Economic Vitality Incentive Program (EVIP)- Category III

1. Economic Vitality Incentive Program (EVIP)- Category III Employee Compensation Revenue Sharing Compliance Webinar Presentation by: Bob Cady – Roseville Dave Boerger – SEMCOG Buzz Brown – SEMCOG/Munetrix April 17, 2013

2. Agenda • Introductions – Dave Boerger, SEMCOG • EVIP Overview – Buzz Brown, Munetrix/SEMCOG • Best Practice Case Study: • Bob Cady – Assistant City Manager/Controller - Roseville • Tools, Techniques & 2014 EVIP Outlook • – Buzz Brown – SEMCOG/Munetrix • Q&A/Wrap-up - Dave Boerger

3. Webinar Logistics • To ensure an audio connection to the Webinar, registrants should call-in using the phone number and access code below. • Call-in number: 866-939-8416 • Participant code: 3725034 • For questions, type into the text or chat boxes on the lower right hand side of your screen. Each will be answered at the end of the webinar • For technical help, call Jacque’l Smith at 313-324-3404

4. Webinar Logistics(cont’d) Copies of this presentation will be emailed after the Webinar Please compete a webinar evaluation that will be emailed with the presentation The webinar will be archived on the SEMCOG website; the link will be emailed with the evaluation.

5. EVIP Incentivizes Cost Savings to Offset Revenue Drops

6. EVIP Pushes Communities to Deal with Fiscal Distress

7. Fiscal Distress EasingSoutheast Michigan

8. Fiscal Best PracticesEVIP Categories Highlighted • Lead, engage & communicate openly with stakeholders • Consent on fiscal & operational assumptions & targets • Have a long range financial plan/multi-year budget • Measure performance, compare to others and set goals • Publish/update your fiscal data on-line

9. Fiscal Best Practices EVIP Categories Highlighted (cont’d) Reduce expenses and address unfunded legacy costs Collaborate with neighboring communities Develop contingency plans & alternative scenarios Regularly report fiscal results/keep stakeholders updated Recognize successes and address issues in a timely manner

10. EVIP Overview & Category III Best Practices Buzz Brown – Munetrix http://www.michigan.gov/treasury/0,4679,7-121-1751_2197_58826---,00.html

11. EVIP Overview • Economic Vitality Incentive Program (EVIP) • Replaces statutory revenue sharing • 106 out of 257 SE Michigan communities eligible • Encourage local governments to pursue best practices and cost-control • Recognize the uniqueness of each community

12. EVIP Fundamentals • Public Act 63 of 2011 introduced the Economic Vitality Incentive Program in 2012. Public Act 200 updated EVIP in 2013 • An eligible local government will receive 1/3 of their allocated statutory revenue sharing for each of the three categories for which specific requirements are met.  • The three categories and due dates are: • Accountability and Transparency (10-1-12) • Consolidation of Services (2-1-13) - collaborative grants available • Employee Compensation (6-1-13) • Each eligible local government must submit a certification form, required attachments and a website link for each category in order to qualify for payment by the dates indicated above.

13. Counties Now Eligible for EVIP • New this year - County Incentive Program (CIP) • Modeled after EVIP, counties now eligible for shares of appropriation following essentially same requirements • 62 out of 84 counties eligible • Compliance Dates and Rules for Counties the same

14. EVIP Category IIIOptions • Earn 1/3rd of your statutory revenue sharing funds via Category 3 Employee Compensationby pursing one of Several Options: • Submit an Employee Compensation Plan per PA-200 using form 4888 and submitting to the Dept. of Treasury • Certify that you will be opting out of provisions of PA-200 by adopting language from PA-152. This is primarily regarding employer/employee healthcare cost sharing • Opt out with 2/3rd vote of elected body • Must submit Board Action Documents AND form 4978

15. EVIP Category III Options(Cont’d) Option 1 -Employee Compensation Plan (PA-200) • When? • Must be received by Treasury June 1, 2013 • How? • Plan has to be made available for public viewing in the clerk’s office or posted on a publicly accessible Internet site. • Must submit a copy of your employee compensation plan, and form 4888 to the Michigan Department of Treasury. • Forms? • 4888 available using REPORT WIZARD on-line for users at Munetrix.com • Cover Letter available in Word (Resources) or as part of REPORT WIZARD

16. EVIP Category III Options(cont’d) • Options 2– Certification of PA 152 of 2011 compliance • 80/20 option with minimum employee cost share; • Submit annual resolution with mtg. minutes for Medical Benefit Plan Coverage Year • Annual Exemption for Calendar Year Option; • submit annual resolution and mtg. minutes showing 2/3’s vote for Medical Benefit Plan Coverage Year

17. EVIP Category III Options (cont’d)

18. Suggestions • Read the Statutes and get your Legal Counsel’s Opinion • This is not a data issue so all we can do is try and help you understand the laws and their elements. • Contact Department of Treasury if you have any doubt. • Submit something if you think you will be late. Treasury will help you fix your submittal but they DO NOT TOLERATE TARDINESS (4888-4978) • All Documents can be found on Munetrix (Resources) and our WIZARD creates form 4888. • - Remember the New Email Address for Treasury • Email:TreasRevenueSharing@michigan.gov • Phone: (517) 373-2697 Fax: (517) 335-3298

19. Compensation Plan Ideas Applicable to Employees(from recent survey of Mi. local government officials)

20. Compensation Plan IdeasApplicable to Retirees(from recent survey of local government officials)

21. Best Practices & Case Studies:Bob CadyAssistant City Manager/Controller – Roseville, MI

22. Developing Your Employee Compensation Plan • Identify your fully fringed compensation costs for all employee groups • Compare your costs to the State benchmarks described earlier • Solicit input from your employees to identify the relative importance of each compensation element • Identify potential employee compensation cost savings ideas • Share the ideas with and solicit feedback from the impacted employee/union groups

23. Developing Your Employee Compensation Plan(cont’d) • Develop your EVIP Employee Compensation Plan • Include status on the actions from your prior year plan • Qualify any planned actions that have Act 312 implications • Submit the plan to the State Treasurers Office by June 1, 2013 • Include the plan on your website and/or post @ Clerks office • Take actions to implement the plan, reporting progress regularly

24. Lessons Learned Deploying the EVIP Employee Compensation Plan • Make sure you’ve engaged your elected officials and union management on the development of the plan • Be careful what actions are included in the plan because progress to those plans will have to be reported with your EVIP submission the following year. • Take plenty of time to develop the plan as many stakeholders must be involved in the plan development • Arrange regular follow-up reviews with elected officials, staff and union officials throughout the year as the plan is being pursued

25. Live Munetrix DEMORoseville On-Line InfoAnd Other FeaturesBuzz Brown

26. 2014 EVIP OutlookDave Boerger – SEMCOG • Pending Legislation: HB 4220 (EVIP language begins on pg. 115 • PROPOSED Changes include: • Category I - Dashboard/Citizens Guide to include debt report • Category I - Include salaries, severance packages & service contracts over $25,000 • Category II - Privatization and innovation efforts added, as well as collaborations with universities and comm. colleges • Category III - Added requirements: Unfunded accrued liabilities, current pension multipliers, penalty for contract settlement between 12/12/12 and 3/28/13 not saving 10% • Senate legislation includes a 4.5% increase to EVIP funding • Stay Tuned for Final adoption language !!!

27. Wrap-up & Final ThoughtsDave Boerger • Communities have until June 1 to submit their EVIP Category III employee compensation info. • Learn from the best practices of Roseville and other EVIP eligible communities to maximize statutory revenue sharing funds • Employee benefit changes can help a community reduce costs to address fiscal challenges • Leverage SEMCOG & Munetrix on-line resources or solicit help from SEMCOG’s consulting team at no cost to member local governments

28. Sampling of Our Services • Shared service assistance • Privatization help • Court consolidation • Department consolidation • Munetrix fiscal information • AgileGov searchable database • Millage vote readiness assessment • Webinar training on timely topics • Citizen Guide/Dashboard dev. • Citizen surveys w/ Cobalt • Comparable benchmark analysis • Budget assistance • Performance measurement • Fiscal assessment process • Energy efficiencies • Presentation to elected officials/staff • Taxable value forecasts • Financial plan development

29. Q&AWebinar Evaluation • Type your questions into the text box on the right hand side of your screen • Complete and return a webinar evaluation that will be emailed along with this presentation shortly after the webinar • A link to the webinar archive on the SEMCOG website will be included in the email.

30. For additional information or assistance, contact: Dave Boerger, SEMCOG 248-875-7120 boerger@semcog.org www.semcog.org Buzz Brown, Munetrix 248-217-7979 buzz@munetrix.com www.munetrix.com