Finance and Administration Committee

1. Finance and Administration Committee Performance Measurement Report to the Finance and Administration Committee of the County of Renfrew

2. Agenda • Introduction • Objective • Scope • Methodology • Environmental Scan-Private Sector

3. Agenda • Environmental Scan-Public • UN • Canada • Ontario • Ontario Center for Best Practice • OMBI • MMAH

4. Agenda • Results • Conclusion

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.

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.

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.

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.

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.

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.

11. 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.

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

13. 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

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

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.

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:

17. Environmental Scan - Canada 1. economic opportunities and innovation in Canada 2. the health of Canadians 3. the Canadian environment 4. the strength and safety of Canadian communities

18. Environmental Scan - Canada 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

19. Real gross domestic product (GDP) per capita

20. 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 employment • But not all members of our society are reaping the benefits • Less involved civic society (safety) • Environmental indicators continue to be a cause for concern.

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.

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

23. Environmental Scan - Ontario 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.

24. Environmental Scan - Ontario Result of the Study ……… 14th among 16 peer North American jurisdictions in economic prosperity

25. Environmental Scan - Ontario Summary ………. Improving productivity is the key to closing our prosperity gap

26. Environmental Scan - Ontario 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:

27. Environmental Scan - Ontario How To Improve Productivity: • Heighten aspirations across Ontario • Competitiveness, growth, global excellence, innovation, entrepreneurship, creativity • Increase productivity-enhancing investments for future prosperity • Higher education, machinery, equipment, technology

28. Environmental Scan - Ontario How To Improve Productivity: • Strengthen motivations through tax reforms • Motivations to work, hire, and invest for the future are hindered by high marginal tax rates • Strengthen market structures. • Successful industries need other clusters of like industries to be more competitive

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

30. Environmental Scan - The Ontario Centre for Municipal Best Practice Purpose…….. to identify 'best practices', and prepare reports offering guidance for practitioners interested in applying them.

31. Environmental Scan - The Ontario Centre for Municipal Best Practice 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)

32. Environmental Scan - The Ontario Centre for Municipal Best Practice Who is part of this? • Municipal Practitioners •  Technical advisors •  Academic advisor(s) •  Private sector advisor(s)

33. Environmental Scan - The Ontario Centre for Municipal Best Practice 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.

34. Environmental Scan - The Ontario Centre for Municipal Best Practice Roads Report • Premix sand and salt • Handbook • Use full cost accounting technique • Flexible winter staff schedules • Regular 16hr/day 2 shift schedule

35. Environmental Scan - The Ontario Centre for Municipal Best Practice 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.

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.

37. Environmental Scan - The Ontario Municipal CAO Benchmarking Initiative (OMBI) Expert Panels have been created to study long term care, roads, solid waste, emergency measures service (ambulance), water and wastewater services.

38. Environmental Scan - The Ontario Municipal CAO Benchmarking 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.

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)

40. Environmental Scan - MMAH 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.

41. Environmental Scan - MMAH Municipalities can report the data through • direct mail, • a property tax bill • paid ads in local newspapers • posting the information on their municipal websitesto compare the information.

42. Environmental Scan - MMAH 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 !!

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.

44. Residential Tax Rates HALIBURTON COUNTY $206.78 1 RENFREW COUNTY $408.52 8 KENT COUNTY $1038.25 30

45. Commercial Tax Rates HALIBURTON COUNTY $306.60 1 RENFREW COUNTY $741.34 17 KENT COUNTY $2042.32 32

46. Industrial Tax Rates HALIBURTON COUNTY $355.28 1 RENFREW COUNTY $1486.72 23 KENT COUNTY $3030.12 31

47. Tax Revenue per SQKM HAMILTON $440,886 1 RENFREW COUNTY $2,701 33 HALIBURTON COUNTY $1,378 36

48. % TAX $ OF TOTAL REVENUE $ YORK 65% 1 RENFREW COUNTY 23% 35 HASTINGS COUNTY 10% 36

49. % PIL$ OF TOTAL TAX $ OTTAWA 15.7% 1 RENFREW COUNTY 11.5% 2 OXFORD COUNTY 0.4% 36

50. TOTAL OPERATING EXPENSE $ OTTAWA $1.67 BILL 1 RENFREW COUNTY $90.9 MILL 16 HALIBURTON COUNTY $12.1 MILL 36