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JAY HEDGES
The Challenges of
Municipal Government

By JAY HEDGES, Director,
Department of Commerce & Community Affairs

Recently I discussed the diversification of local governments in Illinois. Many of these governmental entities are existent because of their special purposes. General purpose governments such as municipalities, counties and townships all have broader scopes of responsibilities, some similar to each other and yet, others are separately unique to a specific government.

Municipalities are encountering problems and challenges that even the most far-reaching imagination did not anticipate a few decades ago. The continuing population increase and industrial expansion requires massive expenditures for the sophistication and expansion of sewage treatment facilities. Concurrently, fresh water usage demands more testing, treatment, distribution and storage facilities. Millions of tons of garbage and waste must be safely disposed rather than dumped and forgotten. Our mobility and the transportation of consumer goods continually increases the stress upon the network of highways, streets, roads, public transportation, airports, and parking facilities.

Technological advancements, as they are developed and made applicable to the activities of local governments, cause obsolescence and therefore the expense of upgrading to the current state of the art. Citizens want and demand the best that a government can provide, however, public aversion to taxes and user charges tend to create an ever-present situation that defies a popular solution.

Through the electoral process, the public chooses its executive officers and they are charged with the responsibility to manage the municipality. The ultimate challenges are to provide the greatest amount of services possible at the highest attainable level of efficiency and, at the same time, exercise fiscal responsibility. Regardless of the size of the municipality, this is a most difficult task!

All of this may appear to be superficial. However, we know that there are specific procedures that can be implemented that have been tried and tested which can assist in meeting those challenges.

Have you projected (for the next five years or perhaps even ten years) those capital improvements you believe to be necessary or desirable? Have you considered project costs, financing alternatives, projected internal and external revenues and a schedule of priorities and completion dates?

Are your enterprise operations producing sufficient revenues to cover the expenses of debt service, required reserves, depreciation or replacement reserves, and a good maintenance and operating procedure? Are you subsidizing your enterprise operation from other general fund revenues?

Do you maintain good internal control? Does your budgeting procedure and your accounting system provide you with a current and accurate picture of your financial condition? Is it understandable to all of your officials and to the public?

Are you aware of the statutory provisions relative to finance such as the issuance of general obligation or revenue bonds, lease or purchase agreements, short term notes, special service areas, special improvement projects, tax anticipation warrants, and the accumulation and investment of funds?

All of the above questions reflect only a portion of those subjects that are considered in the normal course of municipal management. We know that variables exist in the problems that confront municipal officials and they must be considered in determining the most effective course of action to be taken.

The Illinois Department of Commerce and Com-

September 1989 / Illinois Municipal Review / Page 17


munity Affairs was formed through the merger of three separate state agencies on the premise that economic, community, and human development are interdependently related. At the same time, the Department should have the ability to direct separate attention to each of these developmental efforts.

The Department's Office of Local Government Management Services' objective is to provide technical, informational, and educational assistance to local governments. The staff is able to provide hands-on assistance to municipalities in conducting water rate studies and sewer rate studies. It can assist in the preparation of appropriations, budgets, and tax levies. We have also assisted in the development and implementation of accounting systems customized to meet the specific requirements of a particular municipality. Members of the staff frequently meet with municipal officials to discuss capital projects and inform them of financing alternatives.

Each year, over 3,000 telephone inquiries relative to local government procedures are received. Additionally, information is provided in the form of fact sheets and publications on subjects such as budget/appropriations, tax levy ordinances, annual treasurer's report, Truth In Taxation, freedom of information, open meetings, powers and duties, lease and purchase agreements, special service areas, special assessment projects, project financing, etc.

There are two other factors that affect municipal management. There is always the perennial turn-over of elected officials either because they choose not to run for re-election or they were defeated. As a result, new faces appear on the scene, many of which have no background or previous experience in the responsibility they are to undertake. The Illinois Municipal League conducts newly-elected official seminars to orient the new official to the duties and powers inherent to their office. Our staff members participate as presenters in these meetings and also participate in the League's Annual Conference. Each spring, the Office of Local Government Management Services organizes and conducts approximately 20 workshops throughout the State in rural communities on topics of interest to municipal officials. Last year, over 500 mayors, village presidents, council members, trustees, treasurers, and clerks attended these meetings. Staff members also participate in workshops and seminars conducted by organizations representing other divisions of local government.

In addition, the Office administers the Certified Cities Program — a self-help program through which municipalities of all sizes may better prepare themselves for economic development. It also administers the Governor's Home Town Awards Program which recognizes local governments for outstanding achievements through the utilization of volunteerism.

For further information, contact:

Illinois Department of Commerce and Community Affairs
Office of Local Government Management Services
620 East Adams Street — 5th Floor
Springfield, Illinois 62701

or call on our toll-free number 1-800-562-4688 (LOC-GOVT). •

Page 18 / Illinois Municipal Review / September 1989


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