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City earns study’s
B grade for
management

'Extra credit' is given
for fine capital management
in tough economic times

By Suzanne Tswei
Star-Bulletin

Overall, Honolulu is a well-run city, especially when you consider that the economy has been on a slide down in recent years, according to Syracuse University and Governing magazine.

Honolulu received an average grade of B in a comprehensive survey of 35 American cities' government management by the magazine and the Maxwell School of Citizenship and Public Affairs at Syracuse University. The study, which included Honolulu for the first time, was released yesterday.

"I am very pleased that we've got such a solid grade," Mayor Jeremy Harris said yesterday. "It is particular meaningful that this comes after some of the toughest financial years the city has had to face."

The study gave Honolulu an A- in capital management, a B+ in information technology, a B in managing for results, a B- in financial management and a C in human resources.

"Honolulu deserves extra credit for doing an excellent job at (capital management) in the 1990s, a time of declining property values and a pinched tourist business," the study said. City officials have used the weak real estate market as an opportunity to "turn lemons into lemonade" by investing in long-term capital needs while costs are low, it said.

The city's weakest management area, human resources, is locked in a "dysfunctional marriage" with the state and the other counties, requiring all to share the same compensation system and negotiate with the unions together, the study said. But Honolulu has made improvements in employee performance appraisals and hiring practices. Hiring now takes three to four months, while it used to take eight months.

The study "reaffirms that something has to be done" about the state civil service system, Harris said. "We are at a real disadvantage. It's sort of annoying to not have any control."

Other cities receiving a B grade were New York, Philadelphia, Milwaukee, San Diego, San Antonio, Seattle and Long Beach, Calif.

Phoenix topped the list with an A+, followed by Austin, Texas, with an A-.

Other findings in the study include:

Honolulu has a higher bond rating than the state, making it one of few large local governments to have that distinction.
Despite the tight fiscal restraints, the city has put $18 million into its information technology projects since 1998. The city has a strong chief information officer, an excellent information technology planning process and a carefully enforced set of well-developed standards.
The study praises the city for a "true paperless permit system" that can cut permit approval time from weeks to days in some cases.
Honolulu has streamlined its agency structure to hold departments more accountable for their services.

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http://www.co.honolulu.hi.us