Arresting public safety costs · ARRESTING PUBLIC SAFETY COSTS: Ways to Prevent Police Department...

May 19, 2019Los Angeles, California

ARRESTING PUBLIC SAFETY COSTS:Ways to Prevent Police Department Personnel

Costs from Taking Over the Budget

May 19-22, 2019 • Los Angeles, California113th Annual Conference

Learn more by visiting us at gfoa.org • #GFOA2019

Pall GudgeirssonCity Manager (retired), City of San Clemente, CA

Walter KatzDirector of Professional Services, Benchmark Analytics

Larry Yium, CPFODirector of Planning & Research (retired), City of Houston, TX

INTRODUCTIONS

• Moderator: Pall Gudgeirsson, City of San Clemente, City Manager/Elected City Treasurer, Retired

• Speaker: Larry Yium, Director of Planning and Research, Retired, Houston Police Department

• Speaker: Walter Katz, Director of Professional Services, Benchmark Analytics

SUBMIT QUESTIONS

1.Text “GFOA2019” to 22333

2.Text in your question

OBJECTIVE

• What is the Finance Departments ‘role’ in supporting Police Departments?• How do we develop opportunities to help each other?• How do we better collaborate between Police & Finance to support each other?• How can we better educate Police Departments regarding financial issues?• What can we as finance officers do to support the critical services provided by

our public safety personnel?

QUIZ #1

• What is average salary of a police/sheriff patrol officer? (Source Bureau of Labor Statistics)

• A $57,710• B $65,400• C $101,000• D $78,300

QUIZ #2

• True/False?

• Lawsuits and liability costs are negligible as compared to police/sheriff benefit costs. T/F

QUIZ #3

• True/False?

• Police management personnel should be encouraged to learn about government finance. T/F

QUIZ #4

• True/False?

• Contracting out police services will always save money and enhance service levels. T/F

Arresting Public Safety CostsWAYS TO PREVENT POLICE DEPARTMENT PERSONNEL COSTS FROM TAKING OVER THE BUDGETLARRY J. YIUMDEPUTY DIRECTOR, HPD (RETIRED)

Topics Covered Today

What Police Chiefs Wish Their Finance Directors Knew

Lessons to Police Supervisors Regarding Fiscal Impacts of Actions

Staffing & Related Fiscal Issues

Environment that ExistsShows About Local Police

9-1-1 Andy Griffith/ Mayberry RFD Blue Bloods Chicago PD COPS CSI: Crime Scene Investigation, CSI Miami The First 48 Hours Hawaii Five O Law and Order, SUV, Criminal Intent Live PD Police Women of Broward County, Cincinnati,

Memphis The Rookie SWAT

Shows About Finance Directors

But Accountants Are Still The “Good

Guys”

“He is most dangerous man in the world. He’s the accountant”-Line from the movie “The Accountant”

Is This Your View of the Police Chief and the Police Department?

How Each Group Thinks About the Other at Budget Time H

ave a question? Text "GFO

A2019" to 22333. Then text your question(s).

Your Police Officers = James Bond

Risk Assessment Matrix

Impact (Consequences)

Frequency

Have a question? Text "G

FOA2019" to 22333.

Then text your question(s).

High ImpactLow

Frequency

High ImpactHigh

Frequency

Low ImpactLow

Frequency

Low ImpactHigh

Frequency

Risk Mitigation

What Finance Directors Wish Their Police Chiefs Knew (or understood)

There is a bottom line, not a bottomless well of resources

It was the Police that came up with performance management standards, goals, and objectives

Managing resources does not mean you can’t do your job

Public safety is important, but so are other city services

What Police Chiefs Wish Their Finance Directors Knew (or understood)

Local policing is more than crime fighting and directing traffic

Police departments are a para-military organization

Public safety is an investment, not necessarily just a cost

Policing (costs) is impacted by issues beyond the city limits

Technology is not necessarily a force multiplier

Police have a higher standard to meet

Risk Assessment Matrix

Impact (Consequences)

Frequency

Have a question? Text "G

FOA2019" to 22333.

Then text your question(s).

High ImpactLow

Frequency

High ImpactHigh

Frequency

Low ImpactLow

Frequency

Low ImpactHigh

Frequency

Risk Mitigation

Reducing the Risks/Consequences

Catastrophic medical-accidents and equipment

Failure to supervise

Lack of sleep

Off duty activity

Importance of training

Staffing Issues

Personnel costs are often counter intuitive in policing

# of Officers-What are the cities’ goals?

Civilianization is a not a substitute for force reduction

Overtime versus fulltime

Alternatives to increased officer staffing/funding alternatives

Need to take the long term view

Summary Policing costs are expensive-prepared for a possible non-event

Expectations of finance directors and police chiefs

Mitigating fiscal consequences

Expectations of your police department

Staffing levels/ Alternatives

Consider long term implications versus short term gains

Contact Information: Larry J. Yium

[email protected]

mailto:[email protected]

Arresting Public Safety Costs — Ways toPrevent Police Department Personnel

Costs from Taking Over the Budget

Walter KatzDirector of Professional Services

Benchmark Analytics

Liability Costs from Police Litigation are Front Page News

Have a question? Text "GFOA2019" to 22333. Then text your question(s).

Doing Nothing is an Expensive Option


Settlements Can Have a Real Impact on a City’s Finances

• Bethlehem, PA sold bonds to satisfy a $7.39 million settlement.

• Hammond, IN issued bonds to as a result of a $4.5 million settlement.

• Chicago, IL issued $225 million through the bond market for anticipated settlements and judgements in 2017.


Governments Can Pay for Losses and Costs in Three Ways

• Self-insure (common with 100K+ population) – set aside a % of budget for potential losses





• Obtain liability insurance in private market.


• Obtain liability insurance in private market.

• Participate in a risk pool (about 500 pools across the U.S.)



Insurers Can Play a Large Role in a City’s Future

Exercising its authority through identifying and recommending or requiring implementation of risk management

techniques to decrease risk of loss.

An insurer can control for risk in two ways:


Insurers Can Play a Large Role in a City’s Future

“Agencies that do not comply have lost their insurance coverage and ceased to exist.”

How Governments Pay: Lawsuits, Budgets, Police ReformJoanna C. Schwartz, UCLA Law Review (2016)

Sets rates, deductibles or denies or cancels coverage based on an

entity’s risk.

Exercise its authority through identifying, recommending, or requiring implementation of risk

management techniques.

An insurer can control for risk in two ways:


Risk Pools Function Similarly to Insurance

• Intergovernmental risk pools look a lot like an insurer

• Members contribute to the pool

• Pool staff or retained experts can provide loss prevention assistance to members


A Jurisdiction Can Build a Stronger Defense When it Identifies and Reduces High Risk Behavior

Developing a risk management system

Identify and analyze risk • Define risk domain areas, organizational objectives and operational goals

• Identify risks (current and emerging operational risks)




Identify and analyze risk

Post-litigation review

• Define risk domain areas, organizational objectives and operational goals


• Conduct root cause analysis of harms in specific cases

• Engage in corrective action planning






Plan organizational response





• Assign department and unit roles and responsibilities

• Establish communication and information sharing between departments and units







Execution of control process strategy






• Establish communication and information sharing norms between departments and units

• Training

• Early intervention systems (EIS)

• Policy development

• Audit unit







Execution of control process strategy

Monitoring






• Establish communication and information sharing norms between departments and units

• Training

• Early intervention systems (EIS)

• Policy development

• Audit unit

• Evaluate execution of control process

• Accountability is built in


Analysis of Risk

• Follow up• Request on-demand

analysis• Clean and collate

inputs from various entities

Real-World Example of a Law Enforcement Risk Management Process


Coordinating Informational Inputs

Analysis of Risk




• Analyze use of force data• Combine complaint and

lawsuit records with training data

• Use EIS data to identify broad risk factors

• Identify emerging risks• Determine the effectiveness

of implemented recommendations



Risk Reporting

Regular reporting to:• LEA’s general

counsel• Operational unit

leaders• Law Department• Financial officer










Analysis of Risk Coordinating Informational Inputs


Risk Reporting Planning & Proposing Corrective Actions

• Coordinate regular risk review meetings with audit team, general counsel, and operational leaders

• Coordinate regular inter-department risk review meetings

• Take lead in proposing risk exposure corrective measures

• Codify and communicate corrective measures


Risk Reporting










Analysis of Risk





Monitor Response

• Regular communication with auditor and operational unit leaders

• Refer non-compliance to LEA leadership


Risk Reporting Planning & Proposing Corrective Actions

• Coordinate regular risk review meetings with audit team, general counsel, and operational leaders

• Coordinate regular inter-department risk review meetings

• Take lead in proposing risk exposure corrective measures

• Codify and communicate corrective measures

Risk Reporting










Analysis of Risk





May 19-22, 2019 • Los Angeles, California113th Annual Conference

Learn more by visiting us at gfoa.org • #GFOA2019

QUESTIONS?

1.Text “GFOA2019” to 22333

2.Text in your question

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