Using Government Assistance to Help Pay for Alzheimer's Care

Government Business

Article | March 11, 2022

Taxpayers, citizens, and industry leaders may not be totally familiar with Public Facility Corporations (PFCs), but that should change, especially now since public funding for critical projects is at an all-time low. PFCs are becoming somewhat common in many regions of the country. If the legal entity (PFC) is not familiar, here’s a bit of background. A PFC is a nonprofit corporation created by a sponsoring governmental entity — a city, county, school district, housing authority, or special district. PFCs have broad powers over public facilities, including financing, acquisition, construction, rehabilitation, renovation and repair. A PFC, once created, has the authority to issue bonds on behalf of its sponsoring public entity and once the bonds are funded, the money can be used in numerous ways. This type of legal entity has gained attention because public officials with critical projects are being forced to seek alternative funding sources. In Texas, public facility corporations are allowed the broadest possible powers to finance or provide for the acquisition, construction and rehabilitation of public facilities at the lowest possible borrowing cost. A sponsor — such as a municipality, county, school district or housing authority — may create one or more of nonprofit public facility corporations. Then, the PFC can issue bonds for the construction of public facilities or finance public facilities or even loan the proceeds of the revenue to other entities for specific purposes. A report that was released by The University of Texas School of Law found that a house bill approved during the 2015 legislative session “expands the authority of public facility corporations and allows the corporation to exercise any power that a nonprofit corporation might exercise and/or grant a leasehold or other possessory interest in a public facility owned by the PFC.” Here’s a bit more background of what is happening in Texas and there are numerous similar examples throughout the country. The El Paso Independent School District (EPISD) several years ago created the EPISD Public Facility Corporation to fund construction of central offices through non-voter approved bonds. The corporation issued more than $29 million in bonds. The plan called for the EPISD to repay the bonds with general fund dollars from the district's general fund. The 2019 Texas Legislative Session ended with a $4 million rider added to the state appropriations budget. The money was provided to the city of Port Aransas to build a $36 million apartment complex for affordable housing. Plans call for the 200-unit complex to be operated by the Port Aransas Public Facility Corporation. The corporation will work in partnership with a private company to develop and manage the property. An investment of approximately $14 million came from the private sector partner, and the Texas Department of Housing and Community Affairs provided an additional $18 million in funding. Site work on the project began in July 2020. Many school districts have created public facility corporations for construction projects for schools, and many municipalities have also used PFCs. The revenue from these types of bonds is sometimes called lease-revenue bonds. They do not require voter approval. Public facility corporations do not have the authority to raise tax rates, but it is possible for a school board to approve a property tax increase to make payments on the bonds sold by a PFC. The city of Tioga, located in the Sherman/Dennison region of Texas, constructed a new high school with funding from a public facility corporation. A collaborative initiative was launched with a lease-purchase agreement which allowed the PFC to hold title to the land and facility until the investment was repaid. At that time, the agreement calls for everything to transfer back to the district. Because the current campus was reaching its maximum capacity, a new high school campus had been a priority for the district and this was the funding mechanism selected. The city of Fate in Rockwell County recently embarked on a public-private partnership to develop an affordable seniors housing community. The projected cost is approximately $30 million. To fund the project, the city created a PFC. Plans are for the city to handle the design, construction, and management of the project in collaboration with the PFC. City leaders will appoint board members to the funding corporation which will then operate the development as a nonprofit. The project is anticipated for completion in January 2022. There are similar types of alternative types of funding options in other parts of the U.S. In Utah, for instance, the Park City Board of Education approved a PFC which will allow the district to secure revenue for a number of master plan projects. The projects have a combined projected cost of $122 million. The school district had considered the funding option of general obligation bonds, which would require voter approval, but elected to create a Local Building Authority (LBA). This funding option will allow them to fund an expansion of a high school facility to accommodate ninth-graders and expand another campus to allow for eighth-grade students. Public officials, legislators, government contractors, and taxpayers all should have an interest in watching PFCs as well as other alternative funding sources. Until traditional public funding becomes more available for critical public projects, there will be a need for various types of funding solutions. Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.

Emerging Technology

Article | July 16, 2022

Cities, counties, and states are being forced to upgrade or purchase new technology. The old legacy systems are now inadequate, inefficient, and somewhat dangerous because of their vulnerability to hacking. Many of the old systems are almost completely obsolete. They are unable to accommodate new applications. In today’s data driven world, technology modernization leads to less cost, increases in efficiency, fewer requirements for human resources, and huge increases in convenience for citizens. Research on numerous capital improvement plans for cities, counties, and states reveals that funding is being allocated for major technology purchases and upgrades throughout the country. Massachusetts In a bill just signed by the governor, the Act Financing the General Governmental Infrastructure of the Commonwealth, $660 million has been allocated for information technology (IT) needs. Community colleges are scheduled to receive $140 million for cybersecurity, software, hardware, and infrastructure upgrades. Public schools will be eligible for competitive matching grants from a program that received $50 million. Much of the education funding will be used for access to broadband and other digital learning curricula. The IT funding includes $10 million for a statewide data sharing system for all criminal justice agencies and $10 million for the state’s Department of Health. Cities and counties in Massachusetts also will receive funding. Sommerville’s need to acquire modern backup IT appliances and disaster and cybersecurity projects will get funding. The county of Berkshire is granted funding for a study to determine the cost of constructing a municipal broadband network. Avon will receive funding to move the township’s financial software to the cloud for increased security, and Easton will get funding for an e-permitting geographic information system and some technology-based service delivery software. Texas City leaders in Houston plan to spend millions to upgrade some outdated technology. The current computer-aided dispatch (CAD) system is more than 13 years old and has limited functionalities. The city's public safety department is in need of a new system to efficiently respond to police, fire, and medical calls for services. Funding allocations are outlined in the city’s 2021-2025 Capital Improvement Plan. The public safety CAD replacement is scheduled to receive $1 million, and the city has allocated $2.2 million for new budgeting software. Nevada The Las Vegas Public Works Department plans to procure a software solution for the city’s capital improvement project program management system (CPMS). The department is challenged with aging IT infrastructure, reduced resources, and currently, each phase of the CPMS uses separate software applications. This is labor intensive and ineffective. The plan is to have one software solution that tracks and manages all phases of the CPMS, including concept, planning, design, permitting, construction, and closeout. The city has budgeted $350,000 each year from 2021-2025 to complete this project. Virginia The city of Norfolk plans to upgrade its Department of Utilities’ billing system at a cost of $2 million. Over two years, city leaders plan to spend $4 million per year to purchase IT infrastructure. Purchases will include public safety radios, courthouse equipment, an electronic health record system, security appliances, a cybersecurity assessment, and upgrades to e-services platform. The city of Portsmouth will upgrade its financial software beginning in 2021 with full implementation by 2024. The project will include software and hardware upgrades and the streamlining of third-party software. Beginning in 2022, the city will purchase record retention software to house permanent, and eventually all, citywide digital records. Plans also call for updating the city’s public safety records management/computer aided dispatch system at a cost of $900,000. New software will improve mobile computing and analysis tools, management dashboards, and multijurisdictional expandable capabilities for future potential collaborations with surrounding communities. Pennsylvania The city of Philadelphia’s Office of Innovation and Technology has a total of $153.6 million in city tax-supported funding programmed over its six-year FY21-FY26 capital program. Of the $22.5 million recommended, $8.67 million is for major upgrades for network infrastructure stabilization and enhancement. Another $13.83 million will support citywide departmental applications. This funding will be used for replacement of an old tax legacy system, a new personnel accountability system for the fire department, an integrated jail management system, and an enterprise resource platform modernization effort for procurement, accounting, and logistics. In 2021, the city also will design and implement a new fare collection system at a cost of $1.54 million to replace or enhance the current revenue collection equipment. North Carolina The Forsyth County Board of County Commissioners has approved a 2020-2021 annual budget which includes a $6.2 million enterprise resource planning system. The county’s budget, finance, and human resources software programs are in critical need of replacement. In Chatham County, there are plans to replace the current tax office software at a cost of $1 million, and the current software is being evaluated for new purchases. Oregon The city of Salem’s Information Technology Department has announced plans to update its financial system at a cost of $650,000. This upgrade is needed to maintain support of the application and increase functionality. The city also plans to update its enterprise storage array at a cost of $250,000. This equipment is primarily used for enterprise applications including financial services, cash handling, parking, utility billing, police records, and other city records flagged for retention purchases. There is absolutely no doubt – 2021 will be a good year for companies that have new technology to sell to public officials. Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.

Cybersecurity

Article | March 23, 2022

The COVID-19 crisis has highlighted the importance of constant innovation—as well as the need to respond quickly, agilely, and on a large scale. During the early stages of the pandemic, governments increased mask production, facilitated data sharing among pharmaceutical companies, relaxed regulatory requirements for certain tests and drugs, and accelerated vaccine production. These were the critical first steps in what turned out to be a highly successful collaboration with the private sector, non-profit organizations, and research institutions. Governments have served as catalysts throughout the pandemic, assembling and enabling multi-sector efforts to deal with the flood of cases and develop vaccines. Even before the pandemic, the government's role as a solution catalyst was expanding in scope and complexity, with a focus on how to harness innovation across sectors for public benefit. Governments have gone beyond repairing market failures as commercial and cross-sector innovation has accelerated. Governments are fostering cross-sector solutions for a variety of societal challenges, including public health, climate change, and cybersecurity, in addition to assisting in the strengthening of strategic sectors such as defence and space. Utilizing outside innovation to drive mission delivery Many technologies have been developed by the commercial sectorthat can be used to address complex societal problems. Governments are looking into ways to use these capabilities to improve mission delivery in ways other than contracting, in order to develop a broader set of partners and solutions. It is not always easy to implement such technologies in the public sector. Governments, unlike commercial entities with access to legal and financial structures such as joint ventures and mergers and acquisitions, must find more creative ways to capitalize on external innovation based on mutual interest and advantage across sectors. Government action and innovation State and local government leaders face shrinking resources, demanding constituents, complex policy environments, and constant pressure to deliver results on time.

Article | April 13, 2020

The COVID-19 pandemic touches every aspect of business, technology, and society. And stable and effective government is at the heart of managing through this crisis. What we do now will have longer-term implications for the health and safety of our families, our citizens, the economy, and even global stability. In the past few weeks, IBM has collaborated with many of our government clients and is driving action across three critical phases of response.