In their book, Small Town Rules (Pearson Education Inc., USA, 2012), authors Barry Moltz and Becky McCray explain seven rules for businesses that use the model of a small town to offer advice on growing and maintaining a business n the “connected economy.” And while most of their rules are aimed at businesses, I suggest some are equally applicable to small towns like Collingwood.
Don’t get me wrong: a municipality is not a business and despite some common functions and shared accounting techniques, a municipality cannot be run in the same manner as a for-profit business. For a start, we have split roles between management (politicians and administration), and the political role – even of the head of council – is only part-time in the vast majority of Ontario municipalities. Plus no single member of council has more authority or power than any other (one vote per person), unlike a corporate president or CEO.
Municipalities, unlike corporations, cannot run deficits. And they are responsible for a large array of services that are not, nor ever will be profitable (parks, for example, but also social housing, public transit, sidewalks, garbage pickup, libraries, museums and so on). But all of these services contribute to the quality of life than makes living here so wonderful, and on which we have come to depend.
And more than depend: municipalities that have lesser service levels or lack services entirely don’t have the economic advantages that those with those services have. That’s important when trying to attract new businesses to your town, or to retain existing businesses. Those services help create the municipal brand that people come to associate with your community.
Corporations are responsible to their shareholders and pay dividends only them, where municipalities are responsible to the entire community, and serve the greater good (or should do so, this term notwithstanding).
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