Economic Development Task Force

ECOMONIC DEVELOPMENT TASK FORCE Councilperson, Edward Poteat City Council President, Danielle Browne, Esq. SERVICE REVENUE SUB-COMMITTEE Meeting Minutes April 14, 2025 The key focus of this group was enhancing revenue through innovation and cost transparency. 1. Strategic Revenue Goals The discussion centered around three key strategies to strengthen the city's financial health: o Increase the number of transactions o Improve the efficiency of the collection system o Create new revenue streams, with a strong emphasis on this third point as the most impactful and sustainable path forward 2. Adopting a Cost Center Model o Proposed an approach inspired by long-standing business practices: establishing cost centers or program-specific accounting. o Example given: Calculate the full cost of a single process (e.g., picking an apple), including direct and indirect costs such as labor, maintenance, and overhead. o Apply this model to city services to determine the true cost per transaction, then assess whether current fees align with actual costs. 3. Comprehensive Revenue Inventory o First action step: Inventory all existing revenue programs. o For each, determine:  Current collection amounts  Date of last review or update  Comparisons with similar-sized jurisdictions (e.g., New Rochelle, County, NYC) to identify innovative or underutilized revenue opportunities 4. Internal Data Review in Progress o Staff are actively reviewing internal revenue policies and data. o Noted that while the city tracks revenue, it does not currently tie revenues to the actual cost of service delivery. (cont.) 5. Department-Level Analysis o Proposed approach:  Group departments (especially smaller ones) and analyze each one’s revenue streams and services provided  Identify services of value and explore comparable models in peer jurisdictions 1 ECOMONIC DEVELOPMENT TASK FORCE Councilperson, Edward Poteat City Council President, Danielle Browne, Esq. Compile findings into departmental packets  6. Engagement and Transparency o Department heads will be invited to review and provide feedback on draft packets during committee meetings. o Final recommendations will be presented to City Council with clear documentation of direct and indirect costs, allowing for informed decision-making around fee adjustments or subsidies. 7. Outcome Vision o Goal is to shift toward a business-minded, transparent model where the cost of each service is understood and used to guide strategic pricing and resource allocation decisions. 2