A New Deal for Cities and Communities

1. A New Deal for Cities and Communities

2. The New Deal for Cities and Communities • The New Deal represents a collaborative way of doing business that is respectful of jurisdictions • It is based on a shared vision of sustainable communities including environmental, cultural, social and economic elements • National priorities play out in cities and communities and require all governments working together • climate change, clean air and water, immigrant settlement and affordable housing

3. Approach • Partnerships between governments to achieve shared outcomes. Specifically, entering into an agreement that will outline: • the use of gas tax funds • areas for further collaboration on the shared priorities to achieve all four elements of sustainability

4. Implementation Strategy • Federal-Provincial/Territorial agreements that set out a framework for the use of the gas-tax funds. Agreements could outline: • Purpose and Principles • Use of funds • Commitments and contributions • Allocation formulae • Accountability and reporting • Existing or potential agreements on other common objectives • New mechanisms for better cooperation and collaboration

5. Government of Canada Respect for jurisdiction Flexibility Equity Focus on long-term solutions Transparent agreements and fiscal arrangements Regular reporting to Canadians Provincial/ Territorial Principles F/P/T agreements should respect P/T priorities and ensure that projects or programs are subject to the P/T approval P/Ts will determine the appropriate type of consultation with their municipalities Agreements and fiscal arrangements must be transparent as regard to P/Ts Federal initiatives must be flexible and adaptable to P/T specific needs and conditions Federal initiatives that concern municipalities should be planned following agreement of P/Ts Federal funding for municipalities must be stable and on-going to achieve long term solutions P/Ts and municipalities will not be expected to sustain initiatives over the long term without funding Federal initiatives will not pressure P/Ts to divert resources from P/T priorities Federal initiatives will not create expectations of new revenues from P/Ts to municipalities Federal initiatives relating to municipalities will be available to all P/Ts. Principles for Partnership

6. Approach • Outcomes-based • Lower Green House Gas emissions • Cleaner air • Cleaner water • Focused investments for maximum results • Environmentally Sustainable

7. Gas Tax Investments: ESMI • Capital expenditures related to environmentally sustainable municipal infrastructure (ESMI) which: • improve the quality of the environment and contribute to reduced GHG emissions, to clean water or air; and, • fall into one of the following investment categories: • Public transit • Community energy systems • Water and wastewater • Solid waste management • Capacity building • Roads and bridges

8. Federal Financial Commitment • $5 billion over 5 years • $2 billion in year five • These funds are net new federal funding • For your P/T it represents ($M) :

9. Agreement Parameters • Net incremental spending on municipal infrastructure on the part of all three jurisdictions (i.e. no clawback or displacement) • Appropriate integrated sustainability plans by municipalities or other regional groupings to reinforce provincial/territorial environmental priorities • Municipal perspective, consistent with provincial/ territorial principles, to be reflected • Generally agreed upon administration and reporting on the use of funds and results achieved • Renewal process will begin with a federal-provincial/territorial bilateral evaluation of the gas tax funds and a summative national evaluation by the GOC in the 4th year

10. P/T Contributions • Provincial/ territorial support could take alternatives forms • New provincial/territorial funding • Supportive and enabling legislative or regulatory changes • In-kind contributions such as demand management strategies including • user fees • enhanced cost recovery for water and waste treatment infrastructure • use of “smart” technology e.g. metering • Capacity building initiatives and support to municipalities/regions to prepare integrated sustainability plans

11. Flowing the Funds • Flexibility on intra-jurisdictional allocation of gas tax funds consistent with: • Equity: all municipalities, large and small, are eligible to benefit from funding • Transparency: allocation decisions are easily understood by municipalities and are clearly communicated to them • Trigger to flow federal funding to municipalities to be included in the federal-provincial/territorial bilateral agreements.

12. Accountability and Reporting: • Bilateral agreements to identify an appropriate accountability framework for the management of expenditures, including audit and evaluation provisions, and consequences of non-compliance. • Reporting mechanism to be included in the bilateral agreement: • An annual expenditure report detailing the use of federal funds (gas tax, GST rebate) • No later than at year 3 of the bilateral agreement, P/Ts agree to report on the outputs and outcomes. Possibility of using existing provincial/ territorial reporting mechanisms • The GOC to consolidate jurisdictional activity reports in its Canada’s Annual Performance Report. Other forms of federal reporting to Canadians could also be considered.

13. Measuring Progress

14. Communications • A Communications Protocol will be included in each bilateral agreement, featuring: • Communications around the signing of the bilateral agreement • Involvement of all orders of government in proactive announcements on funding decisions, acknowledging federal role (MPs) • Branding of the New Deal (GST rebate, gas tax and beyond) • Clear identification of GoC gas tax investments • Public reporting of outcomes • Access to information • Protocol for future activities (trilateral agreements, etc.)

15. Other Elements of the New Deal • Other elements that improve coherence, integration and harmonization of government planning, policy outcomes and program and service delivery in cities and communities. • Bilateral and trilateral agreements that identify specific areas of collaboration on other elements of the New Deal.