Performance Measures

Performance Measures for Municipalities

In 2000, Ontario municipalities began participating in a new program of performance measurement – the first comprehensive program of its kind in North America. Specifically, municipalities are now required to annually provide the Ministry of Municipal Affairs and Housing with performance measurement information, and then report performance results to their taxpayers.

Why is Performance Measurement Important for Municipalities?

Municipal decision-makers want to be efficient and deliver value for local services. Taxpayers need to know how their tax dollars are spent and how their services compare both year-to-year and in relation to others. Governments choose to use performance measurement for four main reasons.

1. Measurement helps improve performance.

Sports teams track scores and important performance statistics to make the changes they need to win. People who own RRSPs follow how their portfolios are performing and adjust their investments to ensure adequate retirement income. Businesses monitor costs, production, customer satisfaction and profit to stay in business, earn reasonable rates of return and report results to their shareholders. It is the same in government. Government programs exist to provide services and improve the quality of life. Performance measurement identifies ways for municipalities to provide high-quality, efficient and effective services.

2. Performance measurement strengthens accountability.

Government today is very complex, so it is important that elected officials and public servants inform taxpayers what the government plans to achieve, what it is actually accomplishing and what public services cost. With this information, taxpayers can make informed decisions about the level of services they desire. This notion of accountability is fundamental to our form of government.

Measuring performance and setting targets effectively establishes an understanding between municipal staff and council, under which all parties develop a clearer understanding of the expected results or standards for each service area. The result is a shared accountability framework between staff and council, which benefits everyone. It helps focus council’s decision-making and helps municipal staff understand the level and type of service delivery required. For the most part, municipalities already serve their taxpayers well, and that is something the public has a right to know. Performance measurement demonstrates to taxpayers how they are being served and the value they are receiving for their tax dollars.

3. Performance measurement stimulates productivity and creativity.

Performance measures can be used to create new incentives and rewards to stimulate staff creativity and productivity. A growing number of municipalities have pursued this approach, including Ajax, Brampton, Kingston and Owen Sound. In fact, many municipalities have been able to cut costs while maintaining or even improving service because they implemented the creative ideas of staff directly involved in service delivery.

4. Performance measurement improves budget processes.

Performance measures can help municipalities develop budgets that are based on realistic costs and benefits, not just historical patterns. Performance measurement can also improve the monitoring of municipal budgets by measuring whether the budget and expected service levels are being met.

Download the Oliver Paipoonge 2004 Performance Measures

Download the Oliver Paipoonge 2005 Performance Measures

Download the Oliver Paipoonge 2006 Performance Measures 

For further information follow this link Ministry of Municipal Affairs - Performance Measures