City of Saco, Maine’s Experience with Citizen Centric Reporting

By: Lisa Parker, CPA

Lisa Parker, CPA, a member of AGA’s Maine Chapter, is a project manager with the Governmental Accounting Standards Board (GASB). Until recently she was the finance director for the City of Saco, Maine.

The City of Saco, Maine issued its first performance report, Delivery of City Services—Fiscal Year 2004, in January of 2005. This 94-page report measured the performance of all 11 city departments and omitted only the performance of the school department, which is governed by a separately elected Board of Education. Due to the size of the report, the performance information provided was not being fully utilized by a wide range of citizens in Saco to assess governmental accountability and to enhance their ability to make economic, social and political decisions. The performance information was, however, being used by department heads in the management of their departments in order to improve internal performance, and during budget deliberations with the city council to justify their requests for additional funding to enhance existing service levels. As a result, the city recognized that an additional communication mechanism would be needed to more effectively communicate performance information to its citizens and other potential users.

To accompany the city’s second annual performance report, Delivery of City Services—Fiscal Year 2005, the city also prepared a shorter handout version of the report that included the executive summary, one measure from each of the 11 departments, and the website address where the entire report could be reviewed. These handouts were distributed locally at city hall, the public library and major grocery stores. The city simultaneously began issuing a digital monthly newsletter, which highlighted the performance measurement information of one city department each month. However, the citizen satisfaction survey results were still not reflecting higher levels of satisfaction for the effective communication of governmental accountability.

In December of 2006, with the release of the city’s third annual performance report, Delivery of City Services—Fiscal Year 2006, the City of Saco, Maine, supplemented that report by becoming the first in the country to issue a Citizen-Centric Report following AGA’s recommended model. The four-page report was published in the local newspaper and a press conference was held to alert all media sources of this important release. Mayor Mark Johnston so eloquently stated, “We know that governments have a reputation for being good at collecting taxes but not necessarily as good at being accountable for how those tax dollars are spent. Saco wants to change that. This report has both the good and the bad. And while I’m glad to say there’s more ‘good’ to report in Saco these days, this report is chock full of challenges coming down the pike. We’re hoping to inform a thoughtful debate on these issues.”

The concise, four-page document is intended to engage citizens and spark their interest to learn more about city services delivered, policies established and how well the organization is achieving its goals and objectives. Charts and graphs aid in making the information visually aesthetic and easier to understand for those who do not care for the monotony of pages filled with text. Each page of Saco’s report covers specific information and has a reference to the city’s website where the entire volume of the comprehensive annual financial report, the distinguished budget document and the annual performance report can be reviewed for more detailed information. The Citizen-Centric Report will provide for comparability from one year to the next or with similar organizations if prepared consistently with the same type of information on each page. The contents of each page within the City of Saco report are as follows:
➢ Page 1: Strategic objectives and demographics
➢ Page 2: Notable accomplishments
➢ Page 3: Revenues and expenses for city operations
➢ Page 4: Challenges moving forward/future issues

This same format was used again with the dissemination of the city’s second Citizen-Centric Report in 2007. For complete copies of the city’s four AGA award-winning performance reports (Certificates of Excellence in Service Efforts and Accomplishments Reporting) and the two released Citizen-Centric Reports, please visit the city’s website at www.sacomaine.org. The three completed citizen satisfaction surveys can also be reviewed at this website, displaying an increase in citizen satisfaction with the city’s communication efforts between the second and the third surveys. Due to the fact that the second survey was conducted prior to the release of the 2006 Citizen Centric Report and the third survey was conducted after its release, the city has concluded that the increase in satisfaction can be attributable to this effort.

What types of citizen centric communication documents do your governments currently use to disseminate financial, budget and performance information? Do they engage citizens in assessing government accountability and in making economic, social and political decisions?

TOMORROW: Mike Kristek, CGFM, recently retired from the U.S. Department of Energy, on "Are the IGs and Other Federal Auditors Doing Enough to Improve Government Accountability?"

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Comments

[James Harrington]

Congratulations on your accomplishments at the City of Saco. During my summer internship, I served as a finance/administration intern for a small suburban community in the St. Louis area. The city had several performance-based measures for each department in the Comprehensive Annual Financial Report. Like your city, the city has started an 8 page budget summary about all the major city funds by department. It allows the residents to see where the revenues come from and where it goes. For example, the gaming tax contributes nearly 31% of the revenue, while sales tax only contributed 17%. This is an interesting statistic to most residents. Also, the report shows that the city spends a significant amount of money on capital improvements (46%) and police protection (21%). This basic information provides an average citizen with a better understanding on their local government.

We found out that many residents do not understand much about city finances, especially property taxes in the area. I informally asked several residents from the community if they pay property taxes to the city, and most of the residents strongly believed they did. However, the city does not levy any property tax in the community. So this 8 page budget summary becomes an important education tool for the residents of the city. The city will mail the newsletter to all the residents. Also, they will have copies in city hall. I never thought about putting handouts in grocery stores. I think that is a great idea, because people can educate themselves about the city finances while waiting in line at the grocery store. I will have to pass that suggestion to the assistant to the city administrator.

I think it is important to have simple charts about the city finances in the handout. Also, I think it is important to provide a simple explanation about the current state of the city finances. I feel these citizen-centric reports provide valuable information for citizens without having them to attend a city council meeting.

I feel these citizen-centric reports promote transparency in local government, which will foster trust and democracy. However, in my particular city, I did not notice any more participation from citizens during city council meetings. City council meetings would always include the regulars. So I do not think these reports will magically start some revolution to get citizens deeply involved in their local government. But I think it is a great way to engage citizens about city issues. The more they understand, the more they will become active. They might contact their councilmember or attend a city council meeting after reading these budget reports. Even better, they might want to become a leader in the community and run for a council position. I feel transparency and trust are crucial for all levels of governments. I feel the local government is the most accessible form of government. We all interact with local government every day.

Overall, I feel these reports are important in engaging and educating citizens in the city. Plus, it is a great way to brag about your city’s accomplishments or discuss the significant challenges facing the community. I have asked a few residents about own citizen centric reports, and they love to read them, because they learn something new. All community should have this practice to promote: (1) transparency, (2) trust, and (3) democracy. It should not be surprising to know that more people trust local government than federal government. I think these types of reports promote that trust.

[Ann]

Congratulations that's a great accomplishment! Our agency is working toward this and we know it is difficult to achieve.