Lancaster, Pennsylvania

LANCASTER, PENNSYLVANIA
FINANCIAL ANALYSIS AND OPERATIONS

REVIEW
PROJECT REPORT
September 2007
September 28, 2007
Mayor Richard Gray

City of Lancaster
120 N. Duke Street
Lancaster, PA 17608-1599
Dear Mayor Gray:
During the past several months, Management Partners has worked with your executive team
to conduct a systematic review of City operations. The City is in both an exciting and
challenging time. There is significant development occurring in the community, and new
investment will continue to improve the economic environment.
At the same time, the City’s physical and administrative infrastructure is suffering from years
of neglect and underinvestment – and now, during a time of fiscal constraint, the City must
invest in maintaining and improving its physical and technological assets.
The project report identifies recommendations for improvement for each of the City’s
Departments and Bureaus. Implementation of the recommendations will significantly
improve the City’s financial position and improve operations.
It’s been a pleasure to work with your staff. We especially appreciate the assistance of your
Chief of Staff and Business Administrator, who have been very responsive to our many
requests for information.
Sincerely,
Gerald E. Newfarmer
President and CEO
1730 Madison Road www.managementpartners.com 513 861 5400

Cincinnati, OH 45206 Fax 861 3480
City of Lancaster
Financial Analysis and Operations Review
TABLE OF CONTENTS
OVERVIEW ............................................................................................... 9
EXECUTIVE SUMMARY ......................................................................... 11
CITY FINANCES ...................................................................................................... 12

CITY SUPPORT SERVICES, FACILITIES & EQUIPMENT ............................................... 12
PUBLIC SAFETY ..................................................................................................... 12
THE BOTTOM LINE ................................................................................................. 13
METHODOLOGY .................................................................................... 15
BENCHMARK SURVEY............................................................................................. 16

FOCUS GROUP SUMMARY ...................................................................................... 16
OVERALL ............................................................................................................... 17
FINANCIAL ANALYSIS .......................................................................... 19
FINANCIAL FORECAST METHODOLOGY.................................................................... 20

REVENUE ANALYSIS ............................................................................................... 20
EXPENSE ANALYSIS ............................................................................................... 32
COUNTERMEASURES .............................................................................................. 36
CONCLUSION ......................................................................................................... 43
CITY OF LANCASTER ECONOMIC DEVELOPMENT STRATEGY AND

PLAN ....................................................................................................... 45
ECONOMIC DEVELOPMENT TOOLS AND INCENTIVES ................................................. 47

ECONOMIC DEVELOPMENT OPPORTUNITY AREAS .................................................... 49
ADMINISTRATIVE SERVICES ............................................................... 51
PUBLIC WORKS..................................................................................... 81
OVERVIEW ............................................................................................................. 81

GOALS AND METHODOLOGY ................................................................................... 86
ANALYSIS AND RECOMMENDATIONS ....................................................................... 87
City of Lancaster
DEPARTMENT OF ECONOMIC DEVELOPMENT AND

NEIGHBORHOOD REVITALIZATION .................................................. 116
OVERVIEW ........................................................................................................... 116

BUDGET AND STAFFING ........................................................................................ 117
ANALYSIS AND RECOMMENDATIONS ..................................................................... 122
NEIGHBORHOOD REVITALIZATION DIVISION ........................................................... 136
RESOURCE DEVELOPMENT DIVISION ..................................................................... 137
POLICE BUREAU ................................................................................. 141
OVERVIEW ........................................................................................................... 141

DETENTION STAFFING .......................................................................................... 160
QUARTERMASTER ................................................................................................ 160
CRIMINAL INVESTIGATIONS DIVISION ..................................................................... 160
PERFORMANCE MEASUREMENT ............................................................................ 161
SAVINGS/COST IMPLICATIONS SUMMARY .............................................................. 162
FIRE BUREAU ...................................................................................... 163
OVERVIEW ........................................................................................................... 163

PERFORMANCE MEASUREMENT ............................................................................ 176
CONCLUSION....................................................................................... 177
ATTACHMENT A – LIST OF RECOMMENDATIONS .......................... 179
ATTACHMENT B – BENCHMARK COMPARISONS .......................... 190
ATTACHMENT C – ESTIMATED FINANCIAL IMPACT OF

RECOMMENDATIONS ......................................................................... 200
ATTACHMENT D – MAP OF MAJOR ECONOMIC DEVELOPMENT

PROJECTS ........................................................................................... 201
ATTACHMENT E – SUGGESTED PERFORMANCE MEASURES

ADMINISTRATIVE SERVICES ............................................................. 203
ATTACHMENT F – TRASH BILLING PROCESS ................................ 211
ATTACHMENT G – PROCUREMENT PROCESS ............................... 212
ATTACHMENT H – HIRING PROCESS ............................................... 213

City of Lancaster
ATTACHMENT I – PUBLIC WORKS PERFORMANCE MEASURES . 215
ATTACHMENT J – STATUS OF ECON DEV RECOMMENDATIONS

(25) AS OF FEBRUARY 2007 .............................................................. 221
ATTACHMENT K - STATUS OF NEIGHBORHOOD IMPROVEMENT

AND REVITALIZATION RECOMMENDATIONS (17) AS OF FEB 2007
............................................................................................................... 223
ATTACHMENT L – ECONOMIC DEVELOPMENT AND

NEIGHBORHOOD REVITALIZATION SAMPLE PERFORMANCE
MEASURES .......................................................................................... 227
ATTACHMENT M – POLICE BUREAU PERFORMANCE MEASURES

............................................................................................................... 232
ATTACHMENT N – FIRE BUREAU PERFORMANCE MEASURES ... 244
TABLES
Table 1: General Fund Financial Projection 2007 - 2012 .......................... 19
Table 2: General Fund Revenue Summary – 2007 Adopted Budget ........ 21
Table 3: Projected Lancaster City Real Estate Tax Revenue.................... 22
Table 4: Projected Lancaster City Real Estate Tax Revenue – Capped
Rate ............................................................................................................ 22
Table 5: Projected Earned Income Tax General Fund Revenue At 0.6%
Rate ............................................................................................................ 23
Table 6: Projected Local Services Tax General Fund Revenue At $52 Rate
.................................................................................................................... 24
Table 7: Projected RETT General Fund Revenue At 1% Rate................... 24
Table 8: Projected Police Service Revenue based on 4.5% Annual Growth
Rate ............................................................................................................ 25
Table 9: Comparison of Public Safety Fees Projected at 5% and 2% ........ 26
Table 10: Projected Public Works Fess and Utility Transfers ..................... 27
Table 11: Projected State Pension Aid ....................................................... 28
Table 12: Projected Other Taxes ................................................................ 29
Table 13: Projected License Revenue ........................................................ 31
City of Lancaster
Table 14: Projected Miscellaneous and Other Revenue ........................... 32

Table 15: 2007 Adopted Budget by Category of Expense......................... 32
Table 16: 2007 Adopted Budget Salary and Benefit Components ............ 33
Table 17: Cost of 3% Wage Adjustment .................................................... 34
Table 18: Estimated Health Insurance Cost .............................................. 34
Table 19: Estimated City Retirement Contributions ................................... 35
Table 20: Estimated Workers’ compensation Cost .................................... 35
Table 21: Projected Operating Cost .......................................................... 36
Table 22: Debt Service Obligations ........................................................... 36
Table 23: Real Estate Tax Rate Required for Fiscal Stability .................... 37
Table 24: Real Estate Tax Rate Required to Fund 3% Wage Adjustments
.................................................................................................................... 37
Table 25: Impact of Management Audit Recommendations on Financial
Forecast ...................................................................................................... 38
Table 26: Comparison of Real Property Appraised Value to Market Value*
.................................................................................................................... 39
Table 27: Strategic Plan Indicators for Economic Development................ 46
Table 28: DID Total Assessments* ............................................................ 48
Table 29: Administrative Services Department 2007 Staffing and General
Fund Budget ............................................................................................... 51
Table 30: Administrative Services Managed Accounts ............................. 52
Table 31: Administrative Services Department Staffing, 2003 through 2007,
all Funds ..................................................................................................... 52
Table 32: Administrative Services 2006 Staffing, Population and
Employees of Lancaster and Other Jurisdictions* ...................................... 53
Table 33: Administrative Services Managed Accounts ............................. 57
Table 34: Estimated Applications per Advertised Position in Lancaster and
Other Jurisdictions* .................................................................................... 69
Table 35: Lancaster IT Expenditures ......................................................... 70
Table 36: FY2007 Department of Public Works Budget and Staffing ......... 84
Table 37: Historic Staffing Patterns in the Department of Public Works.... 85
Table 38: Water Meter Readings versus Estimates, May 2006 through May
2007 .......................................................................................................... 110
Table 39: 2007 Adopted General Fund Budget For EDNR ..................... 117
City of Lancaster
Table 40: 2007 Federal Funds Budget For EDNR................................... 117

Table 41: Department Staffing by Bureau and Division ........................... 118
Table 42: Total EDNR Department Staffing 2003 - 2007 ........................ 118
Table 43: EDNR Bureau of Planning Staff .............................................. 119
Table 44: Bureau of Structural Inspections Staff ..................................... 120
Table 45: EDNR Bureau of Zoning and Inspections Staff ....................... 120
Table 46: Summary of Expenditures – EDNR Critical Repair and
Rehabilitation Loan Program .................................................................... 121
Table 47: EDNR Neighborhood Revitalization Division Staffing .............. 121
Table 48: Economic Development and Neighborhood Revitalization
Activities and Projects – 2007 .................................................................. 124
Table 49: City Planning Workload Data 2004 - 2006 .............................. 128
Table 50: Housing Inspection Data – FY 2004-FY 2007 (as of March) .... 131
Table 51: Comparison of Housing/Code Related Workload Data ........... 134
Table 52: Total 2007 CDBG and HOME Funding Allocations ................. 138
Table 53: Distribution of Personnel Between Direct and Support Service
.................................................................................................................. 142
Table 54: Staffing History 2003 - 2007 .................................................... 143
Table 55: Actual Part 1 and Part 2 Crimes 2002 - 2006 .......................... 146
Table 56: Number of Patrol Officers Responding to DCFS ..................... 151
Table 57: Adjusted IACP Staffing Requirements for Each Schedule
Alternative ................................................................................................. 155
Table 58: Estimate of Financial Impact of Patrol Division
Recommendations .................................................................................... 158
Table 59: Potential Savings and Cost of Police Bureau Management Audit
Recommendations .................................................................................... 162
Table 60: Lancaster Bureau of Fire 2007 Authorized Positions .............. 164
Table 61: Lancaster Bureau of Fire Positions by Organizational Unit ..... 164
Table 62: Lancaster Bureau of Fire Authorized Positions 2000 - 2007 ... 165
Table 63: Five Year History of Incident Responses................................. 167
Table 64: Five Year History of Types of Fires ......................................... 167
Table 65: Number of Plans Reviewed for Fire Code Compliance ........... 168
Table 66: Number of Code Enforcement Activities .................................. 169
City of Lancaster
FIGURES
Figure 1: Changes in Pennsylvania State Pension Aid 1994 - 2005 ...... 28
Figure 2: Administrative Services Department Organization .................. 51
Figure 3: Average number of city employees per hr employee .............. 62
Figure 4: Department of Public Works Organizational Chart .................. 82
Figure 5: Department of Economic Development and Neighborhood
Revitalization Organization .................................................................... 117
Figure 6: Bureau of Police Organization Chart .................................... 144
Figure 7: Number of Hours Spent Responding to DCFS ...................... 156
Figure 8: Bureau of Fire Organization Chart......................................... 166
City of Lancaster
OVERVIEW
The City of Lancaster, Pennsylvania, is a diverse community of 56,348

residents who live together in a dense environment that covers only 7.3
square miles. The City operates under the Mayor/Council form of
government. Lancaster is a full-service city that provides public safety,
health, housing, parks, streets and highways, water and sewer for its
residents.
Mayor Richard Gray took office in 2006 and began a process to develop
the City’s first strategic plan. The plan is vital to focusing Lancaster
resources on developing a culture of service and value. Such focus is
critical in light of the fiscal environment the administration inherited.
The City of Lancaster is the oldest inland city in the United States –
originally settled in 1718. The architecture and history provide a
significant amount of charm to the built environment, but the reality is that
the City government operates with and maintains an old and rapidly
decaying infrastructure.
The statement relates not only to the streets, sidewalks, water and sewer
infrastructure, but also to the buildings the City owns and operates, and
the technology infrastructure upon which the City’s financial information is
retained and management systems are housed.
Unfortunately “this old house” is in disrepair. It’s as if prior owners only

“painted” over the crumbling flaws in the house. The City’s house is not
just in need of an updated kitchen, but the electrical and plumbing
systems must be replaced as well. It is time for an extreme makeover –
“City edition.”
In addition to the very real physical challenges the City faces, the City is
also operating in a constrained fiscal environment where operating
expenses continue to increase at levels much faster than revenues.
To develop a coherent strategy for dealing with challenges, the City of

Lancaster retained Management Partners through a grant from the
Commonwealth of Pennsylvania’s Department of Community and
Economic Development (DCED) Early Intervention Program (EIP). The
EIP is designed to aid communities that face fiscal challenges by
intervening early so that Act 47 (the Pennsylvania statute for municipal
bankruptcy) can be avoided.
Management Partners, Inc. 9

City of Lancaster
Management Partners was founded in 1994 with a specific mission to

help local government leaders improve their service to the public. Over
the past 13 years Management Partners has worked with hundreds of
public sector organizations in a variety of capacities, including providing
financial analysis services. The firm is staffed by professionals who are
experienced public service managers as well as qualified management
consultants. The Management Partners consulting team includes
generalists as well as subject-matter experts.
Management Partners has extensive experience in helping improve both

the efficiency and effectiveness of local government services, including
improving existing organizations as well as the operations of multiple
governments through shared service delivery or merger/ consolidation.
The firm has undertaken organizational improvement projects in virtually
every type of local government service, including reviews of entire
governments as well as selected studies of individual departments and
functional activities. Management Partners has specialized in
performance measurement development and training, having trained over
100 jurisdictions throughout North America as the trainer for the
International City/County Management Association’s (ICMA) Center for
Performance Measurement.
10 Management Partners, Inc.

City of Lancaster
EXECUTIVE SUMMARY
Over a period of four months, Management Partners conducted an

extensive operations audit of the City of Lancaster that included
developing a multi-year financial plan. Management Partners consultants
interviewed department and division managers; conducted focus groups
affording almost 100 front-line employees an opportunity to participate;
examined a range of budgetary, operational and planning documents;
benchmarked some operational data against similar-sized cities; and
applied best practices to the knowledge we gained of the City’s
processes.
The following report details our findings and observations, and specifically
recommends 182 actions that, when implemented, will substantially
improve service delivery across the entire government. These
recommendations are listed in Attachment A.
While it is a review of City operations and recommends improvements in

management and operations, the report should not be read as an
indictment of the employees, management or administration of the City of
Lancaster.
Every organization, public or private, has opportunities to improve how it

functions. The City of Lancaster has been bold enough to ask the
question – and this report summarizes the answer.
Organizations develop over time – yesterday’s solutions sometimes

become today’s problem. Perhaps it is best exemplified in the discussion
about the City’s computer technology. Each application, computer,
mainframe and peripheral was an appropriate solution when originally
purchased. Today, the fact that the systems are outdated and no longer
optimal is a natural occurrence – things need to be upgraded and
replaced -- but the initial purchase and movement to computers itself was
certainly the right solution at that time.
The primary findings of the report are that the City of Lancaster must
upgrade its corporate and physical infrastructure, while at the same time
addressing serious fiscal situation. Some of the financial “savings”
identified in the report will undoubtedly be opposed and fought by those
impacted by the proposed change.
Ultimately, the City will have to make very tough decisions to make bold,
unpopular but critical changes. Lancaster must have the courage to

City of Lancaster
oppose the “position” of those who benefit from existing systems,

schedules and processes.
City Finances
The finances of the City require significant attention. If nothing is done to
reverse the trend, initial projections show a $70 million cumulative deficit
by 2012. Fortunately, the City has not maximized its ability to level
additional taxes if necessary, and opportunities for cost savings have
been identified.
At the same time, the City needs to invest millions in its corporate and
physical infrastructure. Developing a conscious strategy to address this in
the near term is a critical priority for the City.
City Support Services, Facilities & Equipment

The City has not invested in administrative and support services – with
either human or technological capital. Critical internal services must be
expanded and improved so the City can operate more efficiently and
effectively. It is essential to address the issue because the City’s
sustainability and the organization’s effectiveness depend on it.
The report outlines a number of recommendations to strengthen the core

central services upon which the rest of the organization depends. It
includes the need to continue on the path of becoming more data-driven
by implementing a corporate system of performance management –
supported on a strong backbone of performance measures extending to
every program of government.
Public Safety
As with many organizations in crisis, the City has only invested in public
safety in recent years. The greatest investment has been in police
services – and that is critical because of the need to address crime trends
in the City to increase its vitality and economic potential. Fire Department
manpower has been cut, and it operates from a reduced number of fire
stations.
Each of the agencies has the opportunity to help its own mission by
agreeing to working condition and schedule modifications identified in the
report which will free up additional money which can then be invested in
the critical and essential needs of the City. No doubt the
recommendations will be unpopular – yet to change the future, labor units
must partner with City administration to create a different and more
positive future for the entire community.

City of Lancaster
The Bottom Line

The City of Lancaster is blessed to have a workforce that is truly
committed to providing quality services to the residents of the community.
The current administration has articulated a strategic future for the City
and the organization – and City government must work tirelessly to make
that happen.
Many of the recommendations in the report will bring about efficiency

savings and/or better service delivery; however, it will take hard work to
make the improvements happen. Those who will argue against making
changes should consider that the City of Lancaster does not have the
luxury of standing pat – the fund balance will, in fact, be depleted and
operating and cumulative deficits are a very real part of the future if the
City does nothing.
The following quote from the controversial political leader Machiavelli is

more than 500 years old – and yet could not be truer today. “There is
nothing more difficult to carry-out or more doubtful of success, nor more
dangerous to handle, then to initiate a new order of things. For the
reformer has enemies in all those who profit from the old order.”

City of Lancaster
METHODOLOGY
Through the DCED EIP grant, the City of Lancaster contracted with
Management Partners to conduct an operations audit and develop a
multi-year financial plan. The initial activity consisted of conducting a
financial analysis that assessed financial trends and the current financial
condition of the City’s General Fund budget.
Management Partners prepared a multi-year projection of revenues and

expenses, called the base case that quantifies the future financial
condition based on current trends. The financial assessment also
included an analysis of actions available to the Lancaster City Council for
achieving a stable financial condition in the City’s General Fund. The
available actions analysis included a review of economic development
strategies, plans and projects, the financial impact of management audit
recommendations, and taxation alternatives. Alternative financial
scenarios are presented based on the available actions analyzed.
An assessment helps the Lancaster City Council determine what might be

feasible steps for stabilizing the General Fund financial condition.
Management Partners also developed a General Fund forecasting model
based on the financial analysis so that Lancaster might implement a
multi-year financial plan and update the plan each year in the future.
Management Partners conducted a management audit of the City’s major

Bureaus and Departments, including Police, Fire, Public Works,
Administrative Services, Economic Development and Neighborhood
Revitalization. The management audit identifies critical needs and
opportunities for operational efficiencies and improvements.
The management audit analysis was based on interviews with key

Lancaster staff in each department. The interviews were supplemented
with focus groups of City employees that drew out opinions on strengths,
weaknesses and opportunities for improvement.
We analyzed operations data to help get a feel for service environment

demand profiles. Recommendations for improving services while holding
the line on costs are included in each general fund department’s
management audit.

City of Lancaster
Benchmark Survey
As part of the operational assessment of the City of Lancaster,
Management Partners attempted to compare certain workload, staffing
and budget data for City operations with other Pennsylvania cities with
which Lancaster has historically compared itself. To do so, Management
Partners conducted an on-line survey from June 21-27, 2007. Eight
jurisdictions were invited to respond to the multi-departmental survey.
Individual surveys were created for the follow services: administration,
police, fire, public works and housing/code enforcement. The jurisdictions
that were invited to participate in the survey were:
• Altoona, Pennsylvania
• Bensalem, Pennsylvania
• Easton, Pennsylvania
• Harrisburg, Pennsylvania
• Reading, Pennsylvania
• Scranton, Pennsylvania
• Wilkes-Barre, Pennsylvania
• York, Pennsylvania
Lancaster Mayor Gray personally requested the participation of the other

communities by emailing the survey to the mayors and business
administrators (as applicable) of these jurisdictions. Two reminder
notices were sent to the jurisdictions and the deadline was extended to
encourage broader participation. However, only Altoona, Bensalem,
Easton, Reading, and York provided responses to at least one of the
surveys.
The complete results are included in Attachment B, and relevant data is

included within the body of this report.
Focus Group Summary

An important part of the methodology for learning about and appreciating
the current environment of an organization is to solicit input from
employees who might not otherwise have an opportunity to provide it.
Management Partners conducted 10 focus groups to solicit direct input
from employees throughout the organization. Focus groups were
organized by functional area (i.e. Police, Fire, Public Works, etc.) and an
additional focus group was organized to seek input from employees who
are customers of other bureaus.
Unlike the one-way flow of information that occurs in a typical exchange

between an interviewer and interviewee, focus groups allow for a rich

City of Lancaster
exchange of thoughts and ideas in a group discussion. When we

facilitated employee focus groups, they were structured around gathering
information about:
• Services and activities delivered well by the City and it’s agencies
in particular
• Services and activities that can be improved
• Specific ideas to improve services and/or increase efficiency
In general, Management Partners was impressed by participants’ positive

attitude and interest in both doing a good job and continually improving
operations. The following information represents overall themes shared
by participants:
Overall
• Special events are done well
• No employee recognition – no incentives to work hard
• Lack of communication between different departments
• Union blamed for problems
• Inability to get rid of bad workers lowers morale
• Need to improve customer service – eliminate citizen runaround
• Need to resolve technology issues – no consistency, no planning
ahead
• Need to provide more opportunities for training
• Need a better mechanism for employee feedback
• Need a better understanding of each department’s responsibilities
(i.e. who tests and maintains the fire hydrants?)
• Getting things from other departments depends on who you know

City of Lancaster
FINANCIAL ANALYSIS
The City of Lancaster has adopted a balanced General Fund Budget for
2007 by using approximately $3,466,000 of reserve funds. Estimated
2007 General Fund expenses exceed $43,257,000. Revenue for 2007 is
estimated to be approximately $39,791,000 – about 92% of anticipated
expense. Lancaster enjoyed a total General Fund reserve of $15,221,000
on December 31, 2006, but expects that reserve to shrink to $11,755,000
by the end of 2007.
The City’s operating expenses continue to increase while its major

revenue sources grow at a much slower rate. To develop a coherent
strategy for dealing with the challenge, the City retained Management
Partners through a grant from the Commonwealth of Pennsylvania’s Early
Intervention Program (EIP). Our job is to determine the current trends for
General Fund income and expense, to forecast future financial conditions
and provide a forecasting model that can be used for subsequent budget
development.
The analysis and financial forecast model developed indicates the City is,
indeed, facing a serious financial challenge. Revenues are growing
slowly, if at all, while expenses increase due to higher labor cost and cost
of goods purchased. The financial forecast we developed, based on
current revenue and expenditure trends, predicts Lancaster will be unable
to balance the 2009 budget and face an accumulated shortfall of more
than $69 million by 2012. Table 1 below summarizes the forecast.
TABLE 1: GENERAL FUND FINANCIAL PROJECTION 2007 - 2012
2007 2008 2009 2010 2011 2012

Beginning
Balance $15,221,475 $11,755,104 $5,984,842 ($1,572,848) ($10,704,603) ($21,780,213)
Revenue $39,791,014 $39,621,298 $40,482,615 $41,370,574 $42,286,172 $43,230,453
Expense $43,257,385 $45,391,560 $48,040,305 $50,502,329 $53,361,782 $56,689,900
Surplus/(Deficit) ($3,466,371) ($5,770,262) ($7,557,690) ($9,131,755) ($11,075,610) ($13,459,447)
Ending Balance $11,755,104 $5,984,842 ($1,572,848) ($10,704,603) ($21,780,213) ($35,239,660)
Cumulative
Deficit NA NA ($1,572,848) ($12,277,451) ($34,057,664) ($69,297,324)
The projection above is the base case and is based on the following key
assumptions:

City of Lancaster
• Property tax rates will not increase above the current rate of $8.82
• State Pension Aid revenue will continue in the future and increase
slightly each year
• Salary increases based on current labor agreements are included
in the expense projection, but no other salary increases are
included
• Cost of health insurance and workers’ compensation will increase
at the rate experienced since 2000 – 18% and 13% respectively
• Retirement contributions are based on the actuarial assumption
that there will be 8.5% return on retirement fund assets
• Cost of goods purchased will escalate at 3.5% annually
• There will be a $10 million bond issue in 2007 for capital
improvements, maintaining debt service near to its current level.
Financial Forecast Methodology

The financial forecast has been developed after reviewing the 2007 City
of Lancaster Budget, financial projections prepared by Lancaster staff,
and historic experience with General Fund revenue and expense items.
Management Partners also held discussions with administrative staff to
develop background on revenue and expenditure history.
Revenue line items were bundled into common categories and analyzed
for historic performance. The historic performance trends were then
applied to the 2007 Budget revenue estimates provided by the City
Administration.
On the expense side, known future cost increases, such as labor

contracts that already have been approved, were included in future year
estimates. The historic impact of inflation on the cost of goods purchased
also has been factored into the expense side of the forecast.
The revenue and expense analyses have been formatted into a

spreadsheet, with forecast formulae built in, so that financial staff can
easily use the model for future budget development and to analyze the
impact of financial options on future financial conditions.
Revenue Analysis
Overview of Revenue
The City receives revenue from a number of sources that have been
analyzed for the project. Table 2 shows the sources and amount of
revenue estimated from each in the 2007 Adopted Budget.

City of Lancaster
TABLE 2: GENERAL FUND REVENUE SUMMARY – 2007 ADOPTED BUDGET
$ Amount 2007 % of Total

Revenue Source Adopted Budget Revenue
City Real Estate Tax $16,448,400 42%
Earned Income Tax $3,550,000 9%
Local Services Tax $2,075,000 5%
Real Estate Transfer Tax $815,000 2%
Sale of Police Services $2,218,391 6%
Public Safety Fees $2,758,000 7%
Public Works Fees $3,263,448 8%
State Pension Aid $2,385,355 6%
Other Taxes $412,701 1%
Payments in lieu of Taxes $395,000 1%
Sale of City Tax Claims $875,000 2%
Housing and Regulatory Licenses $2,038,000 5%
Miscellaneous/Other Revenue $2,556,719 6%
TOTAL $39,791,014 100%
City Real Estate Tax
As a Pennsylvania “Third Class City,1” the City of Lancaster may levy a

tax of up to 25 mils on the appraised value of commercial and residential
real estate for general municipal purposes. The City currently levies an
$8.82 real estate tax. With permission of the Court of Common Pleas, an
additional five mills may be levied on the same basis. Lancaster also
may levy taxes on the appraised value of real estate without limitation as
to rate or amount in order to pay principal and interest on debt. Special
purpose levies are authorized for libraries (unlimited), shade trees (1/10th
mill) and charity (10 mills). Lancaster does not levy any special purpose
real estate taxes.
The two components that determine the amount of revenue received from
the City real estate tax are the tax rate and the appraised value. The
Lancaster City Council determines the tax rate, within the limits
established by statute as noted above. The appraised value of real estate
is established by the County Appraiser and is ostensibly based on market
value.
From 2001 to 2007, the property tax rate has increased from $6.84 to
$8.82, an increase of 29% - approximately 4% per year. During that same
time, the appraised value of Lancaster real estate increased from
$1,659,177,500 to $1,864,897,959, an increase of approximately 12% -
about 1.7% per year. Consequently, revenue from real estate taxes
1
A Third Class City refers to Cities who incorporated under an act of the
Pennsylvania Assembly in 1874 which divided the State into three classes. A
City of the third class must have a population of at least ten thousand.

City of Lancaster
increased from $11,955,217 in 2001 to a projected $16,448,400 for 2007,

an increase of 38%, or about 5.5% a year.
For 2007, the real estate tax is projected to comprise 41% of the total
estimated General Fund revenue of $39,791,014, constituting the single
largest source of income to the City.
For projection purposes, we have applied the 2001 – 2007 historic

experience for appraised value and tax rate to the 2007 estimated real
estate tax revenue. Table 3 indicates the result of that methodology.
TABLE 3: PROJECTED LANCASTER CITY REAL ESTATE TAX REVENUE
2008 2009 2010 2011 2012

Appraised
$1,896,601,224 $1,928,843,445 $1,961,633,784 $1,994,981,558 $2,028,896,244
Value
Tax Rate $9.17 $9.54 $9.92 $10.32 $10.73
Revenue $17,391,833 $18,401,166 $19,459,407 $20,588,209 $21,770,056
$ Increase $943,433 $1,009,333 $1,058,241 $1,128,802 $1,181,847
% Increase 5.74% 5.8% 5.75% 5.8% 5.74%
For projection purposes, we also projected the real estate tax revenue
stream if the tax rate is capped at the 2007 rate of $8.82. Table 4 shows
that outcome.
TABLE 4: PROJECTED LANCASTER CITY REAL ESTATE TAX REVENUE – CAPPED

RATE
2008 2009 2010 2011 2012

Appraised
$1,896,601,224 $1,928,843,445 $1,961,633,784 $1,994,981,558 $2,028,896,244
Value
Tax Rate $8.82 $8.82 $8.82 $8.82 $8.82
Revenue $16,728,022 $17,012,399 $17,301,609 $17,595,737 $17,894,864
$ Increase $279,622 $284,298 $289,210 $294,128 $299,127
% Increase 1.7% 1.7% 1.7% 1.7% 1.7%
Comparing the two projections, increasing the real estate tax rate at its
most recent historical experience of 4% annually produces $5,321,656 of
additional real estate tax revenue over the next five years. Capping the
tax at the 2007 rate of $8.82 produces revenue growth of $1,446,385 over
the same period – a difference of $3,875,271.
Earned Income Tax
The Earned Income Tax (EIT) is levied on the gross wages, salaries, fees
and commissions of employees and self-employment net income. The tax
is collected by the municipality of employment, but returned to the place
of residence. The rate levied by the City is 0.6%. The 2007 adopted
budget estimates revenue of $3,550,000 from the source. The earned
income tax represents approximately 9% of General Fund revenue.

City of Lancaster
Potential for change in this revenue source in the future is a function of

the number of persons residing in the City who have earned income
(retirement income is not subject to the tax) and the tax rate levied by the
City. Under Pennsylvania law, The City may levy a maximum tax of 1.1%,
of which 0.5% is available for the school district and 0.6% is available for
the City. The City of Lancaster currently levies the maximum rate allowed
by law.
From 1994 through 2004, the EIT grew at an annual rate of approximately
2%. Table 5 projects the EIT based on the historical growth rate with no
change in the tax rate.
TABLE 5: PROJECTED EARNED INCOME TAX GENERAL FUND REVENUE AT 0.6% RATE
2007 2008 2009 2010 2011 2012

Projected
$3,550,000 $3,621,000 $3,693,420 $3,767,288 $3,842,639 $3,919,486
Revenue
$ Increase $249,182 $71,000 $72,420 $73,868 $75,351 $76,847
% Increase 2% 2% 2% 2% 2% 2%
Emergency Municipal Services Tax (EMST)
The EMST (which replaced the Occupational Per Capital Tax in 2004) is
levied on all persons working in the City. The rate for 2007 is $52 per
person, of which $5 is for the Lancaster City Schools and $47 is for the
City. Actual 2005 revenue from the source was $2,070,802. The 2007
adopted budget estimates that $2,075,000 in local service tax revenue
will be realized. The EMST comprises about 5% of General Fund
revenue. Prior to 2005 when the change from the Occupational Per
Capita Tax to the EMST went into effect, the revenue stream for this
source was virtually flat, increasing from $241,669 in 1994 to $248,722 in
2004.
Changes in revenue from the EMST will be governed by changes in the

number of persons working in the City and the rate set for the tax by City
Council. The maximum rate allowable under Pennsylvania law is $52,
distributed $5 for the local school district and $47 for City purposes. The
City currently levies the maximum local services tax rate allowable by law.
The City estimates revenue from the source will grow at 0.5% annually.
The growth rate assumption is reasonable, given the historic experience
of the revenue item and the fact that job growth is not expected to be
dramatic. Table 6 shows the projected income stream based on the
assumption of a 0.5% growth rate.

City of Lancaster
TABLE 6: PROJECTED LOCAL SERVICES TAX GENERAL FUND REVENUE AT $52 RATE
2007 2008 2009 2010 2011 2012

Projected
$2,075,000 $2,085,375 $2,095,801 $2,106,280 $2,116,811 $2,127,395
Revenue
$ Increase 0$ $10,375 $10,426 $10,479 $10,531 $10,584
% Increase 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%
Real Estate Transfer Tax (RETT)
The City levies a tax of 1% on the sales price of any real estate
transaction in the City. Proceeds are shared equally with the School
District. The 1% rate is the maximum allowed under Pennsylvania law.
The adopted 2007 budget estimates the City’s income from the source to
be $815,000, about 2% of General Fund estimated receipts. Revenue
from this source grew from $394,148 in 1994 to $894,574 in 2005, an
average of 10.5% annually.
Changes in the Real Estate Transfer Tax occur based on the value of real
estate sold during the year. Increasing market value of real estate would
certainly have a favorable impact on receipts from the source; however, a
buyer’s market would dampen revenue expectations.
We believe that market forces are likely to significantly reduce the historic
growth rate in the source. We suggest linking the projected income from
the tax to the Federal Reserve target inflation rate. Typically, the Fed
aims to hold price growth to 3%. Applying that target to the RETT would
be prudent. Table 7 shows the outcome of that application.
TABLE 7: PROJECTED RETT GENERAL FUND REVENUE AT 1% RATE
2007 2008 2009 2010 2011 2012

Projected
$815,000 $839,450 $864,633 $890,572 $917,289 $944,808
Revenue
$ Increase $0 $24,450 $25,183 $25,939 $26,717 $27,519
% Increase 3% 3% 3% 3% 3% 3%
Sale of Police Services
The City provides police services to other jurisdictions, including

Lancaster Township, Park City and the School District, among others.
The adopted 2007 budget estimates revenue for police services to be
$2,218,391, approximately 5.6% of General Fund revenue.
Charges for service are established by formula and included in each

service contract. Change in revenue from the source is a function of the
services requested by contract jurisdictions and the formula used by
Lancaster to assure full cost recovery for services rendered. As

City of Lancaster
Lancaster’s cost of providing police service increases, increases are

passed on to the contracting jurisdictions.
There is no historic pattern to charges for police service that might serve
as a trend line for future increases. In 1994, Lancaster provided police
service to six jurisdictions on contract. Since then, three jurisdictions no
longer contract for service, but four new jurisdictions have begun
contracting. Since service levels varied from jurisdiction to jurisdiction in
the past, revenue trends are not apparent.
City staff has used an annual increase of 4.5% to project revenue from
this source into the future. The revenue projection based on the 4.5%
factor is shown in Table 8.
TABLE 8: PROJECTED POLICE SERVICE REVENUE BASED ON 4.5% ANNUAL GROWTH

RATE
2007 2008 2009 2010 2011 2012

Projected
$2,218,391 $2,318,219 $2,422,538 $2,531,553 $2,645,473 $2,764,519
Revenue
$ Increase $174,989 $99,828 $104,319 $109,025 $113,910 $119,046
% Increase 8.6% 4.5% 4.5% 4.5% 4.5% 4.5%
Public Safety Fees
The revenue group includes various public safety related income items,
the largest of which are parking violations and alderman’s fines.
Alderman’s fines are paid for the violation of municipal ordinances.
Revenue from the sources has grown from $1,268,368 in 1994 to the
2007 adopted budget estimate of $2,758,000 – an increase of 117% -
approximately a 6% annual growth rate compounded. The revenue group
comprises approximately 7% of expected 2007 General Fund revenue.
Parking fines and alderman fines comprise $2,425,000, or 88% of the

2007 total of the revenue group. The fine schedule for parking violations
is established by City Council. State law establishes the schedule for
alderman’s fines. Changes in the revenue stream would result from a
change in the volume of activity, such as parking enforcement or citations
to District Court, and, in the case of parking violations, changes to the fine
schedule.
There is no indication that a change from historic experience should be

expected and with that being the case, an annual growth factor of 6%
could be justified. The factor should be adjusted for prudence’s sake and
a 5% annual growth factor applied to the revenue stream. City staff has
used a 2% annual growth factor for the revenue items; however, the
factor seems overly cautious given the control the City has over the
parking violation fine schedule and the historic collection experience in
both sources. Table 9 shows the projection for the revenue group at the
recommended 5% rate and at the current City estimate of 2%.

City of Lancaster
TABLE 9: COMPARISON OF PUBLIC SAFETY FEES PROJECTED AT 5% AND 2%
2007 2008 2009 2010 2011 2012

5% Annual
$2,758,000 $2,895,900 $3,040,695 $3,192,729 $3,352,366 $3,519,984
Revenue Growth
2% Annual
$2,758,000 $2,813,160 $2,869,423 $2,926,811 $2,985,347 $3,045,054
Revenue Growth
Annual
$0 $82,740 $171,272 $265,918 $367,019 $474,930
Difference
Cumulative
$0 $82,740 $254,012 $520,930 $887,949 $1,362,879
Difference
Public Works Fees
The category of revenue, estimated at $3,263,448 for 2007, is composed

primarily of fund transfers from the Water and Sewer utilities. Also
included is income from rental of City property and facilities. The adopted
2007 budget includes $3,022,077 in transfers from utility funds, of which
$1,014,949 is a charge for administrative services provided by General
Fund agencies to the utilities for legal, personnel, financial and other
administrative services. The remainder balance of $2,007,128 is a result
of the City’s ownership of the utilities and has its right to transfer all or
none of the fund balance from the utilities funds to the General Fund.
Public Works fees comprise slightly more than 8% of estimated 2007
General Fund revenue.
The transfer of utility funds for administrative costs is based on a formula

developed by the federal government (known as the A-85 review) for
determining what percentage of federal grants the City may allocate to
itself to pay for administrative costs of the grant. The federal government
permits periodic adjustments to the formula factors to account for
increased costs. General Fund revenue for the current item has increased
from $670,300 in 1994 to an estimated $1,014,949 for 2007, an average
3.5% increase per year. City staff is using a 2.5% growth factor to project
revenue from the source. We believe a higher factor would be more
accurate, given that the A-85 formula adjustments are more likely to track
with inflation and 3.5% is closer to the true recent inflation experience
than 2.5%.
The transfer of utility fund balance is theoretically unrestricted but the

amount available to transfer -- i.e. the profit -- is a result of rate setting
review by the Pennsylvania Public Utilities Commission (PUC). The City
Council may set any rate it feels appropriate; however, rates for service
outside the City limits are subject to review and approval of the PUC.
City policy has been to equalize rates inside and outside of the City. Staff
has projected that the 2007 estimated utility fund balance transfer of
$2,007,128 is also an appropriate estimate to use for future transfer
estimates.

City of Lancaster
Miscellaneous revenue in the category accounts for $241,371 in the

adopted 2007 budget. Income from the items in 1994 was $341,839,
indicating a decrease of over $100,000 from the sources between 1994
and 2007. Between 1994 and 2005 revenue increased by nearly
$125,000, which is an average annual increase of nearly 3%. City staff
projects a 1% annual growth rate for these revenue items in the future.
Table 10 below projects revenue from the category using historical

experience and assuming that utility fund balance transfers will remain flat
at the 2007 estimate.
TABLE 10: PROJECTED PUBLIC WORKS FESS AND UTILITY TRANSFERS
2007 2008 2009 2010 2011 2012

Utility Fund
$2,007,128 $2,007,128 $2,007,128 $2,007,128 $2,007,128 $2,007,128
Balance Transfer
Utility Fund Admin
Charge (3.5% Annual $1,014,949 $1,050,472 $1,087,238 $1,125,292 $1,164,677 $1,205,441
growth rate)
Miscellaneous (3%
$241,371 $248,612 $256,070 $263,752 $271,665 $279,815
Annual growth rate)
Total $3,263,448 $3,306,212 $3,350,436 $3,396,172 $3,443,470 $3,492,384
State Pension Aid
Pennsylvania provides assistance to local governments throughout the

commonwealth for pension payments. The amount of aid is a function of
the availability of funds and a complex formula that takes into account
variations among local pension funds for participant benefits and
contributions. The 2007 budget estimates state pension aid to be
$2,385,355, approximately 6% of expected General Fund revenue.
From 1994 through 2005, the annual change in pension aid has varied
greatly. Figure 1 shows the annual percentage change in state pension
aid.

City of Lancaster
FIGURE 1: CHANGES IN PENNSYLVANIA STATE PENSION AID 1994 - 2005
25%
20%
15%
10%
5% Series1
0%
1 2 3 4 5 6 7 8 9 10 11
-5%
-10%
-15%
As Figure 1 makes evident, there is no trend or pattern to state pension

aid. In five of the last 11 years, state pension aid decreased from the
previous year. In six of the last 11 years, there was an increase in
pension assistance.
City staff has projected an annual 2% increase in state pension aid. Given
the irregular funding experience, any projection would be a guess. The
2% annual increase factor proposed by City staff does not appear to be a
heroic assumption. Table 11 below projects state pension aid based on
the 2% assumption.
TABLE 11: PROJECTED STATE PENSION AID
2007 2008 2009 2010 2011 2012

Projected State
$2,385,355 $2,433,062 $2,481,723 $2,531,357 $2,581,984 $2,633,624
Pension Aid
$ Change from
$133,453 $47,707 $48,661 $49,634 $50,627 $51,640
Previous Year
Other Taxes
Other taxes levied by the City include the Residency Tax, Per Capita Tax,
miscellaneous taxes and utility tax refunds. The Residency and Per
Capita taxes are levied at the maximum rate allowable by law at $5 per
resident. The two taxes are levied on all City residents 18 years of age
and older. The adopted budget estimates $195,000 will be collected from
the sources during 2007.

City of Lancaster
Miscellaneous taxes and utility tax refunds are estimated to generate

$217,701 in revenue in 2007. The sources account for 1% of expected
2007 General Fund revenue.
Changes in revenue from the Residency and Per Capita taxes are a
function of increasing population age 18 and over. City staff projects
revenue from the sources to grow 2% annually. Although the growth rate
assumption is modest and does not account for a significant dollar
amount, we feel a more prudent assumption is that there will be no
growth in the age group that forms the basis for the taxes.
Miscellaneous taxes and utility tax refunds have been virtually flat since
2001, averaging approximately 1% increase per year.
Table 12 below projects revenue from other taxes and utility tax refunds.
Residency and Per Capita taxes are projected to show no growth over the
next five years, and miscellaneous taxes and utility tax refunds are
projected to increase 1% a year.
TABLE 12: PROJECTED OTHER TAXES
2007 2008 2009 2010 2011 2012

Residency/Per Capita
$195,000 $195,000 $195,000 $195,000 $195,000 $195,000
Taxes
Other Taxes/Utility
$217,701 $219,878 $222,076 $224,297 $226,540 $228,805
Tax Refunds
Total $412,701 $414,878 $417,076 $419,297 $421,540 $423,805
Payment in Lieu of Taxes (PILT)

Some owners of tax-exempt real property make voluntary payments to
the City in lieu of paying real estate tax. Such property owners are under
no obligation to make any payment. Actual 2006 PILT revenue was
$866,278. From 1994 through 2006, the average annual PILT revenue
was $373,652. The adopted budget includes $395,000 for PILT in 2007.
PILT accounts for less than 1% of General Fund revenue in most years.
Given the completely voluntary nature of PILT, the safest protocol would
be to use the dollar amount of the average annual PILT revenue, in this
case $373,652, as a flat projection for each future year. The annual
average can be updated each year with the new calculated average
applied to the projection.
Sale of City Tax Claims
The City has initiated a policy of selling its unpaid and delinquent tax
claims on the market. It has received a proposal from a private collection
agency offering to pay between 90 and 95 cents on the dollar for selected
delinquent tax claims. The City is currently preparing a request for
proposals for purchase of unpaid tax claims to select a vendor for this
service. The City will receive revenue from the source for the first time in

City of Lancaster
2007. The adopted budget anticipates a revenue stream of $875,000 in

2007, which would include sale of tax claims from prior years.
Revenue from the source will depend on the amount of unpaid tax claims
that meet the purchase criteria specified by the selected vendor, since not
all unpaid claims would be subject to purchase.
City staff projects receiving $300,000 annually from the source. Given the
new policy initiative and consequent lack of historical experience with this
revenue source, the City staff estimate represents a reasonable approach
to approximating revenue from sale of tax liens.
Housing and Regulatory Licenses
The revenue category is comprised of a number of individual revenue

items associated with construction of improvements to real property, as
well as mechanical amusement, mercantile and beverage licenses. The
estimated 2007 revenue from the sources is $1,590,000 in housing
licenses and $448,000 in regulatory licenses. The sum of the two
categories, $2,038,000, constitutes approximately 5% of expected 2007
General Fund revenue.
The fee schedule for housing licenses is controlled by City Council, while
the fee schedule for regulatory licenses is subject to state statute.
From 1994 through 2006, the average annual increase for regulatory
licenses was approximately 3.5%. The historical factor for revenue
increase is appropriate to apply to this source for projection purposes.
Housing license revenue has been very volatile, mirroring activity in the
housing marketplace. Annual revenue changes have ranged from a high
of 59% increase over the previous year to a low of 22% decrease from
the previous year. The average annual rate of change is an approximate
12% increase.
Since the fee schedule for the revenue items is subject to City Council
approval, it would be appropriate to use the same factor being used to
project overall cost increases (for wages, benefits, services and supplies)
expected by the City. The assumption is based on the objective that
licensing fees are set for full cost recovery. Due to the annual increase in
the City’s cost of doing business, the fee schedule for housing licenses
should increase at the same rate. Future costs are projected to increase
an average of 4.5%, so that factor is applied to housing license revenue
projections.
Table 13 shows the revenue projection for regulatory and housing

licenses.

City of Lancaster
TABLE 13: PROJECTED LICENSE REVENUE
2007 2008 2009 2010 2011 2012

Regulatory
$448,000 $463,680 $479,908 $496,705 $514,090 $532,083
License Revenue
Housing License
$1,590,000 $1,661,550 $1,736,319 $1,814,454 $1,896,104 $1,981,429
Revenue
Miscellaneous/Other Revenue
Revenue items in the category include interest earnings, certain federal

reimbursements for indirect costs of grant administration, reimbursement
of state gasoline taxes, and other miscellaneous items. Estimated 2007
revenue included in the adopted budget is $2,556,719, comprising 6% of
total expected General Fund revenue.
Of the total revenue included in the category, interest earnings account

for $925,000, federal indirect expense reimbursement accounts for
$526,500 and state gasoline tax reimbursement comprises $350,000.
The balance, $755,219, consists of miscellaneous revenue items.
Changes in interest earnings will occur as amounts available for

investment change. One factor that will have an impact on investment
earnings is the amount of available fund balance. In 2007, the City
enjoyed a beginning fund balance in excess of $15 million. The fund
balance will be drawn down significantly in the near term, so it is likely
that funds available for investment will also decrease significantly. Fund
balance is not the only amount available for investment, as current
income is also invested and earns interest. In any event, it is probably
that interest revenue will decrease.
For purposes of the forecast, we have assumed that 67% of interest

earnings are attributable to investing current revenue. (Proceeds from
investing bond funds are subject to arbitrage restrictions limiting the
interest earnings on tax-exempt issues. Consequently, bond fund interest
earnings are not typically included as General Fund revenue, but are
attributed instead to capital improvement projects.)
Projected revenue on invested funds should be factored primarily on the

change in fund balance. If the General Fund balance is expected to
decrease by 33% in a given year, the estimate for interest earnings
should be decreased by the same ratio. For the forecast, we have
assumed that the sole source of interest earnings beginning in 2009 will
be based on current revenue.
Federal indirect expense reimbursement was discussed in detail under

the Public Works fees revenue analysis section. Indirect expense
reimbursement is a function of operating cost, which consists primarily of
salaries. The projection factor to use for the revenue category should be

City of Lancaster
the same factor used to project salaries and benefits cost; in which case,
the factor is 4.5%.
The state gasoline tax reimbursement and the miscellaneous revenue

items in the category show no discernible pattern or trend. City staff have
used a factor of 1% as an average annual increase for the items. The
factor is certainly prudent and can be used to estimate future growth.
Table 14 projects income for items in this revenue category.
TABLE 14: PROJECTED MISCELLANEOUS AND OTHER REVENUE
2007 2008 2009 2010 2011 2012

Interest Income $925,000 $619,750 $619,750 $619,750 $619,750 $619,750
Federal
$526,500 $550,192 $574,951 $600,824 $627,861 $656,114
Reimbursement
Gasoline Tax/
$1,105,219 $1,116,271 $1,127,433 $1,138,708 $1,150,095 $1,161,596
Miscellaneous
Total $2,556,719 $2,286,213 $2,322,134 $2,359,282 $2,397,706 $2,437,460
Expense Analysis
2007 Adopted Budget Overview
The expenditure side of the financial forecast is built using the proposed
2007 Budget as the baseline. Adjustments to the baseline for future years
are based on a combination of known cost increases for labor
agreements and assumptions on other certain cost elements, as
explained here.
The adopted 2007 expenditure budget totals $43,257,385. The budget

breakdown by category of expense is shown in Table 15.
TABLE 15: 2007 ADOPTED BUDGET BY CATEGORY OF EXPENSE
Expense Category 2007 Budget $ Amount Percent of Total Budget

Salaries $21,795,816 50%
Benefits $13,345,250 31%
Operating Expense $5,814,673 13%
Debt Service $2,947,973 6%
Pension Bond ($646,327) NA
Savings
Total $43,257,385 100%

City of Lancaster
Salaries and Benefits
Salaries and benefits make up 81% of the 2007 budget. Table 16

provides a more detailed breakdown of the salary and benefit
components of the 2007 Budget.
TABLE 16: 2007 ADOPTED BUDGET SALARY AND BENEFIT COMPONENTS
2007 Adopted % of 2007

Component Budget $ Amount Adopted Budget
Police Salary $10,304,164 24%
Police Retirement $1,775,214 4%
Police Health Insurance $3,957,500 9%
Total Police $16,036,878 37%
Fire Salary $5,128,447 12%
Fire Retirement $1,090,009 3%
Fire Health Insurance $2,215,000 5%
Total Fire $8,433,456 20%
Non-uniform Salary $6,363,205 14%
Non-uniform Retirement $259,034 1%
Non-uniform Health Insurance $1,944,000 4%
Social Security $734,000 2%
Total Non-uniform $9,300,239 21%
Life Insurance $73,993 0.0%
Workers’ compensation $1,210,000 3%
Unemployment Compensation $50,000 0.0%
Parking Lot Rental $36,500 0.0%
Total All $35,141,066 81%
Salary
Salaries levels are decided through the collective bargaining process as

governed by Pennsylvania law. The City and its employees attempt to
arrive at a mutually agreed upon rate for wages through negotiations. If
negotiations cannot produce a mutual agreement Pennsylvania law states
that binding arbitration will establish wage rates for employees.
Pennsylvania labor law proscribes arbitrators from considering a

jurisdiction’s ability to pay when arriving at wage rates to be paid by the
jurisdictions. Often, the outcome of the collective bargaining process is
negotiations between the jurisdiction and its employees that do not

City of Lancaster
produce mutual agreement. As a result the arbitrator establishes wage

rates which must be paid by the jurisdiction.
The current labor contract with police employees expires on December

31, 2007. The contract with fire employees expires on December 31,
2008, and non-uniformed employees on the same date in 2009. The base
case financial forecast assumes no salary increase beyond the current
contracts. It is not likely that the City will be able to forego future wage
increases given the binding arbitration provisions of Pennsylvania labor
law.
To provide an idea of the impact of future wage adjustments on cost, we

have developed a scenario based on a 3% annual wage adjustment for
all employees each year through 2012. The 3% rate is selected based on
the fact that the firefighter contract provides for a 3% adjustment in 2008,
and AFSCME receives a 3% adjustment in 2008 and 2009. Table 17
shows the impact of an annual 3% wage adjustment as current contracts
expire and are replaced by new contracts.
TABLE 17: COST OF 3% WAGE ADJUSTMENT
2008 2009 2010 2011 2012

Cost of 3% Wage
$309,125 $786,165 $1,480,038 $2,194,727 $2,930,857
Adjustment
A 3% wage adjustment implemented as current labor contracts expire

would add costs of approximately $7,700,000 over the next five years.
Health Insurance
Health insurance costs for 2007 is projected to be in excess of $8 million,

and includes medical, dental and vision coverage for all active and retired
employees, their spouses and dependents. The City is self-insured for
health-care costs and has negotiated some cost sharing with employees.
Since 2000, the average annual increase in medical, dental and vision
insurance cost has been 18%. For forecasting purposes, the historical
experience since 2000 will be used to estimate the future cost of health
insurance.
Table 18 shows the estimated cost of health insurance from 2007 through
2012.
TABLE 18: ESTIMATED HEALTH INSURANCE COST
2007 2008 2009 2010 2011 2012

Health
$8,116,500 $9,577,470 $11,301,414 $13,335,669 $15,736,089 $18,568,585
Insurance

City of Lancaster
Retirement Cost
The City of Lancaster has its own retirement system for employees. The
City’s annual contribution to the retirement fund is established through
independent actuarial calculation based on an assumption of an 8.5%
return on investment of fund assets. The City contracts with independent
investment advisors to manage fund assets. In 2006, the advisors for the
police and fire pension fund achieved a 7% return, considerably lower
than the assumed return. The fund portfolio is distributed 65% equities,
30% bonds and 5% cash.
The City’s contribution for 2007 for retirement fund cost is $3,124,257. As
noted in the revenue section of the report, the state also provides
financial assistance for retirement cost. The 2007 state aid is estimated to
be $2,385,355, bringing total retirement expenses to $5,509,612. The
actuarial assumption for future City obligations to the retirement fund is
that the state will continue to provide pension aid.
Table 19 displays the actuarial projection of the City’s contribution for the
retirement fund through 2012.
TABLE 19: ESTIMATED CITY RETIREMENT CONTRIBUTIONS
2007 2008 2009 2010 2011 2012

Police Retirement
$1,775,214 $1,775,214 $1,775,214 $1,775,214 $1,775,214 $1,775,214
Contribution
Fire Retirement
$1,090,009 $1,090,009 $1,090,009 $1,090,009 $1,090,009 $1,090,009
Contribution
Non-uniform
Retirement $259,034 $259,034 $285,257 $285,257 $285,257 $285,257
Contribution
Total $3,124,257 $3,124,257 $3,148,480 $3,148,480 $3,148,480 $3,148,480
Workers’ compensation
Lancaster is self-insured for of workers’ compensation funding. From

1994 through 2006 the average annual increase in workers’
compensation funding was 13%, growing from $245,656 in 1994 to
$1,195,000 in 2006.
Applying the historical growth experience to the 2007 adopted budget the
amount for workers’ compensation of $1,210,000 results in estimated cost
as shown in Table 20.
TABLE 20: ESTIMATED WORKERS’ COMPENSATION COST
2007 2008 2009 2010 2011 2012

Workers’
$1,210,000 $1,367,300 $1,545,049 $1,745,905 $1,972,873 $2,229,346
Compensation

City of Lancaster
Operating Cost
The category of expense includes supplies, professional services and

other non-personnel costs necessary for providing City services. The
costs will generally track the inflation rate. The estimate for forecasting
purposes is 3.5%. The factor is derived from the Bureau of Labor
Statistics data showing that the Consumer Price Index for Pennsylvania
has increased at that rate from 2001 through 2005.
The adopted 2007 Budget includes $5,814,673 for operating cost. Table
21 displays the estimate based on a 3.5% annual increase factor.
TABLE 21: PROJECTED OPERATING COST
2007 2008 2009 2010 2011 2012

Operating
$5,814,673 $6,018,186 $6,228,823 $6,446,831 $6,672,471 $6,906,007
Cost
Debt Service
Debt service is the amount paid by the City as interest and principal due
on bonds issued for various purposes. The amount due in the future is the
total of any outstanding bond issues, plus any new bonds that are issued.
The total debt service shown assumes a $10 million bond issue in 2007.
Table 22 shows the debt service obligations of the City through 2012,
payments remain constant despite the new bond issue because other
bonds will be retired.
TABLE 22: DEBT SERVICE OBLIGATIONS
2007 2008 2009 2010 2011 2012

Debt
$2,947,973 $2,950,117 $2,950,117 $2,950,117 $2,950,117 $2,950,117
Service
Countermeasures
City Real Estate Tax
The base case projection is based on the assumption that the Real Estate
Tax rate will not increase from its current rate of $8.82. City Council has
the authority to levy up to 25 mills of property tax for general purposes.
City Council could increase the property tax rate to avoid annual revenue
shortfalls. Table 23 shows the adjustments required in the property tax
rate to balance the annual general fund budget, using the base case
scenario.

City of Lancaster
TABLE 23: REAL ESTATE TAX RATE REQUIRED FOR FISCAL STABILITY
2008 2009 2010 2011 2012

APPRAISED VALUE $1,896,601,224 $1,928,843,445 $1,961,633,784 $1,994,981,558 $2,028,896,244
Tax Rate $9.82 $11.82 $12.82 $13.82 $14.82
Real Estate Tax
Proceeds $18,624,624.02 $22,798,929.52 $25,148,145.11 $27,570,645.13 $30,068,242.34
Base Case R.E. Tax
Proceeds $16,728,022 $17,012,399 $17,301,609 $17,595,737 $17,894,864
Increase in R.E.
Tax Proceeds $1,896,602 $5,786,531 $7,846,536 $9,974,908 $12,173,378
Beginning Balance $11,755,104 $7,881,444 $6,110,285 $4,825,066 $3,724,364
Revenue $41,517,900 $46,269,146 $49,217,110 $52,261,080 $55,403,831
Expense $45,391,560 $48,040,305 $50,502,329 $53,361,782 $56,689,900
S/D ($3,873,660) ($1,771,159) ($1,285,219) ($1,100,702) ($1,286,069)
Ending Balance $7,881,444 $6,110,285 $4,825,066 $3,724,364 $2,438,295
Ending Balance as
17.36% 12.72% 9.55% 6.98% 4.30%
% of Expense
The analysis indicates that Real Estate Tax rate would have to increase
approximately 68% between now and 2012 to maintain a stable fiscal
position. The General Fund reserve would be drawn down gradually from
17% of expenses to 4%. Management Partners is not suggesting that the
City solve its financial crisis by increasing property taxes – alone. It is
likely necessary; however, that increases in the property tax rate will have
to be seen as part of the solution.
The base case scenario does not include an estimate for wage
adjustments for new labor agreements. The additional property tax
requirement to fund new wage adjustments is shown in Table 24.
TABLE 24: REAL ESTATE TAX RATE REQUIRED TO FUND 3% WAGE ADJUSTMENTS
2008 2009 2010 2011 2012

Cost of 3% Wage
$309,125 $786,165 $1,480,038 $2,194,727 $2,930,857
Adjustment
Property Tax Rate
$0.16 $0.41 $0.75 $1.10 $1.44
Required to Fund
Operations Review Recommendations
The operations review has produced a number of recommendations for

ways to enhance revenue and reduce operating cost, and identifies areas
of needed investment, and staff expansion. The recommendations
provide a means to reduce operating cost without reducing service
quality. A summary of the estimated financial impact of the
recommendations is included as Attachment C. The net financial impact

City of Lancaster
of the recommendations over the five-year period of the financial forecast

would be to change the projected $69 million cumulative deficit into
almost an $8 million surplus.
Table 25 summarizes the impact of the management audit

recommendations on the base case financial forecast.
TABLE 25: IMPACT OF MANAGEMENT AUDIT RECOMMENDATIONS ON FINANCIAL

FORECAST
2008 2009 2010 2011 2012

Revenue
Enhancements $7,298,800 $7,298,800 $7,298.800 $7,298,800 $7,298,800
Cost
Savings $3,147,614 $3,147,614 $3,147,614 $3,147,614 $3,147,614
Cost Increases $1,383,000 $1,383,000 $1,383,000 $1,383,000 $1,383,000
One-time Cost $1,422,500 0 0 0 0
Base Case
Beginning Balance $11,755,104 $5,984,842 ($1,572,848) ($10,704,603) ($21,780,213)
Base Case
Revenue Forecast $39,621,298 $40,482,615 $41,370,574 $42,286,172 $43,230,453
Base Case
Cost Forecast $45,391,560 $48,040,305 $50,502,329 $53,361,782 $56,689,900
Base Case
Surplus/Deficit ($3,466,371) ($5,770,262) ($7,557,690) ($9,131,755) ($11,075,610)
Base Case
Cumulative Deficit NA ($1,572,848) ($12,277,451) ($34,057,664) ($69,297,324)
Beginning
Balance $11,755,104 $13,486,762 $14,853,492 $14,646,157 $12,494,967
Adjusted
Revenue Forecast $46,920,098 $47,781,415 $48,669,374 $49,584,972 $50,529,253
Adjusted
Cost Forecast $45,188,440 $46,414,685 $48,876,709 $51,736,162 $55,064,280
Adjusted
Surplus/Deficit $1,731,658 $1,366,730 ($207,335) ($2,151,190) ($4,535,027)
Adjusted
Ending Balance $13,486,762 $14,853,492 $14,646,157 $12,494,967 $7,959,940
The Table shows the amount of the annual revenue enhancement that
would be realized by implementing the revenue enhancement
recommendations. The “Cost Savings” row indicates the potential
savings from implementing the management audit recommendations for
operations modifications. The “Cost Increases” and “One-Time Cost”
rows of the table account for the management audit recommendations
regarding needed staff expansions and investments in technology needed
to support daily operations.

City of Lancaster
The table summarizes the base case forecast that projects a $69 million
cumulative deficit. The impact of recommended revenue enhancements
is shown on the “Adjusted Revenue Forecast” line. The net impact of
recommended cost savings, cost increases and one-time costs is shown
on the “Adjusted Cost Forecast” line. The “Adjusted Surplus/Deficit”
tabulation is the annual financial result of implementing the management
audit recommendations. The “Adjusted Ending Balance” depicts the
status of general fund reserves from year to year.
Table 25 illustrates that implementing all of the recommendations of the

management audit set forth in this report would change a forecast $69
million cumulative deficit over the next five years into a stable financial
situation. Even if all the recommendations with a financial impact were
implemented, the adjusted forecast indicates that there would be an
operating deficit in 2010, 2011 and 2012. However, even in those years it
would not be necessary to increase tax rates because the adjusted
ending balance would still be well within prudent parameters for reserves
decreasing from 30% of forecast expense in 2010 to 14% in 2012. .
However, it would likely be necessary to increase tax rates after 2012 in
order to slow the rate of reserve draw down.
Appraisal Policy
Another factor to pursue on the real estate tax is the policy regarding
appraisals. Lancaster County is responsible for real property appraisal.
The current County policy is to appraise real property every seven years.
And, it also appears that even when appraisals occur, the value falls short
of the true market value.
Table 26 shows the historic County appraised value compared to the true
market value of real property in the City as calculated by the State Tax
Equalization Board for equalizing state aid to school districts.
TABLE 26: COMPARISON OF REAL PROPERTY APPRAISED VALUE TO MARKET VALUE*
Appraised % Change from % Change from % of AV

Value Previous Year Market Value Previous Year to MV
1997 $1,595,387,100 NA $1,634,617,930 NA 97.6%
1998 $1,583,345,500 -1% $1,656,219,142 2% 95.6%
1999 $1,569,946,300 -1% $1,682,686,280 1% 93.3%
2000 $1,557,897,400 -1% $1,697,055,991 1% 91.8%
2001 $1,665,283,200 7% $1,829,981,538 8% 91%
2002 $1,659,177,500 -1% $1,931,522,118 6% 85.9%
2003 $1,675,786,700 1% $2,051,146,511 6% 81.7%
2004 $1,665,370,000 -1% $2,194,163,372 7% 75.9%
2005 $1,809,189,600 9% $2,203,641,412 1% 82.1%
*Source: State Tax Equalization Board

City of Lancaster
Table 26 illustrates that since 1997 the disparity between appraised value
and market value has been getting greater every year until 2005. If the
appraisal policy was to use true market value as the basis for real estate
taxes, the City would realize an additional $2.7 million in 2008 at the
same tax rate.
A policy of using true market value as the basis for real property appraisal
is certainly more transparent than the current County policy.
Recommendation 1: Meet with Lancaster County

officials to develop a policy for appraising real
property at true market value.
Payment in Lieu of Taxes (PILT)
The value of tax-exempt real property in the City is $556 million, or about
23% of the total appraised value of real property in the City. Some
owners of tax-exempt real property have been making voluntary
payments in lieu of taxes. The average annual revenue from PILT since
1994 has been approximately $373,000. In 2006, Lancaster General
Hospital (LGH) agreed to a new PILT of $1.2M per year – the equivalent
of 98% of all revenue received by the City for PILT. If tax exempt
property owners (including Lancaster County, Lancaster City Schools and
Franklin & Marshal College) paid the current levy amount of $8.83 per
thousand, the annual revenue would be approximately $4.9 million. If the
City could negotiate 33% rate for PILT payments revenue would be $1.6
million. City staff could meet with the largest tax-exempt property owners
in Lancaster and negotiate a formula for PILT so that revenue from this
source is more reliable, predictable and appropriately accounts for the
service burden of these institutions.
Recommendation 2: Develop a formal policy for

payments in lieu of taxes with large tax-exempt real
property owners.
Charges for Service and Fees
The City anticipates collecting $7,255,000 in 2007 from charges for police
service, public safety and public works fees, and regulatory and housing
licenses. The number represents approximately 18% of expected General
Fund income.
Fees and charges for service are used to pay costs where individual and
specific users can be identified as beneficiaries of the service. It is sound
local government practice to have a policy of full cost recovery for such
fees and costs, and to adjust them annually as the cost of doing business
increases. The base case scenario assumes these revenue sources will
be adjusted annually for full cost recovery.

City of Lancaster
Recommendation 3: Establish a full cost recovery

policy for fees and charges for police, public safety,
public works, regulatory and housing services.
Recommendation 4: Develop full cost recovery

formulas for fees and charges for police, public safety,
public works, regulatory and housing services.
Recommendation 5: Adjust fees and charges for

service rates annually during budget preparation.
Utility Revenue Transfers
The City receives substantial annual revenue by transferring fund

balances from the water and sewer funds. As owner of the utilities, it is
appropriate for the City to receive a return on its investment in operations.
In 2007, the budget projects transferring $2,007,128 from water and
sewer fund balances to the General Fund.
The City also, appropriately assesses the utility funds a service charge for
administrative services such as human resources, legal and financial
support. The amount transferred for administrative purposes is based on
the indirect cost formula used by the Federal Government for valuing
administrative services for grants accounting. In 2007, the amount
transferred for administrative support cost from general fund agencies is
$1,014,949.
The current structure of utility ownership may not be giving the City its
best return on investment. The City should acquire expert assistance to
determine whether a different form of ownership or even outright sale of
the utilities would produce a better return than currently experienced.
Recommendation 6: Analyze utility ownership options

to determine how to maximize return on investment.
Expenditure Controls
Management Partners conducted an audit of City operations to determine

what opportunities may exist for realizing cost savings. Any such
opportunities that are identified and implemented can be incorporated into
the financial model being delivered as another element of the project.
Health Insurance Cost
The single largest increase in cost over the next five years is projected to
be in health insurance. Since 2000, average annual growth in the cost
has been 18%. At the historic rate of increase, health insurance cost will
increase from $8 million to $18 million a year; cost a total of $76 million

City of Lancaster
and represent 26% of total General Fund expense between 2007 and
2012. The increase mirrors national experiences on health insurance and
the cost of employee health care.
The City has initiated some actions designed to defray and/or reduce
health insurance cost. The current labor agreements with AFSCME and
the International Association of Fire Fighters (IAFF) include cost sharing
provisions between the City and its employee groups. For instance, as of
January 1, 2007, all new AFSCME employees pay 1% of their salary
toward health insurance cost. Firefighters are paying approximately $195
a year for health insurance. The steps are in the right direction, but are far
too modest to make an impact on health-care cost. Contributions should
be based on a percentage of premium basis rather than a set dollar
amount.
It is usual for parties to rely on the Consumer Price Index (CPI) in

negotiations regarding wage rates. The CPI includes a factor for
increased cost of health care/insurance. If employees receive a cost of
living wage adjustment (COLA) comparable to the CPI, it would be
equitable to also adjust the cost sharing for health insurance cost
increases based on the CPI factor for health care cost. For example, if the
CPI is 3% and employees receive a 3% COLA, and the CPI factor for
health insurance represents 15% of the CPI adjustment, the employee
share of health insurance could equitably be increased by 0.45% of their
salary (15% of 3% is 0.45%).
Recommendation 7: Develop a new basis for sharing

the increasing cost of health insurance with
employees.
City officials should initiate discussions with other municipalities and state
associations to explore opportunities for creating risk-sharing pools that
could dampen the growth rate in health insurance expenses. Similar
pools have proven to be valuable techniques for cost control.
Recommendation 8: Initiate discussions with other

municipalities and state associations to create risk-
sharing pools to control health insurance cost
increases.
Salary Adjustments
Based on 2007 salary costs, each 1% adjustment in employee wages

costs approximately $218,000. The City does not have ultimate control
over salary adjustments, since binding arbitration is an element of the
collective bargaining process. The City should analyze strategies that
focus on non-economic ways to arrive at agreement at the bargaining
table, such as no layoff provisions.

City of Lancaster
Capital Budget
In March 2007 the City issued $125,000,000 of bonds to implement it’s

newly adopted (and first ever) Capital Improvement Program. To develop
the CIP, each Department was directed to identify capital needs projected
over a five-year period. The single largest project ($90 million) included in
the CIP is the building of two new membrane filtration water plants that will
replace 1930s and 1950s era plants that currently provide drinking water
to the City and several surrounding suburban municipalities. The CIP also
included several million dollars of additional water system projects, $13
million in sewer system projects and $17 million for General Fund projects.
While the implementation of the CIP is a good start, there must be an

ongoing effort to identify, plan and provide funding for the City’s capital
needs. A thorough inventory of capital assets, the remaining useful life of
those assets, and replacement costs estimates are important elements of
a capital plan. Lancaster should continue to further refine its multi-year
capital planning and incorporate a multi-year capital improvement plan into
its budget process and update it each year within the annual budget
process.
Conclusion
The City currently enjoys a balanced General Fund Budget, due primarily
to a $15 million reserve; however, close to $3.5 million of the reserve is
being used to balance the 2007 budget. The structural deficit in the
General Fund grows each year, since General Fund revenue is growing
at a 2% annual rate while expenses are growing between 5% and 6%.
The City levies the maximum amount allowed by law for all taxes except
the real estate tax. Tax revenue accounts for 58% of General Fund
revenue. The City is well within the maximum property tax rate at $8.82,
compared to the $25 cap; however, the low appraised value to true
market value ratio, currently 82%, means that each additional dollar of
real estate tax rate levied produces only $1.8 million in revenue instead of
the $2.2 million it would produce at 100% of market value. Real estate
taxes would have to increase by 68% over the next five years to stabilize
the City’s financial picture, which is clearly not a realistic option. The
property tax is not the only answer to stabilizing the City’s financial
situation – but should be seen as part of a complex solution that includes
implementing recommendations made in the management audit.
Management audit recommendations are a significant step toward long

term fiscal stability. Those recommendations could change a cumulative
$69 million deficit into a $10 million surplus over that same period of time.
Selling or changing the form of ownership of the water and sewer utilities
could provide some relief to the financial strictures facing the City.
Changing the ownership structure could boost annual income or provide a

City of Lancaster
significant one-time revenue source that could be used to postpone the

day of reckoning for years into the future. Having experts study the utility
ownership options is an important undertaking for the City.
The most important study area on the expense side of the ledger is health
insurance. The historic 18% growth rate of a multi-million dollar expense
will have a crippling effect on finances if not brought under control.
The City’s opportunities for economic development strategies for

changing the stagnant revenue pattern will be driven by the fact that
Lancaster is essentially built out. As a result, acquisition and clearance of
development sites will be crucial activities.
Strategically replacing high density, low value housing with high density,
high value housing must be the centerpiece of the development strategy.
It would boost revenue from real estate tax and the earned income tax
(which is received by the jurisdiction of residence), the two largest
sources of general fund revenue.
In short, controlling health insurance cost, raising real estate tax rates,
changing the County policy on real property appraisal, utility ownership
structure analysis, and acquisition, clearance and construction of high
density-high value housing are the keys to achieving financial stability.

City of Lancaster
CITY OF LANCASTER ECONOMIC DEVELOPMENT

STRATEGY AND PLAN
The development of a stable, growing employment base is the key to the

City’s financial picture. Long-term financial stability within the City of
Lancaster is dependent in part upon its economic viability, including
attracting more middle- and upper-income residents while providing the
ideal urban experience for visitors. An approach for creating a unique,
inviting urban destination is presented in the City of Lancaster Strategic
Plan.
The City’s Strategic Plan clearly articulates a vision and focus area
objectives that are based on leveraging the historic assets of the City.
Integral to the plan are redevelopment and revitalization initiatives
throughout the City. It is an aggressive strategy that includes 55
outcomes -- labeled success indicators -- that will drive the City’s
redevelopment and revitalization efforts.
Envisioned to span only three years, the Plan will create a City that
maximizes its historic charm and large number of historically designated
properties. The Plan also promotes new development opportunities in arts
and entertainment, a customer-centered culture, housing, mobility,
neighborhoods, public amenities and ambience, and the retail sector.
Department of Economic Development and Neighborhood Revitalization

staff will be responsible for the outcomes associated with many of the
indicators. In other cases, it is likely that Economic Development will have
a supporting role in implementation.
The success indicators clearly specify work plan goals and project
priorities for the Economic Development and Neighborhood
Revitalization. The table below includes the Strategic Plan indicators and
projects that directly relate to investment and development in the City of
Lancaster.

City of Lancaster
TABLE 27: STRATEGIC PLAN INDICATORS FOR ECONOMIC DEVELOPMENT
Focus Area Success Indicator

Incentives to fast track the development of live
entertainment venues are identified, created &
Arts and Entertainment implemented
50,000 additional square feet of space is available
for artists’ studios
300 new market-rate, owner-occupied housing units
are available for occupancy by 2011
Financial incentives are in place to attract high-
density housing developers and contractors
Provide convenient parking for high-density parking
Secure property to provide development
Housing
opportunities for downtown housing
Implement programs to encourage the conversion
of single-family rental properties to owner-occupied
units
Reduce the preparation and transfer time for
properties in the Vacant Property Program
Increased parking in neighborhoods
Systematic exterior and interior inspection of rental
Neighborhoods
units once every four years
Declining property code maintenance violations
Public Amenities & Downtown façade improvements, enhancements
Ambiance and restorations
Retailers are opening in targeted locations
Gaps are closed between retail clusters and critical
Retail Sector mass is created
Basic retail is in place to support the opening of the
Convention Center
Each of the strategic directions and success indicators offers a direct or

indirect link to current or planned initiatives which should be part of a
larger City-wide economic development strategy. While the City has
developed strategies for achieving the ideal urban experience, a
comprehensive plan for redevelopment and revitalization for the City is
needed.
The City of Lancaster currently has no written economic development

plan but several efforts underway which will result in an overall plan to
guide near and long-term economic developments initiatives to support
the City’s vision for its residents and visitors. When completed, the
studies should provide a clear vision for new development and/or
rehabilitation.
At present, the City is developing planning studies for the Southwest

Neighborhood and the Northeast Neighborhood. The City is also
partnering with Lancaster County to create a countywide Economic
Development plan that is scheduled for completion in 2008. All plans
currently being developed should clearly address the success indicators
spelled out in the City of Lancaster Strategic Plan.

City of Lancaster
In 2005, a Mayor’s sub-committee reviewed existing economic

development and revitalization initiatives and opportunities underway in
the City. The sub-committee advanced 15 recommendations for
strengthening development and redevelopment efforts in the City, and
provides a starting point for realizing the Lancaster Strategic Plan. The
status of these recommendations is detailed in Management Partners
organizational review of the Department of Economic Development and
Neighborhood Revitalization.
Economic Development Tools and Incentives

The Strategic Plan, market and feasibility plans should provide targeted
development strategies for economic growth by creating new market rate
and high-end housing which support major development initiatives
downtown, as well as in designated incentive and historic areas. While
the City is essentially “built out,” there are numerous opportunities for
continued redevelopment – as evidenced by the number of projects that
recently were completed or are on the drawing board.
The recently completed Clipper Magazine Stadium, the new Arts Hotel
and other key projects that are in progress or outlined on the City’s map
of major Economic Development Projects are evidence of the
development potential that exists within the City.
Attachment D includes a map of Major Economic Development Projects

for Lancaster. The map locates 51 projects: 13 are completed, 23 are in
various stages of progress, and 15 that are planned. Most of these
projects are within or adjacent to several designated redevelopment
incentive areas in Lancaster:
• The Keystone Innovation Zone, in the City’s northwest quadrant

• The Downtown Investment District, running along King and Queen
Streets in the heart of the City
• The Elm Street North and South corridors
• Keystone Opportunity Zone, in the southern portion of the City
The development areas provide a focus for current, proposed and future
projects.
Current and proposed development projects are generally dispersed

along Queen Street, a major north/south corridor in Lancaster, and
concentrated within the City’s economic development incentive zones.
The Keystone Innovation Zone, the largest of the incentive districts,

encompasses most of the northwest quadrant of the City, one of two
designated Elm Street Program areas and a portion of the Downtown
Investment District. The zone includes Franklin and Marshall College,

City of Lancaster
Lancaster General Hospital, the Lancaster General College of Nursing

and Health Sciences, and the Pennsylvania College of Art and Design.
Pennsylvania’s Keystone Innovation Zones offer tax credits for emerging

businesses to promote technology transfer activities, entrepreneurship,
economic and community development, and talent retention. The
businesses often are located in proximity to institutions of higher learning,
and hope to build a stronger “creative class.”
The Elm Street North neighborhood and the Elm Street Historic southeast
neighborhood are part of the state of Pennsylvania’s Elm Street Program.
Created in 2004, and modeled after the Main Street Program, Elm Street
area incentives are used to strengthen historic neighborhoods through
programs to improve property values and neighborhood image, while
addressing safety concerns.
The Elm Street Program has a five-point approach to neighborhood

redevelopment that promotes initiative to address: “clean, safe and green;
neighbors and economy; design, image and identify; and sustainable
organization.” The Elm Street North neighborhood program is
administered by the James Street Improvement District, a non-profit
community economic development consortium established in 2003. The
Elm Street North Historic Southeast neighborhood program is
administered by the Inner-City Improvement Group.
The Lancaster Downtown Investment District (DID) is a special

assessment area which encompasses the City’s central business district.
The DID began operation in 1992 and provides a funding source for
programs to support business owners and residents. The Lancaster DID,
includes some 400 businesses and 540 properties and is funded primarily
through property tax assessments, as well as funds secured from grants,
cash, marketing and in-kind donations. The fiscal year 2007 assessment
rate of 2.15 mils will be increased every two years for a six-year term that
extends from 2007 to 2012. The assessment base is set annually.
Estimated funding for the DID, based on proposed assessment rates, is
shown in Table 27 below.
TABLE 28: DID TOTAL ASSESSMENTS*
Funding Year Proposed Mil Rate Total Assessment

2007 & 2008 2.15 430,000
2009 & 2010 2.21 442,000
2011 & 2012 2.23 446,000
* Based on 2006 assessment base and average assessed value of $200,000
DID funding is used to promote and implement safety, streetscape,

quality of life, marketing and business retention, and recruitment within
the District. In May 2007, the James Street Improvement District was
designated to carry out DID administration. It will ensure a higher degree
of coordination in marketing, programming and redevelopment initiatives
between the DID and the contiguous James Street Improvement District.

City of Lancaster
In addition to the Keystone Innovation Zone, Lancaster also has a

designated Keystone Opportunity Zone (KOZ). The KOZ is located at the
southern end of the City, and provides tax benefits for property, residents
and businesses within the Zone.
Besides the economic development incentive zones in the City, two

historic districts provide opportunity for Federal Government Preservation
Tax Credits and Rehabilitation Tax Credits to qualifying properties.
Economic Development Opportunity Areas

Growing Together, the recently adopted joint comprehensive plan for
central Lancaster County, identifies and recommends new development
on sites labeled growth opportunity areas. While there are many small-
sited areas for growth, Growing Together identifies 36 large parcel areas
(40 acres or larger) for future development. Of these parcels, two are
located in the City of Lancaster, and many growth opportunities are
located west of the City.
The designated Lancaster growth opportunity areas are currently planned

for the following types of development:
• The former Armstrong World Industries site, located in the

northwest quadrant of the City, is planned for institutional uses
and development compatible with surrounding college, office and
medical/hospital related uses.
• Sunnyside Peninsula, located in the southeast quadrant of the
City, is planned for new residential development.
The map of Economic Development projects identifies housing

developments that are planned or underway, in addition to newly
developed housing developments for market-rate housing. The
development and redevelopment of housing should continue to be a
priority. It should be developed in the areas of the City that offer a mix of
incentives, as well as in areas that are adjacent and contiguous to
redevelopment nodes within the KIZ, such as the Lancaster Amtrak
Station, Clipper Stadium, and Franklin and Marshall College.
Most of City is zoned for single-family residential use of varying density;

however, there are a large number of rental dwelling units within the City.
Of the 23,021 total housing units (2000 Census data) in the City of which
only 20,940 are occupied. Of the 20,940 occupied units, it is estimated
that approximately 11,199 are rental units and 9,741 are owner occupied.
Increasing the inventory of multi-family and rental units must support the
strategic housing goal of providing a variety of quality, market-rate
housing options in the City. To achieve the housing goal, the Department
of Economic Development and Neighborhood Revitalization should

City of Lancaster
develop and promote ways to achieve greater homeownership in the City.

Promotions would ideally encourage home ownership among first-time
homebuyers and offer incentives to that end. The Department should also
evaluate ways in which zoning and other land-use incentives can be used
to support the conversion of multi-family units back to single-family use.

City of Lancaster
ADMINISTRATIVE SERVICES
The Department of Administrative Services provides management

support for all City departments in areas of finance, budget, accounting,
procurement, revenue collection, human resources and information
systems. The Department also manages the City's community
involvement, insurance, fringe benefits and debt service budgets.
The Department of Administrative Services has four bureaus: Accounting,

Procurement and Collection, Human Resources and Information
Technology, as shown in Figure 2 below.
FIGURE 2: ADMINISTRATIVE SERVICES DEPARTMENT ORGANIZATION
The Lancaster Administrative Services Department staffing and budget is

shown in Table 28 below.
TABLE 29: ADMINISTRATIVE SERVICES DEPARTMENT 2007 STAFFING AND GENERAL

FUND BUDGET
Fiscal Year 2007

Bureau* Staff Positions Budget
Director 1 $135,100
Accounting 4 $274,423
Procurement & Collection 11 $183,520
Human Resources 4 $219,449
Information Technology 5 $434,129
Total 25 $1,246,621
*Division names are as shown in City documents for this budget year.
The Department has 25 full-time equivalent positions and a budget of

$1,246,621. Funding for the department is generally derived from the
City’s General Fund, but the Water, Sewer and Solid Waste Funds pay

City of Lancaster
for a substantial portion (approximately $304,000) of the staff in the

Procurement and Collections Bureau (commonly called the Tax Office).
Considering funds from all sources, the Procurement and Collections
budget is $682,750.
In addition to the direct General Fund allocation, the Department

manages other accounts for the City, which brings the total annual
operating budget to $8.5 million.
The other accounts and the funding amounts are shown below in Table
29 below.
TABLE 30: ADMINISTRATIVE SERVICES MANAGED ACCOUNTS
Fiscal Year 2007

Account Budget
Community Involvement $435,867
Insurance $599,800
Fringe Benefits $3,182,527
Debt Service $2,954,473
Total $7,172,667
The Community Involvement Account contributes to ambulance service

costs for residents, supports the Lancaster Inter-municipal Committee,
pays League of Cities dues and supports the Public Library, Recreation
Commission and Human Relations Commission. The Insurance account
pays for an insurance package plan and public officials’ bond. Fringe
benefits include medical, dental/vision, Social Security, life insurance,
pension contributions, unemployment and workers compensation, and
parking lot rental. Debt Service covers principal and interest on
outstanding debt, plus a paying agent fee. These four accounts, added to
the direct General Fund expenditures, total $8,419,288.
During the past five years, staffing levels within Administrative Services
have remained relatively consistent. Table 30, below shows the staffing
levels within administrative services from 2003 to 2007.
TABLE 31: ADMINISTRATIVE SERVICES DEPARTMENT STAFFING, 2003 THROUGH

2007, ALL FUNDS
2003 2004 2005 2006 2007

Director 1 1 1 1 1
Accounting (1) 5 5 5 5 4
Procurement & Collection
11.5 11.5 11.5 11 11.5
(2)
Human Resources (3) 4 4 4 3 4
5+1 5+1 5+1 5+1
5
Information Services (4) Contractor Contractor Contractor Contractor
26.5 5 26.5 26
25.5
Total 1 Contractor 1 Contractor 1 Contractor 1 Contractor

City of Lancaster
Notes:
(1) During 2006, a position in Accounting was eliminated, and a staff person was
transferred to Procurement and Collections to create a Customer Service
Supervisor position in the Treasury Office.
(2) Some positions in the Treasury Office are funded in part in the Water,
Wastewater and/or Solid Waste and Recycling Fund budgets, based on the
amount of time the staff in those positions spend doing work (i.e. billing,
customer service, etc.) supporting those funds. In 2006, the Mail Clerk was
downgraded from full-time to a part-time position. This change was reversed in
2007, which accounts for the reduction in part-time positions from 2006 to 2007.
The Customer Service Supervisor position was created in late 2006 to improve
customer service in the Treasury Office. This move coincided with the
implementation of the City’s Single Hauler solid waste and recycling collection
program that added new billing and collection duties in the Treasury Office. Also
in 2007, the Delinquent Accounts Clerk position was eliminated. Some of the
duties of this position were automated with the assistance of Information
Services and others were absorbed by the Customer Service Supervisor.
(3) In 2006, the City Hall receptionist position was moved to the Department of
Economic Development to provide support services. This move was reversed in
late 2006 and reflected in the 2007 budget as an increase in the HR staffing from
3 to 4.
(4) From 2003-2006, the Information Services Bureau operated with 5 staff and one
full-time contractor. In late 2006, the Programmer II position was eliminated;.
however, the contractor came on board as a full-time employee in early 2007.
That eliminated the Contractor position and reset the IS staffing level at 5 full-
time employees.
Table 31 below shows the relative size of the administrative staff of

several jurisdictions in the state. It is common to look at human resources
staffing in the context of the number of FTEs in an organization. Using
such a comparison, we see the City of Lancaster is very lean, having one
HR staff person for about every 200 employees, while the other
jurisdictions have one staff person for every 100 to 140 employees.
When comparing the overall administrative staff of a jurisdiction, we often

look at the number of employees relative to the population. In this regard,
the City has one administrative staff person for every 2,500 residents,
while the City of Reading has one HR staff person for every 1,700 people,
and the City of Altoona has one staff person for every 7,000. Note that
neither the Cities of Altoona nor Easton have a separate tax office.
TABLE 32: ADMINISTRATIVE SERVICES 2006 STAFFING, POPULATION AND

EMPLOYEES OF LANCASTER AND OTHER JURISDICTIONS*
Lancaster Altoona Easton Reading York

Human Resources 3 2.5 2 5 3
Accounting/Finance 5 3.5 8 18 7
Tax 8 N/A N/A 14 3
IT 5 1 1 9 4
Purchasing 1.1 N/A 1 1 0
Total 22.1 7 12 47 17
City Population 56,000 49,000 26,230 81,207 45,000

City Total FTEs 624 275 211 731 345
*From survey responses

City of Lancaster
The Administrative Services Department have identified nine objectives to

accomplish in 2007 as follows
Improve customer service in the Treasury Office
Accept credit card payment via the internet
Invest in a new customer service-oriented telephone system
Implement Early Intervention Program
Establish M/WBE contracting and purchasing program
Implement Capital Improvement Program
Assess technology capabilities of all City departments; develop a
plan to ensure that all departments have the equipment and
training they need
Establish an Organizational Development and Employee Training
Program
Expand the Employee Wellness Program
The Governmental Accounting Standards Board (GASB) recommends

performance measures as a best practice for local government. The lack
of an objective standard makes it more difficult to determine which
employees provide superior services and which ones do not. Whether
tracking how many tax returns are processed, or how many cash receipts
are reconciled, or any other defined and quantifiable task, measuring
performance helps define an internal benchmark (or standard) that is
used to gauge satisfactory work. Without performance measures,
managers do not have an objective tool to use when evaluating
employees. Finally, accurately assessing workflow processes is
problematic without good, reliable data on past and current performance.
Each bureau in the Administrative Services Department should begin

tracking data on key functions for each employee. The indicators should
include the number of items processed, the time it takes to process each
item, the error rate during processing, etc. Although it takes time to
develop and record consistent measures, the payoff will be realized in
management’s enhanced ability to make informed and objective
decisions.
Recommendation 9: Define internal benchmarks and

implement the use of performance measures in the
Administrative Services Department as a way of
managing and tracking its work. Performance measures
can help assess the efficiency of the Administrative
Service Department’s staff and gauge the effectiveness of
the department’s current workflow. Suggested measures
are attached in Attachment E. The need for performance
measures is a City-wide issue and is reiterated throughout
the report.

City of Lancaster
Accounting Bureau
The Accounting Bureau's major responsibilities include recording the

City's financial activity, maintaining the centralized accounting system,
payroll preparation for all City employees, processing payments for
citywide purchasing and issuing required financial statements. The
Department also prepares and monitors the City's budget.
The Accounting Bureau reviews an estimated 20,000 vouchers annually

and disburses more than 9,000 checks each year. The Bureau of
Accounting processes payments for all of the City’s fund types and
account groups. In addition, the Bureau prepares payroll for more than
600 employees, and processes benefit payments to 220 uniformed
retirees.
The Bureau maintains records for the City's General Fund, three
Enterprise Funds (Sewer, Water, and Sanitation) and nearly 40 Capital
Project, Special Revenue, and Trust and Agency funds. The Accounting
Bureau prepares billings and adjustments of about 1,000 annual invoices,
including those for various police services, bulk sewage and industrial
waste surcharge.
The Accounting Bureau prepares monthly financial statements for

presentation at Finance Committee meetings, posts monthly journal entries,
and reconciles bank statements and general ledger accounts on a monthly
basis. The Bureau also provides work papers to the independent auditors.
In accordance with GASB 34, the Accounting Bureau is responsible for

maintaining an accurate inventory of the City’s fixed assets and
infrastructure inventory. Within the next year, the Bureau will begin to
implement GASB Statements 43 and 45. The statements involve the
measurement, recognition and reporting of the expense and related
liabilities of post-employment benefits other than pensions, such as health
care and life insurance. A biennial actuarial valuation will be required.
The deadline for compliance with GASB 43 and 45 is December 31, 2007
and 2008, respectively.
Findings
Accounting has done an excellent job of documenting its work processes

and has all of its policies on the City’s intranet. Policies pertinent to each
desk can be found at the desks, with notations to facilitate being able to
back one another up when there are absences.
The City uses an aging Financial Management system on an IBM AS400

mainframe platform. The system is commonly known as the “New World”
system. The Bureau has kept the changes to the New World system to a
minimum. Because the modules have few modifications, they are working
well for the office. The Bureau seems to be more astute in the use of its

City of Lancaster
computer systems and programs than many others within the

organization.
Cash receipts need to be handled better. There is evidence that cash is

not being deposited every day by all units of government that take in
cash. It is costing the City interest earnings.
Recommendation 10: Establish a procedure that

requires all units who receive payments or fees to
deposit receipts daily. It will increase interest earnings for
the City and reduce the potential for theft or loss of money.
The City is still using a manual time card system for employees. The City
should invest in electronic time recording equipment that could be tied to
an employee’s identification badge.
Recommendation 11: Replace the manual time card

system for employees with one of the several
electronic timekeeping systems on the market. Such a
system should be able to electronically transmit time data
to Accounting for payroll purposes. Employees would
simply enter their employee code or swipe their badges at
the beginning and end of their shifts and the system
automatically calculates time worked for each hourly
employee. An electronic timekeeping system will
significantly reduce the amount of time staff will need to
process payroll, and it reduces the chances of human
error.
It has been reported in focus groups that departments do not have access
to the general ledger. The Accounting Bureau confirmed that all
employees who need access should have inquiry capacity into their own
department’s general Ledger. The need for access is determined by the
director of each department. Perhaps there are some City employees that
do not realize they have access. While access to the general ledger must
be limited as a necessary control, all departments have access to the
general ledger for their department.
Recommendation 12: Provide departmental training in

how to access the general ledger. Operational staff tend
to take numbers more seriously and behave more
responsibly when they are able to see the on a regular
basis. It also helps to keep the numbers more error-free
when those beyond the accounting folks are looking at
them frequently.

City of Lancaster
Procurement and Collection / Treasury Office
The Bureau of Procurement and Collections manages approximately

285,000 utility, tax and other accounts for City property taxes, per capita
taxes, Water & Sewer usage, Sanitation & Recycling, and other services.
Account management responsibilities include data entry, billing, collection
and documentation of payments, and pursuing collection of delinquent
accounts. Table 4 shows the number of accounts, an estimate of the
number of transactions undertaken in each account type and the percent
of accounts that are delinquent. It is estimated that the Bureau processes
almost 400,000 transactions per year, including sending out bills and
delinquent notices, and processing payments, as shown in Table 3.
Each year, Bureau personnel respond to more than 70,000 telephone

inquiries and process some 100,000 payment transactions made via mail
delivery or by walk-in customers. The Bureau of Procurement and
Collections is responsible for securing payments for an estimated 60,000
parking tickets each year. The Bureau also operates the mailroom,
processing all incoming mail and nearly 6,000 pieces of outgoing mail each
week.
TABLE 33: ADMINISTRATIVE SERVICES MANAGED ACCOUNTS
Estimate of Percent of
Number of Transaction Accounts
Type Accounts Estimate Delinquent
Water & Sewer Bills 182,056 218,945 17.0%
Real Estate Bills 17,675 22,266 8.8%
Trash Bills 17,000 73,000 23.5%
Police Warning Notices 33,494 33,494 N/A
PCT Bills 26,249 34,860 32.8%
Miscellaneous Bills 7,606 7,606 N/A
In-lieu of Notices 615 615 N/A
Total 284,695 390,786
Finally, the Bureau provides coordinates purchasing for all City Bureaus and
administers the formal City contracts program. Large and major purchases
are presented to this Bureau for input on vendor sourcing, competitive
bidding and compliance with the Third Class City Code. Under that code, all
purchases in excess of $10,000 are formally bid.
The Lancaster County Tax Collection Bureau (LCTCB) handles

Emergency & Municipal Services Tax collection on behalf of the City.
Effective January 1, 2005, the City of Lancaster renamed the
Occupational Privilege Tax the Emergency & Municipal Services Tax
(EMST). The tax, increased from $10 to $52, is levied against individuals
who are employed within the City’s corporate limits during the calendar
year. It is intended that no one individual pay more than $52 per year for
the Emergency and Municipal Services Tax. Each individual with more
than one occupation will pay the tax to his/her principal employer.

City of Lancaster
Findings
As indicated in Table 32 above, delinquent accounts make up a very high

percentage of certain account types. The accounts require substantially
more work on the part of Bureau staff.
Recommendation 13: Conduct a study of various

account types to determine the causes of delinquency
and find ways to reduce the number of delinquent
accounts. A study has the potential to reduce workload
and improve customer relations.
Given the high level of delinquencies shown above, and the reported poor
customer service provided by the Tax office, the City might want to
consider contracting for all collection services to the Lancaster County
Tax Collection Bureau or some other regional collection agency. We
heard complaints from employees about poor customer service in this
unit, as well as from other sources. While service seems to have
improved recently with the addition of a supervisor, a regional agency
might lower costs.
Recommendation 14: Evaluate the fiscal and customer

service benefits of out-sourcing all collection services
to a regional agency.
The City implemented a new trash collection program last year in very
quick fashion. The program greatly reduces the number of trash haulers
operating in the City and will eventually lead to only one service provider.
The program has been a positive one for citizens in general, but there
have been a few customer service crises trying to develop a good billing
system in such short order. Billing problems still exist, but the bugs are
being worked out. The trash billing process has been documented in a
process map included as Attachment F. It may take some time because
the City has very limited programming staff. Information Services has only
two programmers for the City.
The Customer Service representatives have a very challenging job. They

see customers only when there is a perceived or real problem with an
account. If there were a restricted terminal, citizens could look up
information on their accounts themselves, and this could be online.
Recommendation 15: Provide a restricted use

computer or kiosk in the waiting area of the Tax Office
for citizens to look up information about their
accounts. Ultimately, the information should be available
online.

City of Lancaster
During the last year, Collections has begun accepting credit card
payments. It is a big step forward, and one of this year’s objectives is to
accept credit card payments online.
Tax Collection staff must often manually enter written tickets because
Police staff do not have enough functioning hand-held computers for all
parking enforcement officers to use. It also can happen when a citizen
comes to the office before the tickets can be downloaded.
Recommendation 16: Provide all Parking Enforcement

Aides with functioning hand-held computers to
minimize the number of tickets that have to be
manually entered. Adequate spares and service contracts
also should be obtained to assure the equipment is
available.
When manually entering data in the Tax Office, the clerks enter only
those fields needed for their purposes, resulting in incomplete information
being available.
The Tax Office counter may be the first or only time citizens or business
owners deal with City employees face-to-face. Even by implementing a
variety of customer-friendly payment options, Tax Office staff will still deal
with citizens and business owners who must pay taxes, fees or fines.
Such activities are generally not thought of as pleasant. Staff reported

that customers at the counter sometimes become belligerent or abusive,
making the work atmosphere tense; however, according to the
Accounting & Treasury Manager, no formal customer service training has
been provided to front-line Treasury staff. It is important for front-counter
staff to learn techniques that can help defuse potentially confrontational
situations while still providing good customer service.
Recommendation 17: Provide customer service

training specifically designed for Tax Office staff to
help them cope with unhappy or hostile customers,
and situations in ways that reflect positively upon the
City.
The Purchasing Coordinator helps other City departments procure goods

and services. The Coordinator works with other departments to develop
bid specifications; advertise and seek bids; review and award bids; and
maintain written records of bids, and bid awards. The office has an
objective to start a women and minority business purchasing and
contracting program for the City. The Coordinator is responsible for
monitoring City compliance with all applicable federal, state and local
rules and regulations related to purchasing.
The purchasing procedures used by the Purchasing Coordinator appear

sound. The purchasing process has been documented in the process
map in Attachment G. The Purchasing Coordinator handles written price

City of Lancaster
quotes for purchases over $10,000. Purchases over $10,000 (that are not
for professional services) are advertised and require formal bids
responses to be submitted. Vendors must submit sealed bid responses
and also must post a bid surety to be considered for bid award. Written
records are maintained for each bid.
Recommendation 18: Implement an online bidding

process for purchasing goods and services. Online
bidding – sometimes known as “reverse auctions” –
requires computer network capability to host auctions,
receive and monitor bids, and award bids. Staff training
also may be necessary to ensure comfort with the online
bidding process. Alternatively this service could be
outsourced and the City would pay an on-line auction
service a percentage of each transaction.
Users entering purchase orders/requisitions in the New World purchasing

module must send a separate email to notify their supervisor that a
purchase is awaiting approval. In some cases, users have forgotten to
remind or email their supervisor, causing purchases to be held up for long
periods of time.
Recommendation 19: Configure the New World

software to use Lotus Notes to notify staff when a
purchase has been entered and is awaiting their
approval. It will help ensure that all purchase requests get
acted upon in a timely fashion.
Bureau of Human Resources
Lancaster Bureau of Human Resources is the central office providing

administrative support to all City employees about personnel
matters. According to the 2007 budget, the City employs 424 full-time and
50 part-time employees who are funded by the City’s General Fund. The
Bureau of Human Resources recruits new employees and processes
newly employed or retired personnel. Extensive record keeping is
necessary to track benefits and personnel actions.
In addition to maintaining individual personnel record, the Bureau is

responsible for administering and providing information on the pension
benefits, payroll changes, life and medical insurance benefits, workers’
compensation, deferred compensation and salary compensation.
Finally, the Bureau manages labor relations, including labor contract

negotiations, labor contract administration, and grievance procedures with
two uniformed unions and one non-uniformed union. The Bureau ensures
adherence to labor contract provisions and uses a grievance procedure to
resolve disputes.

City of Lancaster
The hiring process is rather straight-forward and is diagrammed in

Attachment H. One of the interesting components of the Lancaster hiring
process relates to the City’s “post in” policy. Under the AFSCME
contract, all job openings must be made available to AFSCME employees
internally for two weeks before the vacancy is publicly posted.
Staffing
Management Partners’ review of the Administrative Services Department,
and in fact, the City as a whole, revealed a number of issues and
concerns relating the Bureau of Human Resources (HR). The issues,
which Management Partners has summarized throughout the report, are
primarily the result of a sustained lack of resources, especially in the area
of staffing. The lack of resources has had a significant impact the HR
Bureau’s ability to deliver both core and discretionary services, including
training, performance reviews and job classification updates.
Typically, in an instance of perceived staffing shortages, Management

Partners attempts to verify perceptions by examining departmental
workload and comparing information with existing staffing levels.
Additionally, we make a concerted effort to compare staffing levels with
those of similar jurisdictions.
While the City HR was unable to provide comprehensive workload data,

Management Partners was able to solicit input form several benchmark
communities, including the Pennsylvania Cities of Altoona, Easton,
Reading and York. Analysis of the data indicates of the four benchmark
communities we were able to provide staffing information, the average
number of City employees per HR employee is 136.94. In fact, three of
four comparable communities identified had HR employee to total
employee ratios of between 1:105 and 1:115.
The HR employee to total employee ratio in the City of Lancaster is

1:208. The industry standard is usually stated as 1:100. The City ratios
are depicted graphically in Figure 3 below.

City of Lancaster
FIGURE 3: AVERAGE NUMBER OF CITY EMPLOYEES PER HR EMPLOYEE
Average Number of City Employees Managed per HR Employee
250
200
150
100
50
0
Altoona Easton Reading York Lancaster
The ratios indicate the City of Lancaster’s HR Department is stretched to

a far greater degree than its comparable jurisdictions. The difference
helps to explain why many core HR services in the City are not being
performed. Considering the comparative staffing ratios and the number of
HR-related responsibilities not being completed on a regular basis, it is
important to hire additional HR staff to assist with implementation of the
HR improvement recommendations cited in the report. To achieve a
highly functioning HR organization, it will be important to supply the
necessary resources.
Recommendation 20: Hire two HR Analysts to assist

with initial implementation of HR Bureau
recommendations and to resume the core duties of a
fully functioning Human Resources operation. The
employees should be utilized to develop and provide a
city-wide training and performance evaluation program. It
is generally useful to assign a “point person” for each of
the core functions of the department to help the
organization best know how to navigate the Department.
For example, one HR Analyst would be assigned to
Benefits Administration, another to Training and Employee
Development. But at the same time, employees would be
fully cross-trained to provide back-up support for each of
the core functions.
Employee Orientation and Professional Development

The City’s orientation program consists of approximately one hour of
reviewing forms and a check list of documents given to the employee;
signing and filling out tax forms, reviewing vacation and holiday policies,
and providing information about benefits. The City has a computer use
policy which is explained to every employee during orientation.

City of Lancaster
During orientation, there is no discussion of the City’s goals and

objectives, customer service orientation, ethics or general introduction to
City service.
Recommendation 21: Develop an orientation program

that includes information about the City’s goals and
objectives, its customer service orientation, ethical
and behavioral standards, and a general introduction
to the City and its service. It should be in addition to the
current signing of forms and providing information about
holidays, vacations and benefits.
As new employees join the City, a thorough orientation is needed to

provide a strong foundation for their careers with the City. A high quality
employee orientation is an important function of the HR Bureau. Several
critical steps must be in place to ensure consistency in the presentation.
Recommendation 22: Develop a standardized new

employee orientation trainer’s manual. The manual
should include an outline/agenda for the orientation and
detailed information about each item to be covered.
Without such detail, there is no way to be sure each
orientation session is consistently receiving the same
correct and thorough information. A manual also allows
new trainers to effectively be added to the rotation.
Feedback from orientation participants should be used to
regularly update and improve employee orientation
information and topics. Currently new employees do
complete an evaluation form after the orientation session.
As previously mentioned, it is a common practice in the City to promote

supervisors and managers from within the organization. If the City intends
to continue this practice, it will be important to create a professional
development program to help identify and develop leadership skills
among employees. There is currently no such program in place.
While the City does have a tuition reimbursement program, use of the
program is left entirely at the initiative of employees. Furthermore, there
are no pre-defined programs that can help employees even identify the
skills they need to acquire in order to advance successfully within the
organization.
It is important to have a visible, actionable set of standards that can be

used as a professional development rubric for employees.
Recommendation 23: Develop a professional

development program. The creation of the program
should be managed by one of the additional HR
employees recommended for hire in Recommendation 20.

City of Lancaster
Training
One of the consistent themes identified during Management Partners’

interviews with City employees was the inconsistent application of both
city-wide and department specific training. In any organization, training is
an important to ensure that news and existing employees have the tools
they need to succeed and perform at a high level. As such, Management
Partners has made a number of recommendations concerning specific
training programs.
Due to budget cuts there is currently no city-wide training program and

little emphasis on training. While the City does maintain basic safety
training for line employees, more often than not, City employees rely on
on-the-job training to obtain the skills necessary to perform their duties.
For example, heavy equipment operators often learn how to use a given
piece of equipment through the process of trail and error or through the
instruction of peers, who themselves learned to operate the equipment
under the same conditions. As a result, employees are routinely
requested to perform job actions that may be within their job
classification, but outside of their capability. It is important to ensure that
employees are adequately trained to perform the duties required in their
job.
Recommendation 24: Establish a training policy and

program by job type. The training program should seek to
provide job-specific training upon hire and on a continuing
basis thereafter, as deemed appropriate for the position.
In determining the training requirements for each position,
it will be important to consider the input of front-line
supervisors. The policy should include training or coaching
components as a part of the probationary evaluation
process. Training should be available to all employees on
an equal basis.
One commonly expressed complaint raised during interviews and focus

groups was that supervisors do a poor job of training employees and
often do not have the skills to manage others. It is primarily due to the fact
that supervisors, according the stakeholder interviews, are largely
promoted from within the organization. While not necessarily an issue of
concern by itself, a number of specific issues associated with the practice
require mitigation. For example, oftentimes individuals are promoted with
little or no supervisory experience and are, in an instant, asked to
supervise and discipline the people that they have worked side by side
with for years. The practice creates an interpersonal dynamic that
requires a certain degree of finesse on the part of the supervisor.
Furthermore, first-time supervisors are asked to administer discipline in
accordance with the labor agreement without ever having been training or
coached concerning the appropriate way to handle discipline. The
practice may lead to avoidable union confrontations. Considering the
factors, it is supervisory and management instruction and training is
clearly necessary.

City of Lancaster
Recommendation 25: Establish a supervisor/manager

training program. The program should include training
and coaching components for new supervisors and
managers, as well as programs and classes to enhance
management skills. Managers should receive training in
evaluating employees, work planning, mediation and
negotiation skills. All managers and supervisors should be
required attend a comprehensive initial training session,
with periodic refreshers courses scheduled in periods not
to exceed one year.
Another category of training that was found to be lacking during

Management Partners’ interviews with City staff is customer service. Most
employees have never been through any form of customer service
training and for those that have, did so on their own initiative or that of
their immediate supervisor.
As public employees, it is important to treat residents and customers with

dignity and respect. There are always customers whose disposition
makes its difficult to maintain a high level of professionalism. Customer
service training equips City employees with the tools to deal with problem
customers in a cordial and effective way. In addition, the quality of
customer service is the fundamental factor influencing the publics’ opinion
of the government.
It is important that the City equip its employees with tools to deal with the
public in an effective way. The administration has identified customer
service as a critical goal in building the culture of the City organization,
and many employees are currently cycling through customer service
training. It is important that all employees have the opportunity to
participate in the training.
Recommendation 26: Provide customer service

training for all employees. An initial series of training
should be provided, with periodic refreshers courses
provided as appropriate. While special customer training
will be required for certain workers, such as the Customer
Service Representatives in the Tax Office, all employees
should receive the training if the City is to deliver on its
customer service promise.
While it is important to implement a centralized training program for areas

like customer service and supervisor/management training, it is also
important to have department specific training programs. The programs
should be developed under the direction of department heads with input
from staff. All departmental training programs should be coordinated with,
and monitored by, the HR Bureau. It helps ensure continuity between
departments.

City of Lancaster
Recommendation 27: Establish policies to coordinate

with department heads on department-specific training
programs. The Human Resources Bureau should track
whether departments are meeting annual training
expectations and coordinate mutually beneficial programs
among departments.
Many of the jobs performed by employees -- whether they be patrol

officers, firefighters or equipment operators -- require a specified number
of training hours per year to maintain job specific certifications. Currently,
there is no process for tracking and recording job specific training hours,
and the HR bureau does not have easy, regular access to related
departmental data. All departments should be required to track employee
training, and HR should monitor this information and coordinate with
departments to schedule necessary training in the event of a shortfall.
Recommendation 28: Establish a protocol for

identifying the number of training hours, by type, each
employee should receive each year, and work with
departments to regularly track and monitor whether
training goals are being met. HR should develop a
standard database to allow for more uniform tracking of all
training throughout departments.
Personnel Evaluations and Discipline
Another significant shortcoming in HR Bureau pertains to the lack of a

standard employee performance review policy. Currently, there is no city-
wide policy for annual evaluations. In fact, the only evaluations that are
completed are immediately following an employee’s probationary period,
and staff interviews suggest the reviews are inconstantly done.
It is absolutely necessary for any organization, public or private, to

regularly and consistently monitor the performance of its employees. It is
important not only to the City as a whole, but to individual employees, as
the performance evaluation process helps employees establish
professional goals for developing within the organization. The
performance evaluation process is an invaluable tool used to track
performance, justify discipline, and establish goals for individual
employees.
Recommendation 29: Establish a performance

evaluation policy and process for all employees. The
policy should include probationary evaluations, apply to all
employees, and be clearly tied to job performance and unit
goals.

City of Lancaster
As mentioned above, personnel evaluations are completed for employees

after their probationary period, which never exceeds 90 days. The reality
is that 90 days is generally insufficient to evaluate an employee’s fitness
for a particular job. The probationary period is in place to allow
supervisors and managers the opportunity to gauge, over time, an
employee’s ability to both perform specific job duties and fit within the
organization. It is important to allow sufficient time for this process.
Recommendation 30: Amend City policy to mandate a

minimum six-month probationary period for all
employees. It will also be important to evaluate whether
some positions, such as that of patrol officer, should
require longer probationary periods.
Another defective component of the current policy relates to employees

who post in from other positions within the City. Currently, the AFSCME
contact mandates that in the event of a vacant, AFSME-covered position,
the City must post the job opening internally for two weeks before making
the job available to the public.
If an AFSCME employee wishes to apply for the position, and meets the
minimum qualifications, the City is obligated to award that position to that
employee under a practice commonly referred to as “posting in.” If an
employee posts in to a position, that employee is not subject to the
probationary period, despite the fact that the employee is entering into an
entirely new position.
If a position is filled using post-in procedures, a supervisor or manager is

forced to accept the employee – regardless of his/her ability to actually
perform job specific tasks. It is an erroneous and inequitable policy.
Recommendation 31: Establish a six-month

probationary period for all employees that “post” into
positions.
Another issue associated with the process of posting in pertains to

minimum qualifications. As previously mentioned, any AFSCME
employee meeting minimum qualifications is eligible for mandatory
appointment to an open AFSCME position. Management Partners’ staff
interviews widely suggested existing minimum qualifications for most
positions does not accurately reflect the real requirements of a position.
As a result, supervisors are getting employees through the post-in
process that, while meeting “minimum qualifications,” do not have the
skills to complete their duties as expected.
Recommendation 32: Review job descriptions and

minimum qualifications for each job, and revise to
reflect actual working requirements. It will be important
to solicit and consider the input of managers and
supervisors during this process.

City of Lancaster
Current practice is to post almost all jobs internally, as required by the

City’s Labor contracts. The practice; however, delays filling positions with
qualified workers, and can lead to situations where people are promoted
beyond their level of ability. Little emphasis has been put on identifying
key skills for the jobs and testing people who respond to the posting.
Recommendation 33: Require testing for all jobs,

including ones posted internally.
Recommendation 34: Negotiate the removal of the

written practice of requiring jobs to be posted
internally from labor agreements. Management would
then evaluate which jobs can and cannot be bid to ensure
the best possible pool of applicants. .
General HR Recommendations
One issue which seems to dog each department is that of sick-leave

abuse and light-duty abuse. While our interviews indicated there is
endemic sick-leave abuse, there is no central tracking of sick-leave usage
and no policy related to the subject. To correctly diagnose and track the
resolution of this apparent problem, it is important to regularly track sick
leave use by bureau. Furthermore, it will be important to develop and,
more importantly, enforce a uniform sick-leave abuse policy.
Recommendation 35: Formalize a City-wide sick-leave

abuse policy and ensure that the policy is enforced in
each department.
Many departments reported that employees are assigned to light-duty

work for excessive periods of time, some for multiple years. If an
employee is confined to light duty due to an injury for such an extensive
period of time, it is unlikely that that employee will ever be able to return
to normal responsibilities. While it is important to evaluate cases on an
individual basis, it is also important to establish standards for determining
when an employment should be terminated because of inability to
perform essential job functions for an extended period of time.
Recommendation 36: Develop an internal policy

establishing benchmarks that light-duty employees
must meet, with the goal of returning to full duties, and
establish a maximum number of days that employees
may be on light-duty before separation.
HR Department staff indicates that they are responsible for managing

workers’ compensation, yet departmental interviews suggest there is no
investigation of claims being done by staff. While the agency contracted
to manage claims thoroughly investigates each case, it appears to be little

City of Lancaster
involvement by Departmental management and supervisors in the

process.
Management and supervisors must be involved in the process to

discourage abuse and encourage safe work practices that help to avoid
injuries.
Recommendation 37: Establish a review process for all

workers’ compensation claims. The process should start
at the first-line supervisory level, but also should include
central review of all claims.
Employee turnover is low, but the City reportedly has trouble filling jobs
requiring technical skills because of relatively low pay. HR staff reported
often receiving fewer than five applications for advertised jobs that are
open to the public of which often only one qualified applicant, if they are
fortunate. Other jurisdictions in Pennsylvania report getting much better
results when they advertise a position, as suggested in Table 6.
TABLE 34: ESTIMATED APPLICATIONS PER ADVERTISED POSITION IN LANCASTER AND

OTHER JURISDICTIONS*
Lancaster Altoona Easton Reading York

Applications per
Advertised Vacancy >5 16 20-30 25+/- 10
*From survey responses
Recommendation 38: Conduct a City-wide wage study

to identify how the City compares with similar
jurisdictions. Such a review will help determine if wage
levels are inhibiting the ability to find qualified people.
HR staff reported the New World system does not have standard routines
which adjust for wage increases but instead must be manually entered.
They expressed substantial frustration with the system and suggested
that it may be good for accounting, but made more work for HR. They
also indicated the position control module is not linked to payroll and
employee records do not accumulate employee histories.
While there are obvious issues concerning the use of the New World
System in HR, it is not clear the system itself is the problem. Very little
training has been provided to HR staff on how to effectively use the
system. Employees need appropriate training to function with the system
for whatever period of time the City intends to continue with it.
Recommendation 39: Train HR staff in the complete

capability of the New World software system. Evaluate
their ability to obtain reports they want and need after
being fully trained.

City of Lancaster
Bureau of Information Technology
The Bureau of Information Technology (IT) provides technology support

to all City operations; develops and maintains custom software programs;
supports and administers New World Systems Municipal software; and
purchases software and hardware used on the IBM AS/400 server, the
PC network, and the Windows 2000 server. The Bureau also generates
reports, payments, billings and mailings that require use of one of the
City’s databases. Finally, the Bureau works with the Lancaster County to
update the City’s real estate tax database, and with the Pennsylvania
Department of Transportation to generate warning notices for delinquent
traffic violations.
The Bureau of Information Technology maintains operation of the City’s

technology and communications infrastructure, including the City website; a
T1 line that connects the AS/400 server in City Hall with the Public Safety
Building; fiber optics that connect City Hall with the Fire Bureau
Administration in Southern Market; internet service that connects City Hall
with Water, Wastewater, Parks, and Streets Bureaus; a Virtual Private
Network (VPN) that uses cable modems hooked into a Sonic Wall Device to
connect City Hall with remote Fire Stations; and 173 desktop PCs used in
various departments.
The Bureau of Information Technology is staffed by five employees: a

system designer, two programmers, a system development manager and
a chief.
While IT is the central repository for staffing the organization’s IT function,

in reality there are IT-related costs, and, to some degree staff, in line
departments. Management Partners worked to identify the total cost for
all IT-related expenditures in the City’s budget, but we were not able to
able to discern all departmental resources for IT. Available information is
summarized in Table 35 below.
TABLE 35: LANCASTER IT EXPENDITURES
Total IT Budget
Organizational Unit FTEs (Includes Salary Cost)
Bureau of Information
Services 5 $434,129
Bureau of Police 1 $36,157
Sewer Fund* - $31,029
Water Fund* - $31,029
6 $532,344
* Water and Sewer pay 1/3 of the salary cost of the Information
Services Manager and the Senior Programmer under the
Bureau of Information Services

City of Lancaster
Findings
Information technology (IT) services are spread out across several

different departments and with no central management. The Bureau Chief
manages some Information Services staff, while the System Development
Manager directs software development separately. Police manage their
own IT, and Public Works manages the telephone system and
telecommunications.
Overall, the IT function is not well organized. There are five employees in
two groups that both essentially report to the Director of Administrative
Services, making him the de facto Bureau Chief of Information Services,
although there is a person with that title.
Recommendation 40: Define and formalize leadership

of the IT Department. Make one person in charge of all
information services within the City, including operations,
software development and support, telephone and
telecommunications, and GIS. The change would be a
more strategic alignment of the important function.
The IT Department develops goals for the upcoming year as part of the
annual budget process, but the Department lacks a multi-year strategic
plan to make technology a more integral part of City operations.
Recommendation 41: Develop a comprehensive five-

year technology strategic plan for the City with input
from all stakeholders. The plan should consist of detailed
goals and objectives that set the direction, priorities, and
budget for making technology an integral part of all
operations, and improve employee efficiency and service
delivery to citizens. The adoption of a strategic plan will
be a road map for evaluating and implementing the
recommendations contained in this report and should be
pursued immediately.
The City still uses an IBM AS400 for much of its processing. It is
antiquated and outdated technology. There have been enough
modifications to the New World enterprise application modules that New
World does not fully support several of the City’s applications. An
exception is found within HR and Financial portions of the system which
have been relatively unmodified. There are still applications which are
legacy -- or custom written -- software being used, particularly for the
various licenses issued by the City. Much of the programming used is
written in a very old programming language called RPG which is not often
used in modern applications. Availability of RPG programmers will be a
factor in the future.
The City was previously so dependent on a consultant/programmer to

make modifications to applications that a new position was created in

City of Lancaster
order to have a ready in-house resource. While the New World system is
robust and still used – the version the City uses is no longer marketed by
the vendor.
All new investments are being made in New Worlds server-based

programs. Continuing to support the technology is not strategic.
Recommendation 42: Phase out the IBM AS400 and

move to a web-based or other networked system. A
plan to accomplish a phase out will be foundational to the
City’s IT Strategic Plan referenced in Recommendation 40.
The City’s technology infrastructure is outdated and poorly organized. A

technology plan and a plan to migrate away from outdated technology are
important steps for the City to take. In reality, the services provided by the
IT Department may be available more cost effectively in marketplace than
continuing to provide services in-house.
The network infrastructure, phone system, legacy software systems and

GIS all require significant upgrading and investment. The City should
investigate the possibility by openly exploring the cost-effectiveness of
outsourcing the function through a competitive request for proposal
process.
While Table 35 identified more than $500,000 in direct costs, it does not
include the employee benefit costs, which adds a significant amount to
the figure. When comparing cost effectiveness it will be critical for the City
to develop a full-cost accounting of the services being compared.
It is also important to note that an outsourced IT function will still require a

professional technology administrator in the City to manage the contracts
and monitor service level agreements on behalf of the City.
Recommendation 43: Prepare a request for proposal to

provide all enterprise application operations and
support services for the City. Some or all of the City’s
needs could be satisfied through outside vendors. The City
should break major components out for separate RFPs to
give more vendors the opportunity to bid, and encourage
competitive pricing. It may also be worthwhile to
investigate partnering with the Lancaster Public Schools to
determine if they have systems in place that may meet the
City’s information technology needs.
A separate RFP should be developed to evaluate outsourcing of the

City’s network of personal computers and laptops, as discussed below.
Separating the major components will give the City the opportunity to
consider multiple providers, rather than limiting itself to the few service
and equipment providers who are able to meet all its information service
needs.

City of Lancaster
The City currently devotes a portion of the time of the Network Systems
Administrator and the System Operator to provide PC support. The staff
members are currently paid just under $80,000 per year ($78,244), plus
about 40% in benefits, for a total of approximately $110,000 per year,
each.
The City also bears the cost of PC replacements. PCs usually cost about
$900 each for the Dell systems the City has been purchasing. If they
were to replace the approximately 170 PCs and laptops on a three-year
cycle, they would be replacing 57 per year, costing about $51,300. The
City’s current PC support and replacement costs can be estimated at
$161,300 per year across all funds if a three-year replacement schedule
were being followed, but the City is not.
Each department is required to budget for necessary PC replacements,

which leads to inconsistencies across departments on cycles and policy.
The inventory of PCs and laptops maintained by Information Services
indicates that 104 of the 173 units have been in use more than three
years and some have been in service since 1994.
Forty-three personal computers were purchased in 2006, which

represents about a four-year replacement cycle. At an average cost of
$900, the City paid almost $39,000 for the machines; however, several of
the machines were installations which computing capacity had never
existed.
Many new PCs get swapped around where older PCs get passed down to
employees within a department. The practice further burdens IT support
staff and prevents some users from ever getting a new PC.
Recommendation 44: Centralize the budget for all PC

purchases (and leases) within IT. Develop a City-wide
policy for PC replacements where all users will receive a
new PC once every three years.
Management Partners is aware of government-awarded contracts by Dell

computers for “seat management,” in which the cost per PC per year
ranges from $323 for a low-end PC to $374 for a high-end PC. The plan
provides all users a new PC on a three year schedule, and includes
maintenance and some technical support. At the high-end figure, it would
cost the City only $21,000 per year to be on a three-year replacement
cycle, or $30,000 less per year than out-right purchase, and still $18,000
less than spent in 2006.
Recommendation 45: Prepare an RFP, or identify a

state-wide purchasing opportunity, to obtain a seat
management contract for PCs and laptops based on a
three-year replacement cycle. The City should consider
including help desk support as part of this RFP or
purchase such support from a separate vendor. Not all
seat management contracts include help desk support,

City of Lancaster
and it may need to be augmented by a separate contract.

Help desk support is widely available and can be
purchased in the marketplace or made part of the
contract.
One cautionary note about the inventory that IT staff has developed is
pertinent to earlier recommendations concerning coordination of
information technology services--no complete inventory of computer
equipment within the City exists. The IT staff has no record of the
computers which might be owned by the police. It is one more piece of
evidence of the lack of central coordination of IT services.
The City has a very limited and informal disaster recovery plan for
technology. Tapes are stored in a fireproof vault at City Hall and backup
tapes are taken off site to the Chief of Information Services’ house as
backup. The management letter from the auditors dated April 20, 2006,
called for the creation of a disaster recovery plan and testing of the plan.
No formal disaster recovery plan has been created for Lancaster.
.
Recommendation 46: Develop a formal disaster
recovery plan with secure off-site storage. As
recommended in the financial auditor’s management letter,
create a comprehensive disaster recovery plan to help City
staff follow predefined procedures to declare a disaster,
prioritize and recover critical systems, and respond
appropriately to enable continuity of operations
Recommendation 47: Contract with a vendor to

provide secure, climate-controlled storage of backup
tapes, with controls over which staff may authorize
pickup and deliveries of tapes. It is an essential best-
practice that limits the span of control of any single
individual and helps protect the City’s critical data backups
in a secure climate-controlled facility.
The City has a mixture of leased T-1 lines and fiber. Some locations must
use dial-up modems to access email, City Hall systems or the internet.
According to IT staff, fiber runs between City Hall and Police, other
locations have much slower leased lines and in some cases dial-up
connections to City Hall.
The inconsistency in technology limits the types of applications that can

run across the network, and puts strains on email access and the Web for
users in remote locations. Standardizing will enhance capacity and
ultimately lower costs. It would also provide the necessary infrastructure
for the City to implement a voice over internet protocol (VOIP) telephone
system in the future.
The City’s wide area network linking City facilities should be overhauled
and, where practicable, fiber should be run. The IT and Public Works
Departments should develop a plan to run fiber to as many facilities as

City of Lancaster
possible. Doing so will save the City the ongoing cost of leased lines and
will dramatically improve network performance for users in remote
locations. It would provide the key infrastructure for voice, video and
advanced data applications to run over the network.
Recommendation 48: Install fiber lines in all City

locations where cost effective.
The time it takes to install a new PC is higher than it needs to be. New PC
replacements are configured from scratch each time, with each individual
software application configured manually. It takes a day to set up a new
computer to load approved software, and set up the machine at the user’s
work station. It could be done much more efficiently with “ghost software.”
Installation of PC replacements needs to be more systematic.
Recommendation 49: Buy and use imaging software

to streamline the set-up all new computers. Imaging
software facilitates the installation of a standard set of
packages and programs on new computers. Staff should
utilize imaging or “ghosting” software where the City’s
standard software configuration will be preinstalled on new
equipment, using a preconfigured image. The approach
could reduce the time to install a new PC by up to 50%.
With a seat management contract this would not be
necessary as each PC would be delivered preconfigured
by the vendor.
Most users In City Hall have personal printers at their desks. Very few
high-speed network printers exist at City Hall or at other locations. Of 173
personal computers and laptops inventoried by staff in IT, 81 have an
attached printer. Most employees without a personal printer seem to be in
other locations, such as the Southern Market or in the water lab. It makes
for slow printing and a high cost per page while also being a large support
burden for IT staff.
Recommendation 50: Install networked printers on

each floor of City Hall. IT staff should discontinue the
practice of replacing personal printers and install at least
one high-speed network on each floor in City Hall, and
other locations as appropriate. In the long-run, it will result
in reduced capital outlays and reduced expenditures for
printer consumables. It may also help reduce non-business
printing and allow staff to efficiently print large jobs.
The IT work environment is dismal and not conducive for quality work.
There is very little work space and the heating and ventilation system is
inadequate for optimal performance. A recent sewer back-up at City Hall
came close to flooding the area where the City’s mainframe computer is
housed. If the City determines it should continue to have its own IT staff,
its workspace must be improved.

City of Lancaster
Recommendation 51: Improve the IT work space.
IT support staff do not enter and track help desk calls in any type of work
order or help desk database. There is no work order system for IT. There
is no logging of help desk requests, nor is there any systematic project
tracking system for the work of the programmers. Without any organized,
prioritized list of projects, there is no way to assure that the most
important needs of the City are being addressed.
Other departments also need work order systems to meet needs. Public
Works needs one – the department uses a manual system to process
work requests which makes it difficult to track and measure services
provided by the Department. There should be a system at the meter shop
to order the turn-offs and return service for individuals. There is no work
order system that Customer Care Coordinators can use to electronically
order repair inspection or turn on service for customers.
Several commercially available products exist which are specifically

designed for public works functions including street maintenance, water,
sewer, etc. Several different systems might need to be purchased to
meet all of the work order needs of the organization.
Recommendation 52: Develop a work order system, or

systems, enterprise wide for all help desk requests,
requests for new programming and other types of
service requests. It would help provide more consistent
service to all users and customers. It would also provide a
means for IT staff to develop a knowledge base that can
be referred to when issues arise. A help desk database
would assist staff identify users who need training. Other
departments and units could benefit from such a request or
work order tracking system. The systems also would
contribute to producing performance measures and
management reports.
Three separate email/scheduling systems are in use by the City. The

separate systems create support challenges for IT and scheduling
problems – especially within City Hall, between the Mayor’s Office and
other City Hall users. Some users within City Hall must maintain duplicate
calendars on two separate scheduling systems, Lotus Notes and Office
Logic.
Recommendation 53: Standardize e-mail and

scheduling software platforms within City Hall. Bring in
an email consultant to work on making the Police
Outlook/Exchange system more compatible with Lotus
Notes by using industry standard protocols.
There is a lack of computer training for City staff and no centralized

training budget exists. On rare occasions, some departments have sent
staff out to computer training. Job descriptions for employees outside of

City of Lancaster
IT apparently do not list any computer skill requirements; an aspect that

contributes to the low level of computer literacy among City computer
users.
New employees do not receive any computer training. Beyond signing the
required benefit enrollment forms and documents, new employees
receive no formal orientation. IT staffs have offered to train users, but
rarely are they taken up on the offer. Some staff lack basic computer
literacy and it is affecting their ability to use new technology. For example,
housing inspectors are having significant challenges adapting to handheld
computers.
Recommendation 54: Require new hires in

administrative jobs using computers to have a basic
knowledge of Microsoft Office and other desktop
software. Requirements should be written into job
descriptions for all appropriate staff. Raising the level of
computer skills for new hires in the long run will
dramatically improve efficiency of staff across the City and
reduce the number of help desk calls IT receives.
Recommendation 55: Centralize computer training

within IT. Make periodic training mandatory for all users.
Give IT the authority to require certain staff with low
computer literacy to attend mandatory computer training.
There is a very limited training budget for the IT staff. Several staff said
they have not received any technical training in years and keep up on
developments through trade magazines and online email lists. Two staff
members indicated they had received less than one day of training in the
last three years. Additionally, IT has not received any customer service
training.
One way the IT industry determines how desirable a company is to work

for is by evaluating the amount of training budget allotted to each IT
employee. A 2007 study by Computerworld Magazine of the “best” IT
places to work show employers spend between $500 and $7,500 per IT
employee on training to ensure skill base. The University of Pennsylvania
budgets $3,700 per IT employee for training.
Recommendation 56: Establish a training benchmark

for IT staff and ensure professional development.
To keep current on the latest technologies, staff should
receive specialized training at least once/year. Also include
IT staff in the City’s customer service training program,
which may help improve service to “internal” customers. A
benchmark of at least $1,000 per IT employee would be
appropriate and achievable for the City.
The City’s phone system is old and in need of replacement. Several

different systems exist, spread out among various City facilities. Two

City of Lancaster
voice mail systems serve Police employees and all other employees while
some smaller remote facilities are using Centrex. Some locations have
four-digit dialing between offices and others do not. It leads to confusion
for citizens and businesses calling the City, and can affect customer
service.
Recommendation 57: Replace the aging phone system

and, after building a more robust network, consider
voice over internet provider technology (VOIP). VOIP
phone systems allow organizations to leverage a single
data network by also running voice traffic over the network,
and reducing costs. It saves the City from the ongoing
expense of leased lines from local exchange carriers such
as Verizon. Some Cities have saved as much as 50% in
expenditures made to local exchange carriers after
switching to VOIP telephone systems.
Outside of Police, GIS is only used by one person -- a full-time planner.

He indicates that he spends approximately 5 to 8% of his time on GIS.
Virtually all GIS data is obtained from the County. Beyond making basic
maps, GIS is barely utilized in the City.
Throughout the City there is a tremendous need to build layers of

information in GIS and leverage it for nearly every function, including, but
not limited to, land development, water and sewer, traffic and
transportation, and facilities. The City should make GIS a strategic
priority.
Recommendation 58: Hire a full-time GIS manager to

fully leverage GIS information capabilities. Staff could
receive training from the GIS manager and also begin
building numerous layers of information for a City-wide GIS
library.
The network within City Hall is running on an outdated IBM Token Ring
network topology which is slow and costly to maintain, especially when
new cable drops are required.
Recommendation 59: Upgrade the IBM Token Ring

network infrastructure within City Hall in conjunction
with any planned construction renovations of the
building with category 6 cabling. It supports Ethernet
10/100/1000 MBS network bandwidth.

City of Lancaster
Other than sending email to the Webmaster, there is no convenient way

for residents to make general requests or report problems on the City’s
website. One of the only other options is for citizens to pick up the
telephone and call, or to travel to City Hall.
Recommendation 60: Develop a resident service

request form on the City’s website for citizens to send
in general requests and complaints. It would cut down
on the number of phone calls City staff receive, and
provide another way for citizens to report problems on a
24/7 basis.
The City’s website is hosted by Lancaster County. It’s a content

management system, based on a template design with limited flexibility in
how the pages are set up. Additionally, the County does not provide the
City with access to any logs that could be used to generate basic
statistics on number of visits to the site and which pages are the most
viewed. Visitors who want run a search on the City’s website cannot limit
their search to just the City’s site. All searches combine the County site
and several other municipal sites.
Recommendation 61: Evaluate the benefits of hosting

the website somewhere other than Lancaster County
where greater flexibility for page layout and content
can be achieved. Most vendors can offer access to logs to
generate essential statistics and performance measures on
visitors to the site. In addition, the City should find a host
with the flexibility to provide comprehensive search
capability of the City site
.
IT currently maintains the City’s site, but many pages are not kept up to
date. IT staff report it is difficult to get updates and departments rarely
take responsibility for the information content on the site.
Recommendation 62: Form a committee of

representatives from each department to regularly
review the content on the City’s website. Make it the
committee’s responsibility to keep the information up to
date on the site.
According to IT support staff, many computer users violate City computer

use policy and install unauthorized software, such as instant messaging,
toolbars and other software on their PCs. It leads to increased support
calls and complicates PC replacements. In some cases, policies have
been put in place to “lock down” individual PCs.
Recommendation 63: Use Microsoft Windows Active

Directory for the City’s local area network and to “lock-
down” PCs and create policies to prevent users from
installing unauthorized software.

City of Lancaster
IT staff must routinely visit user offices, which may include driving or
walking across City Hall to resolve problems which require IT intervention.
It makes response time for IT support staff to remote users slower than
for City Hall users and staff must use their own vehicles to make service
calls to other City buildings. They do not get reimbursed for mileage and
often have to pay for parking when visiting certain locations
Recommendation 64: Set up “remote control” software

on all desktop PCs to enable IT staff to take control
(with the user’s permission) and resolve problems with
user PCs remotely. It will cut down on the number of trips
MIS staff must make to fix or resolve user problems. Use
of remote control software will significantly improve IT
responsiveness for certain types of help desk calls,
especially for users outside of City Hall.

Lancaster, Pennsylvania
Financial Analysis
PUBLIC WORKS
Overview
According to the City of Lancaster’s budget document, the Department of
Public Works (DPW) is charged with:
“Maintaining the City infrastructure, ensuring clean streets,

maintaining and improving public buildings and other facilities
and enhancing recreational opportunities for City residents with
consistent maintenance and improvement to City parks and open
spaces.”
To accomplish these goals, the Department of Public Works is organized

into six operational bureaus: Engineering, Streets, Parks and Public
Property, Solid Waste and Recycling, Water, and Wastewater. The
Bureaus of Water, Wastewater, and Solid Waste and Recycling are
enterprise funds. The remaining bureaus operate out of the General
Fund budget.
The department is managed by a Director of Public Works and five senior

level managers. In addition to the Director of Public Works, two
management positions are budgeted but unfilled: a deputy director (who
would serve as a DPW operations manager) and a utilities manager.
The DPW organizational chart is depicted in Figure 4 below.

City of Lancaster
FIGURE 4: DEPARTMENT OF PUBLIC WORKS ORGANIZATIONAL CHART
Bureau of Engineering
The Bureau of Engineering is responsible for maintenance of the Official

City Plan, assignment of street addresses, and preparation of
construction plans for public works projects. The bureau also coordinates
with the Department of Economic Development and Neighborhood
Revitalization to provide engineering review services for development
plans and subdivision plans. The Bureau of Engineering also serves as
the coordinating bureau for all Pennsylvania One-Call System utilities
locates for the City of Lancaster.
A major work component for the bureau is to manage the replacement

and inspection of curbs and gutters to meet the requirements of a federal
consent decree stipulating that all non-compliant ramps be retrofitted to
meet Americans with Disabilities Act (ADA) guidelines.2
Bureau of Streets
The Bureau of Streets, Streets Section is responsible for maintaining

approximately 100 miles of City streets and 130 miles of public alleys. It
2
City of Lancaster Pennsylvania Proposed 2007 Budget, A24

Financial Analysis
also is tasked with completing reconstruction, maintenance, resurfacing,

snow/ice removal and street sweeping activities.
The Motor Vehicles Section of the bureau is responsible for maintaining

the Public Works, Administrative, Police and Fire fleets and providing
Pennsylvania State emissions testing services. The Traffic Section
maintains all traffics signs and signals within the City of Lancaster and
operates a sign shop for the fabrication of all City traffic signs.3
Bureau of Parks and Public Property
The Bureau of Parks and Public Property is responsible for the

maintenance and improvement of 16 City-owned buildings, 22 City parks
and playgrounds, Bureau of Water and Wastewater grounds, public
restrooms, and six City swimming/wading pools. Additionally, the bureau
provides tree trimming and graffiti removal services. Employees of the
bureau’s Parks and Buildings Maintenance sections also set up and staff
City events and festivals.4
Bureau of Solid Waste and Recycling
The Bureau of Solid Waste and Recycling is responsible for managing the
City’s single hauler waste and recycling program. The principal work for
bureau personnel encompasses management of the refuse and recycling
contract, management of customer service activities, and public
education and outreach.5
Bureau of Water
The Bureau of Water operates and maintains the City’s two water
treatment facilities. Additionally, the Transmission and Distribution (T&D)
Section of the Bureau of Water maintains the water transmission and
distribution infrastructure, including pipeline, pumping stations and water
meters. The bureau services 44,650 metered connections, both within
the City of Lancaster and throughout much of Lancaster County.6
Bureau of Wastewater
The Bureau of Wastewater operates and maintains a 30 million gallon per

day (MGD) wastewater treatment facility, the sewer collection
infrastructure and pumping stations. The bureau also provides contracted
service to the Suburban Lancaster Sewer Authority for maintenance of its
collections systems and pumping stations.7
3
Ibid, A25
4
Ibid, A26
5
Ibid
6
Ibid, A27
7
Ibid, A28

City of Lancaster
Budget and Staffing
The total FY2007 budget for the Department of Public Works is almost
$33 million. Table 36 below provides budget and FTE staffing details for
the department, as well as for each bureau.
TABLE 36: FY2007 DEPARTMENT OF PUBLIC WORKS BUDGET AND STAFFING8
FY2007
General Fund Organizational Units FY2007 Budget Budgeted FTEs
Administration $902,261 2
Engineering $185,194 4
Streets
Streets Section $934,481 20
Traffic Section $803,081 4
Motor Vehicles Section $177,923 4
Parks and Public Property $1,870,787
Buildings Section $938,086 13
Parks Section* $932,701 22
General Fund Subtotal $4,873,727 69
FY2007
Enterprise Fund Organizational Units FY2007 Budget Budgeted FTEs
Wastewater Operations
Administration $4,434,517 6
Transfer to General Fund $800,000 -
Collections $644,042 11
Pumping $983,187 13
Treatment $4,282,100 19
Grounds Maintenance $104,488 0
Wastewater Subtotal $11,248,334 49
Water Treatment
Transfer to General Fund $1,207,128 -
Susquehanna Treatment $1,818,397 18
Conestoga Treatment $2,041,190 17
Transmission/Distribution $1,308,632 22
Meter Shop $695,741 13
Grounds Maintenance $318,424
Laboratory $226,074 4
Water Treatment Subtotal $13,914,569 85
Solid Waste and Recycling Program
Enterprise Fund Subtotal $28,036,564 152
Public Works Total $32,910,291 210
* Parks Section budget data includes administration, maintenance, and tree trimming.
8
City of Lancaster Pennsylvania Proposed 2007 Budget

Financial Analysis
Over the past five years, the Department of Public Works as whole has
maintained fairly consistent staffing levels. In fact, since 2002, the DPW
has added a total of eight positions. However, there are some bureaus
and operational units that have seen significant reductions in staffing
levels over the past six years.
Table 37 lists demonstrates the historic staffing pattern for each of those
bureaus.
TABLE 37: HISTORIC STAFFING PATTERNS IN THE DEPARTMENT OF PUBLIC WORKS
Total
General Fund Change in
Organizational Units 2002 2003 2004 2005 2006 2007 FTEs
Administration 2 2 2 2 2 2 0
Engineering 4 4 4 4 4 4 0
Streets
Administration 2 2 2 1.4 1.4 1.4 -0.6
Streets Section 20 20 19 19 19 19 -1
Traffic Section 4 4 4 4 4 4 0
Motor Vehicles
Section 3 3 4 4 4 4 +1
Parks and Public Property
Administration 2 2 2.66 2.66 1.86 1.86 -0.14
Buildings Section 12.4 12.4 15.4 15.54 14.5 14.5 +2.1
Parks Section* 21.1 21.1 21.1 22 22 22 +0.9
DPW General Fund
Subtotal 70.5 70.5 74.16 74.16 72.76 72.76 +2.49
Total
Enterprise Fund Change in
Organizational Units 2002 2003 2004 2005 2006 2007 FTEs
Wastewater Operations
Administration 3 3.4 3.4 3.6 2.6 2.6 -0.4
Collections 10 11 11 10 11 11 +1
Pumping 15 15 15 14 14 14 -1
Treatment 21 20 20 20 19 19 -2
Grounds Maintenance N/A N/A N/A N/A N/A 4 +4
Wastewater Subtotal 49 +1.6
Water Treatment
Administration 6 4.6 4.6 5 4.8 4.8 -1.2
Susquehanna
Treatment 18 18 18 18 18 18 0
Conestoga Treatment 19 18 18 17 17 17 -2
Transmission/Distribution 24 24 24 23 23 22 -2
Meter Shop 13 13 13 13 13 13 0
Grounds Maintenance N/A N/A N/A N/A N/A N/A N/A
Laboratory 5 5 4 4 4 4 -1
Water Treatment
Subtotal -4.2

City of Lancaster
Solid Waste and Recycling Program
Administration N/A N/A N/A N/A N/A 2 +2

Enterprise Fund Subtotal -2.6
Public Works Total -2.2
Goals and Methodology

The goal of Management Partners’ performance audit of the Department
of Public Works, and the City of Lancaster in general, is to identify ways
in which the City can improve service delivery effectiveness and/or
efficiency. This audit was preceded by an extensive initiative by the City
to develop a long-term strategic plan, which helped identify many of the
major issues and community goals deserving the City’s attention, both
immediately and over the next five to 10 years.
Considering the recent efforts taken by the City to improve general

governance through the implementation of a strategic plan, Management
Partners has sought to identify organizational improvements that can be
enacted as a step toward meeting those strategic plan goals.
While the recommendations provided in this report support the City’s

strategic planning efforts, it is important to recognize the work already
completed by City staff to meet its overall goals. There are a number of
goals that relate specifically to public works that DPW has taken
significant strides toward achieving. The following is a summary of DPW’s
goals and the actions taken to date to meet them, derived from the 2006
Progress Report on Mayor Gray’s transition goals:
¾ Infrastructure investment must become a priority to keep pace with

economic development.
o A traffic signal audit was completed and the City is in the
process of retrofitting traffic signals with light-emitting diode
(LED) bulbs. This will save the City approximately
$125,000 per year in utility costs.
o The City has completed a facility needs assessment of City
Hall.
¾ Secure Funds for a comprehensive traffic study that includes
recommendations for traffic calming, pedestrian safety and parking.
o The City completed an application for direct appropriation,
which will be considered in the next federal budget
process.
¾ Assess current personnel, technical, equipment, and infrastructure
assets available to Public Works.
o A Deputy Director of Public Works position was created to
manage organizational assessment.

Financial Analysis
o DPW is currently evaluating alternatives for consolidating

the multitude of its facilities spread throughout the City in
an effort to improve efficiency.
¾ Complete a comprehensive master plan for the City’s park system
that will result in a complete upgrade of every City park by the end of
the decade.
o Grant funds for this planning process were secured to
complete this goal in 2007.
¾ Develop and implement a waste and recycling management program
that is economical, environmentally sound and customer-oriented.
o A single hauler waste and recycling program was
implemented in 2006.
¾ Continue implementation of plans to construct a new water treatment
facility.
o Funding has been secured and design and permitting for
the two plants has been completed. Construction has
begun on the new plants.
¾ Continue implementation of plans to bring City streets and properties
into compliance with ADA requirements.
o All new curb ramps installed in the City are ADA-compliant
and the City has committed to retroactively reconstruct all
non-compliant curbs constructed after 1992. A consultant
has been hired to complete an ADA compliance
assessment.
Analysis and Recommendations

Recognizing the work already completed to improve the Department of
Public Works, Management Partners’ review has rendered a number of
additional recommendations for improvement that deserve the attention of
DPW’s senior level management. These recommendations are based on
a thorough review of relevant documents and background information
concerning the Department of Public Works and, most importantly,
interviews with over thirty employees representing each DPW Bureau and
focus group meetings that Management Partners completed with staff
from all levels and bureaus of the department.
Many of these recommendations pertain to specific bureaus or

operational units; however, there are a number of broader issues as well.
Specifically, we have identified a number of recommendations that fall
under the categories of “General Observations” and “Use of Technology.”
General Observations
Overall, employee perceptions regarding the Department of Public Works

were positive. Employees spoke optimistically about the direction of the
department and the City. There is a general sense that the department is
moving to address long-standing issues under the leadership of the
Director of Public Works and the Mayor, and is headed in a positive
direction.

City of Lancaster
Indeed, many of the recommendations for the department contained

within this report have already been recognized by the Director and are in
some stage of evaluation, planning or implementation. Budget
constraints and vacancies in key senior management positions, however,
have had a limiting effect on implementation.
Interviewees suggested there is improved coordination between bureaus

and the spirit of cooperation throughout the department is high. However,
while the spirit of cooperation may be high, the operational units of the
department are geographically dispersed in a manner that is prohibitive to
cooperation and coordination, thereby limiting the extent to which the
prevailing spirit of cooperation can be capitalized upon.
Currently, the facilities utilized by the DPW as operations hubs are

dispersed throughout the City of Lancaster and Lancaster County. There
are separate facilities for each bureau; some bureaus maintain separate
facilities for its sections. The decentralized nature of the DPW is
prohibitive to regular and consistent communications and adds
inefficiency to service delivery by creating unnecessary travel time.
Furthermore, many of the facilities are in dire condition and are
inadequate to meet the operational needs of the bureaus.
For example, the Bureau of Water’s T&D Section garage does not have a
place for City employees to park. Therefore, employees are forced to
park in the garage. Additionally, the space limitations of the T&D
Garage/Facility require the use of other off-site facilities to store supplies
necessary for T&D work. T&D has a separate pipe yard, stores gravel at
the Streets facility and has a dump site for spoil material. On a typical
job, a T&D crew may need to visit four different locations to compete a
given assignment. This is an unnecessary and inefficient use of time.
As previously mentioned, the condition of DPW facilities is poor. While no

needs assessment has been completed to detail the total cost required to
upgrade inadequate public works facilities, the City is in the process of
evaluating the possibility of consolidating the entire department.
Based on Management Partners’ experience with public works

departments, the consolidation of each bureau under one “public works
shop” is characterized as a best practice that facilitates better cooperation
and communication among bureaus and enables a more consistent
application of City policy.
Furthermore, the consolidation of each bureau into a more modern public

works shop will enable the department to forgo the cost of upgrading its
facilities and enable the possible sale of buildings. This will create one-
time revenue for the City and, ideally, with the sale of the properties to
private property owners, add additional property tax revenue.

Financial Analysis
Recommendation 65: Consolidate DPW facilities

under one “public works shop.” Ultimately consolidation
under one modern facility will also better enable the
department to upgrade its technological capabilities.
In addition to consolidating all public works facilities under one shop, it will
also be important for the Director of Public Works to have a strong
presence at the consolidated shop to better facilitate vertical
communication with DPW staff and management. There is a
considerable amount of organizational change planned for the
department and key management positions are vacant. Pulling the
department together and establishing new direction will require the
direction and visible support of the Director.
There is always a challenge in relocating Public Works Administration and

the Bureau of Engineering because of their close ties to other City
departments and the critical need for coordination. Most communities
sacrifice the operational efficiency of the public works department in favor
of promoting interdepartmental coordination.
It is a difficult choice. In this particular case, the management needs of

the Department of Public Works combined with space constraints at City
Hall lead to a recommendation that the Director of Public Works be
relocated along with the bulk of the department to the consolidated public
works shop.
Recommendation 66: Relocate the Director of Public

Works to the proposed consolidated public works
shop. Simply put, the DPW is in need of its leader.
Recognizing the role of the Director of Public Works and
department in coordinating with other City departments, it
may be prudent to reserve some work space at City Hall
for occasional or scheduled appearances, but the primary
focus for the Director and DPW management needs to be
the Department of Public Works.
Another consistent issue in each bureau pertains to the minimum

qualifications necessary to obtain many DPW jobs, especially those
requiring a specific skill set. Interviews with DPW staff suggest that many
of the individuals hired for skilled labor positions, such as equipment
operator or mechanic, often do not have the experience or training
necessary to adequately perform the job. However, these individuals are
often hired because they meet the “minimum qualifications” for the
position, as defined in the job description. Furthermore, formal training is
not offered upon hire but rather employees are expected to learn on the
job.
Recommendation 67: Review job classifications and

minimum qualifications for all skilled positions in the
Department of Public Works and revise them as
appropriate to include specific requirements

City of Lancaster
concerning experience and/or training. This will be

especially important for equipment operators and
mechanics requiring specific skill sets to safely and
effectively perform their jobs.
As previously mentioned, employee relations are generally viewed as

positive within the Department of Public Works. While employees did not
cite specific concerns regarding labor management relations, interviews
revealed there is a lack of regular cooperation and coordination between
management and labor. Specifically, there are no joint labor-management
committees in place to help facilitate the resolution of issues in a
collaborative manner.
The utilization of joint labor-management committees is a best practice

utilized by thousands of jurisdictions across the country as a collaborative
way to identify and resolve management and employee issues outside of
the normal contract process. These committees often help facilitate an
atmosphere of partnership as opposed to the traditional adversarial
relationship that exists between labor and management.
Recommendation 68: Develop labor-management

committees to identify and resolve management and
employee issues outside the normal contracting
process.
A consistent theme throughout the Department of Public Works is the lack

of readily available workload and performance measurement data. A
robust performance measurement system is essential for any community
hoping to accurately quantify what they do, how well they do it, and how
much it actually costs. The use of performance measures as a
management and accountability tool is a best practice utilized by
countless jurisdictions to vastly help a community improve service
delivery. To help facilitate the development of useful performance
measures in the DPW, a list of suggested measures are provided in
Attachment I.
Recommendation 69: Implement a performance

measurement system in the Department of Public
Works. As stated earlier, this is an important step for the
City to take on a City-wide basis.
The City of Lancaster’s sewer system predominately consists of old

combined sewers carrying both sanitary sewage and stormwater.
Replacement of these sewers with a separated system will take many
years and have a substantial cost. Furthermore, stormwater
management regulations will require a significant investment to achieve
compliance and implement best management practices.

Financial Analysis
Recommendation 70: Institute a stormwater utility to

fund storm water management and capital
expenditures. Stormwater utilities allow for the allocation
of costs on a cost-of-service basis and are able to apply
fees to tax exempt properties. As with other utilities, the
stormwater utility should be allocated a representative
share of general fund overhead and direct service costs.
Use of Technology
One of the most important components of success in any modern service

organization, public or private, is the effective use of technology.
Technology has the potential to save significant amounts of time and
resources by automating processes, facilitating rapid and consistent
communication among organizational units and individuals, and
precipitating more efficient and effective allocation of scarce resources.
Furthermore, technology allows managers to regularly capture vital
performance data so they may gauge the effectiveness and efficiency of
their programs.
Throughout Management Partners’ review of the Department of Public

Works, a consistent theme prevalent in each bureau was the inadequacy
or, more often than not, non-existence of technology. As such,
Management Partners has identified a number of recommendations for
technological improvements based on best practices utilized in public
works departments across the country.
While there are many applications that have the potential to assist
specific bureau functions, this section will primarily focus on the resources
available to improve department-wide use of technology.
One of the major technological inadequacies in the Department of Public

Works is the lack of a department-wide work order system. Public works
departments across the United States utilize department-wide work order
systems to schedule preventative maintenance and emergency repairs
for everything from facilities, vehicles, and heating, ventilating and air
conditioning (HVAC) equipment to City infrastructure.
Department-wide work order systems allow bureaus the opportunity to

enter repair and maintenance specifications into the system and thereby
automatically generate work orders for preventative maintenance.
Therefore, after initial data entry is completed, labor supervisors are able
to regularly print a list of preventative maintenance assignments for
everything from City vehicles to wastewater pumps.
A department-wide work order system also allows bureaus to

electronically enter work orders for emergency repairs, limiting paper
transaction time and thereby expediting the repair process.

City of Lancaster
Department-wide work order systems also enable managers and

supervisors to conveniently identify the rate with which preventative
maintenance is being completed as well as the prevalence of emergency
repairs. Currently, this sort of performance data is not readily available to
DPW managers, making it difficult to conveniently assess the condition of
equipment and infrastructure as well as the performance of organizational
units.
At this time, the majority of the department does not have access to an
electronic system to manage work orders and preventative maintenance.
Those that do have work order systems maintain non-integrated systems
installed on a single desktop at the initiative of a manager or supervisor.
The one exception is the Bureau of Wastewater, which maintains an

electronic work order system for generating preventative maintenance
requests. However, the system is not sophisticated enough to report how
data concerning the number of preventive maintenance jobs is scheduled
and completed over a specified period of time.
Recommendation 71: Purchase and implement a

department-wide work order system to electronically
schedule and manage preventive maintenance and
emergency work order generation. The system should
be customizable to meet the needs of the Motor Vehicles
Section, Traffic Section, Buildings Maintenance Section,
Bureau of Water, Water Transmission and Distribution, and
Bureau of Wastewater. The work order system should
have the capability to track relevant performance data.
Another technological component the DPW does not utilize is an

inventory management system. Inventory management systems enable
staff to track parts inventories and automatically notify parts managers
when inventory needs to be updated, depending on predefined
specifications. These systems are especially useful in fleet operations as
well as water and wastewater operations, which require the regular
availability of specific parts, such as an oil filter for a 200 dump truck or a
10” valve for the water distribution system. These systems also allow for
the identification and disposal of obsolete parts and improve inventory
control, helping to reduce unnecessary outlays for equipment.
Currently, there is no parts inventory system in the Motor Vehicles

Section, Bureau of Wastewater or Bureau of Water, including T&D. In
fact, Management Partners’ interviews suggest that inventory is not
tracked at all, even in a paper format.
Recommendation 72: Complete an immediate

inventory of parts in the Motor Vehicles Section,
Bureau of Water and Bureau of Wastewater and
institute a paper-based tracking system. A paper-
based tracking system should be put into place until an
electronic inventory tracking system can be installed.

Financial Analysis
Recommendation 73: Purchase and install a

department-wide electronic inventory tracking system.
This system should be incorporated as a module in the
department-wide work order system.
Another opportunity for improvement regarding the use of technology

relates to the department’s use of Geographic Information Systems (GIS).
GIS data can be used to depict and track the condition and location of
infrastructure and can be a vital tool in planning for the replacement and
maintenance of infrastructure. Electronic mapping of infrastructure has
long been adopted by communities as a best practice. GIS provides the
baseline data and information management tools necessary to effectively
manage a community’s infrastructure. When integrated with a work order
system and asset management software, (Recommendations 72 and 73)
GIS becomes a powerful and effective tool for system management,
maintenance and Capital Improvements Program (CIP) programming.
Currently, the Department of Public Works utilizes Lancaster County’s

GIS but does not have the capability to amend or customize data to meet
the specific needs of the department. Essentially, the existing GIS only
provides basic parcel and boundary information and does not include
infrastructure information that is useful to the department, such as a base
layer detailing the water distribution system. Furthermore, there is only
one person in the department that has access to the County GIS and that
individual does not have the expertise or authority to amend the database
or create base layers that would be useful to the DPW.
Recommendation 74: Develop GIS layers that provide

infrastructure information relevant to the Department
of Public Works. Work with Lancaster County GIS to
develop DPW GIS layers. The Water GIS System is under
development and close to completion. Once the layers
are developed, it will important to train DPW staff on how
to access and update relevant GIS data.
GIS by itself is a very useful tool for managing infrastructure information.

At a higher level, an asset management system linked to GIS base maps
provides increased opportunities for maintenance and replacement
planning. Good asset management systems link to both GIS and the
work order system and provide evaluative tools to judge system or facility
condition. Asset management systems provide information to support
preventative maintenance activities and plan for needed capital
improvements. Furthermore, it will aid the City in complying with GASB
34 requirements for calculation of depreciation of the City’s owned
infrastructure.
Recommendation 75: Research and acquire an

integrated asset management system for the
Department of Public Works. At a minimum, modules
should be obtained for pavement management, water

City of Lancaster
distribution and sanitary and storm sewer management.

Other modules, including those for traffic signs, control
devices and trees should be considered when time and
budget permit.
The City network and e-mail system is in serious need of attention.

Efforts are underway to upgrade the system to provide high speed
communications. These efforts should be encouraged and expedited.
The dial-up systems in place at remote facilities are inadequate. A
number of employees have and use non-City e-mail addresses for their
primary communications. This is inappropriate although understandable
given the current system. Unfortunately, the use of private systems for
official communications may lead to both claims for compensation and,
more importantly, issues with public records, access to information and
privacy.
Recommendation 76: Replace the dial-up network

system with higher speed service and plan for
development of fiber where appropriate, and require
the use of City e-mail service for official
communications.
Bureau of Engineering
In the City of Lancaster, property owners are responsible for the

maintenance and repair of curbs and gutters in front of their property. The
Bureau of Engineering is staffed with four FTEs including a civil engineer,
two engineering aids and a secretary who handle matters related to curbs
and gutters.
One engineering technician inspects work completed on all curbs and

gutters, responds to complaints regarding curbs and gutters, and
supervises the replacement/retrofit of curbs and gutters to meet ADA
compliance. Another engineering technician serves as the intermediary
between the Pennsylvania One Call System, the statewide utility locate
service, and local utilities to locate underground utility infrastructure at job
sites and provide inspection services for all street opening permits.
Permits for curb and gutter repair and street openings are reviewed and
issued by the bureau’s secretary. Once the permit is issued, the property
owner is required to schedule inspections prior to the completion of work.
Before a permit is issued, the permit application and specifications should
be reviewed by an engineering technician to ensure that work meets all
code and safety requirements.
Recommendation 77: Revise the curb and gutter

permit and street opening permit process to ensure
that each permit application is reviewed by an
engineering technician before the secretary issues
each permit.

Financial Analysis
Also, the Bureau of Engineering webpage on the City of Lancaster

website offers only sparse information about the requirements of permit
issuance. Furthermore, property owners cannot download a permit
application via the website, but must pick up a permit application at City
Hall, which is an unnecessary inconvenience.
Recommendation 78: Post permit applications on the

City of Lancaster website and update the Bureau of
Engineering webpage to include additional information
regarding curb and gutter and street opening permit
processes.
The civil engineer completes all engineering reviews for development and
subdivision plans, manages engineering design and building renovation
contracts, and acts as a project manager for all Department of Public
Works projects. The civil engineer is also responsible for managing the
consent decree regarding curb and sidewalk ADA compliance.
Currently, the Bureau of Engineering does not complete in-house

engineering design but does manage contracts with engineering design
firms. This is due partly to the fact that the Bureau of Engineering has
been allocated additional workload, such as managing the ADA consent
decree and partly due to the fact that the bureau lacks the expertise and
technological resources to complete in-house design.
Currently, the civil engineer for the City of Lancaster is not a certified
Professional Engineer (P.E.). This means that he cannot legally certify
design work and is therefore unqualified to complete design work for the
City of Lancaster except under the direction of a licensed Professional
Engineer who must review and stamp any plans issued for construction.
It is a nationwide standard and best practice for civil engineers working in

a municipal environment to be certified Professional Engineers and it is
important for the City of Lancaster’s civil engineer to hold that
certification.
Recommendation 79: Hire a licensed professional civil

engineer for the position of Deputy Director of Public
Works/City Engineer. Give responsible charge of the
Bureau of Engineering to this new position. This split title
is a common occurrence in public works organizations.
The department has authorization to fill the deputy director
position and including the title of City Engineer will both
make the position more attractive to candidates and
provide a licensed professional to manage the engineering
function.
Use of technology within the Bureau of Engineering, like the DPW in

general, can best be described as limited. The bureau does not have
access to CAD (computer aided drafting) software or GIS. The historic
lack of engineering-related technology means that all infrastructure maps

City of Lancaster
are drafted on paper, which is difficult to replicate for storage and

preservation purposes, and time consuming to update. Furthermore,
there is only one copy of each water distribution infrastructure map and
they are all stored in one location, which makes them susceptible to fire
or any other catastrophic event.
The Department of Public Works is currently in the process of scanning

the existing paper maps but it will be important to implement a CAD
system department-wide and ensure that map updates can be efficiently
completed and copies of vital maps duplicated and electronically stored.
Recommendation 80: Implement an AutoCAD system

for use in the Bureau of Engineering and mandate its
use. AutoCAD is the standard for municipal CAD software
although other vendors are available. Existing personnel
will require equipment and training to effectively use the
AutoCAD system.
The civil engineer is required to review engineering plans for private

developments as well as subdivision plans. Within this capacity, the
Bureau of Engineering is required to coordinate with the Department of
Economic Development and Neighborhood Revitalization (EDNR) to
review its engineering plans. Recommendation 135 in the Department of
Economic Development and Neighborhood Revitalization section of this
report recommends the purchase and installation of comprehensive
development review software. The Bureau of Engineering should have
access to that system and be trained in its use.
Recommendation 81: Work with EDNR to define the

specifications of comprehensive development review
software that integrates all development review
personnel under one electronic plan review system.
The system should track valuable workload and
performance data such as the number of plans reviewed
by type and the average review time per plan.
In addition to the four FTEs that are organized under the Bureau of
Engineering, the civil engineer is assigned another direct report from the
Transmissions and Distribution Section of the Bureau of Water. This
employee, titled Water Distribution Supervisor, personally drafted the
paper maps detailing the City’s T&D infrastructure and is solely
responsible for maintaining and updating those maps.
As previously mentioned, the City is currently in the process of digitizing

those maps, and with the addition of an AutoCAD system, the services of
a manual drafter would no longer be required. Furthermore, the position
of Water Distribution Supervisor is already filled under the T&D Section of
the Bureau of Water.
This employee has worked for the City, in one capacity or another, since
1956 and has vast amounts of institutional knowledge concerning the

Financial Analysis
City’s transmission and distribution infrastructure. It is essential that the

institutional knowledge held by this employee be captured; however, the
position is now redundant, and the services of a manual drafter will be
unnecessary once an AutoCAD system is implemented.
Recommendation 82: Eliminate the position of manual

drafter currently reporting to the Bureau of
Engineering’s civil engineer and convert it to a GIS
Technician position. The City should, however, seek to
retain the incumbent employee as a part-time consultant
for the purpose of capturing the institutional knowledge
held by this individual.
The Bureau of Engineering has a limited staff and capacity for

engineering and project management. In its current configuration, the
bureau is limited to development review, some permitting and the ADA
ramp program. While this could continue indefinitely, it is not a good
solution for the Department of Public Works or the City.
As already suggested, the Bureau of Engineering needs to modernize

and be placed under the direct leadership of a professional engineer.
Many of the technological recommendations (GIS, asset management,
etc.) suggested in this report will require professional support to
administer. Recommendation 58 in the Administrative Service section of
this report articulates the need for a GIS Manager for the City. The
current engineering configuration is simply not efficient. Existing staff
lacks necessary technical skill, the number of staff is inadequate to cover
for absences, design and project management services must be
contracted and existing technology is archaic.
There are two engineers located at the Bureau of Water’s water treatment
facilities that have responsibility for project management for that utility but
have little connection with the Bureau of Engineering. These engineering
positions would be better utilized in a redefined Bureau of Engineering,
performing the duties of a traditional public works department, including
engineering design and project management.
Recommendation 83: Consolidate all engineering

functions under the Deputy Director of Public
Works/City Engineer. Bringing all engineering related
staff together is the first step to rebuild a functioning
engineering group. It allows for improved work coverage,
coordinated CIP efforts and provides the basis for a
sustainable division of staff resources to better manage
engineering services. The department has anticipated
this modification and agrees with this change going
forward.
The Bureau of Engineering can be developed internally through

investment in staff and technology or externally by contracting with a
professional engineering firm. Both have advantages and disadvantages

City of Lancaster
and both are widely practiced by communities across the country. In

large part, the decision to develop in-house capabilities is based on
community preference, the availability to compete in the market for
qualified, professional staff, and the existence of a regular capital
improvement work and project workload.
Contracting engineering services can be done through the development

of a comprehensive request for proposals outlining services to be
provided. The primary advantage of contracting is access to a broader
range of engineering skills and services. A contract engineering services
firm generally has access to a larger group of professional staff and can
assign project staff on an “as needed” basis, while still maintaining a core
staff for primary recurring functions. If the department is unable to
develop and support a professional Bureau of Engineering, it should
consider eliminating existing positions and issuing a contract for
necessary services.
Recommendation 84: Investigate the use of a contract

engineering services firm to provide all engineering
services for the Bureau for Engineering. A contract
engineering services firm could provide all services
currently provided by the bureau and could be managed by
the Deputy Director of Public Works/City Engineer position.
A contract with an engineering firm should be governed by
quantified performance expectations and the firm should
be required to produce and store engineering documents
in a technologically advanced fashion.
Bureau of Streets
The Bureau of Streets operates out of an aging and inefficient facility and
is organized into three sections: Streets, Motor Vehicles and Traffic.
These sections are essentially responsible for maintaining the City’s
traffic-related infrastructure and for providing maintenance services for
the City’s fleet. The bureau is managed by an Operations Superintendent
who reports directly to the Director of Public Works.
Staffing in the bureau is budgeted at 28 FTEs, including 20 in Streets,

four in Motor Vehicles and four in Traffic.
Interviews with DPW personnel revealed there are a number of

responsibilities that the Bureau of Streets performs well, which are worth
noting in this report. Several staff members spoke highly of the bureau’s
willingness to provide inter-bureau and inter-departmental assistance
when requested. The bureau is also viewed as well-managed and there
are good relations between supervisors and front-line staff.
Another positive component worth noting pertains to the bureau’s use of

large scale purchasing agreements. For example, while each department
“owns” and budgets for their own vehicle maintenance and replacement,
the Operations Superintendent serves as the purchasing coordinator.

Financial Analysis
Having a centralized purchasing coordinator allows the City to take better

advantage of cooperative purchasing agreements and save money
through economies of scale, which the bureau does on a regular basis.
Streets
The Streets Section of the bureau is staffed with 20 FTEs who provide
various street maintenance and repair services including street sweeping,
snow and ice removal, pavement work, leaf pickup, and road
reconstruction. There are eleven employees dedicated to street
maintenance crews, eight employees dedicated to street sweeping
activities and one employee dedicated to bureau-wide administrative
functions, which equated to twenty-one total employees. There are an
additional four laborers working with under the Streets Section who are
funded out of the Water and Wastewater enterprise funds.
The principle issue facing the Streets Section is the lack of a pavement
rating system. The City of Lancaster, as the oldest inland city in the
United States, has a well aged infrastructure. However, there is no
system in place to prioritize regular maintenance or capital repairs. It is
both an operational and financial best practice for jurisdictions to utilize
pavement condition rating systems to prioritize work.
Recommendation 85: Adopt a pavement condition

rating system and complete a pavement condition
inventory to use as a basis for scheduling regular
maintenance and street reconstruction. This inventory
should be updated on a regular basis and should serve as
the foundation for all capital funding requests.
The Streets Section has significant internal capability but seems to be

primarily focused on maintenance activities, responding to complaints or
seasonal activities. While some of this will always be necessary,
maintenance activities should be performed – to the extent possible – as
part of a planned program designed to maximize the efficient use of
resources.
Programming provides an opportunity to schedule specific maintenance

activities when and where they will be the most effective, and to assign
work in efficient blocks rather than responding randomly to complaints
throughout the City. Developing annual programming and assigning
designated budgets for functions such as street resurfacing, major
patching, crack filling and other activities is part of a comprehensive
maintenance function that can be effectively used to supplement the
department’s CIP and, if effectively developed and applied, extend the life
of the City’s infrastructure.
Recommendation 86: Develop and implement a

comprehensive streets maintenance program.
Preventative maintenance activities are equally important
to the current activities that revolve around fixing what is

City of Lancaster
broken. It is important to develop and use Standard

Operating Procedures (SOP) for all maintenance activities.
The use of SOPs standardizes maintenance activities and
provides the basis for consistent measurable performance.
SOPs should include a definition of adequate crew size for
each defined activity. Once programming is developed and
implemented, it is important that each program be
reviewed regularly, and that the cost and resulting benefits
are analyzed and understood.
In addition to improving operational efficiency, maintenance programming

helps identify the services provided by the Streets Section and resources
necessary to perform them. The Streets Section needs to re-evaluate its
identity and service portfolio to maximize its use of staff and equipment.
Looking at the overall responsibilities of the Streets Section, considering
both system needs and available resources will allow efficient
programming, and help identify staff, equipment and contract service
requirements.
Recommendation 87: Evaluate Streets Section

services and define resource requirements. Looking at
services from a programming perspective will allow the
Streets Section to assess priorities, focus on those
services that it is best equipped to handle, allow
appropriate selection of equipment and use contract
services appropriately. It also provides the opportunity to
focus training in order to develop employee skills to the
utmost benefit.
Motor Vehicles
The Motor Vehicle Section is staffed with four FTEs, including one
secretary, one mechanic dedicated exclusively to police, and two
mechanics devoted to the remainder of the City fleet. A fire mechanic
works out of the Motor Vehicles garage but this position is funded from
the fire department budget.
The fleet operation in the City of Lancaster is funded through the general
fund. However, in many jurisdictions, fleet operations are organized as
internal service funds, a type of enterprise fund. Internal service funds
provide services to internal departments and, by statute, are required to
fully fund the cost of operations, including personnel costs, through user
fees. Fleet operations are ideal units for consideration as internal
service funds because mechanic services are easily definable units of
work where costs can be specifically attributed to parts, equipment and
labor. This enables the development of a fee structure that fully funds the
services provided, freeing up general fund monies to upgrade technology
or increase staffing as appropriate.

Financial Analysis
Recommendation 88: Redefine the Motor Vehicle

Section as an internal service fund that is fully funded
through fees billed to City of Lancaster departments.
Currently the section bills the Enterprise Funds for parts
and service, and the Police Bureau is charged for parts,
but not service. The system for billing should be universal
so operating costs are fully loaded with the appropriate
operating budgets.
The replacement of fleet vehicles by department and function is

somewhat erratic and not entirely based on either fleet condition or
maintenance and service costs. Many communities expand fleet services
by adding a replacement component to departmental service charges and
assigning fleet ownership to a centralized division with responsibility for
the replacement of vehicles on a scheduled basis. This practice has a
tendency to equalize annual fleet replacement expenses for the City and
result in the regular replacement of vehicles as they reach the end of their
effective service lives.
Recommendation 89: Centralize fleet ownership under

the Motor Vehicle Section. Centralizing fleet ownership
allows for vehicle replacement on an “as needed” basis
and flattens the annual replacement budget for each City
department as vehicles are replaced through a vehicle
replacement reserve instead of an annual budget
appropriation.
Regardless of whether the Motor Vehicles Section is transformed into an

internal service fund, it will be important to install a parts inventory
tracking system in Motor Vehicles. Currently, there is no process in place
to identify how many of a given part are in stock, or even which parts are
in stock. In order to ensure timely service and effectively manage City
assets, it will be important to institute an effective inventory management
system.
Recommendation 90: Implement an inventory tracking

system in the Motor Vehicles Section. Coordinate with
Recommendation 73.
Traffic
The Traffic Section is responsible for managing the installation, repair and
maintenance of approximately 20,000 traffic control and street
identification signs, 119 signalized intersections, 750 school crossings
and the centerline striping program. Centerline striping and cross-walk
marking are contracted services. Partly because of budget and staff
constraints, there is no curb painting to designate “no parking” areas.
The Traffic Section is in the beginning stages of a seven-year program to
replace regulatory Type 3 signage. There is a supervisor and three
employees in the Traffic Section.

City of Lancaster
Prior to 2007, all street signs were fabricated in-house by Traffic Section
staff. This process is rarely cost-effective on a municipal basis if labor
and overhead costs are considered properly, particularly for readily
available standard signs such as stop, yield, etc.
Recommendation 91: Purchase pre-made signs for

generic regulatory control. This change occurred during
the course of this review. Internal fabrication of signs
should focus on “one of a kind” or street name
identification signs that would need to be custom made by
a supplier or on re-facing existing signs in suitable
condition.
Historically, the Traffic Section maintained a paper map inventory of

signs, striping and signals. This practice ended in 1993 as the result of
budget cuts. Asset management systems with sign inventory and
maintenance programs are readily available and should be considered as
part of developing an asset management system for the department.
Recommendation 92: Purchase and implement a sign

management module for the asset management
system selected for use by the department. This
module will provide service information as well as location
information on the sign inventory and can be used to plan
and schedule non-emergency maintenance and repair of
the City’s sign inventory.
Sign replacement is currently based on call-ins or visual observation of

damaged or missing signs. Traffic signs lose their reflectivity over time
and become increasingly difficult to read at night. A good sign
maintenance program will include the scheduled replacement of signs as
they near the end of their useful life.
Recommendation 93: Develop a sign replacement

program using asset management software to identify
signs past their useful lives. Using this information, the
Traffic Section should develop an annual maintenance
budget for the non-emergency replacement of sign
inventory.
Signal maintenance is currently performed by a single signal technician

supported by contract service as necessary. Some effort is being made
to train additional personnel to assist with this function and provide back-
up in the event of absence. Signal maintenance is somewhat of a
specialty function and a need that is shared by all communities with signal
devices. A one-person crew is difficult to maintain and justify given the
need to provide continuous maintenance coverage. This is a service that
is frequently centralized under a single regional service provider who may
provide service to multiple jurisdictions.

Financial Analysis
Recommendation 94: Negotiate with surrounding

communities for the common provision of signal
maintenance services. This service is best provided on a
regional basis to establish the workload necessary to
maintain adequate staff and equipment. Failing to achieve
regional cooperation, the department should evaluate the
cost and benefit of contracting for this service on a
permanent basis.
Bureau of Parks and Public Property
The Bureau of Parks and Public Property operates out of an aging but
generally functional facility and has responsibility for both Parks and
Building Maintenance. These two sections are generally unrelated and
there is little interaction between staff except at the supervisory level and
through sharing a common building. The current manager for the bureau
was hired for his expertise in building maintenance and became
responsible for Parks due to a vacancy in the Operations Manager
position. The manager estimates that as much as 90% of his time is
spent on Parks issues and management. This focus on parks has
impacted the Building Maintenance function and the implementation of
preventative maintenance programming and effective work order
systems.
Recommendation 95: Fill the vacant Operations

Manager position. This will allow the City to re-separate
facilities maintenance and parks. As discussed in the
following sections, the City building maintenance needs
are extensive and need attention. Parks and Building
Maintenance have no significant overlap and expecting a
single manager to be responsible leaves both short.
Parks
The Parks Section provides maintenance and grounds crew services for
the City’s Parks as well as a number of miscellaneous activities such as
graffiti removal and special event set up. Budgeted staffing for the Parks
Section is 22 full time employees, including 19 full time personnel, five
seasonal employees, and three tree trimmers.
The Parks Sections has been traditionally used as an entry point to City
employment. As such, Parks employees often use Parks as a
springboard to more desirable jobs in other City departments and
bureaus. One reason for this, according to employee interviews, is that
Parks Section wages are at the low end of the City pay scale, which is
manifested in the quality of entry level employees and the perceived high
turnover rate. In light of this information, Management Partners sought to
compare the Lancaster Parks Section wage structure with the wage
structures of benchmark communities. However, those communities
were unresponsive to Management Partners’ requests for information.

City of Lancaster
Regardless, employee interviews indicate that this is an issue that should

be evaluated not only for Parks, but also for the entire City. As such, this
issue is addressed in the Human Resources section of this report under
Recommendation 38.
Long’s Park was established through a donation of land and has both a
foundation and an endowment fund to promote park activities,
programming and capital needs. The Park has dedicated staff and
operates almost at arm’s length from the rest of the Parks Section. The
Park has acquired an identity separate from the Parks Section and is
perceived as being different.
Long’s Park has superior mowing equipment that is not shared with the
remainder of the Parks Section, partially because of the need to train
operators in its use. This equipment sits idle when not in use for the
Park. At the same time, mowing equipment for the rest of the Parks
Section is less than optimal. Joint planning of operational equipment,
staff training and actual sharing of equipment has the potential to improve
performance and efficiency.
Recommendation 96: Train additional Parks staff in

the use of equipment currently dedicated to Long’s
Park and establish procedures for sharing the
equipment. Future equipment acquisitions should include
an overall use plan maximizing the benefit for the entire
Parks Section.
Long’s Park has a petting zoo and staff responsible for the year-round
care of its animals. The care of livestock is a highly specialized function
that requires trained staff. Furthermore, the petting zoo is a seasonal
operation. The cost of maintaining staff and caring for the animals should
be determined and compared to the cost of private operation.
Recommendation 97: Investigate private operation of

the petting zoo at Long’s Park. If private operation is not
cost effective, consider off-site care of zoo animals during
months when the zoo is closed.
Equipment at the Parks Section is in need of evaluation. Current vehicles

and equipment include a 1986 dump truck and a 1972 stump grinder. A
number of comments were made to the effect that Parks equipment is
generally older than that for other departments and more difficult to get
replaced.
Recommendation 98: Evaluate the Parks Section fleet

for age, condition and suitability for use. Develop a
plan for providing the Parks Section with appropriate
equipment in good operating condition.
Franklin & Marshall College began the process of developing a tree

inventory for the City. This work is incomplete and should be finished and

Financial Analysis
incorporated into a tree inventory and management program. Once

completed, the inventory should be kept current by Parks Section staff.
Recommendation 99: Negotiate with Franklin &

Marshall College to resume work on the tree inventory
system. If Franklin & Marshall College is unwilling or
unable to continue work, consider training seasonal
employees or light duty employees from the Parks Section
or other DPW bureaus and have them complete the
inventory.
The City of Lancaster tree crew trims trees under the direction of its
arborist. Tree trimming is generally done from a bucket truck, but crews
are known to occasionally climb trees for trimming. This is a physical
activity with a substantial degree of risk, particularly when performed
infrequently or by inexperienced staff. This practice should be reviewed
with the City’s risk manager and evaluated with respect to its potential for
contracting.
Recommendation 100: Review the practice of tree

climbing and consider using a contract tree service
when tree trimming requires more than the use of a
bucket truck.
Building Maintenance Section
The Building Maintenance Section is responsible for the maintenance and

custodial care of all City buildings and facilities. There are nine full time
employees staffed under the Buildings Section, including building trades
and maintenance personnel.
There is no facilities condition assessment, only a limited preventative

maintenance program and an unknown backlog of needed facilities
improvements.
Recommendation 101: Contract for an initial condition

assessment of existing City buildings and facilities.
This condition assessment should provide the basis for
CIP development and the scheduling of both repairs and
preventative maintenance activities.
Building Maintenance performs some scheduled maintenance and has a

software program that will eventually be of value in scheduling work. At
this time, data entry is being done exclusively by the Facilities manager.
Due to other obligations, completion of this task is years away from
achievement.

City of Lancaster
Recommendation 102: Assign light-duty employees or

other resources to complete the facilities management
data base. It is essential that scheduled and preventative
maintenance be completed on a regular basis to maintain
facilities and equipment and to minimize both repair and
operating costs.
Job classifications for Building Maintenance staff are out of date and need
to be reviewed and updated to make sure that the Building Maintenance
Section has the skills necessary to perform essential and routine
maintenance activities. The Building Maintenance Section’s need for
skilled trade positions such as plumbers and electricians should be
evaluated and a decision made as to whether positions should be created
and maintained or whether this work should be contracted to licensed
service providers. The addition of maintenance positions should be
evaluated after completion of the building and facilities condition
assessment.
Recommendation 103: Update Building Maintenance

position descriptions to match current and needed job
functions. Reconsider staffing make-up and needs after
completion of the building assessment and full
implementation of the preventative maintenance program
now in development.
Bureau of Solid Waste and Recycling
The Bureau of Solid Waste and Recycling was established in 2006 to

provide a single source provider for collection, disposal and recycling
services to City of Lancaster residents. Originally intended to provide
service to all residents, the ordinance was modified to allow permitted
independent collectors to continue providing service for the length of their
existing collection contracts.
At this point there are 13 permitted collectors with approximately 2,000

private collection contracts out of a total estimated potential customer
base of 17,500. All new residents and those whose contracts expire are
required to become customers of the Bureau of Solid Waste and
Recycling. The bureau operates as an enterprise fund with a standard
fee of $200 per year. This fee was stated to be competitive with that
charged by permitted haulers and in most cases, approximately $90 of
this amount goes to the contract hauler, $80 goes for disposal and $30 for
administration.
The City single hauler program was designed specifically for single family
residences and multiple family buildings with four or fewer dwelling units.
The program also requires residents to contract for the disposal of
appliances, large items (any dimension in excess of six feet), tires and
remodeling debris. Commercial, multifamily, institutional and industrial

Financial Analysis
properties must also contract with a permitted hauler for collection

service.
A number of the permitted collectors run shoestring operations with

inadequate equipment. Some are in violation of permit requirements and
are being actively pursued for permit revocation.
The Bureau of Solid Waste and Recycling operation is new and still
evolving. The Bureau Manager is a solid waste professional with
significant experience.
The operation is difficult to effectively evaluate because of its relative lack

of history and many of the issues facing the bureau are related to start-up
and the lack of historical operating experience.
As an enterprise fund, the Bureau of Solid Waste and Recycling should

be self-supporting, including payment for appropriate City support
services. For 2007 the fund is paying direct costs, but not indirect costs.
The lack of these charges in the 2007 adopted budget is understandable
due to the lack of budget history, but also may lead to claims that the City
is underwriting the program to lower user fees and subsidize solid waste
and recycling services.
Recommendation 104: Budget appropriate

contributions to the General Fund for collection,
disposal and recycling services received and
operational overhead in all future budgets. Given the
start-up nature of this enterprise, the City of Lancaster may
choose to phase in full cost recovery of direct services and
overhead provided by general fund supported
departments.
The initial focus of the Bureau of Solid Waste and Recycling is centered
on immediate system needs and the provision of quality service to
customers. This is completely appropriate. There are a number of
immediate priorities for the bureau and several others that can be
considered as time permits.
Pennsylvania has a stated recycling goal of removing 30% of residential

waste from the waste stream. Current recycling efforts in the City of
Lancaster are estimated to divert approximately 12% of waste from
landfill. This 12% figure is probably an underestimate, and consensus is
that participation is steadily improving, but work still needs to be done to
improve resident participation. Two major methods of increasing
recycling participation are education and enforcement. At this point in the
process, education is greatly preferred.
Recommendation 105: Promote recycling programs

through increased advertising, direct communication,
media releases and improved web-site development.
Promoting recycling will be a challenge with so much of

City of Lancaster
current effort focused on start up and initial operations.

Regardless, some time and resources should be dedicated
toward improving recycling participation.
One of the challenges in a system with multiple collection agencies is

keeping track of customers and making sure that fees are charged to
everyone receiving service. The Bureau of Solid Waste and Recycling
has made a good start on this by requiring permitted collectors to operate
on different days from scheduled City pick-up. In any event, it is a fairly
simple process for residents to put their waste out for collection on their
scheduled collection day and have the waste collected regardless of
customer status. The extent of this problem is unknown, but probably
fairly minor. The situation deserves to be monitored to prevent abuse.
Recommendation 106: Monitor the collection of waste

from non-customers. Perhaps the easiest method to
accomplish this is to periodically sample different routes
and compare collections with accounts. If samples
indicate a significant problem, it may be necessary to
conduct a complete route audit.
Initial solid waste and recycling services are somewhat limited in scope;
residents are required to make use of permitted haulers for special
collection resulting in confusion and an overall loss of economic
efficiency. The current program was a compromise after complaints
were made by existing haulers and needs to be evaluated and revisited
once sufficient operating experience is gained. As an enterprise fund, the
Bureau of Solid Waste and Recycling should consider developing a
business plan containing short-, medium- and long-term goals and
objectives. For the purpose of operational efficiency and customer
convenience, consideration should be given to expansion of the single
provider program and inclusion of needed services.
Recommendation 107: Develop a mid- and long-range

waste and recycling services plan. This plan should
include a strategy and timeline for becoming the sole solid
waste provider for residential customers, and expansion of
services to include multi-family, bulky waste and appliance
collection and disposal.
Bureau of Water
The Bureau of Water is in the beginning stages of a major capital

improvement program to upgrade its water treatment capabilities through
the construction of two new water treatment plants. These facilities will
be located on the same sites as the existing water treatment plants and
will utilize membrane filtration technology. Construction is expected to be
complete in approximately two and a half years.

Financial Analysis
The two existing water treatment plants operate independently from each
other with separate management and staff. The Conestoga Plant is
staffed with seventeen full time employees and the Susquehanna Plant is
staffed with eighteen full time employees. The plants have limited or no
automation and are staffed 24 hours per day, 7 days per week with two
operators. Management and maintenance staff work a traditional five-day
work week. The use of computer technology is limited and both facilities
have only dial-up access to internet and e-mail service.
The new treatment facilities will be highly automated with sophisticated

computer control systems. Plans are being made to provide the plants
with access to high speed internet service.
The new treatment facilities will be given a shakedown period while the
existing plants are kept in service. It was stated that the plants will need
to be kept running in parallel for as long as one year to demonstrate the
reliability of the new facilities to the Pennsylvania Department of
Environmental Protection. This transition period will be difficult, but once
completed, the new facilities are likely to require fewer staff to operate
effectively.
Recommendation 108: Follow the staffing and

management recommendations for the new water
treatment facilities provided by the design engineer.
Consideration may be given to integrating management
and maintenance staffs as well as minimizing shift staff by
training all positions at both facilities.
Replacement of the water treatment plants will also include modern

Supervisory Control And Data Acquisition (SCADA) controls which should
greatly improve operations. There are other software needs that are
unlikely to be resolved through the plant projects. These include a
functioning inventory control system, maintenance management software,
work order systems, or asset management software for the distribution
system. All of these are important and need to be addressed.
Recommendation 109: Evaluate and acquire

operational software and equipment requirements for
the water utility. At a minimum, consideration should be
given to systems for inventory control, maintenance
management, work order generation, asset management
and system modeling.
There are 45,570 metered water accounts served by the Bureau of

Water. Most of the meters have been upgraded to “touch pad”
technology, eliminating the need to manually record meter readings. This
process is not complete and there are still 3,476 manual read meters in
the system. Manual read is extremely costly and even the touch pad
system is aging technology. Radio read meters require significantly less
labor for the reading process and are being widely adopted across the

City of Lancaster
country. These meters represent a major opportunity for labor savings,

particularly over manually read meters.
City staff cannot read all meters within a given billing cycle, leading to
many estimated bills that increases tax collection workloads. Up to 53%
of customers received an estimated bill in recent billing cycles. Table 38
below shows the number of accounts read, versus the number estimated
each month for the last year, and shows the percentage each were
estimated at every month. Please note that the May 2007 data was for
only part of the month.
TABLE 38: WATER METER READINGS VERSUS ESTIMATES, MAY 2006 THROUGH MAY
2007
Number of Number of Percent of

Meters Meters Meters
Month Actually Read Estimated Estimated
May 2006 5,552 743 11.8%
June 2006 14,675 638 4.2%
July 2006 12,117 1,361 10.1%
August 2006 16,599 3,834 18.8%
September 2006 12,435 846 6.4%
October 2006 16,495 814 4.7%
November 2006 11,900 2,666 18.3%
December 2006 13,057 1,878 12.6%
January 2007 13,132 1,878 12.5%
February 2007* 6,072 6,936 53.3%
March 2007* 10,148 6,776 40.0%
April 2007* 12,575 4,800 27.6%
May 2007* 1,446 3,313 69.6%
* The high number of estimated readings during this cycle was due
to employees on light-duty and workers compensation which made
them unavailable for meter reading duties.

Financial Analysis
Recommendation 110: Adopt a program to replace

manual read and touch pad meters with radio read
meters. All new meters installed should be required to be
radio read. Installation of replacement meters should be
phased to meet budget requirements but, at a minimum,
should be completed in conjunction with the scheduled
meter testing cycle when staff must access the meters for
testing purposes. Drive-by wireless reads would be one
approach and another would require a City-wide wireless
network that could provide reads across the City in real
time. As efficiencies are realized, fewer meter reading staff
may be needed. Reduced labor expenses could help pay
for the installation and operation of a wireless network.
Costs for deployment of a municipal WiFi network range
from $40,000 to $60,000 per square mile.
The existing 3,476 manual read meters are inefficient and need to be
replaced in a timely fashion. Part of the problem is related to gaining
access to the properties where they are located. It may be necessary to
schedule hours on weekends or early mornings or evenings to
accommodate customer needs. If necessary, the Bureau of Water should
withhold service from any customer refusing reasonable access. The
purchase of radio read meters negates the need to coordinate with
property owners in order to regularly read meters.
Recommendation 111: Develop and implement a plan

for replacing all manual read meters within the next
budget cycle. The manual read system is archaic and
needs to be replaced as soon as practicable.
In addition to the provision of safe, quality drinking water, water utilities

are charged with providing adequate flow and pressure for fire protection
and public safety. One of the major design criteria for distribution
systems is the provision of adequate water supply to support fire
suppression efforts. Fire insurance ratings are largely based on the
ability to deliver sufficient water supply to a given site. The City of
Lancaster’s water distribution system has undersized pipe in some
locations and almost certainly has areas of questionable supply. Best
practice is to flow test fire hydrants and measure and record flow rates.
In many communities, hydrants should be color coded to visibly indicate
flow rating to the fire department. Very low flow areas should be added to
the capital improvement program.
Recommendation 112: Develop and implement a flow

testing program to evaluate the delivery capabilities of
the City of Lancaster water distribution system.
Information should be captured and recorded on a system
map that should be shared with the Bureau of Engineering
and the fire department. Hydrants should be painted in
accordance with rated flows and low flow areas should be

City of Lancaster
investigated and included in future capital budgets for

replacement.
The water main system in the City of Lancaster is old and includes a
number of undersized pipelines that could lead to pressure and flow
problems. These areas need to be identified and included in capital
budget programming.
Recommendation 113: Use the Water CAD model to

identify pressure and low flow problems. Areas of low
pressure and/or flow identified through the modeling
process should be scheduled for improvement or
replacement on a prioritized basis.
The water system has areas that have continuing red water (oxidized
iron) problems. These are an annoyance and will be particularly
frustrating to customers when the new treatment plants come on-line.
Recommendation 114: Define areas of red water

occurrence and develop a capital spending plan to
address them.
One of the aspects of a good water maintenance program is an annual

valve exercising program. The Bureau of Water had such a program in
place but has stopped because of damage to the pipeline caused by
turning the valves and the shortage of funds to make identified repairs.
To date, interviewees suggest that there have been few problems
isolating main breaks, but this issue needs to be addressed.
Recommendation 115: Reinstitute a valve exercise

program with a dedicated budget for valve
replacement and associated system repairs. Valve
replacement should be in conjunction with a master plan
for system upgrade.
T&D management staff expressed some frustration at the inability to get

staff to come in for emergency work. In many cases, the work crew ends
up being composed of mostly management personnel. This situation was
noted by focus group participants as a problem.
Recommendation 116: Form a joint

union/management committee with participation from
the Personnel Department to review and potentially
modify T&D’s call-in practices to encourage broader
participation.
There is currently no compensation offered for being on call at T&D.

Common practice at utilities is to assign an on-call person for a period of
time (frequently on a week-to-week basis) and to compensate them in
some manner for this responsibility.

Financial Analysis
Recommendation 117: Develop a compensation plan

to encourage employees to participate in sharing the
responsibility for being on call.
The water utility currently makes both a budgeted contribution to the City
general fund and other, less regular, distributions representing a return on
investment to the City. It is common practice for utilities to compensate
general fund accounts for direct services received. These services may
include finance, personnel, engineering, department management,
insurance and other quantifiable costs incurred by the utility. Additionally,
many communities charge a payment in lieu of taxes charge (frequently
referred to as PILOT) to compensate for indirect costs such as public
safety, use of streets and other amenities normally paid for through the
tax rate.
Recommendation 118: Institute a payment in lieu of

taxes charge to the water utility. This charge should be
made in addition to direct charges for quantifiable services
provided.
Bureau of Wastewater
The Bureau of Wastewater is responsible for the collection and treatment

of wastewater. Wastewater is staffed with a total of forty-seven full time
employees, including six in the administrative section, eleven in
collections, three in pumping, nineteen in treatment, and four grounds
crew personnel. Wastewater utility personnel operate and maintain one
wastewater treatment facility and twenty-four pump stations
The wastewater plant has not undergone major improvements in 21

years. Maintenance needs were communicated as being significant and
the facility lacks modern control software that would allow more efficient
operation.
Recommendation 119: Contract for the development

of a facilities plan for the modernization of the
wastewater treatment plant. The wastewater treatment
plant needs to be professionally evaluated for the purpose
of developing a facilities plan that will provide the basis for
development of a capital improvement plan.
A lime stabilization facility is currently being constructed that will increase

the percentage of solids in the sludge to reduce the cost of disposal.
Under a grandfather clause, the City of Lancaster is permitted to landfill
sludge. Efforts are underway to prepare request for proposals (RFPs) for
the land application of sludge which could prove to be a more cost
effective solution than land filling. Treated sludge has some value as a
soil conditioner and land application is a preferred method of disposal.
Lime stabilization is a common treatment process, but one that is

City of Lancaster
unfamiliar to the existing staff who will be responsible for operating the
new facility.
Recommendation 120: Encourage management and

staff that will be assigned to the lime stabilization
facility to become familiar with the process in advance
of construction completion. Consider allowing key
employees to tour operating facilities at other plants.
It currently takes three years of experience before someone can become

a licensed wastewater water treatment operator in Pennsylvania. While
the three years is required to obtain the license, the licensing exam can
be taken at any time. It has become policy that new operators at the
plant are given the full three years to complete their licensing process. At
least two employees are approaching the three year mandate without
having passed the required exam. Until licensed, operators have only
limited value to the wastewater utility. Shortening the period to pass the
licensing test would limit the investment the City is making in an
employee before a decision has to be made about continuing their
employment.
Recommendation 121: Reduce the mandatory time to

pass the operator’s license exam from three years to
18 months.
The wastewater treatment facility has a rudimentary maintenance and

work order generation software program. This system generates work
orders for preventative maintenance activities. Unfortunately,
maintenance staff are currently unable to keep up with scheduled
maintenance activities and work orders are marked as incomplete and
filed. This is simply unacceptable. Maintenance staff have been allowed
to pass probation or have used transfer rights to post into positions
without the necessary skills to perform required work. A significant
portion of the maintenance staff positions were described as having
inadequate skills. This is a serious problem that must be addressed.
Recommendation 122: Establish baseline skill

requirements for wastewater treatment facility
maintenance personnel. Maintenance staff require a
basic set of skills and knowledge to perform their duties.
Criteria should be established that acknowledge these
requirements and incorporate them into the position job
description. Existing staff should be evaluated and those
with short-comings provided with training and a deadline
for becoming proficient.
Training at the Bureau of Wastewater is informal and in some cases, non-

existent. This compounds the problem associated with the hiring of
“minimally” qualified staff.

Financial Analysis
Recommendation 123: Develop a formal training

program for each position at the Bureau of
Wastewater.
The Bureau of Wastewater makes minimal use of SCADA and other

computer based technologies. The Bureau of Wastewater has many of
the same software needs as the Bureau of Water. These include a
functioning inventory control system, maintenance management software,
work order systems, and asset management software for the wastewater
collection system. All of these are important and need to be addressed.
Recommendation 124: Evaluate and acquire

operational software and necessary equipment for the
wastewater utility. At a minimum, consideration should
be given to systems for inventory control, maintenance
management, work order generation, asset management
and system modeling.
The wastewater utility currently makes both a budgeted contribution to the

City general fund and other, less regular, distributions representing a
return on investment to the City. It is common practice for utilities to
compensate general fund accounts for direct services received. These
services may include finance, personnel, engineering, department
management, insurance and other quantifiable costs incurred by the
utility. Additionally, many communities charge a payment in lieu of taxes
charge (frequently referred to as PILOT) to compensate for indirect costs
such as public safety, use of streets and other amenities normally paid for
through the tax rate.
Recommendation 125: Institute a payment in lieu of

taxes charge to the wastewater utility. This charge
should be made in addition to direct charges for
quantifiable services provided.
Wastewater has a number of staffing-related problems that need to be

addressed in order for it to operate successfully. There is a real concern
that this may not be readily achievable. To be successful, issues
associated with unqualified staff, training, sick leave abuse and light duty
all must be addressed and successfully resolved. This will require
successful cooperation with union representation that has been described
as contentious. Unless these issues can be remedied, the City of
Lancaster may wish to consider seeking a contract operator to take over
management and operation of the wastewater treatment plant for some
period of time.
Recommendation 126: Initiate negotiations with

union representation at the wastewater plant to
resolve personnel issues. If these negotiations cannot
be successfully concluded, the City should consider
contract operations.

City of Lancaster
DEPARTMENT OF ECONOMIC DEVELOPMENT AND

NEIGHBORHOOD REVITALIZATION
Overview
The Department of Economic Development and Neighborhood
Revitalization (EDNR) is responsible for a wide range of planning and
development activities within the City of Lancaster, including:
• Establishment, stabilization and expansion of small

businesses and micro-enterprises
• Access to capital and credit financing to support development
activities, job creation and business retention efforts
• Promotion of minority and women-owned business
development and participation
• Expansion of employment opportunities for City residents, and
• Development of vacant and underutilized industrial and
manufacturing sites to attract new investment.
Staff of the Department also is responsible for implementing the City’s

neighborhood revitalization strategy. This strategy focuses on preserving
and enhancing a high quality of life in Lancaster neighborhoods though
the following goals:
• Pro-active enforcement of nuisance crimes and other

neighborhood disruptions
• Expansion of restoration activities and preservation of
properties with historic or architectural significance
• Rehabilitation and maintenance of housing and the promotion
of homeownership.
In addition to these broad Department goals, the City of Lancaster

Strategic Plan contains housing, neighborhood and retail objectives that
are articulated as strategic directions and success indicators.

Budget and Staffing

The total 2007 General Fund budget for the Department is $1,615,765.
The budget breakdown for the Department is summarized, by program
area in the Table 39 below.
TABLE 39: 2007 ADOPTED GENERAL FUND BUDGET FOR EDNR
Program Area Amount

Office of the Director & Economic 579,179
Development
Planning Bureau 119,615
Bureau of Structural Inspections 268,530
Bureau of Zoning and Inspections 602,657
Neighborhood Revitalization Division 45,784
Total General Fund Budget $1,615,765
Total CDBG and HOME Investment Partnership funds received and

administered by the Department in FY2007 is $2,538,242. This includes
the following funding levels for programs:
TABLE 40: 2007 FEDERAL FUNDS BUDGET FOR EDNR
CDBG Program 1,885,221

HOME Program 635,021
Total CDBG & HOME Budget* $2,538,242
* - Includes estimated program income of $40,000 to CDBG and $30,000 to HOME
Staffing of the Department of Economic Development and Neighborhood

Revitalization totals 34 FTE positions organized in three Bureaus and two
divisions, as shown in Figure 5. Of the 34 positions, six are fully funded
by Federal monies.
FIGURE 5: DEPARTMENT OF ECONOMIC DEVELOPMENT AND NEIGHBORHOOD

REVITALIZATION ORGANIZATION
Director of Economic
Development and
Neighborhood Revitalization
Bureau of Structural Bureau of Zoning Neighborhood

Bureau of Planning Resource Development
Inspections and Inspections Revitalization Division
Division
Zoning Unit Property Health Unit Housing Development

Maintenance Unit and Revitalization Unit

City of Lancaster
Staffing allocation is summarized in Table 41 below.
TABLE 41: DEPARTMENT STAFFING BY BUREAU AND DIVISION
Bureau or Division FTE

Office of Director & Economic Development 3
Bureau of Planning 3
Bureau of Structural Inspections 6
Bureau of Zoning and Inspections 16
Neighborhood Revitalization Division 4
Resource Development Division 2
Total Staff 34
Over the last five years, staffing for the Department has declined by 7
positions (19%). In 2003, 36 employees carried out the functions of the
economic development and neighborhood revitalization. The current
Department total of 36 employees represents decreases in staffing since
2003 in the Office of the Director, the Bureau of Structural Inspections
and the Resource Development Division. Staffing totals for 2003 to 2007
are shown in Table 42.
TABLE 42: TOTAL EDNR DEPARTMENT STAFFING 2003 - 2007
Bureau or Division 2003 2004 2005 2006 2007

(1)
Director of Econ. Dev. & Neighborhood Revitalization 3
Director of Housing & Neighborhood Development 4 4 4 4 -
(2)
Housing and Structural Inspections 17 21 21 21 -
(3)
Bureau of Structural Inspections - - - - 6
Bureau of Zoning and Inspections - - - - 16
Neighborhood Revitalization Unit – GF & CD 4 3 5 4 4
Director of Economic Development 2 2 2 2 -
Bureau of Planning – GF & CD 3 3 3 3 3
Resource Development Division - CD 4 3 3 2 2
Total 34 36 38 36 34
(1) During 2006, the Departments of Housing and Neighborhood

Development and Economic Development were combined to form
the Department of Economic Development and Neighborhood
Revitalization. This change was first reflected in the 2007 budget.
(2) In 2004, four additional Housing Inspector positions were created
and funded by an increase in the Housing Licensing fees.
(3) In 2007, the Bureau of Housing and Structural Inspections was
split into two bureaus: Bureau of Structural Inspections & Bureau
of Zoning and Inspections

Additional Notes:
During 2006, the Sanitation Coordinator position was eliminated to create

the Bureau of Solid Waste and Recycling in the Department of Public
Works which was charged with implementing and managing the City’s
new single hauler contract.
The Office of the Director and Economic Development Administration are

responsible for general oversight, management and budget development
for the Department. An economic development administrator is
responsible for conducting commercial, housing and retail attraction and
retention activities in the City. The director is assisted by two FTE
administrative staff positions.
The Bureau of Planning conducts strategic planning, administers the

Certified Local Government Program, provides technical assistance to
builders, property owners, contractors and developers on issues of land
development, use of buildings and property improvements for the purpose
of rehabilitation or new development. Planning Bureau staff also
administers the guidelines for rehabilitation in Lancaster’s historic districts
and the City’s land development regulations. Lancaster City planners
participate in site/development plan review, and the administration of City
policies pertaining to the environment, stormwater management, and
transportation and traffic control.
Planning staff lead and coordinate the interdepartmental review process

for housing, commercial and neighborhood development projects.
Additionally, planners provide technical assistance and staff support to
the City Planning Commission, the Lancaster Historic Commission, the
Historical Architectural Review Board (HARB), and the Lancaster Traffic
Commission. Table 43 includes staffing for this Bureau.
TABLE 43: EDNR BUREAU OF PLANNING STAFF
Position FTE
Chief Planner 1
Historic Planner 1
Land Use Planner 1
The Bureau of Structural Inspections is staffed by plans examiners and

inspectors responsible for conducting construction plan reviews, issuing
of permits and performing construction inspections associated with new,
major rehabilitation and remodels for commercial and residential projects.
The Bureau is responsible for the following trade inspections: structures,
electrical, plumbing, and mechanical/HVAC. Inspections are carried out
to ensure compliance with the State Uniform Construction Code, as well
as applicable local ordinances. Staffing for the Bureau of Structural
Inspections totals six full-time equivalent employees shown in Table 44
below.

City of Lancaster
TABLE 44: BUREAU OF STRUCTURAL INSPECTIONS STAFF
Position FTE
Bureau Chief 1
Building Inspector 2
Electrical Inspector 1
Plumbing Inspector 1
Permit Clerk 1
Total 6
The Bureau of Zoning and Inspections provides inspections of City

properties to ensure compliance with adopted ordinances and codes
related to zoning, property maintenance and health. The work of the
Bureau is divided into three units: Zoning, Inspections and Property
Maintenance, and Health Inspections:
• The Zoning Unit works to uphold applicable laws and

regulations governing the use of land and buildings within the
City. The Zoning Administrator is responsible for ensuring
compliance with the Lancaster Zoning Code, and for providing
zoning interpretations on Code regulations. The Zoning
Administrator is the Bureau chief, and staffs the Lancaster
Zoning Hearing Board by preparing reports and
recommendations on zoning requests for variances and
special exceptions.
• The Inspections and Property Maintenance Unit conducts
inspections of interior and exterior housing conditions to
ensure that units are suitable for habitation, and that properties
are free of code violations.
• The Health Unit conducts inspections of restaurants, eateries,
tattoo parlors and other public facilities for compliance with
Pennsylvania State health codes and standards.
Staff of the Bureau of Zoning and Inspections is detailed in Table 45

below.
TABLE 45: EDNR BUREAU OF ZONING AND INSPECTIONS STAFF
Position FTE
Bureau Chief & Zoning Administrator 1
Housing Inspection Supervisor 1
Property Maintenance/Housing
Inspectors 8
Health Inspector 2
Clerk Typists 4
Total Staff 16
The Neighborhood Revitalization Division promotes neighborhood

revitalization by administrating programs targeted to improve living
conditions, stabilize housing, promote home ownership and eliminate
blight. Staff of the Division administers four programs aimed at improving

dwelling unit condition, livability and accessibility for low and moderate-
income residents. These programs include:
• The Homeowner Rehabilitation Loan Program

• The Lead –Safe Housing Program
• The Critical Home Repair Program
• The Rental Accessibility Modification Program
Each of these programs is designed to assist residents and property

owners, based on need, with funding and/or technical assistance to
correct code violations through modernization and critical repair
assistance.
A summary of critical repair and rehabilitation loan program activities for

2004 though 2007 is shown in Table 46 below.
TABLE 46: SUMMARY OF EXPENDITURES – EDNR CRITICAL REPAIR AND

REHABILITATION LOAN PROGRAM
Program Yr. Funds Loaned Number of Loans

Critical Repairs
2004-2005 $ 50,000.00 22
2005-2006 $ 35,000.00 13
2006-2007 $ 50,000.00 14
Total $ 135,000.00 49
Average Loan Amount $ 2,755.10
Average Loans Per Year 16
Rehab Loan Program

2004-2005 $ 200,000.00 11
2005-2006 $ 150,000.00 11
2006-2007 $ 118,857.00 7
Total $ 468,857.00 29
Average Loan Amount $ 16,168.00
Average Loans Per Year 9.6
Neighborhood Revitalization staff also work closely with locally based,

non-profit development entities, and neighborhood groups to assist in
undertaking strategic planning and assessment activities. Staffing for the
Division is shown in Table 47.
TABLE 47: EDNR NEIGHBORHOOD REVITALIZATION DIVISION STAFFING
Position FTE
Division Administrator 1
Grants and Lead Safe Housing Admin. 1
Housing Specialist III 1
Clerk Typists 1
Total Staff 4

City of Lancaster
Resource Development staff is responsible for administering CDGB and

HOME Investment Partnership funds. These funds are used to support
programs that focus on the redevelopment of neighborhoods, housing
rehabilitation and other community and capital improvement initiatives.
The two FTE staff in this section also complete the required federal and
state funding allocation and expenditure reports.
Division staff also manages and monitors funding allocations to

neighborhood and community non-profits, and City programs that use
CDBG dollars for project and program implementation. Resource
Development staff also prepare the Lancaster Consolidated Plan, Annual
Action Plans and performance reports in conjunction with CDBG, HOME
funding requirements.

Department-wide Recommendations
In 2005 at the start of Mayor Richard Gray’s administration, sub-

committees were formed to assess and examine the status of operations
by department and function within the City of Lancaster. One such sub-
committee was established to review economic development and
redevelopment efforts. The Economic Development Sub-committee
identified findings that included the following issues and concerns:
• Lack of a comprehensive economic development plan

• Lack of a marketing plan for business recruitment and
investment
• Current RFP processes that do not ensure a complete
response from applicants
• Role of the Department limited to selling land, developing
deals, and providing tax incentives and abatements
• Lack of close interdepartmental coordination between
economic development and community development
functions.
In total, the sub-committee presented 25 recommendations for

improvement. The status of the economic development recommendations
as of February 2007 is included as Attachment J.
A similar sub-committee reviewed neighborhood improvement and

revitalization functions. Key issues and areas of concerns highlighted for
this functional area are closely related to the economic development
concerns identified including:
• The need for better coordination of the two functions

(neighborhood revitalization and economic development)

• Increased coordination by City staff of private and non-profit

neighborhood revitalization entities
• Greater utilization of the Council of Neighborhoods
• Identification of high-priority quality of life issues
• The need to determine appropriate staffing levels for housing
inspections and code enforcement activities.
This sub-committee presented 17 recommendations for improving

neighborhood improvement and revitalization functions. The
recommendations and status of implementation as of February 2007 are
included as Attachment K.
Many of the recommendations for both economic development and

neighborhood revitalization are in various stages of implementation. And
while periodic status reports are provided, there are no priorities or
defined timelines associated with these recommendations that provide
greater detail about these implementation activities.
Annual and multi-year work plans outlining implementation priorities,

detailed activity steps and responsible managers for completing each
recommendation will provide direction and accountability for achieving
results.
Recommendation 127: Assign implementation

priorities to the economic development and
neighborhood revitalization recommendations from
the Mayor’s Economic Development Transition
Subcommittee, and provide timelines for
accomplishing them. Assigning priorities and timelines
will assist the director and Bureau managers in focusing on
key development and neighborhood revitalization concerns
in a systematic manner. Timelines also will assist in
directing limited resources, and in bringing the
recommendations to timely fruition.
Each bureau and division of the Department provides an array of services

that promote and further redevelopment and revitalization citywide, as
included in the current 2007 Economic Development and Neighborhood
Revitalization projects and activities (see Table 48). These projects
constitute the Department work program for the year. Many of the listed
projects and activities are linked to the recommendations of the Transition
Subcommittee or relate to Strategic Plan directions.

City of Lancaster
TABLE 48: ECONOMIC DEVELOPMENT AND NEIGHBORHOOD REVITALIZATION

ACTIVITIES AND PROJECTS – 2007
1. Environmental remediation and business attraction for parcels within the

Keystone Opportunity Zone outside of the Industrial park.
2. Coordinate and manage the Lancaster City Business park.
3. Continue implementation of the Lancaster Square development schedule with

partners.
4. Seek state and federal funding for projects and business support in the City,
and seek a second EDA grant project.
5. Initiate redevelopment proposals for projects within the City Redevelopment
Area.
6. Assist owners and developers of vacant and underutilized land and buildings
to redevelop to the highest and best use (i.e. Stockyards, Kerr Glass, Lancaster
Press building, East King Street and the Armstrong site).
7. Develop a TIF policy.
8. Implement plans to develop parking.
9. Develop a marketing piece to entice investors and stimulate job growth.
10. Complete neighborhood assessment and planning in the NE and SW.
11. Participate in Rental Housing Task Force and consider implementing

recommendations.
12. Implement program for systematic interior and exterior inspection of rental
properties.
While Table 47 includes clearly defined work plan activities and projects
for the Department, there is no process for ensuring that these projects
and activities are being actively managed against the on-going, and
sometimes competing, day-to-day work of the Neighborhoods Division
and the Bureaus of Planning, Structural Inspections, and Zoning and
Inspections. Additionally, EDNR relies on strategic partners to
accomplish many of the objectives identified for the community’s
economic development efforts.
This specifically relates to the complaint-driven work of the Property

Maintenance Unit, and the requests for critical repair, major rehab and
community assistance issues through the Housing Development and
Revitalizations Unit. Ideally, the work programs for Planning,
Neighborhood Revitalization, Structural Inspections and Zoning
Inspections would be coordinated in a manner that carefully aligns day-to-
day work of staff in each Bureau/Division to address Strategic Plan goals
and sub-committee recommendations. For example, reversing the trend
of rental housing units exceeding the percentage of owner-occupied units
in Lancaster, and creating incentive programs to encourage the
conversion of rental properties back to owner-occupied properties
requires planning and zoning staff to identify clusters of properties where
reverse conversion can occur. It also requires inspection staff to verify the
use of property, and neighborhood revitalization staff to work with

residents and property owners in gaining access to first-time homeowner

or rehabilitation loan funds. This approach allows for maximum
coordination to utilize economic development and neighborhood
development program funds in a targeted manner.
As stated in the Economic Development Transition Sub-Committee

report, there is no plan for redevelopment and revitalization for the City.
Similarly, there is no clearly articulated plan for linking annual work plan
projects and activities with overarching strategies and goals, and
coordinating use of Department programs and resources.
Recommendation 128: Develop work plans at the

EDNR Bureau and Division level that are tied to the
Lancaster Strategic Plan success indicators and
strategic directions. The implementation of Strategic Plan
recommendations should be addressed in a manner that
brings to bear resources from multiple EDNR bureaus and
divisions as appropriate. Focusing staffing and investment
will allow for a greater leveraging of limited resources.
The work activities and outcomes of each Bureau/Division of the

Department is reported and highlighted at different times and in various
formats. The Planning Bureau produces an annual report that highlights
key accomplishments throughout the year. The Bureaus of Structural
Inspections, Zoning and Inspections, Neighborhood Revitalization, and
Resource Development each collect an array of workload data associated
with their respective responsibilities and develop monthly reports.
While there are a variety of data collection methods employed by each

Bureau/Division, there is little evidence that the data collected is used to
manage workload, resource allocations or assess trends in performance
outcomes. Management Partners was given year-end data for the
primary functions carried out by each Bureau, and we saw that periodic
management reports are produced. Unfortunately the quality of existing
data is not reliable and as such these reports cannot be used to assist
managers in directing workflow and operations.
Management Partners has found that best-practice organizations typically

employ the use of performance management as a means of directing
resource allocation and assessing outcomes.
Recommendation 129: Develop a comprehensive

system of performance measures for each program of
the EDNR Department. As has been stated throughout
this report, the use of performance measures is a best
practice that allows managers to track and report
efficiencies, effectiveness and outcomes. Sample
economic development, planning, neighborhood
revitalization and building and code enforcement measures
are included as Attachment L.

City of Lancaster
Recommendation 130: Publish a periodic report to

highlight Department-wide program outcomes and
accomplishments in a way that clearly links projects
and activities with Department priorities and the goals.
The measures can also be used as a tool for
communicating Economic Development and Neighborhood
Revitalization results and progress against Strategic Plan
goals with the Mayor, City Council and community
stakeholders.
The functions and responsibilities of the Department are varied and

diverse such that a City of Lancaster resident, for example, can make a
request of EDNR to subdivide property, lodge a property maintenance
complaint or complete a grant application for a critical home repair. While
the Department offers multiple development and redevelopment
programs, there is little information available to residents and property
owners about key resources available within the Department.
The website and internet pages for EDNR provide a list of Department
functions in alphabetical order that visitors to the site can select.
However, beyond very general information, there is little that can be
accessed from the site.
Detailed applications and process summaries for zoning, subdivision,

plans review, building inspections, multi-family licensing and inspections
are just a sample of the information that the general public should be able
to access from the Department web site. The City services web page
provides no link to the Bureau of Planning and the Department web site,
and it lacks information about the City’s comprehensive plan,
development initiatives and area demographic data.
The Department website should be a tool for initiating projects and re-
zoning, scheduling inspections, following up on a service requests, etc. It
should also be a resource for accessing fees and forms for development
activities, including zone changes, subdivisions, build permits, inspection
request and occupancy certificates. The Department website should also
be a useful resource for obtaining information about economic
development and neighborhood revitalization loan programs, and funding
resources that may be available outside of the City.
Recommendation 131: Improve and continually update

the Economic Development and Neighborhood
Revitalization website so that it is a useful resource for
residents and commercial entities to get information
about application and review processes, fees,
planning, development and neighborhood
revitalization information. The website should include
general and detailed information directed at property
owners, residents and business owners, developers and
contractors.

EDNR charges fees for plans review, permitting and inspections services
conducted by the Bureau of Planning, Structural Inspections, and Zoning
and Inspections staff. The fee schedules detail the cost for various
planning and development activities, including zoning ordinance
amendments, zoning use permits, land development and subdivision filing
and review, waiver and use modification fees, building and construction
permits. Property maintenance/Housing and rental licensing fees
charged by the Bureau of Structural Inspections are discussed below
under the Bureau of Zoning and Inspections.
Management Partners’ survey of fees and charges from other

comparable Pennsylvania jurisdictions yielded partial information from the
cities of Altoona and Easton. In most cases, Lancaster’s zoning,
subdivision and land development fees and charges are higher than or
comparable with the responding cities. While the fees are comparable
with those in Altoona and Easton, Lancaster Bureau managers are
unsure if the current fee structure allows for full cost recovery of
dedicated staffing and overhead resources.
Recommendation 132: Review current planning and

land development fees and adjust as appropriate to
ensure full cost recovery. A comprehensive review of all
fees or a selective review based on the plan review and
permitting volume and workload would be useful.
Bureau of Planning
The work of Bureau of Planning staff, in part, is closely linked with the
projects and inspection related economic development and housing
conducted by staff in the other Bureaus of the Department. The Planning
Bureau updated the Lancaster Comprehensive Plan for the City in
conjunction with the development of an 11-municipality, joint
comprehensive plan entitled Growing Together.
Growing Together is a plan for improving the quality of life in central

Lancaster County, and it includes strategies designed to promote and
enhance economic development opportunities while preserving
agricultural assets. The Lancaster Planning Commission approved the
regional comprehensive plan in April 2007.
Adoption of the plan has prompted a review of the Lancaster Zoning

Ordinance as well. The last update of the Zoning Ordinance occurred in
1994.
Effective implementation of the newly adopted comprehensive plan

requires alignment of the zoning code to recommendations of the plan.
An update of the Zoning Code will be closely coordinated by the Zoning
Administrator and the Chief Planner to ensure that proposed revisions to
the Zoning Code accurately reflect the intent of the goals and objectives
included in the plan.

City of Lancaster
Primary work activities of planning staff -- plans review, rezoning and

subdivision review processes – are summarized in Table 49 below. While
workload appears to be decreasing from 2004 to 2006, development
activity, represented by plan review and waiver fees, increased 19% for
the period. This can be attributed to an increase in the number of
requests for preliminary land development plan reviews which result in
waivers being provided.
TABLE 49: CITY PLANNING WORKLOAD DATA 2004 - 2006

Source: Lancaster Planning Commission Annual Report
City of Lancaster Planning Data

Percent
2004 2005 2006 Change Average
Subdivisions Approved 6 4 4 -50.0% 4.7
Commercial Plans Review 13 12 9 -44.4% 11.3
Industrial Plans Review 4 4 6 33.3% 4.7
Other Plan Reviews 9 4 5 -80.0% 6.0
Properties Certified Blighted 22 12 15 -46.7% 16.3

Waivers Approved 9 11 19 52.6% 13.0
Stormwater Management Reviews 13 12
Rezoning Petitions N/A N/A 3

Text Amendment Petitions N/A N/A 1
Plan Review and Waiver Fees 8,710 9,705 10,762 19.1% 9725.7
Planning staff report that the data shown in Table 48 above represents
only a portion of the work activities carried out by planning staff. Staff
does not collect data for other primary work activities, or for annual
planning goals and outcomes achieved by Planning Bureau staff.
Data collected by Planning Bureau staff should be expanded to include

metrics that can be used to track staffing resources and outcomes,
specifically those related to the overall economic development goals and
strategies of the City. This data should provide key information that can
be used for economic development and related community development
analysis.
Recommendation 133: Track and use planning data to

assess development patterns and trends. Data tracking
and reporting should be used to identify planning and/or
development related patterns and trends within
neighborhoods and districts.

Bureau of Structural Inspections
Requests for residential and commercial inspections are called in or

mailed to the Bureau office. When an inspection request is received, it is
forwarded to the appropriate inspector for follow-up and scheduling.
Each inspector is responsible for setting her/his own daily inspection and
re-inspection schedule.
There is no established target for completing assigned inspections, and

performance is not tracked by the division. A system for tracking
inspection cycle times and other key structural inspection metrics would
provide a tool for balancing workflow with staffing and overall customer
service demands.
In addition to inspection functions, the Bureau produces a monthly report

summarizing various workload data such as permits issued, business
licenses issued, plans reviewed, etc. The monthly reports are completed
and distributed, but the data is not used for work planning and resource
allocation. The issue of performance measures was identified early in the
report, as well as in Recommendation 129 and is restated below.
Recommendation 134: Develop performance measures

for each program of the Department. Implementing a
system of metrics for Structural Inspections is an important
element of best practice development review processes.
Such measures should provide information about the
efficiency and effectiveness of plans review inspection
services, including inspection cycle times.
All work associated with plans review and inspections is recorded

manually, and stored in paper form. Permit applications are completed
manually, as well as building and trade permits and certificates of
occupancy.
A copy of plans that have been submitted for review and approved by
plans examiners are retained and stored in the Bureau office or are
stored off-site. Due to limited storage space, plans are maintained at
various locations within the Bureau office, and no formal system for
tracking or retrieving plans exist. The Bureau Chief for Structural
Inspections is currently working with City of Lancaster IT staff to identify
possible permitting and inspections systems that may be appropriate and
allow for scanning and electronic storage of plans. At present, no firm
timeline is set for identifying alternatives and developing
recommendations for implementing a software-based system for plans
review, permitting and inspection functions.

City of Lancaster
Recommendation 135: Develop a system for logging,

storing and retrieving paper plans. The efficiency of
plans reviews and related activities is dependent upon a
formalized and orderly system for cataloging, storage and
retrieval. Long-term the entire logging system should be
converted to electronic format.
Recommendation 136: Develop a timeline for

implementing a software system that supports the
plans review, permitting and inspections functions of
the Bureau. The identification of recommended systems
and funding for implementation should be a priority for the
City.
The City is currently enjoying a period of economic growth with many

substantial economic development projects in the construction phase. It
is unclear if current staffing levels will be able to sufficiently meet the
demand for quick inspections to ensure development occurs as
scheduled. A growing trend in cities facing “bursts” of development is to
address peak demands with contract inspectors. This avoids the burden
of adding “permanent” positions to the City’s workforce, when the demand
is temporary.
Recommendation 137: Evaluate the options for hiring

a qualified firm to conduct inspections during peak
periods.
Bureau of Zoning and Inspections
This Bureau carries out two key work functions: zoning administration and
housing/code enforcement Inspections. The Bureau also has one full-time
health officer position. The Health Inspector is responsible for inspecting
restaurants, eateries and other public facilities to ensure compliance with
Pennsylvania codes and standards.
Bureau inspectors are responsible for conducting code-related

inspections of residential and non-residential properties. Inspections are
carried out daily, based on complaints called into the office, and as part of
a process of systematic inspections. Call-in complaints are typically
related to exterior building and property conditions, including grass,
weeds and vehicles on private lots. Systematic inspections are focused
on interior, as well as exterior building condition.
Inspections are carried out by eight full-time staff. Two housing inspectors
are assigned to each of the four quadrants in the City. Inspections are
carried out according to the following general schedule:
• Systematic inspections four hours per week

• Complaint and life safety related inspections all other times

Table 50 below includes a summary of the code enforcement inspections

completed from 2004 to 2006. This is the data that has been reported,
historically, but the City acknowledges that there was not a consistent
definition of what an “inspection” included. Some inspectors would report
to a given address to follow-up on a complaint and list each address on
the street they drove or walked by as having been “inspected.” This
practice will be changed going forward, but it renders the data relatively
meaningless for use by management at this time.
TABLE 50: HOUSING INSPECTION DATA – FY 2004-FY 2007 (AS OF MARCH)
FY 2004 FY 2005 FY 2006 FY 2007 3Q

INSPECTION TYPE SF MF SF MF SF MF SF MF
Initial Inspections 2,530 93 541 16 2,494 32 292 2
Re-inspections 3,792 101 3,245 68 1,603 117 638 2
Abatements 922 10 638 4 245 16 163 1
Code Letter Initial Inspection 46 0 11 1 8 6 2 0
Code Letter Re-inspection 14 0 0 0 3 1 1 0
Complaints Initial Inspection 6,999 822 8,647 463 12,080 499 7,992 425
Complaints Re-inspection 16,846 1,898 15,975 971 16,176 902 11,136 719
Prosecutions (Citations) 902 99 597 24 498 9 65 0
Properties Condemned 66 4 67 3 40 4 9 0
Total Inspections (Lines 1,2,
4-7) 30,227 2,914 28,419 1,519 32,364 1,557 20,061 1,148
Average Inspections per FTE 3,778 364 3,552 190 4,046 195 2,508 144
Source: Lancaster Community Development Block Grant Housing Code Enforcement Reports
Based on data maintained for housing inspections, it is clear that

complaint-driven inspections constitute the vast majority of inspections
completed by Code Enforcement staff.
There is little evidence that work planning occurs beyond setting daily and
weekly inspection schedules. Nor is active review of inspection data
monitored and used to precisely plan and direct inspection work activities.
Recommendation 138: Conduct monthly reviews of

workload data to more effectively manage housing
inspections and code enforcement activities.
Systematic review of inspection workload data and
forecasting will assist inspectors in meeting annual goals
and targets.
A new software system for housing inspections was implemented in

January 2007. The system allows for electronic storage and retrieval of
inspection and code enforcement information. The Property Maintenance
System, when fully implemented, will permit in-the-field completion of
inspection notes and reports, and it ultimately will allow remote issuance
of inspection orders and citations.

City of Lancaster
At present, housing inspectors manually write-up summary housing

inspection notes in the field. Upon returning the office, the field notes are
forwarded to a clerk, who then enters the data into the computer. If an
inspection letter or citation is to be issued, the clerk drafts the document,
and sends it to the inspector for review and sign off. After review and
approval by the inspector, the orders and/or citations are sent back to the
clerk, who completes the citation and mails it to the property owner.
This process is cumbersome and time consuming. Ultimately, inspectors

should have the capability to complete inspection notes, code
enforcement orders and citations in the field.
Recommendation 139: Eliminate existing process

redundancies when housing inspection and code
enforcements systems are fully implemented. The
Bureau Chief and inspections supervisor should work with
the software vendor to ensure that process redundancy in
this process and other processes, is eliminated.
Full implementation of the Property Maintenance System – including the

assignment of handheld computers for inspectors – will eliminate the
need for clerical staff to perform data input of inspector field notes, and
should also streamline and reduce the amount of time required to print
and issue citations. Based on information obtained from the Bureau of
Zoning and Inspections, an estimated 85% percent of all clerical staff time
is devoted to inputting field note information into the property
maintenance database and generating citations for issuance.
While we anticipate that a significant amount of clerical staff time may be

saved after full implementation of the Property Maintenance System, a
good estimate of expected hours to be saved is currently unknown.
Recommendation 140: Conduct a time study to

determine total clerical position time savings after full
implementation of the Property Maintenance System.
Clerical time savings should be assessed immediately after
the Property Maintenance System is fully operational.
Recommendation 141: Identify and implement clerical

duty reassignments or absorb staff efficiencies. Time
savings are likely to result in the ability to reassign clerical
to other Bureau assignments within the Department or
through position reductions.
A primary reason that extensive assistance is required from the Housing

Inspection clerks is because most of the inspectors have little computer
and keyboarding experience. To achieve maximum benefit and time
efficiencies from the System, inspectors must be trained on it.

Recommendation 142: Assess the skill level of each

inspector to fully utilize the features of the housing
inspection and code enforcement system. Skills should
be assessed with the implementation of new technology
and annually in conjunction with performance appraisals.
Recommendation 143: Develop a plan and timeline for

enhancing the computer key boarding and data entry
skills of housing inspectors. Computer skills
enhancement will allow the inspector to directly input field
notes, and reduce the cycle time associated with issuing
citations.
Housing inspectors/code enforcement inspectors are configured as two-

person work pairs. Work is assigned and carried out by two inspector
pairs that are assigned to work in each of the four quadrants of the City.
Daily work assignments consist of area inspections requested by
Lancaster residents and property owners by phone or email.
Management Partners is not aware of jurisdictions where inspectors are

teamed in pairs for the purpose of making housing and code inspections.
In Management Partners’ benchmark survey question asking how
housing and code inspectors are deployed, the cities of Easton and York
reported that inspectors work individually, rather than in pairs.
Benchmarking data collected for the number of code inspections and the
number of complaint-related inspections completed in 2006 shows that
the City of Lancaster outperformed both Easton and York for the number
of housing and code inspections completed.
The average number of inspections per Lancaster property maintenance

FTE for 2006 was 1,934, compared to 776 per FTE for the City of Easton
and 581 per FTE for the City of York. Inspection outcomes are likely to be
significantly higher with a single inspector staffing pattern.
Table 51 summarizes housing and code related inspections completed in

2006 for the City of Lancaster and responding benchmark cities.

City of Lancaster
TABLE 51: COMPARISON OF HOUSING/CODE RELATED WORKLOAD DATA
Benchmark Question City of Lancaster City of Easton City of York

Total Number of Inspectors 8 3 4
Do Inspectors work individually
or in pairs? Generally in pairs Individually Individually
2006 Total Systematic Code
Inspections Completed 4,264 1,279 1,000 (est.)
2006 Total Complaint-Related 29,657* (incl. grass &
Inspections Completed weed complaints) 1,051 1,325
Total inspections 33,921 2,330 2,325
Average inspections Per FTE 1,934 776 581
* The reliability of this number is in question due to the historically inconsistent way in
which inspections have been defined and counted by the bureau.
While reducing expenditures is currently a primary concern, it is prudent

to address housing and code related inspections in an expeditious
manner because of the health and life safety issues associated with these
types of inspections. Issues of inspector and housing occupant safety
can be adequately addressed through use of the two-way cell phones
supplied to each inspector.
Recommendation 144: Deploy inspectors individually

within each inspection quadrant. Issuing separate
inspector assignments will increase productivity and the
timeliness of response. If known criminal activity at a
residence is a concern, inspectors should be instructed to
request security assistance from the Lancaster Police
Department.
Mileage reimbursement paid to inspectors for 2006, each driving separate

vehicles, totaled $13,969. Due to fiscal constraints, paired inspection
teams conduct their work using employee-owned vehicles. Drivers are
reimbursed for mileage expenses based on the current federal mileage
rate. The use of inspection team pairs further has reduced reimbursement
expenditures by an additional $3,000 in 2007.
While financing new vehicles, fuel, insurance and related maintenance for
inspection activities is not an option, the City should provide a uniform
means of transportation for inspection activities. Both of the two
responding benchmark cities (Easton and York) provide city vehicles for
inspectors and in fact this in an industry standard.
The Pennsylvania Legislature is currently considering the approval of

neighborhood electronic vehicles as an economical solution to gas-
powered vehicles for certain municipal activities. Neighborhood electric
vehicles provide an alternative to the use of conventional vehicles that
should be explored.

Recommendation 145: Provide City vehicles for

inspectors. The use of alternative modes of transportation
(i.e. electric or other fuel source vehicles) for carrying out
inspection activities would be ideal in a City the size of
Lancaster.
Based on the 2000 Census, the City of Lancaster has 23,021 total
housing units, of which an estimated 20,940 are occupied. 11,199 are
rental units and 9,741 are owner occupied. There are 2,081 vacant units.
Beginning in June 2007, inspectors from the Bureau of Zoning and
Inspections began implementing the City’s ordinance to conduct
systematic inspections of rental properties. The inspections are focused
on both interior and exterior conditions of rental properties. The purpose
of the inspections is to maintain and improve the quality of renter-
occupied housing stock in the City. The inspection effort also will serve to
stabilize Lancaster’s neighborhoods and residential living conditions.
Systematic interior and exterior rental property inspections are scheduled

to take place four hours per week (two days per week for a period of two
hours). Inspectors assigned to each of the four-inspection quadrants
conduct the rental housing inspections.
The Bureau chief reports that, at some point, property maintenance

inspectors and fire inspectors will be cross-trained to maximize resources
and increase coverage. Fees for the rental housing inspections are $100,
plus $50 per housing unit. A charge of $150 per unit represents potential
revenue of $1,538,700 that will be collected from initial rental housing
inspection activities. The fee for second and subsequent rental re-
inspections is $25.
While there is no data to quantify the number of re-inspections typically

required for properties by type, a $25 fee would barely cover the staffing
resources and time required to schedule, drive to and complete the
inspection. The City of Easton charges a $75 fee for any re-inspection
and, in some jurisdictions, the re-inspection fee increases with each
successive re-inspection. Since the City of Lancaster currently deploys
two inspectors to each property maintenance/code inspection, the fee for
re-inspection should be set to achieve full cost recovery.
Recommendation 146: Establish a property

maintenance re-inspection fee to achieve full cost
recovery.
Based on the current work plan for conducting rental inspections (four
hours per week, using four inspection pairs), it will take a minimum of 40
months to complete one round of inspections, based on a 30-minute cycle
time, and no re-inspections. Since no formal inventory of rental units
exists, inspectors are using a combination of data sources -- including
current rental license records, and water and sewer billing records to
estimate the current inventory of units for inspection.

City of Lancaster
Recommendation 147: Hire contract inspectors to

expedite completion of the initial round of systematic
interior and exterior rental housing inspections. Hiring
eight additional inspectors to conduct initial rental housing
inspections full time will get the job done in about four
months. This would produce rental inspection revenue in
the current year, rather than being spread over several
years.
Recommendation 148: Develop a comprehensive

inventory of rental units within the City. A rental unit
inventory is a necessary tool for guiding inspections,
licensing and property maintenance, and code
enforcement.
Neighborhood Revitalization Division

Staff of the Division recently began a community planning effort to create
a vision plan and identify housing improvement and redevelopment areas
and economic development opportunities within the northeast and
southwest neighborhoods. These areas are adjacent to the existing
Lancaster Keystone investment zones.
Both areas are zoned primarily for medium density single-family

residential housing and are comprised of older housing stock requiring
varying levels of reinvestment. Consultants hired by the City are
conducting the planning effort with project oversight by the Division
administrator.
In addition to identifying redevelopment opportunities that may be

appropriate for theses two neighborhoods care should taken to construct
a coordinated approach that incorporates, where possible, the
recommendations of the Mayor’s Review Sub-committee and Department
resources such as current and prior code enforcement locations, and the
identification of vacant and/or problem properties. This type of analysis
will allow for the identification of priority redevelopment areas within each
neighborhood that should be stabilized prior to implementing new
economic development initiatives.
Recommendation 149: Implement a coordinated

redevelopment approach for the northeast and
southwest neighborhoods that dedicates Department
resources in a comprehensive manner. Specifically,
implementation of the redevelopment recommendations for
these areas should include a targeted allocation of Federal
and local redevelopment funds, including CDBG and
HOME funds and other economic development and
Department resources as appropriate.

In addition to creating a coordinated approach to housing rehab and

identifying sites for redevelopment, the plan should be used to promote
the Strategic Plan objective of reversing the trend of conversion of single-
family owner occupied units to rental housing. While Management
Partners found no data to quantify volume of owner occupied to rental
unit conversions, it is important to identify areas and locations where such
conversions are likely to occur. Tracking conversions and their location is
the key to successfully reversing this trend.
In addition to tracking conversions, the City should implement strategies

for stabilizing and reversing this conversion trend. The use of property
tax credits is a tool that can be used in designated areas to promote
certain housing incentives. The City of Hagerstown, MD., has
implemented a multi-family (MF) to single-family (SF) conversion
program. The program grants property tax credits for a period of five
years within designated target areas to promote investment and
preservation in older urban neighborhoods. A credit is granted to an
owner on the increase in the property assessment resulting from the
improvements to the property, and the property must remain owner-
occupied for the entire five-year period.
Criteria used for the conversion program includes, code compliant

building exteriors and core systems, elimination of all apartments of
record, disconnection and removal of extra service utility equipment. A
pre-requisite of the program is that the property owner not be delinquent
on property taxes at the time of application.
Recommendation 150: Pilot the use of property tax

credits for multi-family to single-family conversions in
selected locations in the northeast and southwest
neighborhoods. Targeted and selective use of such a
program may be useful in further stabilizing these
neighborhoods. The use of current rental license
registrations combined with land use and code inspection
information will be useful in identifying the best.
Recommendation 151: Identify data and information

required to monitor owner to rental conversions, and
initiate data collection a tracking system. Without
appropriate data and routine monitoring and reporting, it is
unlikely that this trend will be reversed.
Resource Development Division

Staff of the Resource Development Division prepares and monitors
Lancaster’s Annual Action Plan for the use of CDBG and HOME funds to
benefit low and moderate-income residents. Combined 2007 program
funds total $2,538,242, including an estimated $70,000 of program
income. It will be used to support housing activities, public improvements,

City of Lancaster
community facilities, public services, economic development, and

planning administration. Table 52 details the 2007 Lancaster Action Plan
for the use of federal entitlement funds.
TABLE 52: TOTAL 2007 CDBG AND HOME FUNDING ALLOCATIONS
Program Area Total Funding Percent

Housing Activities 1,278,230 50.4%
Public Improvement 587,335 23.1%
Community Facilities 50,000 2.0%
Public/Human Services 147,830 5.8%
Economic Development 32,500 1.3%
Program Administration and Planning 442,347 17.4%
Total 2,538,242 100%
The use of federal entitlement funds, as in all communities, has been

steadily decreasing. In 1975, Lancaster’s first CDBG entitlement was an
estimated $4.0 million. Compared to the current allocation of $1,845,221,
this represents nearly a 54% decrease of CDBG entitlement funds over
the 32-year period, and an average annual percentage decrease of 3.1%.
Housing activities comprise the majority of program expenditures and

include a mix of activities aimed at the rehabilitation of vacant and
blighted properties, for first-time and existing homeowners. The program
housing component of 2007 CDBG and HOME program funding is
expected to impact an estimated 13,520 units throughout the City. Most
of these are existing housing units (13,350) will be inspected by the City’s
property maintenance inspectors. The balance of the units represents
rehabilitated and new units that are planned. Most of the resources for
housing is dedicated for citywide use, with the exception of one program
that is focused on the purchase and rehabilitation of homes in the
southeast quadrant of the City.
Other related community development projects funded as part of the 2007

Action Plan are included under the category of economic development
and public improvement. The majority of funds allocated for economic
development, $17,500 or 53.8% are allocated to technical assistance and
low-cost loans to minority and female businesses and micro-enterprises.
The remaining funds are allocated to targeted revitalization in the
southeast quadrant of the City.
Public improvement funds are allocated for infrastructure projects,

including Citywide street improvements and ADA improvements. One
public improvement project will be used for improvements along Palm
Street that are linked with implementation of a housing project in the
southeast quadrant of Lancaster.
There is clearly a source of housing, economic development and public

infrastructure funds that have been allocated to redevelopment of the
southeast quadrant of the City. Funding targeted to a geographic area

represents 19% of the total funds allocated as part of the 2007 CDBG and
HOME Action Plan.
Management Partners’ experience indicates that targeting the use of

limited funding resources such as CDBG and HOME funds for use in
limited geographic areas, and to the extent possible, clustering projects
is a more effective approach to redevelopment than scattering project
allocation to cover citywide needs.
Recommendation 152: Allocate CDBG and HOME

funds in a targeted manner. A targeted approach to
planning and resource allocation should be used to
support redevelopment efforts in the northeast and
southwest housing improvement areas and in other
community redevelopment areas. This recommendation
should be coordinated with Recommendation 151 above.

POLICE BUREAU
Overview
The City’s Strategic Plan has established the following success indicators
that pertain to the Police Bureau:
• Community Policing is implemented in all neighborhoods

• Effective relationships are developed between the sector police
officers and the residents and businesses
• Neighborhoods see more police officers on bikes and on foot
The basic operation plan for the Patrol Division is that the service area
has been divided into 12 Neighborhood Policing sectors. Four officers
are assigned to each sector to assure continuous staffing. Bureau
administration has emphasized citizen contact and also schedules foot
and bike patrol when and where tactically appropriate. The administration
has established sign-in logs at strategic locations to reinforce the
philosophy of making contact with residents and businesses. The Police
Chief meets monthly with community groups to report on the Bureau’s
community policing activities.
The Mayor and Police Chief established a goal in 2006 of timely

disposition of outstanding warrants. A civilian warrant coordinator was
authorized in 2006 to lead this effort. The coordinator has worked toward
improving collaboration with the Lancaster County Sheriff Department
and Pennsylvania State Constables. Additional responsibilities include
researching data bases to locate current addresses for fugitives, tracking
warrant service and the collection of fines and costs, mailing notification
letters to individuals that have outstanding warrants when feasible,
assisting with completing appropriate paperwork for officers during
warrant sweeps, providing information to the media and public, updating
outstanding warrant information on the Bureau’s internet web site.
The Bureau has established the following goals for 2007:
• Establish a six -to 12-member Citizen Police Advisory Committee.

• Conduct a Citizen Police Academy during 2007
• Train additional officers in problem solving techniques and seek to
strengthen partnerships with citizens, organizations, and other
governmental agencies

City of Lancaster
• Increase the number of Tracker units available for speed

enforcement details with up to 20 additional units
• Continue the implementation of a new diversity training program
At the time of this review, the Citizen Police Advisory Board had not been
established. The Citizen Police Academy was organized and offered in
June 2007, but was cancelled due to insufficient registration. Training in
problem solving has been instituted and a schedule for training officers
has been prepared. Additional tracker units have been deployed for
speed enforcement but have not been widely accepted operationally by
the department. Diversity training has been implemented.
Personnel
The Bureau of Police has 218 authorized full-time positions composed of

175 sworn personnel, 40 full-time civilians and 3 Cadets. In addition, the
Bureau employs 30 part-time school crossing guards. In analyzing police
staffing, it is Management Partners Inc. practice to distinguish between
direct service employees and support employees.
Direct service employees are those who have primary contact with
citizens to provide a service. Support personnel are those whose primary
duty is to manage department operations or provide service to other
department staff. Table 53 below shows the distribution of Bureau staff
between direct and support service.
TABLE 53: DISTRIBUTION OF PERSONNEL BETWEEN DIRECT AND SUPPORT SERVICE
Position Title # Direct # Support Total

Chief 0 1 1
Captain 0 3 3
Lieutenant 7 3 10
Sergeant 22 2 24
Detective 14 1 15
Officer 119 3 122
Total Sworn 162 13 175
Records Supervisor. 0 1 1
Terminal Access Coordinator 0 1 1
Information Technician 0 2 2
Clerk 0 5 5
Operator 0 2 2
Mail 0 1 1
Administrative Assistant. 0 2 2
Evidence Technician 0 1 1
Cadet 0 3 3
Community Service Aide 17 0 17
Parking Enforcement Aide 5 0 5
Sweeper Enforcement 3 0 3
Total Civilian 25 18 43
Total 187 31 218

% of Total 86% 14% 100%

Table 54 shows the staffing history of the Police Bureau between 2003
and 2007.
TABLE 54: STAFFING HISTORY 2003 - 2007
2003 2004 2005 2006 2007

Sworn Personnel 167 156 167 177 175
Full-time Civilian 53 59 64 56 43
School Crossing Guards 39 38 39 38 39
Cadets 3 3 7 11 3
Slightly more than four of every five positions in the Bureau provide direct
service. A normal rule-of-thumb is that 80% of personnel should be
involved in direct service, so the Bureau stands in good stead in this
regard. Of the 175 sworn personnel 162, 93%, provide direct service. At
the time of our interview, four officers were on light duty and four were on
administrative leave. However, these positions are normally assigned to
the patrol division and provide direct service.
The organization chart for the Bureau of Police is shown in Figure 6.

City of Lancaster
FIGURE 6: BUREAU OF POLICE ORGANIZATION CHART
Bureau of Police
Organization Chart
Police Chief Administrative

Assistant
Criminal
Administration Patrol Division
Investigations
Division
Division
Violent Property Special Patrol Patrol Mounted

Crimes Crimes Victims Services Unit
School
Professional Support Special Traffic Community
Resource
Standards Services Enforcement Support Policing
Officers
Sweeper Parking
Enforcement Enforcement
Detention Warrants Records Communications Training
Information Quartermaster
Technology

Patrol Division
The Patrol Division is the largest operating unit in the Bureau, accounting
for 139 of the Bureau’s 218 positions. The Patrol Division is responsible
for responding to dispatched calls for service, and officer-initiated activity
such as traffic stops. The Patrol Division is organized into four platoons,
with each platoon working a 12-hour schedule. Each platoon is under the
command of a lieutenant, with four sergeants acting as first-line
supervisors. The Patrol Division provides police service under contract to
Lancaster Township, the Downtown Improvement District, the Park City
shopping district, the Lancaster City School District and Franklin &
Marshall College. The Patrol Division also includes the Patrol Services
Section which is commanded by a lieutenant and is composed of 22
sworn personnel, 12 full-time civilians and 30 school crossing guards.
The Patrol Services Section is responsible for a number of duties,

including site reviews for traffic control signage and improvements, trash
ordinance enforcement, the downtown ambassador program, enforcing
parking scofflaws and coordinating extra-duty officer requests and
planning for all special events within the City. This section also includes
the Traffic Support Unit which enforces parking regulations, responds to
complaints of abandoned and hazardous vehicles, enforces the dog law
and provides support to the Traffic Commission. The Special
Enforcement Unit is a power shift of seven personnel that exclusively
works night shift on a 10-hour tour. The School Resource Officer unit is
assigned to five schools with grades 8-12.
Criminal Investigations Division
The Criminal Investigations Division is led by a Captain and consists of

three lieutenants, three sergeants, 23 detective/officers and two civilians.
There are three units in this division: Violent Crimes, Property Crimes,
and Special Victims. This Division is responsible for most felony and time
intensive criminal investigations in the Bureau.
Administration Division
The Administration Division has a diverse area of responsibility. Its duties

include professional standards, detention, records, information
technology, training and quartermaster.
When transitional or light-duty officers are available, the Bureau utilizes

them primarily for taking telephone reports. Four officers are currently
assigned to light duty. Officers who have had their police powers
suspended are also placed in this division for administrative purposes and
are assigned to various duties. There were four such officers at the time
of this analysis.

City of Lancaster
2007 Budget
The 2007 Bureau of Police Budget is $19,479,446. A total of $18,081,119

is for salary and benefits cost – 93%. The balance, $1,398,327 is for non-
personnel expense. The Bureau of Police Budget accounts for 45% of
the City’s 2007 General Fund Budget.
Service Environment
The Bureau of Police provides service to the City of Lancaster and, on

contract, to Lancaster Township. The area served covers 13.5 square
miles (7.3 City and 6.2 Township) with a population in excess of 70,000
(56,348 City and 13,944 Township).
The number of actual Part I crimes – more serious crimes like murder,
rape and armed robbery – has gone down by 3% from 2002 through
2006. Part II crime has increased by 13% over that same period of time.
Table 55 shows the number of actual Part 1 and Part 2 crimes each year
for the last five years for Lancaster and Lancaster Township.
TABLE 55: ACTUAL PART 1 AND PART 2 CRIMES 2002 - 2006
2002 2003 2004 2005 2006 % Change 2002 - 06

Part 1 Crimes 4437 4555 4081 3980 4307 -3%
Part 2 Crimes 7362 7396 8113 7983 8347 +13%

Policing Philosophy
The CompStat model of policing has proven to be very effective at

combating and preventing crime. The model relies on five principles:
1. Specific objectives
2. Timely and accurate intelligence
3. Effective strategies and tactics
4. Rapid deployment of personnel and resources
5. Relentless follow-up and assessment9
The principle entitled “specific objectives” from the list above refers to the
need for focus to develop specific objectives for the police by City and
Police leadership. For example, specific objectives could be to get guns
off the street or reduce violent crime.
The CompStat policing model cannot work without timely and accurate
intelligence. Crime patterns and trends must be tracked and analyzed on
9
McDonald, Phyllis P, Managing Police Operations, Wadsworth/Thompson
Learning, Belmont CA, p. 8

a daily basis and information produced so that tactical operations can be

developed to control crime. Without timely intelligence effective strategies
and tactics will not occur.
Rapid deployment of personnel and resources implements the

operational aspect of CompStat policing. The implication of rapid
deployment is that command staff not only has the intelligence needed for
tactical deployment but the authority to use any of the resources of the
Bureau to accomplish the tactical objective. In many cases, it means
reorganizing the department.
Relentless assessment and follow-up is perhaps the most renowned

element of CompStat, but it is no more important than other
characteristics. Assessment and follow-up is the accountability factor.
Progress against specific objectives is tracked and reviewed on a
regularly scheduled basis. The purpose of assessment is not to make or
break careers of commanders but to ascertain success or failure of
operations. If tactics are successful, after action analysis identifies new
learning and documents how that new learning might be used again in
other situations. If tactics are not successful, analysis identifies the
obstacles and develops new tactics to attempt.
The Lancaster Bureau of Police uses a very traditional patrol operations

plan. Patrol units are geographically based in sectors and responding to
calls for service is the primary activity of patrol units. In other words,
despite the fact that there has been training for many department
members in problem-oriented policing, the ability to be proactive is limited
by the lack of available data and thus the Patrol Division operates more
reactively than proactively.
It is understandable the Bureau continues to utilize reactive patrol

operations plans because it has been given very little in the way of crime
analysis resources. As noted above, without timely and accurate crime
information, CompStat policing cannot be successful. The Chief has
attempted to “work around” a lack of timely and accurate crime data by
implementing a rudimentary approach to CompStat. The Chief meets on
a monthly basis with Patrol Division personnel to review complaints and
their status and questions and comments received through the various
community meetings attended throughout the month.
Crime data used in the meetings is over 30 days old and in most cases
not accurate. In other words, the Chief is disposed to implementing a
CompStat policing model, but does not have the information infrastructure
that will make it optimally effective.
The City must make an investment in appropriate crime analysis software

and in a crime analyst position to provide daily intelligence on crime
patterns and trends. There are many choices of crime analysis available
for purchase off the shelf. There are also some law enforcement agencies
that have developed outstanding software of their own.

City of Lancaster
One agency, for example, is the Polk County, Florida, Sheriff’s Office.
Polk County has indicated their crime analysis software would be
available at no charge since it was developed in the public domain.
Recommendation 153: Develop a strategy for

acquiring and installing crime analysis software. It will
provide real-time intelligence to units so that officers can
swiftly react to trends.
Recommendation 154: Authorize a crime analyst

position to generate accurate and timely intelligence to
enhance crime control.
CompStat relies on effective strategy and tactics and rapid deployment of

Bureau personnel and resources. The development of timely and
accurate intelligence will support effective strategy and tactics. There is
however an organizational issue that would be an obstacle to resource
deployment. The Patrol Services Section includes several elements that
should be under the direct command of the Patrol Division commander
including the Special Enforcement Unit, Traffic Support, School Resource
Officers and Community Policing.
Coordination of the work of the units with the patrol staff is important to
tactical operations. Currently, the units cooperate with patrol and there is
close communication between the two sections. A more effective and
efficient organization plan removes any potential barrier to coordinated
tactics would be to eliminate the Patrol Services as a separate section
and fully integrates all units in the Patrol Division. It would centralize all
field operations units (other than criminal investigations) under a single
operational command.
Recommendation 155: Eliminate the Patrol Services

Section and fully integrate assigned personnel within
the Patrol Division.
The elimination of the Patrol Services Section not only sets up more
effective tactical deployment, but also offers an opportunity for
efficiencies.
A lieutenant is currently in command of the Patrol Services Section. The

position would no longer be needed. There is a sergeant that supervises
the Community Policing Unit. The first-line supervisors would no longer
be needed with the complete integration of the units into the Patrol
Division.
Recommendation 156: Eliminate the Patrol Services

Division lieutenant, and the Community Policing
sergeant positions following complete integration of
section personnel in the Patrol function.

The Special Enforcement (SEU), Mounted Patrol, and Community

Policing units should be disbanded as permanent organization units
within the Patrol Division and incorporated into the mainstream Patrol
Division activities. Disbanding these units does not mean that the tactics
and resources used by the units should be abandoned. There may be
occasions that it is appropriate to mount a special operation, such as
currently done by the SEU. There may be times when mounted patrol
should be deployed. Mounted patrol is especially good for significant
community events that attract large crowds. And, since private donations
help to pay the added expense of mounted patrol, tactical deployment is
easier to justify.
What many police departments have learned from creating permanent

dedicated “special” units, such as the Special Enforcement Unit, is that
obstacles arise to incorporating a pro-active community policing culture
into personnel assigned to patrol activities. Patrol personnel tend to see
pro-active tactics as being the responsibility of the “special” units and,
consequently, are less prone to engage in officer-initiated activities. What
police leadership that has been successful in reducing crime has learned
and practices is that the bulk of resources for fighting crime – the officers
on patrol – must be pro-active and heavily engaged in officer initiated
activity that is guided by analysis, planning and sound tactical
deployment. In other words, police managers and patrol officers must
both understand that just responding to calls for service does very little to
deter crime. Creating permanent “special” units with the mission of
mounting pro-active operations to fight crime lets both police managers
and patrol units off the hook for developing tactics that engage the bulk of
the resources in pro-active policing.
Having said that, it does not mean that a good police department never
assigns patrol personnel to engage in a “special” operation. That
happens frequently. However, the timing and duration of such operations
is very precise – not a permanent and ongoing organizational feature. To
be sure, senior police managers’ leadership and planning skills will be
tested regarding how patrol resources are maximized and deployed for
fighting crime. And, senior police managers must be equipped with timely
intelligence as emphasized earlier to be positioned for success in this
matter. However, it is clear that relying on a strategy that day in and day
out puts the vast majority of department resources in a sector with the
emphasis on responding to calls for service is not the most effective crime
suppression strategy.
As is explained later in the report, Community Policing should be the

culture of the entire Patrol Division. A need for special enforcement or
mounted patrol is essentially a tactical decision, rather than a permanent
operation, and the Division’s organization plan must reflect the reality.
Recommendation 157: Disband the Mounted Patrol,

Special Enforcement and Community Policing units as
permanent organizational features of the Patrol
Division and assign the personnel to Patrol activities.

City of Lancaster
The School Resource Officers unit and the Traffic Support unit should
remain distinct organizational units in the Patrol Division. Both have
distinct operational objectives, some of which are contractual obligations.
While they remain distinct organizational units, they must be included in
the CompStat and Community Policing aspects of the Patrol Division’s
operations.
School Resource Officers can be the source of accurate intelligence

about crime patterns involving youthful offenders and gangs. Traffic
Support personnel, such as Parking Enforcement Aides, can be additional
eyes and ears on the street if appropriately incorporated into tactics and
planning. The Traffic Support unit should include school crossing,
sweeper enforcement, parking enforcement, abandoned vehicles, and
dog law enforcement. Other duties may be assigned as appropriate to
Patrol Division Operations.
Recommendation 158: Maintain the School Resource

Officer and Traffic Support units as distinct
organizational features of the Patrol Division.
Implementation of the CompStat policing model and reorganizing field

services personnel under a single command authority also positions the
Bureau to provide a more robust form of Community Policing. The most
important aspect of Community Policing is that it is proactive, based on
crime analysis and community outreach that is part of the operational
culture of the entire Patrol division.
In law enforcement agencies which provide the best models of

Community Policing, it is melded with CompStat. The CompStat model is
built on establishing specific objectives, development of situational tactics,
and assessment of results, all of which are all part and parcel of effective
Community Policing.
Recommendation 159: Establish procedures and

support methods of incorporating Community Policing
principles into the entire Patrol Division in conjunction
with CompStat.
Recommendation 160: Develop a plan for training all

Patrol Division personnel in Community Policing and
CompStat methodologies.
Patrol Staffing
In addition to the description above, making CompStat and Community

Policing possible depends on one other factor – patrol staffing. CompStat
and Community Policing rely on proactive tactics and community
outreach. It means that the patrol force must be structured and staffed to
be able to be proactive and outreach-oriented.

The International Association of Chiefs of Police (IACP) has established a

guideline for patrol staff planning which recommends that 33% of each
patrol officer’s time be available for tactical operations/officer initiated
activity/proactive patrol. Patrol staff must obviously respond to calls for
service. Patrol staff must also spend time on administrative duties and
service follow-up issues. For example, processing arrests and reports
means that the officer is not available for reactive or proactive patrol
duties.
The IACP’s guideline for patrol staffing is 33% of an officer’s time should
be made available for answering calls for service which originate with
citizens, usually through the E-911 center. Another one-third of the time
should be dedicated to proactive/Community Policing time. Together that
leaves the remaining 33% available for administrative duties, such as
report writing and training. The IACP guideline is the catalyst for
implementing CompStat/Community Policing. To implement the
CompStat/Community Policing model described heretofore, we analyzed
patrol staffing to determine the number of officers needed to implement
such a model in the City.
Patrol Officers in the City are scheduled to work a 12-hour fixed shift.
Under the schedule, officers work a pattern of two days on, two days off,
three days on, two days off, two days on, three days off.
Officers are organized under one of four platoons. Platoon A and Platoon
B are night-shift platoons and Platoons C and D are day-shift platoons.
Each platoon is staffed with a command lieutenant and one sergeant for
each of the four geographical quadrants of the City. Each platoon is also
staffed with a number of Zone Officers who are primarily responsible for
backfilling for absent sector officers. There are also designated patrol
officers who provide contracted law enforcement services to Lancaster
Township. Table 56 lists a breakdown of those patrol officers that respond
to calls for service in Lancaster and Lancaster Township.
TABLE 56: NUMBER OF PATROL OFFICERS RESPONDING TO DCFS
Platoon A B C D Total
Patrol Officers 12 14 13 13 52
Zone Officers 5 6 3 2 16
Lancaster Township Officers 3 3 2 2 10
Special Enforcement Unit - - - - 7
Mounted - - 2 1 3
Community Policing - - - - 4
Light Duty/Admin Leave 8
Total 25 28 24 23 100
Some of the officers included in the count are currently assigned to the
Patrol Services Section, such as community policing or mounted patrol. In
addition four officers currently on light duty and four officers on
administrative leave for disciplinary reasons are assigned to patrol. The

City of Lancaster
Chief reports that the light duty officers will soon be placed on disability
and the four positions returned to patrol. The personnel on administrative
leave will either be discharged or complete their suspensions so the
positions will be returned to patrol. Thus, there are 100 officer positions
nominally allocated to patrol.
Calculation Methodology
It is important to analyze patrol workload to determine if the Patrol
Division is adequately staffed to meet workload requirements, as well as
internal and external service delivery expectations. To complete the
analysis, Management Partners requested from the Bureau a breakdown
of total number of hours spent responding to dispatched calls for services
(DCFS) in 2006 by both hour of the day and day of the week. DCFS are
the incidents which occur when a citizen uses the E-911 system to
request police services. It is an external demand and the Patrol Division
must respond to it in some fashion. Currently, the response is dispatching
a patrol unit or units to answer the call.
Responses to DCFS are one of the three main components of work

performed by patrol officers (proactive and administrative being the other
two) and are the primary external driver of patrol workload.
To determine whether the IACP recommendation is currently met in the

Lancaster Patrol Division, Management Partners identified the number of
hours an average patrol officer is available to work. Under a 12-hour fixed
schedule, a patrol officer is scheduled to work 2,080 hours per year. In
reality, patrol officers are available to work fewer hours over the year due
to vacation, holiday leave, sick leave, training and other types of leave.
In order to identify how many hours over the course of a year the average
officer is actually available to work, the Lancaster Human Resources
Bureau provided 2006 leave data for patrol officers. The data provided
establishes the average patrol officer is available to work 1,524 hours per
year, after deducting time for various forms of leave. The calculation used
to determine availability is summarized below:
Annual Scheduled Hours………………………………2,080 hours
Less Average Vacation Time……………………………187 hours

Less Holiday Time…………………………………..……136 hours
Less Average Sick Leave……………………..…………..77 hours
Less Average Injured Time Off……………..…………….12 hours
Less Average Training Leave…………………………...144 hours
Less Military Time Off……………………..………………11 hours
Hours Available After Deducting Average Time Off………..1,513
Applying the IACP guideline to the data suggests that the average patrol
officer should spend approximately 504 hours responding to DCFS over

the course of a year, which equates to 33% of an average officer’s

available time. It would leave approximately 1,009 hours of annual
availability per officer to compete officer initiated activities and
administrative duties.
Patrol Staffing Standard

Having identified the number of hours an average patrol officer is
available to work each year, as well as the number of hours an average
officer should devote to DCFS response under the IACP
recommendation, it is necessary to apply that data to actual 2006 DCFS
service time workload to determine how many FTE patrol officers are
required to meet the IACP recommendation.
Management Partners was provided two sets of data regarding hours

consumed responding to calls for service. One set of data, provided by
the Lancaster County E0-911 Center indicated that 40,486 hours were
spent on this activity. The Lancaster Information Technology staff
provided data that indicates the Police Bureau expended 54,376 hours
responding to dispatched calls for service in 2006. Lancaster police staff
was not able to reconcile the two sets of data, nor explain the reason for
the differences. In this circumstance, the prudent choice is to use the
higher total and base the staffing requirement on that number of hours.
The cumulative data represents the total time all officers were tied up
responding to calls for service. As previously discussed, to meet the IACP
recommendation, the average officer should spend 5048 hours per year
responding to dispatched calls for service.
By dividing the total number of hours spent responding to calls for service
in 2006 (54,376) by the number of hours each officer should devote
annually to DCFS response (504), Management Partners determined the
Lancaster Patrol Division should be staffed with 108 patrol officers to
meet the IACP recommendation. The Patrol Division currently has 100
officers authorized, meaning that to meet IACP standards with the 12-
hour sift schedule an additional 8 officers would be required.
Comparing Shift Schedules

Management Partners’ experience with 12-hour shifts is that they are
generally not the best schedule for matching up to demand, nor are they
the most cost-effective. Given that experience, it is appropriate to
calculate the number of staff that would be required to meet the IACP
staffing recommendation with 10-hour and eight-hour shift alternatives.
There is no empirical formula that has been developed by the industry for
converting leave experience with one work schedule to another work
schedule. To calculate the staff availability factor for different work
schedules, the most prudent course of action is to convert the Police
Bureau’s actual experience with leave under the current work schedule to

City of Lancaster
alternative work schedules. Any other methodology for conversion would

be more speculative than converting the most recent actual experience.
The methodology used by Management Partners is to convert the actual
experience in hours of leave used to the number of shifts missed due to
use of leave and then apply that number of shifts missed to the hours
availability calculation of alternative schedules.
For example, the average Lancaster officer takes a total of 567 hours of
leave and training time per year under a 12-hour shift, which equates to
an average of 46 shifts missed per year (556/12).
Using the data, we can apply the average number of shifts missed per
year in 2006 to a 10-hour and eight-hour shift to determine the number of
officers that must be employed under each shift alternative to meet the
IACP staffing recommendation.
Under a 10-hour shift, an officer is scheduled to be on duty for a total of

2,080 hours per year. Actual 2006 data demonstrates the average police
officer misses approximately 35 shifts per year due to various forms of
leave. In addition, officers are entitled to 136 hours of holiday leave.
Under a 10-hour shift, 36 shifts equates to a total of 360 hours of leave
plus 136 hours of holiday leave, for a total unavailability factor of 496
hours.
To determine the actual number of hours that an officer is available under

a 10-hour shift, the number of hours absent due to leave (496) must be
subtracted from the number of hours an officer is scheduled to be on duty
(2,080).
Applying the equation, the number of hours an officer is actually available

under a 10-hour shift is 1,584 hours per year. When applying the IACP
recommendation to a 10-hour shift, an average officer should spend 528
hours per year responding to dispatched calls for service, which equates
to 33% of the average officer’s available time.
After the number of hours an officer should dedicate to DCFS response

under a 10-hour schedule is identified, we can then factor how many total
officers are required to meet the IACP recommendation under a 10-hour
shift by dividing the total number of hours spent responding to calls for
service in 2006 (54,376) by the number of hours each officer should
spend responding to DCFS over the course of the year (528). The
application of the equation indicates 103 officers are required to meet the
IACP staffing recommendation under a 10-hour shift. This is three more
than currently assigned to the Patrol Division but five fewer than required
with a twelve-hour shift schedule.
The same analysis can be completed for an eight-hour shift. Under an

eight-hour shift, an officer is scheduled to be on duty for 2,080 hours per
year. The average number of shifts missed in 2006 was 36, which
equates to a total of 288 hours per officer under an eight-hour shift. In
addition, officers would receive 136 hours of holiday leave. By subtracting

the number of hours taken in leave (424) from the number of hours an
officer is scheduled to work (2,080), we see that under an eight-hour shift,
the average officer is actually available to work 1,656 hour per year. The
result indicates the average officer should spend 552 hours per year
responding to DCFS or is 33% of the average officer’s available time to
meet the IACP recommendation under an eight-hour shift.
By dividing the total number of hours spent responding to DCFS in 2006

(54,376) by the number of hours each officer should spend responding to
DCFS under an eight-hour schedule (552), we can deduce that 99
officers would be required to meet the IACP staffing recommendation
under an eight-hour shift. This is one fewer than currently assigned, but
four and nine officers fewer respectively compared to the ten and twelve
hour shift schedules.
Table 57 compares staffing calculations for each shift and demonstrates

the total number of staff required to meet the IACP recommendation for
each shift alternative.
TABLE 57: ADJUSTED IACP STAFFING REQUIREMENTS FOR EACH SCHEDULE

ALTERNATIVE
12 Hour 4 x 10 5/2 – 5/3

Hours scheduled to be on duty 2,080 2,080 2,080
Hours absent 567 496 424
Hours available
(Hours scheduled less hours available) 1,513 1,584 1,656
Number of hours to be directed to
DCFS response under IACP rec.
(33% of hours available) 504 528 552
2006 DCFS response hours 54,376 54,376 54,376
Current number of patrol officers who
respond to DCFS 100 100 100
Number of officers needed to meet
IACP staffing recommendation 108 103 99
Patrol officer staffing change to meet
the IACP staffing recommendation +8 +3 -1
A comparison of staffing requirements for each schedule alternative

demonstrates an eight-hour shift requires the fewest staff to meet the
IACP staffing recommendation.
While workload data has shown an eight-hour shift is the most cost
effective shift available for consideration in the City, it is also important to
evaluate how a given shift schedule allows the Bureau to address the
ebbs and flows of workload. For example, a shift schedule must permit
the distribution of resources to meet varying workload patterns. Figure 7
demonstrates the annual service hour workload trend by hour of the day
and day of the week.

City of Lancaster
FIGURE 7: NUMBER OF HOURS SPENT RESPONDING TO DCFS
800
700
600
500
400
300
200
100
Sun M on Tue Wed Thu Fri Sat
Number of Hours Spent on Dispatched Calls for Service
Workload patterns in the Police Department are characteristic of

departments across the country. The Department sees general increases
in the amount of time spent responding to calls for service from 0700 to
1300 hours during the weekday with workload peeking at approximately
1900 hours. The Department also experiences an increase in workload
from 2300 hours through 0200 hours on Friday and Saturday nights,
which is typical of urban jurisdictions.
The Patrol Division 12-hour shift schedules are organized in a common

way: four platoons of nearly equal personnel strength. The demand
pattern plays no role in scheduling because there is little flexibility in such
a schedule.
An eight-hour shift provides the Police Department with far greater

flexibility about how best to deploy resources in order meet workload than
does a 12-hour shift. With eight-hour shifts, starting times and power shift
times can be better matched to the demand profile.
Switching from a 12-hour shift to an eight-hour shift will provide a number

of benefits to the City. First and foremost, it will allow the Department to
meet the IACP recommendation for proactive policing with fewer staff.
Secondly and equally important, it will allow greater flexibility in the
deployment of officers to meet demand and allow officer deployment to
more closely match workload requirements.
Recommendation 161: Reconfigure the patrol

schedule and organization from 12-hour to eight-hour
shifts.

Sergeant Staffing
Sergeants were excluded from the patrol staffing analysis detailed above
because Management Partners uses a separate formula to calculate
supervisory staffing requirements. The primary factor influencing sergeant
staffing requirements is span of control, rather than DCFS workload. To
define how many sergeants are needed in a given patrol operation, one
must first define the appropriate ratio of patrol officers to sergeants.
The IACP recommendation for police officers to sergeants is no fewer

than six and no more than 10 patrol officers per sergeant.
Currently, the Patrol Division is staffed with 16 sergeants who are

responsible for 100 patrol officers. It equates to a ratio of 6.25 officers for
every sergeant, which is within the IACP recommended standard. The 16
sergeant staffing level currently utilized is derived by assigning a sergeant
to each of the four quadrants of the City. Management Partners’ opinion
is the span of control, rather than geography, is a better basis for
assigning supervision.
Management Partners generally favors the mid-point of the IACP

recommended range – one sergeant for every eight officers. Applying
that ratio to the recommended eight-hour shift schedule of 98 officers
would mean that 12 sergeants would be needed – four fewer than
currently authorized.
Recommendation 162: Staff the Patrol Division with 12

sergeants.
Cost Implications of Patrol Recommendations

The recommendations made for the Patrol Division would result in . a
reduction of eight sworn personnel with no reduction in the quality of
service. One lieutenant and one sergeant would be eliminated by
disbanding the Patrol Services Section as a separate unit. Four
sergeants would be eliminated by applying a staffing ratio of one sergeant
for every eight officers. Two officers would be eliminated due to changing
from a 12 hour shift schedule to an eight-hour shift schedule. One crime
analyst position would be added and a possible one-time cost incurred for
crime analysis software.
Based on overall analysis of the Bureau of Police 2007 budgeted labor

cost, 67% is due to salary and 33% is due to benefits. Non-labor
operating cost in 2007 averages about $6,600 per employee. We
estimate about half of the non-labor cost is directly tied to the number of
employees. Table 58 summarizes the estimated financial impact of the
Patrol Division recommendations.

City of Lancaster
TABLE 58: ESTIMATE OF FINANCIAL IMPACT OF PATROL DIVISION RECOMMENDATIONS
Action Description Salary Benefits Non-labor Total $

Eliminate Lieutenant $69,257 $22,855 $3,300 $95,412
Eliminate 5 Sergeants $301,125 $99,370 $16,500 $416,995
Eliminate 1 Officers $44,513 $14,689 $3,300 $62,502
Add Crime Analyst ($60,225) ($19,874) ($3,300) ($83,399)
Total All $354,670 $117,040 $19,800 $491,510
In addition, there may be a one-time cost for acquiring crime analysis

software. As noted above, there is also potential that crime analysis
software might be acquired at no cost. We have not attempted to
estimate what the cost might be, since crime analysis software has
significant variances in features and price.
Telephone Reporting
The Bureau of Police uses differential response to 911 calls as a factor of

its service philosophy. Differential response means that not all 911 calls
for service are considered equal. The Bureau receives its 911 calls for
service through the County E-911 Center. At the Center 911 calls are
classified as one of seven priorities. The calls with higher priority calls
receive a response before lower priority calls.
Bureau policy states all calls will eventually receive a dispatch by a

uniformed officer. Lower priority calls may take many minutes if not hours
if patrol forces are busy. From time to time, the Bureau has used light
duty officers or officers on administrative leave for what is known as
telephone reporting. Light duty officers are not always available and at
times, even when available, are not used to take telephone reports. The
erratic nature of administrative leave/light duty officer availability
precludes the possibility of mounting a programmatic approach to
telephone reporting.
Telephone reporting is a system used by many law enforcement agencies

as a force multiplier. Characteristically, lower priority calls usually result in
an officer being dispatched to the incident with the only action available
being to take a report. In other words, the officer functions as a
stenographer, entering the incident details on a report form.
Law enforcement agencies have found response protocols for low priority
calls are not only expensive but the worst kind of public relations because
it typically takes a longer time than a citizen expects to have a unit
available to respond. Consequently, citizens view the agency as slow to
respond.
With a telephone reporting protocol, when a low priority call is received,

the citizen is given the opportunity to speak immediately to a trained

report taker who is available within a matter of minutes if not immediately.

A citizen does not have to wait for an available uniformed person to take
the report. A Bureau that utilizes telephone reporting generally feels it is
better service and better public relations. Just as important, by not tying
up police officer time just taking reports, sworn personnel are more
available to engage in activities designed to control crime, such as
community policing.
In 2006, Patrol Division units were dispatched 115,202 times through the
County 911 Center. Just over 50,000 of the dispatches were for priority
seven calls – the lowest priority. In other words, over 40% of the
dispatches were for the least important calls.
As shown earlier, the time consumed by answering DCFS was 54,376

hours in 2006 which means the average time spent per call for service
was approximately 28 minutes. If priority seven calls averaged just 10
minutes each, patrol staff spent 8,333 hours on the lowest priority activity.
It is not unreasonable to assume that 50% of priority seven calls could be
handled by telephone reporting. Remembering the average time
available per officer to respond to DCFS on an eight-hour shift is 552, the
equivalents of nearly 8 officers are being used for priority seven calls. The
economic value of 8officers is $535,715.
Priority seven calls include assistance in progress, animal complaint,

follow-up on found property, harassment not in progress, ordinance
violation, parking complaint, police activity, premise security check, theft
not in progress, vandalism not in progress, vehicle break-In not in
progress.
The King County, Washington, Sheriff’s 911 Center reports its telephone
reporting unit spends an average of eight minutes per report which means
if there are 50,000 reports taken, the average number of minutes per hour
over the course of a year would be is 45 minutes per hour. To provide
one person around the clock to staff the telephone reporting unit would
require hiring six personnel.
If the average cost per report taker for salary and benefits is $40,000, a
telephone reporting units would cost approximately $240,000 annually.
The unit staffing could be supplemented with light duty officers and
officers on administrative leave, a practice common in many departments
that use telephone reporting. Given that $535,715in officer time is being
consumed by taking the same reports a potential savings of $295,715
could be realized. Alternatively, the freed up resource could be used for
additional community policing activity or redirected to another Bureau
activity, such as criminal investigations.
Recommendation 163: Implement telephone reporting

for the lowest priority 911 calls.

City of Lancaster
Detention Staffing
The Detention unit is responsible for processing persons arrested by the
Lancaster Police Bureau and holding them for arraignment. Detention
personnel are trained civilians working 12-hour shifts in four platoons.
Current staffing for detention is 17 Community Service Aides.
Just as in patrol, a more efficient staffing level would be realized with an

eight-hour shift. Minimum staffing for detention is two per shift. The relief
factor for an eight-hour shift is 1.62. Four persons per shift would have to
be employed, a total of 12 to provide 24-hour coverage.
Since there are currently 17 positions authorized for the function, a total
of five positions could be reduced without impacting the quality of service.
If the average salary and benefits cost of a Community Service Aide is
approximately $40,000, the savings would be $200,000.
Recommendation 164: Implement an eight-hour shift

for detention personnel.
Quartermaster
A Quartermaster is responsible for ordering, receiving and distributing
certain supplies, uniforms and equipment for the Bureau. Quartermaster
duties are assigned to a police sergeant. There is nothing in the job duties
of the position that requires the use of police powers.
The position could and should be filled by a civilian at a reduced cost.

The cost of a police sergeant is approximately $83,400. The cost of a
trained civilian would be approximately $40,000 – a potential savings of
$43,000.
Recommendation 165: Replace the police sergeant

serving as quartermaster with a trained civilian.
Criminal Investigations Division

The most significant issue with the Criminal Investigations Division (CID)
is the backlog of investigations. The phenomenon is not uncommon in
the industry. Most investigative units have more workload than resources.
Unlike patrol operations, no national staffing standards have evolved for

CID operations. Rather, local priorities and preferences have dictated the
focus and staffing levels of CIDs. State-of-the-art CIDs have developed
work around systems for staffing short falls. Using solvability indices and
electronic case management systems have proven their mettle in
upgrading the effectiveness of investigative units.

Solvability indices are nothing more than articulated filters used to screen
cases to determine which cases have the highest likelihood of being
solved. Many CIDs instinctively use filters but for most of them it is
informal rather than formal with written guidelines for screening. Such is
the case with the Lancaster CID.
Recommendation 166: Develop case solvability

indices for criminal investigations and assign cases
based on solvability.
Electronic case management systems are important for tracking cases

which are assigned and creating an inventory of unassigned cases.
Electronic case management provides supervisors an easily used tool to
review investigation progress and improve investigative efficiency. There
is case management software on the market for a relatively reasonable
price.
Recommendation 167: Acquire case management

software for criminal investigations.
One other element which has proven to be helpful in the area of criminal
investigations is the creation of regional databases for tracking cases.
Entering information about each case -- whether it is actively being
investigated or not facilitates inter-agency cooperation -- can often clear
cases. Criminals do not observe political boundaries and typically move
freely among jurisdictions pursuing opportunities.
It is not uncommon in the process of arresting a person for one crime to

lead to the closure on a number of crimes. A regional database for crime
data would be useful in clearing unsolved crime. More importantly, the
information in such a database would provide useful intelligence about
crime patterns and trends in the region that could actually lead to arrests.
Developing regional databases requires leadership and vision. The Mayor

and Police Chief should develop a strategy for creating a regional
partnership that would lead to the development of regional efforts to track
and analyze crime trends and patterns.
Recommendation 168: Initiate efforts to create regional

approaches to crime tracking and analysis.
Performance Measurement
A culture of continuous improvement requires a system for measuring

Bureau performance to be implemented. Performance measurement
requires the Bureau to define its major business processes and services.
For each such process or service, descriptions of the output, efficiency
and effectiveness must be articulated. The descriptions become the
performance measures for the Bureau. In conjunction with performance

City of Lancaster
measures, performance standards are established to define what success

looks like and to provide an objective basis for reporting on performance.
Reporting on performance must be regular, transparent and widely
available. The Bureau should implement a system of performance
measurement. Specific performance measures for the Bureau have been
provided as an element of the report.

measurement system in the Bureau of Police.
Suggested performance measures for the Police Bureau
have been included as Attachment M.
Savings/Cost Implications Summary
Table 59 summarizes the savings and cost implications of the 16

recommendations of the management audit of the Bureau of Police.
TABLE 59: POTENTIAL SAVINGS AND COST OF POLICE BUREAU MANAGEMENT AUDIT
RECOMMENDATIONS
Action Savings Cost

Patrol Division
Eliminate Patrol Services Lieutenant $95,412 $0
Implement IACP Supervisory Ratio - Eliminate 5
Sergeants $416,985 $0
Change to 8 hour shift meet IACP staffing standards
– add 6 officers $62,502 $0
Implement CompStat – Add Crime Analyst $0 $83,399
Implement Telephone Reporting for Priority 7 Calls –
Eliminate 15 Patrol Officers; Add 6 Report Takers $535,715 $240,000
Administration Division
Change Detention to 8 hour shift – Eliminate 5 staff $200,000 $0
Civilianize Quartermaster position – Eliminate 1
sergeant; add 1 clerk $83,400 $40,000
Criminal Investigation Division
Install Case Management Software $0 $10,000
TOTAL $1,394,014 $373,399
Implementing all the recommendations of the management audit could

generate a net savings of $1,384,014 a year. As the management audit
pointed out, it is certainly worth considering using some of the potential
savings to improve service.
For example, implementing telephone reporting for the lowest priority

calls for service but not reducing patrol strength would generate the
equivalent of adding 8 officers at no cost. The improved productivity could
be used in a number of ways such as strengthening community policing
or beefing up criminal investigations and still generate a net savings of
nearly $500,000.

FIRE BUREAU
Overview
The Lancaster Fire Bureau provides fire protection services to the 7.3
square miles of Lancaster. In addition, there are mutual aid agreements
with all other fire protection jurisdictions in Lancaster County. Mutual aid
means the Lancaster Fire Bureau will respond upon request to assist
other jurisdictions outside the corporate boundaries of the City of
Lancaster. Mutual aid is a common industry practice.
When Mayor Gray took office in 2006, the City engaged in a focus
strategic planning process. Based on the program, the Fire Bureau has a
number of established goals for 2007, including:
Develop a comprehensive training program with available

resources
Complete the establishment of the Firefighter Foundation and
secure contributions
Increase staffing in the Fire Marshall Division to assist with code
enforcement
Update the City-wide Emergency Management Plan
Inspect, service, and test the flow of all City fire hydrants
Aggressively recruit City residents to apply for positions in the Fire
Bureau
Purchase wireless Toughbook computers for fire apparatus
Review contractual agreements with other municipalities and
entities for police and fire services to ensure that contracts are
current and cost effective
Establish a special unit which utilizes fire, housing, and police
resources to attack nuisance crimes in the neighborhoods
Review the fee structure and processes used for building plan
inspections and Fire Bureau inspections
Using Harrisburg as a model, sell fire protection services to
supplement surrounding municipalities with specific consideration
to the use of paid drivers

City of Lancaster
Personnel
As shown in Table 60, the Lancaster Bureau of Fire has a total of 90

positions authorized according to the 2007 budget. Eighty-eight positions
are sworn personnel and two are civilians
TABLE 60: LANCASTER BUREAU OF FIRE 2007 AUTHORIZED POSITIONS
Number of
Position Title Positions
Fire Chief 1
Deputy Fire Chief 1
Battalion Chief 4
Captain 5
Lieutenant 19
Firefighter 58
Maintenance Officer 1
Total Sworn 89
Civilian 2
Total All 91
The positions are spread among organizational units as shown in Table

61.
TABLE 61: LANCASTER BUREAU OF FIRE POSITIONS BY ORGANIZATIONAL UNIT
Organizational Unit/Position Title Number of Positions

Administration
Fire Chief 1
Fire Bureau Administrator 1*
Total Administration 2
r Operations
Deputy Chief 1
Battalion Chief 4
Captain 4
Lieutenant 16
Firefighter 58
Maintenance Officer 1
Total Operations 84
Fire Prevention
Captain/Fire Marshal 1
Lieutenant/Asst. Fire Marshal 3
Fire Clerk 1*
Total Fire Prevention 5
*Denotes civilian position
The staffing history of the Bureau of Fire since 2000 is shown in Table 62.

TABLE 62: LANCASTER BUREAU OF FIRE AUTHORIZED POSITIONS 2000 - 2007
2000 2001 2002 2003 2004 2005 2006 2007

Chief 1 1 1 1 1 1 1 1
Dep. Chief 1 1 1 1 1 1 1 1
Battalion Chiefs 4 4 4 4 4 4 4 4
Captains 4 4 4 4 4 4 4 4
Fire Marshalls* 4 4 4 4 4 4 4 4
Lieutenants 16 16 16 16 16 16 16 16
Maintenance Officer 1 1 1 1 1 1 1 1
Firefighters 56 56 57 56 56 56 56 58
Admin Personnel 2 2 2 2 2 2 2 2
TOTALS 89 89 90 89 89 89 89 91
* Includes Senior Fire Prevention Officer/Fire Marshall at rank of Captain

& 3 Assistant Fire Marshalls
2007 Budget
The 2007 budget for the Bureau of Fire totals $8,834,306. Labor cost,
including salaries and benefits are $8,433,456, or 95% of total budgeted
cost. Labor cost is composed of $5,128,447 for salaries and overtime,
$2,215,000 for health insurance and $1,090,009 for pension
contributions. Non-personnel expense for 2007 is budgeted at $400,850.
The 2007 Bureau of Fire budget comprises 20% of the total 2007
Lancaster General Fund Budget.
The organization chart for the Bureau of Fire is shown as Figure 8.

City of Lancaster
FIGURE 8: BUREAU OF FIRE ORGANIZATION CHART
L a n c a s te r B u re a u o f F ire
O rg a n iz a tio n C h a rt
A d m in is tra tio n
F ire C h ie f
A d m in is tra tio n F ire P re v e n tio n

O p e ra tio n s
F ire B u re a u C a p ta in /F ire
D e p u ty C h ie f
A d m in is tra to r M a rs h a ll
F ire P re v e n tio n
A d m in is tra tio n
L ie u te n a n t/A s s t F ire
F ire C le rk
M a rs h a ll (3 )
P la to o n A P la to o n B P la to o n C P la to o n D
B a tta lio n C h ie f B a tta lio n C h ie f B a tta lio n C h ie f B a tta lio n C h ie f
C a p ta in (1 ) C a p ta in C a p ta in C a p ta in
(1 ) (1 ) (1 )
L ie u te n a n t L ie u te n a n t L ie u te n a n t L ie u te n a n t
(4 ) (4 ) (4 ) (4 )
F ire fig h te r F ire fig h te r F ire fig h te r

F ire fig h te r
(1 4 ) (1 4 ) (1 4 )
(1 5 )
Operations
The Operations Division responds to all fire calls, emergency medical

service calls which might require automatic external defibrillator
application, and vehicular accidents. The Operations Division also
responds to hazardous materials (hazmat) incidents inside the City and
participates with the County in responding to such incidents outside of the
City (for which they are reimbursed by the County). Selected Operations
Division staff is being trained to provide search and rescue service with
the objective of participating in such activities in the future.
The Division also participates in the County Foam Task Force. The
Operations Division participates in the County’s emergency management
plans and is responsible for emergency management within the City.
Operations Division personnel are responsible for fire hydrant

inspections. The Fire Chief is working to delegate the responsibility for

annual commercial property inspections to the Division.
Table 63 shows the five-year history of responses for all incidents.
TABLE 63: FIVE YEAR HISTORY OF INCIDENT RESPONSES
2002 2003 2004 2005 2006

Fire 339 347 249 305 305
Rupture 9 18 20 24 28
Rescue 251 345 384 419 399
Hazard 419 422 397 332 379
Good Intent 522 288 288 225 266
False Alarm 856 924 814 744 817
Public Service 231 270 424 319 348
Other 0 90 50 27 31
Total 2627 2704 2626 2395 2573
Table 64 shows the five-year history of types of fires.
TABLE 64: FIVE YEAR HISTORY OF TYPES OF FIRES
2002 2003 2004 2005 2006

Structure 156 191 136 67 167
Vehicle 77 59 51 44 53
Other 106 97 62 100 85
Total 339 347 249 305 305
The City has three fire stations, each of which has an engine company
and two of which have a truck company, a total of five front-line
apparatus. There are three reserve engines, one of which is hazmat
equipped.
The Operations Division is organized into four platoons, each under the
command of a Battalion Chief. Three of the four platoons have 20
personnel assigned and one platoon has 21 personnel. Due to leave time
off, it is rare for all 20 or 21 assigned personnel to be working
simultaneously. Scheduled staffing is three persons per apparatus, a
total of 15, but sometimes an apparatus works with only two personnel.
Minimum shift staffing is thirteen.
First alarm response includes the Battalion Chief and at least one
company, depending on the nature/location of the first alarm. Second
alarms deploy all front-line apparatus at the incident scene and the next
platoon scheduled to work is called in to staff reserve apparatus. Third
alarm deploys the staffed reserve companies to the scene. A general
alarm recalls all personnel and invokes mutual aid.

City of Lancaster
Each day is divided into a 10-hour work segment and a 14-hour work
segment. Platoons alternate workday segments. Each platoon works two
straight day shifts, then two straights night shifts then is off four days.
The Maintenance Officer works out of the Operations Division. In addition

to maintaining the vehicle fleet, the position is responsible for maintaining
much of the apparatus and personnel equipment, such as pumps and
breathing gear. There are 16 vehicles consisting of eight apparatus and
eight cars/trucks. The car and truck fleet is significantly aged, with cars
and trucks that are used daily between 11 and 24 years old. Front-line
apparatus is between five and 18 years old.
The Operations Division had four active stations in 1995 compared to the
current three stations. There were four rescue engine companies and two
truck companies at the time compared to the two rescue engine
companies, one engine company and two truck companies today. In
1996, two stations were closed and a rescue engine company was
eliminated, along with personnel layoffs. In 1998, one of the closed
stations was re-opened and the current deployment plan of three stations
staffed by five companies, three rescue engines and two trucks, was
implemented.
Fire Prevention
The Fire Prevention Division is responsible for enforcement of the fire

code, determining cause of fires, arson investigation, public education,
and public relations. There are many tasks associated with fire code
enforcement duties including: plans reviews; annual inspection of
commercial buildings; inspection of new construction; monitoring places
of public assembly, issuing certificates of fitness to companies performing
work regulated by the fire code are a few of such tasks; and, investigating
fire code complaints.
The Fire Prevention Division has a total of five personnel: a Captain/Fire

Marshal, three Lieutenant/Assistant Fire Marshals, and a Fire Clerk.
Uniformed personnel work four ten-hour days and the Fire Clerk works an
eight-hour shift.
Table 65 shows the trend in the number of plans reviewed by the Fire
Prevention Division over the last five years.
TABLE 65: NUMBER OF PLANS REVIEWED FOR FIRE CODE COMPLIANCE
2002 2003 2004 2005 2006

Number of Plans Reviewed 147 137 169 196 246
The number of plans reviewed for fire code compliance has been
increasing steadily due to the emphasis on economic development in the
City.

The Fire Prevention Division has an annual inspection program for sites
requiring permits as specified by the fire code. It includes sites such as
public assembly areas, like Clipper Stadium, and commercial facilities
that have Underwriters Laboratory Certified fire alarms. In addition to the
annual inspection program, the Division also inspects on all fire code
complaints received by the Bureau, issues citations and notices of
violation and issues certificates of fitness to individuals or companies to
perform services related to fire safety and the fire code. Table 66 shows
the five year history of code enforcement activities.
TABLE 66: NUMBER OF CODE ENFORCEMENT ACTIVITIES
2002 2003 2004 2005 2006

Annual Inspections 972 959 959 970 1,003
Complaints Inspected 514 611 695 714 674
Citations Issued 132 64 40 47 56
Notice of Violation Issued 42 10 9 240 183
Certificate of Fitness Issued 211 194 344 449 471

Eighty-three of the ninety personnel in the Bureau serve in the Operations
Division. Accordingly, the bulk of the analysis is focused on the
organizational unit.
The Operations Division is economically organized in that there are

between 13 and 19 fire suppression personnel on duty at any given time.
The Fire Prevention Division personnel who are on-duty respond to
supplement fire suppression personnel in instances of multiple alarms.
The off-duty personnel are called in to staff reserve apparatus in the case
of multiple alarm fires.
The staffing levels are as economical as possible while also meeting the
“two in two out” standard of the National Fire Protection Association. The
standard advises for firefighter safety, there should be two personnel
outside the fire scene before two personnel enter the fire scene to
commence suppression, search and rescue activities.
The scope of the study did not include analysis of fire station locations to
determine whether it would be possible to reduce the number of fire
companies in service. Some general principles and observations can be
cited as indicators that a reduction in fire companies is not advisable.
The City is an older, historic city that has high-density construction. Many
of the oldest commercial and residential areas are built with “row-house”
construction, meaning separate structures have adjoining walls. While
most of this row-house configuration is composed of brick material, some
appears to be wood frame construction.

City of Lancaster
The density of building structures increases the importance of speedy fire

suppression response. Fire flashover in structures is typically ten minutes
or less. When time is subtracted for the fire to be detected, reported, and
apparatus to leave the station and scene time for stretching hose and
providing water supply, most station location models recommend travel
time be limited to four minutes. Although the City is compact, it is difficult
to believe that a four-minute travel time could be regularly achieved with
two fire stations.
The 184 incidents in 2006 with multiple alarm fires and fires with damage
exceeding $10,000, illustrates current station location and number of
companies is effective regarding response time and suppression. The
incidents involved property valued at over $1.5 billion. The property loss
from the fires was $1,654,090 – less than1%. There was one civilian
death and no firefighter deaths as a consequence of the incidents.
Recommendation 170: Maintain the current fire

suppression strength of five on-duty companies.
The scope of work of the study did not include optimizing fire station
locations. Although fire loss experience indicates current station locations
are proving to be well situated, it is prudent to initiate a detailed location
study in the near future.
While it is not advisable to reduce the number of fire stations or the

response protocols, it is possible that the same service level might be
maintained with fewer personnel if the shift schedule were modified.
Emergency service operations calculate what is known as the relief factor

to determine staffing needs. The relief factor accounts for leave time off,
such as vacation and sick leave, to determine the number of personnel
that must be hired to staff a position around the clock. Currently, fire
platoons work a 10/14 schedule. The schedule requires four platoons to
operate.
The relief factor, based on average time off data, supplied by the City’s
Human Resources Department, for fire suppression personnel is 5.03. In
other words, with the current schedule and time off experience, it is
necessary to hire five people to staff one position around the clock. The
current scheduled staffing plan for fire companies is three per company
and one battalion chief, a total of 16 positions per shift.
Applying the relief factor for the current shift schedule – 5.03 – to the 16
required per shift produces a result of 80 personnel needed. There are
81 authorized positions for the four platoons, slightly higher than
necessary.
The relief factor for a 24 hours on / 48 hours off shift is 4.25. In other
words to cover one position for 24 hours 365 days a year, it would be
necessary to hire 4.25 persons. In order to maintain current scheduled
daily staffing of16 personnel around the clock, the required staffing would

be 68 personnel. There are currently 81 positions authorized for fire

suppression duties in the Operations Division. The 24 hours on / 48 hours
off shift schedule could result in a reduction of 13 positions without
impacting service level or response time.
The average salary, overtime and benefit cost per Bureau of Fire
employee for 2007 is $93,705. Total 2007 budgeted salary, overtime and
benefits cost for the Bureau is $8,433,456 and there are 90 authorized
positions. Thirteen positions would equal slightly more than $1,218,000 in
cost.
Shift schedule changes must be negotiated with IAFF Local 319.
Recommendation 171: Develop a plan to transition the

fire suppression work schedule from the current 10
hour/14 hour schedule to a 24 hour on 48 hour off
schedule.
In 2006, Bureau overtime cost was slightly more than $122,000 – an

average of $1,407 for each of the 87 uniformed personnel eligible for
overtime. There were 483 separate overtime incidents in 2006, an
average of 1.32 per day. Of the 483 incidents 202, were for call in due to
extra alarms, 57 were to replace persons off sick, and 34 to replace staff
taking compensatory time.
The use of overtime in 2006 appears to be judicious. The overtime for

extra alarm call in could only be reduced if the City administration felt it
was not necessary to staff reserve apparatus for a second alarm. At a
second alarm, all on-duty personnel, including fire prevention staff is
deployed to the fire scene, leaving no front-line apparatus available for
response. Having continuous response availability is standard industry
operating procedure. The only situation when it might not be the case is in
the event of a general alarm when all available personnel are deployed to
the fire scene. We would not advocate a change in the current reserve
call in protocol.
In any event, overtime for 2007 is budgeted at $140,000. Through the

first five months of the year, total overtime cost was slightly more than
$57,000. Overtime is being controlled even more so than in 2006.
Management Partners reviewed the process of vacation selection. In our

experience it is not unusual for emergency services overtime costs to
increase during the summer time because of a preference for summer
vacations. The vacation selection system used by the Bureau of Fire has
been successful in not generating overtime cost. Selection procedure
limits the number of persons scheduled to be off for vacation to four per
shift. In 2006, there were 11 overtime incidents costing $6,120 that were
attributable to staffing shortfalls due to vacation overlap. The vacation
selection process passes the test of economy.

City of Lancaster
A private vendor provides emergency medical service (EMS) in the City.

EMS is dispatched by Lancaster County. Limited first responder service
is provided by the Bureau by responding to all calls which meet the
criteria for automatic external defibrillator application. The Bureau also
responds at the request of the EMS vendor when assistance is needed,
such as lifting patients. Bureau managers characterize relations with the
EMS vendor as good. Operations data for the private vendor was not
available so it was not possible to evaluate the quality of service being
provided. It was also not possible to determine whether it would be likely
that the City could provide basic and advanced life support service at
least at a breakeven point, given the unavailability of EMS run
information.
Experience has shown it is not advisable to assume municipally operated

EMS will break even. Since the City does contribute to the cost of EMS
service it would be prudent to secure EMS operations information to
determine, based on experience, whether it is possible to implement a
financially sound municipally owned and operated EMS. It would be
prudent because it is not uncommon for private EMS vendors to
experience fiscal stress leading to city subsidies or a reduction in the
quality of service in order to control costs. Opening a dialogue with the
private vendor which drills down into EMS operations experience could
develop a pathway to partnerships that would provide more secure and
economical high quality EMS service to the citizens of the City.
Recommendation 172: Initiate discussions with the

EMS vendor to determine if there are opportunities for
greater economies through partnership.
The Bureau is a participant in the Countywide HazMat operating plan.

The Bureau’s HazMat unit responds to HazMat incidents in the City and
County, when called. In exchange for entering into the partnership plan,
The City receives reimbursement for responding to HazMat incidents
through the County’s Joint Response Cost Recovery Program (JRCRP).
Since the Bureau would respond to calls in the City regardless, by

providing response within the County when needed, the City is receiving
additional revenue. During 2006, Lancaster was reimbursed nearly
$47,000 from the JRCRP. It is not possible to determine if the
reimbursement amounts to full cost recovery because the City does not
have a detailed cost accounting system which tracks the cost of HazMat
services.
Recommendation 173: Determine the cost of providing

HazMat services under the auspices of the countywide
plan and perform a cost benefit analysis of the service.
Section 142-19 of the Fire Prevention Code authorizes the Fire Chief to
levy a hazardous condition incident charge to any individual or entity
deemed responsible for a hazardous condition, the term used to describe
response to a fire.. In most cases, when charges are levied, the

insurance company providing the policy is billed but the City has had little
success in collecting.
In 2006, over $110,000 was invoiced and less than $10,000 was
collected. In most cases, the entities being billed ignore the invoice. Two
actions seem appropriate regarding enforcement of this provision. First,
the Bureau should develop written guidelines describing the type of
incidents for which invoices will be issued to the insurance company.
Second, the City should negotiate an agreement with a collection agency
for collecting on unpaid invoices.
Recommendation 174: Develop written guidelines for

the enforcement of the hazardous condition incident
charge.
Recommendation 175: Negotiate an agreement with

an agent for collection of unpaid hazardous condition
charges.
Recommendation 176: Transfer billing responsibilities

from the Fire Department to the Treasury Department.
The City should coordinate the collection of fines and taxes
through the central treasury function wherever possible.
In 2006 there were over 800 responses classified as false alarms. False
alarms are the highest single category of response and represent almost
33% of incidents responded to. It is not known how many of the false
alarms were malicious and how many accidental. In the opinion of the
Bureau personnel interviewed, the overwhelming majority of calls are
accidentally triggered by an alarm.
The City provides a central station alarm service whereby the Bureau will
respond to a fire alarm. The service requires an Underwriters Laboratory
(UL™) certified alarm system to be installed and a $300 annual permit is
needed. The City has adopted a fire code provision which allows three
false alarms per site in a 12-month period and then levies a progressive
charge for false alarms in excess of three.
Allowing three false alarms for $300 is not good policy. The $300 annual
charge should be considered an availability fee and each false alarm
should be subject to an appropriate charge. The objective of the policy
should be to reduce the number of false alarms; therefore, the fine
system should be punitive enough to accomplish the goal. Each UL™
alarm which generates a false alarm requires a technician to determine
the cause of the alarm and correct it before the alarm system is returned
to service. It means it is possible to accurately determine and fix
responsibility for the false alarms and bill the appropriate party.
Recommendation 177: Modify the current code

provision allowing three false alarms to charge for
each and every false alarm.

City of Lancaster
The Fire Prevention Division reviews plans and inspects installations for
new construction and rehabilitation of existing structures for compliance
with the fire code. The plans review fee is $50. The Division also issues
permits for a variety of purposes at a variety of fees. The fee schedule for
all the activities should be reviewed and updated to assure that they
achieve full cost recovery.
Recommendation 178: Review the fee structure for

plans reviews, permits and inspections under the
jurisdiction of the Fire Prevention Division to assure
they are structured for full cost recovery.
One of the considerations which should be incorporated into the analysis

of the fee structure has to do with reviewing plans a second time and
doing re-inspections on rejected installations. The best practice in
development review is to have a fee structure which supports the concept
of, “getting it right the first time”. It is not uncommon for owner’s agents
and vendors to use a practice of submitting low quality plans or making a
slipshod installation with the idea that Fire Prevention Division staff will
provide the appropriate quality control.
The practice has a dramatic impact on the Division’s workload. The

impact resonates throughout the system and has a negative effect on
other, more conscientious practitioners by increasing the cycle time for
their plans reviews and inspections. To reinforce the culture of getting it
right the first time, state-of-the-art development reviews are implementing
fee structures which charge more for second plans reviews and re-
inspections than for initial reviews and inspections.
Recommendation 179: Use a progressive fee structure

so that second plans reviews and re-inspections for
failed reviews and inspections are charged more than
initial submissions and inspections.
The emphasis on economic development has led to an increase in the

number of plans being submitted for review by fire prevention staff. Since
2002 the number of plan reviews has increased by 67%. Although fire
prevention staff do not track cycle times for plans reviews anecdotal
evidence indicates that it is taking a longer time from submission to plan
review. It is important to maintain prompt cycle times for plans reviews in
order to encourage economic development. For developers, it is literally
true that time is money and nearly all would be willing to pay additional
fees to assure speedy, consistent reviews. If the City implements a policy
of full-cost recovery, adding plans review staff would not cause an
additional burden on the general fund but would help to maintain speedy
plans review cycle times by fire prevention staff.
Recommendation 180: Add an Assistant Fire Marshal

position to maintain speedy plans review cycle time.
Assuming implementation of a full-cost recovery policy for

fee based services, no additional general fund impact

would be experienced.
Fire department personnel engage in a significant number of hours of in-

service training, some of which is for maintaining certifications, such as
emergency medical service and hazardous materials. Documenting
training activity is non-existent. And as the need for new training
requirements grows, identifying, developing, coordinating and evaluating
training programs becomes increasingly complex and time consuming.
Training development and administration for a group of over 75 personnel
demands more focus if training resources are to be maximized.
Currently, managing and administering training for Bureau of Fire
personnel is reactive at best and non-existent at worst.
The Deputy Chief in charge of the Operations Division also acts as

quartermaster, assuring adequate equipment, ordering supplies,
uniforms, turnout gear and maintaining inventory records. The Deputy
Chief estimates that he spends about eight hours a week on this duty,
which is vital to effective operations and safety of department staff. If a
training director is added to the personnel complement, the quartermaster
duties should be transferred from the Deputy Chief to this new position
Recommendation 181: Add a Fire Lieutenant position

to act as training director/quartermaster for the Bureau
of Fire. This position should report to the Fire Chief.
At the time of our analysis, there were two personnel on extended leave
due to health/injury reasons and one person on light-duty assignment. It
is approximately 3% of the total number of personnel. The level of
personnel unavailability is not alarming.

City of Lancaster
Performance Measurement
A culture of continuous improvement requires a system for measuring

Bureau performance be implemented. Performance measurement
requires the Bureau to define its major business processes and services.
For each such process or service, descriptions of the output, efficiency
and effectiveness must be articulated. The descriptions become the
performance measures for the Bureau. In conjunction with performance
measures, performance standards are established to define what success
looks like and to provide an objective basis for reporting on performance.
Reporting on performance must be regular, transparent and widely
available. The Bureau should implement a system of performance
measurement. Specific performance measures for the Bureau of Fire
have been included as Attachment N.

measurement system in the Bureau of Fire.

CONCLUSION
The purpose of the review was to assess the financial condition and
operating environment of the City of Lancaster. Within that context,
Management Partners was charged with identifying opportunities for
improvement, either in the way services are provided or in the efficiency
of the government. We also were asked to identify opportunities to reduce
expenses where practical.
The report meets all the objectives and will serve as a blueprint for
modernizing, updating and “really fixing” the City’s “house.” While the
City’s top priority is, and should be, to strengthen its financial future, it
must be balanced with the urgent need to invest in internal support
services, facilities and equipment that support line operations.
The challenge for the organization and the policy-makers is to make the
decision to implement the changes necessary to build a stronger future
and realize the vision articulated in the Lancaster Strategic Plan – to,
“provide the ideal urban experience for its residents and visitors.”

ATTACHMENT A – LIST OF RECOMMENDATIONS
Recommendation 1: Meet with Lancaster County officials to develop a policy for appraising real
property at true market value.
Recommendation 2: Develop a formal policy for payments in lieu of taxes with large tax-exempt
real property owners.
Recommendation 3: Establish a full cost recovery policy for fees and charges for police, public
safety, public works, regulatory and housing services.
Recommendation 4: Develop full cost recovery formulas for fees and charges for police, public
safety, public works, regulatory and housing services.
Recommendation 5: Adjust fees and charges for service rates annually during budget
preparation.
Recommendation 6: Analyze utility ownership options to determine how to maximize return on

investment.
Recommendation 7: Develop a new basis for sharing the increasing cost of health insurance
with employees.
Recommendation 8: Initiate discussions with other municipalities and state associations to

create risk-sharing pools to control health insurance cost increases.
Recommendation 9: Define internal benchmarks and implement the use of performance

measures in the Administrative Services Department as a way of managing and tracking its
work.
Recommendation 10: Establish a procedure that requires all units who receive payments or fees
to deposit receipts daily.
Recommendation 11: Replace the manual time card system for employees with one of the
several electronic timekeeping systems on the market.
Recommendation 12: Provide departmental training in how to access the general ledger.
Recommendation 13: Conduct a study of various account types to determine the causes of
delinquency and find ways to reduce the number of delinquent accounts.
Recommendation 14: Evaluate the fiscal and customer service benefits of out-sourcing all
collection services to a regional agency.
Recommendation 15: Provide a restricted use computer or kiosk in the waiting area of the Tax
Office for citizens to look up information about their accounts.

City of Lancaster
Recommendation 16: Provide all Parking Enforcement Aides with functioning hand-held
computers to minimize the number of tickets that have to be manually entered.
Recommendation 17: Provide customer service training specifically designed for Tax Office staff
to help them cope with unhappy or hostile customers, and situations in ways that reflect
positively upon the City.
Recommendation 18: Implement an online bidding process for purchasing goods and services.
Recommendation 19: Configure the New World software to use Lotus Notes to notify staff when
a purchase has been entered and is awaiting their approval.
Recommendation 20: Hire two HR Analysts to assist with initial implementation of HR Bureau
recommendations and to resume the core duties of a fully functioning Human Resources
operation.
Recommendation 21: Develop an orientation program that includes information about the City’s
goals and objectives, its customer service orientation, ethical and behavioral standards, and a
general introduction to the City and its service.
Recommendation 22: Develop a standardized new employee orientation trainer’s manual.
Recommendation 23: Develop a professional development program.
Recommendation 24: Establish a training policy and program by job type.
Recommendation 25: Establish a supervisor/manager training program.
Recommendation 26: Provide customer service training for all employees.
Recommendation 27: Establish policies to coordinate with department heads on department-

specific training programs.
Recommendation 28: Establish a protocol for identifying the number of training hours, by type,
each employee should receive each year, and work with departments to regularly track and
monitor whether training goals are being met.
Recommendation 29: Establish a performance evaluation policy and process for all employees.
Recommendation 30: Amend City policy to mandate a minimum six-month probationary period
for all employees.
Recommendation 31: Establish a six-month probationary period for all employees that “post”
into positions.
Recommendation 32: Review job descriptions and minimum qualifications for each job, and
revise to reflect actual working requirements.
Recommendation 33: Require testing for all jobs, including ones posted internally.

Recommendation 34: Negotiate the removal of the written practice of requiring jobs to be posted
internally from labor agreements.
Recommendation 35: Formalize a City-wide sick-leave abuse policy and ensure that the policy
is enforced in each department.
Recommendation 36: Develop an internal policy establishing benchmarks that light-duty

employees must meet, with the goal of returning to full duties, and establish a maximum number
of days that employees may be on light-duty before separation.
Recommendation 37: Establish a review process for all workers’ compensation claims.
Recommendation 38: Conduct a City-wide wage study to identify how the City compares with
similar jurisdictions.
Recommendation 39: Train HR staff in the complete capability of the New World software
system.
Recommendation 40: Define and formalize leadership of the IT Department.
Recommendation 41: Develop a comprehensive five-year technology strategic plan for the City
with input from all stakeholders.
Recommendation 42: Phase out the IBM AS400 and move to a web-based or other networked
system.
Recommendation 43: Prepare a request for proposal to provide all enterprise application
operations and support services for the City.
Recommendation 44: Centralize the budget for all PC purchases (and leases) within IT.
Recommendation 45: Prepare an RFP, or identify a state-wide purchasing opportunity, to obtain

a seat management contract for PCs and laptops based on a three-year replacement cycle.
Recommendation 46: Develop a formal disaster recovery plan with secure off-site storage.
Recommendation 47: Contract with a vendor to provide secure, climate-controlled storage of

backup tapes, with controls over which staff may authorize pickup and deliveries of tapes.
Recommendation 48: Install fiber lines in all City locations where cost effective.
Recommendation 49: Buy and use imaging software to streamline the set-up all new
computers.
Recommendation 50: Install networked printers on each floor of City Hall.

Recommendation 51: Improve the IT work space.
Recommendation 52: Develop a work order system, or systems, enterprise wide for all help
desk requests, requests for new programming and other types of service requests.
Recommendation 53: Standardize e-mail and scheduling software platforms within City Hall.

City of Lancaster
Recommendation 54: Require new hires in administrative jobs using computers to have a basic
knowledge of Microsoft Office and other desktop software.
Recommendation 55: Centralize computer training within IT.
Recommendation 56: Establish a training benchmark for IT staff and ensure professional
development.
Recommendation 57: Replace the aging phone system and, after building a more robust
network, consider voice over internet provider technology (VOIP).
Recommendation 58: Hire a full-time GIS manager to fully leverage GIS information capabilities.
Recommendation 59: Upgrade the IBM Token Ring network infrastructure within City Hall in
conjunction with any planned construction renovations of the building with category 6 cabling.
Recommendation 60: Develop a resident service request form on the City’s website for citizens
to send in general requests and complaints.
Recommendation 61: Evaluate the benefits of hosting the website somewhere other than
Lancaster County where greater flexibility for page layout and content can be achieved.
Recommendation 62: Form a committee of representatives from each department to regularly

review the content on the City’s website.
Recommendation 63: Use Microsoft Windows Active Directory for the City’s local area network
and to “lock-down” PCs and create policies to prevent users from installing unauthorized
software.
Recommendation 64: Set up “remote control” software on all desktop PCs to enable IT staff to
take control (with the user’s permission) and resolve problems with user PCs remotely.
Recommendation 65: Consolidate DPW facilities under one “public works shop.”
Recommendation 66: Relocate the Director of Public Works to the proposed consolidated
public works shop.
Recommendation 67: Review job classifications and minimum qualifications for all skilled
positions in the Department of Public Works and revise them as appropriate to include specific
requirements concerning experience and/or training.
Recommendation 68: Develop labor-management committees to identify and resolve

management and employee issues outside the normal contracting process.
Recommendation 69: Implement a performance measurement system in the Department of

Public Works.
Recommendation 70: Institute a stormwater utility to fund stormwater management and capital
expenditures.

Recommendation 71: Purchase and implement a department-wide work order system to

electronically schedule and manage preventive maintenance and emergency work order
generation.
Recommendation 72: Complete an immediate inventory of parts in the Motor Vehicles Section,
Bureau of Water and Bureau of Wastewater and institute a paper-based tracking system.
Recommendation 73: Purchase and install a department-wide electronic inventory tracking

system.
Recommendation 74: Develop GIS layers that provide infrastructure information relevant to the
Department of Public Works.
Recommendation 75: Research and acquire an integrated asset management system for the
Department of Public Works.
Recommendation 76: Replace the dial-up network system with higher speed service and plan
for development of fiber where appropriate, and require the use of City e-mail service for official
communications.
Recommendation 77: Revise the curb and gutter permit and street opening permit process to
ensure that each permit application is reviewed by an engineering technician before the
secretary issues each permit.
Recommendation 78: Post permit applications on the City of Lancaster website and update the
Bureau of Engineering webpage to include additional information regarding curb and gutter and
street opening permit processes.
Recommendation 79: Hire a licensed professional civil engineer for the position of Deputy
Director of Public Works/City Engineer.
Recommendation 80: Implement an AutoCAD system for use in the Bureau of Engineering and
mandate its use.
Recommendation 81: Work with EDNR to define the specifications of comprehensive

development review software that integrates all development review personnel under one
electronic plan review system.
Recommendation 82: Eliminate the position of manual drafter currently reporting to the Bureau
of Engineering’s civil engineer and convert it to a GIS Technician position.
Recommendation 83: Consolidate all engineering functions under the Deputy Director of Public
Works/City Engineer.
Recommendation 84: Investigate the use of a contract engineering services firm to provide all
engineering services for the Bureau for Engineering.
Recommendation 85: Adopt a pavement condition rating system and complete a pavement
condition inventory to use as a basis for scheduling regular maintenance and street
reconstruction.

City of Lancaster
Recommendation 86: Develop and implement a comprehensive streets maintenance program.
Recommendation 87: Evaluate Streets Section services and define resource requirements.
Recommendation 88: Redefine the Motor Vehicle Section as an internal service fund that is
fully funded through fees billed to City of Lancaster departments.
Recommendation 89: Centralize fleet ownership under the Motor Vehicle Section.
Recommendation 90: Implement an inventory tracking system in the Motor Vehicles Section.
Recommendation 91: Purchase pre-made signs for generic regulatory control.
Recommendation 92: Purchase and implement a sign management module for the asset
management system selected for use by the department.
Recommendation 93: Develop a sign replacement program using asset management software
to identify signs past their useful lives.
Recommendation 94: Negotiate with surrounding communities for the common provision of
signal maintenance services.
Recommendation 95: Fill the vacant Operations Manager position.
Recommendation 96: Train additional Parks staff in the use of equipment currently dedicated to
Long’s Park and establish procedures for sharing the equipment.
Recommendation 97: Investigate private operation of the petting zoo at Long’s Park.
Recommendation 98: Evaluate the Parks Section fleet for age, condition and suitability for use.
Recommendation 99: Negotiate with Franklin & Marshall College to resume work on the tree
inventory system.
Recommendation 100: Review the practice of tree climbing and consider using a contract tree
service when tree trimming requires more than the use of a bucket truck.
Recommendation 101: Contract for an initial condition assessment of existing City buildings
and facilities.
Recommendation 102: Assign light-duty employees or other resources to complete the facilities
management data base.
Recommendation 103: Update Building Maintenance position descriptions to match current and
needed job functions.
Recommendation 104: Budget appropriate contributions to the General Fund for collection,
disposal and recycling services received and operational overhead in all future budgets.
Recommendation 105: Promote recycling programs through increased advertising, direct

communication, media releases and improved web-site development.

Recommendation 106: Monitor the collection of waste from non-customers.
Recommendation 107: Develop a mid- and long-range waste and recycling services plan.
Recommendation 108: Follow the staffing and management recommendations for the new
water treatment facilities provided by the design engineer.
Recommendation 109: Evaluate and acquire operational software and equipment requirements
for the water utility.
Recommendation 110: Adopt a program to replace manual read and touch pad meters with
radio read meters.
Recommendation 111: Develop and implement a plan for replacing all manual read meters
within the next budget cycle.
Recommendation 112: Develop and implement a flow testing program to evaluate the delivery
capabilities of the City of Lancaster water distribution system.
Recommendation 113: Use the Water CAD model to identify pressure and low flow problems.
Recommendation 114: Define areas of red water occurrence and develop a capital spending
plan to address them.
Recommendation 115: Reinstitute a valve exercise program with a dedicated budget for valve
replacement and associated system repairs.
Recommendation 116: Form a joint union/management committee with participation from the
Personnel Department to review and potentially modify T&D’s call-in practices to encourage
broader participation.
Recommendation 117: Develop a compensation plan to encourage employees to participate in

sharing the responsibility for being on call.
Recommendation 118: Institute a payment in lieu of taxes charge to the water utility.
Recommendation 119: Contract for the development of a facilities plan for the modernization of
the wastewater treatment plant.
Recommendation 120: Encourage management and staff that will be assigned to the lime
stabilization facility to become familiar with the process in advance of construction completion.
Recommendation 121: Reduce the mandatory time to pass the operator’s license exam from
three years to 18 months.
Recommendation 122: Establish baseline skill requirements for wastewater treatment facility
maintenance personnel.
Recommendation 123: Develop a formal training program for each position at the Bureau of
Wastewater.

City of Lancaster
Recommendation 124: Evaluate and acquire operational software and necessary equipment for
the wastewater utility.
Recommendation 125: Institute a payment in lieu of taxes charge to the wastewater utility.
Recommendation 126: Initiate negotiations with union representation at the wastewater plant
to resolve personnel issues.
Recommendation 127: Assign implementation priorities to the economic development and

neighborhood revitalization recommendations from the Mayor’s Economic Development
Transition Subcommittee, and provide timelines for accomplishing them.
Recommendation 128: Develop work plans at the EDNR Bureau and Division level that are tied
to the Lancaster Strategic Plan success indicators and strategic directions.
Recommendation 129: Develop a comprehensive system of performance measures for each

program of the EDNR Department.
Recommendation 130: Publish a periodic report to highlight Department-wide program

outcomes and accomplishments in a way that clearly links projects and activities with
Department priorities and the goals.
Recommendation 131: Improve and continually update the Economic Development and
Neighborhood Revitalization website so that it is a useful resource for residents and commercial
entities to get information about application and review processes, fees, planning, development
and neighborhood revitalization information.
Recommendation 132: Review current planning and land development fees and adjust as
appropriate to ensure full cost recovery.
Recommendation 133: Track and use planning data to assess development patterns and
trends.
Recommendation 134: Develop performance measures for each program of the Department.
Recommendation 135: Develop a system for logging, storing and retrieving paper plans.
Recommendation 136: Develop a timeline for implementing a software system that supports the
plans review, permitting and inspections functions of the Bureau.
Recommendation 137: Evaluate the options for hiring a qualified firm to conduct
inspections during peak periods.
Recommendation 138: Conduct monthly reviews of workload data to more effectively manage
housing inspections and code enforcement activities.
Recommendation 139: Eliminate existing process redundancies when housing inspection and
code enforcements systems are fully implemented.

Recommendation 140: Conduct a time study to determine total clerical position time savings
after full implementation of the Property Maintenance System.
Recommendation 141: Identify and implement clerical duty reassignments or absorb staff
efficiencies.
Recommendation 142: Assess the skill level of each inspector to fully utilize the features of the
housing inspection and code enforcement system.
Recommendation 143: Develop a plan and timeline for enhancing the computer key boarding
and data entry skills of housing inspectors.
Recommendation 144: Deploy inspectors individually within each inspection quadrant.
Recommendation 145: Provide City vehicles for inspectors.
Recommendation 146: Establish a property maintenance re-inspection fee to achieve full cost
recovery.
Recommendation 147: Hire contract inspectors to expedite completion of the initial round of
systematic interior and exterior rental housing inspections.
Recommendation 148: Develop a comprehensive inventory of rental units within the City.
Recommendation 149: Implement a coordinated redevelopment approach for the northeast and
southwest neighborhoods that dedicates Department resources in a comprehensive manner.
Recommendation 150: Pilot the use of property tax credits for multi-family to single-family
conversions in selected locations in the northeast and southwest neighborhoods.
Recommendation 151: Identify data and information required to monitor owner to rental
conversions, and initiate data collection a tracking system.
Recommendation 152: Allocate CDBG and HOME funds in a targeted manner.
Recommendation 153: Develop a strategy for acquiring and installing crime analysis software.
Recommendation 154: Authorize a crime analyst position to generate accurate and timely
intelligence to enhance crime control.
Recommendation 155: Eliminate the Patrol Services Section and fully integrate assigned
personnel within the Patrol Division.
Recommendation 156: Eliminate the Patrol Services Division lieutenant, and the Community
Policing sergeant positions following complete integration of section personnel in the Patrol
function.
Recommendation 157: Disband the Mounted Patrol, Special Enforcement and Community
Policing units as permanent organizational features of the Patrol Division and assign the
personnel to Patrol activities.

City of Lancaster
Recommendation 158: Maintain the School Resource Officer and Traffic Support units as
distinct organizational features of the Patrol Division.
Recommendation 159: Establish procedures and support methods of incorporating Community

Policing principles into the entire Patrol Division in conjunction with CompStat.
Recommendation 160: Develop a plan for training all Patrol Division personnel in Community
Policing and CompStat methodologies.
Recommendation 161: Reconfigure the patrol schedule and organization from 12-hour to eight-
hour shifts.
Recommendation 162: Staff the Patrol Division with 12 sergeants.
Recommendation 163: Implement telephone reporting for the lowest priority 911 calls.
Recommendation 164: Implement an eight-hour shift for detention personnel.
Recommendation 165: Replace the police sergeant serving as quartermaster with a trained
civilian.
Recommendation 166: Develop case solvability indices for criminal investigations and assign
cases based on solvability.
Recommendation 167: Acquire case management software for criminal investigations.
Recommendation 168: Initiate efforts to create regional approaches to crime tracking and
analysis.
Recommendation 169: Implement a performance measurement system in the Bureau of Police.
Recommendation 170: Maintain the current fire suppression strength of five on-duty
companies.
Recommendation 171: Develop a plan to transition the fire suppression work schedule from the
current 10 hour/14 hour schedule to a 24 hour on 48 hour off schedule.
Recommendation 172: Initiate discussions with the EMS vendor to determine if there are
opportunities for greater economies through partnership.
Recommendation 173: Determine the cost of providing HazMat services under the
auspices of the countywide plan and perform a cost benefit analysis of the service.
Recommendation 174: Develop written guidelines for the enforcement of the hazardous
condition incident charge.
Recommendation 175: Negotiate an agreement with an agent for collection of unpaid

hazardous condition charges.

Recommendation 176: Transfer billing responsibilities from the Fire Department to the Treasury
Department. The City should coordinate the collection of fines and taxes through the central
treasury function wherever possible.
Recommendation 177: Modify the current code provision allowing three false alarms to charge
for each and every false alarm.
Recommendation 178: Review the fee structure for plans reviews, permits and inspections
under the jurisdiction of the Fire Prevention Division to assure they are structured for full cost
recovery.
Recommendation 179: Use a progressive fee structure so that second plans reviews and re-
inspections for failed reviews and inspections are charged more than initial submissions and
inspections.
Recommendation 180: Add an Assistant Fire Marshal position to maintain speedy plans review
cycle time.
Recommendation 181: Add a Fire Lieutenant position to act as training director/quartermaster

for the Bureau of Fire.
Recommendation 182: Implement a performance measurement system in the Bureau of Fire.

City of Lancaster
ATTACHMENT B – BENCHMARK COMPARISONS
As part of the operational assessment of the City of Lancaster, Management Partners attempted
to compare certain workload, staffing and budget data for City operations with other
Pennsylvania cities with which Lancaster has historically compared itself. To do so,
Management Partners conducted an on-line survey from June 21-27, 2007. Eight jurisdictions
were invited to respond to the multi-departmental survey. Individual surveys were created for
the follow services: administration, police, fire, public works and housing/code enforcement.
The jurisdictions that were invited to participate in the survey were:
• Altoona, Pennsylvania
• Bensalem, Pennsylvania
• Easton, Pennsylvania
• Harrisburg, Pennsylvania
• Reading, Pennsylvania
• Scranton, Pennsylvania
• Wilkes-Barre, Pennsylvania
• York, Pennsylvania
Lancaster Mayor Rick Gray personally requested the participation of the other communities by
emailing the survey to the mayors and business administrators (as applicable) of these
jurisdictions. Two reminder notices were sent to the jurisdictions and the deadline was
extended to encourage broader participation. However, only Altoona, Bensalem, Easton,
Reading, and York provided responses to at least one of the surveys. Data from the City of
Lancaster is included to make comparisons between the jurisdictions.
The responses to our survey are reported by topic area below. The data are sorted in each
table by the characteristic being compared. When a logical order cannot be determined based
on the characteristic, the responses are in alphabetical order.
General Jurisdiction Characteristics

Population, Budget, and Employment Data
Table 1 shows the relative size of the jurisdictions responding to the survey. Most of the
comparison cities have populations very close to that of Lancaster, with Reading and Easton
being the high and low outliers, respectively.

TABLE 1: POPULATION
Jurisdiction Population
Reading 81,207
Bensalem 59,000
Lancaster 56,000
Altoona 47,000
York 45,000
Easton 26,230
Table 2 shows the number of full-time equivalent (FTE) employees working for each
municipality. Lancaster does not have the highest absolute total, but on a per resident basis, it
has more employees than the other jurisdictions. This macro-comparison is not especially
useful because of the variety of services provided by the various municipalities.
TABLE 2: EMPLOYMENT
FTEs per 1,000

FTEs
residents
Lancaster 624 11.1
Reading 731 9.0
Easton 211 8.0
York 345 7.7
Altoona 275 5.9
Bensalem 270 4.6
Table 3 shows the budgets of the municipalities, ordered by size of the total 2007 annual
budget. Lancaster has the fourth highest annual budget, yet has the second highest general
fund budget. In fact, the general fund makes up 61% of the total annual budget. Since
Lancaster has more employees than most of the other jurisdictions, this fact is not surprising.
TABLE 3: BUDGET
General Fund as
2007 Annual 2007 General Percent of
Budget Fund Budget Annual Budget
Reading $108,816,932 $ 64,795,125 56%
Bensalem $ 90,000,000 $ 29,000,000 32%
York $ 85,281,529 $ 33,132,768 39%
Lancaster $ 71,283,532 $ 43,246,368 61%
Easton $ 49,850,000 $ 25,900,000 52%
Altoona $ 22,734,082 $ 22,734,082 100%

City of Lancaster
Administrative Services
Human Resources / Personnel Department
Table 4 illustrates the various services provided by the human resources (HR) departments
within the jurisdictions of the survey respondents. As the table shows, Lancaster provides a
similar array of services as the HR departments of the responding cities.
TABLE 4: SERVICES PROVIDED BY HUMAN RESOURCES/PERSONNEL DEPARTMENTS
Services Altoona Easton Lancaster Reading York

Classification and compensation X X X X X
Recruitment and retention X X X X X
Labor relations X X X X X
Contract negotiations X X X X X
Benefits administration X X X X X
Retirement administration X X X X X
Workers Compensation administration X X X X
Employee assistance program X X X X X
Employee recognition program X X
New employee orientation X X X X X
Employee training and development X X
Risk management and safety X X
Table 5 shows a comparison of FTEs in each human resources or personnel department.

Calculating the number of human resources employees per total employees, Lancaster’s HR
staff has almost half the staff per 100 FTEs of the other comparable jurisdictions, yet still
provides a similar array of services.
TABLE 5: HUMAN RESOURCES EMPLOYEES
Human Resources Full-

Time Equivalent Full-time Equivalent
Employees (FTEs) Employees (FTEs) HR FTEs per 100 total FTEs
Easton 2 211 .9
Altoona 2.5 275 .9
York 3 345 .9
Reading 5 731 .8
Lancaster 3 624 .5
The next table provides budget information for each of the responding human resources
departments. Lancaster has the smallest HR budget of all respondents.

TABLE 6: HUMAN RESOURCE DEPARTMENT BUDGETS
2006 Human Resources

Department Budget
Easton $ 845,605
Reading $ 312,750
York $ 284,101
Lancaster $ 167,726
Information Technology / Management Information Systems (IT/MIS)
Table 7 illustrates the various services provided by the IT/MIS department in each of the
responding jurisdictions. The IT/MIS departments of Reading and York both provide a wider
array of services than those of Lancaster’s IT department.
TABLE 7: SERVICES PROVIDED BY CENTRAL IT/MIS STAFF
Services Altoona Easton Lancaster Reading York

Website development X X X X X
Website administration X X X X
PC support X X X X X
Helpdesk X X
Programming X X X X X
GIS X X
Network Support X
The following table specifies the number of FTEs in each IT/MIS department. There is clearly a
relationship between the number of employees in the IT department and the aforementioned
services the department provides, as Reading has the most employees and offers the most
services.
TABLE 8: IT/MIS EMPLOYEES
IT/MIS Full-Time Equivalent Employees (FTEs)

Reading 9
Lancaster 5
York 4
Altoona 1
Easton 1
Table 9 provides budget information for each IT/MIS department. Again, with more employees
offering more services, it is not surprising to note that Reading’s IT/MIS budget is much higher
than the other jurisdictions.

City of Lancaster
TABLE 9: IT/MIS BUDGET
2006 IT/MIS Budget

Reading $ 1,200,000
Lancaster $ 566,413
Easton $ 156,658
Altoona $ 99,675
The following table shows the number of personal computers (PCs) and laptop computers
maintained by each IT department. Lancaster has far fewer PCs per FTE compared with other
jurisdictions.
TABLE 10: NUMBER OF PCS AND LAPTOPS PER FTE
Total Number of PCs and PCs and Laptops

Laptops Maintained per FTE
Easton 102 .5
York 290 .8
Reading 600 .8
Lancaster 170 .3
Purchasing
Table 11 details the amount of purchasing activity performed by each of the jurisdictions
responding to the survey. The City of York does not have centralized purchasing and each
department makes their own purchases.
TABLE 11: 2006 PURCHASING ACTIVITY
Number of Number of
Number of Number of Contracts Bids
Requisitions RFPs Issued Awarded in Advertised in
Jurisdiction FTEs Processed in 2006 in 2006 2006 2006
York 1 9,064 15 15 15
Easton 1 3,745 11 44 11
Reading 1 1,128 8 47 29
Lancaster 1.1 200 5 26 30

Fire
Service Area Characteristics
The City of Altoona, City of York, and City of Easton provided information about their fire
departments. Table 12 shows the geographic size of each fire department’s service areas as
well as the population and population density of each department’s service area.
TABLE 12: FIRE SERVICE AREA DATA
Number
of Service
Size of Population Density Active Area Number
Service Population (people served per Fire Per of
Jurisdiction Area Served square mile) Stations Station FTEs
Altoona 9.8 49,523 5,053 4 2.45 mi. 69
Easton 5.0 27,000 5,400 3 2.33 mi. 40
Lancaster 7.0 55,000 7,857 3 1.67 mi. 89
York 5.5 40,862 7,429 4 1.38 mi. 70
Operations and Staffing
Only Easton works a different shift schedule than the other jurisdictions. Easton’s Fire
Department operates on a 24-hour on/48-hour off schedule, while Lancaster, York, and Altoona
operate on a shift schedule made up of two 10-hour day shifts/two 14-hour night shifts/four days
off. The following table shows the minimum and maximum staffing levels for each shift in each
department.
TABLE 13: MINIMUM AND MAXIMUM FIRE SUPPRESSION STAFFING PER SHIFT
Minimum Staffing per Shift Maximum Staffing per Shift

Lancaster 13 20
Altoona 13 16
York 11 14
Easton 10 13
Table 13 provides the number of apparatus operated by each jurisdiction.
TABLE 14: FIRE APPARATUS
Front-line Apparatus Reserve Apparatus

Ladders Pumpers Quints Ladders Pumpers Quints
Altoona 1 3 0 1 1 0
Easton 1 3 0 0 3 0
Lancaster 1 3 1 0 3 0
York 1 4 0 1 3 0

City of Lancaster
Table 15 details the number of fire incidents, false alarms, and the total dollar value of loss from
fire. While Easton’s fire department responded to more fire incidents, Lancaster’s fire
department responded to many more false alarms than the other jurisdictions. Lancaster also
experienced more loss from fire than the other jurisdictions, although data for Easton was not
available.
TABLE 15: FIRE INCIDENTS, ALARMS AND LOSS VALUE
Fire Incidents in False Alarms in Total Dollar

2006 2006 Loss from Fire
Altoona 239 324 $2,107,125
Easton 1,769 484 Data not available
Lancaster 1,756 817 $3,518,895
York 387 646 $ 802,660
Table 16 illustrates the fire code responsibilities of each fire department. Only in Lancaster and
York is the Fire Department responsible for both fire code plan reviews and fire code
inspections. Easton, on the other hand, relies on its Planning/Building Inspection Department
for these responsibilities, while Altoona uses its Fire Department for inspections and its
Planning/Building Inspection Department for plan reviews.
TABLE 16: FIRE CODE RESPONSIBILITIES
Fire Code Plan Fire Code

Reviews Inspections
Altoona X
Lancaster X X
York X X

Police
Service Area Characteristics
The City of Altoona and City of Easton responded to the Police Department survey. The
following table compares the population served by each of the three police departments.
Lancaster serves a much larger population than the other two.
TABLE 17: POPULATION
Population Served
Lancaster 72,000
Altoona 49,000
Easton 26,000
Operations and Staffing
Table 18 provides employment data by division within each police department. Since the
population being served is much greater in Lancaster, it is no surprise to find the number of
employees, both sworn and civilian, is much greater in Lancaster than the other respondents.
TABLE 18: EMPLOYMENT BY DIVISION
Criminal
Administration Patrol Investigations Records Other
Sworn Civilian Sworn Civilian Sworn Civilian Sworn Civilian Sworn Civilian
Altoona 2 1 58 0 10 0 4 5 0 2
Easton 5 1 43 0 9 0 1 5 0 0
Lancaster 7 18 139 12 29 2 0 3 0 8

City of Lancaster
Public Works
The only jurisdiction to respond to the public works survey was the City of Altoona. Table 19
compares the services offered by the public works departments in both cities.
TABLE 19: SERVICES PROVIDED
Services Altoona Lancaster

Engineering X X
Streets X X
Fleet/Motor Vehicle X X
Traffic X X
Solid Waste X
Park Maintenance X X
Water X
Wastewater X
Building Maintenance X X
The following tables compare the level of service between the Lancaster and Altoona public
works departments.
TABLE 20: EMPLOYEES AND BUDGET
2006
FTEs in the Engineering FTEs in the 2006 Streets FTEs in the Fleet / 2006 Fleet / Motor
Engineering Bureau Streets Bureau Vehicle Vehicle Bureau
Bureau Budget Bureau Budget Maintenance Bureau Budget
Altoona 11 $ 375,564 37 $ 1,365,552 6 $ 473,617
Lancaster 4 $ 186,004 24 $ 976,000 4 $ 177,923
TABLE 20(CONT): EMPLOYEES AND BUDGET
FTEs in the FTEs in the

2006 Traffic Park 2006 Park Building
FTEs in the Bureau Maintenance Maintenance Maintenance 2006 Building
Traffic Bureau Budget Bureau Budget Bureau Maintenance Budget
Altoona 5 $ 383,000 5 $ 50,000 3 $ 300,000
Lancaster 4 $ 803,081 22 $ 1,014,238 10 $ 1,434,714
Planning, Zoning, Housing and Economic Development

The City of York and the City of Easton provided feedback about their planning, zoning,
housing, and economic development operations. Table 21 compares the number of employees
responsible for planning/building inspections and housing/code enforcement in Lancaster and
Easton. The City of York did not provide data for this question.

TABLE 21: PLANNING/BUILDING INSPECTION AND HOUSING/CODE ENFORCEMENT EMPLOYEES
Planning/Building Housing/Code
Jurisdiction Inspection FTEs Enforcement FTEs
Lancaster 9 16
York 5
Easton 8 4
Technology is increasingly important in aiding productivity in housing and code enforcement

operations. Management Partners was specifically interested in learning whether other
jurisdictions provided Laptops or handheld units for field inspectors, City vehicles and Cell
phones. Table 23 shows what tools are provided to each jurisdiction’s housing and code
enforcement employees. As the table shows, Lancaster provides only cell phones while Easton
provides all three of the aforementioned tools.
TABLE 22: TOOLS / RESOURCES PROVIDED BY CITY
Jurisdiction Laptop Computers City Vehicle Cell Phone

Easton X X X
York X X
Lancaster X
Table 24 provides data on the number of systematic code inspections. Lancaster performs far
more inspections than either of the other two jurisdictions, but the number per employee is
much lower. The City of Lancaster noted, however, that the reliability of the data for Lancaster
is questionable because the City has not been consistent in how inspectors have defined an
“inspection.” Some inspections will include all addresses on a block when responding to a
complaint, noting that the address was “inspected.” Unfortunately this inconsistency makes this
comparison moot.
TABLE 23: NUMBER OF SYSTEMATIC CODE INSPECTIONS
Systematic Code Systematic Code Inspections

Inspections per Employee
Easton 1,279 320
York 1,000 200
Lancaster 2,195 137
The following table shows the number of complaint-related inspections. Only the City of
Lancaster includes grass and weed complaints in their data, which again causes the data to be
skewed and makes comparisons not useful.
TABLE 24: NUMBER OF COMPLAINT-RELATED INSPECTIONS
Complaint-Related Complaint-Related Inspections

Inspections per employee
Lancaster 13,280 830
York 1,325 265
Easton 1,051 263

City of Lancaster
ATTACHMENT C – ESTIMATED FINANCIAL IMPACT OF RECOMMENDATIONS

ATTACHMENT D – MAP OF MAJOR ECONOMIC DEVELOPMENT PROJECTS

ATTACHMENT E – SUGGESTED PERFORMANCE MEASURES ADMINISTRATIVE SERVICES
Program Area Effectiveness Measures Efficiency Measures Workload Measures

Accounting • Percent of customers rating staff • Number of invoices processed • Number of vendors paid on-time
responsiveness to questions good or per FTE
excellent in each of the following:
o Staff knowledge • Number of vendors paid
• Number of paychecks
o Staff courtesy processed per FTE
o Timeliness of service
o Quality of service • Number of paychecks processed
o Quality of information • Cost per payroll check Issued
o Quality of instructions • Number of invoices processed
• Cost per accounts payable
• Percent of transactions processed: check Issued
o Accounts Receivable at month’s • Amount of Funds monitored
end
o Accounts Payable processed in 5
• Debt per capita • Number of capital projects monitored
business days
• General fund expenditures per
• Percent of Accounts Payable
capita
transactions processed in 5 business
days
•
• Funds monitored per FTE
• Percent of invoices paid to terms by
department
• Number of capital projects
• monitored per FTE
• Average cycle time for vendor
payments, in days
•
• Percent of employees paid:
o On-Time
o Accurately
o
• Percent of users reporting that
department reports are:
o Easy to use
o Understandable


• Achieved compliance with
Government Finance Officers
Accounting
Association (GFOA) Certificate of
(cont) Excellence in Financial Reporting
• Percent of available funds invested
• Average annual rate of return on

investments
• Bond Rating
• Percent variance between budgeted

and actual, for each fund
• Revenue Expenditures
Human • Average number of days from the date • Total number of open • Total number of open recruitments
Resources of vacancy until new hire starts: recruitments conducted per FTE: conducted:
o Administrator o Administrator o Administrator
o Professional o Professional o Professional
o Operator o Operator o Operator
o Maintenance o Maintenance o Maintenance
o Laborer o Laborer o Laborer
o Police o Police o Police
o Fire o Fire o Fire
o Technicians o Technicians o Technicians
• Average number of days from the date • Total number of jobs posted • Total number of jobs posted internally:
of authorization to hire until the date internally per FTE: o Operator
positions are advertised (external) or o Operator o Maintenance
posted (internal): o Maintenance o Laborer
o Administrator o Laborer o Safety Service
o Professional o Safety Service o Technicians
o Operator o Technicians
o Maintenance


o Laborer • Number of applications • Number of applications processed for
o Safety Service processed for open recruitments open recruitments
o Technicians per FTE: o Administrator
o Administrator o Professional
• Average number of applicants per o Professional o Operator
position filled: o Operator o Maintenance
o Administrator o Maintenance o Laborer
o Professional o Laborer o Safety Service
o Operator o Safety Service o Technicians
o Maintenance o Technicians
o Laborer • Number of personnel action forms
o Safety Service • Number of personnel action processed
o Technicians forms processed per FTE
• Number of employees hired:
• Ratio of Human Resource FTEs to total • Number of employees hired per o Administrator
FTEs FTE o Professional
o Administrator o Operator
• Percent of personnel action forms o Professional o Maintenance
processed correctly the first time o Operator o Laborer
o Maintenance o Safety Service
• Percent change in annual benefit cost : o Laborer o Technicians
o Health care o Safety Service
o Retirement o Technicians • A Annual benefit program expense:
o Term life o Health Care
o EAP • Annual benefit program expense o Retirement
o Total per FTE: o Term Life
o Health Care o EAP
• Percent change in health plan o Retirement o Total
contributions, by bargaining unit: o Term Life
o City o EAP • Annual contributions towards health plan,
o Employee o Total by bargaining unit:
o Retiree o City
• Annual contributions towards o Employee
health plan per FTE, by o Retiree
• Percent change in health care claims bargaining unit:
paid o City • Annual health claims paid
o Employee
o Retiree


Human • Percent change in workers’ • Annual health claims paid per • Number of workers’ compensation claims
Resources compensation claims filed, by FTE processed, by department
(Cont’d) department
• Number of workers’ • Number of workers’ compensation claims
• Percent change in workers’ compensation claims processed, investigated
compensation claims investigated by department, per FTE
• Number of workforce development,
• Percent change in the average cost per • Number of workers’ training, and educational opportunities
workers’ compensation claim compensation claims provided by:Human Resources
investigated per FTE o Management Training
• Percent of development, training and o Sexual Harassment
education program participants who are • Number of workforce o Diversity
satisfied or very satisfied with their development, training, and
experience educational opportunities • Number of grievances filed
provided by Human Resources
• City-wide employee turnover rate (full per FTE: • Number of compensation studies
time) o Management Training completed
o Sexual Harassment
• Employee turnover rate (fulltime) by o Diversity • Number of desk audits completed
department:
o Retirement • Number of grievances filed per • Number of probationary evaluations
o Disability 100 employees completed, by department
o Death
o Separation • Number of compensation studies • Number of performance evaluations
o Resignation completed per FTE completed, by department
• Percent of new hires (fulltime) that are • Number of desk audits completed • Number of employees on FLMA
retained after their probationary period per FTE
• Number of sick leave hours used, by
• Percent of employees retained after • Number of probationary department
five years of service evaluations completed as
scheduled, by department • Number of hours employees spent on
• Percent change in the number of light duty, by department
grievances filed per 100 employees • Number of performance
evaluations completed as • Number of telephone questions answered
scheduled, by department
• Number of walk-up questions answered


Human • Percent of probationary evaluations • Number of sick leave hours used
Resources completed as scheduled, by per FTE, by department
(Cont’d) department
• Number of hours employees
• Percent of performance reviews spent on light duty per FTE, by
completed as scheduled, by department
Department
• Number of telephone questions
• Percent change in the number of sick answered by FTE
leave hours used per period, by
department • Number of walk-up questions
answered by FTE
• Percent change in the number of hours
employees spend on light duty, by
department
• Percent of telephone questions

answered same day
• Percent of walk-up questions answered

same day
Information • Average age of PCs and laptops • Number of PCs and laptops • Number of PCs and laptops maintained
Services maintained per FTE
• Percent change in number of PC/laptop • Number of PC/laptop installations
installations • Number of PC/laptop installations completed
completed per FTE
• Percent change in the number of lines • Number of new lines installed:
installed • Number of new lines installed per o Phone lines
o Phone lines FTE: o Data lines
o Data lines o Phone lines
o Data lines • Number of work orders completed
• Percent change in number of work o Emergency repairs
orders completed • Number of work orders o Routine repairs
completed per FTE:
• Percent of help desk inquires o Emergency repairs • Number of telephones supported
responded to in the same day o Routine repairs o Desktop
o Mobile Phones


• Percent of scheduled time that the • Cost per telephone supported
Information phone system is operational o Desktop • Number of help desk inquires made
Services o Mobile Phones
(cont’d) • Percent of scheduled time that network • Hours spent maintaining the phone
is operational • Number of help desk inquires system
responded to per FTE
• Percent of scheduled time that the • Hours spent maintaining the network
AS400 is operational • Hours spent maintaining the
phone system per FTE • Hours spent maintaining the AS400
• Percent change in the number of
program modifications • Hours spent maintaining the • Hours spent by IT staff receiving
network per FTE technical training
programming requests • Hours spent maintaining the • Number of phone system training
• completed AS400 per FTE sessions conducted
• Average response time to service • Hours spent by IT staff receiving • Average number of worker orders
inquiries technical training per FTE completed:
o Emergency repairs
• Percent of scheduled time major • Average number of program o Routine repairs
information systems are fully modifications completed per FTE
operational • Number of program modifications
o Email • Cost per programming request completed
o Network completed
o Internet • Number of programming requests
o E-government applications • Cost per network and computer completed
systems activity completed • Number of data back ups completed
• Percent of help desk inquiries
responded to in one day • Network administration • Number of peripheral devices maintained
• PC repairs and upgrades
• Percent of system backups completed • Number of network devices maintained
on time • Number of hours spent receiving
training per FTE • Number of e-government applications
• Percent of file restorations completed maintained
on time
• Number of services maintained


Information • Number of network user accounts
Services
(cont’d) • Number of applications supported
• Number of facilities supported
• Number of system access requests

completed
• Number of viruses blocked by firewall
Procurement • Percent of total purchases that were • Total departmental operating cost • Number of requisitions received
and purchased as an emergency per $1,000 purchased
Collection • Number of purchases completed
• Percent of purchases that were sole- • Average dollar value per
source purchases purchase order o Goods and Supplies
$1 to $9,999
• Percent of budget spent on staff • Average processing time spent $10,000 and up
training and development per purchase order
o Construction
• Percent of contracts requiring change • Average number of days needed $1 to $9,999
orders to process a bid/RFP (through $10,000 and up
contract execution)
• Percent of bids/RFPs requiring an o Professional Services
addendum • Number of accounts managed $1 to $9,999
per FTE $10,000 and up
• Percent of accounts that are current, by
type • Number of Customer Service • Total value of purchases made that were:
contacts per FTE o Goods and Supplies
$1 to $9.999
• Number of Cashier transactions $10,000 and up
per FTE Construction
$1 to $9,999
$10,000 and up
o Professional Services
$1 to $9,999
$10,000 and up


Procurement • Number of RFP issued
and
Collection • Dollar value of RFPs issued
(cont’d)
• Number of bids issued
• Dollar value of bids issued
• Number of bid/RFP addendums issued
• Number of change orders received
• Total value of emergency purchases
• Total number of emergency purchases

processed
• Hours spent processing purchase orders
• Number of accounts managed
• Number of Customer Service contacts

made
• Number of Cashier transactions

ATTACHMENT F – TRASH BILLING PROCESS

City of Lancaster
APPENDIX G – PROCUREMENT PROCESS

City of Lancaster
APPENDIX H – HIRING PROCESS

ATTACHMENT I – PUBLIC WORKS PERFORMANCE MEASURES

Water Treatment • Percent of work orders completed • Electricity cost per million gallons • Number of facilities maintained
as scheduled treated
• Number of process tests completed
• Percent of total repairs completed • Work orders completed per FTE
by work order • Number of work orders completed
• Average repair cost per million
• Percent of preventative gallons of water distributed • Number of preventative maintenance
maintenance activities completed: activities completed
o As scheduled • Operations cost per million gallons
o As budgeted of water distributed Susquehanna • Number of emergency repairs completed
Conestoga
• Percent change in average sick • Number of water quality tests conducted
leave use per FTE Susquehanna Conestoga
• Percent change in employees on
light duty
• Percent of water pumped that is
billed
• Percent of water quality tests
meeting minimum testing standards
o Susquehanna
o Conestoga
• Percent of combined effluent turbidity
measurement below:
o .3 NTU
o .1 NTU
o .15 NTU
Transmission and • Percent of preventative Work orders completed per FTE Number of work orders completed
Delivery maintenance activities completed
o As scheduled Average repair cost per million Number of preventative maintenance
o As budgeted gallons of water distributed activities completed
• Percent of repeat repairs completed Cost of water line maintained per Number of emergency repairs completed
FTE
• Percent change in average sick Number of activities completed
Cost per mile of line maintained o Pipe installations


leave per FTE o Main breaks
Number of new service installations o Hydrants inspected, painted and
Transmission and • Percent change in employees on completed per FTE repaired
Delivery (Cont’d) light duty o New service installations
• Number of activities completed per o Locates
• Percent of routine flushing FTE:
completed as scheduled o Pipe installations
o Main breaks
• Percent of water main breaks o Hydrants inspected, painted
requiring repeat repairs within 30 and repaired
days o New service installations
• Percent change in the number of :

o Pipe installations
o Main breaks
o Hydrants inspected, painted
and repaired
o New service installations
• Percent of system inspected

annually
• Percent of
rehabilitation/replacement
completed:
o As scheduled
o As Budgeted
Waste Water • Percent of stormwater accounts • Number of linear feet inspected per Number of stormwater quality violations
audited FTE
Number of flow meters installed in the
• Percent of stormwater problems that • Cost per manhole maintained collection system
require action after issuance of
notice of violation • Average cost per linear foot of Number of sewer line repairs completed
sewer line repaired
• Percent of system cleaned annually Number of feet of line cleaned
• Cost per 1,00 flushes
light duty employees per FTE • Average number of hours spent


• Percent change in the average cost completing wastewater activities per
per damage claim FTE
Waste Water
(cont’d) • Percent of planned O and M work o Process testing
completed as scheduled o Lift station operations
o Rodding o Plant operations
o Jetting o Biosolids operations
o TV inspections o Extraneous flow operations
o Line Repairs o Misc.
o Manhole repairs o
o Grease inspections • Cost per wastewater operation
o Cured in place pipe activity
o Process testing
• Percent of televised inspections o Lift station operations
completed as scheduled o Plant operations
o Biosolids operations
• Percent of biosolids recycled for o Extraneous flow operations
beneficial use o Misc.
Street • Percent of pavement rated as • Number of lane miles maintained • Total lane miles of street overlay
acceptable or above in the per FTE completed
pavement condition index
• Number of vehicle accidents per • Number of linear feet of sidewalk
• Percent of curb and gutter 10,000 miles repaired
infrastructure rated as
o Good • Cost per maintenance activity • Tonnage of snow removal material
o Fair completed applied
o Poor
o Critical • Cubic yards of waste collected during
street sweeping
• Percent of sidewalk infrastructure
rated as • Number of lane miles swept
o Good
o Fair • Number of potholes filled
o Poor
o Critical • Number of sidewalk repairs completed
light duty employees per FTE • Number of catch basins repaired


sick leave hours per FTE
Street
(Cont’d) • Percent of lane miles crack sealed
as scheduled
• Percent of potholes on arterial

roadways filled within 24 hours of
notification
• Percent of time an emergency

repair site is secured within 3 hours
of request
Traffic • Percent of downed signs reinstalled • Number of traffic signal heads • Number of traffic signal heads converted
within 3 business days of locate converted to LED per FTE to LED
• Percent of traffic signal heads • Number of traffic signal preventative • Number of traffic signal preventative
converted to LED maintenance inspections completed maintenance inspections completed
per FTE
• Number of new signs installed
• Number of new signs installed per
FTE • Number of signs upgraded
• Number of signs upgraded per FTE • Number of signs fabricated

Fleet • Average operational readiness of • Average operating and maintenance • Number of work orders received
the fleet cost per fleet unit
o Fire o Heavy equipment • Number of work orders completed
o Police o Light equipment
o All other heavy duty o Sweepers • Number of repairs contracted out
o All other light duty o Dump truck
• Number of repairs made in-house
• Average number of days to • Percent of mechanic hours that are
complete a work order billable • Number of preventative maintenance
o Heavy duty preventative jobs made in house
maintenance • Total fuel cost
o Heavy duty repair • Number of preventative maintenance


o Light duty preventative • Cost per fleet service ability: jobs contracted
maintenance o Preventative maintenance
o Light duty repair In house • Number of repeat repairs
Contract
• Number of fuel storage systems tested
• Percent of preventative o Repairs
Fleet maintenance completed as In house • Number of vehicle breakdowns
(Cont’d) scheduled Contract
o Contracted body repairs
• Percent of fleet units exceeding
optimal use • Number of work orders completed
by FTE:
o Preventative maintenance
• Percent of fleet units that meet o Repairs
APQA/NAFA recommended
utilization rates • Average fuel cost per 1,000 miles
driven:
• Percent of repeat repairs completed o Heavy equipment
within 30 days of original repair o Light equipment
Engineering • Percent of engineering plan reviews • Average number of engineering Number of engineering plan reviews
completed within 10 business days plan reviews per project
Number of site plans reviewed
• Percent of site plan reviews • Cost per engineering services
completed within 7 business days activity
o Engineering plan review
• Percent of transportation o Site plan review
infrastructure construction projects o Inspections
completed within 110% of award

ATTACHMENT J – STATUS OF ECON DEV RECOMMENDATIONS (25)

AS OF FEBRUARY 2007
ECONOMIC DEVELOPMENT:
Work with the private sector and the community to create an economic development
plan that reflects a vision and articulates goals for the City. Included in this plan must
be: a strategy to create or improve public spaces; a strategy to develop Lancaster
Square East; and a strategy for parking as an economic development tool.
Although elements of this objective have been pursued, no specific action has been taken to
create a City-wide economic development plan. The County will be embarking on a County-wide
economic development plan in 2007 and the City will be involved in development of that report.
The City has secured Urban Enhancement Grant Funds to create a Master Plan for Lancaster
Square East. The Administration is engaged in on-going discussions with the Parking Authority
to develop a long-term strategy for parking and connectivity in the City. As part of this discussion,
the City has been evaluating the feasibility of a streetcar system in the downtown.
Develop a cohesive marketing piece that can be used to entice investors and stimulate
job growth in the City. Develop a presentation of all existing economic development
projects, studies, and reports into a coherent and understandable format and
communicate this presentation to all current and potential investors and developers.
The need remains to develop a marketing and business recruitment piece for the City.
As an interim step we have created a map showing recently completed development projects,
those under construction and those in the planning stages. This map is periodically updated.
The map has been distributed to developers interested in the City of Lancaster and to community
development organizations already operating in the City.
Initiate a visioning process that engages the community in determining the future of
the City of Lancaster, defines current and projected market conditions for economic
development, establishes quality of life standards for neighborhoods, and identifies
financial resources available to make the “vision” a reality.
The City engaged Brookings Institution consultant Chris Leinberger to initiate this process and
develop a vision for the City. The process included interviews with key individuals and
companies in the community, compilation and analysis of data, and two forums to identify what
the City should focus on in the next 3-5 years to continue revitalization efforts in the downtown.
The Brookings Institute also prepared a fiscal impact analysis of the proposed vision.
Implementation of the proposals in the vision statement is ongoing.
Focus on completion of site-specific projects or initiatives including: parking on the

west side of the 100 block of North Queen Street; rehabilitation of properties on the
north side of the 100 block of East King Street; reauthorization of the D.I.D.; sale of
Lancaster Press Building; South Duke Street corridor; redevelopment of the former
Armstrong site; Stockyards/Gateway plans; and KOZ business park.
We have continued to work with developers that have proposed a project in the 100 block of East
King Street. This project includes a parking garage. We are also working with the Parking
Authority to develop a parking garage in the same block on the south side of East King Street.
The DID has been reauthorized for six years. A DID plan with proposed tax increases will be
considered for adoption by City Council in March 2007.

A proposal for the sale of the Press Building has been approved by City Council. Plans call for
development of ground level retail space and upper level apartments and condominiums and a
parking garageat this site.
The City Redevelopment Authority served as the applicant for a $500,000 RACP grant for the
Armstrong site and the City is examining strategies to finance infrastructure development at and
in the vicinity the site.
We continue to market the KOZ lots. The City spent considerable time investigating the financing
and developer agreements for the KOZ agreed to by the prior administration. The prior
administration provided an $800,000 CDBG loan to the Redevelopment Authority to help finance
the development of the KOZ. This loan needed to be repaid prior to October 2006. Because of
the financing structure for the development of the KOZ between the Authority and the developer,
and the fact that only a few lots had been sold, the Authority was unable to repay the $800,000
when due. The City made a temporary loan to the Authority to repay the CDBG loan. In
exchange for the loan the Authority provided the remaining lots in the KOZ as collateral.
The City has had several conversations with a developer interested in the Stockyards site and is
working with a developer to redevelop the former Kemps site along Pitney and Hempstead
Roads.
Thoroughly review and revise the entire RFP process.

The City has dramatically improved this process by developing a Request for Proposal format to
use when selling or developing City assets. The RFP for the Lancaster Press Building was the
first use of the new format. The RFP ensures that City assets are sold to developers with the
financial capacity and the development experience needed to ensure timely and successful
development of City-owned sites.
Include a plausibility test and an economic impact analysis when evaluating economic
development project proposals.
Although the RFP process provides some assurances that project proposals are credible, no
action has been taken at this time to measure fiscal impact. In 2007, we will discuss this issue
with F&M's Local Economy Center and research available fiscal impact models to develop an
analysis suitable for the City.

ATTACHMENT K - STATUS OF NEIGHBORHOOD IMPROVEMENT AND

REVITALIZATION RECOMMENDATIONS (17) AS OF FEB 2007
NEIGHBORHOOD REVITALIZATION:
Consideration should be given to increasing the number of Building Inspectors. The

Uniform Construction Code must be adopted and Certification of Building Inspectors
must be a priority.
City building codes have been consolidated into a single chapter and adopted under the Uniform
Construction Code. The City's fire prevention code will be incorporated into the UCC Chapter in
early 2007. At the same time, references to the former BOCA code have been eliminated. This
significantly reduces confusion related to building codes and greatly enhances the process for
builders, developers, and property owners. Both Housing and Building Inspectors are being
trained in the appropriate International Codes to obtain their required certifications.
City government must work more closely with non-profit, neighborhood-based

community development organizations, the Council of Neighborhoods and individual
block associations. City government must initiate on-going partnerships with
neighborhood churches, businesses, and civic groups to develop and implement
neighborhood improvement plans.
Work with neighborhood-based community development organizations has significantly increased
with the appointment of Carol McCoy as the City’s Neighborhood Revitalization Administrator. In
this position, Carol acts as the single point of contact with neighborhoods and coordinates
responses with other City Bureaus and Departments.
We have convened an initial meeting with the major neighborhood and community development
groups. Quarterly meetings are planned to share information and resources and coordinate
efforts.
Staff is working closely with Bethel Harambee and Bethel AME Church to develop and implement
a comprehensive neighborhood improvement program in the ChurchTowne neighborhood. City
staff continues to work with SACA to continue their Homeownership Choice Project along Palm
Street. The City is also working to assist two neighborhoods to implement their Elm Street
Programs; the Inner City group in the Southeast and the James Street Improvement District in the
Northwest.
The City should provide assistance, coordination, and staff support to develop and
implement a neighborhood planning and assessment process; and to efficiently
allocate and share resources among various community development organizations.
City government must be proactive in identifying and securing public and private
funds to support neighborhood revitalization efforts. The Administration should
provide grant-writing support, define common priorities and coordinate grant
applications.
The City secured $190,000 from Lancaster LIVE to initiate a planning and assessment process
for the Southwest and Northeast quadrants of the City. Additional LIVE funds have been secured
to subsidize the cost of sidewalk repairs for low-income and senior homeowners. Funds have
also been secured from Pennsylvania’s Elm Street Program to support property rehabilitation and
home ownership initiatives in the Elm Street target areas.
Neighborhood organizations have agreed to inform the City of applications they are preparing or
submitting to the State and Federal government for projects in their neighborhoods. When

possible, the City will “package” funding applications that benefit multiple neighborhood
organizations.
City government must provide assistance to non-profit and for-profit developers with
projects that require significant infrastructure improvement or investment (sidewalks,
lighting, streets).
Sidewalk repairs, improved lighting, and street improvements have occurred throughout the City,
and additional infrastructure improvements are planned for the downtown. Pedestrian lighting
has been increased in the JSID; streetscape improvements have been made along the East King
Street and South Duke Street corridors; and new housing development with streetscape
improvements have been completed along South Plum Street. These projects have been
undertaken in conjunction with the JSID, EKID, Bethel Harambee, the Inner City Group, and
SACA Development Corporation.
The Administration must strengthen relationships and streamline the process for
building and fire inspection and approval.
The City is working to implement a team approach to review building plans for major projects. The
team approach will encourage developers to present their plans at a joint meeting where building
inspectors for structure, plumbing and electric and fire marshals are in attendance to conduct a
single point comprehensive review of the plans rather than requiring the developer to meet with
each inspector individually.
A similar team review approach is being implemented for those projects that are only at a
development stage. Each project will be reviewed by a team made up of zoning, public works,
planning and land development, historical and building disciplines.
The elimination of the Chapter of the City Code which referenced the BOCA code and the
consolidation of all building codes under the City’s Uniform Construction Code, which occurred in
December, will also streamline the process and eliminate confusion for the development
community. Once the City’s fire codes are revised and consolidated under the Uniform
Construction Code this process will be complete.
The Administration should encourage economic development in neighborhoods.

The planning process for the Southwest and Northeast is expected to identify economic
development opportunities in those neighborhoods.
Using CDBG and HOME funds, the City was able to support a project sponsored by South Ann
Street Concerned Neighbors that included a cyber café and rental property on South Ann Street.
The City is also providing financial support to SACA for the development of a multi-use
commercial and residential property on S. Duke Street.
The Administration should replace the City’s complaint-based housing inspection

program with systematic housing inspections every two years. The Administration
should require that city rental units pass an inspection before a rental license is
issued and when a change in occupancy occurs.
In practice, the current rental-licensing program is voluntary and licenses are issued and/or
renewed prior to inspection. We have been examining current ordinances regulating rental
licensing and will convene a rental property task force in early-2007. We expect to make
recommendations to City Council in 2007 for ordinance revisions and improvements to the City’s
licensing program.

This year, the software package for tracking housing inspections and code violations was finally
implemented, replacing the 3x5 index cards that have been used to record housing inspection
data. With this new data collection system in place, we can focus on completing interior and
exterior inspections of all housing units over the next two years.
Fire bureau personnel should be cross-trained and certified to perform housing

inspections. At the same time, careful consideration should be given to Fire Bureau
staffing levels to ensure adequate fire protection.
The Housing Bureau and Fire Bureau managers have been meeting to develop a plan to
implement this cross-training effort. Some issues related to labor contracts and others related to
differences between the fire code and housing code are being worked through with the goal of
completing this task in 2007.
The Administration should consider a rental housing ordinance that allows for refusal
to issue a rental license to a landlord who owns any rental property in the City that is
deemed unfit; and that allows tenants and neighbors within 1200 feet of an unfit
property to sue to abate a dangerous condition and appoint a receiver to handle the
problem property.
This recommendation will be examined by the Rental Property Task Force and City Solicitor.
The Administration should consider posting a list of non-compliant landlords on its

website and in local newspapers. Likewise, the City should maintain a database of
problem tenants who are chronically evicted and move from property-to-property.
As previously noted, the entire landlord/tenant and rental property issue has been under review
since spring 2006. Legal Services attorneys are reviewing ordinances from other Cities and this
review should be completed in early 2007. At that time, the Mayor will convene a Rental Property
Task Force to make recommendations as to actions, programs, or legislation that may be
considered to address these issues.
The Administration should establish a Façade Improvement Grant Program similar to

the City of York, Mount Joy, Ephrata, Doylestown, and others to help property owners
fund a percentage of street front improvements consistent with accepted national
historic preservation standards. Include a façade easement donation tax benefit for
owners in cooperation with the Historic Preservation Trust as charitable recipient.
DID has applied for a façade renovation grant from DCED. No action on other recommendations.
In 2006, façade improvement grants were available to Northwest and Southeast neighborhoods
through Pennsylvania’s Elm Street Program. A City-funded program will be considered in 2007.
We will also discuss the possibilities of easement tax benefits with the Historic Preservation Trust.
The Administration should create opportunities for the non-profit and the private
sector to secure ownership of abandoned buildings and/or vacant land for conversion
to quality housing.
The City has taken steps to eliminate granting owners of vacant properties repeated extensions
of deadlines to complete rehab of properties referred to the Vacant Property Reinvestment Board.
The Board has begun taking a more firm stance to require property owners to meet the time
commitments agreed to by the owner. The Board will be looking at the process for referring
vacant and abandoned properties to the program. At the present time properties must be vacant
for six months before they are referred to the program.

The Administration must partner with the private sector (lending institutions, City
based employers, etc.) to provide incentives that will encourage employees to live in
the City. Employer Assisted Housing incentives may include façade improvement
grants, down payment and closing cost assistance, or property rehabilitation grants.
LGH and F&M initiated an employer assisted housing program this year. The Administration will
continue to examine the feasibility of an incentive program for City employees this year.

ATTACHMENT L – ECONOMIC DEVELOPMENT AND NEIGHBORHOOD REVITALIZATION

SAMPLE PERFORMANCE MEASURES

Planning • Percent of complete applications • Cost for planning department per • Number of application reviews
presented to the Planning application processed by type: completed by type:
Commission within X days o Preliminary plat o Preliminary plat
o Preliminary plat o Final Plats o Final Plat
o Final Plats o Special use o Special use
o Special use o Rezoning o Rezoning
o Rezoning o Preliminary development plan o Preliminary development plan
o Preliminary development o Final development plan o Final development plan
plan o Variance
o Final development plan • Number of applications reviewed per o Lot splits
planner (by type) o Flood plain development
• Percent of complete applications permits
presented to BZA within X days • Appeals of official determination o Site Plans
• Percent of complete site plan • Number of projects and special studies • Appeals of official determination
applications approved managed per FTE
• Total application processing hours
• Percent of applications receiving • Cost per comprehensive plan update (by type)
initial review within X working
days • Cost per area plan update • Number of amendments prepared
• Percent of current planners with • Cost per special study completed • Number of completed applications
AICP certification presented to board of zoning
appeals
• Percent of technical assistance
calls responded to within X • Number of site plan applications
working days approved
• Percent of text amendments acted • Number of applications receiving

on by the Planning Commission review within X days
consistent with staff
recommendation • Number of planners with AICP
Certifications


Planning
(cont’d) • Percent of comprehensive plan
updates completed as scheduled • Number of comprehensive plan
updates completed
• Percent of grant activities
completed on schedule • Number of area plans completed
• Percent of total time spent on • Number of grant activities

grant activities completed
• Total hours spent on grant

activities
• Number of special projects and

studies completed


Building • Percent of residential permits • Average number of plans reviews • Total number of permits issued
Inspection and issued within X business days completed per FTE o Residential
Safety o Commercial
• Percent of commercial permits • Average number of inspections o Sign
issued within X business days completed per FTE o Demolition
o Miscellaneous
• Percent of sign permits issued
within X days • Total number of plans reviewed
o Residential
• Percent of initial o Commercial
residential/commercial plan
reviews completed within X • Total number of inspections
business days completed
• Percent of inspections completed • Number of licenses issued

within X hours of assignment o Contractor
o Trades
• Percent of inspections where
results are completed in the field
• Percent of costs recovered

through the City’s fee structure
Zoning and Code • Percent of housing inspections • Average number of inspections per FTE • Number of complaint calls
Enforcement completed as scheduled per day received by the department
o Zoning
• Percent of business sign o Structural • Number of inspections completed
violations responded to within the o Weed/lawn
same day o Rental housing inspections • Number of housing inspections
completed
• Percent of code violations • Cost per zoning and code enforcement
resolved without prosecution or activity • Number of grass and weed
administrative hearing o Structural inspections violations
o Environmental o Rental housing inspections
o Structural • Number of grass and weed
o Rental housing • Vehicle cost per 10,000 miles driven maintenance activities completed


• Percent of weed and lawn • Number of rental property
maintenance costs recovered inspections conducted
• Percent of rental inspections • Number of inspections completed

completed on time o Staff initiated
o Complaint driven
• Percent of inspections that are
staff initiated:
o Zoning
o Environmental
o structural
o Weed/lawn
Neighborhood • Percent of grant funds and • Number of projects managed per FTE • Number of projects completed (by
Revitalization program income expended: (by type) type)
o HOME
o CDBG • Average funding allocation per funded • Number of projects completed in
agency target neighborhoods
• Percent change in median
assessed property value in • Applications processed per FTE • Number of agency partners
CDBG-HOME expenditure areas
• Average amount of financing per project • Number of prospective housing
• Percent of projects completed (list sources of financing below – unique units inspected for the programs
within original bid (by type) in every community)
• Number of loans approved by type
• Percent of comprehensive • Average project financing dollars per
rehabilitation projects completed designated economic development • Number of families assisted
within contract time corridor

projects completed:
Comprehensive rehabilitations
o Emergency Loans
o Weatherization
o First time home buyer
o Property acquisition
o Infrastructure


Neighborhood • Percent of funds used for:
Revitalization o New units
(cont’d) o Rehabilitation
o Correction of code violations
o Special populations
o Demolitions
Economic • Percent change in Tax Increment • Average amount of TIF funds per • Number of TIF projects
Development Financing funds authorized project
• Amount of funds allocated
• Percent of TIF districts • Percent of TIF funds utilized per private o TIF
implemented within X months investment project o Local
(from creation to approved
redevelopment district to • Average amount of City financing per • Number of requests for incentives
approved bond) $1,000 of private investment
• Number of incentive requests
• Percent of economic development approved
projects financed with local funds
• Amount of investment dollars
• Percent change in the local tax leveraged
base
• Number of projects assigned for
• Percent of requests for incentives staff to expedite
approved
• Number of neighborhood business
• Percent of new businesses revitalization projects
assisted with local funds
• Number of federal grant
• Percent change in the dollar value administration hours
leveraged for development
projects resulting from
partnerships with public or private
entities

ATTACHMENT M – POLICE BUREAU PERFORMANCE MEASURES

Patrol • Percent Change in Crime Rate • Percent of total patrol hours • Hours spent answering
o Part I Crime available consumed by dispatched calls for service
o Part II Crime o directed patrol/officer initiated o Priority 1
activity o Priority 2
• Percent Change in Violent Crime o dispatched calls for service o Priority 3
administrative activities o Priority 4
• Percent of Residents saying they feel safe o Priority 5
o during daylight hours • Percent of total patrol hours o Priority 6
o during night time hours available consumed by o Priority 7
o attending special events o Priority 1 dispatched calls
o Priority 2 dispatched calls • Number of calls for service
• Percent of Residents rating Police Bureau as o Priority 3 dispatched calls o Priority 1
o Very effective o Priority 4 dispatched calls o Priority 2
o Effective o Priority 5 dispatched calls o Priority 3
o Average effectiveness o Priority 6 dispatched calls o Priority 4
o Ineffective o Priority 7 dispatched calls o Priority 5
o Very Ineffective o Priority 6
• Hours per officer used for all o Priority 7
• Percent of Residents rating police officers types of leave
o respectful • Hours consumed by directed
o helpful • Percent of officer time used for patrol/officer initiated activity
all types of leave
• Number of officer initiated
• Cost per patrol officer activities
activities per patrol officer • Hours consumed by
administrative tasks
• Cost of contracted services as a
percentage of revenue collected
o Lancaster Township
o Downtown Improvement
District
o Franklin Marshall College
o Park City Shopping Mall


Criminal Investigation • Percent Change in Violent Crime Rate • Average number of cases • Number of cases assigned for
Violent Crime Squad o Part I Crime assigned per detective investigation
o Part II Crime
• Average number of cases • Number of assigned cases
• Violent Crime Clearance Rate cleared per detective cleared
o Part I Crime
• Personnel cost per investigation • Number of prior cases cleared
o Part II Crime
• Overtime hours worked
• Percent of violent crime victims rating • Average overtime hours per
detectives as investigator
o respectful
o helpful • Average leave hours per
investigator
Criminal • Percent Change in Property Crime Rate • Average number of cases • Number of cases assigned for
Investigations o Part I Crime assigned per detective investigation
Property Crimes o Part II Crime
Squad • Average number of cases • Number of assigned cases
• Property Crime Clearance Rate cleared per detective cleared
o Part I Crime
o Part II Crime • Personnel cost per investigation • Number of prior cases cleared
• Percent of property crime victims rating • Average overtime hours per • Overtime hours worked
detectives as investigator
o respectful
o helpful • Average leave hours per
investigator


Criminal Investigation • Percent change in special victim crime rate • Average number of cases • Number of cases assigned for
Special Victims o Part I Crimes assigned per detective investigation
o Part II Crimes
• Average number of cases • Number of assigned cases
• Special victim crimes clearance rate cleared per detective cleared
• Percent of special victim crimes victims • Personnel cost per investigation • Number of prior cases cleared
rating detectives as
o respectful • Average overtime hours per • Overtime hours worked
o helpful investigator
• Average leave hours per

investigator
Criminal • Percent of pieces of evidence produced • Cost per piece of evidence • Number of evidence
Investigations within 24 hours of request stored transactions
Evidence Unit
• Percent of pieces of evidence returned to • Average time to comply with • Number of pieces of evidence
owner upon release by court within 72 request for evidence returned to owner
hours
• Number of pieces of released
• Percent of requests for evidence resulting evidence disposed of
in lost evidence
• Number of new pieces of
• Annual audit of drug evidence resulting in evidence secured
no shrinkage: yes/no
• Annual audit of funds evidence resulting in

no shrinkage: yes/no
• Annual disposal of evidence released by

court: yes/no


Patrol Services • Percent of abandoned vehicles removed • Traffic Support Unit Cost as a • Number of abandoned vehicle
Traffic Support Unit within 24 hours of legal requirement percent of revenue generated complaints
from enforcement activity
• Percent change in number of abandoned • Number of abandoned vehicles
vehicles • Number of citations issued per removed
enforcement officer
• Percent change in abandoned vehicle • Number of parking complaints
complaints
• Number of parking citations
• Percent change in parking enforcement issued
complaints • street sweeping
• other
• Percent change in parking citations issued
• street sweeping • Number of traffic signage
• other requests processed
• Percent of traffic signage requests • Number of traffic signage

investigated and responded to in thirty installations implemented
days
• Number of signalized
• Percent of traffic signage installations intersections staffed by traffic
implemented within three days of approval control personnel
• Number of traffic control duty

tours


Patrol Services • Percent change in crimes • Cost of SROs as a percentage • Number of crimes processed
School Resource Officers committed on school sites of contract revenue o Part I Crimes
o Part I Crimes o Part II Crimes
o Part II Crimes • Average number of students per
SRO • Number of non-criminal
• Percent change in non-criminal incidents handled
incidents handled by SROs
• Number of
• Percent of students reporting educational/counseling sessions
that they feel safe on school held
sites
• Percent of school personnel

rating SROs as
o respectful
o helpful
• Percent of students rating SROs

as
o respectful
o helpful
• Percent of student’s parents

rating SROs as
o respectful
o helpful


Patrol Services • Percent of patrol staff rating • Cost of unit as a percentage of • Hours spent answering
Mounted Patrol mounted unit as revenue from donations dispatched calls for service
o Necessary o Priority 1
o Unnecessary • Average number of calls for o Priority 2
service handled per mounted o Priority 3
• Percent of Residents rating unit officer o Priority 4
mounted unit as o while on mounted duty o Priority 5
o Necessary o while on dismounted duty o Priority 6
o Unnecessary o Priority 7
• Percent of patrol staff rating • Number of calls for service

mounted unit as o Priority 1
o Very effective o Priority 2
o Effective o Priority 3
o Average effectiveness o Priority 4
o Ineffective o Priority 5
o Very ineffective o Priority 6
o Priority 7
• Percent change in incidents
• Hours consumed by directed
responded to
patrol/officer initiated activity
Percent of available time spent on • Hours for administrative tasks
o mounted duty
o dismounted duty • Number of duty tours
o on mounted duty
o on dismounted duty
• Number of public events
• Number of calls for service

o on mounted duty

activities
o on mounted duty


Patrol Services • Percent Change in Crime Rate • Percent of total patrol hours • Hours spent answering
Special Enforcement Unit o Part I Crime available consumed by dispatched calls for service
o Part II Crime o directed patrol/officer initiated o Priority 1
activity o Priority 2
o administrative activities o Priority 4
• Percent of Residents saying o Priority 5
they feel safe • Percent of total patrol hours o Priority 6
o during daylight hours available consumed by o Priority 7
o during night time hours o Priority 1 dispatched calls
o attending special events o Priority 2 dispatched calls • Number of calls for service
o Priority 3 dispatched calls o Priority 1
• Percent of Residents rating o Priority 4 dispatched calls o Priority 2
Police Bureau as o Priority 5 dispatched calls o Priority 3
o Ineffective • Hours per officer used for all o Priority 7
o Very Ineffective types of leave
• Percent of Residents rating • Percent of officer time used for patrol/officer initiated activity
police officers all types of leave
o respectful • Number of officer initiated
o helpful • Cost per patrol officer activities
• Number of officer initiated • Hours consumed by

activities per patrol officer administrative tasks


Patrol Services • Percent Change in Crime Rate • Percent of total patrol hours • Hours spent answering
Community Policing o Part I Crime available consumed by dispatched calls for service
o Part II Crime o directed patrol/officer o Priority 1
initiated activity o Priority 2
o administrative activities o Priority 4
• Percent of Residents saying o Priority 5
they feel safe • Percent of total patrol hours o Priority 6
o during daylight hours available consumed by o Priority 7
o during night time hours o Priority 1 dispatched calls
o attending special events o Priority 2 dispatched calls • Number of calls for service
o Priority 3 dispatched calls o Priority 1
• Percent of Residents rating o Priority 4 dispatched calls o Priority 2
Police Bureau as o Priority 5 dispatched calls o Priority 3
o Ineffective • Hours per officer used for all o Priority 7
o Very Ineffective types of leave
• Percent of Residents rating • Percent of officer time used for patrol/officer initiated activity
police officers all types of leave
o respectful • Number of officer initiated
o helpful • Cost per patrol officer activities
• Number of officer initiated • Hours consumed by

activities per patrol officer administrative tasks
Patrol Services • Percent coverage of posts by • Cost per duty tour • Number of duty tours
School Crossing Guards o crossing guards
o sworn personnel • Ratio of number of personnel
hired to crossing sites staffed
• Percent coverage of assigned
posts


Administration Division Percent change in citizen • Cost per investigation • Number of complaints
Professional Standards complaints investigated
• Number of investigations per
Percent change in complaint investigator • Number of investigations started
disposition
o unfounded • Number of investigations
o not actionable completed
o actionable
• Average cycle time per

investigation
• Percent change in average

investigation cycle time
• Percent of complainants
contacted about investigation
outcome
• Percent of Residents describing

police as ethical and honest
Administration Division • Percent of detainees escaping • Cost per detainee • Number of detainees processed
Detention detention
• Average number of detainees
• Percent of detainees delivered per day
to correct judicial hearing site on
time • Average days stay per detainee
• Percent change in number of

detainee complaints


Administration Division • Percent of records entered • Average number of records • Number of records entered
Records Section within 24 hours of receiving entered per records entry person
report • Number of requests for reports
• Average number of reports
• Number of days records entry copied per records entry person
backlog exceeds 24 hours
• Percent of records entered

without error
• Number of records requests

processed within 24 hours
• Number of days report request

backlog exceeds 24 hours
• Percent change in number of

non-compliance incidents with
National Crime Information
Center standards
Administration Division • Percent of warrants issued • Cost per warrant served • Number of new warrants issued
Warrants during the year served during for service
the year
• Number of outstanding warrants
• Percent change in outstanding
warrants • Number of warrants successfully
served


Administration Division • Percent of sworn personnel • Sworn personnel per capita • Number of personnel scheduled
Training fulfilling state mandated training training expenditure for mandated training
on time
• Number of non-mandated
• Average number of training training events scheduled
hours per sworn position
• Percent of sworn personnel

rating training as
o Excellent
o Very Good
o Average
o Below Average
o Poor
Administration Division • Percent of staff rating • Department per capita cost for • Number of information
Information Technology technology support as information technology technology projects initiated
o Excellent
o Very Good • Number of information
o Average technology projects completed
o Below Average
o Poor • Number of requests for
assistance
• Percent of projects completed as
scheduled • Number of special reports
prepared
• Percent of special reports
completed on schedule
• Percent change in requests for

assistance


Administration Division • Percent of stores requests • Processing cost per request • Number of requests processed
Quartermaster processed within three days of
receipt • Average daily inventory value • Number of vendor orders
placed
• Average stores request
processing cycle time • Number of items delivered
• Percent of stores requests

classified as “out of stock”

ATTACHMENT N – FIRE BUREAU PERFORMANCE MEASURES

Operations • % Change in dollar value of fire loss • Average daily incidents • Total number of incidents by
type
• Dollar value of fire loss as a percent of • Average daily fires o Fire
total assessed value o Rupture
• Cost per Incident o Rescue
• % Change in civilian fire injuries o Hazardous Condition
• Cost per Fire o Good Intent
• Civilian fire injuries as a percent of o False Alarm
population • Injury hours lost as a percent of total labor o Public Service
hours worked o Other
• % Change in firefighter injuries
• Number of fires by type
Firefighter injuries as a percent of total o Buildings
number of firefighters o Vehicles
o Other
• % Change in $10,000 and over fires
• Number of Fire Drills
• % Change in False Alarms
• Number of UL Inspections
• Number of Classes Given
• Number of fire hydrants

inspected


Fire Prevention • % Change in Plans Reviewed • Number of plans reviewed per • Number of Inspections by Type
inspector o Place of assembly “A”
• % Change in dollar amount of plans o Place of assembly “B”
review fees • Number of inspections per inspector o Place of assembly “C”
o Required fire alarm
• % Change in Jobs Completed • Number of complaints investigated per inspections
inspector o Mercantile class “A”
• % Change in Complaints Received o Mercantile class “B”
• Number of Certificates of Fitness o Day Care
• % Change in Notice of Violation Issued issued per inspector o Repair garage
o Consolidated
• % Change in Citations Issued • Average cycle time per plan review o Other
• % Change in plan review cycle time • Number of plans reviewed
• Number of jobs completed
• Number of complaints
investigated
• Number of Notice of Violation

issued
• Number of Citations issued
• Number of Certificates of Fitness

issued


Administration • % Change in overtime expense • % of dollar value of hazardous condition • Number of training hours
incident charges collected
• % Change in number of training • Number of hazardous condition
hours • % of dollar value of false alarm charges incident charges issued
collected
• % of Hazardous Materials Unit • Dollar value of hazardous condition
response cost recovered • Average number of training hours per incident charges issued
sworn position
• % Change in Hazardous • Dollar value of hazardous condition
Condition Incident charges incident charges collected
• % of Hazardous Condition • Number of false alarm charges issued

Incident charges collected
• Dollar value of false alarm charges
• % of False Alarm Charges issued
collected
• Dollar value of false alarm charges
collected

Lancaster, Pennsylvania

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LANCASTER, PENNSYLVANIA

FINANCIAL ANALYSIS AND OPERATIONS

Mayor Richard Gray

Dear Mayor Gray:

1730 Madison Road www.managementpartners.com 513 861 5400

EXECUTIVE SUMMARY ......................................................................... 11

CITY FINANCES ...................................................................................................... 12

METHODOLOGY .................................................................................... 15

BENCHMARK SURVEY............................................................................................. 16

FINANCIAL ANALYSIS .......................................................................... 19

FINANCIAL FORECAST METHODOLOGY.................................................................... 20

CITY OF LANCASTER ECONOMIC DEVELOPMENT STRATEGY AND

ECONOMIC DEVELOPMENT TOOLS AND INCENTIVES ................................................. 47

ADMINISTRATIVE SERVICES ............................................................... 51

PUBLIC WORKS..................................................................................... 81

OVERVIEW ............................................................................................................. 81

DEPARTMENT OF ECONOMIC DEVELOPMENT AND

OVERVIEW ........................................................................................................... 116

POLICE BUREAU ................................................................................. 141

OVERVIEW ........................................................................................................... 141

FIRE BUREAU ...................................................................................... 163

OVERVIEW ........................................................................................................... 163

ATTACHMENT A – LIST OF RECOMMENDATIONS .......................... 179

ATTACHMENT B – BENCHMARK COMPARISONS .......................... 190

ATTACHMENT C – ESTIMATED FINANCIAL IMPACT OF

ATTACHMENT D – MAP OF MAJOR ECONOMIC DEVELOPMENT

ATTACHMENT E – SUGGESTED PERFORMANCE MEASURES

ATTACHMENT F – TRASH BILLING PROCESS ................................ 211

ATTACHMENT G – PROCUREMENT PROCESS ............................... 212

ATTACHMENT H – HIRING PROCESS ............................................... 213

ATTACHMENT I – PUBLIC WORKS PERFORMANCE MEASURES . 215

ATTACHMENT J – STATUS OF ECON DEV RECOMMENDATIONS

ATTACHMENT K - STATUS OF NEIGHBORHOOD IMPROVEMENT

ATTACHMENT L – ECONOMIC DEVELOPMENT AND

ATTACHMENT M – POLICE BUREAU PERFORMANCE MEASURES

ATTACHMENT N – FIRE BUREAU PERFORMANCE MEASURES ... 244

Table 14: Projected Miscellaneous and Other Revenue ........................... 32

Table 40: 2007 Federal Funds Budget For EDNR................................... 117

The City of Lancaster, Pennsylvania, is a diverse community of 56,348

Unfortunately “this old house” is in disrepair. It’s as if prior owners only

To develop a coherent strategy for dealing with challenges, the City of

Management Partners, Inc. 9

Management Partners was founded in 1994 with a specific mission to

Management Partners has extensive experience in helping improve both

10 Management Partners, Inc.

Over a period of four months, Management Partners conducted an

While it is a review of City operations and recommends improvements in

Every organization, public or private, has opportunities to improve how it

Organizations develop over time – yesterday’s solutions sometimes

Management Partners, Inc. 11

oppose the “position” of those who benefit from existing systems,

City Support Services, Facilities & Equipment

The report outlines a number of recommendations to strengthen the core

12 Management Partners, Inc.

The Bottom Line

Many of the recommendations in the report will bring about efficiency

The following quote from the controversial political leader Machiavelli is

Management Partners, Inc. 13

Management Partners prepared a multi-year projection of revenues and

An assessment helps the Lancaster City Council determine what might be

Management Partners conducted a management audit of the City’s major

The management audit analysis was based on interviews with key

We analyzed operations data to help get a feel for service environment

Management Partners, Inc. 15