The Charter Commission presented recommendations to the City Council and County Commission for a new consolidated Metro government structure for Memphis and Shelby County. Key recommendations included establishing an elected Mayor and Council, centralized departments, a strong ethics code, limitations on tax increases, and merging duplicative services. The Commission found that the current two separate governments impede cooperation and cost taxpayers more due to inefficiencies. The proposed new structure aims to improve services, economic growth, and quality of life through a more streamlined and collaborative government.

1. 1 MEMPHIS-SHELBY COUNTYMETROPOLITAN GOVERNMENTCHARTER COMMISSIONPRESENTATION TO THE CITY COUNCIL AND THE COUNTY COMMISSION ON THECONTENTS OF THE CHARTERJune 24, 2010

2. 2 “The citizens are concerned about the direction of their community and are demanding an ethical, efficient, effective, and streamlined government that prepares and positions Memphis and Shelby County to address current economic crises and the increasing competition for new jobs and economic expansion.” City and County Resolutions Creating the Metro Charter Commission (September 2009)

3. 3 Who We Are How We Operated What We Learned Commission Recommendations What’s NEW? Council and Commission Input

4. 4 Who We Are/Introductions: Members of the Commission Chair: Julie Ellis, Memphis, Attorney-Butler, Snow, O’Mara, Stevens & Cannada, PLLC Vice Chair: Andre Fowlkes, Memphis, Executive Director Small Business Chamber Secretary Treasurer: LouEtta Burkins, County (Unincorporated) Project Engineer-Global Trade Services, FedEx Damon Griffin, Memphis, Assistant District Attorney General J.W. Gibson, Memphis, County Commissioner Mayor Richard Hodges, Millington, Mayor of Millington Linda Kerley, Collierville, Former Mayor of Collierville Billy Orgel, Memphis, Business Owner, Tower Ventures Chris Patterson, Germantown, Attorney-Wiseman Bray, LLC Richard Smith, Memphis, Managing Director, Life Sciences, FedEx Express Jim Strickland, Memphis, City Council and Attorney-Kustoff & Strickland PLLC Carmen Sandoval, Memphis, St. Jude Children’s Research Hospital Rev. Randolph Meade Walker, Memphis, Visiting Professor, LeMoyne-Owen College, Pastor, Castalia Baptist Church Rufus Washington, County (Unincorporated) Retired US Marine, FedEx Ground and President of Southeast Shelby County Coalition Rev. Ralph White, Memphis, Pastor Bloomfield Full Gospel Baptist Church, Chairman Memphis Law Enforcement Review Board

6. Inclusion

7. Efficiency

8. Integrity

9. Innovation

11. Executive Committee and 12 Task Forces

14. 9 Established Benchmark Cities and used others to evaluate effective governments and their charter authority: Charlotte (functionally consolidated) Established our Commission Timeline

15. 10 Charter Commission Timeline

16. 11 What We Learned The two government structures impede cooperation and collaboration with one another to reduce duplication of government services. There is no structural incentive to innovating, sharing people or sharing knowledge between the City and County governments to improve services and lower costs to all citizens. There is a tremendous economic opportunity for our community to unite and operate more efficiently and inclusively, if framed utilizing the Commission recommendation for the Charter.

18. Shelby County lost 20,000 households and $1.2 billion in income to MSA counties

19. Memphis MSA has lost 2,530 households and $162 million in income to Nashville.

21. 14 Why Does Government Cost LessRight Down I-40? Our two governments spend $31 M a year for information technology - Nashville spends $14.5 M Our two governments spend $19 M a year for attorneys-Nashville spends $5M Our two governments spend $12M a year for human resources department - Nashville spends $4.2M Combined tax rate for Memphis and Shelby County is the highest in the state at $7.22 - Nashville’s is $4.13

22. 15 TAKE AWAYS We are competing with each other when we need to be competing with other communities for business. The demand by our citizens for “no excuses” public services already exceeds our capacity and citizens are “voting with their taillights”. The time expended by everyone to accommodate the “two government process” represents money wasted and opportunity lost. Time is something you never get back.

25. Voter approval for annexation by the urban service district is required.

27. Forbidden are gifts, solicitations, doing business with the government, family members doing business with government. It includes a nepotism policy and requires demonstrated integrity and professionalism.

28. The Ethics Commission is independent and oversees ethics in all Metro Government, including the constitutional officers and courts/clerks offices.

30. Retirement benefits of all current employees are fully protected with rights guaranteed by Tennessee law “not to be impaired or diminished”.

32. 21 The Legislative Branch The Metro Council: Government’s Legislative body Term limited to two 4-year terms. Council levies taxes, makes appropriations, funds public schools, approves appointments of Mayor, contracts over a set amount, and approves MLGW rates. Ineligible for office if delinquent in their metro taxes. A two-thirds vote of the Metro Council is needed to override Mayor’s veto and to increase taxes over 10 percent. The Judicial Branch General Sessions Court: Government’s Judicial Branch The authority of today’s city courts are elevated by merging their authority with that of the current General Sessions Court . All court clerks are required to use centralized metro IT and Purchasing. Subject to Inspector General review and audit and Strategic Planning process.

34. If neither candidate receives a majority, a runoff election is held. (The Commission is reviewing instant run-off voting which was approved by the citizens of Memphis.)

35. Any resignation from office is irrevocable once submitted.

37. Corrections: Elected Sheriff heads jails, court security, and warrants; adds the management of the corrections center to encourage efficiency and economy.

40. The Economic Development Department will take the lead in seeking out economic opportunities either directly or indirectly in the public and private sectors; strengthening economic, social, and environmental assets that are the keys to regional vitality and quality of life.

41. All public and contract agencies dealing with economic development coordinated in this office where they support a shared vision that is tied to the strategic plan

42. Laser-like focus on jobs! Plan of action will be aimed at business investment throughout metro area.

44. 27 Parks and Community Enhancement Department Countywide quality of life assets are the responsibility of the new department which will manage a network of countywide parks and recreation, Zoo, Pink Palace Museum, Botanic Gardens, and Brooks Museum of Art. Such community amenities, which form a network of quality of life assets county-wide, are essential to sustainability which calls for a balance of the economic, the environmental and the social issues. Office of Business Promotion Promotes, facilitates and expands business opportunities for small, women-owned and minority businesses doing business with metro government. Ensures streamlined access which is not artificially impeded by redundant registrations and certifications and institutes an outreach program to provide real opportunities for access and technical assistance.

46. Representative of all modes to ensure unified transportation and multi-modal policies and plans exist to maximize competitive opportunities for Shelby County. Metro Agencies of Government MATA, Port Commission, MLGW, Memphis International Airport

48. As required by the state law, there are three types of taxing districts: A “general” taxing district which is the equivalent of today’s countywide taxing district An “urban” taxing district which is today’s Memphis taxing district ”Special” taxing districts which may be established to accommodate specific urban-like needs of citizens in particular areas of the county. Parks, recreation, and zoo; economic and job development; health and welfare; roads and traffic; jails and courts are among the general services that are funded countywide. Urban services include fire and police protection.

49. 31 Three-year freeze on property tax rates. Property taxes are frozen for the first three years of the new government. Only public emergencies or a referendum by the citizens may alter this limitation. In freezing the tax rates, the new government must, from its beginning, identify and implement efficiencies such as reducing duplicative management and support services such as purchasing, finance, information technology. The Trustee collects all taxes and fees to streamline existing system. Debt and liabilities paid by authorizing body. Bond debt created by Memphis and Shelby County will be paid by the respective Urban and General Tax Districts.

51. 33 Department of Strategic Planning & Quality Produces the five-year strategic financial and management plan for all metro, annually measured for accomplishment, working with Department of Finance. Requirements include all metro government participation in strategic budgeting, long-range planning which guides new government initiatives and short range planning to assess efficient practices and risks. Prepares project revenue trends, costs of government trends, and assesses all areas for efficiency. Requires citizen, vendor and employee involvement and input aligning public employees and the partners of metro government in pursuit of one vision for government. Provides data on which to manage metro government. Provides citizens with assessments of their government.

52. 34 Inspector General Full-time program of evaluation and fraud prevention New department reviews all internal controls to prevent waste, mistakes and inefficiency Ensures accounting accuracy Monitors compliance of policies and investigates contracts, grants, and agreements to prevent preferential treatment, and illegal acts. The inspector general protects and supports a professional environment for all metro public officials

53. 35 Professionalism: Required professional credentials for department heads and executive staff. All department heads and executive staff are required to have professional qualifications and substantial experience May be hired by contract Specific professional qualifications are required for positions such as: Chief Administrative Officer, who directs daily operations; the Chief of Information Technology , to ensure the most innovative applications of technology are available to metro government to increase productivity and cut costs, and the Chief Financial Officer.

54. 36 Intergovernmental Relations Commission Will bring local governments together to work on common issues that affect the future of the metro area. Initial representatives are the metro-wide mayors, which could be expanded to include regional partnerships. The mission is to build relationships of mutual trust and collaboration to resolve area-wide challenges and develop innovative solutions which protect the unique nature of each local government.

56. May be extended initial terms to align with the election cycle, and if there is, subsequent terms will be four years.

57. Upon approval of the charter, a 15-member Transition Commission will be appointed by the Mayors of Memphis and Shelby County by December 2, 2010, to immediately assume the management of the transition to the new metro government.

58. The Transition budget must be approved by the City Council and County Commission to support the transition activities.

60. The charter commission is working with a demographer and we expect to finalize recommendations on districting in early July.

62. 41 County Commission and City Council Input