According to control board executive director Philip Puccia’s recent memo to the board, issued in tandem with the city’s new budget, an aggressive reform approach has affected Springfield’s finances, administration, public safety and schools, summarized in the memo as follows:
- Health insurance plan design changes and the transfer of city employee and retiree health insurance to the Group Insurance Commission. This year, the increase in health insurance rates is only four percent, compared to the city’s historical annual 18 percent increase.
- Adoption of Chapter 32B Section 18 of the Massachusetts General Laws which makes Medicare the primary payer of retiree health insurance costs, saving $18.7 million for the city and retirees over a three year period (FY06 – FY08).
- Successful negotiation and implementation of all city and School Department labor contracts, most of which are long-term contracts, and all of which provide for improved departmental management and predictable, affordable wage increases.
- Implementation of MUNIS, an integrated financial management system, for the city and School Department. This system will improve accountability and transparency, streamline inefficient processes and eliminate the vast majority of (often redundant) manual processing for municipal processes.
- Collection of $25.8 million in overdue taxes, including fees and related interest charges.
- Transfer of Retirement System assets to the Commonwealth’s Pension Reserves Investment Management Board, a decision which increased retirement system earnings by $25 million in one year, compared to the city’s prior investment performance.
- Implementation of performance-based budgeting to increase the accountability and efficiency of service output.
Utilization of a comprehensive payroll system that has improved efficiency, reliability and has helped us to improve many other areas of municipal operation. - Increase in the size of the city’s Police Department and Fire Department through hiring, and by transferring dozens of sworn personnel from desk duty to street patrol and fire suppression duties.
- Significant investment in a system to track and manage repairs in the city’s infrastructure of parks, schools and other municipal buildings.
11 comments:
With the commercial airlines feeling the fuel crunch , I would agree with downgrading the airport mentioned on this blog. With gas now at about $3.15 a gallon I couldn't even imagine what pilots must be paying!!
This blog did jog an idea I'll throw out there>
How about leasing the terminal to the FAA for office space in lieu of paying back any money the city would have to pay back for downgrading the airport?
J.J.
An interesting read from MONEY magazine...
On the knife's edge of the downturn
Meet Wilkes-Barre, Pa. - a small city in the eye of the presidential campaign whose fragile recovery is threatened by broader problems in the economy.
By Tami Luhby, CNNMoney.com senior writer
Last Updated: April 9, 2008: 10:20 AM EDT
WILKES-BARRE, PA (CNNMoney.com) -- Not too long ago, there wasn't much reason for Bob Scocozzo to venture to downtown Wilkes-Barre, Pa. Retail shops and restaurants were scarce, the streets were dark and the area was usually deserted after 5 p.m.
One Friday night last month, however, the Wilkes-Barre native couldn't find a parking space near the downtown performing arts center, where he was taking his teenage daughter to a concert. The area was buzzing with people going to the movies, dining at local eateries or listening to a local teen band at the Barnes & Noble.
"It actually excited me," said Scocozzo, co-founder and chief executive of Scent-Sations, which produces Mia Bella Candles. "There was a lot of energy and it made me feel like when I was kid going downtown 40 years ago."
Wilkes-Barre, long a depressed city suffering from the exodus of the area's coal and textile industries, is undergoing a revitalization. It began with new street lights and then a 14-screen movie theater two years ago and has continued with the recent opening of a dance club and a Thai restaurant just off the central square. Where a McDonald's failed, an Italian eatery now fills its seats on weekends. Two multi-million dollar public works projects are bringing hundreds of jobs and injecting lots of money into the city's economy.
But the downturn in the national economy and troubles on Wall Street could slow or even stall this fragile rebirth. Wilkes-Barre is still a city on the edge, with higher unemployment levels and lower median incomes than the state. Many downtown storefronts remain empty and crime continues to be a problem.
Now the April 22 Pennsylvania primary, a pivotal vote that could determine the Democratic nominee, has made Wilkes-Barre a stop on the campaign trail and a stand-in for hundreds of other small cities across the nation. When the two Democratic candidates swung through the city last week, they garnered the loudest cheers when they spoke of jumpstarting the economy and bringing jobs to the area.
Most of those interviewed for this article said the northeastern Pennsylvania city has yet to feel the impact of the national slowdown, but they are bracing for it.
"We've held our own," said Anthony Liuzzo, professor of business and economics at Wilkes University. "Are we doing well? No. Are we doing as badly as the rest of the country? Absolutely not. We're kind of in the middle of things."
Down but not out
Wilkes-Barre's heyday was in the 1920s and 1930s, when the coal industry was thriving. When manufacturers left the area, textile companies moved in but were eventually lured by cheaper operations overseas. The city's fortunes declined after it was devastated in 1972 when Tropical Storm Agnes flooded the downtown. After that, Wilkes-Barre struggled with abandoned buildings, declining population and heavy debt levels until the recent revival.
This time around, the city has some things going for it to help it withstand the country's financial problems. Its main employers are a mix of colleges, hospitals and government agencies. While they don't provide as much tax revenue as corporations would, they do give the city a stable employment base.
Wilkes-Barre has also seen the rise of homegrown entrepreneurial firms that employ local residents, often at better wages than available elsewhere in town. For example, Scocozzo's Scent-Sations employs 80 people, nearly all locals, in a 30,000-square-foot factory at the edge of the city. Scocozzo, who co-founded the candle manufacturer in 2002, is confident the weakening economy will not prevent his $15 million company from expanding. He's looking for new digs - in Wilkes-Barre, ideally - so he can double his space and add up to 30 more workers in the next year or two.
E-commerce company Solid Cactus is also growing rapidly. At this point, co-founder Scott Sanfilippo thinks his 7-year-old firm will weather the economic storm. So far, Solid Cactus' sales haven't dropped and it isn't changing its projections for 2008.
In fact, the company is hiring. Only two years ago, the company had 65 workers. Now it's up to 150 staffers and expects to hit 250 by the end of next year, Sanfilippo said. Last week, it moved its headquarters from Wilkes-Barre to three miles outside of town. But it is keeping its customer service operations, which should have up to 125 people on the payroll by year's end, in the city.
The company's growth is supported in part by the state. As part of the budding tech sector in the region, the company qualifies for government grants and tax breaks, including a $1 million award from the governor.
"We get lots of government help because we're bringing higher-paying jobs to the area," he said.
Another factor in Wilkes-Barre's favor is it has largely avoided a spike in foreclosures plaguing other parts of the country. The area has attracted many people from New York City, New Jersey and Philadelphia, who are drawn by the cheaper housing, said Teri Ooms, executive director of the Joint Urban Studies Center, a think-tank focusing on northeastern Pennsylvania. Every morning, starting at 4:05 a.m., at least five buses take residents on a three-hour trip to their jobs more than 100 miles away in Manhattan. These residents in most cases bring home higher incomes they earn outside the area, pumping up the local economy.
The demand helped push up home prices in the Scranton-Wilkes-Barre metro area by 7.2% in 2007, the 18th largest increase nationwide, according to federal statistics. The average home price in the area was $190,800 at the end of 2007, up from $135,240 five years earlier. The number of people delinquent on their mortgage payments, meanwhile, dropped 0.1% between the fourth quarter of 2005 and the same period in 2007, though it was among the highest rates in the state at 4.1%, according to data from Equifax and Economy.com.
Signs of trouble ahead
But the cracks are appearing. Unemployment in the Scranton/Wilkes-Barre area is ticking up, hitting 5.7% in February, up from 4.6% a year ago, according to state data. Many storefronts in downtown Wilkes-Barre remain empty. Skyrocketing fuel and food costs have forced local residents to pull back on their spending.
"Restaurants are just not filling up the way they used to," Sanfilippo said. "Over the past couple of weeks, you now notice a quarter or half the restaurant is empty. Something is definitely happening."
The credit crisis plaguing Wall Street has also placed stress on the city's finances. With investors shying away from buying bonds, the interest rate municipalities have to pay has skyrocketed. Wilkes-Barre depends on debt to fund both its operating budget and projects such as a $25 million riverfront redevelopment project and a $22 million transportation facility that are already underway.
If borrowing becomes too costly, then it may have to scale back its ambitions or raise taxes, said Mayor Tom Leighton, who is hoping Wall Street returns to normal by year's end, when the city plans to restructure some of its debt.
"It's going to cripple us if we can't afford to borrow," he said. "The more it costs the city to borrow money, the less we can do."
First Published: April 9, 2008: 6:03 AM EDT
Find this article at:
http://money.cnn.com/2008/04/09/news/economy/wilkes-barre/index.htm?postversion=2008040910
Harry Tembenis
Worcester, MA
Letter to the Editor in today's T&G...
Monday, April 14, 2008
Bring Whole Foods to Grafton Street
Before CitySquare or any other downtown development breaks ground, in order to help make sure these projects are successful, you need to have a catalyst to continuously bring all the six-figure earners within a 30-mile radius into downtown.
Granted, the Hanover Theatre and the DCU Center bring people downtown, but only for certain dates and shows. How do you bring high-income earners into downtown on a continuing basis and help serve as a spark for downtown development? Simple, attract a Whole Foods market to the old Shaw’s location on Grafton Street.
The Massachusetts presence of Whole Foods basically consists of a cluster of stores in and around Boston, with Framingham being closest to Worcester, and one store in Hadley. There is basically a 90-mile gap between Framingham and Hadley. Don’t think that Whole Foods would succeed in Worcester? Drive around the West Side or Greendale areas on garbage days and see all the Whole Foods bags being used to recycle. Opportunity knocks, Worcester. It’s time to answer the door.
HARRY TEMBENIS
Worcester
just look at the parking lot of Living Earth Harrry..packed every day with exepnsive cars..
BTW..when is that art show again..did I miss?
nice write in to the T&G Harry...rare to hear anyone in this city talking about the need to bring in folks with money into the city:>)
You, me..maybe Bill...I am unsure of Jahn..we could have something happening here!
Is it me but is Bill Breault in the newspaper just to much..isn't it time for someone else to pick up this discussion? Seems he is everywhere but few following
hARRY, i am not too sure about a Whole Foods at that location, esp. at this time.............that area is a slowly evolving, former gritty industrial area that is slowly turning the corner ............new fire station.........empty, but still new Shaws..........new CVS (or Walgreens?)...but there are still remnants of old plastic shops, a concrete plant (Aggregate Indus??), freight/train terminal, factories, & old slaughter houses (i think)in the vicinity............................
additionally the lower Grafton St residential area just does not lend itself to the type of people who frequent health food stores.....and IMO would tend to be a large negative........if the likes Paulies Pajama People are nearby, we all know that people with money will not be anywhere nearby.......also Grafton St From I 290 all the way out to Masspike is a heavily traveled, usually conjested route all day......esp during commuter hours............I dont think we have the threshold population to support such a market..................let's hope I am wrong.....maybe it could be part of an expanded Canal District/Union Station district?
Now if you said Whole foods over at Park & Chanlder behind or beside the new drug store....that would really get my attention........b/c the west side of Park Ave crowd would be their target audience and they would be right in or at least near the correct 'hood.......again though not sure we've got threshold population to support it???........we'd have to keep PPP on the opposite of Park Ave though !!!!!!
It's too bad, but our demographics fit Price Rite Markets more than they do Whole Foods. Keep building that Low income housing.......and you'll see more Price Rite's....and more municipal red ink.
Paulie, you're correct. I would probably not be seen at Whole Foods. Stop & Shop is my gig.....or as I am told it's known on outer Lincoln St.....Stop & Shoplift
Nowhere (except in propaganda provided by the airport commission) does it say that Worcester would have to pay back anything if the airport is downgraded to GA.
Nowhere (except in propaganda provided by the airport commission) does it say that Worcester must maintain a part 139 certificate.
Nowhere (except in propaganda provided by the airport commission) does it say that ORH needs full-time crash crews.
Nowhere (except in propaganda provided by the airport commission) does it say that ORH requires full-time 'security'.
Nowhere (except in propaganda provided by the airport commission) does it say that ORH requires an $85,000 airport liason.
Nowhere (except in propaganda provided by the airport commission) does it say that ORH requires a full-time accountant.
Nowhere (except in propaganda provided by the airport commission) does it say that ORH requires a motor-pool supervisor (or an army of motor pool employees, or even a motor pool).
Nowhere (except in propaganda provided by the airport commission) does it say that ORH requires a building custodian supervisor ( or an army of building custodians, or even a building)
The only position REQUIRED by the FAA is a airport MANAGER. This does not need to pay six figures.
Jahn:
Think 290 access for a possible Whole Foods. Once the 'Mini Dig' on 290/146/Mass Pike is done, that market could potentially pull in Northern Rhode Island, Northern Connecticut, Western New Hampshire border towns w/Mass as well as the Golden Triangle of Northboro, Westboro, Southboro...granted Framingham is a straight shot down Route 9 but it is constant stop & go, bumper to bumper traffic. A Whole Foods in Worcester on Grafton Street would be a 10 minute ride on 290 for those folks...upwards of 30 minutes on Route9 even though they are a couple of towns out. What you are trying to do is create a destination TO Worcester for those folks. Living Earth, God Bless them...I have been a customer of theirs for 20+ years would still thrive as they have the West Side and nearby colleges to support them. This is all about attracting $$$ to the city. These people make it a habit of coming into Worcester enough they just might invest in the city.
My two organic, grass fed cents.
:-)
Harry Tembenis
Worcester, MA
PS
If , repeat IF CitySquare was to finally get built. Where would all those high end condo owners go grocery shopping? Catch my drift?
We should be thinking 5 years forward as given the 'recessionary' mood, the biggest and best fortunes are made now...not in 5 years...that's when the gamble will have paid off...
PS
PPS
Paulie: The art gallery thingie is this Saturday...
If City Sq is built......WITH CONDO's.......I tend to agree
But tell me, do Volvo-Heads & Prius-People drive 30 mins to go grocery shopping? Al Gore would be beside himself about this type of behavior by his followers???
If the city has 600 employees out on IOD......I am thinking what a great platform or a plank to run on for another Konnie Lukes type of councillor........
a. add in a proliferation of low income housing...........
b. add in a City on The Move Toward Bankruptcy........
c. add in 10 paid sick days per yr per 'ee.
d. add in crumblimg street & sidewalks.
and you may have a formula for developing a constituency that has a good chance of beating out the city labor constituency that now runs the council....
Didnt the manager in 2007 draw up a 5 yr city financial master plan/budget/guide?
Wonder how we're doing and how valid, real, & attainable the goals are?
Anyone suppose the 5 yr financial master plan will have to be City Square'd......... i.e. re-visited?
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