Initial Report - The City Committee

© The City Committee June 2011 http://www.thecitycommittee.org 1City Committee Mid-Year UpdateJune 2011http://www.thecitycommittee.org

© The City Committee June 2011 http://www.thecitycommittee.org 3The Idea“We see this not as just another lumbering blue ribboncommission but as an unpaid business practices consulting firm to the City,consisting of individuals who call this City home and care deeply about its future.”~~ Mayor Lionel Rivera, in his 1/19/10 letter response to Mr. Steve Bartolin, President/CEO The BroadmoorOur MissionTo the extent consistent with the Code and other state and federal laws, theCorporation shall advance any opinion or support to local government(s) ortheir enterprises that helps such local governments deliver the highest-levelquality of service to taxpayers in the most cost-effective way possible.Incorporated July 13, 2010 (non-profit)IRS 501 c 3 exemption August 30, 2010

© The City Committee June 2011 http://www.thecitycommittee.org 5MethodologyPolicy DocumentsBriefings fromCity StaffComprehensive AnnualFinancial Reports(CAFRs)General LedgerAnnual BudgetDetailWorking SessionsWith StaffCity Committee Financial Database(Excluding City Enterprises)

© The City Committee June 2011 http://www.thecitycommittee.org 6Projects and Sub-CommitteesPolicy DocumentsAnnual BudgetDetailBriefings fromCity StaffComprehensive AnnualFinancial Reports(CAFRs)General LedgerWorking SessionsWith Staff2012 BudgetPolicy ReviewStrategic PlanCity Committee Financial DatabaseExcluding City EnterprisesMemorial HospitalOptimizationPensionsGovernance and StatuteReviewCompensationand Benefits

© The City Committee June 2011 http://www.thecitycommittee.org 7Meeting ObjectiveUpdate on current findings andrecommendations from the work of theCity Committee as the City of ColoradoSprings government starts work on 2012budget and foundation for the future

© The City Committee June 2011 http://www.thecitycommittee.org 8Today’s Message• Builds on prior work:– Prior work by Sustainable Funding Committee + others– Efforts by council + staff to reduce costs in 2010 and 2011– City Committee work and recommendations in 2010• Cost increases continue to outpace revenue growth:– Only modest tax / fee revenue increases post recession– Policies and Liabilities drive costs higher– High “fixed” internal cost structure for provision of services• Action is required now and in 2012 budget to establishsustainable financial model for the future• The City Committee continues to offer mayor, council,staff and the community help and assistance

© The City Committee June 2011 http://www.thecitycommittee.org 9Status of PriorRecommendations

© The City Committee June 2011 http://www.thecitycommittee.org 10Prior Recommendations• Workers Compensation Structure and CostConcern Recommendation StatusInternal fund administrationcost of almost $1m per yearUse of external W.C.insurance for lower fixed costand independent case mgmt.OPENSalary continuation at 100%Annual cost and year-endliability of $4m each appearhigh for ~1800 employeesNumber of cases appearshigh – 400+ per yearMove to state mandatedlevel of 66%External case mgmt. Test“fitness for the job” prior tohire and annuallyMore aggressive casemanagement using externalresourcesOPEN. Moved to 80%OPEN. Police looking at ideasfrom S.W.A.T to implement inother areasOPEN. To be reviewed byH.R. Policy sub-committee

© The City Committee June 2011 http://www.thecitycommittee.org 11Prior Recommendations• General Fund Performance and BalanceConcern Recommendation StatusHeadcount costs consumemore and more of generalfundCity employees with theirbenefits are too “expensive”for some tasksGeneral fund balancecritically low in 2009Hiring back staff (and theircosts and liabilities) tooquickly without full reviewShift more of healthinsurance premium costs toemployees 80:20Optimize /outsource throughwell structured processBalance restoration ofservices with building backbalanceStrictly limit hiring until newmayor has a chance to revieworganizationOPEN. Moved from 94:6 to86:14 in 2011OPEN. Initial meetings. Noaction- waiting for new mayorOPEN. Good progress.Balance at 15% of annualexpenditure vs. 17% guidelineOPEN. 235 positions in 2011budget to hire back but hiringhas slowed

© The City Committee June 2011 http://www.thecitycommittee.org 12Prior Recommendations• The Need for Cost ControlsConcern Recommendation StatusCity expenditures growingfaster than economy,population and incomeTotal average compensationper city employee now $95-$100k per year (2x localaverage)Pension costs have increasedby almost 100% in eightyearsLegacy policies and culturelimiting changeAggressive program tooptimize critical services andoutsource othersJointly funded independentreview of total benefitscompensation by TowersWatson.Cap employer contributions.Shift cost to employee.Legislative action for PERA.Move to defined contributionBenchmark cities andcompanies who have madesuccessful changesOPEN Limited hiring but stillremains critical issueON HOLD pending newmayor and council takingofficeOPEN. Further largepension contributionincreases in budgetOPEN.

© The City Committee June 2011 http://www.thecitycommittee.org 13Prior Recommendations• Control and Eliminate Escalating LiabilitiesConcern Recommendation StatusOperating liabilitiesincreasing from self-insuredactivities + policy($30m)Underfunded pension plansdemanding higher employercontributions. (police andfire~ $170m, PERA: city ~$100m, CSU+MHS ~$400+m)Retirees receive significantpost employment benefits~$74m liabilityAverage lifetime cost of newhire ~$2m salary +ben.+pen.Change / enforce policies.Outsource workers comp.and health insurance.Establish realistic pensionmodels. Shift cost toemployees. Transition todefined contribution savingsplans. PERA legislation.Review all post employmentbenefits to control / limitcosts and liabilitiesStrict review of ALL new fulltime hires…use temps.OPEN. Vacation accrualschanged in 2011.OPEN. Action required bynew mayor and council toavoid further $3-5m a yearincreasesOPEN. Some action taken toreduce medical insurancepremium subsidyOPEN.

© The City Committee June 2011 http://www.thecitycommittee.org 14Updated Findings andRecommendations for 2011-2012Excluding City Enterprises2010: Preliminary Unaudited2011: Annual Budget

© The City Committee June 2011 http://www.thecitycommittee.org 15Business Model for ColoradoSprings

© The City Committee June 2011 http://www.thecitycommittee.org 16Simple Pro-Forma Model• Revenue: Sales Taxes, Fees, Fines, Licenses, PILT, Intergovernmenttransfers, etc.• Expenditures: Salaries, Benefits, Capital, Equipment,Materials, Financing Costs, etc.• Revenue has to exceed cost for enterprise to be viableand sustainable

Revenue© The City Committee June 2011 http://www.thecitycommittee.org 17

© The City Committee June 2011 http://www.thecitycommittee.org 19Government Operating Revenue$300,000,000$250,000,000$200,000,000CAGR:< 6.5% >< 4.5% > < minus 0.5%>TOTAL CAGR:GF TAX + Fee CAGR:3.8% over 16 years2% over 16 years$150,000,000$100,000,000$50,000,000$01995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011NET General Fund Revenue All Sources Transfer-in (PILT) Public Safety Tax Revenue Surplus RevenueSource: Colorado Springs Comprehensive Annual Financial Report (CAFR) and General Ledger

© The City Committee June 2011 http://www.thecitycommittee.org 21$180,000,000$160,000,000$140,000,000$120,000,000$100,000,000$80,000,000$60,000,000$40,000,000$20,000,000Major Fund Revenue TrendsDrivers:BUT10% more people in population (city)~Same number employed~Earning about the same as in 2002$02002 2003 2004 2005 2006 2007 2008 2009 20102% Sales Tax 2% Use Tax2% Lodgers & 1% Auto Rentals Tax 0.4% Public Safety Sales & Use Tax0.1% Trails, Open Space and Parks Tax 2.5% Sales & Use Tax for Medical MarijuanaSource: City of Colorado Springs Website www.springsgov.com, City Agencies, Revenues and Collections, Various Reports

© The City Committee June 2011 http://www.thecitycommittee.org 22Sales Tax TrendsCATEGORY 2003 2004 2005 2006 2007 2008 2009 2010$UTILITIES (49) 2,431,669 2,888,954 3,184,077 3,245,786 3,573,721 3,566,319 3,459,419 3,519,277AUTO DEALERS (51) 13,878,670 14,553,993 13,064,884 13,061,816 13,086,602 11,062,754 10,654,071 11,700,575BUILDING MATERIALS (52) 13,506,620 15,443,788 16,827,674 16,389,795 15,363,753 12,454,541 10,598,628 11,397,737DEPT/DISCOUNT (53) 18,061,534 18,799,699 19,249,321 19,412,749 18,871,099 17,671,097 18,149,316 18,611,648GROCERY (54) 2,906,354 2,992,551 3,110,232 3,228,911 3,213,695 3,229,049 3,340,397 3,842,965AUTO REPAIR, LEASES (55 & 74) 5,638,437 5,845,310 5,911,990 6,099,589 6,646,077 6,541,136 5,900,340 6,109,809CLOTHING (56) 4,486,324 4,943,162 5,090,033 5,164,388 5,486,743 5,398,622 5,551,603 5,733,345FURN/APPLIANCES/ELECT (57) 8,623,750 9,197,221 9,533,419 9,903,883 10,081,033 9,122,173 7,734,347 7,928,054RESTAURANTS (58) 13,828,641 15,029,690 15,730,615 16,112,555 16,931,880 17,321,046 17,041,405 17,798,554HOTEL/MOTEL (70) 5,183,289 5,421,225 5,656,733 5,914,433 6,416,550 6,449,710 5,538,445 5,584,592MISC RETAIL (59) 14,909,150 15,700,258 16,220,353 17,470,643 17,641,247 18,599,532 17,496,073 17,990,587MEDICAL MARIJUANA (97) - - - - - - - 549,412SALES TO BUSINESS (73 & 93) 8,229,403 7,815,374 8,472,583 8,649,578 8,195,239 7,719,776 7,100,586 8,348,131ALL OTHER 8,522,436 8,123,607 8,547,574 8,911,444 9,684,881 10,044,366 9,237,501 9,107,405======== ======== ======== ======== ======== ======== ======== ========TOTAL 120,206,277 126,754,832 130,599,487 133,565,570 135,192,521 129,180,119 121,802,132 128,222,090Source: City of Colorado Springs Website www.springsgov.com, City Agencies, Revenues and Collections, Various Reports

© The City Committee June 2011 http://www.thecitycommittee.org 23Revenue Summary• Revenue from normal taxes and fees has beenapproximately flat for last 10 years• Revenue increases have come from other sources– Public Safety Tax, PILT / Surplus Revenue• ONLY taxes from housing and discretionaryexpenditures suffered during recession…others did not• NO drivers for SIGNIFICANT revenue increases• Good: May Year-to-date up 3.4% over 2010• Bad: May Year-to-date remains 3.1% BELOW 2007

Expenditures© The City Committee June 2011 http://www.thecitycommittee.org 24

© The City Committee June 2011 http://www.thecitycommittee.org 25Expenditures by Major Fund$400,000,000$350,000,000$300,000,000$250,000,000$200,000,000$150,000,000$100,000,000$50,000,000$02003 2004 2005 2006 2007 2008 2009 2010 2011General Fund Public Safety Sales Tax Special Revenue Funds Support ServicesSource: Colorado Springs Comprehensive Annual Financial Report (CAFR) and General Ledger

© The City Committee June 2011 http://www.thecitycommittee.org 26Compensation Costs$400,000,000$350,000,000$300,000,000$250,000,000$200,000,000$150,000,000$100,000,000$50,000,000$02003 2004 2005 2006 2007 2008 2009 2010 2011Total City Expenditures (All Funds) Total Employee CompensationSource: Colorado Springs Comprehensive Annual Financial Report (CAFR) and General Ledger

© The City Committee June 2011 http://www.thecitycommittee.org 27Components of Compensation$200,000,0003% W-2 Compensation CAGR 2003-2009$180,000,000$160,000,000$140,000,000$120,000,000$100,000,000$80,000,000$60,000,000$40,000,000$20,000,000$02003 2004 2005 2006 2007 2008 2009 2010 2011Total W-2 Compensation Total Healthcare Expenditures Total Pension ExpendituresSource: Colorado Springs Comprehensive Annual Financial Report (CAFR) and General Ledger

© The City Committee June 2011 http://www.thecitycommittee.org 28W-2 Compensation: Civilian vs. Sworn$160,000,000$140,000,000$120,000,000$100,000,000$80,000,000$60,000,000$40,000,000$20,000,000$02003 2004 2005 2006 2007 2008 2009 2010 2011UNIFORM TOTAL W-2 COMPENSATIONSource: Colorado Springs Comprehensive Annual Financial Report (CAFR) and General LedgerCIVILIAN TOTAL W-2 COMPENSATION

© The City Committee March 2011 http://www.thecitycommittee.org 29Healthcare Cost Increases$30,000,000$25,000,0007% CAGR 2003-2009$20,000,000$15,000,000$10,000,000$5,000,000$02003 2004 2005 2006 2007 2008 2009 2010 2011Source: Colorado Springs Comprehensive Annual Financial Report (CAFR) and General Ledger

© The City Committee June 2011 http://www.thecitycommittee.org 30Pension Funding Escalation$25,000,000$20,000,0008% CAGR 2003-2011$15,000,000$10,000,000$5,000,000$02003 2004 2005 2006 2007 2008 2009 2010 2011Civilian Pension Costs Uniform Pension CostsSource: Colorado Springs Comprehensive Annual Financial Report (CAFR) and General Ledger

© The City Committee June 2011 http://www.thecitycommittee.org 31Pension Funding Escalation$18,000,000$18,000,000$16,000,000$16,000,000$14,000,000Civilian$14,000,000Sworn$12,000,000$12,000,000$10,000,000$10,000,000$8,000,000$8,000,000$6,000,000$6,000,000$4,000,000$4,000,000$2,000,000$2,000,000$02003 2004 2005 2006 2007 2008 2009 2010 2011$02003 2004 2005 2006 2007 2008 2009 2010 2011Source: Colorado Springs Comprehensive Annual Financial Report (CAFR) and General Ledger

© The City Committee June 2011 http://www.thecitycommittee.org 32Average Total Compensation$120,000$100,000$80,000$60,000$40,000$20,000Increase of 41% in average total compensation peremployee from 2003-2010 = 4.5%CAGR$02003 2004 2005 2006 2007 2008 2009 2010 2011Source: Colorado Springs Comprehensive Annual Financial Report (CAFR) and General Ledger

© The City Committee June 2011 http://www.thecitycommittee.org 33Risk to Recovery – The FutureWill NOT Be Like The Past

© The City Committee June 2011 http://www.thecitycommittee.org 34External Factors• Unemployment:– Near record high 9-10% and likely to remain high 7-8%• Real salaries at 5% BELOW level in March 2001– Reduced purchasing power for large “sales tax” items• E-commerce to further erode sales tax collections– Sales Tax + PSST contribute $140m to general income• Decline in property taxes– 2011 budget assumes $21m…impact in 2012 onwards• Military based economy – 25%of GMP– Impact of inevitable federal budget cuts in future• State of Colorado budget under pressure– Tax reimbursement from State of $20m per year at risk in future?

© The City Committee June 2011 http://www.thecitycommittee.org 35Internal Factors• Compensation costs now dominate budget– Average uniform total compensation package $100k a year– Average civilian total compensation package $79k a year– 43% increase in average compensation / person in 8 years• Policies are driving increased salary costs– No pay freeze in recession– ~25% of employees received average raise of 11% over last18months during recession….policy driven “merit” increases• Pension costs will increase to cover unfunded liability– 100% increase in fire / police pension costs in 8 years– Total unfunded liability of ~ $250-300m has to be covered /resolved at some point

Modeling the Future© The City Committee June 2011 http://www.thecitycommittee.org 36

© The City Committee June 2011 http://www.thecitycommittee.org 37General Fund and Public Safety Fund(000’s) Revenue inflation 2.0%General expense inflation 2.0%Healthcare inflation 7.0%Pension inflation 8.0%Wage inflation 3.0%$350,000$300,000$250,000$200,000$150,000$100,000$50,000$02010 BaseNo Additional HeadcountNo Additional Services2010 2011 2012 2013 2014 2015 2016 2017 2018 2019W-2 Compensation Other costs Healthcare Pension Revenue

© The City Committee June 2011 http://www.thecitycommittee.org 38General Fund and Public Safety Fund(000’s)350,000300,000250,000Revenue inflation 2.0%General expense inflation 2.0%Healthcare inflation 7.0%Pension inflation 8.0%Wage inflation 3.0%Additional Headcount 100Avg Cost per Head 90,2162010 Base+ 100 more employeesNo Additional Services200,000150,000100,00050,000-2010 2011 2012 2013 2014 2015 2016 2017 2018 2019W-2 Compensation Healthcare Pension Other Additional Headcount Revenue

© The City Committee June 2011 http://www.thecitycommittee.org 39General Fund and Public Safety Fund(000’s) 2010 Base +$400,000$350,000$300,000$250,000$200,000$150,000$100,000$50,000Revenue inflation 2.0%General expense inflation 2.0%Healthcare inflation 7.0%Pension inflation 8.0%Wage inflation 3.0%Additional Headcount 100Avg Cost per Head 90,216Additional Services (in $000's) 2,500100 more employees+ $2.5m in services 2011$02010 2011 2012 2013 2014 2015 2016 2017 2018 2019W-2 Compensation Healthcare Pension Other Additional Headcount Additional Services Revenue

© The City Committee June 2011 http://www.thecitycommittee.org 40$250,000$200,000$150,000$100,000$50,000Substantial Growth Required(000’s) 2010 Base +Revenue inflation 4.0%100 more employeesGeneral expense inflation 2.0%+ $2.5m in services 2011Healthcare inflation 7.0%$400,000 Pension inflation 8.0%Wage inflation 3.0% ~4months cash balance on hand$350,000 Additional Headcount 100Avg Cost per Head 90,216$300,000 Additional Services (in $000's) 2,500$02010 2011 2012 2013 2014 2015 2016 2017 2018 2019W-2 Compensation Healthcare Pension Other Additional Headcount Additional Services Revenue

Recommendations© The City Committee June 2011 http://www.thecitycommittee.org 41

© The City Committee June 2011 http://www.thecitycommittee.org 42VERY Realistic-VERY Cautious• Do not rely on robust, sustained, economic growth• Strict headcount controls should be implemented• Complete personnel policy review within 3months• Zero-based budget for 2012• Start optimization program NOW• Grow general fund balance ….recession 2014?• Follow through on prior City Committeerecommendations

© The City Committee June 2011 http://www.thecitycommittee.org 43Headcount• Headcount was reduced to ~1750 by 1Q 2011• Approximately 200 people are added back in budget• Implement strict controls on hiring + merit/promotion– Personnel costs account for 70+ of budget• Hiring freeze until 2012 budget well understood• Use temporary staff• Review organization structure– Need to flatten out the pyramid• Start outsourcing non-critical (not core) tasks

© The City Committee June 2011 http://www.thecitycommittee.org 44• Control salary escalationPolicies– Current policy drives automatic “merit” increase $2m+/year– Low level approval required for most increases in salary• Get policies more in line with private sector– Healthcare and pension cost sharing• Start work with City Committee and Towers Watson onobjective and valid compensation and benefitsassessment– Current and prior studies appear to have suspectassumptions and data

© The City Committee June 2011 http://www.thecitycommittee.org 45• Take zero-based approach2012 Budget– Do not “plan” on carrying over past performance– Start with clean sheet for EVERY department• Salary plan should start with ACTUAL salary– Current budget process plans salaries at maximum– Leaves unmanaged “pad” of $3-4m per year• Base budget on specific actions and measureableobjectives for each department and person– Include optimization, policy review, outsourcing etc. as personalobjectives for staff• City Committee willing to help improve budget process

© The City Committee June 2011 http://www.thecitycommittee.org 46Optimization• Only way to address cost escalation – long term• Prior discussions “on hold” pending mayor takingoffice• Need to have internal “champions”• City Committee sub-committee is ready to assist– Should be internally driven by city staff / mayor• Use experience from other cities and consultants– Leonard Martin – Carrollton– Leonard Gilroy – Reason Foundation

© The City Committee June 2011 http://www.thecitycommittee.org 47Council and Mayor• New Charter requires close relationship betweencouncil and mayor• Policies• Budget• Strategic Plan• Hiring and structure• City committee will assist with sharing informationwith both legislative and executive branches to helpaccelerate change

© The City Committee June 2011 http://www.thecitycommittee.org 48• Overcome lack of trustCommunications– Stormwater fee – streetlights- parks – dead trees• Requirement: open, honest, fact-based• Recent example, in August 2010, salary presentation:– Council (and via video public) told “no increases”– Reality: ~25% staff received average increase of~11% over 18months– Increases driven by policy (implied not explicit)• Need to assure integrity in data and presentation

Strategic Issues© The City Committee June 2011 http://www.thecitycommittee.org 49

© The City Committee June 2011 http://www.thecitycommittee.org 50Strategic Plan• Mayor responsible for strategic plan• MUST have a longer term view• “Kick the can down the road” very short sighted• Need to start work on how we want to look in 5 years– Optimization– Managed competition– Appropriate policies and business processes– Use of information technology– Organization and culture change• Current “strategic plan” lacks any measurements andaccountability– Should tie to community expectations• City Committee can help structure planning process

© The City Committee June 2011 http://www.thecitycommittee.org 51Memorial Hospital Divestiture• IF…… the city / citizens want to sell Memorial Hospital…THEN• Should be a professionally managed process– No different to sale of a business or business unit– Need to accurately comprehend the national healthcare scene• Professional advisors should report to council NOT MHS CEO– Current process and actions appear self-serving• Specific “sale” criteria should be defined by council– $, health care for less fortunate, jobs, facilities, etc.• Offers should be solicited– Offering prospectus and proposal process• Review offers objectively and factually - make decision• During process Memorial management should run theoperation and not be defocused

© The City Committee June 2011 http://www.thecitycommittee.org 52Southern Delivery System• City Committee has reviewed SDS Program– Various meetings with leadership team at CSU– Financial and engineering/planning discussions• Proceed with the project– Not a question of immediate need for water– The key is that we have spent 15-20 years on permits– ANY reset of the process risks EVER getting Arkansas water• Recommendation to proceed as fast as possible– Explore ways to pull-in project– Mitigates risk of cost over runs and unknowns in future• CSU team and contractors very helpful, professional andknowledgeable – good set of planning assumptions /model

Summary© The City Committee June 2011 http://www.thecitycommittee.org 53

© The City Committee June 2011 http://www.thecitycommittee.org 54Action Required• Economic model demonstrates need for action• Prior work and economic factors showssignificant revenue increase unlikely• Cautious and realistic approach required– 2012 budget– 5-year strategic plan• Short term: conservative approach to cost• Short - Long term: aggressive approach to groweconomy to fuel the future

© The City Committee June 2011 http://www.thecitycommittee.org 55Next Steps• Establish strong working relationship with mayor, counciland staff– Unpaid consultants• Mid-year update roll-out– Mayor: 6/23/11– Council (two-at-a-time): 6/30/11 - 7/15/11– Civic leaders: August– Media and other public organizations: August on• Start work on optimization• Agree to proceed with Towers Watson Study• Dedicated review of policy team finds and actions• Start work on strategic plan and annual budget• Review and make recommendation on MHS process

© The City Committee June 2011 http://www.thecitycommittee.org 56The City Committee of Colorado SpringsRelevant DataInformed CitizensOptimized Government

© The City Committee June 2011 http://www.thecitycommittee.org 57City Committee Mid-Year UpdateJune 2011http://www.thecitycommitte.org

Back-up Economy Slides© The City Committee June 2011 http://www.thecitycommittee.org 58

BCI based on March 2001 = 100Jun-01Dec-01Jun-02Dec-02Jun-03Dec-03Jun-04Dec-04Jun-05© The City Committee June 2011 http://www.thecitycommittee.org 59Dec-05Jun-06Dec-06Jun-07Dec-07Jun-08Dec-08Jun-09Dec-09Jun-10Dec-10Mar-11Business Conditions Index120.00110.00100.0090.0080.0070.0060.00Source: 2011 PPUW Quality of Life Indicators (preliminary)

Salaries and Wages (March 2001 = 100)Jun-03Sep-03Dec-03Mar-04Jun-04Sep-04Dec-04Mar-05Jun-05Sep-05Dec-05Mar-06Jun-06Sep-06Dec-06Mar-07Jun-07Sep-07Dec-07Mar-08Jun-08Sep-08Dec-08Mar-09Jun-09Sep-09Dec-09Mar-10Jun-10Sep-10Dec-10Mar-11© The City Committee June 2011 http://www.thecitycommittee.org 60110Real Wages10510095908580Source: 2011 PPUW Quality of Life Indicators (preliminary)

© The City Committee June 2011 http://www.thecitycommittee.org 61Economic GrowthReal GDP by Metropolitan Area (millions of chained 2005 dollars)Metropolitan Area GMP Value GMP Growth$M 2009 Rank outof 3662001-2009GrowthRank outof 366Denver 142813 18 16% 135Austin 75136 35 35% 20Oklahoma City 59532 43 36% 19Omaha 41207 53 16% 134Des Moines 34712 59 29% 37Albuquerque 33229 60 19% 114Boise 23568 82 31% 31Colorado Springs 23061 83 16% 152Boulder 16481 106 5% 265Fort Collins 10244 157 17% 1281.7% CAGR in 2005 chained dollarsSource: 2011 PPUW Quality of Life Indicators (preliminary)

© The City Committee June 2011 http://www.thecitycommittee.org 62Economic ProductivityMetropolitan Area 2009 GMP per Capita Change 2001-2009$ / Person Rank out of 366 % Change Rank out of 366Des Moines 61,666 11 12% 72Denver 55,957 19 1% 213Boulder 54,307 22 4% 172Oklahoma City 48,507 37 23% 17Omaha 48,506 38 6% 144Austin 44,066 65 5% 160Boise 38,868 119 5% 163Albuquerque 38,733 120 2% 200Colorado Springs 36,826 139 3% 194Fort Collins 34,332 188 2% 198Source: 2011 PPUW Quality of Life Indicators (preliminary)

-14,000-12,000-10,000© The City Committee June 2011 http://www.thecitycommittee.org 63-8,000-6,000-4,000-2,00002,0004,0006,0008,00010,000EmploymentChange in Civilian Non-Farm Jobs by IndustryColorado Springs MSA, 2001 -2010Government8,300Educational and Health Services7,100Professional and Business ServicesOther ServicesLeisure and Hospitality3,400800600FinanceTrade, Transportation, and UtilitiesNatural Resources and Mining andConstructionInformation-600-1,600-4,500-6,700Manufacturing-13,000Source: 2011 PPUW Quality of Life Indicators (preliminary)

# of Jobs© The City Committee June 2011 http://www.thecitycommittee.org 64Annual Job Gains / Losses12,00010,0008,0006,0004,0002,0000-2,000-4,000-6,000-8,000-10,000-12,000-14,0002001 2002 2003 2004 2005 2006 2007 2008 2009 2010Source: 2011 PPUW Quality of Life Indicators (preliminary)

# of Personnel© The City Committee June 2011 http://www.thecitycommittee.org 65Military Base Employment7000060000500004000030000200001000002001 2003 2005 2007 2009 2010Ft Carson Schriever Peterson Complex USAFASource: 2011 PPUW Quality of Life Indicators (preliminary)

# of Building Permits199219931994199519961997199819992000© The City Committee June 2011 http://www.thecitycommittee.org 6620012002200320042005200620072008200920108000700060005000Construction40003000200010000All OtherSingle Family DwellingSource: 2011 PPUW Quality of Life Indicators (preliminary)