Recommendation: Endorse the City Manager s report CM dated May 16, 2013.
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- Charles Carter
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1 Page 1 of Report CM City Manager's Office TO: Committee of the Whole SUBJECT: City of Burlington Service Management & the Service Portfolio Report Number: CM File Number(s): Report Date: May 15, 2013 Ward(s) Affected: All Date to Committee: May 30, 2013 Date to Council: June 10, 2013 Recommendation: Endorse the City Manager s report CM dated May 16, Purpose: Address goal or action in strategic plan Establish new or revised policy or service standard Respond to legislation Respond to staff direction Address other area of responsibility Reference to Strategic Plan: Background: Vibrant Neighbourhoods Prosperity Excellence in Government N/A Burlington residents and City of Burlington Council and staff want to be proud of their local government and what they deliver and accomplish. All stakeholders want to be confident the city is wellmanaged, forward-looking and responsible as it provides highquality service delivery resulting in satisfied service-users. Traditionally, the City has managed services with budgets and staffing reflecting a functional and corporate department organizational structure. In early 2012, the City chose to re-focus its investments in services through the customer lens; instilling performance measurement and continuous improvement as keystones for accountability. This Council was introduced to the concepts and use of performance measurement through Results Based Accountability (RBA) by Mark Friedman and continuous improvement through Business Process Management (BPM) in March 2012 (CC-07-12). Subsequently, the concept of a service-based budget was introduced in April 2012 with a commitment to provide a service
2 Page 2 of Report CM Discussion: based budget (SBB) for the fiscal year 2015 (CC-09-12). Introduction Governments are increasingly being called upon to make difficult choices among competing priorities and to deliver and demonstrate value in the services they provide. These call for a clear understanding of the services delivered a Service Portfolio. A Service Portfolio is the complete list of services, both public and internal, provided by the City of Burlington. Each service has an assigned service owner who is responsible for developing and managing the service strategy and business plan for that service. Business Plans will also include results based performance measures and set the stage for continuous improvement. The identification of individual services will facilitate service based budgeting and financial reporting. Service based budgeting is considered by many to be a more citizen-centric way of presenting government budgets. Budgets are not presented in the traditional department format, but rather by service. Examples of services could be winter control, tree management and fire emergency response. The City of Burlington is working towards presenting Council and the community with a service based budget for The City s budget will be presented in easily understood terminology and will allow for the presentation of accurate costs and value. This assists with the difficult decisions that are facing all levels of government around increasing and decreasing service levels and associated funding requirements for the strategic level of service chosen. Clarity of roles and responsibilities is an important component of governance. With respect to services: Council is responsible for making strategic decisions regarding the commissioning and decommissioning of services and increasing or decreasing levels of service. Senior Management and the Service Owner are responsible for tactical operations to deliver the services and reporting on those approved services. What is Service Management? A framework to support: a consistent and equitable approach to performance measurement and continuous improvement (through Business Process Management), the corporate discipline of accountability, alignment of operations to achieve Council strategic directions
3 Page 3 of Report CM and corporate priorities and objectives informed decision making of Council, Senior Management and Service Owners. Tools to support Burlington's Service Management, performance measurement, continuous improvement and accountability include: Results Based Accountability Business Process Management Service Based Budgeting Enterprise Risk Management Hoshin Kanri X-Matrix The Service Management Framework is attached as Appendix A What is a Service Portfolio? A listing of public and internal services delivered by the City public services that are delivered directly to the residents/community; also known as the service catalogue internal services that are delivered to the service owners responsible for public services; also known as shared services. a dynamic mechanism to capture the service and profile (e.g. service name, service description, service owner, etc.) The current Service Portfolio is attached as Appendix B The Service Portfolio was created through: research of services in comparable Canadian and U.S. cities review of current listing and information/material regarding City of Burlington services significant dialogue with General Managers, Directors and managers How does the Service Portfolio link to the Strategic Directions and Corporate Priorities? Strategic Directions A focus on services creates value in the community through investment in areas such as: safety and security measures for our neighbourhoods, mobility options for citizens, community facilities and the protection of our natural assets (Vibrant Neighbourhoods); planning and development of new and existing properties, environmental sustainability measures, employment and lifestyle opportunities (Prosperity); and community engagement, maintaining our community facilities and empowering our staff (Excellence in Government) Corporate Priorities Managing by service positions the organization for success through: recruitment, training and retention of staff (People),
4 Page 4 of Report CM effective use of technology and partnerships (Service) efficient, effective and economic delivery of services (Value) understanding the true cost of services (Investment) Roles & Responsibilities Council Maintain a strategic view of services by making decisions regarding: commissioning and/or decommissioning of services increasing and/or decreasing service levels appetite and/or tolerance for risk review of service portfolio i.e. what is delivered; not how it is delivered Senior Management, Service Owner & Staff Maintain an operational and tactical view of services by: making decisions regarding how services are delivered within the limits of Council approved service levels and budgets; determining, tracking/monitoring and reporting on performance and identifying risks; determining and implementing opportunities for continuous improvement reviewing services maintaining the service portfolio based on the decisions of Council; and delivering the services. Service Owner Expectations are outlined in Appendix C The Journey Timeline Implementation of a corporate service management system must be well planned and timed to embed the practices into the daily routines of Council, management, service owners and staff. Such a journey will take 3 to 5 years with the initial service based budget in 2015 bringing a culmination of the practices together. The first stages of the journey are planned as follows: Q3/13 to Q1/14: Defining - Implementation/learning of Service Management Toolkit, setting expectations, preparing business plans, understanding performance measures, data collection, conducting business process reviews, etc. Q2/14 to Q4/14: Refining - working out the kinks, finalizing business plans, performance measures, continuing with business process reviews, etc. Fiscal Year 2015: Transitioning - Data collection activities, performance measurement reviews, business process review activities, business plan review, business case development, etc.
5 Page 5 of Report CM and onward: Operating Service reviews including Performance Measurement and Continuous Improvement A diagram of the timeline is outlined in Appendix D What does a service look like in this framework? An example from the Service Portfolio The purpose of providing Council with an example is to demonstrate how the service framework components and tools are used. This example is: to be considered draft and therefore not complete or confirmed; intended for demonstrative purposes only; not for Council to delve into content. Property Tax Service Profile Property Tax Service Turn the Curve Example of Performance Measurement for Customer Satisfaction For a detailed view of the performance accountability example (considered to be draft and not confirmed or complete) refer to Appendix E. (Title: Property Tax) Decrease of unit cost per transaction as # of electronic Tax Payments Increase (y-axis: Unit Cost) Baseline Forecast Down (x-axis: Time)
6 Page 6 of Report CM Property Tax Service - Process Map Example For a detailed view of the business map (considered to be draft and not confirmed or complete) refer to Appendix F Property Tax Service Business Plan & Budget Example For a detailed view of the business plan including the budget (considered to be draft and not confirmed or complete) refer to Appendix G The service-based budget methodology including components and format are under development BUSINESS PLAN SUMMARY SERVICE NAME [Source: Service Portfolio] Property Tax Service REFERENCE TO STRATEGIC DIRECTIONS Excellence in Government DATE: SERVICE TYPE Public SERVICE OWNER Ann Marie Coulson, Manager of Financial Planning and Taxation SERVICE DESCRIPTION [Source: Service Portfolio] A public service to provide property tax billing and collection on behalf of the City, region and boards of education. [Source: Service Portfolio] FINANCIAL AND HUMAN RESOURCE REQUIREMENTS Operating Budget 2011 Actual 2012 YE Projection 2013 Proposed Budget Expenditure $1,166 $1,110 $1,017 Revenue $(2,850) $(2,496) $(2,487) Net Budget $(1,684) $(1,386) $(1,470) Capital Budget Expenditure Revenue Net Budget Staffing (FTEs) % of total City Expenditures Budget 0.59% 0.54% 0.51% Annual net budget per household ($) $(24.56) $(20.19) $(21.21) Change Management Management and service owners are responsible for updating the Service Portfolio as per Council decisions. It is expected such updates will coincide with Council decisions regarding commissioning and/or decommissioning of services and increasing and/or decreasing service levels.
7 Page 7 of Report CM Service Portfolio Reviews A review of the services will be required at periodic intervals. Council Review suggest a strategic assessment and review of the service portfolio in its entirety cycle to be determined in consideration of new Council term Council s strategic planning process Service Owner/Management Review individual service cycle to be determined in consideration of Council term other criterion to be determined Public & Internal Reporting Details of reporting are under development and will be brought to Council at a later date. Financial Matters: One-time funding was approved in the 2013 budget to create a centre of expertise to advise and support service owners on the tools and methods for measuring performance with results based accountability (RBA) and continuous improvement with business process management (BPM). There will be impact on other resources within the organization as business plans are drafted and confirmed, performance measures are identified and tracked and continuous improvement opportunities are realized. With respect to budgets, there will be a transition from the existing departmental/functional budgets to service based budgets. As previously mentioned, the service-based budget methodology including components and format are under development and impact from this transition will be addressed as identified. There will be an item included in the 2014 budget to engage a firm to conduct and consult with the public regarding service priorities. This public consultation, in addition to other information, is intended to support Council in 2015 with a strategic assessment of services as they prepare the strategic plan for the coming Council term. Communication Matters: The service management framework and the tools supporting the service portfolio have been introduced and reviewed with the Senior Management Team and the service owners on a number of occasions during 2012 and, most recently, in February In
8 Page 8 of Report CM addition, significant dialogue occurred among senior management and service owners as the service portfolio was developed. Councillors have had preliminary introduction to the service management framework and the service profile through discussions (in December 2012) with members of the team. Agencies and boards related to the City of Burlington (e.g. Burlington Arts Centre, Burlington Public Library, Team Burlington, etc.) have had limited introduction to the service management framework and the supporting tools. An introduction and education session is scheduled for June Introduction and education for residents and staff will continue throughout the timeframe leading up to and including the delivery of the 2015 service based budget. Conclusion: Governments are increasingly being called upon to make difficult choices among competing priorities and to deliver and demonstrate value in the services they provide. These call for a clear understanding of the services delivered; commitment to establishing, monitoring and adjusting service strategies and delivery through performance measurement and continuous improvement; and clarity in goals and objectives to establish individual responsibility and collective accountability. Respectfully submitted, Sheila Jones Jeff Fielding Kim Phillips Scott Stewart City Auditor City Manager General Manager, General Manager, Community & Development & Infrastructure Corporate Services Appendices: A. Service Management Framework B. City of Burlington Service Portfolio as of April 30, 2013 C. Service Owner Expectations D. The Journey to Full Service Management Timeline E. Property Tax Service Performance Accountability (Example) F. Property Tax Service Business Process Map (Example) G. Property Tax Service Business Plan (Example) Notifications: (after Council decision) Name Mailing or Address
9 Page 9 of Report CM Approvals: *required *Department City Treasurer General Manager City Manager Committee Disposition & Comments Council Disposition & Comments To be completed by the Clerks Department 01-Approved 02-Not Approved 03-Amended 04-Referred 06-Received & Filed 07-Withdrawn 01-Approved 02-Not Approved 03-Amended 04-Referred 06-Received & Filed 07-Withdrawn
10 Page 10 of Report CM Appendix A
11 Page 11 of Report CM Appendix B: City of Burlington Service Portfolio as of April 30, 2013
12 Page 12 of Report CM-07-13
13 Page 13 of Report CM-07-13
14 Page 14 of Report CM-07-13
15 Page 15 of Report CM-07-13
16 Page 16 of Report CM Appendix C Service Owner Expectations The Service Owner Serves as the single point of accountability for a service; may or may not be the technical subject matter expert. Owns and represents the service across the organization; manages and provides input concerning changes to their service(s); and serves as the key stakeholder in processes that enable or support the service(s). Service Business Plan Understands their service(s) (components, processes, risk, etc.) and provides key information concerning the service(s) as needed. Manages one or more services within the organization, regardless of where the underpinning technology components, processes or professional capabilities reside or report. Service Business Continuity Plan Liaises with key process owners throughout the life of the service; knows who to contact and where to obtain required information. Identifies opportunities for maintenance and/or continued improvement of service changes; and actively participates in service reviews (internal and external). Service Business Case(s) Service owners are also expected to work closely with Process Owners throughout the life of their service(s). Responsible for records retention for master documents in the appropriate corporate repository Denotes document of record
17 Page 17 of Report CM Appendix D The Journey to Full Service Management Timeline
18 Page 18 of Report CM Appendix E Property Tax Service Performance Measurements Example (considered to be draft and not confirmed or complete) SERVICE PROFILE INFORMATION [Source: Service Portfolio] 1. Who are our customers? What do they want? 2. How much did we do? Think in terms of numbers -quantity customer characteristic (e.g. # customers served) Performance Accountability Questions SERVICE NAME: SERVICE DESCRIPTION: SERVICE OWNER: CUSTOMER Property Owner / Tax Payer o Residents / home owner o Corporate / Business Owners PROPERTY TAX SERVICE A public service to provide property tax billing and collection on behalf of the City, region and boards of education. Manager of Financial Planning & Taxation Ann Marie Coulson CUSTOMER WANTS Value for taxes accurate & timely billing/collection/ information payment options / convenience Understanding of process Municipality, COB Predictable revenue to deliver services Policies and procedures are clearly documented and communicated to the public provide the service efficiently Council Effective Communication/ Engagement Peer comparison / benchmarking Are the tax payers in THEIR ward satisfied Halton Region receipt of their share of taxes School Boards receipt of their share of taxes 63,000 tax accounts processed semi- Data I need but don t annually currently collect o # of residential o # of corporate/business owners # tax bills issued o Cost to produce tax bill o Cost to mail tax bill
19 Page 19 of Report CM activity based (e.g. # applications processed) 3. How well did we do it? Think in terms of percentages, ratios, unit costs, etc. Take your pure numbers and convert them to rates or averages. Customer satisfaction = did we treat you well? 4. Is anyone better off? Think in terms of numbers and rates that speak to quantity and quality and effect be specific Take your numbers at two points in time (a comparison) Think of outcomes percentages or rates Customer satisfaction = did we help you with your problem? # of accounts using alternative payment methods o # paid electronically (internet/telephone banking) o # preauthorized payment # of delinquent accounts o Total amount in arrears by year o # of arrears notices sent out o # of accounts requiring collection letters # of customer enquiries o # of customer enquiries answered o # of telephone calls o # of s Total $ amount revenue collected Allocation of total $ revenue to other agencies (i.e. region, school boards) # of engagement opportunities (e.g. bills, website, advertisements) % of accounts paid on time # of property owners paying on time Unit cost per account (incl. staff costs, bill method costs) % of confirmed assessed value changes processed on time. Year-to-year change in % customer satisfaction (bill information, accuracy, timelines, method of payment, decrease complaints) Year-to-year change in % of reassessment requests completed in on time Year-to-year change in the unit cost of Property Tax Service delivery Year-to-year change in the % delinquent payments Year-to-year change in the amount of electronic methods of payment Data I need but don t currently collect MPAC data and data change requests (quality, change control, timeliness, master source data is MPAC). Data I need but don t currently collect Data of customer satisfaction for the service (ease of use, method of payment, engagement)
20 Page 20 of Report CM How are we doing on the most important of these measures? Step 1: Pick 1 specific measure (cannot be from how much did we do) draw the baseline. o Where did you start and where do you think you will end up? Step 2: tell the story behind the baseline why is it the way it is. 6. Who are the partners that have a role to play in doing better? Consider internal and external BASELINE STORY Year-over-year decrease the UNIT COST per transaction Behaviour change in customers % of accounts paid electronically Engagement/ Communication Provide more electronic options PARTNER PARTNER ROLE Amanda Sap POS Clerks/Communications Education re: payment options Communications Customer Survey E-Gov, I.T. Services, e-post Technology for billing, payment Banks, Mortgage Companies Payment Delivery Tax Payers Feedback Lawyers/Land Registers Ownership changes MPAC Accurate Assessment Data Region Tax Policy School Boards School Support 7. What works to do better, including nocost and low-cost ideas? NO COST/LOW COST: Education (Internal & External) clarity on tax bill Increase electronicpayments (automatic deductions from bank) OTHER: E-Billing Credit Card Payment (high cost) Accept tax alternate locations (centralized cashiering) other than city hall
21 Page 21 of Report CM What do we propose to do? Continue to encourage alternate payment options Customer survey Continue to works closely with all partners Continue to review alternate bill presentment options Continue to enhance collections methods
22 Page 22 of Report CM Appendix F Property Tax Service Process Map Example (considered to be draft and not confirmed or complete)
23 Page 23 of Report CM Appendix G Property Tax Service Business Plan Example (considered to be draft and not confirmed or complete) BUSINESS PLAN SUMMARY SERVICE NAME [Source: Service Portfolio] Property Tax Service REFERENCE TO STRATEGIC DIRECTIONS Excellence in Government DATE: SERVICE TYPE Public SERVICE OWNER Ann Marie Coulson, Manager of Financial Planning and Taxation SERVICE DESCRIPTION [Source: Service Portfolio] A public service to provide property tax billing and collection on behalf of the City, region and boards of education. [Source: Service Portfolio] CURRENT STATE The various services of the City s Tax Section of the Finance Department are highly automated and highly regulated. The City uses CSDC Open Tax system to administer the City s tax roll. Approximately 19,600 of the City s 63,000 tax accounts are participating in a pre-authorized payment system whereby tax payments are withdrawn automatically from participants bank accounts each month. There are three preauthorized payment programs - 10 month, due date and ratepayer defined. The City also processes payments received from all the major banks via electronic data interchange. Mortgage company payments are also received via electronic data interchanges. Staff operates in compliance with the City s Customer Service Standards providing efficient and effective customer service that is welcoming, professional and responsive. A taxpayer information brochure is also produced annually that provides information/education about how the property tax revenues are spent, programs available and methods of payment. Staff explain many complex issues to the public including tax changes resulting from reassessments and phasing in of new assessment values. Staff is involved in developing estimates for significant corporate revenues and expenditures related to taxation such as tax write-offs, payments in lieu of taxes and supplementary tax revenue. Staff also record and arrange for disbursements of tax revenues collected on behalf of the Region and School Boards.
24 Page 24 of Report CM Highly regulated Tax bill content and format Delivery of tax bills Billing according to returned roll Penalties & Interest Assessment changes Regulated time limitation for processing charity rebates, vacancy rebates and assessment amendments SUB-SERVICE [Source: Service Portfolio] Property Assessment Based Management (Processing assessment changes) Property Tax Billing Tax Collection CONTINUOUS IMPROVEMENTS Many of the processes in the tax section are highly automated. For this reason staffing levels have been stable or declining over the past number of years despite growth in the number of accounts to be serviced in the City. In 2012, to support a centralized cashiering model for the City, one customer service clerk position was transferred to the Clerks department. Effectiveness in collection of tax accounts has been achieved through use of an automated representment option for preauthorized payments that are returned NSF. The City s uncollected current year taxes average less than 3% of the total tax levy. This is one of the lowest percentages in the area. Collection methods include arrears notices four times per year; letters for accounts two years in arrears etc. Tax staff has explored all avenues for increasing and enhancing revenues pertaining to its operations. Fees have been established for changes in ownership and creation of new tax accounts. In 2011 new fees were introduced for the administration of tax accounts paid by mortgage companies. In order to improve communicating the City s commitment to funding for the expansion of Joseph Brant Hospital, the tax levy is identified separately on the tax bill. FINANCIAL AND HUMAN RESOURCE REQUIREMENTS Operating Budget 2011 Actual 2012 YE Projection 2013 Proposed Budget Expenditure $1,166 $1,110 $1,017 Revenue $(2,850) $(2,496) $(2,487) Net Budget $(1,684) $(1,386) $(1,470) Capital Budget Expenditure Revenue Net Budget Staffing (FTEs) % of total City Expenditures Budget 0.59% 0.54% 0.51%
25 Page 25 of Report CM Annual net budget per household ($) $(24.56) $(20.19) $(21.21) EMERGING ISSUES, CHALLENGES AND RISKS Property tax systems in Ontario will be in a constant state of reassessment as a result of the new four year phase in process that was adopted by the Province in The most recent reassessment phase-in is for yrs The City will be working with MPAC on keeping the public well informed as to how the phase in affects their property. The tax section anticipates an increased volume of calls when the final tax bills are received. A significant increase in assessment appeals will have an impact on service delivery. MEASURING SUCCESS How much did we do? # of Property Tax Accounts Actual Actual Actual Forecast Forecast Forecast Forecast Forecast 61,031 61,898 62,521 63,146 63,777 64,414 65,058 65,709 Comment: How well did we do it? Total Arrears as a % of Levy 2010 Actual 2011 Actual 2012 Actual 2013 Forecast 2014 Forecast 2015 Forecast 2016 Forecast 2017 Forecast 4.10% 4.11% 3.56% 3.51% 3.46% 3.41% 3.36% 3.31% Comment: More taxes paid on time thereby improving cash flow and reducing penalty revenue
26 Page 26 of Report CM # of Property Tax Accounts paid electronically Actual Actual Actual Forecast Forecast Forecast Forecast Forecast 18,930 19,017 19,157 19,348 19,541 19,932 20,331 20,738 Comment: More efficient processing of payments Is anyone better off? User fees and fines (dollars in Actual Actual Actual Forecast Forecast Forecast Forecast Forecast $2,816 $2,808 $2,606 $2,608 $2,618 $2,628 $2,638 $2,643 $000 s) Comment: Additional user fees OBJECTIVES Description - The tax section will promote and encourage payment by electronic methods to increase the level of participation by 2% per year. - The tax section will be monitoring developments in tax policy. This will involve keeping up to date with what other municipalities are doing and what legislation changes may be coming from the Province - Tax staff will continue to review the applicability and appropriateness of new user fees. - In support of the City s E-Government initiative and to enhance customer service the tax office has implemented an automated bill presentment system. - Target for Outcomes and Measures 2-3% uptake within three years for automated bill presentment Expected Completion ongoing ongoing OPTIONAL/ADDITIONAL INFORMATION OR MATERIAL N/A
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