Efficiency analysis examines whether municipal services are being delivered at optimal cost relative to outputs and outcomes achieved. This evaluation considers whether the same results could be achieved with fewer resources, or whether current resources could produce better results. Methods include benchmarking against comparable municipalities, analyzing unit costs (cost per kilometre of road maintained, per call answered, per permit processed), examining productivity trends over time, and reviewing processes for waste or duplication. Efficiency analysis differs from effectiveness analysis, which asks whether services are achieving their intended goals. Both matter—an efficient service that doesn't meet community needs isn't valuable, while an effective but grossly inefficient service wastes taxpayer money. Regular efficiency analysis helps municipalities identify improvement opportunities and demonstrate value for money to residents.