the twin cities met council: a comparative assessment · 2018. 8. 18. · katana community | 7 the...

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The Twin Cities Met Council: A Comparative Assessment

Kevin Terrell April 2016

katana community


ProponentsoftheMetCouncilassertthatitsuniquegovernancestructure(100%appointed),providestheMSPregionwithadvantagesovertherestofthena?on’sregionalbodies,includingbeBerplanningandbeBergrowth.Cri?csoftheMetCouncilchargethatthegovernancestructurecreatescredibilityproblemsduetoalackoftransparencyandaccountabilitytothemunicipalofficialselectedbyvotersintheregion.Thesecredibilityproblemshaveinturnledtoacomplicatedweboforganiza?ons(e.g.CTIB,TABetal)thataBempttobringelectedofficialsintothedecision-makingprocess.Cri?csfurtherchargethattheCouncil’sscopeofauthoritygreatlyexceedsthatofotherregionalbodies,yetitsperformanceisnotexcep?onal.Thispresenta?onisdesignedtogivelawmakersandci?zensbasicinforma?onabouthowtheMetCouncilcomparestootherlarge,metroareabodiesbothintermsofgovernancestructureandscopeofauthority.Ontheassump?onthatregionalplanningauthori?escaninfactmakeadifferenceonkeyindicatorsofgrowthandprosperity,thepresenta?onprovidescontextfortheMetCouncil’sperformance.Finally,thispresenta?onwillbrieflyreviewalterna?vestoMSP’sMetCouncil.

Introduc*on


GovernanceandspendingScopeofauthorityandoutcomesAlterna5ves


Intermsofansweringtovoters,theMetCouncilisarguablytheLEASTACCOUNTABLEoftheregionalauthori*esinthecountry

100%appointedbyGovernor

Appointments&COGhybrid

CouncilofGovernments VoluntaryCOG

•  TwinCi*es

NOTE:Thecouncilismadeupof17ci?zens,noneofwhomareelectedofficialsfromlocalgovernments

•  Boston•  Miami•  Philadelphia•  Tampa

NOTE:Noneareweightedinfavorofgubernatorialappointees

•  Atlanta•  Bal5more•  Chicago•  Detroit•  Denver•  LosAngeles•  Phoenix•  StLouis•  SanDiego•  SanFrancisco•  SeaBle•  WashingtonDC

•  Dallas•  Houston

Boardstructureoflargemetroareaplanningauthori*es

Note:ExcludesNYC

Leastaccountable Mostaccountable

DirectlyElected

•  Portland


StatestatutedescribestheprocesstoselectMetCouncilmembers.ButtheboMomlineisthatthegovernorcanlegallyappointanyoneheorshewantsfortheCouncil


Drivenbyitsbroadscope,theMetCouncil’sopera*ngBUDGETISTHELARGESTinthecountry,andislargerthanthecombinedbudgetsof17otherregionalauthori*es

NOTE:Analysisofmostrecentlyapprovedorganiza5onalbudgetthatisavailableonline.Seeappendixfordetails.ExcludesNewYorkCity

$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

$800,000,000

$900,000,000

$1,000,000,000

AnnualOpera*ngExpendituresoftheLargestRegionalAuthori*es

$755Mcombined


TheMetCouncilistheonlyregionalauthoritythatcanindependentlyINCREASETAXES,whichitdoesviaits$80Mpropertytaxlevy.Again,itprovidesnodirectrepresenta*on

SOURCE:PortlandandSanDiegolevytaxes,butneithercanincreasetaxeswithoutapprovalfromvoters

Authoritytoincreasetaxes Noauthoritytotax/independentlyincreasetaxes

•  TwinCi*es •  Atlanta•  Bal5more•  Boston•  Chicago•  Dallas•  Denver•  Detroit•  Houston•  LosAngeles•  Miami

•  Philadelphia•  Phoenix•  Portland*•  SanDiego*•  SanFrancisco•  SeaBle•  StLouis•  Tampa•  WashingtonDC

Taxingauthorityofthelargemetroareaplanningauthori*es

Mostauthority Leastauthority


TheMetCouncil’s$80Mpropertytaxlevy,at<10%ofitsbudget,supportsmorespendingthantheen*rebudgetfor15ofthelargestregionalauthori*es

SOURCE:Analysisofmostrecentlyapprovedorganiza5onalbudgets;excludesNYC

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

MetCouncilTaxLevyvs.En*reOpera*ngBudgetofLargeRegionalAuthori*es


TheMetCouncil’s$80Mpropertytaxlevywouldmakeitthe3rdlargestmunicipalpropertytaxlevyinMinnesota

SOURCE:MinnesotaCityBudgets,2015Summary,OfficeoftheStateAuditor,20largestpopula5onci5esinMinnesota

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

MetCouncilPropertyTaxLevyvs.the20LargestMinnesotaCi*es


Innon-urbanizedareaswith<50Kresidents,Minnesota’sRegionalDevelopmentCommissionshaveelectedofficialsfromcoun*esandci*es

MinnesotastatutedefiningthemembershipofRegionalDevelopmentCommissions


Infact,nearlyallofMinnesotahasaregionalauthoritywithelectedofficialswhorepresentdiversecons*tuenciesandcooperatetoadvancecommoninterests

Minnesotaregionalauthori*es Groupsexplicitlyrepresented

Minnesotanon-urbanizedregion Majorityelectedofficials? Coun*es Ci*es Schools PublicInterests

ArrowheadRDC Yes ✔ ✔ ✔ ✔

EastCentralRDC Yes ✔ ✔ ✔ ✔

HeadwatersRDC Yes ✔ ✔ ✔ ✔

Mid-MinnesotaDC Yes ✔ ✔ ✔ ✔

NorthwestRDC Yes ✔ ✔ ✔ ✔

Region5DC Yes ✔ ✔ ✔ ✔

Region9DC Yes ✔ ✔ ✔ ✔

SouthwestRDC Yes ✔ ✔ ✔ ✔

UpperMinnesotaValleyRDC Yes ✔ ✔ ✔ ✔

WestCentralIni5a5ve Yes ✔ ✔

Urbanizedareaauthori*es

Duluth-SuperiorMPO Yes ✔ ✔

GrandForks-EGrandForksMPO Yes ✔ ✔

Fargo-MoorheadMetroCouncil Yes ✔ ✔

StCloudAreaPlanningOrg Yes ✔ ✔

Rochester-OlmstedCOG Yes ✔ ✔

LaCrosseAreaPlanningOrg Yes ✔ ✔

Mankato/NMankatoAPO Yes ✔ ✔

MetCouncil(TwinCi*es) No No No No SomeNOTE:“Publicinterests”Includesci5zengroups(notelected)andNa5veAmericanrepresenta5vesinthoseregionswithatribalcouncil.Ci5esincludestownships.WCIfulfillstheEconomicDevelopmentDistrictroleandhasarelatedboardcomposedofelectedofficials


theLEASTaccountable

theLARGESTbudget

withuniqueTAXINGAUTHORITY

Is

that

LEGITIMATE?


GovernanceandspendingScopeofauthorityandoutcomesAlterna5ves


TheMetCouncilhasthebroadestscopewiththemostauthorityofanyregionalcouncil,asitplans,ownsandoperatesmuchoftheregion’scoreinfrastructure

NOTE:NewYorkCityexcluded

Region Transport Wastewater Drinkingwater Housing Parks Aging Workforce

MSP $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Atlanta $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Bal5more $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Boston $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Chicago $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Dallas $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Denver $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Detroit $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Houston $OPC $OPC $OPC $OPC $OPC $OPC $OPC

LosAngeles $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Miami $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Philadelphia $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Phoenix $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Portland $OPC $OPC $OPC $OPC $OPC $OPC $OPC

SanDiego $OPC $OPC $OPC $OPC $OPC $OPC $OPC

SanFrancisco $OPC $OPC $OPC $OPC $OPC $OPC $OPC

SeaBle $OPC $OPC $OPC $OPC $OPC $OPC $OPC

StLouis $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Tampa $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Washington $OPC $OPC $OPC $OPC $OPC $OPC $OPC

Scopeofthelargestmetroarearegionalauthori*esMajorfundingsourceOwn/OperateinfrastructurePlanningthatdrivesrequiredac5onCoordina5onordataonly

$OPC


Onekeyoutcomeofagoodregionalplanningprocessislocalpopula*ongrowth.Onthatmeasure,MSPtrailsitsclosestpeerregions

Cumula*veMetropolitanSta*s*calAreaPopula*onGrowth,1990–2015

SOURCE:Census.gov;2015figuresarees5mated

Largeregionaverage

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%Peerregion


Over*me,rela*vejobgrowthintheregionhasalsofaredpoorly

IndexedJobGrowthbyMetropolitanSta*s*calArea,2003-2015

SOURCE:hBp://www.newgeography.com/content/004941-large-ci5es-rankings-2015-best-ci5es-job-growth.Theindexcomparestherobustnessoflong-term,medium-andshort-termjobgrowth

0

10

20

30

40

50

60

70

80

90

100

Peerregion


TheMetCouncilleadslocaltransporta*onplanning,andownsandoperatesthecoretransitsystem.YetMSP’stransitridershiptrailsourclosestpeerregions

0

20

40

60

80

100

120

140

160

Annualpassengertripspercapita,2013

SOURCE:APTA2015FactBook,Unlinkedpassengertripsbytransitinurbanizedareas

Peerregion


Failuretoreformgovernanceflawshasledtoaseriesofinefficient“Band-Aids”tomeetlegalandlocalneedsfortransporta*onplanningandopera*on

*GovernanceofTransitintheTwinCi?esRegion,Legisla5veAuditor,2011

•  “Coordina?onamongtransitorganiza?onsintheregionis?meconsumingandinefficient.”*

•  “Changingthecomposi?onoftheMetropolitanCouncilisthefirststepinimprovingthegovernanceoftransitintheregion”*

•  “AcentralgovernanceissuehasbeentheMetropolitanCouncil’slackofcredibilitywithelectedofficialsandothertransitstakeholders”*

Transporta*onAdvisoryBoard(TAB)•  Createdtomeetfederalrequirementsthatregionalplanningorganiza5onshaveamajorityofelectedofficials

•  IftheMetCouncilfollowedna5onalnorms,TABwouldnotneedtoexist

Coun*esTransitImprovementBoard(CTIB)•  CTIBallowsthefivesuburbancoun5estotaxandinvestintheirpriori5es

•  IftheMetCouncilfollowedna5onalnorms,CTIBmightnotexist

Suburban“optout”transitagencies•  TheMetCouncilisaplanningorganiza5onthatisperceivedasusingitsabilityto(re)directunrelatedfundingstreamstoensure“compliance”withCouncilgoals

•  Opera5ngtheirowntransitsystemsallowslocalcommuni5estheabilitytomorenimblymeetlocalneeds,andprovidesahedgeagainsttheMetCouncilusingMetroTransittoenforcecompliancewithotherrequirements

Currenttransit“Band-Aids”


TheMetCouncilistheonlyregionalauthoritytoownpublichousing,andtoadministeran*-povertyhousingprogramstothousandsofhouseholds

SOURCE:hBp://metrocouncil.org/About-Us/Facts/HousingF/FACTS-Affordable-Housing.aspx


TheMetCouncilistherareregionalauthoritythatseekstodispersewhatitconsiderstobeareasofconcentratedpovertybydirec*nghousingpolicytoci*es

SOURCE:hBp://metrocouncil.org/Communi5es/Planning/Local-Planning-Assistance/System-Statements.aspx?source=child;hBp://metrocouncil.org/About-Us/Facts/HousingF/FACTS-Affordable-Housing.aspx

TheCouncilhasalsodeterminedtheregionalneedforlowandmoderateincomehousingforthedecadeof2021-2030(seePartIIIandAppendixBintheHousingPolicyPlan).Andover’sshareoftheregion’sneedforlowandmoderateincomehousingis483newunitsaffordabletohouseholdsearning80%ofareamedianincome(AMI)orbelow.Ofthesenewunits,theneedisfor278affordabletohouseholdsearningatorbelow30%ofAMI,188affordabletohouseholdsearning31%to50%ofAMI,and17affordabletohouseholdsearning51%to80%ofAMI.

CouncildetermineshousingneedsCommuni5esintheseven-countymetroareaservedbyregionalormunicipalwastewatertreatmentarerequiredbystatelawtoplantomeettheirlocalshareoftheregion’soverallprojectedneedforlow-andmoderate-incomehousing.TheCouncildeterminestheoverallneedandthenallocatessharesbasedoneachcommunity'sforecastedhouseholdgrowth.Addi5onalfactorstheCouncilconsidersinalloca5ngtheaffordablehousingneedtocommuni5esincludera5ooflow-incomejobstolow-wageworkersandthecurrentstockofaffordablehousinginthecommunity.Eachcommunityisresponsibleforiden5fyingtheamountoflandneededtoaccommodatebothitsoverallforecastedgrowthanditsshareoftheregion’saffordablehousingneed.

SampleMetCouncilhousingdirec*ve:Andover

96%atorbelow50%AMI


Accep*ngforthemomentthatdispersingpovertyshouldbeinitsscope,theMetCouncil’scontroloverrelatedhousingpolicyandinfrastructurehasyieldedpoorresults

0%

5%

10%

15%

20%

25%

Percentageofpoorresidentslivinginareasofextremelyconcentratedpoverty(40%+),2012

SOURCE:hBp://www.brookings.edu/research/interac5ves/2014/concentrated-poverty#/M33100; Detroitexcluded

Portland,SeaBleandDenvercombinedhaveaboutthesamenumberofpoorresidentslivinginareasofextremelyconcentratedpoverty(33,707)asMSP(32,863),despitehaving2.5xtheoverallpopula5onasMSP

7,30311,292

15,112

32,863

Totalpoorresidentsinareasofextremely

concentratedpoverty

Peerregion


theLEASTaccountable

theLARGESTbudget

withuniqueTAXINGAUTHORITY

withtheLARGESTSCOPE

Growth:TRAILPEERS

Transit:TRAILPEERS

Housing:TRAILPEERS

IsthatGOOD?


Not...Moreeffec*ve

Not...Legi*mate

Not...Replicated

Auer50years...

Trysomethingelse


GovernanceandspendingScopeofauthorityandoutcomesAlterna*ves


GOVERNANCE:Ifyouerr,erronthesideofmoredemocracy,morelocalinvolvement,moreelectedofficials.Everyothercouncilhasmoredemocra*cgovernancethanMSP

Descrip*on

Advantages

Disadvantages

•  LeavetheCouncil100%,oramajority,appointedbytheGovernor

•  Somebelievethismodeldefeatsparochialinterestsinfavorofregional“needs”and“efficiency”

• Wecon5nuetohaveanunaccountablebodywithauthorityoverdulyelectedofficials

Gubernatorialappointees

Samplealterna*vegovernancestructures



Noregionalauthority

Descrip*on

Advantages

Disadvantages


•  Addressregionalconcernswithanewstateagencychargedwithaclearmandatetofocusonplanninginfrastructureinvestments.Ideallyitwouldbeaccountabletothelegislature


•  Thereisbroadconsensustojointlyandeffec5velyplaninvestmentsthataccommodategrowth.

•  Thereisnotconsensusforittodirectgrowth

•  Limitedanddefinedscopewithaccountabilitytothelegislaturewouldincreasetheorganiza5on’slegi5macy


•  Thisisasignificantshirinmindsetforthelocalpoli5calcommunity,andcouldbedifficulttoachieve





Electedbody Noregionalauthority

Descrip*on

Advantages

Disadvantages


•  SimilartoPortland’scouncil



• Wewouldhaverepresenta5veswhoaredirectlyaccountableforregionalpolicy,spendingdecisionsandoutcomes





• Wealreadyhavelocalrepresenta5veswhoarechargedwith,andcapableofdealingwiththeissuesathand.Whydoweneedanotherlayerofgovernment?






CouncilofGovernments Electedbody Noregionalauthority

Descrip*on

Advantages

Disadvantages


•  Anassemblyofexis5ngelectedlocalofficials,withrepresenta5vesfromcoun5esandmunicipali5es

•  SimilartoPortland’scouncil



• Wewouldhavedirectlyaccountableandexis5ngelectedofficialsresponsiblefordecisions

•  Itmirrorsthestructureofothermajorregionalauthori5es,andwouldallowtheregiontoeliminateseverallayersofinefficiencyintransporta5onplanning

• Wewouldhaverepresenta5veswhoaredirectlyaccountableforregionalpolicy,spendingdecisionsandoutcomes





• Wealreadyhavelocalrepresenta5veswhoarechargedwith,andcapableofdealingwiththeissuesathand.Whydoweneedanotherlayerofgovernment?


•  Likemostdemocra5cprocesses,itcanbeanoisyandamessypathtocompromiseandprogress




SCOPE:Limi*ngaregionalauthority’sscopetoplanningcoreinfrastructureinvestmentsisanotherwaytogainconsensus,enhancelegi*macyandaccelerateprogress

CurrentMetCouncilrole Alterna*vetoconsider

• Thecouncilnotonlyplans,butoperatesthesystem

• Separatetheopera5onofthetransitsystemtoitsownagency,therebyelimina5nganyperceivedconflictofinterest

Transit

Func*on

• Aswithtransit,theCouncilcontrolsplanningandopera5onofthesystem

• Separatetheopera5onofthewastewatersystemtoitsownagency,therebyelimina5nganyperceivedconflictofinterest

Wastewater

• TheCouncilcreatestheplans,assignsdeliverables,metesoutincen5ves,ownsandoperateshousing,andmanagesassistanceprograms

• Countyandcity-levelHousingandRedevelopmentAuthori5esarecapableofmanagingthis,orformingtheirownconsor5umtoefficientlyprovideservices

Housing

Selectedalterna*vestotheMetCouncil’scurrentscope


About

KatanaCommunityisanon-par5sanpublicpolicygroupledbyKevinTerrell.Thegroup’sfocusisonprovidinginsightsthatincreasethetransparency,accountabilityandeffec5venessofalllevelsofgovernment.

Kevin’sacademicexperienceincludesanMBAfromtheUniversityofMinnesota'sCarlsonSchoolofManagement,andaBAinGermanandPoli5calSciencefromtheUniversityofNebraska,wherehewaselectedtoPhiBetaKappa.AspartofhisMBAhecompletedhisinterna5onalbusinessstudiesattheStockholmSchoolofEconomics,Sweden.PriortoworkingfortheDefenseIntelligenceAgency,healsocompletedMAworkinPoli5calScienceattheUniversityofIllinois,wherehefocusedoncompara5vepoli5cs.Kevin’sprofessionalbackgroundincludesP&LownershipinfirmsrangingfromtheFortune500tostartups,andcommercialleadershiprolesintopperformingorganiza5onssuchasMcKinsey&CompanyandGeneralElectric,wherehewasalsoa6SigmaBlackBelt.PriortohisMBA,heworkedfortheDefenseIntelligenceAgencyandasacontractorfortheCentralIntelligenceAgency.www.KatanaCommunity.com


GovernanceandspendingScopeofauthorityandoutcomesAlterna5vesAppendix


Resourcelinks:RegionalCouncilwebsiteandbudgetreferences

Region Regionalcouncilwebsite Councilbudget

MSP www.metrocouncil.org www.metrocouncil.org/About-Us/Publica5ons-And-Resources/BUDGETS-FINANCE/2016-Unified-Budget-Metropolitan-Council.aspx

Atlanta www.atlantaregional.com www.atlantaregional.com/about-us/overview/history-funding--membership

Bal5more www.baltometro.org www.baltometro.org/phocadownload/Publica5ons/Annual_Reports/BMCAnnual2014.pdf

Boston www.mapc.org www.mapc.org/financials-work-plan

Chicago www.cmap.illinois.gov www.cmap.illinois.gov/about/budget-and-work-plan

Dallas www.nctcog.org www.nctcog.org/aa/docs/CAFR2015.pdf

Denver www.drcog.org drcog.org/sites/drcog/files/resources/2016-Budget-10-14-2015.pdf

Detroit www.semcog.org hBp://www.michigan.gov/documents/treasury/827655SoutheastMICouncilofGovernments20110322_348672_7.pdf

Houston www.h-gac.com www.h-gac.com/annual-reports/documents/2015-State-Auditors-Report.pdf

LosAngeles www.scag.ca.gov hBp://www.scag.ca.gov/Documents/FinancialReport063015.pdf

Miami sfregionalcouncil.org floridaregionalcounselsa.homestead.com/FRCA_Annual_Report_2014-2015.pdf

Philadelphia www.dvrpc.org www.dvrpc.org/reports/AR2015.pdf

Phoenix www.azmag.gov hBp://www.azmag.gov/Documents/Fiscal_2015-05-28_FY2015_PIB-FINAL.pdf

Portland www.oregonmetro.gov hBp://www.oregonmetro.gov/sites/default/files/FY14-15_ADOPTED_VOL1.pdf

SanDiego www.sandag.org hBp://www.sandag.org/uploads/publica5onid/publica5onid_1957_19285.pdf

SanFrancisco www.abag.ca.gov hBp://abag.ca.gov/abag/overview/workplan/ProposedABAGBdgtWrkPrg2016-17.pdf

SeaBle www.psrc.org hBp://www.psrc.org/assets/12254/BudgetFY2016-17Supp.pdf?processed=true

StLouis www.ewgateway.org hBp://www.ewgateway.org/pdffiles/library/annualrpt2015.pdf

Tampa www.planhillsborough.org floridaregionalcounselsa.homestead.com/FRCA_Annual_Report_2014-2015.pdf

Washington www.mwcog.org www.mwcog.org/uploads/pub-documents/oV5aXlg20160316152248.pdf

Philadelphia www.dvrpc.org www.dvrpc.org/reports/AR2014.pdf

Budgetdocumentsforthelargemetroarearegionalauthori*es


Appendix:Budgets,AtlantaandBal*moreAtlanta Bal*more


Appendix:Budgets,BostonandChicagoBoston Chicago


Appendix:DallasandDenverDallas Denver


Appendix:DetroitandHoustonDetroit Houston*

*$115MisChildcareAssistanceProgram(CCAP)funding


Appendix:LosAngelesandMiamiLosAngeles Miami


Appendix:MSPandPhiladelphiaMSP Philadelphia


Appendix:PhoenixandPortlandPhoenix Portland

Excludingcapitaloutlays,the2014-2015requirementwas$410M


Appendix:SanDiegoSanDiego* SanFrancisco

*~$1billioniscapitalbudget,leaving$386Masannualopera5ngbudget


Appendix:SeaMleandStLouisSeaMle StLouis


Appendix:TampaandWashington,D.C.Tampa Washington,D.C.