PMA: Municipal Role in Economic Development April, 2012

Overview 1.The Municipal Role in Economic Development 2.The Need for Collaboration 3.Municipal Economic Development Approaches 4.Opportunity Management

The Municipal Role in Economic Development

Context In 1995 the Community Taskforce on CED (which included MNL) released the Community Matters Report The report recommended legislative changes to give municipalities an explicit mandate in CED consistent with the role of REDBs In 1999, municipalities were given that role via legislation.

Context In 2005 the Ministerial Committee on the Process to Renew Regional Economic Development released its final report It recommended municipalities be engaged in the REDB planning process to ensure municipal priorities were addressed, REDBs include municipal seats, & government explore mechanisms for municipalities to contribute financially to the REDB process.

Context Municipalities need to play a central role in Community Economic Development (CED) if they are to flourish CED is a core service that must be provided or many communities will suffer or die Many municipalities dont recognize they have a role in CED Municipalities lack capacity (tax base, staff levels, skills currently required, engaged councils, partnerships, etc.)

Context Municipalities are busy with the provision of basic services (garbage collection, water & sewer, animal control, etc.) Many lack the willingness to act (difficult, competing priorities, government should do something) Many do not know where to start with economic development

Need for Collaboration

74% of municipalities have one full-time staff-person or less than full-time

2011 MNL Census of Municipalities 11.7% of small municipalities (fewer than 1000 residents) have economic development committees 27.9% of medium municipalities (between 1000 and 4000 residents) have economic development committees 88.2% of urban municipalities (more than 4000 residents) have economic development committees

Assessment Officer I AE&S (Student aid) Salary $43, $48, (GS-30) Client Services Off. AE&S (Client Services) Salary $49, $55, (GS-34) Manager of Compensation & Benefits (CNA) Salary: (HL 22) $65, $85, (Under Review)

Remuneration of Municipal Councils 74% of responding municipalities pay their mayor between zero and $2000 per year 77% of responding municipalities pay their deputy mayor between zero and $2000 per year 81% of responding municipalities pay their councilors between zero and $2000 per year.

Summary Most municipalities dont have the bodies, cash or skill sets required to engage in CED unless they work with others

Some Municipal / REDB Collaboration Regional Marketing Initiatives Facilitation of Regional ICSPs Formation / Support for Joint Councils Sector Development Initiatives Project Specific Support Proposal Writing Dedicated Development Resources Training / Capacity Building

Municipal Economic Development Approaches

Economic Development: A community informed, place-based, strategic approach to 1) developing new enterprises, 2) stabilizing existing enterprises 3) growing existing enterprises, 4) attracting new enterprises, or 5) creating the conditions for these activities to take place.

Why do we care? Business Taxes Employment Population Growth Community Confidence and Pride Benefits (Direct, Indirect and Induced) –Bigger homes –Better collection rates

Developing New Enterprises Social Enterprise Development Cooperative Development Incubation Responsiveness (permits, information) Promoting Entrepreneurship Sector Development Initiatives (e.g. Cranberries)

Stabilizing Existing Enterprises Land-use Planning Succession Planning Emergency Crisis Response Business Retention and Expansion Red-tape Reduction Industrial Related Benefits Competitive Tax Structures / Fees Access to Information and Programs

Growing Existing Businesses Big Industry – Small Towns Zoning Business Retention and Expansion Buy Local / Local Procurement Programs Regional Marketing Supporting Development Organizations Supporting Business Networks Industrial Water Supplies / Strategic Infrastructure

Attracting New Enterprises Strategic Infrastructure Community Profiles Investment Attraction Desks Tax Incentives (Edge) Websites Welcoming Communities Community Readiness Regional Marketing Land-use Planning

Opportunity Management

There is a difference between being busy and being productive!

Inputs Activities Outputs Immediate Outcomes Intermediate Outcomes To Accomplish Less control as you move up Final Outcomes The Logic Model To Accomplish

Inputs vs. Activities Inputs how we do it Resources (budget, staff & volunteers, information, offices, equipment, structure, etc.) used to carryout activities. Inputs can be outputs from another activity Activities what we do Collections of jobs/tasks that consume various inputs and whose outputs contribute towards one or more outcomes In summary, every REDB and every Municipality undertakes Activities that consume Inputs In summary, every REDB and every Municipality undertakes Activities that consume Inputs 26

Outputs vs. Outcomes Outputs what we produce The direct products and/or services (usually tangible and concrete) generated through activities (e.g. reports, symposiums, training session, terms of reference) Outcomes why we do it Benefits or desired states (not fully under our influence) to which the outputs of activities contribute In summary, every REDB and every Municipality undertakes Activities that consume Inputs to produce Outputs that contribute to one or more Outcomes In summary, every REDB and every Municipality undertakes Activities that consume Inputs to produce Outputs that contribute to one or more Outcomes 27

Staff, volunteer Committee, Budget, offices Contracting website developers, data collection Investment attraction website Foreign businesses aware of regional opportunities Foreign businesses locate locally To Accomplish Less control as you move up Direct employment, diversified economy, prosperous region Logic Model: Investment Attraction To Accomplish

Key Elements of OM 1.Identifying Economic Dev. Opportunities 2.Evaluating & Prioritizing Opportunities –Developing criteria, deliberating & ranking 3.Driving Opportunities –Assigning leads, project management, accountability & action plans 4.Constant Monitoring –Advance: Commit resources to progress idea –Rework: More investigation / rethinking –Kill: Stop working on idea & move on

Completed Municipal Initiatives ICSP Support Regional Infrastructure / Marketing Initiatives Proposal Writing ICSP Consultations Joint Councils Individual Municipalities PMA MNL REDB Municipal Reps Gate 5: Business Case Gate 2: Assessment Criteria Gate 3: Technical Feasibility Gate 4: Champion Gate 1: Core Functions Gate 6: Funding

You Buy a Car Cars SUVs Motorcycles Suggestions from Family Advertising Looking at cars on the Road Talk to Friends Check Consumer Reports Visit Car Lots Gate 5: Is it available locally? Gate 2: Is it the right size? Gate 3: Can I afford it? Gate 1: Do I like the way it looks? Gate 6: Do they take trade-ins / Can I get Financing? Buying a vehicle! Gate 4: Does it have good fuel mileage?

Why do we use Opportunity Management? Limited time, energy, funding, skill sets, etc. Transparent process Focus on things that make a difference Focus on things we can successfully complete

NOTE Many municipalities and community groups are now using OM to prioritize initiatives : House of Diamonds Art Corporation Town of New Wes Valley Town of Fogo Island Town of Glovertown Town of Centreville- Wareham-Trinity Cape Freels Heritage Trust Town of Port aux Basques EDANL Town of Port Hope Simpson Town of Marys Harbour Town of St. Lewis, Charlottetown, Cartwright…

We Need Municipalities to: Participate in REDB / regional OM Develop and use OM at the community level Partner with REDBs, private sector and other municipalities to help advance initiatives

We Need Municipal Staff to: Try to learn more about CED Learn from each other To remind their Councils that CED is part of their role To support their Councils in learning more about CED Engage in CED processes (REDBs, MNL, Memorial, Province) Let us know if there are supports that you need to engage in CED

Questions?

Thank You!