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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
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
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. ■
À PIED D’OEUvRE Plan Canada is the official publication of the Canadian Institute of Planners Plan Canada est la revue officielle de L’Institut canadien des urbanistes 141 avenue Laurier Avenue West/ouest Suite/Bureau 1112 Ottawa, ON K1p 5J3 A Tel/Tél. : (800) 207-2138 (613) 237-7526 Fax/Téléc. : (613) 237-7045 vec l’adoption d’un L’ICU travaille à des projets www.cip-icu.ca | admin@cip-icu.ca Règlement administratif prometteurs. Les comités se sont Plan Canada is published quarterly: March, June, September, December. All rights reserved. Reproduction in whole or qui instaure un nouveau adjoint de nouveaux membres qui ont in part without the expressed permission of cIp is strictly forbidden. Articles contained herein do not necessarily modèle de gouvernance, entrepris de renouer le contact avec represent the views of the Canadian Institute of Planners. l’ICU inaugure une nouvelle ère. les membres et les interlocuteurs et Plan Canada paraît quatre fois par année, en mars, en juin, en septembre et en décembre.Tous droits réservés. Le cheminement vers ce moment d’examiner les possibilités de bonifier La reproduction en tout ou en partie de cette publication sans historique pour l’ICU a été ponctué les politiques. Par ses activités de le consentement écrit de l’Icu est strictement interdite. Les articles publiés dans ce journal ne reflètent pas 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/ Plan-Canada.Legal Deposit/Dépôt légal National Library of 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 ISSN 0032-0544 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 Andrea Németh 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 les représente. communications@cip-icu.ca. ■
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 201 Accent_ you’ve been working on or reading. CIP_ICU NOUS vOULONS RECEvOIR CanadianInstituteofPlanners DE vOS NOUvELLES. L’ICU veut être présent dans les médias sociaux. Suivez-nous pour être au 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!
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. »
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. »
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. »
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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