Why We Need Continuous Improvement at City Hall

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Civic Centre

On Tuesday afternoon, City Council will consider a motion to investigate the need for continuous improvement at City Hall. The Sault Ste. Marie Chamber of Commerce (SSMCOC) strongly supports the adoption of a continuous improvement process, suggesting that it should in fact be an ingrained necessity for any municipality in a world where there are significant financial and regulatory constraints that demand efficiency to ensure tax-payer value.

SSMCOC CEO, Rory Ring notes that “outside of the public sector [government], we’ve grown accustomed to steadily falling prices for better products and services provided by the private sector. In one major sector of the economy however, prices seem to just keep rising, and without a commensurate increase in performance… and that’s government.”

In the wake of the financial shortfalls and constraints facing most governments around the world, leaders are faced with the challenge to ‘do more with less’. Unfortunately, typical cost reduction exercises inevitably result in a difficult trade-off between price and performance. Breaking this seemingly unavoidable trade-off will require leaders to look at the public sector in a whole new way.

Ring continues, noting that “while our municipality faces budgetary short falls and tax revenue disruptions, taxpayers have been presented with a very unappetizing choice between higher taxes or radically curtailed public services… or, ever more often, both. A way to offset or avoid this challenge is to use innovation and concepts of continuous improvement to create public programs at radically reduced costs without slashing services; a way to break the seemingly unavoidable trade-off between paying more and getting less.”

In an effort to make Sault Ste Marie competitive in the global economy, government must look to relieve the financial burdens it places on the economic generators, job creators and investors that build economic prosperity for the community.

Commercial and industrial occupied properties are where much of the new wealth and many of the new jobs are generated in this community. Therefore, to tax commercial and industrial properties at much higher rates than competing jurisdictions would have a negative impact on the local economy; these are observations drawn directly from the Chamber’s recent tax report and the report from the Mayor’s Office.”

Ring adds, “this presents an opportunity for the City of Sault Ste Marie to seize this moment and bring forward a possible tax-fairness solution on behalf of local commercial and industrial property owners over a five-year period, reducing rates to be more competitive and then passing on that savings to the residential rate payers as the assessment base and jobs are created.”

The solution requires a shift that sees the organizations change from focus on outputs to efficiency and outcomes that add value for all rate payers.

The Chamber feels that the key to radically reducing costs, while maintaining or even improving services, is disruptive innovation. Creating the conditions for disruption will require policymakers to view government through a different lens. Instead of seeing only endless programs and bureaucracies, the myriad responsibilities and customers of government can be seen as a series of markets that can be shaped in ways to find and cultivate very different and ultimately more effective, less expensive ways of supplying public services.

The consideration before council this evening is a step in the right direction and should be taken most seriously. Above all, if adopted it sends a message to the industrial and commercial tax payer, and to the global business community, that now and into the future, we are serious about creating a Sault Ste. Marie that is “open for business”.

3 COMMENTS

  1. Identify…..study……act…….review a simple formula…but the political will is needed to actually change.

  2. Yes, Mr. Ring, efficiency, but NOT at the cost of city jobs.

    Now more than ever city workers need to keep their jobs, but be paid a little less. City workers have been getting yearly automatic pay increases from Mayor Provenzano and this City Council that amount to about $1.5 Million every year starting in 2015?!?

    Of course everybody wants an automatic pay increase, but City workers’ pay comes from all of us taxpayers which literally means that City workers get their pay increases straight out of their neighbours’ pockets!?!

    And to top it all off, we have no say. It’s not like we can say, “Meh… I’m not going to buy from the city anymore.”

    If you want lower taxes for the business community, Mr. Ring, start demanding that Mayor Provenzano and City Council get City workers to start shouldering some of the burden by taking 0% pay increases like I repeatedly told them to do back in 2015 before contract negotiations with the workers. ( http://preview.tinyurl.com/zfgluup )

    Either that, or get them to come up with some property tax incentive for businesses based on the number of people each business employs.

    Afterall, you did say that businesses create and sustain jobs. So why not a property tax system for businesses based on the number of jobs? More jobs for our citizens, less property taxes, less jobs for our citizens more property taxes.

    Makes sense to me.

    • All City Hall full time employees only get 70 hours pay every 2 weeks not 80 hours every 2 weeks like most! I love how everyone thinks all city employees make lots of money!!! I’ll gladly show you my pay stuband! We are tax payers too!!! I have 3 boys and go into overdraft between pays just for the essential bills!!!!!!!! Why don’t we do something about the real problems, like a lack of jobs and Essar owing 21 million plus to the city!!!! When is someone going to stand up for our city and market us for new businesses and jobs!!!!!!!!!!!!!!!!!

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