David's Blog

The challenge any business faces is knowing (and understanding) what its customer wants and how much he or she will pay for it. Similarly, the Chamber seeks to better serve its members, by knowing what they want and what it will take to meet their needs. The Chamber recently did the serious work of asking for insight from our members and from the community.

We recently contracted with Zenith Research Group to conduct an expansive and ambitious research effort to ascertain the common values that bind the Chamber’s membership. Further, the research set out to investigate the following: if the membership believes that political and public policy advocacy are warranted; what the advocacy should look like; and how the Chamber can best serve as an advocate, as defined by members. Now that the research is completed, the board can use the research to evaluate future programs, the efficacy of the political action committee (PAC), and the common thrust of advocacy with the Chamber.

Using a random selection process, 384 Chamber members accepted an opportunity to participate in a telephone survey. The individual survey responses were kept confidential. Every response was appreciated. In addition, 200 non-members were surveyed to provide insight into the perceptions non-members have about the Chamber.

Prior to the research, there were various opinions as to the benefit of the Chamber’s political action committee. However, not one opinion was based on hard data. The entire debate was emotional and based on anecdotal evidence. The Chamber could no longer afford to continue to guess about something which has been as controversial as the Chamber PAC. Now there is hard data on which to make future decisions regarding the PAC.

The results of this survey will guide the Chamber in determining future direction and will become a benchmark for future comparisons. With these survey results, we can more effectively make policy decisions that reflect the real interests of our membership and develop programs and services that speak more directly to our members’ needs.
I encourage you to access these seminal research findings. It was made possible by the 584 individuals who took the time to share their views regarding the Chamber. Accessing the information is as simple as going to our website at www.duluthchamber.com and pressing on the member research icon. As always, feel free to let me know what you think about the research or about anything else pertaining to the Chamber. My email address is dross@duluthchamber.com. Let’s make the most of this valuable research.

Mentioning the possibility of it invites the label of “negative.” Seeking to understand more about the ramifications of it makes one an “alarmist.” Bringing the leading authority on it to our community, who will detail the difficulties associated with it, is being “politically motivated.”

The Duluth Area Chamber of Commerce has been called and labeled all of these things. Why? Simply because we seek to understand the possibility of, and the ramifications of, the City of Duluth declaring municipal bankruptcy. The Chamber believes community members should have the opportunity to better understand this possibility. It is understandable that community members may be confused regarding the likelihood of bankruptcy.

Mayor Bergson and other elected officials have repeatedly and publicly stated that there is no chance the city of Duluth is going to file bankruptcy. Conversely, the State of Minnesota’s leading authority on the subject, State Auditor Patricia Anderson, has publicly stated: “If Duluth does not act now, it is a matter of time before Duluth will be forced to significantly raise its property taxes, dramatically cut its budget, or go bankrupt.”

For over a decade, the state auditor’s office has advised Duluth city officials to take corrective action regarding its unfunded post-retirement health benefit for city employees. Yet, no decisive action has been taken and the problem continues to escalate. The city of Duluth has an estimated $290 million-plus unfunded obligation. Moreover, it is projected that the liability could grow to over $400 million in the next ten years.

The Chamber has arranged to have the state’s leading financial authority, State Auditor Patricia Anderson, address Duluth’s financial crisis in a presentation she will give at a luncheon Monday, June 19, in the Great Lakes Ballroom of the Holiday Inn Hotel & Suites, located at 200 West First Street. The luncheon begins at 11:30 a.m. with registration and lunch. Auditor Anderson’s keynote address will begin at noon.

Reservations for the June 19 luncheon can be made by calling the Chamber at 218.722.5501. Reservations are required for attendance and must be made by Thursday, June 15. Members of the media are welcome to attend the event.

Insightful Duluthians will understand that the Chamber’s effort to keep this issue before the community is a positive thing. The Chamber’s leadership believes our community will be better served if it is better informed. It is apparent that we can no longer ignore the challenge before us. Attend the June 19 luncheon to learn more about what declaring bankruptcy might mean for Duluth. Once educated, we will all be better equipped to encourage our elected officials to do what needs to be done to effectively address this concern.