Being Investment-worthy: The Connection Between City Budgets and Business Investment
Business investment thrives in communities that function effectively
and are stable both politically and administratively. It used to be a
given that cities were financially solvent. Not only were they solvent,
they had the best credit ratings and were synonymous with long-term
stability.
This has all changed as unfunded liabilities have
ballooned, and economic development tools, such as redevelopment, have
come to an abrupt end. Cities are now struggling to stay in the black,
and program cut-backs and hiring freezes are the new normal.
Cities used to be the ones asking businesses to vouch for their credit
worthiness, but the tide has turned. Businesses are now rightfully
concernedabout the cities where they are investing their hard-earned
money.
Will services be maintained at acceptable levels without
interruption? Will staffing levels allow for timely responses to
questions and entitlements? Can I get my environmental review, building
plans and building occupancy issued on time? Does this community
cultivate and attract the high-skilled workforce I need?
Not only are these valid questions, they are also ones that businesses should be asking.
In Fremont, Calif., we are adding budget stability and business-like
performance measures to our list of “assets.” This stability has come at
a steep price. We think it’s important that businesses know that we’ve
walked a mile in their shoes in terms of process efficiencies and
staffing/service delivery changes.
We have eliminated a decade-old structural deficit, reduced our ongoing operational costs,
accelerated paying down future liabilities and enhanced our service
offerings. And we are investing in modern technologies. Additionally,
fiscal stability has allowed the City to continue to support its
business community by focusing on new initiatives and garnering national
successes. These include the addition of a Small Business Ally position
to assist small businesses get up and running; working with key
developers on two major economic development initiatives that are going
to make a difference not only in the City, but also in the region – the
Downtown Plan and Warm Springs development; and finally being ranked the second safest City in the nation
making Fremont a perfect place to invest and live. All of this makes us
more attentive and sensitive to business needs, and creates a climate
where the success of the City and our businesses are connected!