city of regina efficiencies report 2014

8/13/2019 City of Regina Efficiencies Report 2014

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City of Regina Efficiencies (2006-2013)


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Table of Contents

Executive Summay!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!i"nto#uction!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1$n#estan#ing t%e City of Regina&s Ca'acity a' !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1

Revenues !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1Globalization: .............................................................................................................. 1The Inelastic Property Tax........................................................................................... 2Growth oesn!t Pay for Growth ................................................................................. "#eso$rces fro% other Le&els of Go&ern%ent............................................................. '

Ex'en#itues!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!*Inflation....................................................................................................................... ()apital: ........................................................................................................................ *+perations: ................................................................................................................. ,

"m'act !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!10Efficiency "nitiatives !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!11

+ac,goun#!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!11Summay of Efficiencies !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!12

Process I%pro&e%ent............................................................................................... 12-sset esign.............................................................................................................. 1"Partnerships.............................................................................................................. 1"Technological I%pro&e%ents.................................................................................... 1'+rganizational esign............................................................................................... 1'-$to%ation............................................................................................................... 1'+ther ......................................................................................................................... 1()lassification of fficiencies by i&ision ................................................................... 1(

Conclusion !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!16''en#ix .etaile# /ist of Recent Efficiencies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1En#notes!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!E1


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Table of igues

igue 1: )o%parison of %ill rate increases for the last ten years across %a/or western

cities .................................................................................................................. 2

igue 2 The real per capita re&en$e growth of %$nicipal0 pro&incial an feeral

go&ern%ent in )anaa between 1,, an 2* ............................................. "

igue 3 )$%$lati&e growth in pro&incial tax re&en$es since 1,*, as co%pare with

c$%$lati&e growth in operating reso$rces pro&ie by the Pro&ince to

%$nicipalities.................................................................................................... (

igue )o%parison of #egina!s )ons$%er Price Inex with the 3$nicipal Price Inex

showing the ifference in inflationary press$res. . .......................................... 4

igue * The co%parison between potential property tax re&en$es an inflationary

costs ass$%ing each rises by the rate of inflation. ......................................... 4

igue 6 )hanging responsibility for p$blic infrastr$ct$re since 1,((........................... *

igue eferre in&est%ent re5$ire to replace an6or rehabilitate #egina!s c$rrent

assets 7the infrastr$ct$re gap80 by asset type. ................................................. 9

igue Growth in the a%o$nt allocate ann$al to s$pport the renewal of capital

infrastr$ct$re since the e%ise of the eeral Pro&incial6Territorial

Infrastr$ct$re $n........................................................................................... ,


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i


Executive Summay

The )ity of #egina!s costs are rising faster than its re&en$es. This has le to challenges0partic$larly those affecting the renewal of the )ity!s assets an infrastr$ct$re. The )ity

has ientifie a significant gap between the ser&ices it has the financial capacity to

eli&er an citizens! expectations.

;ince as early as 2'0 the )ity began to ientify the nee to aress growing capacity

iss$es. The )ore ;er&ices #e&iew 7);#80 in 2(64 ientifie an i%ple%ente in&igorate

its foc$s on ientifying efficiencies. This paper ientifies "2" $ni5$e efficiency efforts

that ha&e been i%ple%ente. +f these0 only '4? ha&e been financially 5$antifie.

sti%ates of the &al$e of these efficiencies are0 therefore0 significantly $nerstate.

;ince the );# an incl$ing %ore recent efforts0 the )ity of #egina has i%ple%ente at

least


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1


"nto#uction

-s far back as 2' the )ity of #egina -%inistration an )o$ncil $nerstoo that costswere rising faster than re&en$es. ;ince that ti%e0 the )ity has consistently foc$se on

ientifying efficiencies to ens$re that the )ity co$l contin$e to ser&e citizens witho$t

creating $nacceptable le&els for taxes0 fees an charges.

This paper explores:

1. Ahy costs are rising faster than re&en$es2. The efficiency initiati&es that ha&e been $nertaken by the )ity of #egina". The net financial i%pact of those efficiencies

$n#estan#ing t%e City of Regina&s Ca'acity a'

The )ity of #egina has $nertaken consierable work in recent years to $nerstan why

its re&en$e growth has not %atche its cost growth. There are a range of iss$es that0

taken together0 ha&e create a iffic$lt challenge for %$nicipalities across the co$ntry.

This paper exa%ines those iss$es to ientify the context within which efficiency

initiati&es %$st be consiere.

Revenues:

+n the re&en$e sie of the financial pict$re0 there are a n$%ber of long staning an

challenging iss$es0 so%e of which are syste%ic an so%e of which are str$ct$ral.

lobali4ation

+&er the past 2 to " years0 the socio>political en&iron%ent in orth -%erica has

%eant that go&ern%ents at all le&els ha&e %o&e to li%it tax increases or to re$ce

taxes. This i%perati&e has been ri&en largely by globalization. orth -%erican

b$siness an in$stry is now in co%petition with co$ntries fro% aro$n the worl an0

in orer to be co%petiti&e an s$ccessf$l0 they %$st re$ce costs. Those costs incl$e

their tax b$ren. Go&ern%ents at all le&els ha&e recognize that0 in orer to ens$re a

rob$st econo%y0 the tax en&iron%ent %$st %eet the nees of the b$siness an

in$strial sector.

Ahile no one wants to pay $nnecessary taxes0 lost in the isco$rse on the iss$e of tax

re$ctions has been the effect of re$ce go&ern%ent re&en$es on the progra%s an

ser&ices eli&ere thro$gh those re&en$es. In the absence of %anaging citizens!

expectations regaring what can realistically be eli&ere within the bo$ns of c$rrent

taxation0 go&ern%ents ha&e typically %ae one of two choices: a8 to inc$r eficits or b8

to allow ser&ices to eteriorate. Beca$se %$nicipalities can!t inc$r eficits0 they ha&e


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generally allowe ser&ices to eteriorate. In large part0 this %eans that the %aintenance

an renewal of capital infrastr$ct$re has been eferre.

#egina0 in its effort to be co%petiti&e with other %$nicipalities in )anaa an across

orth -%erica0 chose for se&eral years to ha&e ? %ill rate increases. Its a&erage %ill

rate increase o&er the past ecae has been significantly lower than other western)anaian cities 7see ig$re 18. This co%petiti&e choice has ha an i%pact on the )ity!s

c$rrent financial flexibility.

200 200* 2006 200 200 2005 2010 2011 2012 2013

*

ea

vg

)algary (.? ".(? '.'? '.? '.(? (."? '.*,? '.4? 4.? (.(? !67

%onton (."? (.'? (.2(? 4.(? *.(? *."? (.? (.? (.2? "."? *!*7

#e eer 12.? .? 1.4? ,.*4? 9.44? *.(? "."1? ".,9? '."2? '.29? *!*07

;askatoon ".*9? ".'? 1.94? '.*4? (.''? ".'1? ".94? ".,,? '.? '.,,? 3!5*7

#egina .? '.? .? ".,1? 2.9'? .? '.? '.? ".,? '.'(? 2!17

(>)ity-&erage *!227 3!267 2!627 *!57 *!57 !617 !157 !317 !67 !*07 !*07

igue 1 )o%parison of %ill rate increases for the last ten years across %a/or western cities

T%e "nelastic 8o'ety Tax

3$nicipalities ha&e little taxing a$thority except by way of property taxes. Beca$se of

social changes o&er the last half cent$ry0 property taxes no longer fairly istrib$te the

cost an &al$e of %$nicipal ser&ices. They are also not responsi&e to econo%ic growth

an therefore0 in s$ch ti%es0 inae5$ately s$pport growth.

=istorically0 an aspect of property taxes that has been consiere an a&antage is that

they are not s$b/ect to peaks an &alleys of the econo%y 7as wo$l0 for exa%ple0 salestaxes8. They are a relati&ely stable for% of taxation. -ltho$gh property taxes are base

on the %arket &al$e of a property0 when that %arket &al$e increases0 it oesn!t

necessarily res$lt in property tax increases. #ather0 %arket &al$e only infl$ences how

%$ch property tax a gi&en property will pay relati&e to another property. #eassess%ent

is a zero s$% exercise C the total property tax collecte re%ains the sa%e. It is si%ply

reistrib$te base on shifting %arket &al$es. ;o%e taxes will go $p0 b$t others will go

own. #e&en$es fro% property taxes increase $ner only two circ$%stances:

1. )o$ncil ecies to raise the %ill rate2. -itional properties are ae to the assess%ent C howe&er re&en$es fro% this

so$rce are acco%panie by increase costs to eli&er %ore ser&ices.

)itizens percei&e property tax increases to be si%ilar to0 for exa%ple0 increases to the

Pro&incial ;ales Tax 7P;TD e.g. changing it fro% (? to 4?8. =owe&er0 in the case of P;T0

the re&en$es for go&ern%ent rise si%ply beca$se prices on cons$%er goos rise or

inco%es rise0 generating %ore spening. Taxes tie to the econo%y grow with the

econo%y. Property taxes o not grow relati&e to the econo%y an therefore tax


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"

increases %$st be i%pose to eli&er the sa%e le&el of ser&ice. ig$re 2 shows the

i%pact of this reality on re&en$es at &ario$s le&els of go&ern%ent.

- corollary iss$e is that property taxes %ay not ae5$ately recognize a property owner!s

ability to pay. This is partic$larly proble%atic for people who are on fixe inco%es an

whose property &al$es are escalating relati&e to others in their city. This inability toa/$st to owners! ability to pay can lea to perceptions of ine5$ity an $nfairness when

property tax increases are i%pose.

Real 'e ca'ita evenue go9t% 1550-200

56%

43%

1%

Municipal

Provincial

Federal

igue 2 The real per capita re&en$e growth of %$nicipal0 pro&incial

an feeral go&ern%ent in )anaa between 1,, an 2*i

The %itigation of these iss$es an the esire to a&oi $nfairly b$rening property tax

payers0 has also contrib$te to the $nwillingness of local go&ern%ents to increaseproperty taxation.

o9t% .oesn&t 8ay fo o9t%

-s note abo&e0 one of the ways that %$nicipalities increase their re&en$es fro%

property taxes is to ha&e new properties ae to the assess%ent pool. In #egina0 the

strongest growth to the assess%ent pool is $e to new resiential ho$sing. =owe&er0

this growth also co%es with ser&ice obligations C garbage collection0 winter roa

%aintenance0 fire an police ser&ice0 park %aintenance0 etc.

The )ity of #egina has spent so%e ti%e analysing the costs associate with resientialgrowth. There are se&eral ifferent types of cost associate with that growth.

1. Costs associated with the construction of new infrastructure7roas0 water0sewer0 etc.8. These costs are generally co&ere by the e&elopers of new

s$bi&isions an passe on to property owners thro$gh the cost of their

properties.

2. Costs associated with service deliveryas escribe abo&e C garbage collection0winter roa %aintenance0 fire an police ser&ice0 park %aintenance0 etc. The


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'

)ity of #egina has only recently beg$n to co%pare the re&en$es generate by

growth to the costs associate with growth an a pattern has e%erge

s$ggesting that they on!t line $p. Ahat appears to be happening is that0 as new

properties are ae0 for a perio of ti%e ser&ices can be absorbe. or

exa%ple0 each garbage ro$te can absorb a few new ho$sehols with %ini%al

cost increase. =owe&er0 at so%e point a whole new ro$te nees to be ae0with the res$lting nee for new e5$ip%ent an aitional personnel. Th$s

ser&ice growth costs ten to escalate in a repeating cycle where they grow

slowly for a few years an then /$%p in a larger step. In the past se&eral years0

growth re&en$es ha&e generally been abo$t the sa%e as growth relate costs

7pro&iing the sa%e ser&ices to %ore people6ho$sehols8. =owe&er 2110 a

significant /$%p in costs occ$rre. In that year0 growth relate costs grew by


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(

igue 3 )$%$lati&e growth in pro&incial tax re&en$es since 1,*, as co%pare with

c$%$lati&e growth in operating reso$rces pro&ie by the Pro&ince to

%$nicipalities.

Expenditures

"nflation

)itizens $nerstan that prices increase fro% year to year. The )ons$%er Price Inex 7or)PI8 is $s$ally the way we $nerstan how %$ch prices ha&e increase. The )PI is base

on a basket of goos that is typical for a fa%ily. #esearch has shown that this basket of

goos is not a $sef$l way of $nerstaning how costs increase for %$nicipalities.

ationally0 %ore an %ore cities are beginning to $se so%ething calle the 3$nicipal

Price Inex0 73PI8. This is base on a basket of goos %ore typical for cities 7incl$ing

the rising costs associate with constr$ction8. #egina began $sing the 3PI %ethoology

in 211. ig$re ' shows that0 for #egina0 the 3PI has been as %$ch as fo$r ti%es the

)PI 7212 C 3PI: '?D )PI 1?8.

The iss$e of high inflationary press$res is co%po$ne when one co%pares the

increase costs with the re&en$e generate by property tax increases0 the pri%ary waythe %$nicipality has to respon to inflation 7ass$%ing that ser&ice le&els re%ain the

sa%e8. This is beca$se only abo$t half of the city!s re&en$es co%e fro% property taxes.

Th$s0 as shown in ig$re (0 to f$lly co&er the inflationary press$res of the whole b$get0

one wo$l ha&e to increase property taxes by o$ble the a%o$nt. - 1? increase in the

%ill rate nets the )ity of #egina only


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4

Consumer Price Index vs Municipal Price Index

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

2009 2010 2011 2012 2013

(Forecast)

%annualgrowthincosts

Regina CPI

Regina MPI

igue )o%parison of #egina!s )ons$%er Price Inex with the 3$nicipal Price Inex showing the

ifference in inflationary press$res. )PI is rawn fro% ;tatistics )anaa infor%ation $sing the ece%ber)PI for each year. 3PI is e&elope $sing a co%bination of so$rces0 pri%arily rawn fro% ;tatistics

)anaa tables.

ort$nately0 the )ity has so%e control o&er other re&en$es s$ch as fees an charges an

so%e inflationary press$res can be aresse thro$gh re&en$e increases in these other

areas. =owe&er0 there are %any re&en$es0 s$ch as the 3$nicipal +perating Grant0 o&er

which the )ity has no control. If these on!t increase at the rate re5$ire to co&er

inflation the )ity can only respon thro$gh greater %ill rate increases0 a eferral of

flexible costs0 ser&ice re$ctions or so%e co%bination of all three.

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

TotalAnnualRevenues

1.7% increase (CPI) 3.5% increase (MPI)

Costs vs Property Tax Revenues

Total Annual Cost Increase(assuming $350 million budget)

Revenue Increase from PropertyTaxes assuming mill rateincrease=inflation

igue * The co%parison between potential property tax re&en$es an inflationary costs ass$%ing each

rises by the rate of inflation. +n a


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*

Ca'ital

There are se&eral trens that ha&e le to a significant gap in the ability to ae5$ately

%aintain infrastr$ct$re for )anaian %$nicipalities:

The responsibility for an ownership of p$blic infrastr$ct$re has0 o&er the last ( years

has gra$ally transferre fro% the Go&ern%ent of )anaa to local go&ern%ents 7seeig$re 48. In 1,((0 the Go&ern%ent of )anaa owne an was responsible for '"? of

p$blic infrastr$ct$re an local go&ern%ents hel only 22?. In 2* those ratios ha

flippe0 where local go&ern%ents owne an were responsible for '9? of p$blic

infrastr$ct$re an the Go&ern%ent of )anaa hel only 1*?. To arri&e at this re&ersal0

(4? of all p$blic infrastr$ct$re o&er the last ( years was e&elope by local

go&ern%ents. Thro$gho$t this perio0 the pro&incial go&ern%ent share of p$blic

infrastr$ct$re re%aine steay at aro$n "'?. This transition in responsibility occ$rre

with little or no change in the taxing or re&en$e generating a$thorities of %$nicipalities

who are0 by an large0 hea&ily epenent on property taxation.

igue 6 )hanging responsibility for p$blic infrastr$ct$re since 1,((.ii

In )anaa0 feeral an pro&incial transfers to local go&ern%ents to s$pport

infrastr$ct$re renewal ha&e not kept pace with the nee. Transfers fro% other le&els of

go&ern%ent for infrastr$ct$re costs recognize that the infrastr$ct$re of any gi&en%$nicipality is not si%ply $se by that %$nicipality!s citizens. or exa%ple0 roaways

are a key aspect of the econo%y0 pro&iing the %eans for local0 regional0 national an

international trae. #ecreation an c$lt$re facilities are $se by citizens fro% the

region an %ay e&en be attractions fro% a to$ris% perspecti&e. 3$nicipalities can only

raise property tax re&en$es fro% its own citizens an transfers fro% other le&els of

go&ern%ent ser&e to %itigate the costs that sho$l be borne by the econo%y in general.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

PercentageHeld

Federal Provincial Local

Share of Ownership of Public Infrastructure Stock

1955 2007


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The i%pact of eclining transfers %eans that a greater portion of the cost of

infrastr$ct$re renewal %$st be borne by a narrower gro$p of tax payers.

@lti%ately0 to a&oi $nfairly b$rening citizens0 %$nicipal ecisions %akers ha&e chosen

to efer the in&est%ent. This eferral of in&est%ent is co%po$ne by the strain

%$nicipal go&ern%ents ha&e face on the re&en$e sie of the leger.

These factors ha&e contrib$te to a large gap between what the )ity of #egina has been

in&esting in infrastr$ct$re renewal an what it sho$l be spening. -n esti%ate fro%

211 7$sing 2, ata an base only on the age of assets in relation to their a&erage

expecte life8 s$ggeste that there was a backlog in re5$ire in&est%ent of nearly


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neighbo$rhoo roas0 as one of their %ost i%portant iss$es. Ahile #egina is not

anticipating catastrophic fail$res of its assets0 looking beyon to other cities in )anaa

facing si%ilar iss$es to the )ity of #egina0 there ha&e been fail$res s$ch brige an

t$nnel collapses attrib$table to si%ilar iss$es.

The )ity of #egina has strategically atte%pte to %o&e aitional operating f$ns intocapital b$gets to offset the loss of capital reso$rces for the reasons o$tline0 b$t this

effort has ha an i%pact on operational capacity.

:'eations

The )ity of #egina has been growing at a significant rate o&er the last fi&e years. The

%ost recent cens$s places #egina a%ong the top fastest growing cities in )anaa when

co%pare to the pre&io$s cens$s. This growth rate creates increase e%an on )ity

ser&ices b$t0 as o$tline in the Revenues section0 oes not always create an e5$al

a%o$nt of increase re&en$es. Growth creates press$re on the 5$ality0 le&el0 an

consistency of the ser&ices the )ity pro&ies.

-n aitional press$re the )ity faces in operations is that0 since 2110 the )ity of #egina

has been strategically growing its ann$al )$rrent )ontrib$tion to )apital 7the ollars

fro% the General +perating B$get that are $se to s$pport capital renewal8 to offset

the loss of in&est%ent fro% other orers of go&ern%ent. Between 21 an 21"0 the

)ity!s contrib$tion to capital renewal grew by 91.,? 7see ig$re 98.

$0.0

$5,000.0

$10,000.0

$15,000.0

$20,000.0

$25,000.0

$30,000.0

$35,000.0

2013 Budget2012 Budget2011 Budget2010 Budget

Contributions to Capital from Operating

igue Growth in the a%o$nt allocate ann$al to s$pport the renewal of capital infrastr$ct$re since the

e%ise of the eeral Pro&incial6Territorial Infrastr$ct$re $n. ;ince 210 the contrib$tion of )ity own>

so$rce re&en$es to capital has grown by 91.,?.


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1

inally0 o&er the co$rse of the last 2 years0 in an effort to c$t costs an stay within the

bo$ns of reasonable tax increases0 )ity -%inistration has re$ce e%ployees. In

2110 the )ity of #egina ae new e%ployee positions to ser&ice growth an0 in oing

so0 reache the n$%ber of e%ployees that the )ity ha in the 1,9s0 when pro&incial

operating in&est%ent initially ecline. Ahile so%e aspects of %$nicipal work ha&e

been si%plifie an %ae %ore efficient with the intro$ction of new technology0 otherser&ices ha&e si%ply isappeare or been absorbe into the work of others. This

ine&itably has an i%pact on the 5$ality of ser&ice recei&e by citizens.

Impact:

The pict$re painte herein e%onstrates the nee for change. Ae are reaching the

point where the )ity is not financially s$stainable. )learly0 there is gap between the

ser&ices the )ity has the financial capacity to eli&er an citizens! expectations.

In orer to narrow this gap0 the )ity of #egina has been working har to fin efficienciesthat will a&oi the nee to increase the cost to citizens $nnecessarily. This effort began

in 2(64 with the )ore ;er&ices #e&iew0 b$t contin$es to toay. =owe&er0 the gap

contin$es to wien an internal efficiencies will be ins$fficient to narrow it. There are

only three options a&ailable0 which can be $se inepenently or in concert with one

another:

arn %ore re&en$eo )harge %ore $sing c$rrent %echanis%s s$ch as property taxes an feeso e&elop new6expane %echanis%s that allow the b$ren of ser&ice

costs to be allocate %ore broaly 7e.g. to &isitors to the )ityD to non>

resient co%%$tersD etc.8

o ;ec$re %ore f$ning fro% other le&els of go&ern%ent

;pen less

o )ontin$e to fin efficiencies an %ake i%pro&e%ents in how ser&ices areeli&ere

o eli&er fewer ser&iceso eli&er the sa%e ser&ices with lower ser&ice le&els 7e.g. shorter ho$rs of

operation0 less fre5$ent garbage pick $p0 etc.8

o b$siness in ifferent wayso Ientify alternati&e ways of oing b$siness so that it is %ore efficient an

effecti&e 7e.g. increase web base ser&ice eli&ery0 P$blic Pri&ate

Partnerships0 etc.8

The )ity of #egina is alreay acti&ely exploring these options an ientifying

opport$nities. =owe&er0 it will be i%portant that citizens $nerstan the context of any

reco%%enations that co%e forwar.


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Efficiency "nitiatives

The )ore ;er&ices #e&iew pro&ie the )ity of #egina with opport$nities to aress

inefficiencies while i%pro&ing ser&ices. +&er the ti%e since the reco%%enations of

the )ore ;er&ices #e&iew were presente in 240 the )ity has sa&e in excess of


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12

si%ple an low i%pact opport$nities0 beca$se of the efforts o&er the past se&eral years

b$iling on the )ore ;er&ices #e&iew0 these opport$nities are %$ch %ore li%ite.

Summary of Efficiencies

Ahile the c$lt$re of the )ore ;er&ices #e&iew contin$e0 res$lting in the ientification

of efficiencies each year0 the work took on a new energy with the intro$ction of

;trategic oc$s 21261"0 enorse by )o$ncil in 3arch0 212 7)#12>""8. The

ientification of efficiencies contin$e thro$gh this effort0 b$t the foc$s also t$rne to

options that co$l potentially ha&e %ore i%pact on the p$blic s$ch as ser&ice re$ctions

an alternati&e ser&ice eli&ery options.

The )ity of #egina has only beg$n to ha&e s$ch isc$ssions with the p$blic an they are

iffic$lt an often contro&ersial. The consieration of closing so%e o$toor swi%%ing

pools 7enie by )o$ncil in 21"8 an the p$blic pri&ate partnership 7P"8 for theAastewater Treat%ent Plant are /$st two exa%ples. ;$ch isc$ssions will re5$ire the

contin$e engage%ent of citizens in a isc$ssion abo$t the gap an options to aress

it.

In the %eanti%e0 the )ity of #egina has contin$e to %ake e&ery effort to i%pro&e the

efficiency of its operations. - etaile s$%%ary of the efficiencies that ha&e been

$nertaken since the )ore ;er&ices #e&iew is attache in -ppenix -. -n analysis of

those efficiencies is pro&ie below. They are gro$pe in two ifferent ways to pro&ie

so%e basic organization to the categories an to e%onstrate how the organization is

approaching the effort.

To ate0 "2" efficiencies ha&e been ientifie 7beyon the )ore ;er&ices #e&iew8. +f

those0 only 1'2 7''.?8 ha&e act$ally ha the ollar &al$e of the efficiency calc$late. It

is clear that the total ollar &al$e of the efficiencies ientifie is significantly higher than

the n$%bers cite here.

It is i%portant to note that0 across the boar0 efficiencies fo$n ha&e been reallocate

to other work in the )ity of #egina. To the extent the )ity $nerstans the &al$e of its

efficiencies0 one can ass$%e that0 ha they not been fo$n:

)osts to citizens wo$l ha&e necessarily increase by a si%ilar a%o$nt0 or

;er&ice le&els to citizens wo$l ha&e ecrease to re$ce costs0 or ;o%e co%bination of the abo&e wo$l ha&e occ$rre.

8ocess "m'ovement

The single largest class of efficiencies $nertaken by the )ity of #egina is in the area of

process improvement. Hey to this approach has been a large0 organization wie


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1"

technology initiati&e the )ity refers to as Business Transformation. Thro$gh this

initiati&e0 the )ity is atte%pting to $pate its software an technology syste%s to

i%pro&e a$to%ation an fin efficiencies. =owe&er0 a key aspect of the initiati&e is to

ens$re the processes in b$siness areas are well>esigne0 recognizing that technological

i%pro&e%ents to s$pport weak processes are less likely to achie&e the esire res$lts.

Process i%pro&e%ents ha&e occ$rre beyon the i%pact of Business Transformation.

These incl$e the reesign of constr$ction processes0 i%pro&e %anage%ent processes0

etc.

8ocess "m'ovements nnual Savings :ne Time Savings

+usiness Tansfomation ;162


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inally0 the )ity has a n$%ber of s$ccessf$l partnerships that pro&ie ongoing &al$e an

s$pport0 s$ch as safety partnerships with ;GI an a partnership with the #egina

xhibition -ssociation Lt. to operate the )ooperators -renas.

nnual Savings :ne Time Savings

8atnes%i's ;1*line parking ticket pay%ent0 new telephone software

for ;er&ice #egina0 an technological i%pro&e%ents in s$ch e5$ip%ent as power

sweepers an rakes.

nnual Savings :ne Time Savings

Tec%nological "m'ovements ;365


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1(

freeing $p ti%e fro% tasks that ha pre&io$sly been hanle %an$ally. These tasks

occ$r in inance0 =$%an #eso$rces an IT.

utomation nnual Savings :ne Time Savings

+usiness Tansfomation ;101


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14

Conclusion

The effort of the )ity of #egina to %ini%ize the press$re on tax an fee payers has been

significant. The financial &al$e of these efficiencies has been calc$late for fewer than

one>half of the opport$nities that ha&e been i%ple%ente. )onsiering only the ollar

&al$e of those efficiencies that ha&e been esti%ate0 ha the opport$nities not been

ientifie an the associate costs reco&ere excl$si&ely thro$gh property taxes0

resients co$l ha&e been paying an aitional 11? >> 19? per year C an this is an

esti%ate that excl$es the &al$e of half of the initiati&es that ha&e been i%ple%ente. It

is recognize that it is $nlikely that citizens wo$l ha&e tolerate s$ch tax increases. It is

%ore likely that citizens wo$l ha&e seen significant rops in ser&ice le&els 7e.g. ho$rs of

operation of recreation facilities0 care an %aintenance of parks0 winter roa

%aintenance0 etc.8.

Total nnual Savings :ne Time Savings

Coe Sevices Revie9 (CSR) ;


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- "

.e't=

8ogam ea Efficiency .esci'tion -nnual :ne tim

Aater

Aork

;er&ices 29

=yro xca&ating to

expose @tility Lines > *

%an crew own to a "

%an crew Process I%pro&e%ent


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.e't=


Aater

Aork

;er&ices 21

)rane hoists installe on

%anhole b$iler tr$ck Process I%pro&e%ent

Aater

Aork

;er&ices 21

@niirectional l$shing >

i%pro&e water 5$ality

with the istrib$tion

syste% Process I%pro&e%ent

Aater

Aork

;er&ices 21

)$rbstop replace%ent >

efficiency sa&es 2>

"6ti%e $se Process I%pro&e%ent

%onitor an acco$nt for

water $sage Process I%pro&e%ent

Aater

Aork

;er&ices 21

;al&aging parts fro% ol

water hyrants Process I%pro&e%ent charging for the

acceptance of the li5$i

waste Process I%pro&e%ent

)ity

+perations 211

acilities )onition

-ssess%ent an )apital

Planning Pro/ect Process I%pro&e%ent

+pen ;pace

Jn&iron%en

tal ;er&ices 211

-sset 3anage%ent >)oorinating work orer

an tree infor%ation Process I%pro&e%ent

#oaways

an

Transporta>

tion

;er&ices 211

Ainter 3aintenance >

Installation of -KL tech Process I%pro&e%ent

Transit 211

)@T- Inno&ation -war

for the #>)ar an

-$to%ate are

)ollection Process I%pro&e%ent

Aater

Aork

;er&ices 211

Global Transportation

=$b ;er&icing Pro/ect

Tea% Process I%pro&e%ent

Aater

Aork

;er&ices 211

-2 -nalysers >increase efficiency0

acc$racy an capacity

for the AATP Process I%pro&e%ent

Aater

Aork

;er&ices 211

I%ple%enting e&ice to

carry hea&y roto>rotting

e5$ip%ent own

base%ents Process I%pro&e%ent


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.e't=


+pen ;pace

J

n&iron%en

tal ;er&ices 212

=ortic$lt$re Tea%6Aork

@nit > lowerbe

progra% Process I%pro&e%ent ;tor%

)hannel #ehabilitation Process I%pro&e%ent

#oaways

an

Transporta>

tion

;er&ices 212

)oncrete 3eian 3o$l

7Pan8 for the ;lip or% Process I%pro&e%ent


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- 4

.e't=


Aater

Aork

;er&ices 212

;afety atabase > a

centralize location of

all A;) safety relate

%aterials Process I%pro&e%ent

)ity

+perations 21" #ealign%ent Process I%pro&e%ent ;elf ;er&e

Proc$re%ent Process I%pro&e%ent

#oaways

an

Transportat

ion ;er&ices 21"

$st ;ilos Pro/ect >

syste% to %anage $st

going into -sphalt 3ix

an a/$st%ent %ae to

-sphalt pricing Process I%pro&e%ent

access to training

sche$les 7a year at a

glace8 Process I%pro&e%ent

ire J

Protecti&e

;er&ices

212

>

21"

)reation of ;hare

;er&ices -%in ;$pport

%oel > 7-;T8 Process I%pro&e%ent


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- *

.e't=


ire J

Protecti&e

;er&ices

212

>

21"

@ni&ersity of #egina >

Training Process I%pro&e%ent

ire J

Protecti&e

;er&ices

212

>

21"

I%ple%entation of

3obile )o%p$ter -ie

ispatch Tech Process I%pro&e%ent

ire J

Protecti&e

;er&ices

212

>

21"

%bee =# -ssociate

foc$s on

Aellness6;afety > re$ce

Ti%e Lost by 19? an

;ick by 4? Process I%pro&e%ent

ire J

Protecti&e

;er&ices

212

>

21"

#elocation of +pt

Branch 3anage%ent

;taff Process I%pro&e%ent

ire J

Protecti&e

;er&ices

212

>

21"

eploy%ent Protocol >

ecrease initial

eploy%ent Process I%pro&e%ent

21"

e&elop%ent of new

attenance tracking

proce$res 7re$ction of

*2?8 Process I%pro&e%ent

21"

ew ;taffing 3oel for

%ergency

)o%%$nication )entre >

enhance ser&ice eli&ery Process I%pro&e%ent ire J

Protecti&e

;er&ices

212

>

21"

Pilote IP- tech for

)orporation Process I%pro&e%ent

21"

ntere into a

%e%oran$% of

$nerstaning with

Parklan )ollege Process I%pro&e%ent

21"

)os%opolitan Learning

)entre > contract

pre&io$sly on a irect

billing %oel Process I%pro&e%ent

21"

Para transit Booking

Ainow > fro% 1' to *

ays Process I%pro&e%ent

Transit

212>

21" T;+ Position Process I%pro&e%ent

Transit

212

>

21"

#et$rn to Aork

)oorinator Position Process I%pro&e%ent

Transit

212

>

21"

)anaa ay )hallenge >

( ays in/$ry free Process I%pro&e%ent


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-"

.e't=

8ogam ea Efficiency .esci'tion -nnual :ne ti

=# 212

-$to%ation. =# a$to%ate the processing of entitle%ent banks within the

payroll. This res$lte in eli%inating oing this process %an$ally.


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.e't=

8ogam ea Efficiency .esci'tion -nnual :ne ti

leet 21'

+ther. Planne i%ple%entation of Inno&ation #ecognition Progra%. This

will help recognize an rewar inno&ations within the epart%ent. This

progra% was e&elope to increase epart%ent %orale0 while also

pro&iing a %etho for all new ieas to be capt$re an potentially

i%ple%ente in f$t$re years.

Total :t%e


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En#notes

iKaner Ploeg0 ).G.0 "roblematic "roperty Ta#$ %hy the "roperty Ta# &ails to Measure 'p and %hat to Do

(bout )t 7)anaa Aest o$nation0 o&e%ber0 298.iiKaner Ploeg0 ).G.0 *ew Tools for *ew Times$ )nnovative )nfrastructure &unding, &inancing, and Delivery

7)anaa Aest o$nation0 Presentation at ational Infrastr$ct$re ;$%%it 7#egina80 Oan$ary0 2*0 211.8

city of regina efficiencies report 2014

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