Elements of a. Regional Investment Strategy

Transcription

1 Elements of a Regional Investment Strategy econ.oregon.gov September 2007

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3 Foreword We have written this guide to aid Regional Investment Boards for the development in a local Regional Investment Strategy as part of Oregon s Regional Investment Program. It is intended to guide in the creation of strategies that effectively serve and coordinate the region s needs and priorities for economic and community development, while aligning those efforts with the Economic and Community Development Department s (OECDD) Strategic Plan. In addition, the guide is also intended to help the regional boards efficiently carry out the direction provided by the Legislature in establishing and funding this Regional Investment Program, especially with respect to advancing Oregon s economy by focusing on priorities identified by the regional board, along with the following state priorities, as taken from ORS 285B.230(3) and ORS 285A.020(3): (a) Promote favorable investment climate to strengthen businesses, create jobs and raise real wages; (b) Improve the national and global competitiveness of Oregon companies; (c) Assist Oregon communities in building capacity to retain, expand and attract businesses; (d) Promote the structures and processes of public and private organizations to effectively create, adapt, foster and sustain economic development in this state, emphasizing rural and distressed areas; (e) Ensure that economic strategies will reinforce Oregon s long-term prosperity and livability; and (f) Coordinate economic development efforts and efforts to support a locally skilled workforce in order to compete in the global economy. This document is incorporated into and made part of division 55, of chapter 123, Oregon Administrative Rules, and it will not be significantly modified except pursuant to a future rulemaking process. 3

4 Essential elements of a Regional Investment Strategy Executive summary Needs examination and resource analysis ORS 285B.236(4) and ORS 285B.239(1)(b) Identified priorities long term and short term ORS 285B.239(1)(a) and OECDD Budget Note Six year investment strategy & implementation plan ORS 285B.239(1)(e) Rural action plan & rural set aside ORS 285B.239(1)(d) Barriers to implementation ORS 285B.239(1)(c) Plan for involvement of disadvantaged and minority groups ORS 285B.239(1)(g) Special uses of funds (tourism/industrial marketing & private fixed assets) ORS 285B.245 Management plan ORS 285B.239(1)(j) and OECDD Budget Note Evaluation plan (regional benchmarks & performance measures) ORS 285B.239(1)(h) First-source hiring agreements for benefited businesses OAR (3) 4

5 Executive summary This section summarizes the primary objectives of the regional board s Strategy and how the work of the regional board will contribute to furthering the state s economic development goals as outlined in OECDD s Strategic Plan. This element includes concise descriptions of at least the following: Process used to develop the Strategy, including consultation with and input from cities, counties, ports, tribes, special districts, groups, private citizens, OECDD s Business Development Officer and Regional Coordinator. Membership of the board and how the membership meets the statutory representation requirement of cities, counties, ports, tribes, special districts, rural representation and, in particular, the private sector. Economic conditions and trends in the region. The board s economic development priorities and goals. The board s strategies to address its economic development priorities and achieve its goals. Major projects, programs and activities in the next six years. The board s strategies in rural areas of the region to address its economic development priorities and achieve its goals. Major rural projects, programs and activities in the next six years. General explanation of how this strategy will be coordinated with OECDD and other agencies involved in economic development. Description of any relationship with a Regional Partnership. General explanation of the manner in which the board will evaluate its performance and will identify adjustments needed to its strategy. 5

6 Needs examination and resource analysis ORS 285B.236(4) and ORS 285B.239(1)(b) This section of the Strategy conveys the board s critical assessment and understanding of the region s economy, its industries, its residents and businesses, and its economic resources and infrastructure. Boards are encouraged to use existing economic resources wherever possible to assist with this examination. This examination does not necessarily need to concentrate only on business development, job creation, infrastructure, or availability of industrial land, but should also address issues that may contribute to a second tier of economic development such as housing, natural resources and general livability that may be necessary for economic development to occur. Examples of quantitative socio-economic data the board may want to consider include: per capita income, labor force, employment and job growth, unemployment rate, population growth, poverty rates, employment and earnings by industry, and past and current trends of industries. Examples of qualitative data the board may want to focus on: status and future potential of industries, business environment and competitiveness; availability of education and training; capacity of economic institutions; workforce issues and characteristics; financial resources; growth capacity; physical infrastructure (industrial sites and buildings, roads, water and sewer); geography; natural resources; land use and environmental issues. In this analysis, the board may wish to evaluate niches within industries in which its region might offer a comparative advantage. A crucial element in developing a Strategy is surveying and evaluating the region s competitive advantages and business relationships in order to better understand the growth sectors and cluster opportunities. This information will provide the basis for the board s Investment Strategy and Implementation Plan. Such analysis should reveal opportunities to efficiently integrate resources from various sectors and different parts of the regional economy and its communities, including leveraging other economic development efforts and programs in Oregon. This analysis can be undertaken in a number of ways, including the strengths piece of a traditional strengths-weaknesses-opportunities-threats (SWOT) analysis, or by emphasizing strengths with the potential for excellence. 6

7 Another planning approach is to look at the stocks of capital that the region can draw on, or that should be preserved or invested in, such as the following examples: o Livability Capital attributes, qualities, enjoyable sites/city centers that make the region a great place to live for current and future residents o Human Capital skills, abilities and capacity of residents and institutions not only for economic opportunities, but also for meeting other types of objectives o Social/Cultural Capital attitudes, networks and relationships that motivate and connect individuals and institutions to each other and to the community, especially in ways that are conducive to private economic activity o Political/Intellectual Capital leadership and precedents for cooperation, as well as information and capabilities for consensus and problem-solving o Financial Capital any variety of public or private sources, including state, federal and nonprofit sources, that can generate a long term way to pay for the achievement of regional priorities. 7

8 Identified priorities long term and short term ORS285B.239(1)(a) and OECDD Budget Note Based on the economic needs examination and resources of the region identified in the previous section, this element of the Strategy identifies the long term and short term economic development priorities of the board. In accordance with ORS 285B.230(3), the priorities for the board must include, but are not limited to: Retaining and creating jobs and raising real wages; Promoting the structures and processes of public and private organizations to effectively create, adapt, foster and sustain economic development in this state, emphasizing rural and distressed areas; Ensuring that economic strategies reinforce Oregon s long term prosperity and livability; and Coordinating economic development efforts and efforts to support a locally skilled workforce in order to compete in the global economy. The section also discusses the manner in which the board s priorities align with the following goals established for OECDD by the Legislature and the Oregon Economic and Community Development Commission: Promote a favorable investment climate to strengthen businesses, create jobs and raise real wages; Assist Oregon s communities to build capacity to retain, expand and attract new businesses; and Improve national and global competitiveness of Oregon companies. OECDD s Business Development Officer and Regional Coordinator will assist the board in aligning its priorities with OECDD s goals. 8

9 Six year investment strategy & implementation plan ORS 285B.239(1)(e) This section of the Strategy communicates the board s plan of action for the next six years. It will include the targeted areas on which the board will focus (e.g., cluster development) and the optimal methods the board has determined will best address its economic development priorities and result in achievement of its goals. This is the place where the reader understands what will transpire to actually implement the Strategy over time. Included in this element are the actions needed by others (local governments, private sector, state agencies, federal government) to address the board s priorities and achieve its goals. Although not a program budget or just a list of projects, the types programs and activities in which the board will invest its funds over the next six years will be listed in this section as well (e.g., assessment of a business cluster s opportunities and identification of activities to capitalize on those opportunities). The timing of those actions, programs and activities should be identified. In establishing its areas of focus and determining the methods it will use to address its priorities, the board must consult with industries, cities, ports, special districts, rural representatives, regional workforce committees and federally recognized Oregon Indian tribes located in the region. OECDD s Business Development Officer and Regional Coordinator are available to assist the board in identifying those strategies and implementation activities that will complement and align with the state s activities in your region. 9

10 Rural action plan and rural set aside ORS 285B.239(1)(d) In this section of the Strategy, the board has the opportunity to identify a plan of action which recognizes that different strategies and actions may be needed in rural areas to address the board s economic development priorities. Rural includes all areas outside of the urban growth boundaries of the Portland metropolitan areas and of any city with a population of more than 30,000. The board may define rural more narrowly for its own strategic purposes and may identify actions that will occur elsewhere, but will benefit the region s rural areas. Included in this element are the actions needed by others (local governments, private sector, state agencies, federal government) to address the board s priorities and achieve its goals. And, although not a program budget or just a list of projects, the types programs and activities in which the board will invest its Rural Set Aside funds over the next six years will be listed in this section as well (e.g., assessment of a business cluster s opportunities and identification of activities to capitalize on those opportunities). The timing of those actions, programs and activities should be identified. 10

11 Barriers to implementation ORS 285B.239(1)(c) This section includes the identification of any barriers that may exist to implementation of the Strategy, including the Rural Action Plan and the Plan for the Involvement of Disadvantaged and Minority groups, and the means to overcome those barriers: What factors have prevented the board from achieving identified goals in the past? What might prevent the board from achieving its current goals and addressing it priorities? Consider the core challenges that face a region. For example, a barrier should not be a restatement of a need rather it is the underlying reason that makes economic development in your region seem difficult or impossible (e.g., regulations). This may be better understood by working with your Business Development Officer, Regional Coordinator and your Economic Revitalization Team members. What resources are not being utilized in an effective way or might be used differently if you could effect a change? The means and methods identified for overcoming barriers, especially if focused on aspects of a problem that the board decides can be effectively addressed, will help determine the roles of OECDD and the board to achieve our collective goals. 11

12 Plan for involvement of disadvantaged and minority groups ORS 285B.239(1)(g) This element shall discuss the steps the board has taken and will take to involve disadvantaged and minority groups in development and implementation of the Strategy. Disadvantaged and minority includes groups or actual communities with exceptionally low income, dependency on public assistance or other significant impediments to economic and social success, as well as conventionally defined classes of citizens in terms of race, gender, ethnicity, age and disability. The characteristics of disadvantaged and minority groups will be unique for each region and should be discussed in this element, with special attention paid to historical factors. The contribution of these groups to the region, its economy, its livability and its community growth will help inform objectives or activities of the board. The role of disadvantaged and minority persons or organizations that represent those groups in the composition of the board and in the Strategy s development shall be included. Highlight those parts of the Six year Investment Strategy & Implementation Plan and the Rural Action Plan that may be specific to disadvantaged and minority groups and explain how the Strategy addresses their specific needs, resources and barriers. 12

13 Special uses of funds ORS 285B.245 For certain uses of Regional Investment Fund money, which includes the Rural Set Aside, special indications are required in the Strategy. Tourism or Industrial Marketing If the Six year Investment Strategy and Implementation Plan or the Rural Action Plan includes programs or activities that are designed to market the region for attracting, expanding or retaining tourism or industrial lands activity, development, investments or related jobs, the board must describe the tourism or industrial marketing activities to be carried out and how those activities or projects are consistent with current statewide marketing efforts. The intent of this section is to avoid mixed messages to audiences inside and outside of Oregon and to facilitate inter-regional and region-to-state coordination. Private Fixed Assets In order for a board to use any Regional Investment Fund moneys to assist individual private businesses in acquiring assets such as land, buildings, machinery and equipment, or to recapitalize a revolving loan fund which would provide such assistance to individual private businesses, the activity must be included in the Six year Investment Strategy and Implementation Plan or the Rural Action Plan. Also, the terms and conditions for awarding such loans or grants must be included in this section. The following must be made a part of those terms and conditions; loans or grants for private fixed assets should not displace existing private or public sources of funding for these types of acquisitions. 13

14 Management plan ORS 285B.239(1)(j) A good management plan is important to ensure the success of the overall strategy. This element identifies the organization and/or key individuals responsible for board administrative and financial operations. This includes hiring of staff, overall strategy implementation, contract administration and oversight, project troubleshooting as well as financial and strategy performance reports to the counties, the board and the state. The plan will validate the fiscal capacity of the designated legal entity to manage effectively the strategy and the Implementation and Rural Action Plans. Administrative standards (2007 Budget Note) This section shall include documentation that demonstrates the board meets the following administrative standards: The Intergovernmental Agreement creating the board or the board s adopted by-laws, charter or policies address each of the following: o election of officers and the officer s term of service; o process for removal of members for cause and for non-attendance; o vacancies; o frequency of meetings; o number of members necessary to establish a quorum and for a board decision; o public notice requirements for meetings; o minutes of the meetings must be approved by the board; o timeframe in which a new member receives an orientation, which includes: roles and responsibilities, the Investment Strategy, By-Laws, information on Public Meeting and Records Laws, Government Ethics and Standards, and the written procedures and policies governing the implementation of the Investment Strategy; and o policy for reimbursing individual members expenses. The board has adopted written procedures and polices for: o awarding funds, including the specific criteria that is used to establish eligibility for an award (see below); and o disbursing funds, including the documentation required before disbursements are made, monitoring progress on projects and troubleshooting, and enforcing contract provisions. The board s fiscal entity maintains financial records in accordance with generally accepted accounting principles and administrative records in accordance with Public Records Law. 14

15 The board s fiscal entity employs the following fiduciary controls: o a bank reconciliation is performed no less than monthly and is reviewed and approved by the board; o financial reports are provided to the board no less often than quarterly; o status reports on projects are provided to the board no less often than quarterly; o contracts are approved by legal counsel prior to issuance or a contract template that has been approved by legal counsel is used; o analyzing, processing and reporting financial transactions are conducted in accordance with generally accepted accounting principles (GAAP); and o an independent audit of the board s fiscal entity is conducted no less than annually and the audit is presented to the board for review and discussion at a regular meeting of the board. Administration of loans If the board intends to use Regional Investment Fund money, which includes the Rural Set Aside, to create or contribute to a revolving loan fund or conduct other types of lending, the board must demonstrate in this section that underwriting capacity to analyze a borrower s ability to repay, to offer collateral, to make personal or corporate guarantees/commitment is present. The person responsible for the underwriting must have a strong knowledge of balance sheets, cash flow, private sector managerial experience and other standards and principals for private business lending, and understand and communicate the methods used in determining proper interest rates and loan terms, while ensuring project feasibility, as well as structuring a loan utilizing options for deferred payments, interest subsidies, principal forgiveness and co-lending. Eligibility criteria (ORS 285B.260, OAR , and OAR ) The criteria used by the board to determine eligibility shall include the following: The project clearly implements an identifiable activity in the Strategy s Implementation Plan or Rural Action Plan. The results of the project are consistent with the board s performance measures. The funds will not be used to retire any debt. The funds will not reimburse any expenditures made or expenses incurred before final approval of the Strategy (except preparation of the Strategy as allowed by OAR). The funds will not substitute for available budgeted resources in supporting ongoing public services or infrastructure that already exist, but rather support only new or enhanced services. The funds will not maintain existing staff of a public or private entity, except staff time dedicated to: the administrative needs of the Strategy or the board; or redirected or augmented efforts consistent with the Strategy, such as new technical assistance for enhancing regional coordination or local economic development activities/capacity. 15

16 The funds will not be used to fulfill objectives or activities of the Strategy as initiated in a previous biennium. The funds will not be used to assist in any way with the relocation of a business facility within this state from one labor market to another, unless the job losses in the originating labor market area are less than or equal to 0.1 percent of the most recently available estimate for the civilian workforce therein; or the relocation entails an improvement to the quality and a significant increase in the size of the business s total in-state employment, without being detrimental to any rural area, subject to determinations of OECDD. If the funds will be used to assist individual private businesses in acquiring assets such as land, buildings, machinery and equipment, or to recapitalize a revolving loan fund which would provide such assistance to individual private businesses, the project meets the terms and conditions for such loans or grants as set forth in the Strategy. Additional criteria that should be considered: Readiness of a project to proceed; Capability of project proponent to manage the project and funds and to comply with the contract provisions, Reasonableness of costs/budget for undertaking the project or activity; Suitable commitment of funds from other sources, including the project s proponent; Amount of leverage and match; Awarding funds for gap financing; The project is not replacing an otherwise available source of funds (public or private) 16

17 Evaluation plan ORS 285B.239(1)(h) This section of the Strategy includes the method and time schedule for monitoring achievement of the board s economic development priorities and goals. This evaluation not only provides accountability for the board s use of Regional Investment Fund moneys and the overall operation of the Regional Investment Program, it also is intended to generate information so adjustments and enhancements to the board s Investment Strategy and its Implementation Plan and Rural Action Plan can be made. Although there is a statutory requirement for an Evaluation Plan, there is no single approach for boards to follow in designing a Plan. The board should develop a Plan that primarily reflects its objectives for continually assessing, refining or improving its Strategy. Whether for performance measures or regional benchmarks, the emphasis is on measurable or objective outcomes that can be reported. Regional benchmarks The Evaluation Plan must set forth the regional benchmarks that relate to the board s priorities and goals that will provide information to the board about changing economic conditions and trends in the region. Even if a goal associated with a regional benchmark is well beyond the board s control, it may be information the board would find useful in evaluating its Strategy. The Plan shall set forth the method the board will use to obtain current data for each benchmark, the schedule for obtaining the updated data, and the board s plan and schedule to analyze the data and then make adjustments to its six year Strategy and Implementation Plan, including its Rural Action Plan. Performance measures The Evaluation Plan also must set forth the measures the board will use to determine the performance of its Six year Investment Strategy and Implementation Plan, including the Rural Action Plan and the extent to which it is addressing its priorities and achieving its goals. At a minimum, those measures must include: Projected long term and short term job creation and retention; Number of jobs created and retained, along with the wage levels of those jobs; Long term investment leveraged by the board s activity; and Short term investment leveraged by the board s activity. For each measure selected by the board, the Plan must include a definition of the measure, the source of data, the method that will be used to obtain the data and the schedule for obtaining the data. Information for the required performance measures is contained below. 17

18 Information for required performance measures Definition of a job One full-time equivalent (FTE) job is equal to 1820 hours worked per year. Hours worked does not include vacation time, sick leave or any other paid time where no work is performed. This definition was developed to be consistent with the data collected by the Oregon Employment Department for the Oregon Quarterly Reports and Form 132 (for Unemployment Insurance Tax). The 1820 figure represents an average of 35 hours worked per week. Projected long term job creation and retention Definition: Long term job creation and retention. The number of FTE jobs projected to be created or retained within six years after completion of the project as a direct result of the assistance. When regional boards make funding decisions to award monies to intermediary projects, such as infrastructure extensions to industrial sites, there is no initial job creation or retention in almost all cases. For boards that have significant investments in those type of projects, actual job creation/retention must wait until there is some additional activity, e.g., a business commits to locating in an area served by the infrastructure investment. Source of data: OECDD commissioned study of infrastructure projects (ECONorthwest 2006) and others can be used to project results of these long-term investments. If the region anticipates results for this performance measurement, please contact your Regional Coordinator for the data. Method and schedule to obtain data: Projected job number is agreed upon at project start. Projected short term job creation Definition: The number of FTE jobs projected to be created as a direct result of the assistance, within two years after completion of the project. Source of data: Application from the business Method and schedule to obtain data: Projected job number is agreed upon at the time an award is made. Projected short term job retention Definition: The number of FTE jobs the business indicates would no longer exist in Oregon if the project is not completed. Source of data: Application from business, which contains the previous 4 quarters of Unemployment Insurance reports (see Definition of a job, above). Method and schedule to obtain data: Projected job number is obtained from the application. The one-year period used to determine Base FTE will be the four calendar quarters preceding the application. However, if the business/private organization started operations during the twelve month period and does not have a full twelve months of payroll preceding the application, the Base FTE will be calculated using a pro-rata of 1820 hours, based on the number of months the business/private organization operated during the four quarters. 18

19 Number of jobs created, along with the wage levels of those jobs Note: The methodology outlined here is also used by OECDD for Key Performance Measure (KPM) 1 Number of jobs created below as well as in calculating KPM 3. Number of jobs created Definition: Base FTE is subtracted from the current FTE to determine the number of FTE jobs created within two years after the project is complete. It should be noted that for multi-year projects, there still will be a requirement to report progress to the department annually. Source of data: Quarterly Unemployment Insurance reports filed by the business with the Oregon Employment Department Method and schedule to obtain data: The application will include the previous four quarters Unemployment Insurance reports that were filed with the Oregon Employment Department to establish the business Base FTE. As soon as possible following project completion, the business shall submit four consecutive quarters Unemployment Insurance reports that were filed with the Oregon Employment Department to establish the current FTE. The Base FTE will be subtracted from the current FTE to determine the number of FTE jobs created. Jobs must be created within two years after project completion. Note: Periodic checks of FTE levels can be performed through regional boards or OECDD by submitting a request to the Employment Department with the company s Oregon Business Identification Number (BIN) or Federal Employer ID Number (FEIN), business name and location. The Employment Department may allow sharing of this data between OECDD and regional boards if the Employment Department is provided with a copy of an agreement between a business and a regional board approving use of FTE and wage data in public meetings or as otherwise needed. Wage level of the jobs created Definition: Total wages paid for the year are divided by total FTE in the year to calculate the average wage. This is done at the application stage using the Base FTE information and then at the required job creation period for each year that the job creation is reported. Note: The methodology outlined here also is used in KPM 3, below. Source of data: Quarterly Unemployment Insurance reports filed by the business with the Oregon Employment Department. Method and schedule to obtain data: The application will include the previous four quarters Unemployment Insurance reports that were filed with the Oregon Employment Department to establish the business Base average wage. As soon as possible following project completion, the business shall submit four consecutive quarters Unemployment Insurance reports that were filed with the Oregon Employment Department to establish the current average wage. 19

20 Number of jobs retained, along with the wage levels of those jobs Note: The methodology outlined here is also used by OECDD for Key Performance Measure (KPM) 2 Number of jobs retained below as well as in calculating KPM 3. Number of jobs retained Definition: These are jobs that would have been lost had the project not been completed, but were retained over at least a one-year period. Source of data: Quarterly Unemployment Insurance reports filed by the business with the Oregon Employment Department. Method and schedule to obtain data: The application will include the previous four quarters Unemployment Insurance reports that were filed with the Oregon Employment Department to establish the business Base FTE. The application will ask the applicant to identify the number of existing FTE jobs that will no longer exist in Oregon if the project is not completed. As soon as possible after the required one-year job retention period, the business will submit the previous four quarters Unemployment Insurance reports that were filed with the Oregon Employment Department to establish the current FTE. If the current FTE is greater than or equal to the projected job retention, the number of jobs retained is the proposed job retention number. If the current FTE is less than the actual number of FTE Jobs Retained is equal to the current FTE Jobs or the FTE Job Retention Proposed, whichever is less. Wage level of the jobs retained Definition: This performance measure assesses the actual average wage of a job retention project. Total wages paid for the year are divided by total FTE in the year to calculate the average wage. This is done at the beginning of the project using the Base FTE information, and for the year covering the required retention period. Note: The methodology outlined here also is used in KPM 3, below. Source of data: Quarterly Unemployment Insurance reports filed by the business with the Oregon Employment Department Method and schedule to obtain data: The application will include the previous four quarters Unemployment Insurance reports that were filed with the Oregon Employment Department to establish the business Base average wage. As soon as possible following the job retention year of a project, the business shall submit four consecutive quarters Unemployment Insurance reports that were filed with the Oregon Employment Department to establish the current average wage. Long term investment leveraged by the board s activity Definition: The amount of money projected to be invested in the region within six years as a direct result of the board s investment and which, as determined by the recipient, would not have occurred without the board s investment. 20

21 Source of data: OECDD commissioned study of infrastructure projects (ECONorthwest 2006) and others can be used to project results of these long-term investments. Actual results should continue to be collected to update models used for projection. Method and schedule to obtain data: If the region intends to use this performance measurement, please contact your Regional Coordinator for the data Short term investment leveraged by the board s activity Definition: The amount of money invested in the region within one year after completion of the project, as a direct result of the board s investment and which, as determined by the recipient, would not have occurred without the board s investment. Source of data: Recipient of Regional Investment Funds Method and schedule to obtain data: The recipient will be required to submit a final report after completion of the project. The final report will include the amount of money invested in the region as a direct result of the Regional Investment Funds and also will include a statement from the recipient as to whether the investment would have occurred without the Regional Investment Funds. OECDD legislatively approved key performance measures (KPMs) The following shows how a selection of OECDD s legislatively approved key performance measures (KPMs) for the biennium align with OECDD s strategic goals. Based on the strategic goal(s) pursued, this list shows measures to include in assessing progress with those goals. Strategic Goal 1: Promote a favorable investment climate to strengthen businesses, create jobs and raise real wages. (KPM 1) Number of jobs created; (defined above) (KPM 2) Number of jobs retained; (defined above) (KPM 3) Amount of estimated state personal income tax generated by the department s investment in jobs (KPM 3) Amount of estimated state personal income tax generated by the Department s investment in jobs. (average wage associated with the created or retained jobs) x (number of jobs) x (effective tax rate). Definition: The measure calculates personal income tax generated by job creation and retention projects. Source of data: Quarterly Unemployment Insurance reports filed by the business with the Oregon Employment Department. Effective tax rate published by the Department of Revenue. 21

22 Method and schedule to obtain data: This KPM is calculated by multiplying the following three elements: The calculation should be performed as soon as data obtained for the other measures on job creation and retention and wage levels. Currently, the effective tax rate is determined to be 5.7%. The Department of Revenue last updated the effective tax rate in a report for tax year 2005 in the Spring of The OECD Commission reviews updates to the KPM methodology for approval. Strategic Goal 2: Improve national and global competitiveness of Oregon companies. (KPM 4) New export sales of assisted clients. Definition: The measure tracks new export sales that are a direct result of assistance which is calculated by specific contracts that the business attributes to the investment by the board. Other contributors to the measure may include technical assistance. Source of data: Financial reports of the assisted business. Method and schedule to obtain data: Businesses that are assisted in making new export sales during the Oregon fiscal year provide financial reports demonstrating sales totals for the year assisted and for the preceding year to establish a base level of sales. Strategic Goal 3: Assist Oregon communities to build capacity to retain, expand and attract businesses. Aligns with KPMs 7-9. (KPM 7) Number of new industrial sites/acres certified project ready. Definition: The measure tracks the number of new industrial sites and acres associated with those sites that are certified by the department as ready for development within 180 days ( project ready ) as a result of the project. Source of data: Documentation is obtained from a variety of agencies and others as appropriate. OECDD will provide a third-party letter of certification as a method of verification. Method and schedule to obtain data: Documentation and the site itself is reviewed by an independent consultant who recommends certification. Results represent sites certified within the Oregon fiscal year and are reported in the month following that fiscal year. (KPM 8) Number of community capital projects assisted for construction (infrastructure & community development). 22

23 Definition: The measure tracks the number of community capital projects assisted for construction. Method and schedule to obtain data: Each infrastructure project at the start is categorized (as a construction or planning project) and reported on in the month following the Oregon fiscal year under consideration. The cost of each project is a key factor to track. (KPM 9) Number of community capital projects assisted for planning (infrastructure, community & organizational). Definition: The measure tracks the number of community capital projects assisted for planning. Method and schedule to obtain data: Each infrastructure project at the start is categorized (as a construction or planning project) and reported on in the month following the Oregon fiscal year under consideration. The cost of each project is a key factor to track. 23

24 First-source hiring agreements for benefited businesses OAR (7) This element addresses a matter of board discretion, such that: In order for the board to require businesses receiving Regional Investment Fund moneys to enter into a First-Source Hiring Agreement, a previously standard aspect of the program, the board must elect to do so and commit to implement the requirement through this element of the plan. Without this election and clear assumption of responsibility for its verification, the requirement may not be imposed. In any event, the requirement applies only to businesses meeting the definition of a Benefited Business in OAR Chapter 123, Division 70 (i.e., receiving more than $50,000 as a grant, loan or substantial benefit (e.g., new public works) but not for marketing or research). The requirement may not be imposed case-by-case, but for all Benefited Businesses if the board takes this option, although OECDD s Director may waive for individual firms. To exercise this option, the board may amend the Strategy after final approval. 24