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RKPOKl SUMMARY <br />Local governments should be given increased <br />options for managing funds now designated <br />for a certain service and controlled by other <br />units of government. The local government, <br />working closely with citizens, would design <br />the service, select the vendor and manage the <br />service budget. <br />Tlic transit programs developed by Maple Grove <br />and other suburbs provides a good example of <br />how local governments can develop a new rela­ <br />tionship with a regional operating agency such as <br />the Metropolitan Transit Commission. The close <br />involvement of citizens helps make the approach <br />successful. <br />Another example might involve cities receiving a <br />budget with which to buy certain criminal justice <br />services now provided by their local county. <br />Cities might continue to use the local county as <br />the vendor. But, maybe they would see if other <br />counties could provide the services on a more <br />effective or more economical basis. <br />Neighborhood-level organizations should be <br />given options for managing the funds <br />designated for a certain service, including the <br />authority to design the service and select the <br />vendor. <br />In past reports, the League has recommended that <br />cities foster the development of neighborhood <br />service delivery models. Now we propose that <br />neighborhoods should be able to petition a local <br />government for the opportunity to manage part of <br />a local service budget. <br />The issue here is whether neighborhoods could <br />provide the service better or could buy it better <br />than the city is already doing. Our committee <br />heard from the Whittier Alliance (of Minneapolis) <br />about its ideas for taking the money now spent on <br />Whittier Park and using it to desi^ and provide <br />park programs. Perhaps the neighbors would <br />develop a contract with the Park Board or <br />consider other vendors. Perhaps volunteers <br />would take some responsibilities for organizing <br />programs and mainuining the park. <br />Creating opportunities for such neighborhood- <br />based initiatives requires some rules or structure; <br />obviously not Ju.st anyone can cone in to scoop <br />up some money. However, if this option will be <br />useful, then the local government can't be a gate­ <br />keeper with all authority for approving or <br />rejecting the neighborhood's proposal. One <br />approach would be for the Legislature to identify <br />ground rules for a viable proposal. <br />Individuals should be given options for <br />taking funds designated for a certain .service <br />and managing a budget where the individual <br />has designed the program and selected the <br />vendor. <br />An example of this approach is the Dakota <br />County account management program for larnilics <br />of persons with developmental disabilities. <br />DEVELOP PUBLIC SERVICE <br />ENTERPRISES <br />One of the mo.si significant ways of expanding <br />choices for elected officials is to reinforce the <br />fundamental distinction between local govern­ <br />ments deciding and doing. Wc propose to create <br />new opportunities for local governments to shed <br />some of their operating responsibilities and <br />operate as sophijeticated buyers of ser\'ices. <br />Wc recommend: <br />□ Local governments should be autho­ <br />rized and encouraged to transform <br />their operating bureaus into <br />enterprises. <br />A local government unit, such as a city or county <br />public works department, could be transformed <br />into a public service enterprise. In turn, city <br />councils or county boards could enter into a <br />contract for services with the new entities. In <br />addition, the new entcrpri.se could market its <br />services to other cities, counties or school <br />districts in tlx: area. <br />Transforming government departments into <br />enterprises builds on examples already in place of <br />governments buying services from each other. <br />For example, the city of Roseville maintains the <br />grounds at the schools in the Roseville district. <br />This is a very good example of how schools <br />could use different approaches to organizing <br />those administrative and support services that are <br />outside .'icircorv rcspc.isibiliiy ofir.sircciion. <br />The purpose of creating this contracting option <br />(or any contracting option) is not to pay less for <br />services but to provide serv ices more effectively. <br />In setting up enterprises, local governments <br />should give them .additional flexibility and signifi­ <br />cant responsibility. Thus, to the extent th.at civil <br />service systems or procurement requirements