Report of CAO Survey 2004: Training, Priorities & Succession Planning April 2004 Local Government Services Division

Transcription

1 Report of CAO Survey 2004: Training, Priorities & Succession Planning April Local Government Services Division

2 TABLE OF CONTENTS EXECUTIVE SUMMARY... 1 METHODOLOGY... 4 EMPLOYMENT, EDUCATION AND TRAINING... 6 EMPLOYMENT... 6 Duration as CAO... 6 Anticipated CAO Duration... 7 Future Plans... 8 Employment History... 9 EDUCATION & TRAINING Educational Background Municipal Management Courses Workshops and Seminars Professional Organizations Training Interests CAO RESPONSIBILITIES, MUNICIPAL PRIORITIES AND SUCCESSION PLANNING CAO RESPONSIBILITIES CAOs Allocation of Time CAO Responsibilities Compared to Training Interests Trends in CAOs Allocation of Time Changes in CAO Responsibilities Comparing Changes in CAO Responsibilities: 2004 vs MUNICIPAL PRIORITIES Major Municipal Issues: Past Three Years Major Municipal Issues: Next Three Years Major Municipal Issues: Trends Preparedness to Deal with Issues Dealing with Priority Issues Beneficial Sources of Information Dealing with Public Involvement BUSINESS PLANS Reasons for Not Having a Business Plan Current Business Plan Components SUCCESSION PLANNING Prevalence of Succession Plans Source of Future CAO Replacement Advancement Opportunities Difficult Positions to Fill Positions Left Unfilled... 45

3 EXECUTIVE SUMMARY The following executive summary represents the most salient findings gleaned from questions related to training, priorities and succession planning via an on-line survey conducted among 273 CAOs of Alberta municipalities between February 9 th and March 15 th, The predicted exodus of CAOs in the next six years has increased. Almost one-half (44%) of CAOs anticipate they will leave their current position as CAO within six years, increased 10-points from 34% in One-half of these CAOs plan to retire, while others will aim to work in private sector roles, as CAOs for other municipalities, or outside of municipal government in different public sector positions. CAOs are making use of workshops and seminars. Overall, CAOs are more likely to have participated in workshops or seminars than in municipal management courses within the past three years. Currently, almost threequarters of CAOs have embarked on training provided by Municipal Affairs representing the most common provider of educational workshops and seminars available to CAOs. In addition, more than one-half of CAOs have turned to the AUMA and LGAA to supplement their education and training. Further training is desired in specific areas. More than six-in-ten CAOs express an interest in receiving training in strategic thinking and planning. Further, slightly more than one-half of CAOs indicate an interest to receive training to enhance their skills in drafting by-laws and policy. Importantly, more than one-half of CAOs are also interested in receiving training to improve their knowledge and understanding of municipal roles and responsibilities. In addition, a similar proportion of CAOs are interested in training to improve their financial management and budgeting skills, as well as their knowledge of the Municipal Government Act and/or other legislation. CAO responsibilities are escalating. CAOs report experiencing a great deal of increased responsibility in almost all aspects of their role, particularly with respect to budgeting and strategic planning one of the most coveted areas of desired training. Interactions with council have also notably increased in recent years. 1

4 CAOs need to discuss urgent matters with trusted informed sources. When CAOs are faced with responsibilities and issues they have not yet tackled, they wish to discuss these matters with another informed person rather than using reference materials (Internet, Menet, publications). Phoning colleagues in other municipalities remains the most beneficial source of information for CAOs. However, CAOs today are less likely than they were in 2001 to identify Municipal Advisors at Municipal Affairs as the most beneficial source of information to assist them with time-sensitive issues. Nonetheless, CAOs consider Municipal Affairs as one of the main sources of information they would turn to in crisis. CAOs are not well prepared to deal with major upcoming issues. The major municipal issues CAOs will face over the next three years focus primarily on keeping pace with infrastructure and services (roads, building, water, sewer). Planning and development issues related to economic growth strategies or real estate developments, and addressing growth and sustainability issues are also key issues facing CAOs in upcoming years. Further, inter-municipal relations and human resource staffing issues are now major issues in some municipalities. A minority of municipalities, however, reports being prepared to deal with these concerns. CAOs express a need for financial assistance, improved cooperation with other government bodies, additional training or advisory services, strategic planning, and human resource management planning to assist them with addressing these challenges. Citizen engagement in local municipal issues is weak. Dealing with the public is one of the most time-consuming responsibilities CAOs undertake. However, CAOs indicate that the public is not overly engaged in municipal issues and is not very well informed about local municipal issues. Even so, less than one-half of municipalities have been actively introducing new efforts to improve citizen participation. Most CAOs cannot find the time or encouragement to develop a business plan. More than one-half of CAOs do not currently have a business plan, and this has not changed significantly from measures taken three years ago. In general, the business planning process is not perceived as complicated, but is prohibited by a lack of human resources and/or support from council. 2

5 Municipalities are not prepared to deal with the impending exodus of CAOs. Although 44% of CAOs report they will leave their post within the next six years, just 6% report having a formal succession plan in place. Poaching will be a strategy many municipalities will adopt, targeting CAOs and other managers to succeed them in their role. However, the homegrown approach to internally develop future CAOs is now a more prominent strategy to succession planning than it has been in the past. Staffing issues are prevalent among two-thirds of municipalities. The majority of CAOs have had difficulty in filling certain types of positions within the past three years. These positions typically relate to public works (operators, labourers, foremen, administrative positions (office support, clerks, secretaries), building and development positions (planners, assessors, safety code officers), and finance and accounting posts (treasurers, accountants). While many of these positions were eventually filled, more than one-in-ten Alberta CAOs were unable to fill specific vacant positions within their municipal administration. * * * Please refer to the complete report for more detailed information. 3

6 METHODOLOGY Alberta Municipal Affairs conducts quantitative research with its municipal administrators in its effort to design and maintain services to better meet stakeholders needs. One specific activity carried out in 2001 by Municipal Affairs was the design and implementation of a survey among Chief Administrative Officers (CAOs) in Alberta. As training and human resource planning needs continue to evolve over time, another survey was conducted with CAOs in February The survey focused on CAO employment, education and training, municipal planning and priorities, CAO responsibilities, succession planning, and ministry programs and services. This report contains the findings from the sections pertaining to employment, education, training, priorities, responsibilities and succession planning. A separate report contains the findings related to ministry programs and services. Alberta Municipal Affairs and Ipsos-Reid worked in close conjunction to finalize the CAO survey instrument. In order to achieve a high response rate, a mixed methodology was applied to the study. The primary method of data collection was an on-line survey, with telephone and self-complete versions available as an alternative method for participants to provide their input. The on-line study was pre-tested by CAOs who provided advice on the survey content and flow. Prior to the launch of the study, CAOs were sent an introductory letter from Assistant Deputy Minister, Brian Quickfall, inviting them to participate in the study. The study was fielded for five weeks and was supplemented by two reminders, two deadline extensions, and phone reminders. Timing of Survey Reponses 100% 90% Last day for phone reminders Study out of field 80% 70% 60% 50% Daily phone reminders begin Original deadline Feb. 27 extended to Mar. 4 Deadline extended from Mar. 4 to Mar % 30% 20% 10% 0% Letter from ADM sent to CAOs Project launch invitations sent to CAOs January 19 February 9 February 16 February 23 March 1 March 8 March 15 4

7 Ipsos-Reid was provided with the addresses of 321 Alberta CAOs, from which a total of 273 (85%) CAOs participated in the study. Responses among the various types of municipalities coincide closely with the sample proportions provided. Sampling Statistics Type of Municipality Universe Responses Response Rate Margin of Error Total Urban % 2.54% City % 0.00% Town % 3.13% Village % 4.72% Total Rural % 4.19% Municipal District % 4.33% Improvement District % 0.00% Total Other % 13.63% Summer Village % 17.19% Specialized Municipality % 0.00% Special Area % 0.00% As an incentive for CAOs to participate in the study, Alberta Municipal Affairs has agreed to share the results of this study with all respondents, providing them with valuable information about the collective priorities and perspectives of Alberta s municipal managers. 5

8 EMPLOYMENT, EDUCATION AND TRAINING To better understand the current demographics of Alberta s Chief Administrative Officers and to allow for a more detailed and meaningful analysis of the survey results, respondents were initially asked a series of basic questions relating to their employment experience, education, training, and future career plans. Employment In summary, the predicted exodus of CAOs in the next six years has increased significantly over the past three years (44% increased from 34% in 2001) and one-half of these CAOs plan to retire. Duration as CAO Currently, the proportion of Alberta Chief Administrative Officers who have been employed in their present position for less than seven years has remained virtually unchanged since 2001 (up 1% from 42% to a current 43%). As for other CAOs: 14% have held their position for seven to ten years; 14% for 11 to 15 years; and The remaining respondents (25%) have been CAOs in an Alberta municipality for more than 15 years. Towns and municipal districts currently hold the largest proportion of long-term CAOs with one-third who have been employed for over 15 years. Duration as CAO q1. How long have you been a CAO in an Alberta municipality? 100% 2004 (n=273) 2001 (n=273) 80% 60% 40% 20% 10% 10% 19% 15% 17% 14% 15% 17% 16% 14% 28% 25% 0% Less than One Year 1-3 Years 4-6 Years 7-10 Years Years More than 15 Years % 29% 42% 58% 75% 100% % 25% 42% 59% 72% 100% 6

9 Anticipated CAO Duration At the same time, nearly one-half (44%) of CAOs anticipate they will leave their current position as CAO within six years, up 10 percentage points since This large increase in CAOs potentially resigning from their current position in the near future indicates greater urgency is required with regards to succession planning, particularly since only nine CAOs say their municipality currently has a succession plan. On the other hand, 47% of respondents say they will remain working as CAO in an Alberta municipality for seven years or more. The remaining respondents (10%) express uncertainty regarding how many more years they anticipate working as a Chief Administrative Officer in an Alberta municipality. Those more likely to leave within the next six years include city-based CAOs (60%) and CAOs of summer villages (54%). On the other hand, those more likely to stay in their position as CAO in an Alberta municipality for 11 or more years tend to be rural-based (34%) versus urban-based (20%). Finally, Chief Administrative Officers of villages express the most uncertainty among all respondents regarding their anticipated duration in their role as CAO (20% are unsure). Anticipated CAO Duration (2001 vs. 2004) q2. How many more years do you anticipate working as a CAO in an Alberta municipality? 100% 2004 (n=273) 2001 (n=273) 80% 60% 40% 20% 19% 11% 23% 21% 23% 25% 23% 12% 11% 18% 0% 2% 2% Less than One Year 1-3 Years 4-6 Years 7-10 Years Years More than 15 Years % 21% 44% 67% 79% 90% % 13% 34% 60% 82% 100% 7

10 Future Plans When asked what they plan on doing following their employment as CAO with their present employers, one-half (50%) of respondents say they will retire. An additional 19% say they will work outside of municipal government in another private sector role, 3% say they will work outside of municipal government in another public sector role, and 3% plan on providing consulting services. In total, 20% of CAOs plan to remain in local government following their employment as CAO with their present employer, with 14% who plan to work as a CAO for another municipality, and 6% who plan to work in another role for an Alberta municipality. Summer villages host the largest proportion of CAOs who plan on retiring following their current position (80%) whereas CAOs of cities are more likely to follow other pursuits as only 20% say they will retire following their employment with their present employer. Future Plans q3. And what do you intend to do following your employment as CAO with your present employer? Retire 50% % Retiring by Municipality Work outside of municipal government in another private sector role Work as CAO for another municipality 19% 14% Municipality % Retiring Summer Village 80% Work in another role for an Alberta municipality 6% Other 57% Work outside of municipal government in another public sector role 3% Town 51% Village 51% Consulting 3% Municipal District 47% Other 2% City 20% Don t know/ Not stated 2% Base: All respondents (n=273) 8

11 Employment History Prior to their current position as CAO, the proportion of Alberta Chief Administrative Officers that were previously employed from within the municipality has increased six percentage points from 27% in 2001 to a current 33%. Cities and municipal districts in particular tend to employ from within the municipality (60% and 53%, respectively). On the other hand, CAOs previously employed in another capacity with another Alberta municipality has decreased six percentage points to a current 8%, indicating a possible shift towards the tendency to employ from within the municipality. Previous to their current employment, the remaining CAOs worked with a private sector employer (unchanged from 19% in 2001), as CAO of another Alberta municipality (18% currently compared to 20% in 2001), with a non-municipal public-sector employer (15% in 2001 and 14% in 2004), and with another municipality outside of Alberta (currently 6% compared to 5% in 2001). Positions Held Prior to Current CAO Post Which one of the following best describes the most recent job you held prior to your current position as CAO? Another position within the municipality With a private-sector employer CAO of another Alberta municipality With a non-municipal public-sector employer In another capacity with another Alberta municipality With another municipality outside of Alberta City n=15* Town n=99 Vill n= Sum Vill n=15* MD n=57 TOTAL n=273 n=272 60% 31% 18% 13% 53% 33% 27% - 10% 41% 53% 2% 19% 19% 7% 28% 4% - 25% 18% 20% % Change 7% 13% 20% 27% 2% 14% 15% -1 7% 8% 9% 7% 11% 8% 14% -6 7% 9% 4% - 7% 6% 5% +1 Other 13% - 5% - 2% 3% 0% +3 * Very small sample size

12 Education & Training In general, CAOs are making the greatest use of Municipal Affairs workshops and seminars, as well as training provided by both the AUMA and LGAA, in comparison to other training opportunities available. However, further training is desired in specific areas. Educational Background Levels of education vary significantly among Alberta Chief Administrative Officers. Currently, 10% of respondents have at most a high school education, 48% have college or technical training, 14% have at least some university training, and 28% have a university or post-graduate degree. Level of Education 2004 (n=273) High School or less 10% College/Technical 48% Some University 14% University/Post-Grad 28% Municipal Management Courses Survey respondents were provided with a list of municipal management courses and were asked if they had attended any within the past three years. Overall, six-in-ten (59%) CAOs state they have recently participated in at least one municipal course. The mean average number of courses taken among all respondents is 0.8, with municipal districts having taken the most courses in the past three years (mean average 1.3). The most popular course among respondents is the Municipal Administrators Leadership Workshop, a two-day course offered in Kananaskis. Over three-in-ten (35%) CAOs say they have recently attended this course, however, rural-based respondents are twice as likely than urban respondents to have participated in this workshop (61% compared to 30%). Other courses recently pursued include the National Advanced Certificate in Local Authority Administration (NACLAA) Level I/Local Government Certificate Program (17%) and NACLAA Level II/Senior Executive Fellows Program (10%). Interestingly, ruralbased CAOs are much more likely than their colleagues in other parts of Alberta to have participated in Level II of the on-line program, while no CAOs based in the cities have participated in either Levels of the NACLAA programs within the past three years. 10

13 Municipal Management Courses q6. Which of the following municipal management courses have you taken within the past three years? Multiple Responses Municipal Administrators Leadership Workshop 35% NACLAA Level I/Local Government Certificate Program 17% NACLAA Level II/Senior Executive Fellows Program 10% Muniversity Banff Centre Leadership Development Program 7% 7% Mean Average: Municipal Management courses taken = 0.8 Royal Roads University's Local Government Leadership 3% Other 6% None 40% Base: All respondents (n=273) Although attendance of only three days of instruction are required to receive a program certificate from the University of Alberta, Muniversity is offered over a three year period through various locations and has attracted fewer Chief Administrative Officers (7%) within the past three years. Recent attendees of this certification program are primarily CAOs of rural municipalities (20% compared to 4% of urban CAOs), and in particular, CAOs of municipal districts (21%). Interestingly, Muniversity is only offered to senior level municipal officers, yet the likelihood of having recently attended this program decreases as CAO tenure increases. The Banff Centre Leadership Development Program offers participants a variety of weeklong seminars available at different times throughout the year, and similar to Muniversity, within the past three years has attracted participation among only 7% of Alberta CAOs. Other municipal management courses recently attended by CAOs include the weeklong Royal Roads University s Local Government Leadership program (3%) and a variety of other courses named to a much lesser degree. 11

14 Comparing Municipal Course Attendance: 2004 vs Although numerous opportunities exist for Alberta CAOs to participate in municipal management courses throughout the year, the proportion of CAOs that have not taken any courses in the past three years has increased since Currently, a significant four-in-ten (40%) CAOs have not attended any courses within the past three years. In particular, twice as many city CAOs say they have not recently taken any municipal management courses compared to a few years ago (40% in 2004, 21% in 2001). Similarly, as highlighted in the chart below, fewer CAOs in general have taken management courses compared to 2001 (with the exception of a slightly higher proportion of municipal district CAOs who have taken more courses in 2004 than in 2001). Comparing Municipal Course Attendance: 2004 vs Type of Municipality Have NOT taken any municipal management courses in the past three years Total 2004: 40% 2004 (n=273) 2001 (n=273) % Change City 40% 21% +19 Town 36% 21% +15 Village 55% 42% +13 Summer Village 47% 25% +22 Municipal District 23% 28% -5 Other 57% 10% +47 A look at socio-demographic profiles among respondents who have not attended municipal courses in the past three years reveals the following: CAOs in villages are less likely than are their colleagues in other types of municipalities to have recently attended any municipal management courses; Rural-based CAOs are significantly more likely than are urban-based CAOs to have taken any municipal management courses in the past three years; and Tenure as a CAO does not affect the likelihood of recent participation in municipal management courses. 12

15 Workshops and Seminars With the large number of organizations that host workshops and seminars, it is encouraging that 90% of all respondents report they have attended at least one workshop or seminar in the past three years. The mean average number of workshops/seminars that CAOs have attended is 3.1, indicating that CAOs are more likely to have attended workshops and seminars than municipal management courses. On average, urban-based Chief Administrative Officers have attended fewer workshops and seminars in the past three years than have their rural-based colleagues (mean average 3.0 compared to 3.8, respectively). In particular, CAOs of villages (mean average 2.2) and summer villages (mean average 1.6) have attended fewer workshops/seminars than have CAOs of other municipalities. Currently, seven-in-ten (73%) respondents report they have attended workshops and seminars organized by Alberta Municipal Affairs. Further analysis of respondents who have recently attended workshops organized by Alberta Municipal Affairs reveals that CAOs of towns (84%) and municipal districts (79%) are more likely than are their colleagues in other municipalities to have recently attended Municipal Affairs workshops and seminars. Workshops and Seminars q7. Please indicate if you have attended any workshops or seminars arranged by the following organizations within the past three years. Multiple Responses Total Mean Average: Workshops or seminars attended = 3.1 Alberta Municipal Affairs AUMA LGAA AAMDC SLGM AARMA FCM CAMA Muniversity GFOA ICMA None 17% 22% 8% 18% 4% 14% 22% 14% 10% 7% 20% 9% 5% 6% 2% 11% 3% 46% 73% 78% 79% 64% 85% 75% Urban Rural 73% 64% 53% 25% 24% 20% 16% 13% 9% 8% 4% 10% Base: All respondents (n=273) 13

16 As for CAOs of urban municipalities, 79% report they have recently attended workshops/seminars arranged by AUMA, an organization that acts as a voice and advocate specifically for urban municipalities. Participation is also high among urban CAOs for LGAA workshops/seminars (64%), an organization that acts as a representative/spokesperson for its members to the Provincial Government and as a liaison with other agencies. Among CAOs of rural municipalities, 85% report attending workshops and seminars arranged by AAMDC, and 75% have attended workshops and seminars arranged by AARMA (20%). Further, 18% of CAOs in urban municipalities and 46% of CAOs in rural municipalities report having attended workshops and seminars put on by the SLGM. Other workshops and seminars that CAOs have attended include those organized by FCM (16%) and CAMA (13%). City CAOs are most likely to attend these workshops with 53% who say they have participated in FCM workshops and 67% who have attended CAMA workshops. CAOs of cities who are responsible for larger municipalities are possibly attracted to FCM and CAMA s focus on issues that are of a national scope. Interestingly, survey participants who have attended FCM and CAMA workshops/seminars are significantly more likely than are their colleagues who have not attended these workshops to have business and succession plans. A variety of other organizations were identified by respondents, however to a much lesser degree. Conversely, 10% of survey respondents say they have not attended any of the noted workshops or seminars in the past three years. Analyses across socio-demographic measurements reveal that: CAOs of villages and summer villages are much less likely than are CAOs of other municipalities to have attended any workshops/seminars in the past three years; The proportion of respondents who have not recently attended workshops/seminars decreases as CAO tenure increases; and CAOs who have attended workshops or seminars are also more likely to have attended municipal management courses, and are more likely to be affiliated with professional organizations apparently more engaged in education and networking overall. 14

17 Professional Organizations Although a large number of professional organizations currently exist, the mean average number of professional organizations that CAOs are members of is 1.3, which indicates that although CAOs attend an average of 3.1 workshops/seminars arranged by these organizations, they are not necessarily interested in being members as well. CAOs of municipal districts however, tend to have more membership affiliations with professional organizations (mean average of 1.8) than do CAOs of any other municipalities. Overall, 77% of CAOs reports being members of professional organizations while 23% are not. CAOs of urban municipalities are most commonly members of the Local Government Administration Association (LGAA) (66%), followed by the SLGM (16%), CAMA (13%) and GFOA (9%). Alternatively, CAOs of rural municipalities are more commonly members of AARMA (88%), followed by the SLGM (39%). Rural municipalities are more involved with the SLGM on both a workshop/seminar source as well as on a membership basis. Further, 14% of CAOs in rural municipalities are members of CAMA similar to the proportion of urban municipalities who belong to this professional organization. Few respondents indicated being members of other professional organizations such as the ICMA, IPAC, and CMA. Worth noting is that 27% of CAOs of urban municipalities reports NOT being members of any professional organizations versus just 2% among CAOs of rural municipalities. Professional Organizations q8. Are you currently a member of any of the following professional organizations? Multiple Responses Total LGAA 25% 66% 56% AARMA 2% 88% 21% SLGM 16% 39% 21% Mean Average: Membership in professional organizations = 1.3 CAMA GFOA ICMA 13% 14% 9% 3% 3% 0% 13% 7% 2% IPAC (Institute of Public Administration of Canada) 1% 0% 1% CMA Other 1% 0% 5% 15% Urban Rural 1% 7% None 2% 27% 23% Base: All respondents (n=273) 15

18 Training Interests To better understand the needs and interests of Alberta Chief Administrative Officers, survey respondents were asked to identify their organization s interest in a variety of potential areas of training. On a scale of one to five, CAO interest in any particular area of training appears to be moderate with mean average ranges between 3.0 and 3.7. Currently, CAOs express the greatest interest in receiving training in strategic thinking and planning skills (63%). CAOs of cities are particularly interested in receiving training in this area (80%). Further, over one-half of respondents also express interest in receiving training related to skills related to: Drafting by-laws and policy (57%); Municipal roles and responsibilities (56%); Financial management and budgeting skills (55%); and Knowledge of the Municipal Government Act/other legislation (52%). Training Interests q9. Please indicate your organization s interest in each of the following potential areas of training by using the scale of 1 to 5 where 1 means not at all interested and 5 means very interested. % Interested Strategic thinking and planning skills 40% 23% 63% Skills in drafting by-laws and policy 34% 23% 57% Municipal roles and responsibilities 33% 23% 56% Financial management and budgeting skills 31% 24% 55% Knowledge of the Municipal Government Act/other legislation 23% 28% 52%* Human resource management practices 35% 14% 49% Somewhat Interested Very Interested Base: All respondents (n=273) *Rounding Interestingly, 56% of respondents would like to receive training on municipal roles and responsibilities, indicating a possible need to clarify expectations of them as CAO of an Alberta municipality. Analysis of socio-demographic attributes reveals that CAOs of cities (73%) are much more likely than are their colleagues in other municipalities to be interested in receiving training on municipal roles and responsibilities. 16

19 Slightly less than one-half of CAOs are also interested in receiving training in human resource management (49%), interpersonal communication skills with staff and council (47%), and project management skills (42%). Fewer CAOs are interested in public/media relations skills (37%), mediation and negotiation skills (37%), and written communication skills including correspondence and reports (35%). Other areas of training identified by some respondents include records management, stress management, risk management, and health and safety codes to name a few. Training Interests Continued q9. Please indicate your organization s interest in each of the following potential areas of training by using the scale of 1 to 5 where 1 means not at all interested and 5 means very interested. % Interested Interpersonal communication skills (with staff and council) 26% 22% 47%* Project Management skills 29% 13 42% Public/media relations skills 26% 11 37% Mediation and negotiation skills 25% 12 37% Written communication skills (correspondence and reports) 26% 8 35%* Somewhat Interested Very Interested Base: All respondents (n=273) *Rounding CAOs who express interest in any area of training are significantly more likely to have taken municipal management courses and workshops or seminars in the past three years. CAOs are possibly seeking to expand their knowledge in these various areas through the courses and seminars they attend. CAOs in rural municipalities are more likely than are those in urban municipalities to be interested in training related to interpersonal communications skills (63% vs. 45%, respectively). Overall, CAOs in villages are least interested in these training areas. 17

20 CAO RESPONSIBILITIES, MUNICIPAL PRIORITIES AND SUCCESSION PLANNING Participating CAOs were asked a series of questions related to their allocation of time spent on their various responsibilities, the major issues facing their municipalities, beneficial sources of information, as well as questions pertaining to business planning and succession planning. CAO Responsibilities CAOs report experiencing a great deal of increased responsibilities in almost all of their roles, particularly with respect to budgeting and strategic planning one of the most coveted areas of desired training. Interactions with council are also escalating. CAOs Allocation of Time CAO respondents were asked to indicate the proportion of time out of 100% they spent in 10 specific categories. On average, CAOs are spending the greatest proportion of their time on administrative tasks (18.6%), followed by interacting with council (14.6%) and the public (12.3%). Budgeting and strategic planning processes take 10.6% of CAOs time, and next, managing and dealing with staff issues (9.3%). CAO Responsibilities q11. What percentage of your time did you spend in each of the following areas over the last year? Other 1.0% Summary of Means Drafting by-laws and policy 4.9% Administration 18.6% Planning/ development 6.9% Interacting with council 14.6% Accounting 7.0% Finance 7.1% Interacting with the public 12.3% Managing services & programs 7.5% Budgeting/ Management Strategic Planning of staff and 10.6% dealing with staff issues 9.3% Base: All respondents (n=273) 18

21 CAOs allocate less than 10% of their time to the remaining tasks: managing services and programs (7.5%); finance (7.1%); accounting (7.0%); planning/development (6.9%); and, drafting by-laws and policy (4.9%). Further, CAOs indicate that one percent of their time was allocated to other areas including inter-municipal/intergovernmental interaction and leadership issues. Urban municipalities are significantly more likely than are rural municipalities to spend time interacting with the public, and in finance and accounting, especially in villages. Rural municipalities are significantly more likely than are urban municipalities to spend time dealing with staff issues and interacting with council, particularly in municipal districts. CAOs who report having a business plan are significantly more likely than are those who do not to be spending time in budgeting and strategic planning. 19

22 CAO Responsibilities Compared to Training Interests When correlating these findings to CAOs level of interest in specific areas of training, developing skills to draft by-laws and policy is the second most desired area of training. Yet, CAOs are spending the least amount of time in this area. Therefore, CAOs may not be spending a great deal of time drafting by-laws and policy, however, when they do, they may not be fully equipped with the skills to complete the task properly. Further, CAOs indicate spending more than 10% of their time on budgeting and strategic planning issues. Strategic thinking and planning is the most desired area of training among CAOs, and financial management and budgeting skills is the fourth most desired area of training. The following chart shows the relative level of interest in various areas of training assessed (highlighting the types of municipalities most interested in these training areas), along with time CAOs spend in each area. Comparing Training Interests to Responsibilities % Interested Training Interest Related CAO Responsibility % of Time 63% Strategic thinking & planning Budgeting/strategic planning 10.6% 55% skills (cities, towns, MDs) Finance 7.1% Financial management and Accounting 7.0% budgeting skills 57% Skills in drafting by-laws and policy Drafting by-laws and policy 4.9% 56% Municipal roles and responsibilities (cities) 52% Knowledge of the MGA/other legislation (cities) 42% Project management skills 35% Written communication skills - correspondence & reports Managing services & programs Administration 7.5% 18.6% 49% HR management practices (cities, towns, MDs) Management of staff/dealing with staff issues 9.3% Interpersonal communication 47% skills with staff and council (MDs) 37% Public/media relations skills (cities, towns, MDs) 37% Mediation/negotiation skills (cities, towns, MDs) Interacting with council Interacting with the public 14.6% 12.3% 20

23 Trends in CAOs Allocation of Time When comparing how CAOs allocated their time to these tasks three years ago (2001 survey), no significant shifts have occurred. The one differentiating factor involves including planning and development as a specific line item in the 2004 survey, wherein this task area was not included on its own in the previous survey wave. Thus, insignificant change has taken place in all other areas, whereas close to 7% of CAOs time is now being identified as belonging to tasks related to planning and development. Trends in CAOs Allocation of Time: 2004 vs Task Area % Change Administration 18.6% 18.0% +0.6 Interacting with council 14.6% 15.8% -1.2 Interacting with the public 12.3% 14.2% -1.9 Budgeting/strategic planning 10.6% 10.2% +0.4 Managing/dealing with staff issues 9.3% 10.8% -1.5 Managing services and programs 7.5% 8.7% -1.2 Finance 7.1% 8.1% -1.0 Accounting 7.0% 7.8% -0.8 Planning/development 6.9% n/a (+6.9) Drafting by-laws and policy 4.9% 5.3% -0.4 Other 1.0% 2.0%

24 Changes in CAO Responsibilities When asked to indicate whether the amount of time CAOs devote to various areas has decreased, stayed the same, or increased over the past three years, results reveal that CAOs have experienced a great deal of increased responsibilities in almost all of their roles. One of the biggest increases in CAO responsibilities lies with budgeting and strategic planning (44% increased vs. 8% decreased for a total net increase of +36%). It is not surprising to see this area as one of the most coveted areas of training given the level of increased responsibilities CAOs feel they face with these skills. Similarly, interactions with council have increased 39%, yet only decreased 3% (net increase of 36%). Administrative tasks the area wherein CAOs spend the greatest proportion of their time have increased 37% while only decreasing 8% (net increase of 29%). Interactions with the public have increased 33% and decreased 5% (net increase of 28%), albeit interactions with council have increased to a greater extent than have interactions with the public (net increases of 36% vs. 28%, respectively). CAOs also report having experienced increases in their planning and development roles (34% increased vs. 10% decreased for a net total of 24% increased). Changes in CAO Responsibilities q12. Please indicate whether the amount of time you devote to each of the following areas has decreased, stayed about the same, or increased over the past three years (or since you assumed the position of CAO). Decreased Stayed the Same Increased 8% 8% Budgeting/ Strategic Planning 2004: 47% 2001: 49% 44% 43% 3% 6% Interacting with Council 2004: 58% 2001: 54% 39% 40% 2004 (n=273) 2001 (n= Varies) 8% 7% Administration 2004: 55% 2001: 59% 37% 34% 10% - Planning/ Development 2004: 56% - 34% 5% 10% Interacting with the Public 2004: 62% 2001: 52% 33% 38% Base: All respondents (n=273) 22

25 Subsequently, CAOs believe their responsibilities related to managing and dealing with staff issues have increased (31%) more than they have decreased (10%), for a net total of 21% increase in this area. This increase is particularly prominent in towns (net increase of 37%) and municipal districts (net increase of 35%). More than one-quarter (27%) of CAOs report that the amount of time they have had to devote to managing services and programs has increased, compared to 13% saying they have decreased the amount of time they spend in this area (net total of 14% increase). Further, the amount of time spent in finance (net 2% increase) or in drafting by-laws and policy (net 4% increase) have remained quite constant over the past three years. Finally, the only area in which CAOs indicate spending less time is in the accounting arena (15% increased vs. 25% decreased for a net total of 10%). Changes in CAO Responsibilities Continued q12. Please indicate whether the amount of time you devote to each of the following areas has decreased, stayed about the same, or increased over the past three years (or since you assumed the position of CAO). Decreased Stayed the Same Increased 10% 11% Management of Staff/ Dealing with Staff Issues 2004: 59% 2001: 52% 31% 37% 2004 (n=273) 2001 (n= Varies) 13% 12% 15% 21% Managing Services and Programs 2004: 59% 2001: 59% Finance 2004: 68% 2001: 62% 27% 29% 17% 17% 13% 19% Drafting By-laws and Policy 2004: 70% 2001: 58% 17% 23% 25% 32% Accounting 2004: 60% 2001: 55% 15% 13% Base: All respondents (n=273) 23

26 Comparing Changes in CAO Responsibilities: 2004 vs When comparing the net increased time CAOs are spending in the various task areas evaluated, little change has occurred over the past three years. Planning and development is a new category to the 2004 survey and yields a net increase of 24%. While dealing with staff issues remains an area where CAOs are spending an increased amount of time, the extent of this increase has dropped 5-points since Further, CAOs report spending roughly the same amount of time in finance over the past few years; however, this trend has increased 6-points since Finally, CAOs indicate spending less time dealing with accounting issues over the past few years, yet this may be increasing as the trends indicate a 9-point increase in the former downward trend. Net Increase (% Increased - % Decreased) Task Area % Change Budgeting/strategic planning +36% +35% +1.0 Interacting with council +36% +34% +2.0 Administration +29% +27% +2.0 Interacting with the public +28% +28% 0.0 Planning/development +24% n/a - Managing/dealing with staff issues +21% +26% -5.0 Managing services/programs +14% +17% -3.0 Finance +2% -4% +6.0 Drafting by-laws/policy +4% +4% 0.0 Accounting -10% -19%

27 Municipal Priorities The major municipal issues CAOs will face over the next three years focus primarily on keeping pace with infrastructure and services (roads, building, water, sewer). Planning and development issues related to economic growth strategies or real estate developments, and addressing growth and sustainability issues are also key issues facing CAOs in upcoming years. Further, inter-municipal relations and human resource staffing issues are now major issues in some municipalities. A minority of municipalities, however, reports being prepared to deal with these concerns. CAOs express a need for financial assistance, improved cooperation with other government bodies, additional training or advisory services, strategic planning, and human resource planning to assist them with addressing these challenges. Major Municipal Issues: Past Three Years The most common issue identified for which municipalities have focused most attention relates to infrastructure and services (71% of all mentions). Specifically, six-in-ten (61%) CAOs point to issues such as infrastructure maintenance and renewal (roads, buildings, water, sewer). As well, less than one-in-ten CAOs mention other community services including emergency response services, including policing, ambulance, fire (9%), by-law development and enforcement (9%), parks and recreation (7%), and structures such as hospitals, educational institutions or affordable housing (3%). Major Issues Past 3 Years -Main Themes - q14. Other than revenue and taxation, within the past three years, what were the three main issues that your municipality focused most of its attention on? Multiple Responses Infrastructure and Services 71% Planning General 44% Inter-Municipal Relations 21% HR 21% Growth and Sustainability 17% Strategic Planning 16% Public Responsiveness 10% Miscellaneous Issues 19% Other 7% Base: All respondents (n=273) 25

28 Next, CAOs report having had to deal with planning issues a great deal over the past three years (44% of all mentions). Here, CAOs either generally mention planning or development issues (21%), or point to economic strategies, development and diversification (17%), long-term planning and development (4%), subdivisions (4%), land development management (2%), or general planning issues (2%). Inter-municipal relations is another main issue that CAOs have had to address over the past few years (21% of all mentions). Specific descriptions of this issue largely deal with inter-municipal relations and cooperation such as the sharing of services and agreements (15%). Also, certain CAOs point to annexation (2%), amalgamation in general (2%), or dissolution studies (1%). Similar to the proportion of CAOs facing amalgamation issues, 21% of CAOs mention having placed the most effort on human resource issues. These efforts have focused on staffing and succession planning (14%), relations and negotiations with council and unions regarding staff issues (3%), and organizational changes (3%). Subsequently, 17% of CAOs say their municipalities have focused most of their attention on issues related to growth and sustainability. A similar proportion of CAOs (16%) reports having focused on strategic planning issues over the past three years, including general strategic planning (8%), budgets (4%), and grants and funding (4%). Finally, 10% of CAOs point to public responsiveness as an area they have focused on the most, including public relations (5%) and dealing with public on service delivery levels (5%). Other miscellaneous issues which CAOs report to have focused on during the past few years are each mentioned 5% or less in total, such as: Environmental issues (5%); Capital projects (4%); Agricultural issues BSE (3%); Government downloading/regulations (2%); and GIS/GPS/technology advancements (2%). 26

29 Certain differences emerge with respect to issues among types of municipalities, as follows: CAOs of villages are significantly more likely to have focused on community services over the past three years; Those in municipal districts and towns are notably more likely to have dealt with amalgamation issues; CAOs of towns are significantly more likely to have focused on human resource issues in the recent past; and CAOs of cities are notably more likely to have been dealing with strategic planning issues over the past three years. Major Municipal Issues: Next Three Years Moving from the recent past to the near future, CAOs were also asked to identify the major issues they feel their municipalities will be focusing on for the next three years, other than revenue and taxation. The theme of infrastructure and services retains its first-place ranking as the issue most CAOs will be facing (61%). Next, 33% of CAOs feel their municipality will be focusing on planning issues, followed by 19% pointing to growth and sustainability. As well, 17% will focus on inter-municipal relations, 15% on human resource issues, 10% on strategic planning issues; and 7% on public responsiveness issues, among others. Major Issues Next 3 Years - Main Themes - q15. Over the next three years, what do you feel are the major issues that your municipality will be focusing on, other than revenue and taxation? Multiple Responses Infrastructure and Services 61% Planning General 33% Growth and Sustainability Inter-Municipal Relations HR Strategic Planning Public Responsiveness Miscellaneous Issues Other Don t Know/ Not Stated 19% 17% 15% 10% 7% 14% 6% 5% Base: All respondents (n=273) 27

30 Major Municipal Issues: Trends Comparing recent trends to projected future trends, it appears that the major municipal issues facing CAOs will decrease somewhat in intensity. For example, 71% of CAOs indicated their municipalities had been focused on infrastructure and services within the past three years, yet fewer (61%) said they would focus on this issue over the next three years. Nonetheless, infrastructure and services remains the most salient issue facing CAOs in both the recent past and the near future. The only increasing trend relates to CAOs reporting to spend slightly more time in future focused on growth and sustainability issues than in the recent past. Municipal Issues Trends Task Area Past 3 Yrs Next 3 Yrs % Change (Past Next) Infrastructure and services 71% 61% Planning 44% 33% Inter-municipal relations 21% 17% -4.0 Human resource issues 21% 15% -6.0 Growth and sustainability 17% 19% +2.0 Strategic planning 16% 10% -6.0 Public responsiveness 10% 7%

31 Preparedness to Deal with Issues Municipalities are not well prepared to deal with major issues facing them today. Less than four-in-ten (38%) CAOs indicate they are either very (6%) or somewhat (32%) prepared to deal with the priority issues facing their municipalities. In contrast, 13% of CAOs indicate they are not prepared. Of note is that the plurality of CAOs (49%) are neutral on this matter, rating their level of preparedness as a 3 out of 5 denoting that some level of preparedness exists, but a relative weak one. No significant differences emerge in levels of preparedness among the types of municipalities in Alberta. Preparedness to Deal with Issues q16. In general, how prepared is your municipality to deal with these priority issues? Please use a scale of 1 to 5 where 1 means not at all prepared and 5 means very prepared. Not Prepared (1,2) Neutral (3) Prepared (4,5) 13% 12 TOTAL (49%) 32% 6 38% 6% 6 Public Responsiveness (50%) 44% 44% 9% 9 Inter-Municipal Relations (37%) 37% 7 43%* 10% 9 Planning General (49%) 34% 7 41% 18% 18% Strategic Planning (43%) 36% 4 39%* 14% 13 Infrastructure and Services (48%) 31% 7 38% 18% 16% Growth and Sustainability (47%) 29% 6 35% 15% 15% HR (55%) 28% 3 30%* Not very Prepared Not at all Prepared Somewhat Prepared Very Prepared Base: All respondents (n=273) *Rounding CAOs are more likely to be prepared to tackle issues related to inter-municipal relations and public responsiveness. CAOs are less likely to be prepared to handle human resource issues. 29

32 Dealing with Priority Issues CAOs who indicate that they are not well prepared to deal with priority issues facing them over the next three years (ratings of 1, 2 or 3 out of 5) were further asked to describe in their own words what would be useful in helping them to better address priority issues, other than revenue and taxation. A total of 89% of these CAOs provided suggestions, while 9% were not sure what would be useful. Although this subset of CAOs was directed to identify solutions other than revenue and taxation, 38% still noted that financial assistance would be useful to assist them to better address imminent priority issues (N.B. This figure would likely be higher if CAOs were not limited in their response). Specifically, these CAOs would find it useful to have increased access to more funding and/or grants (28%), additional support and resources from other levels of government provincial and federal (10%), and point to increased revenue and taxation (4%) as other means to help them address priority issues. Resources for Dealing with Priority Issues - Main Themes - q17. Other than revenue and taxation solutions, what would be useful to you in helping you to better address these priority issues? Multiple Responses Resources & Funding 38% Cooperation With Government Bodies 31% Training 22% Strategic Planning 12% Human Resources Planning 5% Miscellaneous 6% Other 9% Don t Know/ Not Stated 9% Base: Municipality is not prepared to deal with priority issues (n=170) Next, 31% of CAOs who are not well prepared to deal with priority issues indicate that improved cooperation with other government bodies would assist them in their efforts to better address challenges. Here, increased access to information or information sharing (11%), improved regional/municipal cooperation (8%), and decreased downloading from provincial and federal governments (4%) are potential 30