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CO J.NiCIL MEETING <br />REQUEST FOR COUNCIL ACTION J U N 2 4 1996 <br />CITYOFORONO <br />DATE: June 20, 1996 <br />ITEM NO: / / <br />Department Approval: <br />Name <br />Title <br />Item Description: <br />Administiatpr Reviewed:Agenda Section: <br />7 <br />Local Performance Aid Certification <br />Attachments: A.Memorandum from the Minnesota Department of Revenue describing the <br />new Local Performance Aid Program <br />The City currently receives approximately $300,000 per year in HACA (Homestead and <br />Agricultural Credit Aid) revenue. The 1996 State legislature has taken a portion of the current <br />HACA aid funding and placed it into a new program called the Local Performance Aid (LPA) <br />program. For Orono this amounts to approximately $8,400. Under the new program Orono’s <br />HACA aid will be reduced by $8,400. However, Orono ean recapture this aid amount through <br />the LPA program. <br />The LPA program, as its name implies, is a program to encourage cities to develop performance <br />standards or measures related to the delivery of various city services. This involves first <br />developing basic units of measurement for each service. The next step is to develop <br />performance standards to measure the efficiency and effectiveness of each of these service areas. <br />In order to be eligible for the LPA aid, the eity needs to begin a process to develop performance <br />measures. Although the relatively small amount of the LPA aid is not a significant incentive to <br />Orono, the concept of performance measures for the delivery of city services does have merit. <br />The lake area city managers and administrators have included efforts to develop performance <br />measures in their work plan for the next six months. The one caution is that it is important the <br />time, effort and resources required to develop and carry out a performance measurement <br />program do not exceed the benefits provided by the program. <br />Staff Recommendation <br />Staff recommends moving ahead with efforts to develop performanec measures. <br />COUNCIL ACTION REQUESTED <br />Motion to support efforts to develop performance measures for the delivery of city services, and <br />to authorize the Mayor and one councilmcmber to sign the LPA certification to indicate the city <br />is in the process of developing and implementing a system of performance measures.