Policy & Legislation

Municipal Ordinance to Establish a Legacy Business Program

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Creating the municipal ordinance that establishes and defines your legacy business program is one of the first and foremost steps you should take. Its creation formally establishes your legacy business program as a legal entity, allowing contributions from across city departments and organizations. This ordinance legally institutes the legacy business program as a formal economic, social, and cultural priority for the city, warranting continued support.

Establishing a foundational municipal ordinance for a legacy business program will likely take considerable groundwork by you and your team. Since most legacy business programs will likely require a legislative process in which the ordinance is introduced and sponsored by an elected official, such as a city council member or the mayor, your first step should be to introduce them to the concept, importance, and value of the program. You will likely also have to guide the ordinance through the legislative process, lobbying any additional stakeholders involved to gain their support and ensure its passage. Be sure to have created a case for the foundation and funding of the program before you meet with these elected partners.

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Once you have garnered support for the legacy business program, you will likely help shape the foundational ordinance.  This is a strategic step to define and scope how the program operates within the municipality. As you take this step, consider including key components like:

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The definition and eligibility of a legacy business

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​This helps to clarify the eligibility process and ensures that all applicants are evaluated consistently and fairly. (see the Eligibility Metrics section for more information)

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The departmental authority for the program

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This identifies the municipal government entity responsible for administering such programs and describes the implementation process. It creates the ownership and partnership structures necessary for cross-functional support of the program. Be sure to clarify which department leads the program and manages the ongoing operations. It is crucial to have established support and understanding for the legacy business program within that department before they take ownership. To do this, you should include department leadership in your initial lobbying efforts alongside elected officials. Establishing a solid foundation of trust and shared vision between your team, the department stakeholders, and the elected officials who support the program is critical to its success. At this time, you should also consider outlining any program elements, such as finances, that other departments will administer or manage. Creating this organizational clarity prevents ambiguity and promotes collaboration among departments that may collaborate on a legacy business program, such as economic development, historic preservation, planning, and community development. 

 

The public record component of the program

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This should include how the public can access and review the legacy businesses program, whether through a directory or registry. It should also include how the public can contribute and participate in the nomination and eligibility process. 

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Municipal Financial Authority for the Legacy Business Program

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If funds are not already allocated for a legacy business program through an existing department, you will need to  work with elected and municipal officials to identify and approve sources for funding to accommodate a new program. According to the National League of Cities, municipal governments typically fund their programs and initiatives using a mixture of sources and strategies. Many municipalities fund their economic development and small business programs through the city’s general fund, which comes from local tax revenues, assets, and municipal fees. Special taxes or incentives are also sometimes created and used to fund programs. Additionally state governments and the federal government can provide direct funding to municipal governments for targeted local economic development initiatives and programs. 

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Establishing funding for your legacy business program through the general fund will likely require a multi-step process. This process will be different from place to place, but generally includes steps like these:

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1. Establish the program's purpose and need (this should have been done as part of your foundational policy).

2. Develop a cost estimate for the program that includes staffing, operations costs, and capital needed for the services you provide to legacy businesses. This estimate is usually submitted for consideration during the annual budget review. An avenue for off-cycle budget requests may or may not be available in your municipality.

3. Evaluate the program budget as part of the overall budgeting process. This could include evaluating it against overall budget capacity and other programs or policy priorities.

4. Approve the program budget through the city council or board of supervisors. This process also varies by municipality, but generally requires a review, revision, and approval (by voting). Much like establishing the foundational ordinance for the program, this step will require you and your team to lobby elected officials and stakeholders for budgetary support.

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If funding for your legacy business program is coming through internal or external (state or federal) grants, it is likely that a grant policy or process has already been established in your municipality. The Government Finance Officers Association (GFOA) recommends that municipal governments establish a centralized organization to manage internal and external grants. These organizations are generally part of the municipal finance department or budget office to provide proper oversight. This department establishes the policies for establishing and managing funds and will be your primary partner over the lifecycle of your grant. They will also be responsible for establishing the timeframe, renewal process, and review or evaluation process for the grant.

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Establishing the financial authority for your legacy business program is crucial because it creates a legal and transparent framework for your program, identifies the municipal or external funding sources, and provides the capital that will be used for the economic support tools you provide to legacy businesses and property owners in your program. If possible, identify multiple funding sources and include a pathway for continued funding for the program as part of this process.