06-23-1997 Council Packet - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION ^3Ciry OPo DATE: June 17,1997 ITEM NO: y ?0/Vo Department Approval:Administrator Reviewed:Agenda Section: Name Ron Moorse City Administrator's Title City Administrator Report Item Descriptio;.: Local Performance Aid Certification In 1996 the State Legislature took a portion of the Homestead and Agricultural Credit Aid (HACA) received by cities and placed it into a new program called the Local Performance Aid (LPA) program. For Orono the Local Performance Aid in 1996 was approximately $8,400. It appears the Orono's allocation of LPA revenue for next year will be approximately $9,300. The LPA program, as its name implies, is a program to encourage cities to develop performance standards or measures related to the delivery of various city services. This involves first developing basic units of measurement for each service. The next step is to develop performance standards to measure the efficiency and effectiveness of the delivery of each of these services. In order to be eligible for the LPA aid, the city needs to begin a process to develop performance measures. Although the relatively small amount of the LPA aid is not a substantial incentive to Orono, there has been some discussion at the Legislature about expanding the LPA program to increase the amount of aid available. Several groups of City Managers and Administrators around the Metro area are involved in discussions regarding the development of performance measures for city service delivery. The one caution is that it is important the time, effort and resources required to develop and carry out a performance measurement program do not exceed the benefits provided by the program. In order to continue participation in the LPA program for the next year, the city needs to sign a certification of local performance measures that includes three items: 1.The city needs to affirm that the LPA will result in a reduction in property taxes at least equal to the amount of the Local Performance Aid received. This is a straight lOrward affirmation since any additional aid received from the State will offset the need for property taxes to fund city operations. The city must affirm that the Local Performance Aid will be spent on the program or programs for which it has developed a system of performance measures, and that these measures will allow for the measurement for continued improvement and will be regularly compiled and presented to the City Council at least once per year. The