Review of Services Questions & Answers
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Questions:
Why are we doing a review of services?
What else are we doing to meet our fiscal challenges?
What is the internal efficiencies strategy?
What is the Review of Services?
How were the services under review selected?
What was the public policy criterion used to select the first group of services for review?
What was the financial criterion used to select the first group of services for review?
What was the interest in review criterion used to select the first group of services for review?
How did the Executive Management Team make the final selection of services to be reviewed?
What service areas will be reviewed in 2004?
Why are there no specific details on how to improve the services in the draft recommendations?
Who will be in charge of Phase II of the Review of Services?
What services will be reviewed next?
Answers:
Q. Why are we doing a review of services?
A: The City of Kingston is facing serious fiscal challenges over the next several years that will continue unless we are able to find long-term fiscal solutions. Council initiated the Review of Services as one of the strategies to help the city meet those fiscal challenges and reduce the burden on our taxpayers. The Review of Services will also provide us with an opportunity to show the value and merit of the services and programs we provide.
Q. What else are we doing to meet our fiscal challenges?
A: On March 30, 2004, Council was provided with a report from the Executive Management Team (EMT) on how to achieve a more sustainable financial position for the Corporation by the year 2008. The report described a five-year plan that relies on a limited increase in taxes and progressive reduction in the use of reserve funds. In addition to the Review of Services, an internal efficiencies strategy was identified as a way to help achieve these reductions.
Q. What is the internal efficiencies strategy?
A: The internal efficiencies strategy is a short-term strategy that requires each department, division and unit to explore and identify what they can do to help the corporation live within its means and achieve its fiscal targets. Each department is being directed to limit its net operating budget increases to 2.5% for 2005 and 3.0% for 2006. For 2005, in order to reach our budget target, we will have to find at least $1.75 million to make up the shortfall between expenses and revenues.
Q. What is the Review of Services?
A: The Review of Services is a process that will look at all the services and programs we provide to the residents of Kingston to determine if we are delivering those services and programs in the most efficient and effective manner to best meet the needs of the community. This is a two-phased process that will take place over many years.
Q. What will happen in Phase I?
A: Phase I begins in 2004. While Phase I could result in a budget reduction, it will be more concerned with to what extent a service achieves public policy goals and is in line with the strategic direction of the Corporation. Why do we provide the service? Should we be providing the service? If the answer is yes, Phase II begins, and we will look at ways we can deliver the service or program more efficiently and effectively.
A: Phase II will be developed in 2005 with the purpose of ensuring that the most appropriate management and service delivery models are used to find better, more cost effective ways of delivering the services and programs. We will look at what level of service should be provided and how those services should be provided. This will be done through internal improvement initiatives or by exploring Alternate Services Delivery.
Q. How were the services under review selected?
A: For 2004, at Council's direction, the Executive Management Team (EMT) looked at non-mandatory services only - those services that could be completely discontinued. The services were assessed on three criteria: public policy, financial and if there had been an interest in reviewing the service. Each criterion was given a weighting resulting in a score for each service.
Please note: These criteria were used only as a starting point to select the first group of services for review. Different criteria, much more in depth, will be developed in June, 2004 to review those services.
Q. What was the public policy criterion used to select the first group of services for review?
A: The primary beneficiary of the service is an individual. Its weighting was 50%.
- This means services that are charged and provided to an individual customer (s) rather than to the community at large.
- This also means the service is characteristic of a private good, which typically requires a transaction for the targeted group to access the service rather than the service being characteristic of a public good, where the service is accessed by many with typically no transaction required and the service is generally funded by the tax base.
Q. What was the financial criterion used to select the first group of services for review?
A: There is a potential for real fiscal savings. Its weighting was 35%. If we discontinued providing the service or program, the results might be:
- net reduction in operating budget shortfalls
- reduction of on-going or anticipated capital expenditures
- proceeds / new revenue from the sale / lease of assets
Q. What was the interest in review criterion used to select the first group of services for review?
A: Has the service been regularly referred to as a possible service to be divested or discontinued? Its weighting was 10%.
Q. How did the Executive Management Team make the final selection of services to be reviewed?
A: After the scoring exercise, the EMT reviewed the services that received the highest scores and considered the capacity of the organization to complete the review work in those areas and the scope of the review work for each area. A limited number of smaller service areas were chosen so we can assess and refine our process before engaging in a review of our larger service areas. Council approved the recommendations of the EMT on June 1, 2004.
Q. What service areas will be reviewed in 2004?
A: Council approved the EMT recommendation to review the following services:
- city property and city facility leasing - Department of Operations
- private bus charters for local and out of town destinations - Department of Operations
- Lake Ontario Campground operations - Department of Community Services
- recreational camp programs - Department of Community Services
- golf course operations at Belle Park - Department of Community Services
Q. Why are there no specific details on how to improve the services in the draft recommendations?
A: The draft recommendations complete Phase 1 of the review of services. The purpose of Phase I was to define each of the five services, gain a better understanding of how they contribute to the good of the community and identify if there are any services that are non-essential and can be discontinued. It was not intended to be a full operational review of the services, and that is why the draft recommendations do not include specific details on how to improve the services.
For those services Council decides to continue providing to the community, we will look at how we can improve our delivery of the services in Phase 2.
A: At the March 22 meeting, Council will make their decisions on the recommendations for the five services under review. The next steps will depend on Council's decisions. If Council decides to discontinue a service, a plan will need to be developed and implemented to exit the service or program. For those services Council decides to continue providing, action plans will be developed depending on Council's direction.
Q. Who will be in charge of Phase II of the Review of Services?
A: Council established a Task Force to oversee the process and provide guidance during Phase 1 of the review of services. Council has not made a decision on who will be responsible for overseeing the next steps in the process.
Q. What services will be reviewed next?
A: At this time, we do not know what services will be chosen for review or how and when those services will be chosen.
