Springsted brings expertise to N.C.

One of the largest and most established independent public sector advisory firms in the United States has signed on as a service partner of the Association.

Springsted brings more than half a century of experience in the public sector, providing high-quality, independent financial and management advisory services to public and nonprofit organizations. The company prides itself on working with clients in the long-term process of building communities on a fiscally sound and well-managed basis.

Springsted’s experienced staff of more than 70 professionals includes former county and city managers, finance directors, community and economic development directors, public works directors and engineers.

Springsted Executive Vice President Nick Dragisich described the company as a “single source advisor.” “Our clients don’t really have to go anywhere else,” he said.

Springsted has five main practice groups that offer services in management consulting, public finance, housing and economic development, organizational management and human resources, and investment services.

Since 2003, Springsted has completed classification and compensation studies for Cabarrus, Henderson and Onslow counties, and an economy, efficiency and evaluation study for Onslow County. According to Springsted officials, Onslow’s organizational management study resulted in first-year savings of $450,000.

The company is currently conducting a classification and compensation study for the Association.

Springsted is consistently ranked among the top 10 public advisory firms in the U.S. and has brought more bond issues to market in the past 10 years than any other advisory firm. The company represents 10 percent of all national Triple-A bond rated local governments and brings approximately 350 bond issues to market annually.

Springsted’s Integrated Financial Planning Model is a tool that is not only useful to counties but is appreciated by bond rating agencies. The customized system makes use of five years of built-in county financial history to project growth in revenues, operating and capital expenditures, and fund balances.

The model takes into account expected growth in tax base, effects of that growth on operating costs, and the impact of inflation and various development decisions. It allows the user to identify major capital projects and purchases and their sources of funding, and to project the impact of expenditures based on various growth scenarios. It, in essence, allows local government officials to see the impact of their decisions before they commit to them.

“For those of you who do five-year-and-out budgets, this is a great tool,” said Ed Wooters, the NCACC’s director of member services.

Property tax base and rate projections, revenues and expenditures (including personnel costs), new debt, population and housing data, and projected increases in enterprise fund user fees are among typical outputs. The documents and data generated by the model are formatted to appear as documents currently in use by the county.

The City of Newton in Catawba County is currently using the model.

The company conducts consolidation/annexation studies, and can help avoid redundancy of effort on the part of multiple local governments. Springsted identifies opportunities for cooperation on capital and operational financing and works with all parties to construct well-defined agreements. As part of the study, Springsted will look at any operations that may be better provided by the private sector.

Springsted can help identify new revenue sources – user fees, utility rates and charges, franchise fees, etc. – to finance infrastructure needs, and performs cost analysis of increasing and decreasing current fees and charges.

Springsted’s array of organizational management and human resources services range from staffing analyses and pay and classification studies to strategic planning and succession planning.

At a time when competition for young talent has never been greater, succession planning is an important piece of any county’s long-term vision, according to Springsted officials.

“We have found a diminishing pool of quality applicants,” said Senior Vice President John Anzivino. “To keep the talent that you have … you’re going to have to become more employee friendly.”

The smaller pool of qualified people to perform the complex assignments required of local government officials increases the need for county managers to study their pay and classification structure. Springsted’s detailed analysis uses a Systematic Analysis and Factor Evaluation (Safe®) System to reveal the value of a position compared with other positions.

Of particular benefit to smaller counties are Springsted’s economic and community development services.

Springsted works to strike a delicate balance to provide incentives for businesses to locate or expand in a county but not enrich themselves at the public’s expense. This economic development review process protects the local government to ensure a fair deal for all parties. Springsted takes into account the company’s and the local government’s shared visions and goals and makes sure the firm’s strengths complement those of the local government.

The company has years of experience working with projects involving tax increment financing, a method of capital financing that has been in use in other parts of the country for years but wasn’t been available to North Carolina local governments until voters approved it in November 2004.

Springsted has nine offices, including a newly opened operation in Raleigh.

For more information on Springsted services, contact Ed Wooters at (919) 715-0705 or ed.wooters@ncacc.org.