Opportunities for Local Government Efficiencies – Real Examples from Across the State

May 19, 2009

Charles Zettek Jr.Director of Government Management Services

585-327-7068 or czettek@cgr.org

What are factors for success?

Is the objective structural change or real and measurable savings?

Are savings measured as local tax savings or true net savings within the system?

Assume – want to achieve real savings, not simply a tax shift.

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Structure versus System Costs

Structure costs – inefficiencies caused by too many decision makers – too many layers Basic governance cost question Costs optimized within borders but not

regions

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Fire Stations in Monroe County1.5 Mile Radius

Fir e d ep ar tm en tsþ

Mo nr oe Cou nt y

Legend

1 0 1 2 Miles

Structure versus System Costs

System Costs – inefficiencies caused by requirements imposed on everyone Example: laws governing hiring in the

public sector: Taylor, Civil Service, Triborough

Stifles creative alternative solutions

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Measuring Real Savings

Differentiate between: cost efficiencies ($), process efficiencies (time) knowledge efficiencies (results)

Cost shifts are not real NET savings But, cost shifts can reduce local property

taxes

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Real Examples - 1

Fire Example #1 – Town of Brighton/City of Rochester IMA Town pays City $100,000/year City provides immediate call response from

City fire station Savings:

• Real costs – efficient use of costly equipment• Response time • Sharing expertise

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Real Examples - 2

Fire example # 2 - Villages of Johnson City and Endicott – Shared Fire Chief Both villages have full-time career fire

departments Discussing sharing one chief Savings:

• Share cost of a chief• Structural efficiencies – can manage as two

units within a larger combined group8

Real Examples - 3

Police examples – Town of Clay police dissolution – contract

with Sheriff for specified service. $900,000 savings from staff reductions and other efficiencies

Other town/village police consolidations – Lancaster, Evans - true cost reductions

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Real Examples - 4

Courts Village courts dissolved – merged with

Town:• Albion, Brockport, Oakfield• Cost and process efficiencies

Shelby-Ridgeway Joint Town Court – 2003• Reduced from 4 justices to 2• Savings: - $14,000/year• True consolidation

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Real Examples - 5

Public Works – Town and Village of Cobleskill Single combined department with one

Director of Public Works Costs shared 50/50 Overseen by joint oversight board True cost savings: personnel - $50,000 Also process and knowledge efficiencies

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Real Example # 6

Central Business Office in BOCES – Broome –Tioga, Greater Southern Tier, Otsego Northern Catskills Prime benefits – fewer staff, integrated

systems (I.T.), knowledge efficiencies Savings are real, but also result in cost

shifts from local property taxes to BOCES

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Real Example #7

One Batavia – Town and City of Batavia Consolidation Discussions Public debate over the summer Interesting questions – what will be the

benefits, and what are the risks (i.e. does one side win at the expense of the other)

Two tiered taxing system examples exist – Rome, Oneida, Saratoga Springs

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Conclusion

So far have not reduced the number of governments (high level structures)

Have reduced internal structures Have reduced real costs (although

small %) More people are looking at

fundamental changes – dissolution and consolidation.

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