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Southeast Michigan Council of Governments. Structure of Today’s Meeting. Confirm we’ve captured the problem Make sure we’ve identified the solutions Brainstorm on action steps Confirm and expand on those provided Prioritize Leadership/responsibility. Structure of Today’s Meeting.
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Structure of Today’s Meeting • Confirm we’ve captured the problem • Make sure we’ve identified the solutions • Brainstorm on action steps • Confirm and expand on those provided • Prioritize • Leadership/responsibility
Structure of Today’s Meeting • Small group discussions • Note taker/facilitator • Overview of process
Challenges • Be constructive, not “whiny” • Craft solutions and action steps that aren’t about getting more money
Description of the Problem Inadequate revenue to maintain what we have Trend of Lane Miles in SE MI 2004 - 2008
Description of the ProblemUnderinvestment is an increased cost, not a savings Cost of Pavement Management
Description of the ProblemWe have more than we need, so right size 1970 4.7 million people 2020 4.4 million people 2000 2.9 million jobs 2020 2.5 million jobs
Description of the ProblemFiscal resources constrained, not temporary Median Household Changes: 2000 – 2008 • Income: down 16.1% • Total housing costs: up 18.1% • Spending on Utilities: up 21.2% • all figures in 2008 dollars • Taxable property value: declining ≈ 20%
Description of the ProblemFiscal resources constrained, not temporary • Taxable Property Value – Real Dollars
Description of the ProblemFiscal resources constrained, not temporary • Taxable Property Value – Real Dollars 2011 138B
Description of the ProblemFiscal resources constrained, not temporary • Taxable Property Value – Real Dollars • Assumes: • 2.7% annual inflation • Annual growth in property value is at least 2.7%
Description of the ProblemFiscal resources constrained, not temporary • Taxable Property Value – Constant Dollars (2000) Reality is: In constant dollars, revenue is capped where your taxable value bottoms out – but …
…what about growth?Must differentiate type of growthTax revenue = rate x base
…what about growth?Must differentiate type of growthTax revenue = rate x base
Description of the Problem What’s our future??? • Taxable Property Value – Constant Dollars (2000)
Most likely scenario?(1-5 years) • Doubled vacancy rate (2000-2008) • Glut in housing • Continued job loss, slow job growth • Declining wges • Continued population decline • Household size increasing …. What’s your likely scenario?
Description of the ProblemNeeds and expectations drive costs • Level of congestion • Peak water needs • Peak energy needs • Frequency of sewer overflows • Reducing carbon footprint • Etc., etc., etc.
Components of the Solution Restructured revenue collection systems Others: TBD Strategically invest funds to maximize all infrastructure performance Holistic view of needs and outcomes Cost of different levels of service Collaboration amongst providers
Proposed Action Steps Restructured revenue collection systems • Seek commitment to true cost of service • Frame true cost of service principles • Examine revenue generation potential reflecting new realities • Other
Proposed Action StepsHolistic view of needs and outcomes • Reestablish targeted outcomes based on “full view” instead of by area of interest • Benchmark decisions based on how they contribute to agreed on outcomes
Proposed Action Steps Collaboration amongst providers • Seek formal agreement to cooperate from service providers • Identify specific issues on which to cooperate • Service areas; new, existing • Maintenance/asset management • Other
Proposed Action Steps Cost of different levels of service • Investigate changes to public expectations • Explore alternative approaches for meeting regulations • Examine costs of alternatives
Proposed Action Steps Strategically invest funds to maximize all infrastructure performance • Connect economic development plans and service provider plans • Inform service providers where service will be needed • Regional Economic Strategy? • Focus services where infrastructure capacity exists
Structure of Today’s Meeting • Small group discussion on 3 parts • Not consensus—get ideas out • Summary and discussion by large group • We’ll compile for next meeting.
Structure of Today’s Meeting • Small group discussion on 3 parts • Not consensus—get ideas out • Summary and discussion by large group • We’ll compile for next meeting.
1st Group DiscussionDescription of the Problem10 – 15 minutes • What should be added, deleted or modified? • Why?
2nd Group DiscussionComponents of Solution10 – 15 minutes • What should be added, deleted or modified? • Why?
3rd Group DiscussionAction Steps20 – 30 minutes • What should be added, deleted or modified? • Why? • What additional details should be included? • What is the priority of action steps? • Who should lead implementation?