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FINANCING CITIES FINANCER LES VILLES - VIURRSPACE HOME
published by the canadian institute of pl anners | publié par l’institut canadien des ur banistes
suMMer /éte 2016
vol. 56 no. 2

                                                                                                                        Financer
                                                                                                                       les Villes

                                 FiNaNciNG
                                 ciTiES
publication agreeMent 40064978

                                                                                                                             www.cip-icu.ca
FINANCING CITIES FINANCER LES VILLES - VIURRSPACE HOME
FINANCING CITIES FINANCER LES VILLES - VIURRSPACE HOME
contents

                                          Financing cities |
     sommaire

                                       Financer les villes

      plan canada | summer · éte 2016 | vol. 56 no. 2

     columns                                articles
4    a Word From the President /       16   Financing canadian cities                  32   PPPs and the
     le mot de la Présidente                in the 21st century                             Financing oF cities
                                            Should cities be given access to more           How are public-private partnerships
6    Planner uPdate /                       sources of revenue?                             being used to finance and deliver
     l’actualité des urbanistes             By Enid Slack PhD                               large infrastructure projects in
                                                                                            Canadian cities?
11   index oF advertisers              18   Financing municiPal
                                                                                            By Matti Siemiatycki PhD
                                            inFrastructure: the basics
15   From the editorial                     The critical links between the needs       35   Funding mechanisms For
     board / message du comité              of residents, the priorities of local           building transit in ontario
     de rédaction                           government, what gets built and who             Recent actions of the senior
                                            pays for it.                                    levels of government may have
47   q & a With…Jay Wollenberg
                                            By Brian Conger MPP, RPP, MCIP and              significant impact on funding transit
50   the learning curve /
                                            Almos Tassonyi PhD                              infrastructure in Ontario.
     l’acquisition du savoir                                                                By Craig Binning MPhil and
                                       22   canadian cities:
                                                                                            Jaclyn Hall, BURPI
                                            Present structure and
52   FelloWs’ corner /
                                            Possible alternatives                      38   hoW a Financing tool
     du côté des FelloWs
                                            Balancing demands and resources in              accelerated edmonton’s
                                            municipal financing has led to calls for        doWntoWn develoPment
                                            additional sources of funding. But are          Renewed interest in Downtown
                                                                                                                                               3
                                            there other options?                            Edmonton is being financed in part
                                            By Melville McMillan PhD                        through an innovative solution.
                                                                                            By Heather Chisholm MSc, RPP, MCIP
                                       25   using land value
                                                                                            and Tom Beck MScPl, RPP, MCIP
                                                                                                                                    pl an canada | summer · éte 2016

                                            caPture tools in

                             6              canadian municiPalities
                                            Local governments need to find
                                            new revenue sources permitted
                                            by provincial.
                                                                                       42   integrating land use
                                                                                            Planning and develoPment
                                                                                            Finance to imProve local
                                                                                            government sustainability
                                            By David Amborski MSc, MA, MCIP, RPP            The predominant land development
                                                                                            form in Canada is still lower density
                                       28   missed oPPortunity: municiPal
                                                                                            greenfield over higher density
                                            level Fuel tax For alberta
                                                                                            and infill.

                        38
                                            A carbon tax in Alberta may be a
                                                                                            By Kim Fowler MCIP, RPP
                                            means to reduce greenhouse gas
                                            emissions and drive economic growth.
                                            By Amrita Singh PhD
FINANCING CITIES FINANCER LES VILLES - VIURRSPACE HOME
A WO R D F R O M T H E P R E S I D E N T |
                                   l e m ot d e l a P r é s i d e n t e

                                                                                 H a z e l c H r i s t y M B A , M C I P, R P P
                                                                                 P R e s I d e n t, C A n A d I A n I n s t I t u t e o f P l A n n e R s /
                                                                                 PRésIdente InstItut CAnAdIen des uRBAnIstes

                                   Plans in action

                                                                                C
                                                                                            IP is entering a new era                      have begun the task of rebuilding
                                                                                            with the adoption of                          relationships and examining new
                                                                                            bylaws to establish a new                     tools to for policy improvements.
                                                                                            governance model. The                         Through international outreach
                                                                                road to this moment in CIP’s history                      activities, CIP is again looking to share
                                                                                has been thoroughly discussed and                         Canadian expertise with planning
                                                                                debated by the planning membership                        colleagues worldwide.
                                                                                over the past year and the new                                This issue of Plan Canada is about
                                                                                way forward is about inclusivity                          financing cities, a task that requires
                                                                                and independence. As we put                               innovative thinking and cooperation
                                                     HAzEl CHRISTy, MBA,
                                                     MCIP, RPP                  plans in place for celebrating CIP’s                      at all levels in Canada’s changing
                                                     President, Canadian        centenary in 2017, the Institute is more                  infrastructure environment. The role of
                                                     Institute of Planners /
                                                     Présidente Institut        member-focused and has experienced                        planners becomes even more integral
                                                     canadien des urbanistes    more member engagement than                               as the federal government works to
                                                                                ever before.                                              close the gap between infrastructure
                                                                                   It is crucial for planners to remain                   needs and the challenges of funding
                                                                                engaged in the work of their national                     at the municipal level.
                                                                                representative body. Nominations                              CIP will be forwarding copies of
                                                                                for a new Board of Directors are                          this edition of Plan Canada to mayors
                                   It is crucial for                            underway, which, for the first time,                      across Canada, which highlights
                                   planners to remain                           will be elected by individual members                     the evolving role of planners and
                                   engaged in the work                          across the country. The new board                         how they can help to advocate for
                                   of their national                            will have a national and international                    stronger and healthier communities.

                                   representative body.                         perspective, and will be responsible                      I encourage everyone to read this
                                                                                for keeping CIP focused on adding                         important edition.
                                                                                value to its members, the planning                            As our national conference in
       4                                                                        profession, stakeholder groups, and                       Québec draws closer, I would like
                                                                                Canadians, while working toward                           thank the membership at large for
                                                                                a more productive partnership                             their commitment to move forward. I
                                                                                that complements the role of the                          have spoken to and shared emails with
                                                                                Provincial and Territorial Institutes and                 many planners over the past months
pl an canada | summer · éte 2016

                                                                                Associations (PTIAs).                                     and the dialogue has been invaluable.
                                                                                   CIP is working on a number of                              As always, if you have any
                                                                                exciting initiatives. Committees                          questions or comments, please email
                                                                                have welcomed new members who                             communications@cip-icu.ca. ■
FINANCING CITIES FINANCER LES VILLES - VIURRSPACE HOME
À PIED D’OEUvRE
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de débats et de discussions en              rayonnement à l’étranger, l’ICU cherche     nécessairement le point de vue de l’Institut canadien
                                                                                        des urbanistes.
profondeur par les membres au cours         de nouveau à faire valoir le savoir-faire
                                                                                        Editorial Board/Comité de rédaction
de la dernière année, et la nouvelle        canadien auprès de collègues                Barbara A. Myers mcp, mcIp, mppI, rpp Chair/Présidente
                                                                                        Sandeep Agrawal phd, aIcp, rpp, mcIp
orientation est donnée sous le signe de     urbanistes partout dans le monde.           Richard Borbridge rpp, mcIp
l’inclusion et de l’indépendance. Alors         Le présent numéro de Plan Canada        Jonathan Denis-Jacob rpp, mcIp
                                                                                        Dawn Seetaram rpp, mcIp
que nous nous apprêtons à en célébrer       porte sur le financement de nos cités       Timothy Shah ma (Planning)

le centenaire, l’Institut est plus que      et villes, un enjeu qui exige d’innover
                                                                                        Editor / Rédactrice en chef
jamais axé sur ses membres et s’est         au niveau des idées et de collaborer        Michelle Brynkus
ouvert plus que jamais au dialogue.         à tous les niveaux dans le secteur
     Il est essentiel pour les urbanistes   canadien de l’infrastructure qui évolue     For details on how to subscribe visit www.cip-icu.ca/Resources/
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de suivre de près les travaux de            rapidement. Les urbanistes jouent un        Canada Bibliothèque nationale du Canada Bibliothèque
l’organisme national qui les représente.    rôle encore plus crucial alors que le       nationale du Québec
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Les mises en candidature du prochain        gouvernement fédéral travaille à faire
                                                                                        Publications Mail/Registration #/no de publication/
conseil d’administration sont ouvertes      converger les besoins en infrastructure     distribution postale : 40064978
et, pour la première fois, ce sont les      et les défis du financement au              Published June 2016/CIP-Q0216/2376
membres de partout au pays qui à            niveau municipal.
titre individuel les éliront. Le nouveau        L’ICU fera parvenir un exemplaire       Published by/Publié par:
conseil d’administration sera attentif      du présent numéro de Plan Canada
aux enjeux nationaux et internationaux.     aux maires d’un peu partout au pays,
                                                                                        1630 Ness Avenue, Suite 300,
Il lui incombera d’assurer que l’ICU        car il souligne l’évolution du rôle         Winnipeg, MB r3J 3X1
                                                                                        Tel/Tél. : 800.665.2456 | Fax/Téléc. : 204.947.2047
soit une source de valeur ajoutée           des urbanistes et la façon dont ils         www.naylor.com
pour ses membres, pour la profession        peuvent contribuer à des collectivités      Managing Editor/Directrice de la rédaction
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d’urbaniste, pour les groupes de            plus fortes et plus saines. Je vous
                                                                                        Group Publisher/Éditrice de groupe
parties intéressées et pour l’ensemble      encourage tous et toutes à lire cet         Angela Caroyannis
des Canadiens et des Canadiennes.           important numéro.                           Project Manager/Directrice de projet
                                                                                                                                                                     5
                                                                                        Kim Davies
Il s’efforcera aussi d’entretenir un            Alors que nous approchons de la
                                                                                        Marketing Associate/Adjointe à la commercialisation
partenariat plus productif et de jouer      tenue de notre congrès national à           Margaux Tomac
un rôle complémentaire à celui des          Québec, je tiens à remercier l’ensemble     Publication Director/Directrice de la publication
                                                                                        Candace Bremner
associations et instituts provinciaux et    des membres pour son engagement à
                                                                                                                                                          pl an canada | summer · éte 2016

                                                                                        Sales Representative/Représentant de vente
territoriaux (AIPT).                        aller de l’avant. Au cours des derniers     Jason Currie
                                            mois, j’ai parlé et échangé des courriels   Layout & Design/Mise en page et conception graphique
                                                                                        Sharon Lynne, alawind creative direction
Il est essentiel pour les                   avec bon nombre d’urbanistes et ce
                                                                                        Cover Design
                                            dialogue a été d’une grande valeur.
urbanistes de suivre                            Et comme d’habitude, si vous avez
                                                                                        Calvin Harding
                                                                                        ©2016 Naylor (Canada) Inc. All rights reserved. The contents
de près les travaux de                      des questions ou des commentaires,
                                                                                        of this publication many no be reproduced in whole or in part
                                                                                        without the consent of the publisher.
l’organisme national qui                    n’hésitez pas à nous en faire part à
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P l A N N E R U P DAT E |
                                   l’ac t ua l i t é d e s u r b a n i s t e s

                                                                                                                                              TIMEly inFormation
                                                                                                                                              T
                                                                                                                                                  he Canadian Institute of Planners is working hard to bring you timely information.
                                                                                                                                                  Check your email on the second Wednesday of every month for CIP’s The
                                     The Monthly Plan-It │ The Place for Planning News                      www.cip-icu.ca

                                                                                                                                   Francais
                                                                                  In this edition:
                                                      Special Meeting to Adopt Bylaws │ CIP Board of Directors Election│                          Monthly Plan-It.
                                     │ CIP/OUQ Accent on Planning 2016 Conference │ The Monthly Plan-It │ National Urban Design Award │
                                        Contribute to Plan Canada │ Job Board Reminder │ Hire an Intern! │ Upcoming Industry Events │

                                       Special CIP Member Meeting to Adopt New Bylaws -May 17

                                                                                                                                              l’INFORMATION en
                                       CIP is pleased to host a Special Town Hall meeting on May 17 to discuss and vote on new Bylaws
                                       to replace the existing Bylaws (dated 1986, consolidated to 2015). The new Bylaws will enable an
                                       enhanced national focus and new structure for the CIP Board of Directors. CIP encourages you to
                                       review the Bylaws in advance of the meeting and forward any questions to communications@cip-
                                       icu.ca. A Notice of Special Meeting with detailed information on the meeting and voting procedures
                                       has been sent by email to each CIP member.

                                                                                                                                              temPs oPPortun
                                       Upcoming: CIP Board of Directors Election
                                       On May 17, the CIP membership will vote on the
                                       proposed CIP Bylaws. If passed, these Bylaws will
                                       result in a new structure for the CIP Board of Directors
                                       that focuses on representing planners from across
                                       Canada. The new Board will be nominated and elected

                                                                                                                                              L
                                       by you, CIP's members. This new Board will be
                                       comprised of individuals tasked with representing the

                                                                                                                                                ’Institut canadien des urbanistes s’efforce de vous communiquer de l’information en
                                       best interests of the entire membership from coast to
                                       coast, with an eye to national issues.

                                                                                                                                                temps opportun. vérifiez votre boîte de courriel le deuxième mercredi de chaque
                                       CIP encourages you to consider planners in your
                                       community who you believe would have the capacity
                                       and dedication to lead the new CIP.

                                                                                                                                                mois. vous y trouverez la publication Ce mois-ci en urbanisme de l’ICU.

                                    We want to know where you are reading Plan                                                                                                        Nous voulons savoir où vous lisez Plan Canada.
                                    Canada. Share it with us on social media using                                                                                                    Dites-le-nous dans les médias sociaux en vous
                                    #PlanCanadaMag.                                                                                                                                   servant du mot-clic #PlanCanadaMag.

                                    Jeffrey Chase shared that he was reading his                                                                                                      Jeffrey Chase nous a informés qu’il a lu
                                    Plan Canada on Good friday in Calgary.                                                                                                            son exemplaire de Plan Canada le vendredi
                                                                                                                                                                                      saint à Calgary.

                                                                                                                                              WE WANT TO HEAR fROM yOU.                             CIP_Planning
                                                                                                                                              CIP wants to get social. Be sure to follow
                                                                                                          6                                   us for updates and let us know what
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                                                      Accent_                                                                                 you’ve been working on or reading.
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                                                                                                                                              NOUS vOULONS RECEvOIR                                  CanadianInstituteofPlanners
                                                                                                                                              DE vOS NOUvELLES.
                                                                                                                                              L’ICU veut être présent dans les médias
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                                                                                                                                                                                                     www.linkedin.com/company/
                                                                                                                                              courant de l’actualité et nous faire part de
      6                                                                                                                                       vos travaux ou de vos lectures.
                                                                                                                                                                                                     Canadian-Institute-of-Planners

                                     stay informed during                                                                                                                   demeurez au courant
pl an canada | summer · éte 2016

                                     tHe conference                                                                                                                         durant la conférence!
                                        Stay informed during the CIP/OUQ                                                                                                        Demeurez au courant durant la conférence Accent sur
                                     Accent on Planning 2016 Conference in                                                                                                  l’urbanisme 2016 organisée par l’ICU et l’OUQ à Québec.
                                     Québec. Use the Conference App                                                                                                             Utilisez l’appli de la conférence!
                                        There is nothing to download.                                                                                                           Il n’y a rien à télécharger. Rendez-vous tout
                                     Simply navigate to www.eventmobi.                                                                                                      simplement à www.eventmobi.com/ACCENTPLANNING
                                     com/ACCENTPLANNING during the                                                                                                          pendant la conférence pour y trouver plein de
                                     conference for lots of helpful features like                                                                                           renseignements utiles, comme des précisions sur les
                                     session details, maps, and more. Don’t                                                                                                 sessions, des cartes et bien d’autres choses. Ne ratez
                                     miss out: bookmark the event page today                                                                                                rien! Mettez en signet la page de la conférence dans
                                     on your phone.                                                                                                                         votre téléphone dès aujourd’hui!
FINANCING CITIES FINANCER LES VILLES - VIURRSPACE HOME
NATIONAL URBAN                                                       PRIx NATIONAUx
DESIGN AWARDS                                                        DE DESIgN URBAIN

U                                                                    L
            rban design and architecture plays an important                   ’excellence en matière de design urbain et
            role in maintaining and enhancing the quality of                  d’architecture joue un rôle important pour ce qui est
            life Canadians in enjoy in cities across the country.             de maintenir et d’améliorer la qualité de vie dans les
                This year, CIP partnered with the Royal                       villes canadiennes.
Architectural Institute of Canada and the Canadian                       Cette année, l’ICU a de concert avec l’Institut royal
Society of Landscape Architects, in cooperation with                 d’architecture du Canada, l’Institut canadien des urbanistes
Canadian municipalities in order to recognize individuals,           et l’Association des architectes paysagistes du Canada,
organizations, firms, and projects that have contributed to          et en collaboration avec les villes canadiennes, a tenu à
a higher quality of life and continued sustainability in our         reconnaître des particuliers, des organismes, des entreprises
Canadian cities through urban design initiatives. The 2016           et des projets qui ont contribué à améliorer la qualité de vie
National Urban Design Awards winners represent innovation            dans nos villes canadiennes et à assurer la durabilité de ces
in nine cities across Canada.                                        dernières grâce à des projets de design urbain. Les lauréats
                                                                     2016 des Prix nationaux de design urbain témoignent de
                                                                     l’innovation dans neuf villes du pays.

                     congratulations to the 2016 national urban design award winners.
                     félicitations aux lauréats 2016 des Prix nationaux de design urbain.

                                                                                                                                                   7

civic design Projects |                                             community initiatives |
Projets d’aménagement municiPaux                                    initiatives communautaires
                                                                                                                                       pl an canada | summer · éte 2016

NATHAN PHIllIPS SQUARE REVITAlIzATION/                              THE BENCH/lE PROJET DE BANCS (CAlgARy, AB)
REVITAlISATION DE lA PlACE NATHAN PHIlIPS
(TORONTO, ON)                                                       develoPers & designers /
Perkins + Will canada in joint venture /                            Promoteurs & designers : anonymous | anonymes
en partenariat avec, with Hoerr schaudt landscape                   “This project offers a new and vibrant interpretation of this
architecture and adrian Blackwell urban Projects |                  basic piece of public furniture and cuts directly to what com-
Plant architect inc.                                                munity initiated urban design should be.” | « Ce projet offre
 “…a successful revitalization of a civic heart that draws people   une interprétation nouvelle et dynamique de cet élément de
in with an enduring, timeless, restrained intervention.” | « … il   base d’un mobilier public et le réduit selon les attentes de la
s’agit de la revitalisation réussie d’une place municipale de       collectivité envers le design urbain. »
premier plan qui attire les gens par une intervention pérenne,
intemporelle et contenue. »
FINANCING CITIES FINANCER LES VILLES - VIURRSPACE HOME
P l A N N E R U P DAT E |
                                   l’ac t ua l i t é d e s u r b a n i s t e s

                                   student Projects | Projets étudiants

                                   IMPOSE (EDMONTON, AB)                                              REGENERATING ROSSDALE (EDMONTON, AB)
                                   Brad comis, sebastian sauve-Hoover, danielle soneff of/            michael zabinski, designer
                                   de threshold art and design working with/en collaboration          “…a thought provoking reclamation of an artifact of a
                                   avec jesse sherburne.                                              previously polluting industry. It is a powerful statement of
                                   “...evokes thoughts of human habitat and urban wildlife while      urban renewal.” | « une remise en état qui suscite la réflexion
                                   making a connection to the built fabric.” | « … cela évoque des    d’un artefact d’une ancienne usine polluante. C’est une
                                   réflexions sur l’habitat humain et la faune et la flore urbaines   proclamation puissante du renouvellement urbain. »
                                   tout en créant un lien avec le tissu bâti. »

                                   urBan arcHitecture | arcHitecture urBaine urBan design Plan | Plan de design urBain

      8
pl an canada | summer · éte 2016

                                   UNION STREET ECOHERITAgE (VANCOUVER, BC/C-B)                       TECHNOPÔLE ANGUS - PHASE II (MONTREAL, QC)
                                   sHaPe architecture inc.                                            Provencher_roy
                                   “…achieves an elegant solution that is both simple and             “The design creates a public realm with high degree of
                                   profoundly important in creating a precedent for infill            pedestrian connectivity and permeability.” | « L’aménagement
                                   densification.” | « une solution élégante à la fois simple         crée un environnement public qui se distingue par un degré
                                   et profondément importante en créant un précédent de               élevé de connectivité pédestre et de perméabilité. »
                                   densification intercalaire. »
FINANCING CITIES FINANCER LES VILLES - VIURRSPACE HOME
urBan fragments | fragments urBains

ENTRE lES RANgS (MONTRÉAl, QC)                                    IMPUlSE (MONTRÉAl, QC)
Kanva                                                             lateral office / cs design
“…inviting, educational and playful.” | « L’effet est invitant,   “… innovative and playful and brings people out into the city.”
éducatif et ludique. »                                            | « Innovateur et ludique et il ramène les gens dans la ville. »

THE fOLLOWING ARE RECOGNIzED WITH SPECIAL JURy AWARDS |
LES PROJETS SUIvANTS ONT REçU UN PRIx SPéCIAL DU JURy
                                                                  small or medium community urBan design
sustainaBle develoPment aWard |                                   aWard | Prix de design urBain dans une
Prix du déveloPPement duraBle                                     Petite ou moyenne communauté

                                                                                                                                                9

                                                                                                                                     pl an canada | summer · éte 2016

ST. PATRICK’S ISlAND PARK/PARC DE l’ÎlE ST. PATRICK               KINSMEN PARK/PARC KINSMEN (SASKATOON, SK)
(CAlgARy, AB)                                                     space2place design inc.
calgary municipal land corporation                                “…a fun, exciting and unique design that leads the way
“…a positive example of how design processes can educate          in public engagement.” | « Voici un aménagement
community members about sustainability.” | « Cette démarche       amusant, attrayant et unique qui montre l’exemple de
illustre bien comment le design peut sensibiliser les membres     l’engagement public. »
d’une collectivité à la durabilité. »
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P l A N N E R U P DAT E |
                                   l’ac t ua l i t é d e s u r b a n i s t e s

                                   CERTIfICATES Of MERIT ARE AWARDED IN THE fOLLOWING CATEGORIES:
                                   | DES CERTIfICATS DE MéRITE ONT éTé DéCERNéS DANS LES CATéGORIES SUIvANTES :

                                   civic design Projects |                                            urBan design Plans |
                                   Projets d’aménagement municiPaux                                   Plans de design urBain

                                   lANSDOWNE PARK/ PARC lANSDOWNE (OTTAWA, ON)
                                   Pfs studio
                                   “…successfully achieves feelings of leisure, space and
                                   delight.” | « Il suscite une impression de détente, d’espace
                                   et de plaisir. »

                                   urBan arcHitecture |
                                   arcHitecture urBaine
                                                                                                      UNIVERSITy OF OTTAWA CAMPUS MASTER PlAN/PlAN
                                                                                                      DIRECTEUR DU CAMPUS DE l’UNIVERSITÉ D’OTTAWA
                                                                                                      (OTTAWA, ON)
                                                                                                      university of ottawa / urban strategies inc.
                                                                                                      “The campus master plan uses classic urban infill to create
                                                                                                      strong pedestrian connections that repair the campus and
                                                                                                      successfully overcome topographical challenges.” | « Le plan
                                                                                                      directeur du campus utilise l’insertion urbaine classique pour
                                                                                                      créer de solides liens piétonniers qui corrigent le campus et
                                                                                                      relèvent avec succès les défis topographiques. »
 10

                                                                                                      urBan fragments | fragments urBains
                                                                                                      QUARTIER DES SPECTAClES (MONTRÉAl, QC)
pl an canada | summer · éte 2016

                                                                                                      Partenariat du Quartier des spectacles
                                                                                                      “ While this body did not officially enter the urban design
                                                                                                      competition, its programming for this annual competition
                                                                                                      has been so critical in facilitating the award-winning
                                                                                                      designs that they merit acknowledgement as important
                                   QUEEN RICHMOND CENTRE WEST (TORONTO, ON)                           agents of successful urban design.” | « Cet organisme n’a
                                   sweeny&co architects inc.                                          pas participé officiellement au concours de design urbain,
                                   “The old brick buildings successfully became assets for the        mais il a joué un rôle de premier plan dans ce concours
                                   new design rather than barriers to its execution.” | « Les vieux   annuel par sa programmation qui a favorisé la réalisation
                                   bâtiments de brique sont devenus des atouts pour le nouvel         de projets primés. »
                                   aménagement plutôt que des obstacles à sa réalisation. »
urBan fragments |                                               community initiatives |
fragments urBains                                               initiatives communautaires

lIMOIlOU DANS lA RUE (QUÉBEC, QC)                               gORE PEDESTRIANIzATION INITIATIVE; VETERANS’
groupe a / annexe u                                             PlACE/PlACE DES VÉTÉRANS (HAMIlTON, ON)
“This project takes a number of under-utilized parking spaces   the mBtW group
and animates them with a simple and elegant design. The         “This previously moribund series of spaces were effectively
materials are modest and the execution is effective.” | « Ce    rediscovered and animated with high quality pedestrian
projet porte sur des places de stationnement sous-utilisées     spaces.” | « … cet ensemble d’espaces moribonds a
qu’il anime par un design simple et élégant. Les matériaux      été redécouvert et animé par des espaces piétonniers
sont modestes et l’exécution est efficace. »                    de grande qualité. »

         NEW MEMBERS |                                               CIP’s President Hazel Christy took part in the
         n o u v e au x m e m b r e s                             formal award ceremony during the RAIC’s festival of
                                                                  Architecture in Nanaimo, British Columbia on June 10,
                                                                  2016. More details about the awards can be found online
  ciP welcomes the following new full members                     at https://raic.org/awards/national-urban-design-awards.
  to the institute                                                   La présidente de l’ICU, Hazel Christy, a pris part à la
  l’icu souhaite la bienvenue au sein de l’institut aux           cérémonie officielle de remise des prix dans le cadre du
  nouveaux membres à part entire suivants :                       festival de l’architecture organisé par l’IRAC à Nanaimo,
                                                                  Colombie-Britannique, le 10 juin 2016. Pour de plus
  Ann-Marie Cashin MCIP                              API
                                                                  amples détails sur ces prix, veuillez consulter la page
  Justin forbes MCIP, LPP                            API
                                                                  Web suivante : https://raic.org/fr/awards/prix-nationaux-
  Mark Hefferton MCIP                                API
                                                                  design-urbain-lauréats-de-2016. ■
  Dayna facca MCIP, RPP                             APPI
  Michael Klassen RPP, MCIP                         APPI                                                                                                                                                11
  Kirstin Pacheco RPP, MCIP                         APPI
  Lawrence Bird MCIP                                MPPI
  Steven McMillan MCIP                              MPPI
  Jessica Bester MCIP, RPP                          OPPI
                                                                                               index of advertisers
                                                                                                                                                                                               pl an canada | summer · éte 2016

  Rukshan de Silva MCIP, RPP                        OPPI
  Jana Kelemen MCIP, RPP                            OPPI                                                                                                                    Page No.
  John vos MCIP, RPP                                OPPI          Bunt & Associates Engineering Ltd. .............................................................31
                                                                  MacNaughton Hermsen Britten TO ............................................................31
  Ashley Beaton RPP, MCIP                           SPPI
                                                                  Malone Given Parsons Ltd. ............................................................................... 30
  Kenny Gobeil MCIP, RPP                            SPPI
                                                                  O2 Planning + Design Inc. ..................................................................................21
  Wes Holowachuck MCIP, RPP                         SPPI          Urban Strategies Inc. .............................................................................................14
  Alan Lindsay MCIP, RPP                            SPPI          Watson & Associates Economists Ltd. ...................................................... 30
  S. yvonne Prusak MCIP, RPP                        SPPI          Weston Consulting Group Inc. ........................................................................14
  Danny Roy MCIP, RPP                               SPPI          WSP Canada Inc. ........................................................................................................14
  Lee Smith MCIP, RPP                               SPPI
  Ian Williamson MCIP, RPP                          SPPI            for information on advertising Please contact
                                                                      Kim davies at naylor association solutions
                                                                    at (800) 665-2456, x 4423 or Kdavies@naylor.com
C I P S P E C I A l F E AT U R E |
                                   icu article du Fond

                                   hier à aujourd’hui |
                                   from yesterday to Today

                                   C         ette année, la conférence nationale
                                             sur l’urbanisme a lieu à Québec du
                                             5 au 8 juillet. Afin de vous donner
                                   un avant-goût du Congrès Accent 2016, le
                                   journal Le Soleil, de Québec vous offre un
                                                                                                      T        his year’s national planning conference is
                                                                                                               taking place in Québec from July 5-8. To
                                                                                                               give you a glimpse of what is awaiting you
                                                                                                      at Accent on Planning 2016 conference in Québec
                                                                                                      City. Le Soleil, Quebec City’s local newspaper offers
                                   aperçu du développement urbain survenu                             you a taste of the urban development that occurred
                                   dans les dernières décennies.                                      in the last decades.
                                      Au fil du temps, Québec a changé. Preuves, ces                     Over time, Québec has changed a great deal. The Québec of
                                   photos d’hier reprises aujourd’hui, pour comparer! Un              the past is immortalized in these pictures, and contrasted with
                                   projet photographique de Patrice Laroche, photographe              the present-day cityscapes to show the urban development of
                                   au journal Le Soleil de Québec. ■                                  the city. This project is an initiative of Le Soleil’s photographer,
                                                                                                      Patrice Laroche. ■

                                                                                                        today

                                   la rue sainte-anne / sainte-anne street

 12
pl an canada | summer · éte 2016

                                      1949

                                   PHOTO REPRODUITE AVEC l’AIMABlE AUTORISATION DE / PHOTO COURTESy OF: BANQ, E6, S7, SS1, P68686 OMER BEAUDOIN
                                   PHOTO REPRODUITE AVEC l’AIMABlE AUTORISATION DE / PHOTO COURTESy OF: PATRICE lAROCHE, lE SOlEIl
today

        Parliament Hill / la colline Parlementaire

1907

        PHOTO REPRODUITE AVEC l’AIMABlE AUTORISATION DE / PHOTO COURTESy OF: lA COllINE PARlEMENTAIRE EN 1907, BURKEWOOD WElBOURN ©MUSÉE MCCORD
        PHOTO REPRODUITE AVEC l’AIMABlE AUTORISATION DE / PHOTO COURTESy OF: PATRICE lAROCHE, lE SOlEIl

                                                                      today
        la Porte Prescott / la Porte Prescott

 1870

        PHOTO REPRODUITE AVEC l’AIMABlE AUTORISATION DE / PHOTO COURTESy OF:
        PORTE PRESCOTT VUE DE l’ExTÉRIEUR, QUÉBEC, QC. DON DE MR. DAVID ROSS MCCORD ©MUSÉE MCCORD
        PHOTO REPRODUITE AVEC l’AIMABlE AUTORISATION DE / PHOTO COURTESy OF: PATRICE lAROCHE, lE SOlEIl

                                                                       today

        la rue du Petit-champlain / Petit-champlain street

 1890
                                                                                                                                                        13

                                                                                                                                                  pl an canada | summer · éte 2016

        PHOTO REPRODUITE AVEC l’AIMABlE AUTORISATION DE / PHOTO COURTESy OF:
        WM.NOTMAN AND SON RUE DU PETIT CHAMPlAIN, QUÉBEC, VIEW-2535.0 ©MUSÉE MCCORD
        PHOTO REPRODUITE AVEC l’AIMABlE AUTORISATION DE / PHOTO COURTESy OF: PATRICE lAROCHE, lE SOlEIl
Community Planning
                                                    WE SEE
                                                    THRIVING
                                                                                                  Land Development

                                                                                                  Urban Design

                                                    COMMUNITIES                                   Community Engagement

                                                                                                  Geospatial Analysis & Web Design

                                            798253_WSP.indd 1                                                                        05/04/16 3:45 am

 14
pl an canada | summer · éte 2016

                                   799186_Urban.indd 1                     800585_Weston.indd
                                                                4/18/16 4:33 PM               1                                             3/10/16 3:58 PM
F R O M T H E E D I TO R I A l B OA R D
m e s s ag e d u c o m i t é d e r é dac t i o n

                                  s a n d e e P ag r aWa l P h d , A I C P, R P P, M C I P
                                  P l A n C A n A dA e d I t I o R I A l B oA R d /
                                  C o M I t é d e R é dAC t I o n d u P l A n C A n A dA

                                 Financing cities |
                                 fINANCER LES vILLES

I                                                                          C
     t is a pleasure to be introducing this special issue on                            ’est un plaisir pour moi que de vous présenter ce
     behalf of the Plan Canada Editorial Board. for this                                numéro spécial au nom du comité de rédaction
     special issue, financing Cities, we were able to bring                             de Plan Canada. Ce numéro spécial sur le
     together some of the leading economists and planners,                              financement des villes réunit quelques-uns des
both scholars and practitioners, from across the country                   principaux économistes et urbanistes, tant chercheurs que
to contribute.                                                             praticiens, de tout le pays.
    Current municipal fiscal crisis is the single biggest                      La crise fiscale est le plus grand défi auquel font face
challenge that Canadian cities face. Cities are severely                   les villes canadiennes. Ces dernières sont sévèrement
limited by few financing options and revenues available to                 limitées par le peu d’options de financement disponibles
provide adequate services and finance capital projects and                 pour fournir des services adéquats et financer des projets
infrastructure. This issue of Plan Canada focuses on this                  d’infrastructure. Ce numéro de Plan Canada met l’accent sur
important challenge by examining how reliable currently                    cet important défi en examinant la fiabilité des mécanismes
available financing mechanisms and revenue options are and                 de financement et en explorant les solutions de rechange.
exploring what other alternative options are available.                        Ce numéro est agencé de telle sorte que les premiers
    The issue is arranged in such a way that the first few                 essais (Slack, McMillan et Tassonyi et Conger) ouvrent la
essays (Slack, McMillan, and Tassonyi and Conger) set the                  voie en dressant l’inventaire des outils de financement dont
stage by clarifying some of the basics of financing tools                  disposent les villes canadiennes. L’essai de Slack cherche
available to Canadian cities. Slack’s essay also looks in to               aussi à anticiper ce que réservent les prochaines décennies.
the future as to what next few decades may hold for the                    La série d’articles suivante (Amborski, Singh, Siemiatycki
Canadian cities. The next set of articles (Amborski, Singh,                et Binning) entre dans les détails de chaque mécanisme
Siemiatycki, and Binning) go into the details of each financial            de financement comme la capture de la valeur foncière,
mechanism like land value capture, carbon tax, Public Private              la taxe sur le carbone, le partenariat public-privé et les
Partnerships and transit funding sources. The last three                   sources de financement du transport en commun. Les trois               15
essays by practitioners (Chisholm and Beck, fowler, and                    derniers essais signés par des praticiens (Chisholm et Beck,
Wollenberg) include the application and effect of a financial              fowler et Wollenberg) comprennent l’application et l’effet
tool in a real setting, the cost of sprawl subsidies and a                 d’un outil financier dans un contexte réel et une discussion
discussion with a private sector land development analyst on               avec analyste du secteur privé sur certaines questions
                                                                                                                                            pl an canada | summer · éte 2016

some important questions pertaining to financing.                          importantes liées au financement.
    The Editorial Board had hoped that this issue would                        Le Comité de rédaction avait espéré que ce numéro
enlighten our readers about this timely and topical subject                éclairerait les lecteurs sur ce thème d’actualité, le rendrait
matter, make it more accessible to those who are not fully                 plus accessible à ceux qui ne sont pas entièrement
versed with urban economics and other more specialized                     familiarisés avec l’économie urbaine et d’autres aspects
aspects of planning and bring the municipal fiscal                         plus spécialisés de l’urbanisme et mettrait à l’avant-plan
issue to the forefront. I hope that we were successful in                  la question de la fiscalité municipale. J’espère que nous y
realizing our goal. ■                                                      sommes parvenus. ■
financing
                                   canadian
                                   cities
                                   in the
                                   21st century
                                   By e n i d s l ac K P h d

                                   i
                                       t has become commonplace to say
                                       that Canadian cities are the engines
                                       of the national economy. Cities face
 16
                                   many challenges, however, ranging from
                                   changing demographics, increased income inequality,
                                   increasingly complex expenditure demands, downloading
pl an canada | summer · éte 2016

                                   of expenditures from federal and provincial governments,
                                   mounting infrastructure deficits, and more. These challenges have
                                   increased over the last few decades, while revenues available to cities to
                                   address them have remained largely the same: property taxes, user fees, and
                                   transfers from federal and provincial governments. Canadian cities have been
                                   pressing for access to more revenue sources, comparable to large U.S. and
                                   European cities. Can cities raise more revenues from existing sources? Should
                                   cities be given access to more sources of revenue?
for governments to operate efficiently, revenues must be clearly linked to expenditures. A direct
    linkage between expenditures and revenues results in more accountable government, with taxpayers
          being less averse to paying taxes when they know where their tax dollars are being spent.
               One way to provide that direct link is by levying user fees, which not only bring in needed
                    revenues but also play an important role in altering economic decisions. User fees
                       need to be properly designed to enable citizens to make efficient decisions
                            about how much of a service to consume and governments to make efficient
                              decisions about how much of the service to provide. Under-pricing (or not
                                 charging at all) leads to over-consumption and demands to build more
                                   under-priced infrastructure.
                                         The property tax is a good tax for local governments: property
                                              can’t move so it cannot escape the tax, it is fair based on the
                                                    benefits received from local government services, and
                                                    revenues are relatively stable and predictable. for many
                                                   cities, the evidence suggests that there is room to increase
                                                at least the residential property tax without a major impact
                                                 on the local economy. Even if property taxes were increased,
                                                        however, revenues may still not be sufficient to meet
                                                         the growing needs of large cities. A mix of taxes would
                                                         give cities flexibility to respond to local conditions such
                                                     as changes in the economy, evolving demographics and
                                                     expenditure needs, changes in the political climate, and
                                                      other factors. A broader mix of taxes would also allow
                                                      cities to achieve revenue growth, revenue stability, and
                                                      fairness in impact on taxpayers.
                                                          Many cities around the world have access to taxes such
                                                      as income, sales, hotel, fuel and motor vehicle taxes. for
                                                      Canadian cities, personal income taxes have the potential to
                                                     bring in the most significant amount of revenue. Although
                                                     it would be administratively efficient for cities to piggyback
                                                    onto the provincial tax (on income, fuel, et cetera) with the
                                                   province collecting the revenue and remitting it to cities, it
                                                  is critical that local governments set their own tax rate. In
                                                 this way, they would be accountable to taxpayers through the
                                               linking of taxes to the services consumed.
                                                  The federal and provincial governments have a role to
                                           play. Where local services spill over municipal (or provincial)
                                          boundaries, there is a role for these governments to provide
                                        conditional transfers that reflect the amount of the spillover.
                                      Although transfers are appropriate under these circumstances, for
                                    the bulk of their revenues, cities need to be empowered to meet their
                                 expenditure responsibilities with adequate and appropriate own-source                       17
                               revenues. When the level of government making the spending decisions
                            (municipalities) is not the same as that raising the money (provincial or
                        federal governments), accountability is blurred. Local governments should be
                    given the chance and challenge to raise more money on their own and they should
                                                                                                                       pl an canada | summer · éte 2016

               be accountable to their citizens for financing the services they provide. It’s always more
           pleasant for cities (and their politicians) to receive money from other governments, but such
    largesse is seldom reliable or free, as grants tend to reflect the priorities of the donor government.
   finally, regional structures are needed to address region-wide problems. Many issues faced by
big cities – economic competitiveness, transportation gridlock, urban sprawl, air and water pollution,
and social polarization – can only be solved at a regional level. The boundaries of formal government
structures seldom correspond to the scale of city-regions. This problem can be solved by creating
effective governance structures for their metropolitan regions. ■

enid slacK PhD, is the Director of the Institute on Municipal Finance and governance at the Munk School of global
Affairs at the University of Toronto.
Financing
                                   municipal
                                   infrastructure:
                                   The Basics
                                   By B r i a n c o n g e r m P P, r P P, m c i P
                                   a n d a l m o s ta s s o n y i P h d

 18
pl an canada | summer · éte 2016

                                    “tHe federal government Has tHe money,
                                    tHe Provincial governments Have tHe
                                    constitutional autHority, and local
                                    governments Have tHe resPonsiBility
                                    for maKing tHe actual investments.”
                                                             — HugH McKenzie
summary Municipalities own and maintain two-thirds of              résumé Les municipalités possèdent et maintiennent les
Canada’s stock of public infrastructure. How this                  deux tiers des stocks d’infrastructures publiques du Canada.
infrastructure is financed forms a critical link between the       Le mode de financement de ces infrastructures forme un
needs of residents and the priorities of local government,         lien essentiel entre les besoins des résidents et les priorités
with civic elections dominated by what gets built and              du gouvernement local. Les élections municipales sont alors
who pays for it. Local infrastructure needs reverberate            dominées par ce qui sera construit et qui paiera pour le
across all levels of government as increasingly complex            faire. Les besoins en infrastructures locales se répercutent à
and costly municipal infrastructure projects have led              tous les niveaux de gouvernement alors que les projets
many municipalities to rely on their provinces and Ottawa          d’infrastructure municipaux de plus en plus complexes et
to contribute significant funds. This article looks beyond         coûteux ont conduit de nombreuses municipalités à compter
the conditional grants that have become the lifeblood of           sur leurs provinces et sur Ottawa pour verser des fonds
municipalities across the country and reviews various              importants. Cet article regarde au-delà des subventions
methods and tools that local governments use to finance            conditionnelles qui sont devenues la pierre angulaire de
local infrastructure.                                              municipalités à travers le pays et examine diverses
                                                                   méthodes que les gouvernements locaux utilisent pour
                                                                   financer l’infrastructure locale.

M
          unicipal infrastructure is everywhere, from local streets and county roads,
          to bridges, sidewalks and landfills, and the potable water lines, sewer
          and storm systems tucked largely out of site. As we turn on the shower,
flush the toilet and walk/drive/ride to work, we often take this infrastructure
for granted, yet how local government finances the provision of municipal
infrastructure directly impacts not only our wallets but our overall quality of life.

                                                                   has noted, “the federal government has the money, the
           municiPal resPonsiBilities
                                                                   provincial governments have the constitutional authority,
    financing the building and maintenance of municipal            and local governments have the responsibility for making
infrastructure occurs within the parameters afforded to            the actual investments.”1
local governments by their respective provinces. In Canada,
as in other federal systems, constitutional bargaining
                                                                           municiPal revenue generation
has resulted in the assignment of certain expenditure
responsibilities and revenue sources to local government.             The connection between local expenditures, local
This is in line with the Subsidiarity Principle that states that   revenues and the efficient provision of public services –
government services should be provided by the lowest               known as the “Wicksellian connection” – has long been
level of government that can do so efficiently. Importantly        understood,2 meaning that there is widespread agreement
local governments are in the best position to understand,          on general principles that should be followed in making
or at the very least be aware of, local preference and             choices concerning the appropriate sources of local                    19
limitations on fiscal capacity. However, vertical fiscal           revenues. Generally speaking, the best municipal taxes are
imbalances among the various orders of government have             those that:
developed that may require intergovernmental transfers to          • Are based on an immobile tax base and therefore,
resolve differences in revenue capacity. As one observer              borne primarily by local residents (not exported)
                                                                                                                                     pl an canada | summer · éte 2016
• Do not create problems with harmonization or harmful             as resident preference and political willingness) influencing
                                     competition between local governments or local                   the pricing of user fees. Ultimately, the objective in setting
                                     governments and more senior levels of government                 fees should be to establish a clear link between services
                                   • Generate sufficient, stable and predictable revenues             received and the charges for them to avoid overinvestment
                                   • Are visible to ensure accountability and transparency            and temper inefficient demand.
                                   • Are perceived to be fair, and
                                   • Are easy to administer locally. 3
                                                                                                            cHarges sPecific to Beneficiaries
                                     What follows is a high-level exploration into the various
                                   methods and tools that local governments use to finance                Beneficiary specific charges are self-explanatory,
                                   municipal infrastructure.                                          however, it is important to note that often the target of a
                                                                                                      specific charge will shift the burden to groups not intended
                                                                                                      by a municipality. Three beneficiary specific charges are
                                                  oWn-source revenues
                                                                                                      covered herein.
                                       Own-Source Revenue (OSR) is the revenue that a                     development charges: Development charges (sometimes
                                   municipality raises by levying taxes or by generating internal     referred to as off-site levies), where a specific dollar value
                                   revenue through fees. Three forms of OSR are of particular         per lot is imposed on developers, are used to finance the
                                   importance to local government.                                    off-site capital costs of new development. Historically,
                                       general operating revenues and reserves: from the              development charges have been largely used to finance
                                   perspective of capital financing, the use of general funds is      hard services, such as water supply, sewage treatment, trunk
                                   most appropriate for the acquisition of assets with a short        mains and roads. A development charge corresponds best to
                                   life expectancy (police cars and fire engines) or recurrent        the benefits-received principle when the costs and benefits
                                   expenditures usually tied to maintenance and repairs               of the infrastructure for each property can be determined.
                                   (roads, sidewalks, street lighting and parks). The use of          An efficient development charge must cover the full cost of
                                   current revenues may be desirable when the benefits of             delivering the service, a capacity component which covers
                                   capital projects accrue to current users. General operating        the capital cost of constructing the facility, plus a location
                                   revenue funds are not desirable for one-off expenditures or        or distance/density charge that reflects the capital cost of
                                   large fixed assets such as libraries or other civic buildings      extending the service to properties or neighbourhoods. The
                                   or assets with a long life expectancy such as water and            use of development charges is highly regulated in terms
                                   sewer systems.                                                     of the services that may be financed and the attribution of
                                       Property taxes: The real property tax (real property           costs to new development.
                                   being immovable property, or land and anything attached to             value capture levies: value capture levies are designed
                                   the land, as opposed to personal property that is movable)         to recover the increase in land value arising from a public
                                   is the only tax of any direct importance for municipalities        investment. The levy permits the municipality to capture
                                   in Canada. Provincial governments in most provinces and            (some of) the economic rents accruing to the private sector
                                   territories and school boards throughout the Prairies also         that have been created by local infrastructure spending.
                                   use it. Property-related taxes include revenue from the            value may be captured in a variety of ways, including a
                                   general property tax on real property, special assessments         requirement that the developer provide various facilities
                                   (benefiting area taxes), payments in lieu of taxes and land        and infrastructure or cash, in return for being permitted
                                   transfer taxes. As the property tax is related to the collective   to undertake the development that the new municipal
                                   benefits rather than the specific benefits of municipal            infrastructure facilitates and makes profitable. value may
                                   services and is not established as a price for consuming           also be captured through a tax on commercial revenues
20                                 them, such services are often over-consumed and over-              generated by property benefited by the infrastructure.
                                   provided. furthermore, given the relatively higher effective       Alternatively, and more likely, a special annual tax on
                                   burdens faced by non-residential taxpayers, the probability        property could be levied on value added. value capture
                                   of over-provision is enhanced, as is the probability               levies are most suitable for mega-projects such as rapid
                                   of tax exporting.                                                  transit expansion.
pl an canada | summer · éte 2016

                                       user fees: The first rule of sensible local finance,               shared tax field earmarking: Earmarking from a shared
                                   “wherever possible, charge,” when followed can enhance             tax field is typically administered through reserve funds.
                                   economic efficiency by tying benefits to users. Canadian           The advantage of earmarking is that it provides a close link
                                   municipalities are allowed to charge user fees and the courts      between services provided by a capital asset and taxes to
                                   have upheld the right to charge regulatory fees as well. User      finance the asset — potentially providing a boost in public
                                   fees fund some or all of the costs of a range of municipal         support. However, there are some issues in situations where
                                   services in Canada. The fees range from fixed charges that         funds are channeled into activities that do not have high
                                   are unrelated to consumption to charges that vary directly         public priorities, and earmarking may connect expenditures
                                   with the quantity consumed, or a mix of the two. The pricing       with revenue sources in totally illogical ways. This approach
                                   structure of user fees may cover all or only a portion of real     presents similar shortcomings to conditional grants in
                                   production and delivery costs, with numerous inputs (such          that it may distort local preferences and provide wrong
incentives for efficient behaviour. The principal advantage             the importance of meeting debt-service obligations within
of earmarking revenues from a shared tax field is likely to be          local government.
political acceptability; however, there is little consensus that
sharing a piggybacked tax is an appropriate local tax.
                                                                                                    conclusion

                                                                            The effective financing of municipal infrastructure
                    otHer metHods
                                                                        is important to the well-being of all Canadians. How
   There are several other mechanisms that local                        municipalities pay for local infrastructure impacts the choices
governments can employ to finance municipal infrastructure,             residents and businesses make, which in turn provides local
or receive infrastructure development in-kind.                          governments with the direction they need to build effective
   tax increment financing: In some provinces, variations               and equitable communities. ■
on the U.S. experience with tax increment financing (TIf)
are permitted. In general, TIfs involve defining an area,               RefeRences
usually in need of brownfield remediation or revitalization             1. Mackenzie, Hugh. Canada’s Infrastructure Gap: where it Came From and
wherein local tax revenue is divided into two categories:                  Why it Will Cost So Much to Close. Canadian Centre for Policy
                                                                           Alternatives. 2013; 13
pre-assessed development and the increased assessed                     2. Bird, Richard M. and Enid Slack. “Local Taxes and Local Expenditures in
value. Revenues from the increased assessed value are then                 Developing Countries: Strengthening the Wicksellian Connection,”
typically dedicated to the servicing of debt incurred to                   Public Administration and Development 2014;34(5),1
                                                                        3. Kitchen, Harry M., & Almos T. Tassonyi. “Municipal Taxes and User fees.”
upgrade infrastructure. Criticisms of tax increment financing              In H. Kerr, K. McKenzie, & J. Mintz, Tax Policy in Canada. Toronto:
include the fact that targeting funds for a TIf development                Canadian Tax foundation. 2012, 3

may be at the expense of overall development in a given
                                                                        Brian W. conger MPP, RPP, MCIP, is the Research lead with the Urban
municipality and that the revenues can impair the finances
                                                                        Policy Program at the University of Calgary’s School of Public Policy.
of other taxing bodies that share in the targeted areas’ tax
base, depending on whether the grantor has an exclusive                 almos t. tassonyi PhD, is the Director of the Urban Policy Program and
right to the incremental revenue.                                       an Executive Fellow at the University of Calgary’s School of Public Policy.
   density-for-Benefit mechanisms: Density-for-benefit
                                                                        More information on financing municipal infrastructure can be found in
mechanisms used in several provinces are a well-known
                                                                        their joint paper “An Exploration into the Municipal Capacity to Finance
form of securing services and infrastructure in place
                                                                        Capital Infrastructure” available at http://policyschool.ucalgary.ca/
of revenue. The principal rationales for this mechanism
are to trade infrastructure for increased density, to take
a share of the value created for the community and to                                                                                        Halifax
                                                                                                                                           Regional
compensate for negative externalities such as increased                                                                                  Municipality
                                                                                                                                              Centre
traffic or blocking views and light. The framework created                                                                                      Plan
by different municipalities can be scaled from individual
buildings or developments to ward-level amenities, or a
city-wide application.
   Borrowing: Municipalities can choose to finance capital
through long-term borrowing, matching the life of an
asset more closely to the costs of acquisition. Except
for the City of Toronto, municipalities are limited by
provincial statute to borrowing related to financing the
costs of capital projects. However, these bonds, while                                                                                                               21
project-related, take the form of general obligation bonds
with joint and several liability provisions, secured by the
whole of the revenue base of the issuing jurisdiction.
furthermore, each province also has rules governing the
                                                                                                                                                               pl an canada | summer · éte 2016

instruments that may be issued, as well as currencies and
hedging if the debentures are issued in a foreign currency.
Given the lumpiness of capital investments, the annual
preparation of operating budgets and the intolerance
for revenue increases, borrowing at the municipal level
can act as a smoothing device for the funding process.                        emphasizes an integrated approach
Borrowing rules have provided a hard budget constraint                        to urban design and planning, one in which
for municipalities, creating an incentive for conservative                    infrastructure, landscape, economy, and culture
financial management and have likely enhanced their                           inform each other and enrich the city.
ability to borrow. This has led to pay-as you-go policies                     o2design.com
with respect to capital financing and a strong awareness of

                                                                   807361_Planning.indd 1                                                     5/2/16 7:47 PM
canadian cities:
                                                      Present Structure
                                                   and Possible Alternatives
                                                                                    By m e lv i l l e m c m i l l a n P h d

                                   summary Canada’s cities have been very successful                        résumé Les villes du Canada ont très bien réussi à
                                   at providing local public services. The continuous                       fournir des services publics locaux. Le défi continu de
                                   challenge of balancing demands and resources has                         l’équilibre entre les demandes et les ressources a souvent
                                   often led to calls for additional sources of funding. The                conduit à des appels à d’autres sources de financement.
                                   objective of this paper is to help understand better the                 L’objectif de cet article est d’aider à mieux comprendre
                                   situation and options. It reviews the existing sources                   la situation et les options. Il examine les sources de
                                   of funding, offers assessments, and explores some                        financement existantes, offre des évaluations et explore
                                   options. Alternatives have a range of pros and cons.                     certaines options. Les alternatives ont une gamme
                                                                                                            d’avantages et d’inconvénients.

                                              hen thinking of financing cities, Canadians typically think of
                                              property taxes. City financing, however, is considerably more complicated
                                            and funding sources more diverse. In addition, the reliance on specific
                                   sources often varies considerably among cities.
                                       Demonstrating these characteristics accurately is not                municipal government sources in 2011: selected municipalities
                                   simple. Canada has no city finance database and provincial                                          City of Edmonton Alberta Municipalities Ontario Municipalities
                                   data are not necessarily consistent. As a compromise within            Taxes on Property                34.5                 40.9                    45.2
                                   the available space, I illustrate with data from one city,             Sales of Goods & Services        19.5                 20.5                    21.4
                                   Edmonton, and for municipalities in two provinces, Alberta             Transfers                        21.5                 21.7                    22.5
                                   and Ontario but, in the discussion, I will point to some of the        Property/investment income       10.8                 3.2                     2.1
                                   major variations.1                                                     Fines & Penalties                1.7                  1.3                     1.1
                                       The accompanying table indicates the diversity of                  Licences, Permits, Fees          1.8
                                                                                                                                                                12.3                    7.5
22                                 revenue sources and suggests considerable similarity among
                                                                                                          Franchise Fees                   4.1
                                                                                                          Developer Contributions          6.0
                                   the three observations. Property taxes are the single major
                                                                                                          Sources: City of Edmonton Annual Report; provincial and municipal
                                   source of revenue for municipal governments. However,
                                                                                                          data calculated from CANSIM Table 3850037.
                                   sales of goods and services and transfers from other levels
                                   of government (primarily provincial) are also important                property/investment income is comparatively large at about
pl an canada | summer · éte 2016

                                   with each representing about one-fifth of total revenues.              one-tenth of total revenue. This feature is the consequence,
                                   Together property taxes, sales and transfers account for 75            particularly, of the City owning a telephone company and
                                   to 90 per cent of revenues. The major difference appearing             an electric power company. Those interests were either sold
                                   between Alberta and Ontario municipalities is that Alberta             (telephones and power generation) and the funds invested
                                   municipalities utilize more heavily various fees and charges           or (electricity distribution) established as a City-owned and
                                   (licences, permits, fees; franchise fees, and developer                dividend-paying business entity. The resulting returns reduce
                                   contributions) than is the case in Ontario – 12.3 per cent of          the demands on property taxes.
                                   revenue versus 7.5 per cent – and rely somewhat less on                   The history of utility ownership affords other insights.
                                   property taxes.                                                        Sales of goods and services primarily represent user charges
                                       The finances of the City of Edmonton provide an                    for city services. Typical of those are charges for water,
                                   interesting example. The most striking feature is that                 sewerage and solid waste services, use of recreational
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