Surviving the Silver Tsunami: How are you preparing for the future?

René BobadillaPico Rivera City ManagerMay 15, 2015

Retirement Warriors Municipal Gov’t Mass Retirements…

Pico Rivera, CAPopulation63,771 Size8.8 square miles

Demographics- 91.7% % Hispanic- $53,654 median household income- 67.5% high school graduate or higher

City of Pico Rivera Sales Tax Revenues

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

as

of 3

/31/

15 $-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

GeneralGeneral- Measure PRDA Successor Agency

City of Pico Rivera Full Time Equivalents

How did we get here?

Financial Exuberance

Prudent Compromise went by the wayside

Fun Times…Spending Frenzy

Where are we today?

At A Major Crossroads

Present: Slow Recovery Phase Recovering From Bad Practices

Pension and Medical Liabilities Rising

Many Previous Golden Handshakes, Retirements, Layoffs…

Many Positions Vacant

Right Sizing/Not Downsizing

No RDA as Economic Engine

Cities are slowly recovering…

Economy Hangover

Adapting to the new realityChanging the

Culture of Government

Setting A New Course

Healthy Competition

Prioritizing -Efficiency -Effectiveness -Transparency

Collaboration

Benefits and ChallengesBenefits1. Measurement2. Managed

competition3. Potential cost

savings4. Flexibility5. Transfer risk6. “Multiplier Effect”

Challenges1. CalPERS2. Unions3. Political

implications4. “Scope creep”5. Internal capacity6. Measurement7. Contingency plans

Where are we headed?

Learning from the Past…

Demise of the Status Quo Innovation Change is Good It’s not the process but the outcome Many efficient and effective ways to

achieve the goal Cannot continue kicking the can down

the road

Strategic Recruitments/Staff Development Team/Professional Development Reward Expertise & Experience Design Thinkers Innovation vs. Habit

Succeeding Internally to Succeed Externally…

What’s on the Municipal Horizon?

Keys to Success

1. Need a champion Great Leader & Manager willing to implement change

2. Early buy-in from stakeholders Trustworthy/Effective communication about what is at stake

and the importance of the change required

3. Define success & manage expectations Develop realistic benchmarks and be consistent throughout

the organization

4. Design Your “A” Team Identify your current stars/recruit new talent and build a

strong team of interdisciplinary collaborators and independent thinkers

Questions?