Agenda Packets - 1995/10/02 - Laserfiche WebLink

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SERVICE BUDGET MANAGEMENT MODEL GRANTS The Minnesota Legislature authorized Service Budget Management Model grants for local government units interested in developing models for innovative service budget management. The goal of a Service Budget Management Model is to identify a means of utilizing existing financial resources budgeted for the delivery of a specific service to fund an innovative service delivery system that will improve 3er'rice outcomes. An objective of a Service Budget Management Model is to involve the customers of a given service in the decision-making process. Therefore, a Service Budget Management Model will give recipients of public services -- including neighborhoods, community organizations, and individuals -- the power to make decisions about how public finds-for aspecificservioe will be spent Another objective of a Service Budget Management Model is to develop a delivery system that can be easily replicated by other local government units. Therefore, a Service Budget Management Model will include a work product describing the model in a format that facilitates replication. An example of an existing Service Budget Management Model will better define the concept: During the early 1980s, residents of Maple Grove expressed concern about the poor quality bus service it was receiving from the Metropolitan Transit Commission. As an "end-of-the-line" suburb, Maple Grove residents were forced to rely on bus transportation that involved lengthy commutes into Minneapolis. As a result of legislation adopted in response to these concerns, Maple Grove and other communities were given the opportunity to opt out of MTC services. By opting out of the system, the community received most of its local property tax levy designated for transit. It could then use those funds to design transit services to meet local needs. The city of Maple Grove opted out of the metropolitan transit system and developed transit services that were more responsive to the needs of Maple Grove residents. The city now uses a property tax levy that raises approximately $750,000 per year for customized transit services. This levy is considerably lower than the average metropolitan area levy for transit services. The vendor for the customized transit services, which is the Metropolitan Transit Commission, was selected by the city through a competitive bidding process. Under a three-year contract, the MTC provides and operates twelve buses clearly identified with the "Maple Grove Transit" logo. Residents of Maple Grove now receive non-stop bus service into downtown Minneapolis. As a result of the customized services, there has been a 400 percent increase in the use of bus transportation by Maple Grove residents. A Service Budget Management Model grant would be appropriate for one or more applicants who are at the planning stage of developing their project.