TAKING BACK OUR COMMUNITIES
Gord Hume
Municipal Cultural Planning
How do we build 21st century
towns and cities with a 17th
century tax system and a 19th
century governance model???
Municipal Cultural Planning
• Canadian Municipalities are
becoming the most important
order of government…
Creative Communities
Municipal Cultural Planning
“Taking Back Our Cities”
Key federal/provincial interviews:
Prime Minister Paul Martin*
Premier Ralph Klein*
Premier Gordon Campbell*
Minister Glen Murray
Municipal Affairs Deputy Minister
Michael Fenn*
*(former)
Leading Canadian Mayors:
Mike Bradley, Sarnia, Ontario
Pat Fiacco, Regina, Saskatchewan
Peter Kelly, Halifax RM, Nova Scotia
Naheed Nenshi, Calgary, Alberta
Gerald Tremblay, Montreal, Quebec
Dianne Watts, Surrey, British Columbia
Carl Zehr, Kitchener, Ontario
Experienced Municipal Leaders:
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Larry Beasley, Vancouver BC planner*
Tim Dobbie, Burlington Ont city manager*
Jeff Fielding, CAO, London, Ontario*
Darren Ottaway, CAO, Grande Cache, AB
Judy Rogers, City Manager, Vancouver BC*
*(former)
Municipal Cultural Planning
What do municipal leaders think
about provincial relations?
• “Paternal,
patronizing,
phony…”
Mayor Mike Bradley
• “…Costs to
municipalities rise…”
Mayor Carl Zehr
Municipal Cultural Planning
“too slow, too little, too late”
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Downloading
Changing the rules
Downloading program management
Changing the funding formula
Bland indifference to local issues
Lack of communication, consultation
Municipal Cultural Planning
“…keep ‘em down
on the farm…”
Municipal Cultural Planning
“Do municipal
politicians want
more money from
a senior order of
government, or do
they want the
power of new
taxation to raise
more money and
be held
accountable?”
Municipal Cultural Planning
Montreal, PQ
Montreal said OUI
to new tax
opportunities…
Municipal Cultural Planning
Quebec City, PQ
Said NON to new tax opportunities…
Municipal Cultural Planning
Toronto, Ontario
Toronto said YES to new tax opportunities, then reversed
itself on one new tax and is wavering on the other…potential
lost revenue? A quarter of a billion dollars annually…
Municipal Cultural Planning
Saskatchewan PST
• Saskatchewan now shares 1% of
its PST with its municipalities!
Municipal Cultural Planning
Manitoba survey
• 64% of residents supported a new one
cent Sales Tax going to community
infrastructure
• 90% agreed communities need help
Source: Association of Manitoba Municipalities
Canada’s Property Tax
system is broken and it
can’t be fixed:
• Regressive tax
• Assessment is confusing
• Doesn’t tax productive
economic values
Creative Communities
Municipal Cultural Planning
Property Taxes
• “…regressive, feudal and
medieval…”
» Naheed Nenshi, Calgary
• “…need predictable,
sustainable funding that does
not rely on property taxes…”
» Carl Zehr, Kitchener
Creative Communities
Municipal Cultural Planning
Municipal Cultural Planning
Municipal Cultural Planning
CANADA’S
INFRASTRUCTURE DEFICIT:
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FCM (2007)
2012 guesstimates
National electrical grid
Federal infrastructure
Provincial infrastructure
Updating technology
Rural improvements
$123 Billion
$200-300 B
$300 B
???
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???
Municipal Cultural Planning
Northern Ontario:
• Limited/non-existent traditional municipal
revenue opportunities:
– No parking meters, fines
– No Development Charges
– Very low fees for business permits, etc
– Lack of tourism revenues
– No access to resource royalties
– Limited revenue opportunities
Municipal Cultural Planning
A few communities may still
have a spending problem,
but all Ontario communities
have a revenue problem!
Municipal Cultural Planning
Main Council Priorities:
1. Community prosperity--wealth
generation
2. Build and re-shape the community
3. Deliver quality public services at an
affordable price
Municipal Cultural Planning
QUIDNUNCS
Municipal Cultural Planning
The CRINK Economy:
• CReative
• INnovative
• Knowledge-based
Municipal Cultural Planning
Northern Economic focus:
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Mining/natural resources
Forestry
Renewable energy/green technologies
Arts, culture, tourism…
Digital economy
Food/agriculture/aquaculture…
Transportation…
Municipal Cultural Planning
Rural Communities
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Small towns under great stress
Young people leaving rural for urban life
Rural economies are in difficulty
Natural resource extraction/economy is a
roller-coaster
• Health/lifestyle
• Local services, businesses disappearing
• Family farms in jeopardy
Municipal Cultural Planning
Northern Ontario issues
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Housing—temporary, family, seniors…
Planning and servicing issues
Financing new subdivisions
Drugs
Social problems
Rising policing costs
Downtowns and retail services
Staffing new mines and ripples locally…
SHARING ROYALTIES
• Shocking that Northern
Ontario municipalities get
the costs and problems of
community development,
but none of the financial
resources
Creative Communities
Municipal Cultural Planning
Municipal Cultural Planning
Local Leadership
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Diversify the local economy
Build an appealing community
Attract bright minds
Support entrepreneurial spirit
Creative, fun, good social experiences
Offer a great quality of life
Safe, healthy, sustainable community
Can you build your community
with your existing revenue and
tax base???
When do you start doing
less with less?
Creative Communities
Municipal Cultural Planning
Municipal Cultural Planning
Building Vibrant Communities
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Heritage assets
Strong, attractive downtown
Appealing gateways and neighbourhoods
Support local arts, culture, creative…
Active social opportunities
Public gathering places
Festivals and events
Distinctive community identity
Municipal Cultural Planning
ON OUR OWN…
• 2012-13 federal budget pretty much
ignored municipalities
• 2012-13 Ontario budget had some but not
much good news for towns and cities
• 2012 Drummond Commission
recommends stiff financial restraint for
next five years
Creative Communities
Municipal Cultural Planning
Searching for Solutions:
1. Get to the table—who does what?
2. Infrastructure deficit—our crumbling
towns and cities
3. Change the tax structure
Municipal Cultural Planning
London, Ontario
2010 tax levy
$456 M
1% of Ontario HST
$83 M
(per capita)
1% of Income Tax
$19 M
(paid by Londoners)
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New non-property tax revenue = $102M
Could reduce local property taxes 15-20%
Municipal Cultural Planning
Municipalities need to…
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Invest in infrastructure
Develop new non-property tax revenue
Invest in human capital
Improve relations with other governments
Change the system
Get smarter—use knowledge/technology
Become more assertive
Municipal Cultural Planning