Service Delivery Review

BLACKLINE CONSULTING

Town of Penetanguishene – Service Delivery Review

Council – Interim Report Presentation

September 2017 Table of Contents

1 2 3 4 Services and Where are Current Themes Service we now? Environment Levels

5 6 7 8

Organizational Property Tax Financial Comparator Analysis Analysis Analysis Analysis

Page | 2 The SDR is in the sixth phase of the project lifecycle

Timeline July August September October November (Months / Halves) H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Phases Discover Analysis Insight Report 1. Project Start-up 2. Environmental Scan 3. Review Current SDM 4. Review Org. and Staff 5. Benchmarking 6. Draft Report 7. Final Report Key Meetings

Kick off Presentation of Presentation of Presentation Presentation Presentation findings findings of interim of draft final of final report report report

Legend

Key meeting / Workstream Activity Presentation Milestone Page | 3 There are several influencing factors impacting the Town’s future delivery of services and service levels

Observations Age Distribution 10,000

9,000

► The Town’s population is shifting to a smaller, older demographic 8,000

7,000 ► The Town is faced with increased regulation and legislation in the pipeline 6,000 5,000 ► There are two upcoming elections potentially impacting the Town 4,000

► From a demand perspective, certain work drivers have changed 3,000

2,000

1,000

0 Total Population 0 to 14 years 15 to 64 years 65 years and over

2006 2011 2016 Source: Canada Census

Note: Refer to pages 8 to 11 of Interim Report Page | 4 There are 9 themes and over 60 opportunities spanning service improvements and efficiency gains

Emergency Services Digital & Technology

Capability Planning and Community Development Capacity Recreation and Community Services Communications

Public Works Governance

Process Corporate Services Procurement Cross Departmental Records & Information Management 0 5 10 15 20 25 Equipment # of Opportunities

Definition While not mutually exclusive, the main distinction is the primary benefit of the opportunity: • Service Improvement, the primary benefit is Service Efficiency improving the quality of the service Improvement 49% • Service Efficiency, will result in more efficient 51% municipal operations.

Note: Refer to pages 13 to 17 of Interim Report Page | 5 There is good distribution of opportunities, departmental specific and across the Town, that are aimed at improving services and becoming more efficient

Digital and Technology Capability

Currently, the Town’s digital services are limited – online forms There are areas of the Town where enhancing capability will help however, residents must print them and submit them in person. There efficiencies and service improvement: are opportunities to expand the use of technology so that more services ► A more rigorous performance review process, can be offered online and automated. ► Cross training staff, ► Attracting and recruiting seasonal staff by having a defined plan / working with other North Simcoe municipalities

Communications Governance

► Practices for interaction between Council, Committees and staff Both internally and externally - Creating greater consistency in managing internal communications, Having the proper resources to ► Strategic planning and clarity of performance metrics support communications, ► Alignment of performance metrics and prioritization of workload

Streamlining internal communication, Improving the coordination of ► Rationalizing interactions and number of council / committees activities to avoid duplication or miscommunication ► Rationalizing Bylaws and the process for managing them

Note: Refer to pages 13 to 17 of Interim Report Page | 6 There is good distribution of opportunities, departmental specific and across the Town, that are aimed at improving services and becoming more efficient

Records and Information Equipment Procurement Management Improving the utilization of assets and providing Creating a central repository of knowledge Streamline the RIM process and move to more the appropriate storage capabilities. assets for staff to use and re-aligning digital storage of information to improve query / procurement when purchasing materials. search time and reduce physical risks.

Process Capacity

Improving how the Town operates and Improving the planning and workload introducing more automation: time and management of staff attendance, property tax due dates, Creating great consistency and use of managing grants, complaint management volunteers which the Town depends on Realignment of staff during off peak seasons

Note: Refer to pages 13 to 17 of Interim Report Page | 7 The service levels are broadly in line with peers; the scope of service is wide given the Town’s size

Observations

CAO 9% Recreation & ► Overall satisfaction from residents – key areas of concern: Road Community Services Finance 18% 9% conditions, Main street, Economic Development

► The Town is progressive in its use of shared services Library 9% ► Expanded scope for RCS; new infrastructure (amphitheatre, splash pad)

Planning & ► Some Clerical responsibilities exist under RCS predominately due to Public Works Community 37% Development staff movements (e.g. issuing lottery licenses) 18%

► The Town has 66% of its paved roads rated good to very good. In comparison to peers the average is 64%

Note: Refer to pages 19 to 48 of Interim Report Page | 8 The Town’s headcount has not materially changed in the last 3 years

Observations Workforce Distribution Tay

Parry Sound

Goderich ► Increased work drivers, yet headcount has been steady Hanover Fort Frances

► In comparison to peers, the Town ranks in the lower quartile – Kirkland Lake meaning they have a smaller workforce, in relative terms Smiths Falls Penetanguishene

Ramara ► The Town uses more seasonal employees in comparison to peers Tiny

Gravenhurst ► The Town’s workforce distribution (across departments) is in line with Erin a sample of its peers Severn Wasaga Beach

► Reporting lines are low in comparison with common practice creating Brockville Midland

potential operational inefficiencies 0 50 100 150 200 250 300 350 400

FTE PTE SE

Note: Refer to pages 50 to 52 of Interim Report Page | 9 Despite the property tax rate being high, the average amount paid by households is in line with the Simcoe County average

Simcoe County - Property Tax Paid ($) Observations Tay

Springwater

Severn

► Penetanguishene’s residential property tax rate in 2016 was Ramara Oro-Medonte 1.445% compared to the Simcoe County average of 1.037% Clearview Adjala-Tosorontio

Tiny ► The average property tax paid on a house is $3,337 Essa

New Tecumseth ► The average property tax paid on a waterfront property is $9,595 Bradford-West Gwillimbury

Innisfil ► Compared to the Simcoe County average, property taxes paid on Wasaga Beach a house are 2% higher, and 55% higher on a waterfront property Penetanguishene Midland

Collingwood

$- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000

Tax Amount Paid ($) - Average Tax Amount Paid ($) - House Tax Amount Paid ($) - Waterfront

Note: Refer to pages 74 to 78 of Interim Report Page | 10 The expense and revenue per household have broadly moved in line with the fluctuations in total expenses and revenues

Observations Households 25 10

Millions 9 Thousands

► The Town is among the lower cost / revenue per household 20 8 municipalities 7

15 6 ► The Town’s user charge revenue has been between 20-34%. In 5 comparison to peers, this places the Town in the upper quartile 10 4

► The Town’s expenditure composition is in line with that of it peers; 3 however, ranks above average in terms of contract costs, but lower 5 2

1 in terms of materials, and amortization and interest 0 0 2011 2012 2013 2014 2015

Total Expenses Total Revenue TE/Household TR/Household

Note: Refer to pages 55 to 57 of Interim Report Page | 11 The Town has a relatively small workforce; relatively largest council size; heavy reliance on seasonal staff

Penetanguis (%) Var. (#) Var. from Metrics Mean Min Median Max Observations hene from mean mean

General Information: Population 11,135 5,408 9,225 21,870 8,962 -24% -2,173 Households 5,222 2,170 4,239 10,794 3,923 -33% -1,299 ► Comparable peers to the Town is difficult Square KM 184 8 31 550 350 47% 166 # of Council Members 7 5 7 9 9 19% 2 ► The Town has the largest council size amongst its peers Ratio – Council / 0.75 0.34 0.77 1.29 1.00 25% 0.25 1000-Population ► The Town’s total workforce ranks at the lower end relative to its Ratio – Council / 0.0016 0.0008 0.0015 0.0032 0.0023 30% 0.0007 peers Households Workforce: ► The Town is in the bottom quartile for operating expenditure, FTE 81.8 32.5 54.5 233.0 46.0 -78% -35.8 however per resident the Town is closer to the median but below PTE 43.8 9.8 42.0 113.0 12.0 -265% -31.8 SE 25.5 0.0 28.0 49.0 43.0 41% 17.5 mean Total Workforce 146.8 48.0 123.5 395.0 101.0 -45% -45.8

Financials: ► The Town is in the bottom quartile for operating revenue, however Revenue ($m) 25.2 11.3 20.3 58.8 18.9 -33% -6.3 per resident the Town is closer to the median but below mean OpEx ($m) 23.0 11.2 18.4 52.9 14.9 -54% -8.1 Revenue / Resident ($) 2,463 911 2,128 4,943 2,108 -17% -354 OpEx / Resident ($) 1,887 710 1,590 4,038 1,461 -29% -425

Note: Refer to pages 59 to 68 of Interim Report Page | 12 BLACKLINE CONSULTING

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