Strategies For a New Fiscal Deal Presentation to City Council April 15, 2004

1. Strategies For a New Fiscal Deal • Presentation to City Council • April 15, 2004

2. Recommended Strategies for a New Fiscal Deal • A. Build Relationships with Other Orders of Government • B. Pursue Revenue Opportunities • C. Mobilize Community Support

3. A. Build Relationships with Other Orders of Government • The three Rs*: • Roles • + • Responsibilities • + • Resources • * Minister’s Provincial/Municipal Council on Roles, Responsibilities and Resources in the 21st Century

4. A. Build Relationships with Other Orders of Government • The three Rs: • Roles • + • Responsibilities • + • Resources • What’s missing?

5. A. Build Relationships with Other Orders of Government • The three Rs: • Roles • + • Responsibilities • + • Resources • = • Relationships The combination of the three elements creates relationships.

6. A. Build Relationships with Other Orders of Government • Road to success goes through the province • Province must also benefit from any change or added revenue • Federal and provincial finance officials dislike long term commitment of funds • Provincial participation or concurrence in long term financial assistance will require federal participation • Growing acceptance of the need to recognize three orders of government are working together; opportunity for good partnerships

7. A. Build Relationships with Other Orders of Government Strong relationship Personal Relationship We have some special projects, events and would like your support Let’s Work Together We understand each other and work together $ $ Independence We want our own- source revenues Get By We take what we can get Weak relationship

8. A. Build Relationships with Other Orders of Government • Recommendations: • 1. Adopt following strategic position with other orders of government: • Build and strengthen our relationships • “We understand each other and work together” • 2. Position the City of Edmonton in our relationships and communications as: • Positive and co-operative • Ensure this is in all our key messages • 3. Utilize following behaviors in the relationships: • Show leadership • Development partnerships • Be inclusive • Be firm and consistent • Exploit opportunities

9. A. Build Relationships with Other Orders of Government • Recommendations, cont’d. • 4. Establish, as a priority, negotiating multi-order, multi-year agreements (e.g. urban development agreements) with other orders of government: • projects, program, funding • 5. Ensure City’s initiatives align with interests of other orders of government; demonstrate the alignment and fit with their priorities: • example: confirm our alignment with the four pillars for the “Strategic Plan for the Government of Alberta” • 6. Champion the City as the representative of the local community with other orders of government

10. B. Pursue Revenue Opportunities • Key statement of Council’s desired components*: • “That the City focus its efforts to broaden its financial capacity through: • sharing of existing provincial revenue streams, including personal and corporate income tax and gaming revenues; • adding a municipal component to provincial revenue streams, particularly in the areas of gaming revenues, fuel taxes and contracts; • reduction of provincial education property taxes; and • elimination of provincial property tax exemptions.” • *City Council May 27, 2003

11. B. Pursue Revenue Opportunities • Federal and provincial budgets confirmed good news for Edmonton: • GST Rebate • Future fuel tax • Accelerate Infrastructure • Police Funding • Ambulance governance and funding responsibility to health regions • Progress is occurring on funding • This is now a time of shifting ground in financing of cities … • New opportunities, new requirements

12. B. Pursue Revenue Opportunities • Work done for Minister’s Provincial/Municipal Council on Roles, Responsibilities and Resources in the 21st Century examined four types of revenue sources: • Revenue transfers (grants) from province to municipalities • Vacating tax space by province • Transfer of service responsibility to province • Local authority to tax • Primary attention to-date has been on limited revenue opportunities (modest $)

13. B. Pursue Revenue Opportunities • Two of the six good opportunities already acted upon by province in 2004 budget: • Police grants • Ambulance service transfer • Two of good opportunities are tied to fuel tax: • Receive portion of provincial fuel tax • Levy municipal fuel tax (depending on rate, could be significant $) • Remaining two good opportunities have modest $: • Local hotel tax • Vehicle registration

14. B. Pursue Revenue Opportunities • Issues: • Education property tax use by province; increasing requisition • Most of the revenue opportunities considered are limited; will not significantly address our gaps • Need to continue focus on: • Lowering reliance on property tax (short term) • Access to a more diverse set of revenue, tax tools • Need for a new local government tax regime not yet demonstrated to the province

15. B. Pursue Revenue Opportunities • Recommendations • Short term (one year horizon) • 1. Pursue fuel tax opportunities at provincial level: • additional provincial fuel tax • authority for a municipal fuel tax • 2. Pursue federal fuel tax given federal commitments • 3. Pursue local hotel tax and vehicle registration tax • 4. Demonstrate special requirements of Edmonton given return of per capita grants • 5. Negotiate service and funding issues for ambulance • 6. Review cost benefit of conducting a civic census in 2005 to address extent of population growth

16. Pursue Revenue Opportunities - Strategies • Recommendations, cont’d. • Short term (one year horizon) • 7. Continue to work on building our own source revenues through volume increases (more utilization, added services) and diversifying revenue streams

17. B. Pursue Revenue Opportunities • Recommendations, cont’d. • Medium term (two to three year horizon) • 8. Develop a plan, with coalition partners, to demonstrate need for new local government taxation system and its benefits for province: • a) Continue to work with province to vacate education tax (or fix level of requisition) • b) Continue to pursue components: • share of income tax • share of gaming revenues • potentially, sales tax • Requires ongoing demonstration of gaps; negotiation, persistence and time

18. C. Mobilize Community Support • Basic Premises: • Our paradigm for success is based on relationships: • “ We understand each other • and work together” • We must build more coalitions as the way to mobilize public support: • Other voices need to be heard pointing out importance of local government • We need to show proof of need: • infrastructure • other services • We need to show we use resources effectively • Our issues are valid, but need more public support to raise their profile

19. C. Mobilize Community Support • Recommendations: • 1. Within the City, work with public, private partners, educational and health institutions, NGOs: • identify common interests • areas of mutual action • with respect to other orders of government • 2. Work with Calgary Council and Administration on common issues, approaches for other orders of government • 3. Meet on a regular, sustained basis with the Edmonton caucus

20. C. Mobilize Community Support • Recommendations • 4. Within the Region: work with the municipalities to identify and advance regional projects, funding • 5. Continue work with FCM, AUMA, Big Cities and other organizations to obtain a more diverse set of revenue tools • 6. Integrate building coalitions strategy with the “cooperative competition” Regional Strategy element • 7. Develop and apply a Strategic Communications Plan, with appropriate messaging to support the New Fiscal Deal activities

21. Recommended Strategies for a New Fiscal Deal • A. Build Relationships with Other Orders of Government • B. Pursue Priority Revenue Opportunities • C. Mobilize Community Support