TAKING BACK OUR COMMUNITIES Gord Hume

1. TAKING BACK OUR COMMUNITIESGord Hume

2. How do we build 21st century towns and cities with a 17th century tax system and a 19thcentury governance model???

4. Canadian Municipalities are becoming the most important order of government…

5. “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)

6. 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

7. Experienced Municipal Leaders: • 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)

8. What do municipal leaders think about provincial relations? • “Paternal, patronizing, phony…” Mayor Mike Bradley • “…Costs to municipalities rise…” Mayor Carl Zehr

9. “too slow, too little, too late” • Downloading • Changing the rules • Downloading program management • Changing the funding formula 5. Bland indifference to local issues 6. Lack of communication, consultation

10. “…keep ‘em down on the farm…”

11. “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?”

12. Montreal, PQ Montreal said OUI to new tax opportunities…

13. Quebec City, PQ Said NON to new tax opportunities…

14. 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…

15. Saskatchewan PST • Saskatchewan now shares 1% of its PST with its municipalities!

16. 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

17. Canada’s Property Tax system is broken and it can’t be fixed: • Regressive tax • Assessment is confusing • Doesn’t tax productive economic values

18. Property Taxes • “…regressive, feudal and medieval…” • Naheed Nenshi, Calgary • “…need predictable, sustainable funding that does not rely on property taxes…” • Carl Zehr, Kitchener

20. CANADA’S INFRASTRUCTURE DEFICIT: • FCM (2007) $123 Billion • 2012 guesstimates $200-300 B • National electrical grid $300 B • Federal infrastructure ??? • Provincial infrastructure ??? • Updating technology ??? • Rural improvements ???

21. 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

22. A few communities may still have a spending problem, but all Ontario communities have a revenue problem!

23. Main Council Priorities: • Community prosperity--wealth generation • Build and re-shape the community • Deliver quality public services at an affordable price

24. QUIDNUNCS

25. The CRINK Economy: • CReative • INnovative • Knowledge-based

26. Northern Economic focus: • Mining/natural resources • Forestry • Renewable energy/green technologies • Arts, culture, tourism… • Digital economy • Food/agriculture/aquaculture… • Transportation…

27. Rural Communities • 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

28. Northern Ontario issues • 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…

29. SHARING ROYALTIES • Shocking that Northern Ontario municipalities get the costs and problems of community development, but none of the financial resources

30. Local Leadership • 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

31. Can you build your community with your existing revenue and tax base??? When do you start doing less with less?

32. Building Vibrant Communities • 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

33. 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

35. Searching for Solutions: 1. Get to the table—who does what? 2. Infrastructure deficit—our crumbling towns and cities 3. Change the tax structure

36. London, Ontario 2010 tax levy $456 M 1% of Ontario HST $83 M (per capita) 1% of Income Tax $19 M (paid by Londoners) ________ New non-property tax revenue = $102M Could reduce local property taxes 15-20%

37. Municipalities need to… • 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