By Jim Welfley
June 27, 2005

Chicago Mayor Richard M. Daley told mayors visiting his hometown for the 73rd Annual Meeting that "cities are on a roll" but that mayors must understand and anticipate major changes and trends and adapt by modernizing how their city does business. "Our challenge," he said, "is to combine the efficiencies of a well-run business with the mission of a government that puts the interest of all our taxpayers first."

The mayor detailed numerous ways a city can modernize. Below are some of the highlights:

Globalization. Where once Chicago competed with Detroit and Cleveland for commerce it now competes with Frankfort and Shanghai. "We travel around the world with the message to tourists and investors that Chicago is not just the center of the United States, it is the center of the entire northern hemisphere," he said.

Well-trained, well-educated workforce. Every industry requires an updated skill set — even most manufacturing jobs require computer skills. Nonetheless the graduation rate in major cities is lackluster.

Work with surrounding communities. Foreign investors don't distinguish suburb and city — your city is one locality to the rest of the world. The central city in any region owns the employment rates, traffic congestion and pollution of the region.

Retain aging population. The aged provide wisdom and stability for any city. They also represent the majority of households in America: non'traditional households not represented by a mother, father and children. When it comes to policy, family values include creating policies such as affordable housing tax breaks for seniors that keep these non'traditional households from being "blown apart by economic trends."

Reform federal tax code. Working to create a simple, fair and more effective way of taxation is key to modernizing cities. In response, Chicago has created tax assistance centers to help residents obtain every tax break they are due, including the Earned Income Tax Credit (EITC).

End unfunded mandates. Legislating without funding constrains and drains local funds.

Rethink city services. Cross-train the workforce for more efficient use of personnel, lease public space and use technology to better manage information and assets. These are some of the ways cities can help streamline the labor intensive nature of city government.

Reform pension system. City pension programs are stretched due to reduced resources. Thoughtful, long-term strategies are essential so that cities hire new employees under a new, stable and efficient system.

Maintain trust of taxpayers. Keep city government honest, with zero tolerance for misconduct by public officials, and transparent, with information readily available by cable TV, phone and the internet.