The C5: Historic Meeting of Mayors of Canada’S Hub Cities with Jane Jacobs · Defining the Challenge of Urban Canada · New Responsibilities and Fiscal Reform

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ver two days in May of this graphy, Jacobs identified five of Ideas That Matter year, Jane Jacobs met with the Canada’s cities that come closest to Volume 2, Number 1 Omayors of five of Canada’s this definition and invited the mayors Executive Publisher: Alan Broadbent largest and most economically signifi- of Vancouver, Calgary, Toronto and Editor: Mary W. Rowe cant cities to discuss issues of mutual Montreal to meet with her and her [email protected] concern and importance. This his- co-host Glen Murray, the Mayor of Contributors to this issue: Winnipeg, to initiate discussions she Taken from transcripts of the C5 meeting of toric meeting, known as the C5, was mayors with Jane Jacobs on May 25-26, 2001 an outgrowth of a series of discussions, thinks are of critical importance to in Winnipeg, Manitoba convened by urban advocate, busi- Canada’s future. Copyright: All articles © the author, 2001 nessman and ITM Executive Publisher Each mayor was encouraged to Permission to reproduce should be requested Alan Broadbent over a twenty month bring a delegation of up to five mem- through the publisher. period, in which Jacobs had partici- bers from their community to add Submission information: pated. breadth to the discussion of their We want to hear from you. Readers are encour- city’s challenges. Over the two days, aged to submit their opinions in letters to the The C5 meeting was initiated by editor. Published letters may be edited for style Jacobs as a means of bringing together the group met as a whole several times or length. In addition, we welcome articles, the leadership from five Canadian and the mayors met in camera from and would prefer to receive them in an elec- cities whose economies she considers time to time. At the conclusion of the tronic format. The publisher cannot accept responsibility for unsolicited manuscripts or to be most at risk because of their out- session on Friday afternoon, the may- photographs. ors and Jacobs discussed the tremen- dated, paternal relationships with Subscriptions: ‘senior’ levels of government. dous challenges current fiscal and • In Canada, $26.75 Cdn (includes GST) for In a September 2000 presentation governance relationships pose for one year. to a meeting of senior bureaucrats their cities. They publicly stated their • In the US, $32 for one year. • Elsewhere, $40 for one year. convened by the Office of the Privy commitment to work collaboratively, Call 1-800-463-9937 in North America, Council, Jacobs had lamented that with other Canadian mayors, and or (519) 376-4233 to subscribe using your cred- Canada was “a poor habitat” for fos- with the two other levels of govern- it card; otherwise send your cheque or money tering what she defined as creative ment, for a new deal that empowers order in Canadian dollars, payable to Ideas cities to manage themselves more That Matter, to the address listed below. Or cities: ones with vibrant, diverse subscribe on-line at: www.ideasthatmatter.com economies that re-create themselves effectively. The C5 will continue its Ideas That MatterTM is a quarterly to stimulate and generate wealth for redistribu- discussion in Vancouver in January, public discourse published by tion, integrate large numbers of new- 2002. The following is excerpted from The Ginger Press comers and act as gateways, or hubs, the C5 meeting held at the historic 848 Second Ave East Fort Garry Hotel in downtown Owen Sound, Ontario, Canada N4K 2H3 for interconnected regional eco- P: (519) 376-4233 nomies. Jacobs stated that Canada Winnipeg, Manitoba. F: (519) 376-9871 had created too few of these kinds of E: [email protected] urban economies to meet the needs of Mary W. Rowe a country of this size. More concerned [email protected] with economic diversity than geo- September 2001

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2 Volume 2 No. 1 C5: Historic First Meeting of Canadian Mayors with Jane Jacobs

MAYOR GLEN MURRAY: idea and it has taken since last become a highly urbanized country Alan Broadbent founded the September to bring us all together. in which most citizens live in urban Maytree Foundation and was on the My role here is as an interested citi- regions. Another part of the change founding board of the Canadian zen who has put some resources is the emergence in our cities of Urban Institute. He has been a behind the C5 effort, in consort political leaders with larger visions: financier of Jane’s work and a with Jane Jacobs. politicians with deep experience and builder of our friendships. He has This meeting is a wonderful sign broad sophistication. These mayors been a clear and resonant voice in of a new era in Canada, when the have potent political power. The the debate about urban life in this mayors of our major cities begin to recently amalgamated City of country since long before it was take control of the destiny of urban Toronto has elected its mayor in two trendy. Had he not started bringing Canada. Traditionally, mayors have elections now with more votes than together much smaller groups of often been supplicants before senior any politician has ever received in a people with great imaginations and governments; their focus was local Canadian election. The about-to-be high hopes, we would not be here and the politics in which they elected mayor of amalgamated today. Alan Broadbent is one of the engaged was parochial. The mayors Montreal will have the same experi- unsung heroes in this country. delicately managed relationships ence. And the situation is the same with Ottawa or their provincial cap- in our other large cities. ALAN BROADBENT: ital in order to gain favour on behalf Our mayors have the ability to The C5 concept grew out of discus- of their city’s needs, seldom their mobilize political power in ways that sions we had in the Toronto region desires. are yet untried for the most part; about what must be done to empow- But something is happening in they can significantly improve the er Canadian cities. Two years ago, I Canada’s cities. Part of it is related way most Canadians are governed. convened a meeting of As a citizen interested experts to explore these in these issues, I see this as issues. At the end of the time when the forces those two days, about are beginning to come twenty-five people con- together to align our gov- tinued to meet over the ernmental arrangements next year, looking for in Canada with the way the best way to express the world actually works. concern about the lack Increasingly, powers are of power of our cities. moving up to national We settled on stating governments and down to the basic ideas in a local governments, partic- Charter for the Toronto ularly on a regional basis. Region. It was during And, also increasingly, those discussions that economic competition is the idea of a meeting between city regions. of mayors first came Alan Broadbent, Chairman, Avana Capital Corporation. We need greater control up; it came up again at over many of the factors a meeting Jane attended in Ottawa to what Jane has described. We are that create successful citizens and with staff from the Privy Council no longer an agrarian collection of societies. Some of us would go so far Office. We decided to run with the provincial governments. We have as to include education, health care,

Volume 2 No. 1 3 THE URBAN CHALLENGE and immigration settlement, in the full range of powers they need to and her many ground-breaking addition to the usual infrastructure thrive and be competitive on both books including The Death and Life elements of cities. sides of the ledger: revenues and of Great American Cities. I’ve often When you parse through all the expenditures. As advocates for the thought if all of us in city politics arguments about greater control of cities and as mayors, we need to had her inspiration and insight, destiny for our large metropolitan abandon our former posture as sup- what great cities we would truly regions, you will eventually arrive at plicants merely looking for more have. I couldn’t think of a more the need for more secure sources of money and better treatment. We inspiring person to bring us all revenue. In Canada, on average, need to speak as leaders empowered together. Jane is someone to whom cities rely on the property tax for 45 by large constituencies. We must we owe so much for our understand- percent of operating revenues, with recognize that our cities are different ing of cities. the rest coming from fees and senior one from the other, and that one government grants. In the U.S., solution will not fit them all. JANE JACOBS: cities receive 15 percent from prop- Our desired outcomes must Glen had a lot more to do with get- erty tax, and in Europe it is well include new arrangements which ting this affair going and organized under 10 percent. The rest comes may lead to more money and more than he indicates. It’s been wonder- from senior government grants and a control, but our first concern is that ful working with him. I’m really whole range of rev- thrilled about this meeting. enue tools: shares of I can’t tell you how much I income tax, consump- admire the mayors of our tion taxes such as gas complicated big cities. I or hotel taxes, bond think they’re the most issuance, and local important elected officials sales tax. These are we have. They certainly not in addition to have the most intricate jobs state and federal and are closest to the peo- taxes, but are actual ple. I feel honoured to have shares of existing tax a chance to speak with bases made possible these five leaders at once. because cities relieve Dreams come true some- senior governments times. from having to do One reason you are the things, thereby reduc- important elected officials ing their costs. of the country, in my view, The five mayors C5 Mayors Bourque, Murray, Duerr, Lastman and Owen with Jane Jacobs. is because cities – the at this C5 meeting large cities – are Canada’s know better than any of us the terri- the mayors have a seat at the table major economic assets. Without ble conundrum they face: they are when government arrangements are Vancouver, Calgary, Toronto, accountable to large numbers of cit- being discussed in Canada and when Montreal, and Winnipeg – without izens to deliver government and ser- policies and programs which affect these cities, Canada would be so vices, but they control few of the cities are designed and implement- poor it would qualify as a third world levers that deliver the goods. It is an ed. It is no longer good enough to country. The federal and provincial unenviable position, having to artic- exclude our mayors when the income and consumption taxes that ulate a vision of the future, as good provinces and federal government businesses and residents in these five leaders must, but lacking the control meet. The cities are too central to cities pay are what make federal and to bring that future about with any our well-being as Canadians. It is provincial programs and activities certainty. time to stand up and be heard, and financially possible. Immigrants and It is time in Canada to begin to to be at the table. their children rely overwhelmingly change. We need to recognize that on these cities for income, work, the urban regions are the principal MAYOR GLEN MURRAY: educational and other opportunities. economic, social and cultural Jane Jacobs is not only a great So do domestic migrants from rural engines of our country. We need to thinker she is also a great facilitator. Canada. enable city governments to manage Many of you know her by her work Many little cities and company

4 Volume 2 No. 1 THE URBAN CHALLENGE towns throughout the country that even the current five can’t be taken with Boston and Montreal and think they have nothing much for granted. Chicago were enough. Their fore- directly to do with big cities actual- For instance, suppose that sight, whatever the reasons for it by ly rely on transplanted industries or Winnipeg were to stagnate and dry hindsight, was brilliant: there offices that were generated in the up, then the huge geographical gap absolutely should be linkage across large cities. Many of them also rely between Calgary and Toronto would the whole country. In recent times, heavily or even entirely on sales to become a huge economic gap. You these links have not been strength- businesses and consumers in these know this isn’t so hypothetical – ening the way they should. That’s major cities and their regions. Cities Winnipeg has come perilously close one reason I’m so glad the mayors are the primary economic generators to stagnating. The well-being of the have decided to come together like of Canada and are becoming more so as time goes on. The other adaptation has been using inefficient Our host, Mayor Glen Murray, calls these hub cities. It’s a good and circuitous permissions and grants from descriptive term, more succinct than provincial governments, and sporadic acts of largess saying economically creative, or economically diverse, or economi- from the federal government, to get necessary cally synergistic. The term describes money to the cities. This is very crippling. the remarkable economic and social powers of these cities. Hub cities are Jane Jacobs not just big conglomerations of people, they are very complex organ- other four large cities can’t be taken this. One city’s ascendancy is not isms. They are the primary engines for granted either. I suspect that all another city’s decline at all. In every of our economy. you mayors have wish lists of ser- case, when these cities are better off, In spite of the fact that these five vices and infrastructure that your it’s better for everybody. This is not cities exist, a lot of other facts tell us cities need, in some cases very a Darwinian world of killing each that Canada really isn’t a very good urgently. Some of you, maybe all of other to prosper, quite the contrary. environment for hub cities. For one you, have ideas about how these Cooperation is even more important thing, there are large areas of the could be delivered in new and better than competition. country that don’t have a hub city to ways. Because you lack the The weakening of links among help pull them out of poverty and resources, possibilities have to be these cities is troubling. If it contin- reduce their dependence on govern- postponed or even abandoned. ues we can expect that Canada will ment subsidies. For instance, the Canada is falling behind, especially become a country in name only. The Atlantic provinces don’t have a sin- in fields like waste recycling, energy everyday working relationships gle hub city. Saskatchewan doesn’t conservation, public transit, assisted among the cities are so important have one. There are large areas of housing, and methods and equip- they couldn’t prosper without the Quebec, Ontario, Manitoba, ment for preventing toxic pollution. links. Canada is not only a poor Alberta and British Columbia that It’s a historic mission of cities to environment for the emergence of don’t have hub cities. It’s not that solve such problems. If they don’t, hub cities but it is also an inade- they don’t have cities per se; some of nobody does. quate environment for the mainte- these areas do have promising cities We often talk about cities only in nance of those we do have. The with interesting and admirable terms of economic competition with symptoms show up locally and in attributes, but somehow they remain each other. Cities are also very different ways but they extend coun- arrested in a kind of economic ado- cooperative. They have to be or trywide. There’s no favoured part of lescence. With luck in the next half they don’t sustain themselves or the country that is exempt from this. century maybe one will grow up and each other. For example, no hub city Changes of government and govern- take off the way Calgary has done. in history, and certainly none today, ment policy don’t correct these That’s too slow and it isn’t enough. exists in isolation from other hub things. There is a systemic flaw, For a country the size of Canada, cities. They need each other. embedded in the financial and polit- with the very capable and striving It’s lucky that the founders of our ical arrangements, which clearly population that Canada has, five country insisted on the transconti- affects the entire country. It’s such a hub cities is very few. It’s distressing nental railroad instead of thinking silly flaw, which dates back to the because there’s a need for more, and that links with European cities and time when most Canadians lived in

Volume 2 No. 1 5 THE URBAN CHALLENGE little market towns, narrowly based their differing needs and opportuni- be made to understand how the pre- company towns and villages based ties at any given time. In reality, sent situation is killing the geese that on agricultural, logging and fishing. municipalities do not march in step lay these golden eggs, they will listen. I’m talking about 150 years ago, with each other. In Canada, they are You have allies in your own region, in when it was quite logical for munic- forced to act like groups of puppets the city regions that you’ve generat- ipalities to be the responsibilities of that are fastened to the same sets of ed, and in other mayors and councils provinces, bracketed between tav- controlling strings. who realize they share your same frus- erns and asylums. This said, what can be done about trations and difficulties. You have As wards of the province, cities it? That’s the reason for this meeting. potential allies in funded cities that were allowed only to levy property Historically, when cities have needed must rely on you to break a trail that taxes. This was not a bad idea when reforms, they have had to take the will benefit them as well. You have a their capabilities in most cases were initiative. If the C5 doesn’t take the lot going for you. limited to maintaining roads, fight- initiative in this, I don’t know who Probably the hardest thing in seeking fires, providing water and sew- will or who can. You cities are in a ing reform will be for you and your ers, keeping drunks in hand and, in good position to take the lead. For governments to overcome the old general, directly servicing proper- one thing, you can make a case that ingrained habits of municipal depen- ties. Times have changed beyond the federal government will have to dence and the practice of opportunis- recognition. Canadian municipali- heed very seriously: it is really very tic beggaring. However, I think you ties are no longer country bumpkin dependent on revenues from the can do it. You have an opportunity villages – they have wide ranges of cities. If the federal government can here to think out of the box. It’s an abilities and human capital. Yet the old arrangements have remained. C5 Participants Basically all that’s been done is to His Worship Pierre Bourque Vancouver make some adaptations that were Mayor,The City of Montreal Councillor Gordon Price absolutely necessary, such as loading His Worship Al Duerr The City of Vancouver onto the property taxes all kinds of Mayor,The City of Calgary Ivan Head, O.C., Q.C. municipal costs that have nothing His Worship Mel Lastman Mayor,The City of Toronto Winnipeg to do with servicing property. This His Worship Glen Murray Leonard Asper not only bloats property taxes, it Mayor,The City of Winnipeg President & CEO, Canwest Global skews them with destructive unin- His Worship Philip Owen Communications Inc. tended consequences. They become Mayor,The City of Vancouver Annitta Stenning Jane Jacobs President & CEO, CentreVenture regressive and then inequitable. Development Corporation The other adaptation has been Delegates: Nicholas Hirst using inefficient and circuitous per- Calgary Editor,Winnipeg Free Press missions and grants from provincial Judy Bader Paul Moist governments and sporadic acts of Executive Director, Healthy Communities, President, CUPE Local 500 Calgary Regional Health Authority largess from the federal government Patricia Trottier Additional participants: to get necessary money to the cities. Co-Chair, Promoting Calgary, Inc. Alan Broadbent, C.M. This is very crippling. It demeans Dr. Roger Gibbins Chairman, Avana Capital Corporation city governments, putting them in President & CEO, Canada West Judy Rogers, Chief Administrative Officer the demoralizing position of being Foundation The City of Vancouver Dale Stanway Gail Stephens, Chief Administrative Officer considered incompetent to manage CEO,The City of Calgary The City of Winnipeg their own internal affairs. It makes beggars out of them as they have to Montreal C5 Support: plead and wheedle to get some of Ms. Michèle Thibodeau-DeGuire David Walker, Independent Consultant President & CEO Centraide Montreal Don Stevenson, Independent Consultant the money back that their own tax- Mr. Fabien Cournoyer Ratna Omidvar,The Maytree Foundation payers have paid to the federal and Director, Economic & Urban Department, Evelyne Guindon provincial governments. City of Montreal Communications Coordinator The grants, permissions, and Danielle Keefler, Media Savvy Consulting Inc. largess can’t help but reflect the pri- To r onto Caroline Neufeld, C5 Coordinator, Executive Dr. Anne Golden Policy Secretariat,The City of Winnipeg orities of those other levels of gov- President, United Way of Greater Toronto Mary W. Rowe, Facilitator ernment. They absolutely don’t Elyse Allan reflect what different cities have or President & CEO,Toronto Board of Trade

6 Volume 2 No. 1 THE URBAN CHALLENGE unprecedented and historic occasion occurred during the 1980s and the other cities look at us and say, gee, for the mayors of the five hub cities 1990s was an absolute transformation this must be wonderful for Calgary. of Canada to meet together. You can through diversification of our econo- We have great immigration; we’re discuss not how it has been, but how my. We’re still the petroleum centre one of Canada’s fastest growing cities. it could be. of Canada; the oil and gas industry But that growth and prosperity have For instance, why shouldn’t the federal government shift its alloca- Even with incredible prosperity, we are tions of income tax points and consumption tax yields so that the experiencing the exact same challenges that all of resources the cities really need could the other major cities are facing across this country. go to them directly instead of cir- cuitously with strings attached? This Mayor Al Duerr is not charity, this is what the cities pay and even then they wouldn’t be remains a big generator of wealth in given us an imbalance: who benefits getting back all of what they have our province. But the growth and from the growth and prosperity and paid. It’s earned, it’s deserved and it’s new employment in Calgary has been who pays the price? I should be stand- needed. I’m sure the mayors will be in the diversified sectors where we ing here and telling you that we have ingenious in thinking of other possi- are getting our strength and sustain- the world by the tail, but we don’t. bilities. This is an opportunity for the ability. Being forced to come to grips The bottom line is, Calgary is mayors to organize themselves with with the loss of our one industry struggling. Four years ago we didn’t the object of actually getting reform allowed us to become the masters of have a significant homeless problem. not just talking about it. our destiny. This fall, we’re opening two brand There are cities that feel a little I think, in many respects, that the new purpose-built homeless shelters browned off by having been left out economic challenge we faced gave us that are going to house over 700 peo- of this meeting. I got one letter this time to reflect on many other ple. We have a huge affordable hous- morning from the mayor of such a changes as well. Our entire down- ing problem. We have transportation city who complained about that, and town was going to become an office problems. We also have Calgarians told how his city deserved to be in on complex. I was a Calgary city planner enjoying incredible economic pros- this meeting too. You have allies: the at the time and City Council was so perity who are beginning to wonder C5 can become the C7, the C10, proud because they had approved the what that prosperity is all about. who knows? If you can do this kind of highest density on any property in You’re going to hear a lot over the self-organizing, and I see no reason the world – in Calgary. That was course of this discussion about where why you can’t, you could very well quite an achievement at that time; taxes go. Calgary collects about 8 achieve something that is as signifi- an upstart young city feeling its oats. percent of the taxes that are paid in cant and important for our country As planners we weren’t very proud at Calgary even though the city pays for today as the Fathers of Confederation all; we abhorred what was going on. virtually all of the essential elements achieved in their day for Canada. The downturn caused us to not that contribute to the quality of life only diversify our economy but also in the city other than health care and to rethink what it took to make a sus- education. Those numbers will vary a tainable city. What you see in little bit as you go from city to city Calgary right now is a product of that but the essential issue is the same. rethink. We have a much stronger Even with incredible prosperity, we downtown, with more residential are experiencing the exact same chal- units. We have placed a much greater lenges that all of the other major MAYOR AL DUERR: CALGARY focus on what the essence of a city is cities are facing across this country. Calgary is a city that was born of agri- all about; we are discovering all of So prosperity – more money and culture and grew with oil. We were those dimensions that make a com- stronger economies – is not the solu- primarily a one-industry town until munity. We have a long way to go. tion. You can all try and get more busi- 1982 when the bottom fell out of our Right now we’re a city in a ness – attract more activity to your economy. In some respects, this was province that is enjoying prosperity city – but that will not address the fun- one of the most difficult periods of that is quite unbelievable in the damental imbalance that is very much our existence as a city but in many national context. We’re looking at a reality in Calgary and other urban ways it provided the opportunity for surpluses of $8 to $10 billion a year in centres across this country. the rebirth of Calgary. What provincial revenues from petroleum; How do we address that? I very

Volume 2 No. 1 7 THE URBAN CHALLENGE much agree with Jane’s comment that the country. By the year 2030, the we should stop looking at an envi- entire sewer and water system under ronment where we’re forced to be the City of Vancouver will be totally beggars. We have a right to adequate replaced from the combined pipe to a revenues to deal with the responsibil- sewer and storm water pipe. The fed- ities that are being foisted on us. I eral government told the Port that don’t disagree with municipalities they’re responsible for outflows that having increased responsibilities. go into any waterways in the City of Municipalities should probably be Vancouver. The Port has said that dealing with their own urban housing the city is liable; they are going to and major social issues because each hold us responsible for it. This is just of our cities across this country has one of the billion dollar bites that different issues and responsibilities. MAYOR PHILIP OWEN: VANCOUVER gets laid onto the cities. It’s major The only way we will be able to For the City of Vancouver, the whole offloading, big time. release our creative potential in issue of refugee policy is of greatest In the last eight years we have had response to these issues is by being concern. In April of 2001, a report transfer payments from our provin- given the necessary resources and called “Response to Bill C11 – The cial government reduced by $75 mil- then being challenged with all those Immigration and Refugee Act” iden- lion a year. Our annual budget is responsibilities. I believe all the cities tified a couple of things we want the $550 million, so you figure it out. We represented here have a collective federal government to discuss with balance our budget and still have a potential to do some wonderful municipal governments, including triple A credit rating. We are very fis- things and to challenge all of the tra- the City of Vancouver. We suggested cally responsible and we like to be ditional structures and the institu- they add clauses to the bill recogniz- that way. We also feel that we have to tions that have been put in place. ing the key role that the City of be socially responsible. We’re putting It is important that we take this Vancouver and other municipal gov- more and more municipal money dialogue beyond this table into our ernments have to play in the area of into health care and social services. Where do we get our money? From The other cities are going to be with us as we go the property tax. If the provincial forward on this journey of changing the paradigm and and federal governments want us to pick up more services, fine, but they thinking differently about how we all – this country, must give us access to the revenue streams to pay for them. these provinces and the cities that we represent – work. One of our big concerns is crime Mayor Philip Owen and safety. We’ve been working on this for a couple of years, and have communities. It is important that we settlement, and that the federal gov- produced a document called “The as mayors accept the mantle of lead- ernment should reimburse municipal Framework for Action.” We went out ership that is required not just to dis- governments for services rendered to to the community and spoke with cuss these issues as politicians talking immigrants and refugees. some three thousand different citizens to other politicians or orders of gov- Another issue for Vancouver is at thirty-five meetings over six ernment. We must also create a dia- public transit. Washington D.C. last months. We had a huge response and logue in our communities so our citi- year dispensed $390 billion to U.S. got tremendous media coverage. zenry understands the complexity of cities for roads and transit improve- Although alcohol was identified as the issue. ment. We don’t get anything like the biggest problem, heroin and If we’ve got one problem, it is that, that out of Ottawa. cocaine are getting into our schools. in spite of increased responsibilities We have a plan, started forty years This is the same all across the country and diminishing resources, municipal ago, to replace the entire sewer sys- – it’s all around the world – but we politicians across this country have tem one percent a year. At present, decided we could no longer ignore it. continued to deliver good local gov- 98 percent of the sewage in the City It became clear to us that you ernment. We still have great cities. of Vancouver goes through primary couldn’t liberalize or incarcerate your We will not have great cities on an and secondary treatment. The region way out of the chemical dependency international scale if we don’t come spent $640 million in the mid-1990s of drugs but you have to do some- to grips with some of these issues. to upgrade a secondary sewage plant, thing. It’s a matter of public health That’s the challenge. one of the biggest capital projects in and public order. You have to sepa-

8 Volume 2 No. 1 THE URBAN CHALLENGE rate the dealer (or pusher) from the Montreal was the heart of Canada, tional organizations set up here. We user. If you start thinking of the drug the heart of the province of Quebec. are one hour away from New York. user as sick and the drug pusher as Montreal has also had periods of eco- French is spoken here, English is spo- evil, then you can start dealing with nomic decline, of social decline and ken here. 80 percent of Montrealers them. The City of Vancouver has of cultural decline. And I think that speak French; 60 percent speak both developed a four pillar approach to it’s important to you that I talk about French and English; 30 percent speak provide a comprehensive, complete the new Montreal, about the rebirth a third language and 10 percent speak continuum of care and the federal government has been very support- Running a city doesn’t only involve providing ive. They are listening to us. They are paying attention. local services; it means looking after people. The first Our British Columbia government place where people feel a sense of belonging is the city. is early in its mandate so now is a good time to get to them. The feder- Mayor Pierre Bourque al government is also in the beginning of its mandate, so it’s a good of Montreal, with the merger that is four languages. Montreal’s strength is time to get to them too. I think we about to take place. also its universities: 180,000 universi- On January 1, 2002, Montreal will have to move forward in a spirit of ty students. be a city with a population of 1.8 mil- collaboration, cooperation, and dia- The challenges Montreal is facing lion. Another interesting fact is that logue with our senior levels of gov- are the challenges all big cities have Montreal is still the second largest ernment. We don’t want to bring out to face, and what we’re really doing French-speaking city in the world. the heavy lumber and start swinging together, we five big-city mayors, is Greater Montreal has 3.4 million it quite yet because I think they are positioning ourselves. Cities are the people. paying attention. The prime minister heart of nations and what we’re real- I became mayor in 1994 when has just created an urban task force. I ly doing is trying to find solutions to Montreal was going through difficult think they want to work with us. We problems, consolidating the roles of times. People everywhere were talk- have got to take them a blueprint cities, of the big metropolises of the ing about how Montreal needed an which will get us out of this trend world, since that is where you find a overhaul. towards increasing responsibility and good part of the talent, the immi- Today, we are beginning to see the continued offloading to city govern- grants, the social problems, as well as results of the investments we made, ments with limited access to funds. I the culture, the effervescence, the of the work done with business, with think we’re going to turn the corner diversity. For the past seven years, the community, with changes to the during this conference. And we’re I’ve been trying to get money from economy. And now Montreal is not dealing out the other cities. governments, from the federal gov- closely following what is called a sus- We’re going to plant some seeds and ernment, from the provincial govern- tainable development policy. We saw the other cities are going to be with ment. periods of rapid development during us as we go forward on this journey of Montreal is still fragile. We face the 1960s, and now we are investing changing the paradigm and thinking human challenges. First, ensuring a lot in sustainable development. We differently about how we all – this social harmony. 42 percent of are placing a major emphasis on cul- country, these provinces and the Montrealers are of neither French ture, the environment, social harmo- cities that we represent – work in this nor British origin, 30 percent are ny, the cultural communities. We are great country. recent immigrants. We have to pay relying on the international charac- attention to the poverty issue, to the ter of Montreal. problems of aging and fragile neigh- We were talking earlier about bourhoods, which means ensuring hubs. Montreal is a link between that everyone enjoys the same quali- Europe and North America. We are ty of life as to housing and urban close to New York, close to Europe, environment. Montreal is working MAYOR PIERRE BOURQUE: MONTREAL close to London, close to Paris. hard to make certain those services We recently celebrated Montreal’s Montreal is an international city. It is are provided. 359th anniversary. The city has seen the third largest international con- Then there’s the complexity of some difficult times, and times of vention city, after New York and running cities since we have to deal great power as a city. For a long time, Washington. There are 75 interna- with everything. We have to deal

Volume 2 No. 1 9 THE URBAN CHALLENGE with crime and drugs; international available. And that is why we need life and an international character to development; housing and health; resources. We’ve had the same bud- this city, without adequate resources. economic development. get for seven years. From 1994 to We also need public transit since 2001, we haven’t increased taxes, what is killing us is all the air pollu- because, the more we increased taxes, tion, the cars. Montreal is an island, the more people left. Now we have and there is some talk right now the opportunity to better distribute about building two new bridges. We the wealth, to stop losing our citi- are against that. We want to keep the zens, because the exodus from the MAYOR MEL LASTMAN: TORONTO people on the island, to bring the core to the suburbs is dramatic. I’m Toronto is the most culturally diverse people back to the city. We have not speaking only for Montreal, but city in the world. We are a city of already lost 500,000 people to the for many cities in the United States, people who come from 170 different suburbs off the island. The challenge in Canada. This equation has to be countries and speak over 100 lan- we now face is to heighten the quali- changed. guages. And Toronto receives only ty of life in the city, to fix our infra- Running a city doesn’t only 4.8 percent of the total taxes collect- structures, be it parks, green spaces, involve providing local services; it ed from within the city. The rest goes bicycle paths, access to the river, also means looking after people, to the province and the federal gov- access to water, in short to maintain looking after integration. In our case, ernment. conditions that are favourable to this means helping immigrants learn We can’t even charge for services investment, right now, and especially French, helping them adapt, and we perform like restaurant health on the island, the core. dealing with social problems. It takes checks. The Toronto Star identified No city can flourish without a a great deal of effort because the first we had a problem in some food estab- strong central core. In the end, it’s place where people feel a sense of lishments and we did. We got it all the core that activates the rest. As you know, we still have a lot to do The provincial and the federal governments keep environmentally. All the soil in Montreal is contaminated. So, people taking our money, then they say, in a quote want to go elsewhere to invest. We from one of today’s papers, “we have to start living need to have policies to invest in soil decontamination. We also need to within our means.” What “means”? improve our environmental policies. Today, Montreal is a clean, Mayor Mel Lastman healthy, beautiful city, but it takes a lot of constant work. Our citizens, belonging is the city, the neighbour- cleaned up. We must constantly keep who come from all over the world, hood. So, that’s why we need to look checking those restaurants, but we need to adapt to this new reality. So for other sources of income. can’t even charge them for the ser- this also means giving them access to We have to find money to reno- vice. We can’t make a move without water, to quality of life, and creating vate our structures, our aging infra- the provincial government saying, in each of the neighbourhoods a feel- structures, and especially public tran- yes, it’s okay. ing of belonging, through environ- sit. Our national infrastructure pro- Toronto is probably the homeless mental projects to create a sense of gram is very weak: $1.5 billion for all capital of Canada. More than 30,000 community. of Canada. Montreal gets about $60 people are in our shelters each year To make sure we were looking after million but in fact we’d need ten including 6,000 children. One-third our young people, one thing we did times that amount. We are creating of these are children under four years was to set up committees for young 500 housing units per year. We old. Toronto receives one-third of people to deal with social problems. should be creating 1,000 to 1,500 per Canada’s immigrants who add so We targeted a few Montreal neigh- year, to meet the current needs. much to our city. They’re great. But bourhoods that were having the most It is time the Canadian govern- when they come into Canada why problems, and very interesting inter- ment invested in our infrastructures. doesn’t the federal government pay ventions were carried out. We can’t do it all at once. We can’t for it? Over a year ago, I sat down There is also a need for social keep taxes at the same level, while with the prime minister and he housing. Right now, the economy in bringing people back to Montreal, admitted it was his responsibility. I Montreal is doing well, so there is making the downtown area more mentioned it to him again a week ago really very little affordable housing densely populated, giving a cultural and he says he will look into it. Well,

10 Volume 2 No. 1 THE URBAN CHALLENGE they’re still looking and it costs us evil. Well let me tell you in Toronto If one of our cities starts to strug- $30 million a year to look after these our lack of money is the root of our gle, the entire country feels it. newcomers. We put them up in problems. We need to pump billions And yet, we don’t get any part of motels from Oshawa all the way out of dollars into our transit system over any tax except the property tax. I to Niagara Falls – over 100 miles the next decade if we’re going to keep found out we pay $70 million a year away. This should not be happening. the stock rolling and keep our subway in provincial sales tax alone and $43 It is a federal responsibility but they trains, buses, and streetcars safe. We million in GST. When times are won’t accept it. need hundreds of millions of dollars good, it doesn’t help Toronto. When Like Montreal, we are wrestling more to build affordable housing. It’s times are bad, it hurts Toronto. And with the tremendous costs of aging been promised. The provincial and times are great in Toronto. Businesses infrastructure. Like Winnipeg, we are the federal governments keep taking are thriving, but not the city because grappling with the homeless crisis. our money, then they say, in a quote we don’t get any part of anything. Like Vancouver, we are struggling with the burden of provincial down- For example, $4 billion in motor fuel taxes is going loading. But Vancouver, Winnipeg and Montreal have an advantage out of cities across Canada to the federal government, over Toronto. Each one of these and less than 3.5 percent of that money is reinvested cities already receives a share of provincial revenues. Manitoba allo- back in the cities that generated it in the first place. cates revenues from personal income Mayor Glen Murray tax to municipalities on a per capita basis. British Columbia shares its retail sales tax with municipalities. In from one of today’s papers, “we have We C5 cities all have very similar Ontario we get nothing. Not one to start living within our means.” problems. We’ve got to work togeth- penny. What ‘means’? er, we’ve got to do it now. There’s no This year alone the cost of provin- We’re spending so much money shortage of money in Ottawa. cial downloading to Toronto’s tax- looking after federal and provincial payers has reached $276 million. It’s responsibilities, we can’t afford to pay cost us almost a billion dollars since for our own responsibilities. We’ve they created the megacity almost four had to give up programs because the years ago. The chartered accountant legislation said we must look after firm of Ernst and Young predicts that things like over 95,000 subsidized figure of $276 million will rise to an houses. We are the largest landlord in average of $376 million a year; it will Canada of subsidized housing. MAYOR GLEN MURRAY: WINNIPEG peak at $472 million a year by the American cities went into a down- We share a number of challenges year 2009. Between now and 2010 load spiral when the U.S. govern- with these other hub cities. We have they say provincial downloading will ment made the same mistakes twenty an over reliance on property taxes. set Toronto taxpayers back $3.7 bil- years ago. These cities were pushed to When I became mayor, 63 percent of lion and that doesn’t include the cost the brink of bankruptcy before the our revenue came from property of federal downloading to our city. state and federal governments real- taxes. We were tied with Vancouver Our taxpayers are spending as I said, ized their mistakes and took steps to at that time as the most property tax $30 million a year on food, shelters, correct them. Now a lot of American dependent city in North America. and health care for refugee claimants cities are starting to boom because We had about the highest per capita that the federal government has the federal government put money debt of any city in the country and admitted into this country. We’re into them. some of the most unfixed streets. spending another $232 million a year As Canada’s leading city, we play a We have to operate under very on social housing that has been vital role in the economic well-being prescriptive legislation. If we want to downloaded onto the taxpayers by of our entire country. Canada relies change the way we fog for mosqui- the federal and provincial govern- on Vancouver for lumber and toes, if we want to move money from ments. What’s wrong with them? Winnipeg for grain. It relies on water and sewer renewals to residen- These guys are swimming in money Calgary for oil and Montreal for ship- tial renewals, if we want to change while we’re drowning in debt because ping, and it relies on Toronto for the size of council, we have to ask of downloading. money. Toronto’s GDP is greater than permission. They say money is the root of all eight of the ten provinces. Our transit costs used to be shared

Volume 2 No. 1 11 DEFINING THE PROBLEM equally by the province and the city; we need to survive. it was $15 million each. We now put This year the federal government $30 million in and the province still announced a $15 billion surplus and puts $15 million in. But we still need had money to pay down its debt. The the service – more services in fact. total budgets of the cities represented If there’s a lack of sympathy for in this room amount to just under mayors across the country about the two-thirds of that surplus. Now, let’s financial woes of the federal and imagine if the federal government, in provincial governments, this might the last five years, had had a 13.5 per- explain it: in this city alone in the cent decrease in revenues – as we next six years, $1 billion worth of have had: would they be reporting a infrastructure repair work is needed, Source: City of Phoenix surplus? What would our health care 2000-2001 General Purpose Funds: $1.07 Billion. Similar set of for which we have no money. The services but also includes municipal costs (5%) system look like? Would they not say urban economy is generating more there was a financial crisis? Right taxes but no one is reinvesting that about. Phoenix and Scottsdale are now Canadian cities have to compete money back into the cities. fighting over who’s going to build a head to head. We need to cooperate What keeps cities alive is their $1.5 billion (U.S.) megamall enter- and see each other as partners. If we parks, their culture, their green- tainment sports complex for which can come out of this meeting united, spaces. If you’ve been through down- the city is putting in $750 million. with a vision to position Canadian town Winnipeg, you know we’re des- How can they do that? Because 44 cities as the healthiest, the best, the perately crying out for a new urban percent of Phoenix’s revenue comes most competitive, and the strongest park. We have older neighbourhoods, from local sales tax. Even though on the continent, then we do every 80 block areas, with not a single tree they’re going to spend $750 billion, Canadian a great service whether beyond those planted in the boule- which is more than my total annual they live in a city or not. We have to vards. We’re spending $1 million – budget as a city, they’re going to get it support each other. 10 percent of what’s needed – to back in spades. Every year they’re going to be generating hundreds of enhance the livability of the city. Defining the Problem Now this isn’t putting new parks in or millions of dollars in revenue. adding new play equipment. This is If Phoenix held the Pan Am Taxation and access just replacing what’s currently in Games it would be a financial wind- to revenue sources place. We have to compete with fall for them. They would be reward- ROGER GIBBINS: Minneapolis and Phoenix which are ed. For us, as it stands now, regardless Taking control of our urban destiny not only maintaining, they’re mas- requires leadership and vision. I sively reinvesting and adding to their think the leadership is there but the inventory of streets, cultural assets vision is a problem. A connection and parks. has to be made for the broader public For example, $4 billion in motor between the cities and the national fuel taxes is going out of cities across ambitions and aspirations of Canada: Canada to the federal government, if the cities fail, the country fails. and less than 3.5 percent of that I am distressed by the damage the money is reinvested back in the cities U.N. has done to Canada by that one that generated it in the first place. report that said Canada is the best place in the world in which to live. It Can I raise property taxes? Not if I Source: City of Winnipeg want to be re-elected. Can I afford Estimated 2001 Budget: $0.75 Billion. Includes transit, feeds into our sense of complacency solid waste disposal and provincial capital grants. not to put more money into streets? which is clearly apparent when we No, because I won’t be back after the look at how Canadians view their next civic election if I don’t. What of whether this hotel is empty or full cities. We have a view of American do I do? I’ve got the tax-cut lever, the it’s only paying property taxes, so we cities that tends to be lodged in the tax-increase lever and that’s it. have no financial incentives to fill 1960s. We’re not aware of the rapid Look at what I’m competing with. the rooms. Cities have to be reward- change that has taken place there Our hockey team went to Phoenix. ed by the tax system for their success- during the past several decades. Right now we’re intending to build a es. If not, we’re just not going to There is a need for a more con- measly $125 million entertainment compete. We have nowhere near the frontational stance. We need to cre- complex which we’re very excited kind of revenue splitting or sharing ate a vision, one that resembles a

12 Volume 2 No. 1 DEFINING THE PROBLEM manifesto, however out-of-date that sibility for things that provincial or national standard – guidelines like format is in this new ideological federal governments are now doing, the Canada Health Act – with local environment. then those resources are shifted. It’s implementation. The applications The case has to be pitched at a not a matter of new taxes. You don’t and funding priorities that you would broader level than the property tax need to give the tax money to people apply would vary across the country and similar nuts and bolts arguments who aren’t doing the job. It’s not a based on the demographics. The pri- for urban reform that are being made money-grab; it’s a matter of shifting orities would change from city to city. within the room. The health of our things to meet responsibilities and to If you started asking who should cities is absolutely imperative to Canada’s ability to compete in an I’m a fiscal conservative and I believe in increasingly competitive world and if we can’t get that across, we’re never lower taxes absolutely, but we’ve created this going to find an audience for the kind mantra of tax cutting, and fostered a naive of taxation issues that are so central to cities. understanding of the complexity and the problem. Mayor Al Duerr COUNCILLOR GORDON PRICE: Here is the conundrum: every senior government – at least every success- put them where the opportunities for address those issues, you would prob- ful political party that forms a gov- doing it well and efficiently are the ably find the vast majority of the peo- ernment – now runs on the basis that greatest, closest to the people they’re ple around that table would recognize they will reduce taxes. serving. that local government is probably From the federal government’s Money is only a means to an end. best equipped to deal with most of point of view, it makes sense that The important ends are opportunities those things that have an impact on they would simply say, we’re reducing to do things better and more closely their quality of life. taxes. If the cities need more, they with the citizens who are affected. In the case of Alberta, I think we can put their hand back in the tax- Money makes general improvements need access to a much greater and payer’s pocket and take the money in the cities possible. more progressive form of revenue directly. From the point of view of generation than we now have. If you the taxpayer it would be equal. The MAYOR AL DUERR: look at American cities, a very very feds reduce, the cities increase. The I’m a fiscal conservative and I believe small portion of their taxation is gen- feds get the credit and the cities have in lower taxes absolutely, but we’ve erated through property tax. to be politically courageous to created this mantra of tax cutting, demonstrate to their electorate that and fostered a naive understanding of MAYOR PIERRE BOURQUE: they can handle that money to justi- the complexity and the problem. We cannot increase taxes; that’s just fy the tax increase. The federal gov- If we could get all the federal, not possible. The higher the taxes ernment is taking so much money out provincial, and local governments at are, the more people leave, the more of the economic engine of the cities the same table with the business people head for the suburbs, because that they’re killing that very goose. community, we could ask who should the suburbs attract people, just like The climate is absolutely clear. be doing what? Is there a role for gov- they do everywhere in North Business has done a great job, and the ernment in subsidized housing? Well, America, in Canada. media echo this every single day. if the private sector isn’t doing it, Cutting taxes is the norm; it is a then somebody has to. Is there a JANE JACOBS: political reality that has been proven place for some form of community The education – or miseducation, in numerous elections. It’s a set up: subsidy? Well, we don’t have the whichever you want to call it – of the the feds cut taxes so the cities have to philanthropy there is in other coun- electorate is that taxes should be low- raise them. tries, and we’re not going to build ered. But the electorate have that institution overnight so there’s received other messages that are very JANE JACOBS: probably a role for government to constructive. One of them is that Whenever I’ve talked to people play. Who’s going to fix the roads? It’s dependency is not to be cultivated; it about the C5, the first thing they ask probably going to be government. is debilitating, demoralizing, waste- is, what new taxes should cities have Sewage treatment? One way or ful, and not a good condition in gen- the power to enact? They don’t seem another you’re going to have govern- eral, whether it applies to people or to recognize that if cities take respon- ment involved. You can have a to institutions.

Volume 2 No. 1 13 DEFINING THE PROBLEM

If dependency is bad for everything cial governments. I think there’s sup- economies and have come back else, why the notion that it’s good for port for bringing tax expenditures because, for instance, in Mexico once cities? It isn’t. It absolutely isn’t. You and tax responsibility back closer to that particular labour supply is gone, can see how it infantilizes cities, the local community. they cannot find the talent. making them childish in many ways, There is an assumption that The point made on the cost of to the disgust of their own citizens. municipal tax rates are a critical fac- sprawl is extremely important but I Another message that has come tor in the kinds of locational deci- think it cuts two ways. On the one through to the general population is sions that firms and individuals hand, the costs of sprawl are absolutely huge. We estimated that Government taxes are 12.5 percent of the in the Greater Toronto Area, the waste of money due to provincial operating costs of the average business in the City of policies is costing a billion dollars a Winnipeg, of which the city gets .5 percent. year for the next twenty-five years. If spent on health and education, that In the downtown environment, property taxes are money would literally solve the fund- such an immediate and visible cost that ing crisis in both of those areas. We know that if we develop intel- they have become a huge disincentive. ligent policies around smart growth, Mayor Glen Murray the dollars are there. That’s the positive side. The negative side, though, is how we’re doing our planning. It’s that spending tax money inefficient- make. I’m not convinced that it is as difficult to empower politicians at ly is a waste. I think everybody decisive a factor as the urban envi- the local level because we are so understands this now. These antique, ronment in which firms locate. If the dependent on policies put in place by roundabout ways of getting public Winnipeg Free Press carried a full page senior levels of government. I think money to the cities are very ineffi- photograph showing members of the what we have in cities is the conver- cient and wasteful, just the way the local business community wearing gence of policies, creating problems dependency is wasteful. their backpacks at the Winnipeg for us over which we seem to have lit- For example, consider the attempts Airport saying, “I’ve fallen into my tle control. For example, in the City at equalization and economic devel- last pothole, I’m out of here,” maybe of Toronto, you have the cumulative opment that have come from above. that kind of argument would counter- impact of the federally funded social Think of the billions and billions of act the assumption that that same housing ending in 1993, provincial dollars that have been spent on the individual would leave if the tax rate funding ending in 1995, as well as the Atlantic provinces alone. One failure was modified in a very modest way. removal of all planning controls after another. The need to subsidize beginning in 1995, and the removal goes on and on. It would be much ANNE GOLDEN: of rent review without compensating better to see what could come out of On the specific issue of the role of mechanisms. It’s chaos. We cannot those stunted cities themselves. taxes and economic competitiveness, solve that problem without the co- within regions tax differentials mat- operation and support of all three ROGER GIBBINS: ter. According to research based on levels of government. We have to counteract a general interviews with eighty-five chief The sprawl issue demonstrates anti-taxation mood within the coun- executive officers who had made both our dependence on provincial try and make the argument that gov- moves to the Toronto area, the deci- policies and the fact that the money ernments do differ in terms of how sion of a business to locate in an out- is there. As Mayor Lastman said to they’ve profited from or how they’ve lying area relative to the downtown me, we simply have to take three or addressed taxation issues. core did involve property taxes. four of those income tax points. I agree with Jane Jacobs’ point that However, among cities with whom We need a way to link demand there is political support for redistrib- we’re competing in North America, with funding. For example, in ution of the tax load and tax revenue what matters more is everything Toronto we made the case to the fed- sources. In western Canadian cities, related to quality of life and specifi- eral government that the funding not it would not be a tough sell to argue cally the quality of the labour pool. simply be per capita, but that it be that greater tax responsibility should Many examples exist of companies linked to acknowledged need factors. rest more with the local government that started in a global economy to The formula is easy to develop. You than with the federal or even provin- do work outside in lower wage choose five indicators such as num-

14 Volume 2 No. 1 DEFINING THE PROBLEM bers of people living below the low the building and lease it back to them the mayors. We need to educate our income cut-off, numbers of seniors essentially. This is a very interesting chambers of commerce, many of and poverty numbers of single parent model because we couldn’t get pri- whom think that the most important families. To me, the most significant vate sector developers to take risks in thing is to eliminate the business tax. fact about Toronto right now is that the downtown environment. there are 44 neighbourhoods in the For the last ten years, we have had Responsibilities Greater Toronto Area where over 40 a provincial government that has MAYOR PHILIP OWEN: percent of the households are living massively subsidized sprawl. It was In British Columbia, cities provide in poverty; 43 of the 44 are located in giving rural municipalities on the fire service, police service, garbage the City of Toronto. periphery of Winnipeg all kinds of pickup, street sweeping and grass cut- advantages and paying for all kinds of ting, help with education, and deliv- MAYOR GLEN MURRAY: infrastructure with provincial tax er the social services of the senior Government taxes are 12.5 percent dollars against our objections. governments. If we’re going to be of the operating costs of the average As mayors of large cities we must responsible, we’ve got to get into the business in the City of Winnipeg, of be the driving forces for sustainabili- revenue streams. I think we’ve got a which the city gets .5 percent. In the ty and renewal of the centre and the lot of fog here on who’s responsible downtown environment, property urban fabric of our cities. What’s the for what. We have increased respon- taxes are such an immediate and vis- framework? What are we trying to sibility, and we’re forced to balance ible cost that they have become a do? I think we have an overwhelming our budgets as the transfer payments huge disincentive. continue to be cut. We’ve The only thing we got got to rethink and redefine through was the our roles. If you want us to be Heritage Tax Credit responsible then create a where you could write shared revenue process. For off 50 percent of your the good of this country and investment in a her- the health of the cities, itage building. This which are our economic gen- building – the Fort erators, we have to start Garry Hotel – has had clearly defining our roles. $2 million in grants That’s it. and tax write-offs for about $10 million pri- MAYOR AL DUERR: vate sector invest- Do we want these responsi- mentwhich this made bilities? Well, we live in the difference between these communities. When the building being government steps out of an Mayor Glen Murray and Winnipeg delegate Leonard Asper. redeveloped and issue such as housing, we being demolished. understanding of the problem and I experience the consequences direct- Property tax instruments can be think we all, if given the authority, ly: more people die on our streets or effective incentives to help cash flow would be able to fix our cities quite are left homeless or whatever. We and reduce actual reconstruction easily without any major tax increase. then have to assume responsibilities costs, but more is needed. We formed But it goes back to one problem: citi- and become victims for doing that. In a development corporation, Centre- zen engagement. Even within our my last municipal election, I was Venture, which loans money at the own city councils, how little time we attacked for the lack of affordable front end, so owners have cash in actually invest in our colleagues, housing in Calgary. Yet the provin- their pockets. Rather than paying angry suburban councillors who cial government sailed into power taxes, the owners are paying back think their communities are getting a with its highest majority ever, with a loans against the redevelopment of raw deal and their major job in civic $10 billion surplus, having done their buildings to the development politics is to get that big underpass nothing for public housing in corporation. built so people can get to the mall Calgary. No one asked them about We have a situation where a large faster. We have a huge amount of affordable housing. No one bothered outfitting store from Calgary is locat- work to do in engaging our own gov- to look up Section 92 in the ing a large store downtown, and the ernments and our own political Constitution Act and see who has city is the actual developer. We build machinery to get them on the side of the responsibility for it because it’s

Volume 2 No. 1 15 DEFINING THE PROBLEM now a given that affordable housing is have created an environment that I a disconnect. We’ve got to let the the responsibility of the city. don’t think we can afford. We have federal government know that we can There is an opportunity here to get financed sprawl on a spectacular scale offer them a presence locally. We can a consensus on how we should fund which has led to this high energy, deliver the services with sensitivity certain categories of responsibility. high consumption lifestyle that I and cost effectiveness and do it much better than they can but we need Something that worries me is that not enough new, their help and co-operation. We’re in vigorous cities are emerging. Too many Canadian cities this together for the good of the country. remain forever in adolescence. It’s not good and it’s MAYOR AL DUERR: going to make terrible trouble if these things aren’t We have to find a way to allow our corrected. You can’t say it’s anybody’s fault exactly, it’s provincial and federal government caucuses to create a permissive envi- history’s fault. If there’s any fault among us ronment rather than the kind of contemporaries, it’s not looking history and change in paternalistic environment that has traditionally dominated federal, the face, and thinking what must be done now. provincial, and municipal relation- Jane Jacobs ships. I have a premier who is a former mayor of Calgary. If you think How should transportation be fund- think is one of the reasons why it is so that has meant anything whatsoever ed? I can tell you right now there’s a politically popular to cut taxes. We’ve for Calgary, I can tell you it has been compelling case to use provincial, come up against the limits of that and quite the opposite. Former city coun- federal, and municipal fuel taxes – therefore something’s had to give. cillors who are now members of the direct user pay – to fund transporta- Two things have happened simul- provincial legislature live in fear tion. The same case could be made for taneously: the decay of infrastructure because every time they have a cau- public housing and welfare related in the inner city and the rolling in of cus meeting, they can’t mention issues; you would have to match a the social problems. Hello, Toronto. Calgary: there is this incredible dis- revenue source to a responsibility We’re now seeing a little bit of this in trust from the rural-dominated cau- with a tacit acknowledgement that if Vancouver but not as much as else- cus. that responsibility is downloaded or where. There’s a danger in trying to transferred or accepted, the funding get access to taxes to finance this MAYOR GLEN MURRAY: will go with it. I think that’s a real waste and I think this high consump- There’s a sense of sophistication and idea we could sell across the country. tion, high energy lifestyle dependent diversity in cities that is not shared by upon sprawl is staggeringly wasteful. provincial governments. Our provin- COUNCILLOR GORDON PRICE: I think each of the cities has differ- cial governments tend to be less cos- Municipal government has been so ent priorities and needs. We don’t mopolitan, more rural, and more good at delivering high quality infra- want to get caught into a one-size- parochial. For many parts of the structure that it has financed an fits-all scenario. I certainly don’t country which are dominated by rural extraordinarily high quality of life. want to be put in a position where my politics, it’s very hard for us to have a We don’t get enough credit for this. obligation is to continue to finance constructive relationship. In the post war period we have been what I think is an unrealistic way of providing low cost water. It’s so cheap life; I want to try and do things so MAYOR AL DUERR: in Vancouver, we don’t even metre it. that we continue to have economic It took us a good year to negotiate We have built an infrastructure prosperity that’s sustainable. that fuel tax revenue for Calgary and dependent upon low cost energy; we Edmonton. In a meeting with smaller may not take credit for that but we Dealing with other levels communities in southern Alberta I certainly have built our lifestyle of government was challenged by the mayor of around it. We have delivered low cost MAYOR PHILIP OWEN: Crowsnest, a community of 2,000, land. The sense of entitlement that We have to recognize that we’re not who said, “you sure can tell where the people have now for this good life is trying to get rid the federal and premier comes from because Calgary absolutely extraordinary. The stan- provincial governments. They’re and Edmonton got this fuel tax rev- dards are so high and we have been so there, we’re here, they’ve got their enue. Why don’t we get five cents a good at doing it for so long that we job and we’ve got our job, but there’s litre?” I had to point out to him that

16 Volume 2 No. 1 DEFINING THE PROBLEM he wouldn’t want it because, bottom ten how to accommodate different ates 10,000 jobs. And now, we are line, he gets a lot more than five needs, and foster innovation and setting up a centre for the electronics cents a litre. excellence. industry and, along with the federal We’ve had some discussions government, we fostered biotech recently in the Calgary region. Our The need for a strategy industries and the aerospace industry. provincial government in their wis- MAYOR PIERRE BOURQUE: We encouraged people to come dom decided to abolish regional Montreal was once unbelievably back to the city with construction, planning. Now we are working on an prosperous in Canada, in North housing. We targeted the most needy entirely voluntary cooperative basis America, and then went through a neighbourhoods, neighbourhoods with a number of regional models. tremendous decline, that was caught with problems of poverty, integra- There are little communities around up in the province of Quebec’s inter- tion, and immigration. Calgary where they’re facing 8 to 10 nal problems, which are not the same So, while the action we have taken percent growth rates and they’re as elsewhere. Montreal went through is still precarious, the City of wondering why Calgary gets so much. a time of very strained relations with Montreal of today is not the same as I’ve had to ask, in a very nice way, the provincial government. it was five years ago and what was why are they experiencing 8 to 10 percent growth rates and other com- We’re not here to talk about constitutions. munities 200 miles away from Calgary are losing population? Do We’re here to talk about the future of our cities, they understand that a successful the future of Canada’s cities, the future of Montreal. Calgary means they’re successful? And if Calgary is not successful, Mayor Pierre Bourque they’re not? In Alberta, we were able to make The government of Quebec once called “The Decline of a real breakthrough by getting the became somewhat like a corporation Montreal” is over. province to agree to a different fund- that wanted to take all of Montreal’s Now we have to catch our breath. ing model for Calgary and powers and transfer them to the It takes time to keep on strengthen- Edmonton for transportation. We province. The emergence of Quebec ing the new economy, the openness, need to create that kind of environ- French-Canadian nationalism gave the social harmony, public transit, ment which allows us to consider rise to a very strong central power in the infrastructures. new options with our federal and Quebec City. Out of a $50 billion Now, the balance between the provincial governments. They need budget, Montreal had a budget of province and Montreal is coming to have the permission to be treated only $2 billion. back. And there’s a balance between a little different. And so Montreal slid into decline, Montreal and the federal govern- We need autonomy that speaks to 300,000 or 400,000 of our more well- ment, because we also have interest- allowing Glen to have access to cer- off citizens left for Toronto, and for ing ties to Ottawa. We have to be tain revenue sources and Pierre to other Canadian cities too. careful not to create any antagonisms have access to certain revenue But we hung in there. We got the between the two. sources, according to decisions made economy back on track; we focused a So today, the city is doing much in their respective communities. lot on the downtown area. We final- better, especially now that we are This would allow each community ly allied ourselves with the province, going through the greatest municipal because there is no future without to create opportunities that are reforms in the entire history of the provincial government. We also unique to it, and reflect and respond Quebec. And not only will Montreal tried to create ties with the Quebec to its business climate, the social cul- get stronger, there’ll be a better dis- government that had never existed tural climate and whatever other tribution of wealth among us, before. needs it has. because before, Montreal was com- We created ties with other cities in We don’t need another one-size- peting with Saint-Laurent, with the the province – Quebec City, the City fits-all national housing program giv- western part of Montreal Island. of Sherbrooke – that make up the ing every community exactly the Now, we will try to unite the island. heart of urban life in the province. same access to the resources whether And now, we have enough of a bal- We tried making economic agree- they need them or not. We’ve ance to represent the whole of ments. We revitalized Old Montreal, become so preoccupied with treating Quebec within Canada, and that, the downtown area; we created the everyone the same, that we’ve forgot- too, is a challenge. And that is why multimedia centre that now gener- the five of us here need to work

Volume 2 No. 1 17 DEFINING THE PROBLEM together, get to know each other. MAYOR GLEN MURRAY: would it look like? It seems to me it We’re not here to talk about consti- There is an incredible complacency would have three parts: first, it would tutions. We’re here to talk about the even though in the last ten years at have an educational input; you’d future of our cities, the future of the Organization for Economic have to sell it to the people. Second, Canada’s cities, the future of Cooperation and Development, it would have a lobbying input; you Montreal. we’ve slipped from fifth to fifteenth would have to sell it to senior gov- most productive nation in the world. ernments. Third, it would have a ANNE GOLDEN: That’s due to a decline in the skill cooperative input; people around this There’s so much evidence, why isn’t level of our workforce and the rapid table and others would have to get it resonating with the public? The deterioration of the conditions in together and agree on a strategy for consequences of fiscal instability, infrastructure within and between change. that cities at present are not sustain- cities. able, that’s the kind of scenario that At the same time there is a new ELYSE ALLAN: we’re looking at where hundreds of type of neo-conservatism that comes The business community understands millions of dollars of debt growing to with anti-urbanism. You beat up on the need to ensure that we’re invest- billions of dollars of debt over a the cities, because that’s where the ing in our cities; cities and city decade, clearly is not sustainable. big spending is. What do we do? We regions have become the economic The need for more secure sources of cannot talk about solutions until we drivers of nations. They are the funding relative to responsibilities is can clearly make our case that there’s major generators of national wealth. crystal clear to us, but why not to a problem. This is not just a Canada story – others? it’s around the world. In fact, it’s To me there are three reasons why NICHOLAS HIRST: much further ahead in other places it’s not resonating: The first has to do Can we create a strategy? Can the than it is perhaps here. with the complexity of the issue for mayors create a framework? What Our Board of Trade developed five the average person. It’s a constitutional issue and for the average person it’s just too much. The second URBAN COMPETITIVENESS thing I think, is that the debate is not Statement of Principles Prepared by only about money, it’s also about The Toronto Board of Trade power. In the private discussions I had at all levels of government when The Toronto Board of Trade believes an agenda on urban competitiveness must be I was looking at homelessness, I found founded on five basic principles: the problem was not about money as much as it was about power. Thirdly, 1. Canada’s major urban regions must be competitive on a global stage. It is no longer appropriate to simply concentrate on the competitiveness of cities within Canada or even I think it’s about values; it is compli- just North America. Our cities compete with more than 300 city regions world-wide – cated because the consequences of their challenges must be addressed in this context. underfunding have to do with social justice. We’re into an era when com- 2. All levels of government in Canada bear responsibility for ensuring our cities are livable, passion is out. The paradigm has functional, enlightened and commercially viable. Investments must be targeted at urban pri- changed. This has to do with our orities and must be coordinated and integrated across government jurisdictions. capacity as cities to fulfill our destiny 3. Cities must be given the ability to take greater control of their destinies. Regulatory and to meet the needs of those who impediments, jurisdictional disputes and financial limitations place a significant strain on reasonably expect us to do so. local abilities to deal with local challenges. Cities in Canada must be given the tools to Objective fact-based research is “grow up” in order to compete with other mature cities on the global scene. critical, in conjunction with a broader strategy. To me the fundamental 4. Attitudes, policies, governance structures and priorities must change to reflect the real- question is, can we create a strategy ity that Canada is no longer a rural economy – it is an urban economy. Eighty percent of to address what I hear as a kind of the population now lives in an urban area. Our GDP is driven by urban economies. violent consensus about what the 5. Maintaining a high quality of life in our cities is critical to the continued economic growth real issues for cities are? We have a and social survivability of Canada. Offering citizens a safe, attractive, diverse and affordable job to do: cities are the future; we’re urban environment is paramount to competitiveness. More than ever before, quality of life in a new era for cities and we need drives the success of a region – it can either attract or dissuade people, businesses and sustainable and reliable source of rev- investment to our cities. enue to fulfill that.

18 Volume 2 No. 1 DEFINING THE PROBLEM basic principles with which I expect finance some of the needs that cities Four provinces have provincial pub- you too can all agree. [See box on have. That can be done in ways other lic insurance systems. The solution page 18.] for funding infrastructure is DALE STANWAY: not the same in This is not only a Toronto and challenge for gov- Winnipeg. The ernment workers needs are the and political lead- same. There’s ers; the business not going to be community also one solution to needs to come to cracking open a terms with these share of the things to ensure wealth. I think their environment constitutional remains competi- recognition of tive. cities is desir- able, but I also ELYSE ALLAN: think it’s a non- I don’t think busi- starter. If that ness would ever say became the sin- it shouldn’t be gle pursuit of taxed. I think the Mayor Philip Owen and Vancouver delegate Ivan Head. this group, I problem we had as think we’d spend a nation over the past five years is than taxation with much more open- a lot of time and effort and we’d be that when you looked at us on a glob- ness to public and private sector part- back here a decade from now without al basis, we weren’t in the game. nering. We’re far behind as a nation progress. Nobody is saying we have to be the in terms of public/private sector part- I think the C5 needs to be main- lowest tax environment. I think we nerships. American cities have great tained, not instead of the Federation have to be in the running in terms of government support, but they also of Canadian Municipalities (FCM), taxation levels, at least be in the ball- have a number of vehicles for very but simply to focus. The FCM mem- park. Nobody is saying make us num- strong private sector participation. bership is 5,000 governments, rang- ber one in terms of taxes, because if We can’t assume government can ing from those serving populations of you do that and you screw up every- afford to do everything cities need 2,000 people to those serving a city thing else, we’re still not going to done. the size of Toronto. It’s exactly the win. I think there is a very clear same as CUPE gathering together recognition that there is a cost to PAUL MOIST: 900 municipal locals: the Town of doing business anywhere. But let’s I think we need to focus. We could Killarney has two members and make sure that there’s a return from easily come up with 300 Canadians Toronto has 35,000 members and two what we are paying, and that return is who have a connection to but don’t locals. We can’t sit in the same room being focussed and understood. work in municipal government right and have the same discussion. I don’t The other comment that I would now. Our senior levels of government think it’s either/or but I think the make is that when you look at all the are full of former municipal politi- focus that the C5 can bring to these wants that all the cities have, there is cians who have moved onto other discussions needs to be maintained. no way any of our governments can things and who need to be re- afford to provide them. Cities need to engaged. I think we need to spread MAYOR GLEN MURRAY: take advantage of the capital market. the lobby out. CUPE should be part Winnipeg has survived because it has Here we are in the richest economy of this lobby. By my calculation, the most diversified economy in that we’ve ever had and there’s a there are 53,000 CUPE members Canada and it most mirrors the tremendous amount of capital in the within these five cities with a com- Canadian economy. But we should be private sector. We need to challenge bined payroll of about $2 billion. a city of two million people. The our governments to engage the pri- While we have common interests, great failure of the Canadian confed- vate sector far more aggressively in there are different solutions for the eration is the fact that there’s no bringing their capital to the table to roads and streets and infrastructure. major city in the middle half of this

Volume 2 No. 1 19 NEXT STEPS country. We are an undersized city for did, if Mayor Lastman had all of family with an unreasonable father the value of resources, agriculture, those things, Toronto would be and children trying to think how to mining, electricity. Despite our eco- rolling in dough. If you had a cut of maintain good relationships with nomic potential, we are still too the gasoline tax, and you had the him and never thinking how the totally dependent on primary indus- income tax and you had Mayor father could maintain good relation- tries. What we could find ourselves Bourque’s registration fee, you would- ships with them, which is the real with is a disintegration of this entire n’t have a financial problem right root of the trouble. country and the aspirations of now. All I’m saying is, please have self- esteem. Please always remember how I think you have an ingrained mindset of important your cities are. How the senior governments are directly dependency and that this is going to be the hardest dependent on the cities. You must thing for you to overcome. . . . You must somehow somehow gather the self-esteem not to be apologetic about yourselves. gather the self-esteem not to be apologetic Certainly the country needs to be about yourselves. educated about how important the cities are. But if the cities themselves Jane Jacobs don’t believe it or are apologetic about it, or are afraid to bring it up, Quebec in a very real way along with We know these things can be even aggressively, the education of that because we’ve become depen- done, there’s precedence for them. the country and the understanding of dent on American hubs. Maybe the recipe is already there. what really is necessary and what ails There’s a sense that Winnipeg has Maybe each of us has a piece of the us, is never going to come about. It capacity, that we’re more competitive solution and what we need to do is begins with you people. because we are one of the few cities support each other to get all of the that can operate call centres and ingredients. I think maybe if we NEXT STEPS access centres in both languages. We could do that, there would be a net have enough critical mass of fran- benefit for all of the other mayors in Support for strengthening cophones that we do that. the country. I think we have the hub cities We need a critical mass. The political critical mass to get change MAYOR GLEN MURRAY: stature and the prestige of the mayors and we’re small enough as a group to We mayors have this great advantage of the two largest cities of the coun- actually be able to come to a consen- of being elected directly by many try, and Montreal as the largest sus that the FCM is too large and too millions of people across this country. Francophone city outside of France, diverse a group to do. How can we use our offices more per- is extremely important. We’ve had a suasively? We must create a common failure as mayors to work together as JANE JACOBS: understanding among us and then a team. I’ve been interested in hearing as you lobby to get that message out there. I The blueprint idea that Mayor talk how often the relationship think we are our own worst mar- Duerr has talked about I think is very between cities and the senior govern- keters. We have become very astute important. What if we sort of assem- ments is referred to. Every single time at being apologists. bled this idea of revenues and respon- I’ve heard this relationship men- sibilities and said, well you know, tioned it has been in these terms: DALE STANWAY: cities cannot realistically pay for The cities must maintain good rela- I am hearing a lot of talk about diplo- these. Look at the balance of tions with federal government. Or macy on the one hand and a revolu- accounts. We can’t fix streets, we the cities must maintain good relation on the other. During the civil don’t have the money. So someone tions with their provinces. It never is rights movement, many people said, has to do it. Where is the money that the provinces must maintain “I’ll continue to ride at the back of coming from? We all have the solu- good relations with cities. Nobody the bus.” It wasn’t until somebody tion. Montreal has a registration fee says that. I think you have an stepped out of that comfort zone and for vehicles that generates $30-40 ingrained mindset of dependency and said, “it’s not okay,” that something million for that city. Calgary gets $90 that this is going to be the hardest was done. million in gasoline tax. We get an thing for you to overcome. I see so What if we took our struggle onto income tax and corporate tax points. many subliminal signs of that today. the international stage? Wouldn’t it If every city had what the other cities If this were a novel, it would be like a be wonderful if our next meeting was

20 Volume 2 No. 1 NEXT STEPS in London, England, because it has a takes to compete in the long term. ence, my suggestion would be to city charter? Imagine the interna- We should engage those groups on direct senior civic administrators tional press! We couldn’t get the this issue. from the five cities and the appropri- attention of our provinces, we could- ate stakeholders to become the infra- n’t get the attention of our Canadian ELYSE ALLAN: structure that keeps the C5 viable. government, so we’ve come to I think you’ll find that business is One partnering opportunity we London, England to discuss and find very much on side. The issue of the have is with the pools of capital that out how your city charter works. competitiveness of our urban centres we collectively create with each Housing? It would be a high stakes game, but what if tomorrow morning we said the heck with it. We’re get- I think that we’re very much dependent upon each ting out of housing. It would be a other and to have a “have” city and a “have-not” city front page story: we tried our best, it’s inadequate, it belongs with the feds is not good. If Calgary is booming and Winnipeg and the provinces – let them fix it. isn’t, it’s bad for all of us. Urban centres must all be What about doing what the American cities were forced to do: healthy, and we all have our own particular needs. take ourselves into bankruptcy? Mayor Philip Owen Mayor Lastman, in your city you worked very hard to cover a gap of $380 million. Imagine if you hadn’t. is very high on the agenda of our other: our pension pools of capital. What if Toronto did go bankrupt and business people. We at the Toronto By the end of 2003 the pension pools laid that problem at the foot of the Board of Trade took the opportunity of North America will be larger than province? to go with Vancouver and Montreal the assets of all the chartered banks. to Ottawa on a combined mission. It If there were a working group MAYOR MEL LASTMAN: was incredibly powerful when the assigned by the mayors to articulate Both those thoughts crossed my three cities brought business leaders. what to do, it should include examin- mind: not closing the gap, and either We had two solid days of meetings. ing what these five cities have in going under or coming up with a 32 Everyone was really listening. The terms of pension capital. For percent tax increase. But who would Minister has come back to us five instance, the Winnipeg plan is fully suffer? It would be the people on times since then for private meetings funded; it’s got almost a billion dol- fixed incomes, the senior citizens and with our CEO groups and the Board. lars in assets right now, and we’re so on. We focussed on the whole issue of moving to joint trusteeship. That what they could do federally in the means something for us as employees DALE STANWAY: area of urban competitiveness. We but it also means something for the What about engaging business? I’m talked about creative financing solu- city as an employer. What does it not comfortable when I see the com- tions. mean for the C5 community? I think petitiveness of my American and I think certainly from the Board of it means a lot if we’re prepared to European colleagues. When I look at Trade’s perspective we’d be more work with each other. what Dallas has done. I see it was than pleased to try and continue that We have a huge opportunity with business people who rolled up their course of action. We’d be pleased to the amount we have invested in our- sleeves and said, “Dallas isn’t doing try and take the lead across the selves for the lifelong wages of our very well; let’s do something about Chamber and Board of Trade com- employees that could help the local it.” If it worked there, why not here? munities. community. People listen when you’re a player in the economy and MAYOR AL DUERR: ANNE GOLDEN: our pension pools are going to make We’re talking about issues of compet- The notion of perhaps working us significant economic players. itiveness and sustainability, which together among the major United the Toronto Board of Trade under- Ways is an interesting one as well. I ELYSE ALLAN: stands. Where are our national busi- would undertake to see whether or We need the proper vehicles to facil- ness organizations on these issues? not there’s something we could do. itate the investment of other revenue We hear them say “Reduce taxes” but sources. Take infrastructure financ- we haven’t yet heard an articulate PAUL MOIST: ing. Pension funds around the world discussion from them about what it If the C5 is a go beyond this confer- are becoming very involved in

Volume 2 No. 1 21 NEXT STEPS financing infrastructure projects. The the federal government about the been in relative decline, what you challenge in Toronto is that we have marijuana issue asking, “What is the find is the absence of the idea that neither the structures, nor the government doing and why are we so you can create wealth there. People authority to create the structures, addicted to cocaine and heroin in our move to a place if they think they’ll that allow for these public/private cities and our country?” The minister have an opportunity there. That sector partnerships. There are other got up and referred to the opportunity existed in Winnipeg, for sources of capital than government “Framework for Action” produced by example, in 1910 and it didn’t matter money. I think we need to encourage the City of Vancouver, which the two hoots that it was cold and there a creative approach to funding what federal government thinks is a blue- were mosquitoes in the summer: peo- needs to be done. print for a national drug strategy and ple still came because there was this massive opportunity to create wealth. My advice is to think out of the box, not in old How do you give the message that wealth creation is possible here? ingrained ways of accepting the existing foolish We’re arguing that that is controlled, antique dependency that was built in the days when in part, by the kind of powers that cities have. What is also clear is that most Canadians lived in hamlets and villages. a city needs to have things (and they Everything has changed. Those basic arrangements can be very different) that are special to that city itself. There are things assumed that municipalities were country bumpkin that cities can do, that they can take villages and needed to be under the constant guid- control of, that aren’t necessarily put on them by the province. This may ance, supervision and management by the provinces. mean competitive ways of raising rev- There’s wonderful human capital in our cities. enue. Jane Jacobs Taking Responsibility JANE JACOBS: JUDY BADER: policy. In my view, that’s an example I would like to dispute one widely The other side of the coin is to talk of a really good success. I think we held belief: that assisted housing is about community development and need to have more coordination, co- not a municipal responsibility. Well, the really critical role that municipal operation, dialogue and partnerships Toronto itself refutes that. Assisted governments can play. I don’t think with the two levels of government. housing always used to be done by any other authority or level of gov- the federal government under the ernment has the capacity to take the NICK HIRST: regulations of the Central Mortgage bits and pieces of an issue, put them Let’s talk about the message to the and Housing Corporation. They were together and then bring the issue for- public. I don’t think cities are all the called “projects,” and they’re still giv- ward for public consideration and same. They are going to and should ing us trouble. These projects were consultation. It’s a really important be encouraged to compete against bad in every way; they had a social role, one of advocacy. Part of this is each other. The more that Winnipeg curse on them and became a sort of about forming partnerships with looks at Calgary, Calgary looks at warehousing for people of different other local authorities; for example, Winnipeg and Calgary looks at incomes. city governments have many issues in Vancouver and we all look at In 1972, Mayor Crombie got the common with health authorities, Toronto, the better. It’s a good thing responsibility for assisted housing and education authorities and child wel- to compete for immigrants, to com- whisked it from the province. He had fare authorities, all of whom have pete for the kind of people who we a wonderful red tape genius – his elected as well as appointed members want to move to our city, to compete housing commissioner – and the two and could be the partners of whatev- for the kind of quality of life one of them managed to completely er strategy you undertake. needs to attract and retain people. reform assisted housing. It’s invisible These things don’t need to be the in the city now. The social curse was MAYOR PHILIP OWEN: same. removed. People wanted to stay in That’s what I think we’ve done in It seems to me that what makes a assisted housing, even though, as Vancouver. Two days ago in the city competitive is the idea that you their incomes rose, they could be House of Commons a member of the can create wealth there. If you look charged up to market rates. Assisted Alliance got up and was going after at a city like Winnipeg, which has housing became a sustainable self-

22 Volume 2 No. 1 NEXT STEPS financing arrangement. about it, and he persuaded people. That doesn’t necessarily imply con- I used to have people coming from Nobody laid down in front of the frontation. I think it requires a Europe and the U.S. to see our model bulldozers. By the time the housing change in attitude so we stop being of assisted housing. They thought it started, there were no more protests apologists, we accept those responsi- was wonderful and bilities and we learned from it. I’m say, all we need distressed at the is to release the notion that assisted creative poten- housing should not tial that’s avail- be an urban respon- able within our sibility. It’s exactly cities by giving where the responsi- us autonomous bility belongs and sources of rev- it’s exactly the enue, access to point that when ways of funding cities have these and yes, let us responsibilities and compete. Let us the resources to create models. meet them, they Let us creatively can do things in steal from one new and better Press conference concluding the meeting of the C5, broadcast live on CBC Newsworld. another. When ways. This not only Toronto has a applies to assisted housing, it applies or objections. It fit into the neigh- good idea, let’s take it and try to to all kinds of things. bourhood. It even varied on the dif- make it a little bit better. Maybe I remember very well when some ferent blocks depending on what the there’s another mayor with another of this new assisted housing was local architecture was like. You premier who is going to find a better going in down at the end of my street would never have achieved this way of doing something. That’s good, and people around the area objected, under either a provincial or a federal that’s very positive. saying, not in my backyard. They program. It’s an example of how this I am absolutely tired of the classic kept trying to get me to enter the is not just a question of money, it’s a let’s get together and then at the end fight to oppose this housing. I kept question of opportunity and of of the day stand up and bash the fed- trying to tell them look, this is differ- improving things, and making some eral government. We have to find ent, this is knitting up a hole. The progress in life. new ways of enabling. How do we only one who seemed to understand help our provincial representatives was a little boy. When a fuss was MAYOR AL DUERR: deal with this? made over a miserable little green- The concept of embracing a responsi- It’s a delicate balance between space that was going to be lost, I bility that others are ducking has to asserting the role that we should be asked James, who lived a couple of be fundamental. There is tremendous playing as cities and creating a model houses from it, are you going to miss possibility in our communities. of possibility, one that helps others it, if this park is gone? He looked at There’s a tremendous reservoir of cre- work through their problems. We me and said, “You mean dog doo ativity. Jane spoke to the work that have largely rural-dominated caucus- park?” That’s about what that green- was done in Toronto on social houses – both provincially and federally. space amounted to. ing. I remember reading the reports – We need to communicate what we’ve The day the excavation was to it was leading edge work in the world. been talking about here today, that begin, the mayor came down to that It was being done in Toronto because it’s not a zero sum game, that gains dog doo park where an angry crowd that city was faced with a challenge for one city are not at the expense of was threatening to halt the construc- and it just let the creative juices flow. another city. We have to make that tion. He gave a talk to them about It was an enabling environment – the same argument with the rest of the how badly many people needed hous- funding was there. It was a question country. ing, how every neighbourhood need- of saying, how can we do this more ed to get some of it in their small effectively? MAYOR GLEN MURRAY: empty spaces and that this would The rules have changed and the It’s strange that it has taken over a help the neighbourhood. He believed funding has largely evaporated but century after confederation for the it himself. He was very eloquent the creative potential is still there. mayors of the large hub cities to get

Volume 2 No. 1 23 NEXT STEPS together and engage each other in potential that has emerged from Seeking a New Deal achieving a common understanding these discussions. Now we must focus MAYOR GLEN MURRAY: and to start to build a partnership. If on what the solutions are and how we As much as the agricultural commu- Canada supports its cities by rein- unleash the potential of cities to cre- nities and small towns are an impor- vesting in them and allowing them to ate and sustain the competitive tant part of our country, the engines keep a reasonable share of the wealth advantage of this country. I think this of renewal and hope are our urban they generate, it has the potential to has probably been one of the most economies. Our ability to maintain be one of the leading trading trans- valuable intergovernmental exercises our national health care system, for portation and cultural centres in the I have participated in during my instance, is based on the health of world. But that cannot be accom- twelve years as mayor and eighteen those urban economies. This is the plished without a new partnership years as a member of council. very beginning of what will be a long between cities, provinces and the process. Hopefully cities will federal government. We now become real partners with as mayors have agreed to the provincial governments pool the resources of our and the federal government in five cities to develop and a national dialogue about build a strategy together where this country goes and in partnership with com- how we grow it to protect and munity leaders, business enhance the quality of life for leaders, labour leaders all Canadians. and others. Each of us has had huge suc- cesses in partnerships with our MAYOR PHILIP OWEN: provincial and national govern- As cities we feel discon- ments and our communities. nected from the senior We need to learn from those. levels of government, and We’re going to compile those yet we’re very dependent best practices and compose a upon them. If we’re going Mayor Glen Murray. well researched paper on this to take on more and more and develop a series of propos- responsibility, we have to be able to MAYOR PIERRE BOURQUE: als. When we meet in Vancouver in manage our own affairs. Montreal is a very old city, 359 years January, we’ll be taking this to the We acknowledge and recognize the old. We have experienced a lot of dif- next step. work of the Big City Mayors of the ferent important moments in our era. Federation of Canadian Municipal- Many researchers are looking now for MAYOR PIERRE BOURQUE: ities in this area. But we have specif- the power of the city. The city is the So, to maintain development in ic issues, and as we come up with future of the nation and I’m proud as Montreal, we need to have good rela- solutions it will be good for all the the mayor of Montreal to be here to tions with both governments. We’ve cities of Canada. experience this. We have a vision in got no choice. Thus far, it has been We need a reassignment and rede- Montreal but we need to share the working. We lobbied, we provided ployment of the revenue that’s now vision. We all have problems facing information, we worked very hard. coming out of the Canadian citizens. us like public transport, old infra- It’s starting to pay off. I don’t look upon it as a whole bunch structure, immigration, social prob- of new money. I think we can do lems, and other social issues, and we MAYOR AL DUERR: things smarter. We can do things dif- need to share our solutions together. Responsibilities have historically ferently and we can reassign our pri- We need a kind of new deal, a new been allocated in this country in a orities. These problems are going to covenant with governments, provin- very paternalistic way with a very continue to get worse unless we think cial and federal, for better infrastruc- centralized form of control. What differently, think outside the box and tures in our cities, to revitalize our we’re seeing now is an appropriate have a new approach of collabora- downtown areas. This truly is a new evolution of responsibilities devolv- tion, dialogue, and cooperation. contract, a new partnership, between ing more to the local level. What we equals. have not seen is that same kind of MAYOR AL DUERR: evolution of autonomy in funding. I have been both heartened and That’s what we need to work on. We moved by the possibility and the

24 Volume 2 No. 1 NEXT STEPS don’t have a collective agreement We need a larger, more qualified lems. All of us are overly dependent across this country as to how we work force. That’s where the cultural on property taxes. All of us have to should best generate revenues and life is, centres of culture, the knowl- compete in a more globalized econo- then how we should allocate those edge, the new economy. That’s where my. All the things the Board of Trade revenue-generating measures to most of the wealth is generated, and outlines I think are true for every sin- responsibility. For example, deciding so, of course, where a number of gle city in this room. They may man- to allocate a user fee, such as a gaso- things will be shared. Increasingly, ifest themselves in different ways, but line tax, to fund transportation. cities will have to meet the needs of the fundamental underpinnings of Further, how should we fund public the population. We need more immi- the challenges are very, very similar. housing? Social services? Many peo- gration. Ninety percent of the I want to go back to what Mayor ple would argue those are probably province’s immigrants come to Lastman was saying. If we can’t win, more appropriately funded through Montreal, but we need more. I asked if even Toronto can’t win, maybe it’s some form of income redistribution that it be increased to 50,000 per time that we take a look at why. We like an income tax, rather than a property tax. Across the country we Our cities are the significant economic generators don’t have a consistent application of any set of principles to guide us on in this country. If we can’t function, how to meet urban needs. the entire country loses. If we function efficiently

MAYOR MEL LASTMAN: and we are competitive, then the Our cities are the significant eco- entire country benefits.We need to make nomic generators in this country. If we can’t function, the entire country that case more coherently. loses. If we function efficiently and Mayor Mel Lastman we are competitive, then the entire country benefits. We need to make year. Right now, we’re getting 30,000, invest virtually no time in supporting that case more coherently. We need but we can take in more. We have to each other. We spend almost 100 per- to appear not just to be asking for promote our universities, foster cent of our intergovernmental affairs more, but to be putting forward a research. strategy working with our province business case that is built on helping and secondarily the federal govern- our provincial and federal counter- MAYOR PHILIP OWEN: ment, and it hasn’t worked. It hasn’t parts understand and appreciate the It’s pretty obvious that we’re all very worked for ten years. How many possibilities there are in exploring frustrated, but we all have different more years do we have to go through some of these new funding arrange- problems. The problems in Winnipeg this? I spend most of my time just ments. are different from those in Vancouver struggling to keep the revenues I and different from those in Toronto. I have. MAYOR GLEN MURRAY: think what we can do together is talk Maybe we need to start investing I cannot think of a country in the about the federal government’s pres- in our relationships. Maybe we industrial or civilized world in which ence in our cities. The delivery of ser- should start meeting with newspaper the national government isn’t proac- vices is best at the local level, and editors and opinion leaders because tively meeting with mayors and try- we’ve got to convince the federal we have a number of them in the ing to develop a national urban strat- government that we need the room. We were smart enough not to egy. The Americans, the Europeans, resources to do that. We have all got do what premiers did, we’re not just the Japanese have understood this to be partners with the provincial having the mayors here but having very, very well. They have found out and federal governments, and get other people here who are opinion that local government often makes into the revenue streams. We’re not leaders who could be potential part- the best decisions. We’re the closest asking them for a bunch more money, ners. How can we support Mayor level of government. We’re the one we’re asking for a reallocation of Bourque’s efforts to rebuild his city, that people have a most immediate funds. We’ve got to sort out a new one that is of such importance to the connection with and the greatest paradigm and rethink our approach. French language and culture? The expectations from. survival of Montreal is not just the MAYOR GLEN MURRAY: survival of the city, it’s the survival of MAYOR PIERRE BOURQUE: We do have differences, but all of us the cultural and linguistic underpin- Canada is a country of immigrants. are facing huge transportation prob- ning of North America. It has to

Volume 2 No. 1 25 have certain strengths and a certain role in this country that maybe the rest of us don’t. If four English-speak- C5 ATAGLANCE ing mayors said that we support Pierre Bourque’s mission to ensure for Montreal a special and unique role, we can help to see the cultural capac- “In 1871, just after confederation, 1 in 5 Canadians lived in an incorporated urban ity of Montreal strengthened, help it centre. In 1996, 4 out of 5 Canadians (78%) live in cities. Urbanization is fueling play a role that Winnipeg can’t. new demands on local governments, and new opportunities.” (Canada West Foundation, 1999) Montreal could be stronger than Paris. I would like people to say Canadian cities are in danger of losing ment procedures. Even the simplest ser- Montreal is a more beautiful French their competitive edge. Today’s economy vice-related changes often involve a pro- speaking city than Paris. Wouldn’t is global, and our cities need new tools to longed legislative process. This compro- that be wonderful? Wouldn’t we be compete effectively. mises service delivery and economic com- proud? Wouldn’t it be great if Calgary At Confederation, the provinces were petitiveness. was better than Dallas and Denver given exclusive authority to determine - Downloading. Over many years, both and Phoenix? the structure and powers of civic govern- federal and provincial governments have I can sit here and cry poor and ments. Now, at the beginning of the 21st transferred responsibilities to municipal grovel and beg with my provincial century, cities are playing a vital role in governments. Unfortunately, municipali- premier and I’ll get nowhere. But the economic, political and social lives of ties have not always received the what if I stand with the support of Canadians and yet, cities lack a voice on resources and authorities needed to many fundamental issues. And further, assume these new tasks. Mel Lastman and Pierre Bourque and many of the laws within which cities must To maintain and build Canada’s eco- Al Duerr and Phil Owen and tell my operate are out of date and are restricting nomic strength, cities must be equipped province that if we don’t start grow- the potential of all urban centres. for the future. Municipal governments ing this city – the central link in this Consider, for example, the impact of: and their associations are exploring country that connects east and west – - An over-reliance on property tax. opportunities for new working relation- it is going to fail and then all of us are Cities are burdened with an over-reliance ships with their provincial and federal going to fail? on property taxes. At the same time, they counterparts. Further, municipal govern- Maybe it’s the simple things, not lack the legislative authority to introduce ments are looking for new authorities, great constitutional deals; maybe we more progressive, sustainable revenue including new mechanisms for revenue should just support each other and sources. generation – mechanisms that do not add become each other’s powerful allies. - Prescriptive legislation. Generally, to the basic tax base, but rather, reform Let’s just try it for a year. If it doesn’t provincial legislation governing cities is the current distribution of that base. very detailed and requires lengthy amend- work we’ll get together twelve months from now somewhere in the ONTREAL country and we’ll say it didn’t work, M we’ll try something else. It’s a pretty The City of Montreal has a population of (47.6 percent) or Vancouver (44.9 percent). inexpensive way to invest our time 1,775,846 (1996 data). - Among the five cities, Montreal has the - Lower than Vancouver’s (4,545 highest rate of university graduates (26.8 more valuably. Our best intergovern- persons/km2), Montreal’s population density percent) among those 15 years and over. mental strategy may be mounting a (3,598 persons/km2) is comparable to that of - Montreal has the lowest rate of property common front and supporting each Toronto (3,786 persons/km2). owners, with 34.3 percent. other and advocating for each other. - The growth in population between the last - 20.4 percent of families in Montreal are two censuses (1991 and 1996) has been very single-parent families. MAYOR PIERRE BOURQUE: low (.001 percent). - According to the Conference Board of There’s still a lot of work to be done - The City of Montreal accounts for 53 per- Canada, the GDP of Metropolitan Montreal cent of the population of the census metro- should increase by 3.3 percent per annum, and the challenge of the future is the politan area of Montreal. on average, over the next five years. challenge of cities. If we don’t suc- - Francophones make up the majority of the - 77 percent of the jobs in the Montreal area ceed, I think the whole of Canada population (53.9 percent), with anglo- are in the service sector, 22 percent in man- will suffer. And I think the Canadian phones accounting for 18.5 percent of that ufacturing, construction and public utilities. government is beginning to under- population. - Pay rates in Montreal are comparable to stand that. But, I believe the five of - 73.7 percent of the anglophones in the the average rates of other cities – lower than census metropolitan area of Montreal live in Vancouver or Toronto, but higher than in us have to stay united, and that’s how on City of Montreal territory. Calgary or Winnipeg. we’re going to thrive. - In Montreal immigrants make up 26.5 per- (*) The demographic profile is reflective of the cent of the population, lower than Toronto new City of Montreal.

26 Volume 2 No. 1 TORONTO CALGARY - Winnipeg’s economy is made up of 76 percent from the service sector and 23 percent Toronto has an estimated population of - Present population (2000): 860,749 manufacturing, construction and utilities. 2,594,000 in 2001. - Had high population growth over the last - Employment is madeup of 79 percent from - makes up approximately half of the popu- decade (2.2% per year from 1991 to 2000). the service sector and 20 percent from man- lation of the Greater Toronto Area (GTA). - Lower forecasted population growth (1.5 ufacturing, construction and utilities. experienced population growth of 5.3 per- percent per year) over the next 20 years. - Winnipeg has a lower wage level than the cent since the 1996 census (compared with - Makes up 91 percent of CMA population, other cities. 16 percent population growth in the regions 87 percent of the Calgary region (which surrounding Toronto and 10.5 percent pop- includes the MD of Foothills, the area that ulation growth in the entire GTA). is directly south of the City but is not part of VANCOUVER - has forecasted population growth of 12.4 the CMA). - Current population is 560,000 (year 2000). percent over the next 20 years (compared - Middle-aged (25-54) people make up half - During the last census period (1991-1996), with 50.9 percent growth in the surrounding (50.3 percent) of the population. Vancouver’s population grew by 8.9 percent regions and 32 percent in the GTA). - Low proportion of seniors (8.9 percent). and the Vancouver Metropolitan Area pop- - had 51.5 percent of the GTA population - Lower proportion of aboriginals (3.1 per- ulation grew by 14.3 percent, the largest in 1996. cent). increase among metropolitan areas in - has a greying population: 13.4 percent - Higher proportion of visible minorities and Canada and twice the national average. aged 65 years and above in 1996 and 62.8 immigrants than Canada, but lower than - In the past ten years, growth has primarily percent of all seniors in the GTA. Toronto and Vancouver. occurred as a result of inmigration from - is experiencing a noticeable polarization of - Adults 25 and over have higher level of international and inter-provincial sources, income both within the City and between educational attainment than Canada and but in the past three years, there has been a the City and the rest of the GTA. similar or higher level than the other cities. trend of inter-provincial out-migration. - was home to 70 percent of GTA families - Higher percentage of people in families - Compared with the region and the who fell below Statistics Canada’s “Low (81 percent). province as a whole, Vancouver has a high- Income Cut-Off” at the 1996 census. - Higher level of home ownership (68 per- er population of seniors, with in excess of - continues to derive strength from its diver- cent). 60,000 citizens over the age of 65 residing in sity: 52 percent of those who choose to call - Forecasted average annual real GDP the communities. Toronto home were born in other countries. growth of 3.2 percent over the next five - Recently, Vancouver has seen a consider- - had 1/12th of Canada’s population in years. 1996, but 1/4th of Canada’s immigrants and able growth in its ethnic population, partic- 1/3rd of Canada’s recent immigrants. ularly from Southeast Asia. Toronto is the financial centre of Canada, WINNIPEG - Since its inception, Vancouver has attract- ed and welcomed migration of cultures from home to 90 percent of Canada’s foreign banks Winnipeg’s current population is 629,800 around the globe, thus making Vancouver and top accounting and mutual fund compa- (year 2000). one of the most diverse multicultural cities nies, and 80 percent of Canada’s largest R&D, - Experienced low growth (0.1 percent per in North America. Cultural festivals, restau- law, advertising & high-tech firms. year between last two censuses, 1991- 1996) rants and traditions are cherished mainstays - has 85,000 businesses, which employ more but population growth is forecasted to be 0.5 of Vancouver’s landscape. than 1.2 million people. - 0.7 percent per year over the next 20 years. - In recent years, personal income per capi- - has the 4th highest concentration of com- - Winnipeg makes up 93 percent of the pop- ta in B.C. has been higher than the nation- mercial software companies in the world, ulation of the CMA – equivalent to a al average. and is one of North America’s hottest ani- regional government. - After-tax income for both individuals and mation centres. Compared with the other C5 cities, families in B.C. has been consistently high- - has one of the best telecommunications Winnipeg has: er than the Canadian average for the past networks in the world, with one of the high- - A lower portion of middle aged (25-54) decade. est percentage of fibre optic cable installed, people (44.6 percent) - The Vancouver economy has traditionally and more wireless phones per capita, than - A higher portion of seniors a(13.7 per- been resource based but has been undergo- anywhere in North America. cent), a significantly higher portion of abo- ing fundamental change with industries - is the 3rd largest English-language theatre riginals (7 percent) such as tourism, hi-tech, film, transporta- centre in the world behind London and - similar portion of visible minorities and tion, biotechnology and financial services New York. immigrants as Canada as a whole but signif- showing large growth over the last decade. - is Canada’s #1 tourist destination with 23 icantly lower than Vancouver and Toronto; - The service sector comprises 83 percent of million visitors in 2000. - a higher level of home ownership at 62 the workforce, the remaining 17 percent - had an unemployment rate of 6.3 percent percent coming from the goods producing sector. in February 2001. - Adults, 25 and over, have a similar educa- - The Port of Vancouver is the largest port - Municipal property taxes comprise only tional level of attainment as Canada, but in Canada (tonnage shipped = 76.6 million 4.8 percent of the total taxes paid to all lev- lower than the other C-5 cities. in 2000) and the Vancouver International els of government by an average family in Winnipeg has more people in families (81 Airport is Canada’s second busiest, trans- Toronto. Source: Fraser Institute June, 2000 percent) than Vancouver and Montreal. porting 16 million passengers in 2000. - Toronto taxpayers contribute about $4 bil- Winnipeg’s forecasted real GDP growth rate lion a year more in taxes to the provincial of 3 percent (average) over the next 5 years and federal governments than is spent by – a healthy growth rate, but lower than the those governments in the city. C5 cities.

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