Every 5 months, a Commissioner gets to write an article in the Mt. Lebanon Magazine. The October edition is my turn and my article is titled “20/20”. This must have been read by residents last weekend as I have received a lot of positive feedback via email and phone. I am posting the entire article in this blog entry as it provides a baseline for some follow-up items that I plan to write about:

(i) Generating efficiency ideas from within the Municipality
(ii) Best practices approach for increasing efficiency
(iii) Revenue-increasing ideas from within the Municipality & various organizations in Mt. Lebanon
(iv) Strategic blueprints for increasing revenue

As always, I look forward to hearing your comments. Thanks.

Raja

20-20

You are all familiar with the saying “Hindsight can be 20-20”. Let me provide a little background prior to offering how “Foresight can also be 20-20”.

Mt. Lebanon is a wonderful community with many strengths. We have an impressive public safety record, great schools, tree lined streets, historic homes, distinctive business districts and, exceptional residents. But Mt. Lebanon, like so many communities in Southwestern Pennsylvania, isn’t growing. This flat lined trend along with increased municipal taxes (24.6% increase since 2002) and increased debt (63.8% increase since 2002) creates a potential negative trend that threatens our current quality of life.

I believe Mt. Lebanon can reverse this trend now. With a focus towards generating increased revenue, greater fiscal control and lower taxes we can provide a foundation for strong economic growth and a real chance for our children and grandchildren to continue to enjoy the Mt. Lebanon of today.

A June 2008 study “A Strategic Competitive Analysis of Residential Real Estate in Mt. Lebanon”, by Dougherty & Easton, Graduate School of Public & International Affairs, University of Pittsburgh states “Panelists identified perceived high taxes as a major issue for Mount Lebanon (“the big one”) that impacts the decision of single buyers, families and empty nesters alike.”

Lower taxes have proven to spur economic development and higher home prices; the bottom line is that the net income becomes greater in the long run. The 20-20 foresight approach suggests a 20% tax cut with a corresponding 20% change in net income which comes from both increased revenue and reduced expenses.

Mt. Lebanon is blessed with unique business districts. I have enjoyed the opportunity to spearhead our business districts’ strategic plan created by Mt. Lebanon’s Economic Development Council Task Force (available online at mtlebanon.org). By bringing in new businesses and expanding the office space and residential space footprint in our business districts, we can generate significant tax revenue.

Let me offer a couple of ideas on ways to function more efficiently and reduce expenses:

1. Conduct a Municipal Best Practices and Service Levels review by an outside consulting firm: I do not believe that we have undertaken a comprehensive private sector “process re-engineering / optimization” study to identify ways the municipality might be more efficient and productive. However, there is no point in spending any $ with a consulting firm unless the mandate is to target a certain percent of cost savings and the recommendations are followed-through and implemented.

2. Seek new approaches through internal recommendations: The best ideas are most often generated from within the walls of local government. I am suggesting that we not only ask for input, but also reward employees with bonuses for creatively generating savings in providing municipal service without negatively impacting quality.

I know it is neither easy nor popular to cut costs, but we must look for ways to function more efficiently and to optimize the use of technology and improved processes for delivering municipal services. I believe that the right solution for Mt. Lebanon in the long term is to reduce taxes with a focus on increasing revenue and prudent fiscal discipline.

If you subscribe to this philosophy, please contact your Commissioner and let them know to support the 20-20 approach as we finalize the budget for 2009. I would love to hear your opinions; please email me at raja@mtlebanon.org or call 412-341-7252.

Join me in continuing to have Mt. Lebanon be a great place for existing residents and new residents by lowering our taxes, and doing it in a manner that does not impact service or debt. Who needs hindsight when we have foresight!!