18% of Local Governments Require Employees to be Hired from the Community as a Condition for Business Incentives

ICMA economic development survey paints clearer picture of how local governments plan, use, and measure business incentives.

News provided by

ICMA

Dec 18, 2014, 02:00 ET

WASHINGTON, Dec. 18, 2014 /PRNewswire/ -- Nearly 90% of respondents to ICMA's Economic Development Survey reported local revenues and the general fund as the top funding source for economic development. Less than 20% required that a percentage of new employees be hired from within the community as a condition for providing business incentives.

The survey results revealed that among responding jurisdictions:

Respondents to ICMA's Economic Development Survey indicate use of various business incentives.

61% report that the dollar value for business incentives offered to attract new business has remained the same over the last five years
73% conduct a cost-benefit analysis prior to offering business incentives
56% require a performance agreement for business incentives
75% measure the effectiveness of business incentives and
90% of those who measure the effectiveness of business incentives use job creation as a metric.

Additional business incentives used by a majority include:

Infrastructure improvements
Grants
One-stop permit issuance
Zoning/permit assistance.

The city of College Park, Georgia, was recently highlighted by ICMA as exemplifying the successful use of business incentives. The city employs a broad array of benchmarks to determine if the numbers provided in business applications are accurate and then puts rigorous measures of effectiveness, penalties, and detailed agreements in place to ensure the success of the business incentive arrangements. To read how College Park handles business incentives, go here: http://bit.ly/1wigm8p.

ICMA's Economic Development Survey examined planning, goals, barriers, economic development tools, funding, and use of incentives. The survey was mailed in June 2014 to 5,237 city-type and county governments. An online version of the survey was available as well. The response rate was 23% with 1,201 local governments responding. To download a copy of the survey results, go here: http://bit.ly/1AIpItk.

About ICMA
ICMA, the International City/County Management Association, advances professional local government worldwide. The organization's mission is to create excellence in local governance by developing and fostering professional management to build sustainable communities that improve people's lives. ICMA provides member support; publications; data and information; peer and results-oriented assistance; and training and professional development to more than 9,300 appointed city, town, and county leaders and other individuals and organizations throughout the world. The management decisions made by ICMA's members affect millions of individuals living in thousands of communities throughout the world, from small villages and towns to large metropolitan areas.

Photo - http://photos.prnewswire.com/prnh/20141217/165153
Photo - http://photos.prnewswire.com/prnh/20141217/165154-INFO
Logo - http://photos.prnewswire.com/prnh/20120912/MM73678LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/18-of-local-governments-require-employees-to-be-hired-from-the-community-as-a-condition-for-business-incentives-300011975.html

SOURCE ICMA