Index Methodology
Comprehensive documentation of how we calculate Regulatory Velocity Index (RVI) and Regulatory Friction Index (RFI) scores for cities.
Regulatory Velocity Index (RVI)
Measuring regulatory process efficiency
The Regulatory Velocity Index quantifies how efficiently a city's government processes regulatory matters. A higher RVI indicates a faster, more predictable regulatory environment that is generally more favorable for business operations.
Data Source
RVI is calculated from Legistar municipal records, which track the lifecycle of legislative matters including ordinances, permits, contracts, and land use decisions. We analyze matters from introduction through final action.
Scoring Components
RVI is composed of four weighted components:
Based on median days from matter introduction to final passage. Lower median days result in higher scores. Uses percentile ranking across all scored cities.
Based on median number of procedural steps (history records) per matter. Fewer steps indicate streamlined processes and result in higher scores.
Ratio of successful matters (approved, passed, adopted) to failed matters (denied, rejected). Excludes inconclusive outcomes (withdrawn, tabled).
Based on Interquartile Range (IQR) relative to median. Lower variance in approval timelines indicates more predictable processes.
Matter Categories
Matters are classified into five business-relevant categories:
Zoning changes, variances, subdivisions
Capital improvements, building projects
Service contracts, leases, procurement
Municipal code changes, regulations
Operating permits, business licenses
Confidence Levels
Each RVI score includes a confidence level based on data quality:
Robust data coverage
Adequate for scoring
Interpret with caution
Data Quality Filters
- Exclude procedural itemsCall to order, agenda approval, and similar non-substantive items.
- Exclude extreme outliersMatters taking 5+ years are excluded.
- Minimum data thresholdsCities need at least 500 total matters and 100 with lifecycle data.
Regulatory Friction Index (RFI)
Measuring regulatory discourse quality
The Regulatory Friction Index measures the quality of regulatory discourse by analyzing meeting transcripts. A higher RFI indicates smoother, less contentious discussions that suggest a more collaborative regulatory climate.
Data Source
RFI is calculated from AI-analyzed meeting transcripts. We use Claude (Anthropic's AI) to analyze transcript segments and identify friction indicators such as deferrals, opposition, and contentious debates.
Scoring Components
RFI is composed of four equally-weighted components (25% each):
Average segment length compared to baseline. Longer discussions often indicate complexity or contention. Shorter, efficient discussions score higher.
Percentage of discussions rated as contentious (controversy score 3+ out of 5). Lower contention rates indicate smoother proceedings.
Percentage of agenda items deferred, tabled, or continued. Higher deferral rates suggest difficulty reaching decisions.
Frequency of expressed opposition, dissent, or "no" votes per discussion. Lower opposition indicates more consensus-driven processes.
Technical Details
Update frequency and data processing
Update Schedule
- • Both indices calculated weekly (Sundays)
- • RVI runs at 4:00 AM UTC
- • RFI runs at 5:00 AM UTC
- • Historical trends preserved for comparison
National Percentile
- • Cities ranked against all scored cities
- • 90th percentile = better than 90% of cities
- • Percentiles update with each calculation
Important Disclaimers
- • These indices are intended for informational purposes and should not be the sole factor in business decisions.
- • Score comparisons are most meaningful between cities with similar population sizes and governance structures.
- • Data availability varies by city; some jurisdictions may have limited historical records.
- • AI analysis may occasionally misclassify discussion topics or sentiment.