CSMFO Magazine January 2017

CSMFO C A L I F O R N I A

S O C I E T Y

O F

M U N I C I P A L

F I N A N C E

O F F I C E R S

M A G A Z I N E

JANUARY 2017 #11

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CSMFO

CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS

M A G A Z I N E JANUARY 2017 #11

NOW IS A GOOD TIME

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2016-17 Board of Directors President John Adams, City of Thousand Oaks President-Elect Drew Corbett, City of San Mateo Past President Jesse Takahashi, City of Campbell David Cain, City of Fountain Valley Jimmy Forbis, City of Gilroy Brent Mason, City of San Bernadino Marcus Pimentel, City of Santa Cruz Karan Reid, City of Concord Chu Thai, City of Monterey Park Executive Director Melissa Dixon, MBA, CAE Editorial Designer & Photographer David Blue Garrison Interim Editor Joan Michaels Aguilar, City of Dixon Additional Photography Pexels, Pixabay and Stocksnap The California Society of Municipal Finance Officers is the statewide organization serving all California municipal finance professionals. We promote excellence in financial management through innovation, continuing education and the professional development of our members. CSMFO members are deeply involved in the key issues facing local agencies. We value honesty and integrity, and adhere to the highest standards of ethical conduct.

Thank you to all the authors in this issue for sharing with us their time and expertise. If you have an idea for a future article, please contact Melissa Dixon at the CSMFO office at melissa.dixon@staff.csmfo.org.

For more information on CSMFO or this Magazine, please contact the CSMFO office at 916.231.2137 or visit the website at www.csmfo.org.

1 Source: PLANSPONSOR, Top 10 Recordkeepers, 2015 Core securities, when offered, are offered through GWFS Equities, Inc. and/or other broker-dealers.

GWFS Equities, Inc., Member FINRA/SIPC, is a wholly owned subsidiary of Great-West Life & Annuity Insurance Company. Empower Retirement refers to the products and services offered in the retirement markets by Great-West Life & Annuity Insurance Company (GWL&A), Corporate Headquarters: Greenwood Village, CO; Great-West Life & Annuity Insurance Company of New York, Home Office: NY, NY; and their subsidiaries and affiliates. The trademarks, logos, service marks and design elements used are owned by 4 GWL&A. Š2016 Great-West Life & Annuity Insurance Company. All rights reserved. PT257076 (2/2016) CSMFO MAGAZINE JANUARY 2017

CONTENTS JANUARY 2017 #11

FEATURES

Best Practices for Revenue Forecasting

P.

10

Fiscal First Aid: Four Questions To Pull You Out of Financial Distress P.

26

CalPERS December 2016 Discount Rate Changes: How Will it Affect Your Agency?

P.

13

State Propositions, Budget Bring Local Government Effects P.

30

Participatory Budgeting for Better Democracy P.

18

Telling the Financial “Story” – It Requires the Right Brain P.

22

Job Opportunities

P.

35

INSIDE CSMFO President John Adams Last Letter P.

6

Executive Director Letter P.

8

New Traditions In The Inland Empire P.

16

2017 Host Committee Running Diary P.

32

The views and opinions expressed in these articles are those of the authors and do not necessarily reflect the official policy or position of CSMFO.

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PRESIDENT’S LETTER JOHN ADAMS

As One Thing Ends, Another Begins Hopefully you have enjoyed the first year of the CSMFO Magazine. I know I have, even if I had to write articles every month. In preparing for my last President’s Message, I certainly have a lot to write about, but I am guessing I won’t have enough time or space to do it! So let me start with a joke, talk about an anniversary, and finish with a thank you.

JOKE I once heard a funny government finance joke, it goes something like this: “There are only two busy times a year in municipal finance, the first six months and the second 6 months.” So if you are like me, you just finished year-end reporting last month and are now starting the budget process for next fiscal year. To assist you in budget season, the CSMFO Magazine focuses this month’s articles on Improving the Budget Process. The articles in the magazine will hopefully give you insights on the trends to improve the process and best practices to ensure you develop a sound budget for your agency. What I appreciate about the budget process is every agency does something different, but each try to adapt to new trends in budgeting. Luckily for the January issue, we have some tremendous authors giving you their insights and thoughts that should help you in the coming months during one of your busiest times of the year.

ANNIVERSARY

THANK YOU And now for the thank you, or thank you’s! 2016 was a very memorable year for me professionally, being the President of CSMFO and representing you, the CSMFO Members, was a tremendous honor. This past year had many accomplishments, including the completion of the 3-Year Strategic Plan, the introduction of the Magazine, and the largest Annual Conference ever for CSMFO (& not to brag but the best ever!).

But none of the success this past year would ever be possible without the support of many individuals.

CSMFO Leadership: 1) the Board of Directors are comprised of amazing, dedicated professionals that serve the profession and membership with the highest level of integrity, 2) the Standing Committee Chairs and Members work tirelessly in implementing the Strategic Plan for the association, and 3) the Chapter Chairs & Vice Chairs that are the boots on the ground holding regular meetings for their local Members to network and learn from each other.

Members: Thank you to the Government Members who have a passion for public service and are dedicated to excellence in government finance and to the Commercial Members whose support and guidance for the association and its members is very much appreciated.

The City of Thousand Oaks: An organization who With the start of a new year, new milestones are reached. has allowed me to dedicate a tremendous amount of time to For me, January 9th was my 22nd Wedding Anniversary with CSMFO, and the staff has supported me by doing amazing my beautiful wife Lynne. It also happens to by my 11-year work for our community. anniversary with the City of Thousand Oaks, January 30th to Association Management (SMA & M&AMS): They be exact. Other significant anniversaries include: the 150th are the best in the business. Their passion and creativity makes Anniversary of the Alaska Purchase and the Centennial of them second to none. the U.S. Entry into World War I. But can you guess what Family & Friends: My family and friends, many of association is celebrating its diamond anniversary! You are whom are colleagues and members, thank you for the love correct, CSMFO is celebrating its 60th Anniversary. Hopefully and support. Of course my wife Lynne is amazing, and has the new logo on the cover of the magazine helped you in supported me throughout my career in government finance. To guessing the new milestone for CSMFO. I just happen to be the my kids, Johnny & Grant, I love you and you make me very 58th President of the California Society of Municipal Finance proud every day. To my parents, siblings, & Officers (@POTCSOMFO) with Drew Corbett becoming the 59th, and Margaret “There are only 2 busy times a extended family for all the advice, guidance, and love over the years. For friends and Moggia being the 60th. In looking at the year in municipal finance, the mentors, Paul, Bob, Ronnie, Drew, Gary, list of Past Presidents, it reminded me of first 6 months and the second Sam, Brian, Anil, David, Rich, Andy, Scott, the tremendous privilege to be President.

6 months.”

Anthony, Eric and so many more. Thanks for The list is very distinguished, starting the friendship. with Ray Wood, and lucky for me I know a majority of the Past Presidents, all of which have supported me over my 22 years in the profession. It amazes me that Bob Biery was President in 1984, and is still as active in CSMFO as he was when he was president. And from what I hear, there is a special surprise at the Annual Conference to celebrate the 60th Anniversary year for CSMFO. Can’t wait!

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Special Thanks: As I write my final message for the Magazine, I would be remiss not to mention David Garrison, whose idea it was to transform the “Mini-News” to the “Magazine”. With his vision and creativity, the first year has been amazing. He has put significant work into the project, and without him it would not have been possible. Thank You. So there it is, my final message including a joke, anniversaries, and thank yous! I am really looking forward to 2017, especially the President’s Messages from Drew Corbett.

I anticipate they will be insightful, funny, and on time! I wish everyone a happy and prosperous new year, and I’ll see you in February at the Annual Conference in Sacramento.

JOHN ADAMS FACT Favorite Highlight as President of CSMFO: The Passing Zone juggling axes over Thousand Oaks staffer, Gilbert Punsalan

U, O Y K N THA s! m a d A n h o J t n Preside SMFO -C

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EXECUTIVE DIRECTOR’S LETTER MELISSA DIXON

To CSMFO, on its 60th Anniversary!

I got my start in the association management profession in January 1998. I had registered with CalStaff, a temporary staffing agency, while working on my bachelor’s degree. My first assignment was as a part-time receptionist for the California Special Districts Association (CSDA). And I liked it so much that I never left.

When I started at CSDA, it was a relatively small organization. As it grew, I was afforded opportunities to work in every area of association management—meeting planning, membership, public policy, accounting, administration and governance…you name it, I did it. And when my thenboss, Catherine Smith, decided to open an association management company, I helped her. I was her first employee in 2006, and now I’m her business partner.

Catherine and I interviewed for CSMFO in the fall of 2008. I remembered sitting in a low-lit room at the Westin San Francisco during the CSMFO annual planning session with Viki Copeland, David Cain and Thomas Fil. I remember telling them how much I love working with volunteer boards…how combining together a group of like-minded individuals, coming together for the common purpose of making their profession better, making the lives of the members better, making service to the public better…this is a powerful thing.

I’m inspired every day by the dedication of CSMFO’s volunteers...

As CSMFO celebrates its 60th year in existence, I celebrate my 19th year in this profession and my 8th year with CSMFO. I still believe that volunteers are a powerful thing. I’m inspired every day by the dedication of CSMFO’s volunteers, and I’m honored to have spent nearly half my professional career using my knowledge and abilities to move forward this remarkable organization.

Here’s to 60 more.

MELISSA DIXON FACT Favorite Highlight of John’s year as President: Getting to Disney-fy the conference. The private event in Disneyland was a dream come true!

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The MUFG logo and name is a service mark of Mitsubishi UFJ Financial Group, Inc. and is used by MUFG Union Bank, N.A., with CSMFO permission.

MemberJANUARY FDIC. 2017 MAGAZINE

FEATURED STORY

Best Practices for Revenue Forecasting Written By Bobby Young

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Mr. Bobby Young, Principal, HDL Companies

ithout question, managing and maintaining an annual budget is a yearround task. With a new calendar year in full swing, it means a new budget season is just around the corner. If you haven’t already started, you will soon be creating a roadmap for the 20172018 fiscal year. Accurate revenue forecasting is an essential component of fiscal planning to ensure necessary resources are available for providing essential services to the community.

As many finance professionals have experienced, estimating general fund revenues can be the easiest and/or most challenging part of the annual endeavor. Most agencies across the state have seen steady growth since the Great Recession (editor’s note: June 2007 – December 2009). In some cases, this made forecasting very easy, allowing finance experts to feel like a master chef in the kitchen; sprinkle a 5% increase here and 3% growth there.

Although revenues are only one side of the ledger, it’s often where executives turn when making those final budget decisions, whether to include or exclude that last expenditure request.

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As the overall pace of the economy returns to pre-recession levels and enters a period of new all-time highs, it’s important to ask ourselves ‘what if’. A solid understanding of your agency’s tax base and key drivers of each major revenue source is critical for assessing various forecasting scenarios.

While Sales Tax and Property Tax receipts generally make up 60% -70% of a local agency’s General Fund, Transient Occupancy Tax (TOT) and Business License Tax also contribute and can be just as volatile when economic conditions shift.

Here are some things to consider when determining your next forecast.

Sales Tax Understanding your community’s economic base and demographics is essential to accurately estimating sales tax revenues. While global and national news can be helpful for contemplating macro trends, knowing your municipality’s specific taxpayer make-up is a more meaningful variable. For example: • Over the last two years, sales of new automobiles have reached an all-time high. However, if your agency doesn’t have any new car dealerships this news will be of little value to your projection.

• Although crude oil prices capture media attention, understanding seasonality and large refinery issues can be leading indicators of future gas prices and therefore tax proceeds from service stations.

• Consideration of how a shift in buying habits from traditional brick-and-mortar stores to online purchases can dramatically impact receipts from a regional shopping mall.

• Will increased variety and new dining concepts oversaturate the restaurant industry and potentially push consumers away?

• Is there a large construction/business expansion project being considered within your jurisdiction? Direct allocation of the local tax revenue may help offset planned infrastructure costs.

• Are properties in your agency newer and continuing to expand or is your community more mature and out of available land to develop?

• Does your jurisdiction have more residential or commercial/industrial properties?

• Have local realtors seen changes in sales activity and prices in the area, thereby possibly creating supplemental property tax revenue changes in the near term?

• Does your city/county have new exempt properties (i.e. educational, hospitals and non-profit holdings) that may be granted a full or partial property tax exemption?

Another resource that flows from sales tax collections is Public California’s Consumer Price Index (CPI) from October Safety (Prop 172) funding. This half-cent 2015 to October 2016 was determined to be portion of the sales tax rate is allocated Most agencies across the 2.619%. Therefore, assessors across the state much differently than typical point-ofstate have seen steady will be using the maximum allowed 2% inflation sale distributions made directly to local growth since the Great factor next year. Additional attention should agencies. The use of a statewide pool, and Recession... be given to Property Tax in-lieu of Vehicle the percentage each county comprises of License Fees (VLF). Revenues from this 2004 this pool, determines each allotment. swap, grow annually in proportion to your agency’s growth in Property Tax

California home values have been on the rise, albeit slowly since the Great Recession, and many agencies have experienced growth in excess of the annual Proposition 13 inflation factor. In this case, County Assessors’ have been legally recapturing values above the 2% cap on properties that were previously granted assessment appeals, and returning them back to their inflation adjusted Prop 13 values. As housing trends appear positive for the coming year, there are several considerations to hone your forecast.

assessed valuation.

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Transient Occupancy Tax (TOT) While other revenue sources are administered by state and county authorities, TOT is governed locally making data such as: total number of rooms available, tax remitted by operator and vacancy rates – a little easier to gather, track trends and project. Communication with the region’s Conference and Visitors Bureau (CVB) or similar agency, can provide greater exposure to recent travel news, possible expansions, and competition with hotels in surrounding areas that may impact outcomes.

Continued economic growth, improved foreign, domestic and business travel, and higher nightly room rates has boosted TOT receipts for many agencies. Even though the statewide average rate continues to hover around 10%, this past November, twelve (12) communities elected to increase their rate to generate additional resources. However, if you are not one of these agencies, here are some recent topics that may impact TOT cashflow.

• Is your community a tourist destination? The value of the U.S. dollar compared to other currencies has risen sharply which may negatively impact foreign travel.

• Is your community a seasonal destination? Changes in weather patterns can alter the timing of travel and total amount of tax revenue.

• Are short-term rental providers negatively impacting your community’s ability to collect TOT assessments?

• Lodging vacancy rates may not be telling the whole story.

Many hoteliers are choosing to raise the per night rate in-lieu of higher occupancy.

Business License Tax Most agencies established the business license to be both regulatory and revenue generating, thereby making it a tax. Since it is also locally administered, when combined with a good licensing program the data collection process is simplified. While proceeds from business licenses tend to be smaller, insight of the tax base can help anticipate possible changes. Some points to consider include: • Is the tax calculated on gross receipts, per employee, or some combination methodology?

• Identify the top taxpayers and track their changing market conditions (what industry are they in, foreign vs domestic, are they growing or downsizing).

• Many first think of property tax when businesses relocate to another jurisdiction, but business license assessments can be impacted as well.

Also, let’s not forget about taxation of Cannabis/Marijuana.

Thirty-seven (37) agencies adopted a separate excise tax related to cannabis/marijuana in conjunction with the passage of Proposition 64 – Legalization of Adult Use Marijuana. Be sure to learn when those taxes will take effect and begin contributing to the bottom line.

While proceeds from business licenses tend to be smaller, insight of the tax base can help anticipate possible changes.

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When economic conditions change, having the foresight to see through world news for what is important, means knowing what and where to look.

Understanding specific data relevant to your community will greatly assist when determining availability of resources for expenditures. Though the collection of data and tracking trends may seem overwhelming, consultants specializing in each area can provide a tremendous amount of support. In the end, accomplishing budget performance consistent with actual results is extremely rewarding and provides continued trust and confidence in the annual budget process.

Mr. Young has over 20 year of local government experience.

Currently he is advising clients, providing long range sales tax forecasts and ensuring revenue enhancements as a Principal with the HDL Companies. Prior to joining HDL, he served as Finance Director for the City of Costa Mesa. During the majority of his tenure, he led the City’s strategic financial planning and decision making through the Great Recession.

Mr. Young also has a background in external auditing of governments and non-profits as well as preparation and review of Comprehensive Annual Financial Reports (CAFRs) and annual municipal budgets through both Government Finance Officers Association (GFOA) and California Society of Municipal Finance Officers (CSMFO) award programs.

FEATURED STORY

CalPERS December 2016 Discount Rate Changes How Will it Affect Your Agency?

Written By Bianca Lin, Mary Beth Redding & John Bartel

I

n December, CalPERS made changes to their discount rate - changes that will significantly affect public agency contribution rates.

Before we discuss those changes let’s have a refresher: The discount rate is what actuaries use to discount future obligations. For example, if you owe 1 dollar a year from today and the actuary uses a 10% discount rate, the discounted (or present) value of that dollar today is 91 cents (1/1.10). If the actuary uses a 2% discount rate, the present value is 98 cents (1/1.02).

Bianca Lin, Mary Beth Redding & John Bartel, all of Bartel Associates, LLC

The discount rate is a function of the long-term expectation of three items: • Inflation - what the actuary believes it will be over the life of the plan.

• Real rate of return above inflation - based on the plan’s investment mix and capital market assumptions, which are determined by information the actuary gathers from investment advisers.

• Margin - simply what the actuary (or the Board) wants to build into the discount rate as a margin for adverse investment returns. At CalPERS the current (7.5% discount rate) has the following components:

Inflation and real rate of return above inflation are typically (although not always) determined on a 50% confidence level. This means over time the actuary expects half the returns will be higher than expected and half the returns will be lower than expected.

Inflation Real rate of return above inflation

2.75% 4.75

Margin for adverse returns

0.00

Total

7.50% continues....

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Based on what attorneys say, the CalPERS Board has complete authority to set actuarial assumptions - including the discount rate - and has done so based on advice from the actuarial department, investment department and outside investment advisers. CalPERS actuarial and investment staff is starting a study to recommend the discount rate for the June 30, 2017 valuation. In anticipation of what the study will yield, over the past few months CalPERS staff and outside advisers have been telling the Board to anticipate staff recommending a lower discount rate - probably 50 bps lower.

Consequently, CalPERS Board passed a discount rate change, which, for public agencies, will be effective as follows:

Valition

Discount Rate

Initial Impact

Full Impact

June 30, 2016

7.375%

2018/2019

2022/2023

June 30, 2017

7.25%

2019/2020

2023/2024

June 30, 2018

7.00%

2020/2021

2024/2025

Note: • The above rates reflect their ultimate increase, not the percentage increase, and represent how much higher rates are expected to be over those otherwise projected.

For example, if your Safety rates were projected to be 50% in 2024/2025, you can expect your rates will be an additional 13 percentage points higher (see next bullet).

• The rates shown also reflect the impact of CalPERS phasing them in over the next several years. An agency that does not phase in rates will have much higher rates in the next 4 years but lower longer-term rates: – Approximately 1 percentage point lower for Miscellaneous plans – Approximately 2 percentage points lower for Safety plans.

• Rates are a combination of all benefit tiers for Risk Pool agencies • Rates will generally be higher for:

CalPERS still needs to complete their capital market study, so the 2017 and 2018 valuation discount rates may change; for now, the above discount rate reductions are a change in the margin for adverse returns.

Here’s the big question everyone is asking: How will the above changes affect contribution rates?

Our firm has made preliminary estimates of the impact in moving to a 7% discount rate (UAL is Unfunded Actuarial Liability):

Miscellaneous Plans

Safety Plans

Normal Cost

2.0%

Normal Cost

3.5%

UAL Rate

5.5

UAL Rate

9.5

TOTAL

7.5%

TOTAL

13.0%

Standard Deviation

1%

Standard Deviation

2%

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– Classic Tier 1 enhanced formulas – Mature plans (those with a retiree to active ratio higher than 1.2).

• Rates will generally be lower for: – Classic Tier 1 non-enhanced formulas – Larger PEPRA and/or Classic Tier 2 non-enhanced populations – Less mature plans (those with a retiree to active ratio lower than 1).

These are very rough numbers and deviate from the CalPERS approach to providing rates for normal cost and dollar amounts for the UAL payment. We converted the UAL dollar payment into a contribution rate to allow for comparisons between agencies.

The sooner agencies get to the higher rates for budget purposes, the lower the long-term impact. Consequently, agencies may want to consider either asking CalPERS to move to the higher rates sooner or, since CalPERS will likely not be accommodating to that request, establishing a supplemental pension trust or rate stabilization fund in anticipation of the higher rates.

Budget Analyst Training Academy When: Apr 25, 2017 to Apr 28, 2017 – (Second time on the West Coast / First Time So. California) Program Description: The GFOA Budget Academy is an immersion training course that focuses on skills and techniques critical to public sector budget analyst. Using a combination of exercises, discussions, and lectures, the course will provide an overview of the budget development process, including best practices and techniques required in effective budgeting. This course covers essential elements of public sector budgeting such as goal setting, program development, revenue and expense analysis, position budgeting, capital budgeting, and more. Designed for budget analysts from both small and large organizations, this course will provide critical information for new analysts and allow veteran analysts an opportunity to hone their skills.

Where: Hyatt Regency Newport Beach, 1107 Jamboree Road Newport Beach, CA 92660 Speakers: Michael Gossman, Division Manager of Finance and Administration, Sonoma County Water Agency Scott Catlett, Finance Director / City Treasurer, City of Yorba Linda, CA David Cain, Director of Finance / Treasurer, City of Fountain Valley, CA Jay M. Goldstone, Managing Director, MUFG Americas

Who Will Benefit: This course is designed for new and intermediate analysts or others new to government looking to gain important budgeting skills and improve their understanding of the public-sector budget process and budgeting best practices. Also available are 30 CPE Credits.

Seminar Objectives: • Understand the public-sector budget process • Develop skills for basic forecasting and data analysis • Understand basic accounting principles and how they relate to the budget • Learn how to work with operating departments to develop goals and budget requests • Become familiar with position budgeting and salary projections for public sector organizations • Link capital and operating budgets • Understand how to budget for grant-funded programs • Gain an understanding of the basics of rate setting and internal service charges • Better understand specific operational issues facing local governments • Understand how to present budget information • Network with peers from other organizations Register now at the GFOA Training Website 15 CSMFO MAGAZINE JANUARY 2017

INSIDE CSMFO

New Traditions in the Inland Empire Written By Steve Heide & Carrie Corder

H

ere in the Inland Empire a new tradition started in 2016. For the first time ever, chapter members met in a very special holiday setting on December 8, 2016 at the historic Mission Inn and Spa in Riverside.

Steve Heide, Chino Valley Fire District & Carrie Corder, Cucamonga Valley Water District

The Mission Inn is no stranger to holiday celebrations – it is the host of the six-week Festival of Lights. Each year this event attracts more than 250,000 visitors to view a 4.5 million holiday light display. Animated figures, carolers, horse-drawn carriage rides, and gingerbread houses are all part of the festivities. This event was recently named the “Best Public Lights Display in the Nation” by USA Today.

Chapter members were also dazzled by Neil Kupchin’s inspiring presentation “Maximizing Effectiveness and Success in the New Year.” Neil shared his advice and motivated us to be outstanding leaders. Neil spoke to a sold-out crowd of 121 members and left members with the message “be the leader you were meant to be.”

The Inland Empire chapter of CSMFO is an active chapter and well attended by both municipal

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and commercial members. This year’s holiday meeting was generously sponsored by Willdan Financial Services, Client First Technology,Rogers, Anderson, Malody & Scott The Mission Inn is no (RAMS), and the PFM Group. stranger to holiday

celebrations – it is the host Municipal member Bartha of the six-week Festival of Brigitta from the City of Lights.

Moreno Valley said, “I really enjoyed the festive holiday atmosphere and delicious food at the historic Mission Inn and Spa. The presentation by Neil Kupchin was great and it was a fantastic opportunity to meet fellow Inland Empire members around this special time of the year.”

Commercial member Heidi Schoeppe from Albert A. Webb Associates added, “CSMFO chapter meetings are a great opportunity to mingle, share ideas and hear about important topics. The inaugural I.E. holiday meeting was a very festive event and a great way to close out the year among colleagues and friends. The bar has been set high for next year and we are looking forward to everything CSMFO has in store!”

Speaking of 2017, chapter leadership is already starting to plan for the second annual I.E. Chapter holiday meeting to be held in December. Please join us for another special and festive meeting, a chance to check out the Festival of Lights, and take a sneak peek at the host city and attractions for the 2018 CSMFO Annual Conference to be held at the Riverside Convention Center, which is adjacent to the Mission Inn Resort and Spa. Steve Heide serves as the Inland Empire Chapter Chair and Carrie Corder is the Vice-Chair.

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FEATURED STORY

Participatory Budgeting for Better Democracy

Written By Cristelle Blackford & Shari Davis

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Cristelle Blackford, Chief Engagement Officer, CivicMakers & Shari Davis, Director of Strategic Initiatives, Participatory Budgeting Project

ith trust in Congress and the federal government at an all-time low, how can the public servants of our nation rebuild trust from the ground up - starting at the local level? The answer could be found in an innovative practice that is sweeping cities across the world: Participatory Budgeting. This powerful democratic process, which empowers regular citizens to choose how real public dollars are spent, has been shown to have a multitude of benefits ranging from improved public health to increased civic participation.

Imagine you’re a blue-collar worker struggling to make ends meet. You pay your taxes and recognize fundamental government services like roads and police, but the budget process is a mystery to you, and ultimately you’re unsure how your hard-earned tax dollars are spent. As a result, you are generally dissatisfied with government and feel your voice is not heard. Unfortunately, this story is all too common. Too often public budgeting lacks transparency across the globe. As we saw in the

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2008 global market crash, opaque budgeting processes have decreased government accountability, increased corruption, and ultimately contributed to mistrust of government (Khagram et al, 2013).

Too often public budgeting It seems intuitive that lacks transparency across increased transparency the globe. leads to higher levels of accountability.There is growing proof that governments with more transparent finances have lower levels of corruption, more efficient use of resources, and better fiscal performance (Khagram et al, 2013), all of which promote trust in government. Thankfully, providing the public with easy access to budgets in a digestible format is easier now than ever with powerful, user-friendly digital tools like OpenGov. However, access to the budget is only the first step on the path to building public confidence in government and ensuring that public budgets accurately reflect community needs. Public involvement in the budgeting process educates residents about the complexities and tradeoffs of budgeting, which leads to more understanding and realistic expectations of government. In turn, policymakers that engage with their communities create more effective, efficient, and equitable budgets that more accurately reflect and respond to the actual needs and aspirations of their constituents (Tanaka, 2007).

Participatory budgeting, or “PB”, is a public involvement process that gives ordinary people direct control over a portion of a public budget. The process usually follows these steps:

Unlike other kinds of budget-related community engagement, public input collected through the PB process is not simply a suggestion to decision makers. PB allows community members to create their own budget proposals, work with public staff to refine the proposals to ensure they are viable, and ultimately choose which proposal will be funded and implemented.

PB started in Porto Alegre, Brazil in 1989, where the process has continued annually, with upwards of 50,000 people deciding how to allocate as much as 20% of the city budget (Wampler 2007). Porto Alegre is the birthplace of PB, but this practice has spread all over Latin America and the world.

Since its origins in Brazil, PB has been applied in over 3,000 cities across the globe. The first use of PB in the United States

was in 2009 when the people of Chicago’s 49th district were invited to choose how to spend $1 million of the district’s discretionary spending (Lerner, 2012). Today New York City is the largest example of PB in the United States, with 28 districts participating and over $32 million allocated directly by residents (Gilman). PB in California is a growing trend, with the cities of San Jose, Vallejo, Long Beach, Oakland, and San Francisco replicating the model. PB has also been used by many school districts and other public agencies. You can explore these projects on this interactive map: www. participatorybudgeting.org/pb-map/ Porto Alegre and other cities in Brazil have been studied most frequently and provide the greatest empirical evidence for the positive impacts of PB. In Porto Alegre, PB has been

continues....

19 CSMFO MAGAZINE JANUARY 2017

shown to improve public health and reduce infant mortality rates by shifting more public spending toward public welfare services (Wampler, 2007). In Belo Horizonte, Brazil, PB had measurable impacts on equity by successfully redirecting public resources to low-income neighborhoods (Goldfrank, 2006).

Other findings from Brazil indicate that PB has increased budgeting transparency and accountability (Ackerman 2004), spurred the creation of new civic organizations and increased civic participation (Abers 2000), and enhanced representation for the formerly disenfranchised (Nylen 2003). More recent research from New York has also demonstrated that PB engaged many people who do not usually participate in the political process (Kasdan, 2013).

your PB process, we recommend consulting community members - the local experts - to understand what the most effective engagement strategies are in their environment. Youth may prefer online engagement, while people in rural communities may require a different strategy.

As demonstrated, PB done right has the power to improve public health, engender more equitable public participation, strengthen civil society, and increase trust in government.

Nonetheless, PB is in its infancy and it is exciting to consider how much more can be achieved if more governments were to embrace this innovative democratic process. Of course, any innovation is not without its pitfalls, and there are certainly ways that PB can be made more inclusive, efficient, and effective. We encourage you to try PB, adapt the process to the needs of your community, measure the impacts, share your findings with others, and seek new ways to improve the process for the benefit of all. PB can be a source of two way learning that ultimately redefines how we practice democracy and builds a more efficient and responsive government.

More information about innovative leadership with PB can be found at www.participatorybudgeting.org/white-paper

If by now you’re considering PB, you might be wondering about the logistics. There is no denying this is a complex process that involves collecting, analyzing, and sharing large amounts of information (i.e., community-generated ideas, proposals and feedback). Anyone who has managed large, messy datasets collected on paper knows how challenging community engagement and data management can be. Luckily, today there are a plethora of digital tools that can be used to streamline the PB process, and even a growing number of tools that are specifically designed for PB. Digital community engagement tools that facilitate ideation, prioritization, and comment management are widely available today, but not all of them are a good fit for PB. Because the idea generation phase should include both face-to-face meetings and an online tool for idea sharing, we recommend choosing a tool that allows data collected online and in person to be easily aggregated and analyzed in a central repository. Neighborland and CoUrbanize serve this purpose and do it well, with a userfriendly experience. Deliberation platforms, such as Loomio and Common Ground for Action, can also facilitate this stage of the PB process.

There are also a growing number of tools designed specifically for PB. Tools that can be used for online PB voting include a free digital PB ballot (with SMS verification) from the Stanford Crowdsourced Democracy Team, and Democracy 2.1, a user-friendly tool first developed for New York City. So far the only two tools we’re aware of that can be used through all phases of the PB process, from ideation through voting, are Participare and Open North’s Citizen Budget App. To further explore digital solutions, consult the practitioners of the North American PB Network at www.participatorybudgeting.org/pbnetwork/ Although digital tools can help to increase participation rates, diverse and ongoing participation is best attained through a blend of in-person strategies complemented by digital tools.

PB should be an inclusive democratic process that is tailored based on the specific needs of each community. Before starting 20 CSMFO MAGAZINE JANUARY 2017

CivicMakers provides community engagement, service design and digital expertise to agencies and institutions to advance human-centered, collaborative problem-solving.

The Participatory Budgeting Project is a nonprofit organization that supports participatory budgeting efforts, primarily in the US and Canada.

CITED SOURCES: • Khagram, S. and A. Fung, P. Renzio, 2013. Open Budgets: The Political Economy of Transparency, Participation, and Accountability.

• Tanaka, Susan, 2007. Engaging the Public in National Budgeting: A Non-Governmental Perspective, OECD Journal on Budgeting, Volume 7 – No. 2 • Lerner, Josh, and Donata Secondo, 2012. By the People, For the People: Participatory Budgeting from the Bottom Up in North America. Journal of Public Deliberation, Volume 8, Issue 2.

• Wampler, B. 2007. Participatory Budgeting in Brazil: Contestation, Cooperation, and Accountability.

Pennsylvania: Pennsylvania University Press. Abers, R. 2000. Inventing Local Democracy. Boulder: Lynne Rienner.

• Goldfrank, B. 2006. “Lessons from Latin American Experience in Participatory Budgeting”, Presentation at the Latin American Studies Association Meeting, San Juan, Puerto Rico, March 2006.

• Ackerman, J. 2004. “Co-Governance for Accountability: Beyond ‘Exit’ and ‘Voice.’” World Development Vol. 32, No. 3, pp. 447–463.

• Nylen, W. 2003. Participatory Democracy versus Elitist Democracy: Lessons from Brazil. New York: Palgrave Macmillan.

• Kasdan, A. and L. Cattell, P. Convey, 2013, A People’s Budget: A Research and Evaluation Report on the Pilot Year of Participatory Budgeting in New York City.

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FEATURED STORY

Telling the Financial “Story” – It Requires the Right Brain

Written By David Cain

O

h wait! We accountants and finance professionals are for the most part, left brained by nature. We love the numbers, the data, and the spreadsheets. We believe the best way David Cain, City to achieve success in our agency is to of Fountain Valley crunch numbers, lay out the facts, and Director of Finance wait for the “rational” actors to flock / Treasurer to our point of view. So why don’t we create emotion in our budget or finance presentations? We humans live in a world that devours a good mystery, a great play, a film where evil and good fight it out, or watching someone Outwit, Outplay, & Outlast everyone else. . . .the real world played out in a dramatic 39 days. Too often we finance professionals put We believe the best way together boring to achieve success in our PowerPoint slides agency is to crunch numbers, with endless words lay out the facts, and wait and spreadsheets for the “rational” actors to with lots of data. flock to our point of view.

We wonder why everyone else is not as excited about these numbers as we are. But there is nothing for them to connect to and we fail in getting our message across.

22 CSMFO MAGAZINE JANUARY 2017

Storytelling isn’t just a frill – something we do when we are not in front of the elected officials. The good story can be and is a very powerful tool. Storytelling is an essential skill every finance professional should possess, learn, practice, and use.

Simple data – no matter how well we communicate it, lacks the kind of emotional context that helps make the information stick in the minds of our elected officials, staff or community members.

One of my passions away from work is teaching graduate students about public budgeting and labor relations. One of the core requirements of my classes is they must learn how to present in front the class in a creative, concise and clear manner. They must “tell the story behind the numbers.” My students are given two opportunities to present their financial topic in a way that gets the information across but at the same time in a creative way. Sometimes the students will say, give us some examples of what others have done and I tell them “No”.

You need to create the story that works for you. Over the last eight years I have seen many very creative presentations that get the information across and engage the students. When I move to the next class, I sometimes assume I have seen it all – there can’t be another creative approach to “Financial Health”. But, every class of students raises the bar in telling their financial story in another different and unique way, in 10 minutes or less. What I am left with at the end of each semester is the emotion, the passion I feel as I watch the impact story telling has had on the lives of my students. Budgeting and numbers have come alive for the students!

Story-writing, and story-telling is a significant right-brained pursuit, according to author Daniel Pink. We finance types don’t think that we have any right brained stuff in us.

Storytelling is similar to many other skillsets, in which they can be learned. You must be willing to invest time and effort in learning and developing this essential skill. So left-brained accountants should be able to learn to use the right side of our brains. How do you go about developing your story?

Several months ago I had the opportunity to attend a training seminar that was held for our Executive Management team where we were provided with some tools for helping all of us to have strong self-confidence while giving us some practical tools for developing our “story”, using the PIXAR formula. What comes to your mind when I say “Buzz Lightyear”? or Toy Story?

Or Buzz Lightyear fallen and broken on the stairway landing?

Or I give you the theme song title “You’ve Got a Friend in Me”? or I say the classic line in the story “To Infinity and Beyond”?

The point is that your memory is jogged by the just a few words and you recall the “story”. It brings out emotions, feelings and remembrances of where you were when you saw the movie or heard the theme song. So, several of our takeaway tools for developing our financial stories included what is called the Pixar storyline - Once upon a time:

(See how this PIXAR storyline played out in an ICMA coaching webinar entitled “Storytelling to Promote Positive Solutions” – the section presented by Joyce Munro from Raleigh, NC – October 29, 2014) We finance folks live in a world of data and facts and the more information we have, the less valuable it can become.

Storytelling does not replace our need for analytical thinking.

What needs to matter more is our ability to place this data in context and deliver it with emotional impact. As you develop your financial story keep in mind that stories should be memorable, meaningful, convey emotion, and finally inspire action. The hardest part of using stories effectively is making sure they are simple and reflect your core message. But most of all remember we left brained humans need to learn to use the right side of our brain more often. So as finance professional we need to learn to communicate the importance of the story behind our numbers and develop skills in the art of fashioning a compelling narrative.

continues....

Once upon a time there was ___.

Every day, ___. One day ___.

Because of that, ___. Because of that, ___.

Because of that, ___.

Until finally ___.

23 CSMFO MAGAZINE JANUARY 2017

As my students do each semester -- throw out the box or in some situations the “slides” and learn to be creative – The Right Brain. As you create your own financial story draw from current experiences and challenge your audience, ditch the status quo, and embrace change. Be flexible when it comes to adding data, analogies, current events and examples, even at the last minute so that you can give your audience the most up-to-moment information possible. This is another reason why PowerPoint slides can get in your way. No matter what your story line is make sure that you make it about your audience, not you and finally give them what they need and want. Now go out and create your 2017-18 budget story in a right-brained way, just remember the power of the words “once upon a time” and you’ll be on your way.

One final note, for those readers that have read through this entire article: The third and fifth paragraphs were both stories. Also, when you see me at the CSMFO conference in Sacramento starting February 8th, ask me about my superhero . . . . There is a story there too.

(For more information about PIXAR story rules go to www. pixartouchbook.com or watch Steve Jobs’ commencement address at Stanford – three stories in 14 mintues) David currently is filling the remaining term (Retired Barbara Boswell) as a CSMFO Board Member for Southern California.

David is Senior Advisor for the Membership Committee, member of the Site Selection committee & Host Committee for the 2017 Sacramento Conference, as well an advisor for the newly formed Communications Committee. David will formally join the new Communications Committee in 2017. In his spare time David enjoys giving back by teaching Pubic Budgeting at CSUN and CSULB.

24 CSMFO MAGAZINE JANUARY 2017

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CSMFO MAGAZINE JANUARY 2017

SPONSORED ARTICLE

Fiscal First Aid: Four Questions To Pull You Out of Financial Distress Written By Julia Erdkamp, MPA

I

Julia Erdkamp, MPA

t’s a list no municipality wants to be on. When Forbes released their list of the Top 5 Biggest Municipal Bankruptcies in U.S. History, three California jurisdictions found themselves front and center. The list left many to wonder: what’s so different about California? What’s the status of California cities and counties today?

If the recent election is an indicator, the issue of financial health remains a critical focus for many jurisdictions. A record number of local measures were introduced on the November 2016 ballot to increase or impose new taxes.

The challenges facing California’s cities are somewhat unique compared to other states. With many local governments facing mounting expenditures and soaring pension costs, the threat of a debt crisis seems to loom over many city halls like a dark cloud. Even for jurisdictions at relatively peak financial condition, “uncontrollable” costs, such as pensions, and high interest burdens must remain at the forefront of their long-range planning. Why? Because what appears to be minor structural imbalances in

26 CSMFO MAGAZINE JANUARY 2017

the current economic environment can quickly manifest into a financial crisis for a jurisdiction as the market inevitably shifts.

On the other side of the coin are financial pressures of a more universal and manageable nature – diminishing or lagging General Fund revenues. As the life’s blood for local government, these financial streams are the most critical to keep flowing. They are also the most vulnerable with financial indicators showing: housing market performance leveling off, increased energy and commodity costs, and lagging economic growth.

So, what are cities and counties to do as all roads lead to an economic turmoil? The Government Finance Officers Association (GFOA) provides a comprehensive, “12-Stage Financial Recovery Process” to help local governments recover from financial distress. Just as physical emergencies require immediate measures to stabilize the situation, fiscal emergencies require prompt action to keep an economic downturn from deteriorating further. The GFOA calls this “fiscal first aid,” and in that there are five primary treatments to apply to revenues for ailing jurisdictions.

Are we collecting all that we are entitled to from our current revenue streams?

Before making any changes to current taxes or fees, a local agency should first consider audit to determine whether or not they are properly collecting the taxes they are already entitled to. Audits are the keystone to accurate, healthy financial performance. Many of the tax sources tied to local revenues are based on the “honor system” of self-reporting to governing agencies (i.e. California Board of Equalization,

Franchise Tax Board). Underreported and misreported (to incorrect jurisdictions) tax liabilities are extremely common; this is especially the case with sales taxes, franchise fees, utility user taxes, and business license taxes. Having unbiased and independent reviews of these revenue streams not only ensures equitable treatment for all tax payers, it is the most efficient way to raise revenues without raising taxes.

How can we improve the procedures for billing and collection?

The benefit of audits is two-fold: they provide opportunities for immediate increases to revenue, and can be utilized as a tool to identify procedural inefficiencies or poor controls. If collections procedures are not consistent and fair, look for ways to standardize them. The GFOA suggests a number of ways to do so including public-private partnerships that allow vendors to assist with billing and collection efforts. This ranges widely from assisting with collection of delinquent taxes to complete turnkey solutions for administration of a particular revenue source. In the same way, vendors can also be a useful source when it comes to the automation of certain procedures online.

Are our current fees ensuring proper cost recovery for services?

Cost allocation studies are very common at the federal level.

They are required to determine the repayment requirements for various projects, and fees are updated annually based on use..

Local government would also benefit from such rigor related to fees. Ideally, there should be clear connections between program revenues and operating budgets. At the very least, fees should be reviewed to ensure: (1) fees are fairly allocated to beneficiaries of the services (i.e. user fees), (2) expenditures related to the service are appropriate, (3) they’re comparable to neighboring jurisdictions.

Is there a clear correlation between the tax (or assessment) and the benefit to the community?

The most successful tax or assessment measures are those with a clear nexus, where the public can see a direct connection between the tax being imposed and the benefit being realized. There is a perception of greater transparency for “benefit taxes.” Business improvement districts are a great example of this, where a jurisdiction may finance infrastructure improvements in a particular area through additional property tax fees imposed on businesses in that area. More recent trends in California have led way to soda and sugary beverage tax measures. The funds from these taxes are often used to fund school nutrition and public health programs.

Note: There is a fifth Primary Treatment recommended by GFOA that relates to passing delinquent tax liabilities on to a private investor. However, this technique does not apply since California does not allow for the selling of tax lien certificates.

Julia is a Client Service Manager for MuniServices where she is dedicated to helping local government maximize revenue.

Prior to joining MuniServices, Erdkamp worked for 14 years in the public sector including her work for the City of Sacramento, U.S. Department of Interior, U.S. Department of Homeland Security, and the County of Orange providing expertise in information technology, turnaround management, and financial/budget management. Erdkamp attended the University of Southern California (USC) for her undergraduate education and holds a Master of Public Administration magna cum laude from the USC Sol Price School of Public Policy. Julia is available via email or cell to discuss strategies for protecting and maximizing municipal revenues, julia.erdkamp@muniservices or (559)246-2901.

November 2016 Local Ballot Measures

By the Numbers Total: 650 local measures including 427 seeking approval for taxes or bonds Bonds: 221 non-school local revenue measures; twelve measures asking for a total of $7.266 billion in bonds.

Transactions and Use Taxes: 88 measures; 13 countywide measures for transportation improvements; 58 city and county majority vote general purpose tax proposals.

37 tax measures for cannabis and 3 for sugary beverages.

Hotel Taxes: 19 cities and 2 counties proposed increases to hotel occupancy taxes.

Source: http://californiacityfinance.com

No matter where a jurisdiction finds itself on the fiscal health spectrum, being proactive in asking these questions is vital to ensuring your city doesn’t find itself on any municipal bankruptcy lists. One message made clear by GFOA’s process is that no jurisdiction has to manage these fiscal challenges alone. Just as no one would expect an emergency room patient to operate on themselves, cities and counties benefit from leveraging public-private partnerships to provide the best antidotes for their fiscal health.

27 CSMFO MAGAZINE JANUARY 2017

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Katie Koster Managing Director 949 494-6110 katherine.a.koster@pjc.com

Dennis McGuire Managing Director 916 361-6520 dennis.j.mcguire@pjc.com

Russell Reyes Managing Director 310 297-6014 russell.c.reyes@pjc.com

Victor Ume-Ukeje Managing Director 415 616-1662 victor.e.ume-ukeje@pjc.com

Tony Rapista Vice President 310 297-6031 anthony.l.rapista@pjc.com California municipal finance banking offices are located in Los Angeles, Orange County, Sacramento and San Francisco 28 CSMFO MAGAZINE JANUARY 2017 Since 1895. Member SIPC and NYSE. Š 2016 Piper Jaffray & Co. 9/16 CM-16-0858

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FEATURED STORY

State Propositions, Budget Bring Local Government Effects Written By Michael Coleman

I

Michael Coleman

n November, voters in California approved the legalization of the cultivation, sale and use of marijuana, extended temporary top tier state personal income tax rates, increased the cigarette tax, and eased sentencing for felons convicted of non-violent crimes.

At the same time, the national election brings a congress and administration whose actions could have substantial financial impacts on state programs and the economy.

For cities and counties, perhaps the most affecting measure passed by voters in November is Proposition 64, the Adult Use of Marijuana Act (AUMA).

The measure legalizes the nonmedical use and cultivation of marijuana by persons 21 years of age, creates a state regulatory and licensing system for the nonmedical marijuana manufacturing and sales, and allows local governments to prohibit or regulate and license commercial nonmedical marijuana.

Each city and county needs to consider whether and how to regulate marijuana activity for health and safety. If this involves a permitting process, the agency should adopt a regulatory fee structure for cost recovery. The city/ county should also consider the local

30 CSMFO MAGAZINE JANUARY 2017

tax implications (e.g., existing business license taxes, etc.) and whether to seek local tax increases on marijuana through voter approval. You can learn more from AUMA information sessions offered by the League as well as various consultants.

State budget. Governor Jerry Brown’s 2017-18 budget proposal released January 10 steers a more cautious route from an already restrained administration. With the Department of Finance (DOF) reporting a softening in state revenue growth, the proposed budget seeks For cities and counties, to bridge an estimated perhaps the most affecting $1.6 billion shortfall at the end of the current year measure passed by voters in November is Proposition 64, (after depleting the $1.6 the Adult Use of Marijuana billion operating reserve) Act (AUMA). and future annual gaps of $1 to $2 billion. While state revenues continue to grow, they are growing more slowly than previously estimated and budgeted. Of interest to local governments, statewide taxable sales are estimated to grow by 4.2 percent in FY2017-18. Property tax revenues, which are not a state revenue but do affect state education funding, are estimated to grow 5.3 percent statewide.

To close the FY2017-18 deficit and rebuild the state’s operating reserve, the Governor proposes corrective actions including recalculating Proposition 98 formulas to reflect these revenue changes ($1.7 billion), redirecting unspent one time allocations for affordable housing ($400 million) and state building upgrades ($300 million), and constraining spending growth, including ending aspects of the Coordinated Care Initiative (CCI), a change that is estimated to cost counties $625 million in FY2017-18 in increased costs to fund In Home Supportive Services (IHSS).

Other important elements in the state budget for local governments include: • The Governor has included a transportation funding proposal consisting of 1. a new $65 “Road Improvement Charge” on every vehicle, 2. setting the gasoline excise tax and diesel excise taxes at their 2013-14 rates of 21.5-cents and 11‑cents respectively, eliminating the current annual fuel swap adjustments, while adjusting the rate annually for inflation,

• Since 2011 Vehicle License Fees now go entirely to counties for realigned programs and, under Proposition 30, cannot be redirected. However, cities and counties will both continue to receive Property Taxes in Lieu of VLF. These are constitutionally protected.

Stay tuned! There are many decisions yet to be made in the Capitol and elsewhere that will affect your budgets.

Editor’s Note: For those members attending the annual CSMFO Conference in Sacramento, Michael will be presenting The Coleman Report at a General Session on Friday February 10, 2017 from 8:30 – 9:30 a.m.

3. Using $500 million in Cap and Trade proceeds, 4. Enacting efficiency measures at Caltrans to save $100 million.

5. The Governor does not include the redirection of vehicle weight fees to transportation, a change that could cost the general fund $1 billion annually.

• Estimated city-by-city and county-by-county local Highway Users Tax Account (HUTA) allocations for FY2017-18 assuming current law and showing the possible positive effect on these funds of the Governor’s proposal are available at CaliforniaCityFinance.com.

• Funding for realigned programs remains intact including for the Enhancing Law Enforcement Activities Subaccount and its Growth Account which support COPS / SLESA. Cities and counties should budget the same amount (no change) in FY2017-18 from 2016-17 for front line law enforcement grants.

31 CSMFO MAGAZINE JANUARY 2017

INSIDE CSMFO

Special Conference Edition

2017 Host Committee Running Diary Written By Drew Corbett

As President-Elect and Host Committee Chair Drew Corbett works on preparations for the 2017 Annual Conference in Sacramento, he thought it would be fun to give the membership a glimpse into the process of putting the conference together. Each month, Drew will provide a running commentary on some of the work that goes into conference preparations.

November 20, 2016 – December 27, 2016: With planning for the conference down to the details phase, I wanted to start to focus these diaries on specific aspects of the conference to provide some additional information. This version of the running diary will focus on the keynote speakers we have selected for the conference to provide some insight on how we identified and determined our featured conference presenters.

The process to start identifying the keynote speakers actually began way back in March when I met with David Cain, who led this sub-committee for the Host Committee, as well as the Chair and Vice Chair of the Program Committee (Viki Copeland and Ronnie Campbell). We discussed coordination between the two committees on the selection of keynote speakers, as well as some of the key characteristics we wanted in our speakers.

Some of the things we all agreed on were that we wanted speakers that would entertain, energize, and motivate, all while covering material with relevance to our everyday jobs. With that general direction, we set off to find our speakers, and here’s who we came up with: Connie Podesta: While all of the keynote speeches are incredibly important to overall conference experience, the opening keynote really sets the tone for the conference. As such, selecting the right speaker is essential.

We started off the evaluation process by brainstorming amongst the Host Committee to identify potential speakers. Once we had a list together, David Cain, Joan Michaels Aguilar, and Pam Arends-King took on the task of reviewing videos of all of the identified speakers and culling that down to a list of five finalists. Ms. Podesta, who 32 CSMFO MAGAZINE JANUARY 2017

had come to us as a recommendation from a commercial member who had seen her at another conference, was on that short list. The entire Host Committee reviewed videos of the five finalists and cast their vote. Ms. Podesta was the clear favorite of the group, with her upbeat style and ability to connect with her audience setting her apart from the other finalists. Once we made the selection, David and I had the chance to speak with her by phone so she could get more details on CSMFO to be able to tailor her speech to us specifically. After our conversation, I was even more convinced that she was the right person to kick things off and get us energized and motivated for the rest of the conference.

Chris Thornberg: When David, Viki, Ronnie, and I discussed the key characteristics for what we were looking for in a keynote speaker, Chris Thornberg’s name came up pretty quickly.

A CSMFO favorite, Dr. Thornberg was the early bird session speaker at the 2016 conference, which was extremely well attended. The chance to bring him back in 2017 was a pretty easy decision, especially after looking at last year’s conference survey results, where his economic update was overwhelmingly popular. His ability to inform us on the latest trends on the California and U.S. economies and provide us with forecast information that we can use for our agencies’ financial plans is unsurpassed.

What really sets him apart, however, is the way in which he delivers the information. Most of us don’t usually equate being entertained with attending an economic update…unless we’ve attended one of Dr. Thornberg’s sessions. With a unique style that keeps the audience entertained and engaged, this will most certainly be a memorable keynote.

Alex Banayan: As noted previously, one of the key considerations when selecting keynote speakers for this year’s conference was to find people who would cover subjects with relevance to our day-to-day jobs. How that relevance to our work is demonstrated, however, can take many forms and does not necessarily have to be direct. This is where Alex Banayan comes in. Named to the Forbes 30 Under 30 list, Mr. Banayan is an associate at a venture capital firm based in San Francisco and the author of a highly anticipated business book set for release in near future. I don’t want to give too much away about his keynote here, but I will say that Mr. Banayan has a compelling story to tell about how some of the world’s most successful people launched their careers. The committee had reviewed a number of potential speakers before we came across Mr. Banayan, and there was unanimous agreement amongst the group to have him close the conference out when we heard him speak. His keynote will most definitely get us thinking about our own professional development and how we can ensure we are making the most of our opportunities, or perhaps creating some opportunities for ourselves. You are certainly not going to want to miss out on this final session, as it is sure to close out our conference on a high note.

I look forward to seeing you all in February!

33 CSMFO MAGAZINE JANUARY 2017

DON’T MISS THE

THURSDAY

EVENING EVENT Join CSMFO on Thursday night for a “Taste of Sacramento”! Local band, local produce and renowned local restaurants will come together for CSMFO’s version of Sacramento’s famous farm-tofork festivals. The “Taste of Sacramento” will be a walk-through event at the Hyatt from 6:00 p.m. – 9:00 p.m. Tickets required for entry, and don’t forget your drink ticket!

After you’ve tasted what Sacramento has to offer, join us at Cafeteria 15L from 8:30 p.m. – 11:00 p.m. for the CSMFO After Party. With a DJ, games and desserts (and a bar), this is the perfect place to unwind. Don’t forget to join us in the Ultra Lounge for karaoke! Wristband required for entry; drink tickets will be provided at the door.

February 6 - 10, 2017 Sacramento Convention Center & Hyatt Regency Hotel

34 CSMFO MAGAZINE JANUARY 2017

JOB OPPORTUNITIES CONTROLLER, LAGUNA WOODS VILLAGE, Roberts Consulting Group Inc Salary Range: Open DOQ Application Deadline: Open until filled.

Accounting Manager, Stockton Salary Range: $7,330.50 - $9,412.51 Monthly Application Deadline: 24-Feb-17 Purchasing Officer, City of Sunnyvale Salary Range: $119,739.00 - $140,870.00 Annually Application Deadline: FINANCE MANAGER, Rancho Mirage Salary Range: $90,729 ? $110,427/Annually Application Deadline: February 17, 2017, 5pm Accounting Services Supervisor, Rohnert Park Salary Range: $73,566 - $89,412 Application Deadline: February 16, 2017 by noon SENIOR ACCOUNTANT, City of Turlock Salary Range: $8,570.00 - $10,417.00 Application Deadline: 2/17/2017 Grant Writer, Rolling Hills Casino Salary Range: DOE Application Deadline: Opened until filled Procurement Services Manager, Sacramento Salary Range: $90,228-$118,396 Application Deadline: 02/21/17 11:59 p.m.

Assistant Finance Director, Seaside Salary Range: $103,463 - $125,763 Application Deadline: 12-Feb-07 Assistant Finance Director, City of South Pasadena Salary Range: $7,654 - $10,258 Application Deadline: 2/28/2017 Internal Auditor, City of Carlsbad Salary Range: $96,200 Application Deadline: 13-Feb-17 Financial Analyst, Palmdale Salary Range: $70,324.80 - $89,752.00 Annually Application Deadline: 2/2/17 at 12:00pm Accounting Manager, City of Emeryville Salary Range: $101,700 - $137,268 annually (3% COL 7/1/17) Application Deadline: Friday, February 17, 2017 Senior Accounting Technician, Rancho Mirage Salary Range: $4210 ? $5123/Monthly Application Deadline: 3-Feb-17

FEBRUARY

Director of Administrative Services, Regional Government Services Authority Salary Range: $97,469 to $140,182, effective July 2017 Application Deadline: First Application Review Date: February 17, 2017 Sr. Accounting & Financial Analyst, Union Sanitary District Salary Range: $104,381.68 - $137,000.86 Annually Application Deadline: 2/15/2017 Financial Analyst, Placer County Water Agency Salary Range: $5,939 - $7,581 monthly, DOQ, plus excellent benefits Application Deadline: Applications must be received on/before Friday, February 3, Director, Department of Revenue and Tax, County of Santa Clara Salary Range: $148,971 - $191,164 Application Deadline: Open until filled Finance Director, City of Napa, CA Salary Range: $137,093 - $165,645 yr Application Deadline: Sunday, February 12, 2017 Assistant Director of Finance, City of Boulder, Colorado Salary Range: Annual salary range: $97,822 to $149,136 DOQ Application Deadline: Application deadline: Monday, February 6, 2017 Accounting Assistant, San Bernardino County Transportation Salary Range: $39,952 - $59,929 per year plus benefits Application Deadline: 2/10/2017 Accountant I, West Basin Municipal Water District Salary Range: $55,122 - $68,903 Annually Application Deadline: 3-Feb-17 Finance Director, City of Fortuna Salary Range: $78,183 - $98,037 per year DOQ Application Deadline: 3-Feb-17 Administrative Services Manaager, Central Marin Sanitation Agency Salary Range: $13,147 - $15,981 per month Application Deadline: 6-Feb-17 Manager of Real Property, Mapping and Exemptions, City and County of San Francisco Salary Range: $131,612 to $167,986 DOQ Application Deadline: 7-Feb-17 Accounting/Financial Analyst, Upper San Gabriel Valley Municipal Water Salary Range: $66,234 to $87,126 Application Deadline:

Finance Director, City of Barstow Salary Range: $127,936 to $163,282 Application Deadline: 8-Feb-17 Financial Services Manager, Ben Franklin Transit Salary Range: $59,050 - $93,959 per year Application Deadline: Accounting Technician, County of Nevada, CA Salary Range: $42,889 - $52,353 annually Application Deadline: 2/3/2017 35 CSMFO MAGAZINE JANUARY 2017

tes: Associa ieving & e r bel Moo Smith ams for orking t d a A f f n a t h t Jo he s to w From t u to Presiden lication, and o b ity. ank-y ew pu it a real A big th ion for this n e k a m vis to help in our so hard

36 CSMFO MAGAZINE JANUARY 2017