
property taxes. "Municipals" are exempt from
federal income taxation at present and may or
may not be exempt from state income or per-
sonal property taxation in the state where origi-
nally issued or held. Some states do not tax
"municipals" issued by their own local sudivi-
sions, but subject municipals issued in another
state but held therein to either income or per-
sonal property taxation or both.
a
TAXES. Compulsory charges levied by a govern-
mental unit for the purpose of financing services
performed for the common benefit. The term
does not include specific charges made against
particular persons or property for current or
permanent benefits such as special assess-
ments. Neither does the term include charges
for services rendered only to those paying such
charges as. for example, sewer service charges
a
TAX LIMIT. The maximum rate or amount of tax
which a local government may levy. It may apply
to taxes raised for a particular purpose, to taxes
raised for all purposes, to a single government
or class of governments, or to all governments
operating in a particular area.
TAX RATE. The amount of tax stated in terms of
a unit of the tax base; for example, 25 mills per
dollar of assessed valuation of taxable property.
TAX ROLL. The official list showing the amount
of taxes levied against each taxpayer or prop-
erty. Frequently the tax roll and the assessment
roll are combined, but even in these cases the
two can be distinguished.
TRUSTEE. A bank designated as the custodian
of funds and official representative of bond-
holders.
UNDERLYING DEBT The debt of smaller geo-
political units within a given government's
jurisdiction
UTILITY DEBT Debt which has been created to
provide or acquire certain utility assets, such as
hydroelectric, gas, or water works, street rail-
ways, stadia, etc. Utility debt may be incurred
through the issuance of either general obliga-
tion bonds or revenue bonds In the first case,
the debt is a full-faith-and-credit obligation of
the municipality; in the second, it is debt pay-
able solely from the revenues of the specific
utility.
UNDERWRITER. The investment house or houses
that purchase a bond offering Irom the issuing
government. A joint venture account of a num-
ber of underwriters is called the underwriting
syndicate or syndicate for short. The gross profit
the syndicate makes between the established
retail price and its wholesale buying price is
known as the spread. Out of this spread, the
underwriter or syndicate pays all costs of dis-
tribution
VALIDATION. Required approval of a municipal-
ity's bond issue or refunding plan by some state
agency or official, as specified by state law.
Also called CERTIFICATION.
a
YIELD. The net annual percentage of income
from an investment. The yield of a bond reflects
interest rate, length of time to maturity, and
writeoff of premium or discounts. Yield to in-
vestor is always calculated from table of bond
values, whereas net interest to borrower is cal-
culated algebraically by various methods which
must be specified by the issuer.
-------
APPENDIX H
CONSTRUCTION BONDING SAMPLE FORMS
155
-------
LABOR AND MATERIAL PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS that we, the undersigned,
of ,
as Principal, hereinafter referred to as "Contractor" and
_, a corporation organized under the laws
of the State of , and authorized to transact business in
the State of Colora~dol as "Surety", are held and firmly bound unto the
as Obligee, hereinafter referred to
as "Owner", in the penal sum of
Dollars ($ ) , lawful money
of the United States of America, for the payment of which sum, well and
truly to be made to the Owner, we bind ourselves, and our heirs, executors,
administrators, successors, and assigns, jointly and severally, by these
presents:
WHEREAS, on the day of 19 , the
Contractor entered into a written Contract with the Owner for furnishing
materials, supplies, and equipment not furnished by the Owner, construction
tools, equipment, and plant, and the performance of all necessary labor,
for and in connection with the construction of certain improvements
designated, defined, and described in the said Contract and the conditions
thereof, and in accordance with the Contract drawings and specifications
therefor; a copy of the said Contract being attached hereto and made a
part hereof; and,
WHEREAS, the laws of the State of Colorado require that a bond
be executed and delivered by the Contractor and a qualified corporate
Surety, for the payment of any labor performed or materials, supplied or
equipment furnished, used and consumed in the performance of the work to
be done, and this Bond is executed in order to satisfy said requirements
of the laws of the State of Colorado; and,
NOW, THEREFORE, that if the Contractor shall well, duly and
faithfully pay all just claims and demands by, or in behalf of, any em-
ployee or other person, or any firm, association or corporation, for labor
performed, or material, supplies, or equipment furnished, used or con-
sumed by the Contractor or his, their, or its subcontractor, or subcon-
tractors, in the performance of the work, then this obligation shall be
null and void; otherwise, the Surety shall pay the full value of all such
claims or demands in any total amount not exceeding the amount of this
obligation, together with interest as provided by law; all said laborers
156
-------
Labor and Material Payment Bond
Page 2
and material men shall have rights under the within Bond as are set forth
in the statutes and laws of the State of Colorado.
THE UNDERSIGNED SURETY for value received hereby agrees that
no extension of time, change in, addition to, or other modification of the
terms of the Contract or work to be performed thereunder, or of the
specifications, or of the Contract document, shall in any way affect its
obligation on this Bond and the Surety does hereby waive notice of any
such extension of time, change, addition, or modification.
IN TESTIMONY WHEREOF the Contractor has hereunto set his hand
and the Surety has caused these presents to be executed in its name, and
its corporate seal to be affixed by its attorney-in-fact at
on this day of , 19 .
CORPORATE SEAL
Attest:
Secretary
Contractor
by
President
CORPORATE SEAL
Attest:
Surety Company
by
Attorney-in-Fact
(Accompany this bond with attorney-in-fact's authority from the Surety
Company certified to include the date of the bond.)
157
-------
PERFORMANCE AND MAINTENANCE BOND
KNOW ALL MEN BY THESE PRESENTS, That we
as Principal, and
with general offices in
a Corporation organized under the laws of the State of
and authorized to transact business in the State of Colorado as Surety,
are held and firmly bound unto , in the penal
sum of DOLLARS ($ ) ,
lawful money of the United States, in payment of which sum well and truly
to be made, the said Principal and Surety bind themselves, their successors
and assigns, jointly and severally, firmly by these presents.
Signed, sealed and delivered this day of
, 19 .
WHEREAS, said Principal has entered into a written contract with
the obligee dated , 19 , for furnishing all equip-
ment, labor, tools and materials for a gravity sewer line and a 1 1 appurtenances
in accordance with detailed plans and specifications on file in the office
of Briscoe, Maphis, Inc., 2336 Pearl Street, Boulder, Colorado, 80302,
a copy of which Contract is attached hereto and made a part hereof.
NOW THEREFORE, the conditions of the foregoing obligations are
such that if the said Principal shall well and truly perform all the
covenants and conditions of this contract on the part of said Principal to
be performed, and repair all defects for a period of one (1 ) year as pro-
vided herein, and protect and save harmless the
from all loss and damage to life or property suffered or sustained by any
person, firm or corporation, caused by said Principal or his agents or his
employees, in the performance of said work, or by, or in consequence or any
negligence, carelessness, or misconduct in guarding and protecting same,
or from any improper or defective equipment '>r materials used in the work,
158
-------
Performance and Maintenance Bon
Page 2
or other damages, costs and expenses as set forth in such contracts, then
this obligation shall be void, otherwise to remain in full force and effect
in law.
This Bond guarantees that the material and equipment furnished
and used, and workmanship employed in the performance of the work described
in this contract will be of such character and quality as to insure it to
be free from all defects and in continuous good order and in a condition
satisfactory to the Owner for a period of one (1) year from the date of
the issuance of the Certificate of Completion.
This Bond guarantees that the said Principal will keep and main-
tain the subject work without additional charge or cost to the Owner of a
period specified, and make such repairs of any defective construction as
the Owner may deem necessary.
The said Principal shall not be required to maintain any part
of the improvement under this guarantee which, after its completion and
acceptance shall have been removed or altered by the Owner or its agent.
PROVIDED FURTHER, that the said surety of value received
hereby agrees that no change in plans, extension of time, alteration or
addition to the terms of the Contract, or the work to be performed
thereunder, or the specifications accompanying the same, shall in any
way affect its obligation on this bond, and it does hereby waive notice
of any change in plans, extension of time, alteration or addition to the
terms of the Contract, or ;> the work, or the specifications.
IN TESTIMONY WHEREOF, the Contractor has hereun to set his hand
and the Surety has caused these presents to be exeucted in its name
and its corporate seal to be affixed ty its attorney-in-fact at
on this the
day of , 19 .
Contractor
by
President
159
-------
Performance and Maintenance
Page 3
Surety Company
by
Attorney-in-Fact
by
State Representative
(Accompany this bond with attorney-in-fact's authority from the Surety
Company certified to include the date of the bond.)
160
-------
TECHNICAL REPORT DATA
/Please read Instructions on the reverse before completing)
1. REPORT NO. 2.
EPA-908/4-78-005c
3. RECIPIENT'S ACCESSION NO.
4. TITLE AND SUBTITLE
Action Handbook: Managing Growth in the Small
Community — Part III - Community Action and Growth
Management
5. REPORT DATE
July 1978
6. PERFORMING ORGANIZATION CODE
7. AUTHOR(S)
James A. Murray
William Lamont, Jr.
8. PERFORMING ORGANIZATION REPORT NO.
9. PERFORMING ORGANIZATION NAME AND ADDRESS
Briscoe, Maphis, Murray & Lamont, Inc.
2336 Pearl Street
Boulder, CO 80302
10. PROGRAM ELEMENT NO.
11. CONTRACT/GRANT NO.
EPA 68-01-3579
12. SPONSORING AGENCY NAME AND ADDRESS
Office of Energy
U.S. EPA, Region VIII
1860 Lincoln Street
Denver, CO 80203
13. TYPE OF REPORT AND PERIOD COVERED
Final
14. SPONSORING AGENCY CODE
15. SUPPLEMENTARY NOTES
The Action Handbook consists of three parts which are designed to be used toqether.
Parts I, II, and III should not be ordered or issued separately.
16 ABSTRACT
The Action Handbook is designed to be a detailed "how to manage" manual for small
communities undergoing or facing the prospect of accelerated growth. The recom-
mendations and prescriptions may be of particular interest to small Rocky Mountain
communities facing rapid growth due to the surge in energy development activities.
However, the authors consider the material valid for a much broader range of com-
munities in terms of both size and of the causes of growth.
The handbook is divided into three parts for the reader's convenience. Part I is
k intended to give an overview of the community management process and to assist the
user in estimating how development of a certain type might affect the community's
needs for various public services, such as police officers, sewage treatment capa-
city, park land, etc. This part should be of interest to all those who wish to
understand potential community impact, and especially those who would initiate
community management and organization. Part II deals with approaches to getting
the community involved and organized. It suggests a working model for the community
organizers. Part III focusef on community action and growth management. This part
will be of greatest interest to those closely involved in making government work
to manage growth.
17. KEY WORDS AND DOCUMENT ANALYSIS
a. DESCRIPTORS
.1.. ENTIFIERS/OPEN ENDED TERMS
c. COSATI Held/Group
Energy Impacts
Growth Management
Community Management
Socio-Economic Impacts
Rural Communities
18. DISTRIBUTION STATEMENT
Release unlimited
19. SECURITY CLASS (This Report)
Unclassified
21. NO. OF PAGES
182
20. SECURITY CLASS (Thil page)
Unclassified
22. PRICE
CPA f arm 2220.1 (Rtv. 4—77) previous edition is obsolete
.vll. S. GOVERNMENT PRINTING OFFIT.F 1Q7ft-77ft-Boo ft
------- |