october 20, 20031 performance measurement report to the finance and administration committee of the...

October 20, 2003 1

Performance Measurement Report to the Finance and

Administration Committee of the County of Renfrew

Finance and Administration Committee

October 20, 2003 2

IntroductionObjectiveScopeMethodologyEnvironmental Scan-Private Sector

Agenda

October 20, 2003 3

Environmental Scan-PublicUNCanadaOntarioOntario Center for Best PracticeOMBIMMAH

Agenda

October 20, 2003 4

Results

Conclusion

Agenda

October 20, 2003 5

Introduction

In 2000, the Ontario Government introduced a Municipal Performance Management Program that has signaled a change of

focus for Ontario municipalities. In response to this change, many of

Ontario’s municipalities have initiated a corporate program to track and compare

operating efficiencies.

October 20, 2003 6

Introduction

The County of Renfrew has also made performance measurement a priority for

the organization. During the development of the 2003 Budget, the County of Renfrew

began to shift the focus away from a purely financial exercise, to the

development of a business plan which includes corporate and departmental vision, values, goals and objectives.

October 20, 2003 7

Introduction

Benchmarking has become standard municipal practice creating a method to balance cost efficiency, quality service and taxpayer satisfaction. This new business plan approach therefore required each department to benchmark key service delivery processes against other Ontario municipalities.

October 20, 2003 8

Introduction

Unfortunately, many of the County of Renfrew departments found it difficult to find comparative information. Most municipalities were just beginning a similar exercise and had not yet developed a database of program measures.

October 20, 2003 9

Objective

Following the completion of the 2003 Budget cycle, the Finance Department was asked to conduct a review of performance measurement indicators for Ontario municipalities (specifically Counties and Regions) and report these findings prior to the development of the 2004 Business Plans.

October 20, 2003 10

Scope

The Finance Department included within it’s 2003 Business Plan the addition of a part time summer student to assist the department with data collection. The scope of the project was limited to a cursory review of the data which is readily available through the internet or other accessible information.

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Methodology

The work plan required a review of all Upper Tier and Regional Government websites as well as a search for performance management within the Federal and Provincial Government as well as municipal organizations and private industry.

October 20, 2003 12

Methodology

Early on in our review, it became obvious that many county / region’s websites did not provide the specific data needed to create benchmarks at the departmental level. A survey was then created to augment the electronic data and was sent to all 36 counties/regions in Ontario… 30% response rate

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Environmental Scan-Private Sector

During our review of the available material, we discovered that the concept of performance management has been widely accepted by the private sector for many years and widely used by almost every large corporation in North America during the last few decades…Fortune 500

October 20, 2003 14

Environmental Scan-Private Sector

Management concepts such as ISO 9000, Total Quality Management, Just-In-Time production systems, Time-Based competition, Customer-Focused Organizations, Balanced Scorecard, Activity-Based Costing, Employee Empowerment and Reengineering

October 20, 2003 15

Environmental Scan – United Nations

United Nations Human Development Index 4 Measures on the Index:• economic prosperity • literacy • life expectancy • education enrolment To keep the Human Development Index in perspective,

differences in scores between 1st (Norway, 0.942) and 3rd (Canada, 0.940) and 6th (US, 0.939) are so minimal as to be insignificant.

October 20, 2003 16

Environmental Scan - Canada

Canada's Performance 2002 (report to Parliament) presents data on 19 societal indicators that reflect a balance of social, economic and environmental interests. These indicators have been grouped according to four main themes:

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1. economic opportunities and innovation in Canada

2. the health of Canadians 3. the Canadian environment 4. the strength and safety of Canadian

communities

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Economic opportunities and innovation in Canada - 6 indicators

Real gross domestic product (GDP) per capita Real disposable income per capita Innovation employment rate Literacy Educational attainment

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Real gross domestic product (GDP) per capita

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Results - Canada

Canada is doing well with respect to health, life expectancy, infant mortality. Canada's economy has shown strong performance, especially in the area of employmentBut not all members of our society are reaping the benefits Less involved civic society (safety)Environmental indicators continue to be a cause for concern.

October 20, 2003 21

Environmental Scan - Ontario

The Institute for Competitiveness and Prosperity is an independent, not-for-profit organization that deepens public understanding of the economic factors behind Ontario's economic progress.

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They are funded by the Government of Ontario and are mandated to share their research findings directly with the public.

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The Institute's first priority will be to develop ways to measure and monitor Ontario's economic progress. This entails comparing Ontario's performance with other provinces, U.S. states and other jurisdictions by creating an indicator system. Such systems have been created in many other jurisdictions and provide the foundation for a policy.

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Result of the Study ………

14th among 16 peer North American jurisdictions in economic prosperity

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Summary ……….

Improving productivity is the key to closing our prosperity gap

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Ontario’s capability for strengthening productivity is driven by its capacity for innovation and upgrading. This capacity is built on an integrated set of four factors:

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How To Improve Productivity:

1. Heighten aspirations across Ontario Competitiveness, growth, global excellence,

innovation, entrepreneurship, creativity

2. Increase productivity-enhancing investments for future prosperity

Higher education, machinery, equipment, technology

October 20, 2003 28


How To Improve Productivity:

3. Strengthen motivations through tax reforms

Motivations to work, hire, and invest for the future are hindered by high marginal tax rates

4. Strengthen market structures. Successful industries need other clusters of

like industries to be more competitive

October 20, 2003 29

Environmental Scan - The Ontario Centre for Municipal Best Practice

Partnership, formed in 2002, between the Association of Municipalities of Ontario and the Ontario Ministry of Municipal Affairs and Housing. It will be a virtual electronic library of best practices

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Purpose……..

to identify 'best practices', and prepare reports offering guidance for practitioners interested in applying them.

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Who is part of this?

Association of Municipalities of Ontario

Province of Ontario

Ontario Municipal Benchmarking Initiative

Ontario municipalities

Other professional associations (eg. OMAA, OGRA, MFOA, AMCTO)

October 20, 2003 32


Who is part of this?

Municipal Practitioners

Technical advisors

Academic advisor(s)

Private sector advisor(s)

October 20, 2003 33


Unfortunately, although the Province has invested over $100,000 in start up costs and over $150,000 in annual operating funding, the Centre for Municipal Best Practices has only produced two reports. One deals with Waste Management and is therefore of no use to the County of Renfrew and the other dealing with Roads Winter Control.

October 20, 2003 34


Roads Report

1. Premix sand and salt

2. Handbook

3. Use full cost accounting technique

4. Flexible winter staff schedules

5. Regular 16hr/day 2 shift schedule

October 20, 2003 35


Although the concept of a “best practice” has merit, the lack of detailed comparative cost information and the lack of efficiency and effectiveness measures makes this project of little use to the County of Renfrew at this time.

October 20, 2003 36

Environmental Scan - The Ontario Municipal CAO Benchmarking

Initiative (OMBI)

is a partnership project to push for service excellence in municipal government. Participating municipalities are working together to identify and share performance statistics, operational best practices and to network in a spirit of innovation and entrepreneurship to push for even greater successes.

October 20, 2003 37


Initiative (OMBI)

Expert Panels have been created to study long term care, roads, solid waste, emergency measures service (ambulance), water and wastewater services.

October 20, 2003 38


Initiative (OMBI)

Once again, there has been a significant amount of activity and expenditure by this organization since 1999, but, at the time of writing this report, the OMBI group has not yet released any information regarding benchmarks.

October 20, 2003 39

Environmental Scan - MMAH

The Municipal Performance Measurement Program (MPMP) was a new initiative designed to provide taxpayers with useful information on service delivery and municipalities with a tool to improve those services over time. (2000)

October 20, 2003 40


Yet the province does not release the information to municipalities and the reporting requirements do not ensure wide distribution. In fact, they appear designed to ensure the opposite, as there is no mechanism for municipalities to easily compare the information.

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Municipalities can report the data through direct mail, a property tax bill paid ads in local newspapers posting the information on their municipal

websites to compare the information.

October 20, 2003 42


This means there is NO way for any of us to go to a central site to view comparative data for Ontario municipalities

If you want to find out, then you need to contact each municipality and ask !!

October 20, 2003 43

Results of Our Study

Review of the 2001 Financial Information Returns, as provided by the Ministry of Municipal Affairs and Housing

General observations. The following municipalities do not all offer

the same services, therefore the following summaries are not always comparable

However, the analysis does provide a general framework for us to compare the financial position of the County of Renfrew to the other 35 Counties and Regions in Ontario.

October 20, 2003 44

Residential Tax Rates

HALIBURTON COUNTY $206.78 1

RENFREW COUNTY $408.52 8

KENT COUNTY $1038.25 30

October 20, 2003 45

Commercial Tax Rates




October 20, 2003 46

Industrial Tax Rates




October 20, 2003 47

Tax Revenue per SQKM

HAMILTON $440,886 1

RENFREW COUNTY $2,701 33

HALIBURTON COUNTY $1,378 36

October 20, 2003 48

% TAX $ OF TOTAL REVENUE $

YORK 65% 1

RENFREW COUNTY 23% 35

HASTINGS COUNTY 10% 36

October 20, 2003 49

% PIL$ OF TOTAL TAX $

OTTAWA 15.7% 1

RENFREW COUNTY 11.5% 2

OXFORD COUNTY 0.4% 36

October 20, 2003 50

TOTAL OPERATING EXPENSE $

OTTAWA $1.67 BILL 1

RENFREW COUNTY $90.9 MILL 16

HALIBURTON COUNTY $12.1 MILL 36

October 20, 2003 51

SURPLUS % OF TOTAL REV

HAMILTON 29.55% 1


DUFFERIN COUNTY (2.30%) 36

October 20, 2003 52

RESERVE $ & RESERVE% OF TOTAL REVENUE

PEEL $1.1 BILL 129% 1

RENFREW COUNTY $10.1 MILL 11% 33

PRESCOTT&RUSSELL $4.5 MILL 6.2% 36

October 20, 2003 53

CHANGE IN RESERVE BALANCE FOR 2001

BRUCE COUNTY (41.6%) 1

RENFREW COUNTY (5.6%) 12

HALBURTON 70.2% 36

October 20, 2003 54

% CAPITAL SPEND OF TOTAL SPEND

DUFFERIN COUNTY 51.7% 1


HURON COUNTY 3.4% 36

October 20, 2003 55

LTD AS A % OF TAX REVENUE

YORK REGION 110.6% 1


PETERBOROUGH COUNTY 0% 36

October 20, 2003 56

% OPERATING COSTS SPENT ON GEN GOVERNMENT - MPMP


OTTAWA 3.74% 14

PRINCE EDWARD COUNTY 7.29% 24

October 20, 2003 57

FINANCE-COST PER AP & PAYROLL TRANSACTION (5)

$/AP $/PAY

RENFREW COUNTY $4.89 $3.53 LOW

ELGIN COUNTY $24.80 $56.94 HIGH

October 20, 2003 58

FINANCE-EXPENSES PER FTE(6)

RENFREW COUNTY $15.16 MILL LOW

LAMBTON COUNTY $6.01 MILL HIGH

October 20, 2003 59

HR-2001 EXPENSES PER EMPLOYEE (8)

SIMCOE $231 1

RENFREW COUNTY $508 4

SUDBURY $1523 8

October 20, 2003 60

IT-COST PER WORKSTATIONS 2001

ELGIN $2249 1


LAMBTON $1695 6

October 20, 2003 61

COMMUNITY SERVICES – COST PER HOUSEHOLD

PRESCOTT&RUSSELL $1458 1


BRANT $65 36

October 20, 2003 62

COMMUNITY SERVICES – AVG MTHLY CASELOAD PER FTE

SUDBURY 49 1

RENFREW COUNTY 31 4

PEEL 23 5

October 20, 2003 63

CHILD CARE – COST PER HOUSEHOLD

DUFFERIN $326.21 1


FRONTENAC $6.62 33

October 20, 2003 64

SOCIAL HOUSING – COST PER HOUSEHOLD

WELLINGTON $569 1


FRONTENAC $21 36

October 20, 2003 65

SOCIAL HOUSING – COST PER UNIT

DUFFERIN $7290 1


SIMCOE $3971 6

October 20, 2003 66

AMBULANCE – COST PER HOUSEHOLD

HURON $168 1


WELLINGTON $36 36

October 20, 2003 67

AMBULANCE – COST PER CALL

# CALLS COST PER

HALIBURTON 3900 $601 1

RENFREW COUNTY 12250 $490 2

PEEL 90578 $207 10

October 20, 2003 68

AMBULANCE – COST PER VEHICLE KM

# KM COST PER

ELGIN 173,239 $13.75 1

RENFREW 719,756 $8.35 4

DUFFERIN 290,361 $6.10 8

October 20, 2003 69

POA – SURPLUS % OF REVENUE

FRONTENAC 97% 1

RENFREW COUNTY 65% 7

GREY 3% 24

October 20, 2003 70

POA – FINES PROCESSED PER FTE

LEEDS & GRENVILLE 5856 1

RENFREW COUNTY 3858 3

STORM,DUND,GLEN 2750 5

October 20, 2003 71

EC DEV – COST PER HOUSEHOLD

SUDBURY $60.25 1


SIMCOE $1.75 26

October 20, 2003 72

PLANNING – COST PER HOUSEHOLD

BRANT $112.01 1


FRONTENAC $0.96 33

October 20, 2003 73

ASSISTANCE TO THE AGED-% LTC OF TOTAL EXPENSES

FRONTENAC 31.5% 1


STORM,DUN,GLEN 1.6% 35

October 20, 2003 74

LTC – PER DIEM COSTS- 8 HOMES

NURS PRO FOOD OTHER

RENFREW CTY 65.50 5.27 4.83 39.37

AVERAGE 56.27 5.23 5.41 39.95

October 20, 2003 75

PUBLIC WORKS - % OF TOTAL COSTS SPENT ON PW

HALIBURTON 35.2% 1


HALTON REGION 3.0% 35

October 20, 2003 76

WINER CONTROL COST PER KM - MPMP

SUDBURY $3852 1


KENT $329.93 23

October 20, 2003 77

CONCLUSION

There appears to be little doubt that the Province of Ontario will continue to keep performance measurement a priority for Ontario municipalities. In addition, organizations such as the Canadian Taxpayers Federation and the media seem intent on publicizing this type of information as it becomes available.

October 20, 2003 78

CONCLUSION

Unfortunately, after several years of effort and hundreds of thousands of dollars, organizations such as the Ontario Centre for Municipal Best Practices and the Ontario Municipal CAO’s Benchmarking Initiative have very little substantive information to share with municipalities to assist them in their efforts to establish performance indicators

October 20, 2003 79

CONCLUSION

However, in spite of the difficulties we encountered in our attempts to collect performance indicator information, we are convinced that there is value in continuing to collect and compare municipal performance information for a number of reasons:

October 20, 2003 80

CONCLUSION

1. Measurement helps improve performance.

2. Performance measurement strengthens accountability

3. Performance measurement stimulates productivity and creativity.

4. Performance measurement improves budget processes

October 20, 2003 81

COPY OF THE FULL REPORT

WWW.COUNTYOFRENFREW.ON.CA

DEPARTMENTS FINANCE

REPORTS 2003

Performance Measurement Report - September 2003

october 20, 20031 performance measurement report to the finance and administration committee of the...

Documents

reengineering slide

response rate slide

results canada canada

environmental scanpublic

canada ontario ontario

ontario municipalities

ontario government

environmental interests