CITY CLERK
Clause embodied in Report No. 7 of the Policy and Finance Committee, which was before the Council of the City of Toronto at its meeting held on May 30, 31 and June 1, 2001.
2
Request to Federal Government to Establish a Ministry of Urban Affairs
(City Council on May 30, 31 and June 1, 2001, struck out and referred this Clause to the Mayor for further consideration, together with the following motions:
Moved by Councillor Cho:
“That the Clause be amended by striking out the recommendations of the Policy and Finance Committee and inserting in lieu thereof the following:
‘It is recommended that:
(1) subsequent to the announcement made by the Federal Government of Canada on May 9, 2001, wherein a Caucus Task Force on Urban Issues was initiated, the City of Toronto request the Federal Government to establish a Ministry of Urban Affairs as soon as possible to develop and implement a National Urban Agenda to deal with the important challenges facing large urban centres;
(2) in the event that the Federal Government is unable or unwilling to support the establishment of a Ministry of Urban Affairs, the City of Toronto request the Federal Government to establish a Federal Cabinet Committee, as soon as possible, to deal with the urgent challenges facing Canada’s large urban centres; and
(3) a Mayor’s Task Force on Urban Issues be established as a communication channel between the municipality and the Federal Government and the membership comprise the following:
Mayor Mel Lastman or his designate, Deputy Mayor, Case Ootes; Councillor Brian Ashton (Chair of Toronto Transit Commission); Councillor Lorenzo Berardinetti (Chair of Administration Committee); Councillor Raymond Cho; Councillor Olivia Chow (Chair of Children and Youth Action Committee); Councillor Betty Disero (Chair of Works Committee); Councillor Brad Duguid (Chair of Community Services Committee); Toronto City Council 2 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
Councillor Mike Feldman (Chair of Economic Development and Parks Committee); Councillor Anne Johnston; Councillor Jack Layton (President of Federation of Canadian Municipalities); Councillor David Miller; and Councillor Joe Pantalone (Chair of Planning and Transportation Committee);
and further that the Mayor’s Task Force develop Terms of Reference to guide future communications with the Federal Government Caucus Task Force on Urban Issues.”
Moved by Councillor Layton:
“That the foregoing motion by Councillor Cho be referred to the Mayor and the Mayor be requested to submit a report directly to Council, in July 2001, on a strategy for addressing the Urban Task Force and the issues contemplated in Councillor Cho’s motion and in the Clause.”
Further moved by Councillor Cho:
“That the Clause be amended by:
(1) striking out and referring Recommendations Nos. (1) and (2) embodied in the report dated March 22, 2001, from the Chief Administrative Officer, to the Mayor; and
(2) deleting Recommendation No. (3) embodied in the report dated March 22, 2001, from the Chief Administrative Officer.”
Moved by Councillor Chow, seconded by Councillor Layton:
“It is further recommended that the recommendations embodied in the communication dated May 30, 2001, from Councillors Augimeri, Balkissoon, Chow, Bussin, Hall, Moscoe, Mammoliti, McConnell, Johnston, Mihevc, Miller, Layton, Pantalone and Shaw, be adopted, viz.:
‘We are asking Council that normal procedures be followed and that the Chief Administrative Officer take appropriate actions especially with regard to the following recommendations:
(1) that the City of Toronto support the appeal against the CRTC decision on limiting the rights of municipalities to charge telecommunication companies the full cost of using public road allowance; Toronto City Council 3 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
(2) that the Chief Administrative Officer and any appropriate staff initiate or continue applications to the following programs which have been created by the federal government through FCM’s efforts or in partnership with FCM:
(a) National Infrastructure Program, with Toronto entitled to approximately $160 million (if calculated per capita);
(b) National Children Strategy through the Early Years Challenge Funds. City’s share of funds should be $22 million (if calculated per capita);
(c) homelessness funds under the ‘Supporting Community Partnerships Initiatives’ - Toronto is entitled to $56 million over the next three years - the first phase applications have already been processed;
(d) multi-year drug strategy with application date in June and projects to start in late fall;
(e) crime prevention strategy and pilot projects to develop community-based solution to reduce youth violence. This is a continuing programme in which FCM is a partner;
(f) Affordability and Choice Today Program funds up to $120,000.00 per project. The program is to help cities to improve the living environment and develop innovative housing projects; and
(g) Green Municipal Investment Fund and Green Municipal Enabling Fund (created by FCM last year in partnership with the Government of Canada, modelled on the Toronto Atmospheric Fund);
(3) that the City of Toronto continue to work closely with the FCM to seek full ‘Order of Government’ and Charter status and to increase financial power and decision-making flexibility to enhance the competitiveness of Canadian municipalities; and
(4) that the Mayor of Toronto and all Members of Council be encouraged to attend the FCM’s upcoming National Symposium on ‘Communities in an Urban Century’ in Toronto on October 4-5, 2001. The symposium is focussing on enhancing municipal powers and pushing for new revenue sources for municipal governments and was initiated by FCM at the request of Toronto as part of the Mayor’s Toronto Charter Initiative.’ ” Toronto City Council 4 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
Further moved by Councillor Layton: “That the Clause be amended by deleting Recommendations Nos. (1), (2) and (5) embodied in the report dated March 22, 2001, from the Chief Administrative Officer.”)
(City Council at its regular meeting held on April 23, 24, 25, 26, 27, and its special meeting held on April 30, May 1 and 2, 2001, deferred consideration of this Clause to the next regular meeting of City Council scheduled to be held on May 30, 2001.)
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Clause No. 8 of Report No. 4 of the Policy and Finance Committee entitled, “Request to Federal Government to Establish a Ministry of Urban Affairs”
The Policy and Finance Committee recommends the adoption of the following report (March 22, 2001) from the Chief Administrative Officer:
Purpose:
This report comments on a Notice of Motion relating to the federal government's role in urban affairs that was considered at the City Council meeting on March 6-8, 2001. The report reviews the motion in the context of existing Council positions and recent discussions at meetings of the Federation of Canadian Municipalities (FCM) and the FCM's Big City Mayors' caucus.
Financial Implications and Impact Statement:
The recommendations in this report have no direct financial impact.
Recommendations:
It is recommended that:
(1) the Notice of Motion by Councillor Cho and seconded by Councillor Berardinetti, respecting the establishment of a Minister and Ministry of Urban Affairs within the federal government, be received;
(2) the City of Toronto request the Federal Government to establish a Cabinet Committee on Urban Affairs in order to ensure that all ministers with responsibility for key urban issues focus on a national urban agenda;
(3) the City of Toronto support the Federation of Canadian Municipalities and its Big City Mayors’ caucus in their efforts to lobby the federal government to establish a Cabinet Committee on Urban Affairs;
(4) the Mayor invite the Federal Liberal Toronto Caucus to meet with the members of Toronto City Council to engage in a dialogue on key urban issues and the federal agenda; Toronto City Council 5 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
(5) copies of this report be sent to the Prime Minister, the federal minister with responsibility for the Greater Toronto Area, the President of the Federation of Canadian Municipalities and the Big City Mayors’ caucus; and
(6) the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.
Background:
At the meeting on March 6-8, 2001 City Council had before it Notice of Motion J(12) by Councillor Cho, seconded by Councillor Berardinetti, recommending that:
(a) the City of Toronto request the federal government to establish a Ministry of Urban Affairs to develop and implement a national urban agenda; and
(b) the Federal government appoint a Minister of Urban Affairs who will be responsible for working with municipal representatives in the development of the urban agenda and its implementation.
The Motion was referred to the Policy and Finance Committee for consideration, and the Chief Administrative Officer was requested to review the Motion, in consultation with the City of Toronto's Federation of Canadian Municipalities Board representatives, and report thereon to the Policy and Finance Committee.
Councillors Layton, Moscoe and Shaw, who represent the City of Toronto on the FCM Board of Directors, were consulted during the preparation of this report and concur with its recommendations.
Comments:
On July 4-6, 2000, Toronto City Council adopted Policy and Finance Committee Clause No. 1 of Report No. 9, entitled “Provincial Local Services Realignment - Making it Work and Towards a New Relationship with Ontario and Canada”. The report was intended to initiate a dialogue with the provincial and federal governments about new relationships between the City of Toronto and the other orders of government. These relationships would be enshrined in a legal framework that recognizes Toronto as a responsible and accountable order of government with rights and responsibilities.
As envisaged in the report of July 2000, the province would provide Toronto with a new legislative framework, through the enactment of a City Charter, that grants the City broad powers to act on local matters. A new legislative framework would also have the effect of broadening the City’s revenue base to ensure that financial resources match the City’s responsibilities. These changes would help to bring long-term financial sustainability to the City government and would position Toronto to compete successfully with cities in North America and elsewhere. Toronto City Council 6 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
The report also proposed that, in a new relationship, the federal government would formally recognize the importance of Toronto and other large urban centres in Canada through the development of a national urban agenda. Such an agenda would spell out actions required to maintain the social, economic and environmental sustainability of Canada’s largest urban centres. In a new relationship, Toronto would be able to deal directly with the federal government on matters of mutual interest and where federal policies or actions are likely to impact the City.
On August 13, 2000, the Board of Directors of the Association of Municipalities of Ontario (AMO) unanimously adopted a resolution to support the City of Toronto’s Charter initiative in principle. The principles underlying the City’s initiative are consistent with AMO’s own positions concerning the needs and status of municipal government as articulated in AMO’s 1994 position paper entitled “Ontario Charter: A Proposed Bill of Rights for Local Government”.
On September 9, 2000, the FCM Board of Directors adopted a resolution to “endorse the City of Toronto’s Charter initiative in principle, which is in keeping with FCM’s policy of achieving the recognition of municipal government as an independent order of government”. The Board directed FCM staff to “work in coordination with the City of Toronto to this end.”
On September 22, 2000, the Mayor sent a letter and an information package about the City’s Charter initiative to federal and provincial politicians, municipal leaders in the GTA and across Canada, FCM, AMO and other municipal associations across Canada.
On October 3-12, 2000, City Council adopted Policy and Finance Committee Clause No. 1 of Report No. 11, which outlined an “Implementation Strategy and Citizen Engagement Process to Establish a New Relationship With Ontario and Canada”. Since then, staff have been developing a communications strategy, including short and long-term goals, target audiences, messages and communications products. Work has also commenced on fleshing out the content of what a City Charter might look like. Staff expect to be in a position to roll out the first phase of the communications strategy this spring.
Recently, momentum has been building within Ontario and nationally to achieve positive changes to the status, powers and resources of municipal governments. Between November and January, AMO led a team of municipal officials in a series of meetings with Ministry of Municipal Affairs and Housing staff to discuss reform of Ontario’s “Municipal Act”. City of Toronto staff participated in these meetings at AMO’s invitation. While it remains to be seen whether the province will introduce meaningful reforms to the legislation, the concepts of a municipal order of government, clearly defined broad spheres of municipal power, notice and consultation were all discussed seriously in these meetings.
Nationally, there is evidence of a renewed federal government interest in the condition of Canada’s major cities. In the Speech from the Throne in February 2001, the federal government announced its intention to launch an “urban dialogue”. The government is in the process of preparing a framework for this initiative and has been consulting with key municipal contacts across the country including FCM and FCM’s Big City Mayors’ caucus, which represents Canada’s largest cities. Toronto City Council 7 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
On February 26, 2001, the Big City Mayors’ caucus initiated a campaign to create a national dialogue aimed at giving municipal governments the fiscal and legislative powers they need to remain competitive in increasingly integrated North American and global markets. The Big City Mayors’ initiative will include the development of mechanisms such as a model city government charter, development of a framework for municipal/provincial/federal agreements and activities leading to a national conference on Canadian cities, their governments and global competitiveness. The Big City Mayors’ plans complement the City of Toronto’s Charter agenda well.
In light of the federal government’s commitment to an urban dialogue, it is timely to consider what mechanisms and structures within the federal government will best facilitate the articulation of a national agenda on urban issues and coordination of actions in support of the agenda. This matter was discussed at the Big City Mayors’ meeting in February and at the FCM Board of Directors meeting in March.
Neither the FCM nor its Big City Mayors’ caucus supports the establishment of a Minister with Responsibility for Urban Affairs. Instead, there is a consensus that the creation of a Cabinet Committee on Urban Affairs would be a preferable course of action.
There is general consensus that a Minister for Urban Affairs would have to be a Minister of State, a junior Minister with no department and resources. While such a Ministry would provide some focus for urban issues, there is concern that it could also create a bottleneck, blocking the municipal sector's access to more senior ministers with responsibility for urban issues such as the Minister of Transportation, Minister of the Environment, Minister of Finance, Minister of Citizenship and Immigration, etc.
To avoid marginalizing the urban issues portfolio at the federal level, a Cabinet Committee on Urban Affairs would ensure that all relevant ministers with decision-making responsibility for key urban issues would focus as a group on the urban agenda. Given the importance of Canada’s major cities to the national economy and the critical issues relating to their fiscal sustainability, it may be appropriate to have a Cabinet Committee integrate these issues under the leadership of the Minister of Finance.
Conclusions:
Toronto City Council has adopted positions in support of recognition of the City government as a responsible and accountable order of government with commensurate rights and responsibilities. These positions are consistent with principles respecting the role of municipal government provincially and nationally that have been adopted by AMO and FCM.
Toronto City Council is also in support of the development of a national agenda on urban issues by the federal government. FCM and its Big City Mayors’ caucus believe that the creation of a Cabinet Committee on Urban Affairs would be a more effective and stronger means to further a national urban agenda than the creation of a Minister responsible for Urban Affairs, which would likely be a junior, unresourced ministry. City Council should not support the creation of such a ministry at this time. Toronto City Council 8 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
It is therefore recommended that the Notice of Motion by Councillor Cho and seconded by Councillor Berardinetti, respecting the establishment of a Minister and Ministry of Urban Affairs within the federal government, be received. It is further recommended that the City of Toronto request the federal government to establish a Cabinet Committee on Urban Affairs in order to ensure that all ministers with responsibility for key urban issues focus on a national urban agenda. It is also recommended that the City of Toronto support the Federation of Canadian Municipalities and its Big Cities Mayors’ caucus in their efforts to lobby the federal government to establish a Cabinet Committee on Urban Affairs.
It is recommended that the Mayor invite the Federal Liberal Toronto Caucus to meet with the members of Toronto City Council to engage in a dialogue on key urban issues and the federal agenda. It is further recommended that copies of this report be sent to the Prime Minister, the Federal Minister with responsibility for the Greater Toronto Area, the President of the Federation of Canadian Municipalities and the Big City Mayors’ caucus.
Contact:
Phillip Abrahams, Strategic and Corporate Policy Division, Tel.: 416-392-8102, Fax: (416) 696-3645; e-mail: [email protected]
The Policy and Finance Committee also submits the following communication (March 14, 2001) from the City Clerk:
City Council, at its meeting held on March 6, 7 and 8, 2001, referred the following Motion to the Policy and Finance Committee for consideration, and the Chief Administrative Officer was requested to review such Motion, in consultation with the City of Toronto’s Federation of Canadian Municipalities Board representatives, and report thereon to the Policy and Finance Committee:
(12) Request to Federal Government to establish Ministry of Urban Affairs
Moved by: Councillor Cho
Seconded by: Councillor Berardinetti
“Whereas the City of Toronto has many reasons to have ongoing relations with the Federal Government on a variety of issues; and
Whereas the City of Toronto and other large urban centres in Canada are impacted by many of the decisions of the Federal Government; and
Whereas there is no available structure to approach the Federal Government on urban issues; and
Whereas it is essential that the Federal Government, and the City of Toronto and other Urban Centres work together co-operatively and efficiently; and Toronto City Council 9 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
Whereas our cities continue to grow through the movement of people from rural areas to urban centres and external immigration; and
Whereas major urban centres throughout the world are in competition with each other; and
Whereas the needs of municipal governments have grown extensively over the years and will continue to grow in areas of social housing, children’s services, homelessness, taxation, transportation, and other vital services; and
Whereas there previously existed a Federal Ministry of Urban Affairs;
Now Therefore Be It Resolved That the City of Toronto request the Federal Government to establish a Ministry of Urban Affairs to develop and implement a national urban agenda;
And Be It Further Resolved That the Federal government appoint a Minister of Urban Affairs that will be responsible for working with municipal representatives in the development of the urban agenda and its implementation.”
(City Council on May 30, 31 and June 1, 2001, had before it, during consideration of the foregoing Clause, the following joint communication (May 30, 2001) from Councillors Maria Augimeri, Bas Balkissoon, Olivia Chow, Sandra Bussin, Suzan Hall, Howard Moscoe, George Mammoliti, Pam McConnell, Anne Johnston, Joe Mihevc, David Miller, Jack Layton, Joe Pantalone and Sherene Shaw:
We are writing to apprise Council of the outcomes of the FCM conference. We are asking Council that normal procedures be followed and that the CAO take appropriate actions especially with regard to the following recommendations:
(1) That the City of Toronto support the appeal against the CRTC decision on limiting the rights of municipalities to charge telecommunication companies the full cost of using public road allowance.
(2) That the CAO and any appropriate staff initiate or continue applications to the following programs which have been created by the federal government through FCM's efforts or in partnership with FCM:
Ø National Infrastructure program, with Toronto entitled to approximately $160 million (if calculated per capita);
Ø National Children Strategy through the Early Years Challenge Funds. City's share of funds should be $22 million (if calculated per capita);
Ø Homelessness funds under the "supporting community partnerships initiatives" Toronto is entitled to $56 million over the next three years, first phase applications have already been processed; Toronto City Council 10 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
Ø Multi-year drug strategy with application date in June and projects to start in late fall;
Ø Crime prevention strategy and pilot projects to develop community based solution to reduce youth violence. This is a continuing programme in which FCM is a partner;
Ø Affordability and Choice Today Program funds up to $120,000 per project. The program is to help cities to improve the living environment and develop innovative housing projects;
Ø Green Municipal Investment Fund and Green Municipal Enabling Fund (created by FCM last year in partnership with the Government of Canada, modeled on the Toronto Atmospheric Fund).
(3) The City of Toronto continue to work closely with the FCM to seek full "Order of Government" and Charter status and to increase financial power and decision-making flexibility to enhance the competitiveness of Canadian municipalities; and
(4) That the Mayor of Toronto and all Members of Council be encouraged to attend the FCM's upcoming National Symposium on "Communities in an Urban Century" in Toronto on October 4-5, 2001. The symposium is focussing on enhancing municipal powers and pushing for new revenue sources for municipal governments and was initiated by FCM at the request of Toronto as part of the Mayor's Toronto Charter Initiative.
Background:
The Federation of Canadian Municipalities now comprises over 1,000 democratically elected municipal governments across Canada, representing 82% of the nation's population. 2001 is the 100th anniversary of FCM.
Recently, the Globe and Mail celebrated 100 years of FCM's work in an editorial because municipal government is a rising star in Canada. The FCM is in the process of establishing new relationships with our federal government. Municipalities need to take their place as a full-fledged "order of government" in this country, treated with respect and as a full partner.
Creating a new legislative framework for municipal governments in Canada
An important FCM Committee is the joint task force of the future role of municipal government. In September 2000 in Saint John the committee supported the Toronto's charter initiative which was adopted by the FCM at the plenary session in Banff.
In 1996, out of 118 cities, Toronto was ranked fourth by the Swiss Corporate Resources Group's international study, by 2000 Toronto came in 19th place. While we need not accept the rankings of any particular evaluation report, Toronto and other Canadian cities are concerned at the early warning signs of deterioration of our fiscal and competitiveness vis a vis American and Toronto City Council 11 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
European counterparts. The Report, "Early Warnings", prepared by FCM, is available at www.fcm.ca and should be considered required reading for all those caring about Canadian cities.
Following Winnipeg's C 5 meeting of five cities, the Big City Mayors caucus met at the FCM conference. All of these cities share Toronto's concerns and all are anxious to work together to find solutions for our common interest. This shows the validity of Toronto's arguments about the lack of tools and financial instruments needed to match the city's increasing responsibilities. It also shows that it's essential for Toronto to be well represented at the table with these partners.
The FCM report just mentioned and the FCM staff report to the FCM Standing Committee Forum on the Future Role of Municipal Government demonstrated that 31% of European cities funding come from senior levels of government, 27% for American cities. In Canada, only 18% of cities funding comes from other levels of government. As a result, Canadian cities rely heavily on property tax (50%), while American cities only need 21% of their funding from property tax. The content of this report "Early Warning: Will Canadian Cities Compete?" was in fact quoted widely by the Big City Mayors' and the press at their meeting in Winnipeg. The Study received the full endorsement of the 1,700 Mayors and Councillors attending the Annual Meeting.
The Past President of FCM, Councillor Joanne Monahan and the new President Jack Layton met with the Minister of Intergovernmental Affairs, the Honourable Stephane Dion and asked that he consider signing an agreement to consult in a meaningful way with cities prior to introducing any policies, regulations and laws which could affect cities. This would be an historic development if it were to take place.
The FCM is actively lobbying to seek the following additional and alternative financial powers and resources:
Ø Legal authority for local self government, available to US municipal governments through home rule charters;
Ø Fiscal authority to engage in public/private partnerships, utilize such mechanisms as municipal permission to hold a mortgage, organize revolving funds, etc.;
Ø Access to growth-based taxation revenue, such as a share of sales taxes or direct taxes administered locally, which underpin much of the locally-generated revenue in New York City; a share of the currently collected income local income taxes, as imposed in Europe and in the US;
Ø Opportunities to leverage private sector investment, through direct tax incentives (tax-exempt municipal bonds in the US) or through national fiscal policy;
Ø Access to permanent lending programs for infrastructure, such as state-run infrastructure banks for transportation, and clean water/drinking water revolving funds widely available in the US. Toronto City Council 12 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
FCM is organizing a National Symposium on "Communities in an Urban Century" in Toronto, October 4-5, 2001. The forum is organized specially in response to the Prime Minister's Caucus Task Force on Urban Issues. The objective is to rethink municipal powers, identify new revenue sources for municipal governments, and to develop a tool kit needed to ensure the competitiveness of Canadian communities.
New Sources of Revenue for Toronto
The City of Toronto has benefited significantly from its association with the FCM. We need to ensure FCM dollars increasingly flow into the City.
Infrastructure Program
The Infrastructure Program was designed by the FCM and announced by the Federal government in 1993. According to a speech by the Honourable Stephane Dion, the President of the Privy Council and Minister of Intergovernmental Affairs given at the FCM meeting on May 26, 2001 that, "It was so useful and so popular that FCM was able to convince the Prime Minister to renew it in 1997 and then again in 2001. It was the best example of federal-provincial-municipal co-operation".
The development of the first Infrastructure programme was lead by former Toronto Councillor Richard Gilbert who served on the Executive and as President of the Federation of Canadian Municipalities.
The Infrastructure Program will make available $680 million to Province of Ontario this year. Toronto could be expected to receive in the range of $160 million this year. These funds will need to be matched by an equal payment from the province. The City's share would be one third. The funds can be used for public transit, affordable housing environmental infrastructure, tourism, cultural and recreational projects.
The FCM is also actively lobbying for a new permanent "Building a Better Quality of Life Infrastructure Program". The request is an investment of $1.7 billion per year for 10 years.
Lastly, FCM and the Big City Mayor's are working hard to get the federal government to translate its Throne Speech promise of dialogue with urban centres on public transit infrastructure into a permanent, national urban transit program, over and above the current Infrastructure program.
The Green Municipal Funds
The government of Canada established the Green Municipal funds in its 2000 budget to stimulate investment in innovative municipal infrastructure projects and environmental practices in Canadian municipalities.
The Green Municipal Enabling Fund is a five-year, $25 million fund that provides grants on projects designed to improve the environment. Toronto City Council 13 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
The Green Municipal Investment Fund is a $100 million permanent revolving fund that provides loans to municipalities to finance environmental infrastructure projects.
The impetus for these funds derived from Toronto's efforts for creation of a national version of its well known revolving fund, the Toronto Atmospheric Fund and its corollary, the Better Buildings Partnership. A corollary Municipal Buildings Retrofit programme was also created, being administered by FCM and funded by the federal government.
Toronto has already benefited by financing for the following projects:
Ø a study into diverting organic wastes and generates methane from landfills use for district energy systems;
Ø development of sustainability centre at the Humber Arboretum, which will demonstrate and educate about sustainability technologies.
The Green Municipal Enabling Fund is expected to provide 50% of the cost of feasibility studies for environmental initiatives over the three years of the fund.
The Green Municipal Investment Fund will enhance the Toronto Atmospheric Fund's activities and other energy efficiency projects and will pay back from 5 to 10 years on very low interest rate basis.
Municipal right to charge telecommunication companies full cost of using tax payers' property
The City has $9.5 million a year of municipal access agreements with telecom companies, which would be lost immediately, unless a decision to limit city's right to charge is overturned. Further, the city will also lose additional potential revenue of at least $11 million per year.
At stake is the right of municipality to recover cost and receive rent for the use of their property (road allowance) from private telecommunication companies. Thus when a fiber optic cable is installed under our street, the city should receive fair compensation, as is the case in the United States for example.
To illustrate, the City of Toronto charges a single hot dog vendor for the use of a part of sidewalk more than it charges Bell Canada for the use of every street in Toronto.
FCM developed a model municipal access agreement in 1995, which was backed up by a right-of-way defense fund, to fund a test case before the Canadian Radio and Telecommunication Commission (CRTC). This initiative was developed at FCM through the work of the City of Toronto staff and City Councillors. Councillor Moscoe was recognized for his leadership on this issue at the conference.
In 1999, a dispute between LEDCOR and the City of Vancouver erupted into a hearing at the CRTC. LEDCOR was installing secretly while negotiating with the city. This dispute expanded to include the rights of every city in Canada. Under the leadership of the Chair of Task Force, Toronto City Council 14 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
Councillor Howard Moscoe, cities across the country made a FCM submission to the CRTC defending its rights.
Unfortunately, on Jan 25, 2001 CRTC decided to limit municipalities to only recover administrative cost. They rejected submission for full cost recovery or compensation for the use of public property. This represents a significant attack on municipalities' ability to manage rights of way for the benefit of all taxpayers. FCM and large cities including Toronto won the leave to appeal on May 14, 2001 against this regressive decision.
Housing
Toronto Mayor Mel Lastman's initiative, through the Big City Mayors, prompted the FCM to create "The FCM National Housing Strategy" with its target of 20,000 new affordable housing units annually and 10,000 rehabilitated rental units per year. Through the FCM's effort, the Liberal government promised an affordable rental program as part of the election platform last year. Also, the $753 million federal homelessness funding programme resulted from FCM's efforts in this area. These funds are now flowing to the City and other communities.
The task this year is to advocate for the implementation of a housing strategy that is properly funded and that does not require provincial cost sharing and approval. Municipalities need maximum flexibility that build on successful approaches already in place or currently evolving.
Affordability and Choice Today Program funds 10 to 12 projects each year in the amount of up to $120,000. The program is to help cities to improve the living environment and develop innovative housing projects. Toronto projects have received support under this programme.
The Residential Rehabilitation Assistance Programme was doubled in size as a result of FCM pressure and the efforts of Mayor Lastman and City Council. Many units of rehabilitated housing at affordable rents have been completed or are underway in Toronto at the moment as a result of these initiatives.
We hope for a decision on federal investment in new affordable housing in the near future. With federal cabinet ministers in attendance, the FCM Convention offered a unique opportunity for advocacy in the following areas:
Ø Reduced GST in new rental construction should help with the housing crunch, may help reduce some shelter costs, and will eventually produce additional property tax revenue;
Ø Additional RRAP funding will provide several million dollars for affordable housing initiatives;
Ø Homelessness funds under the "supporting community partnerships initiatives".
As incoming President of FCM, Councillor Layton met at length with federal Ministers Anne McClellan, Lucienne Robillard, David Anderson, and Stephan Dion to underline the urgency of the affordable housing requests and the other items on FCM's lobbying agenda. Toronto City Council 15 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
Funding for Children Services
Every year since 1999, Toronto Councillors have aggressively put the issue of investing in children on the agenda of the federal government.
As the result of the National Children's Agenda, the City of Toronto receives on an annual basis at least $9 million from this initiative. The federal government last year announced $2.5 billion (over five years) new funding for childrens services. This year Ontario has not been willing to turn over the $23 million to Toronto. The FCM annual meeting requested the federal government to consult and deal directly with cities so funds can flow directly through to Toronto.
If the Federal government follows the FCM direction, $91.5 million would come to Toronto from 2001 - 2003, a sum that will eliminate the entire list of children waiting for child care and ensure 12,200 children will have care.
Transportation Funding
The Transportation Committee made strong statements reflecting Toronto's positions on transit and transportation funding. The committee's statements supported Toronto's position that a share of the gas tax is a critical tool for funding transportation. The example of Alberta, Quebec and British Columbia were cited as important precedents. In addition, the committee endorsed Provincial legislation allowing new revenue sources as a critical funding support. In Alberta, the Province had allowed the City of Calgary to charge parking levies to support transit infrastructure.
The FCM's efforts in this regard have been spearheaded by the GVRD's Chair, George Puill, and the City of Toronto and its Transit Commission.
The City of Toronto also received a $50,000 grant from the FCM for the transportation management association. The city is applying for this grant again this year.
Municipal Financing
FCM has established a sub-committee on municipal finance to be supported by a technical working committee of municipal staff, including Toronto staff. The sub-committee will develop an inventory of financing mechanisms used across Canada and in other countries as part of its efforts to develop the case for new and more innovative tools for municipalities.
Community Safety
Minister of Justice Anne McClellan announced in her keynote speech at FCM to increase funding for municipalities to develop crime prevention strategy. She also announced a new $2 million program to fund pilot projects that develop community based solutions to increase youth safety. This project is connected with the introduction of the new youth justice act.
Starting immediately in June, there is a call for city to apply for funding to establish pilot projects to reduce drug use. It is under a "multi-year drug strategy" program. Toronto City Council 16 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
The community safety committee also gave suggestions to the Minister on
• C24, Criminal Code amendment to combat organize crime;
• Proceeds of crime (which should be used for initiatives to target crime reduction);
• Gangs and organized crime
International Programs
The FCM supervises a multi-million dollar federal programme, financed by CIDA, to allow Canada to assist municipalities in many parts of the world to benefit from the latest knowledge and expertise of our cities and towns. The committee responsible for this programme at FCM undertook to do more outreach to different municipalities within Canada to increase awareness about its programs. These include the International Centre for Municipal Development, which is co-ordinating and implementing programs and initiatives around the world. Many municipalities are now partnering and entering into international exchange agreements. The committee agreed to share resources and best practices between municipalities. These programs are supported financially through the Canadian International Development Agency.
Economic Development
Film industry is a focus of the Economic Development Committee. This year, the production activity of the Canadian film and television industry reached $4.4 billion, an increase of 12 per cent over the previous year. 120,000 jobs are created as a result. This focus is important to Toronto as film is a major economic activity. Toronto and Vancouver are taking the lead in exploring best practices through FCM's committee.
Race Relations & Equity Issues
The committee continued its education focus in the conference by including an address by Tom Jackson and Calgary Councillor Joe Ceci on the changing demographics and the need for positive strategy to combat racism and bias. The committee also prioritized the implementation of the generic hate crime policy developed by the committee for municipalities across the country based on our Toronto policy.
The committee was updated on the discussion for the World Conference on Racism (UN - WCAR) and Canada's plan for action.
The Task Force on Issues for Canadian Women in Municipal Government agreed to award an annual $500 scholarship to a student studying women's issues, politics or other related subjects and to develop a mentoring program across Canada to encourage women to enter municipal politics. Toronto City Council 17 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
Resolutions Session
Here are just a few of the many resolutions affecting Toronto that were debated and adopted by conference delegates:
Ø That the federal and provincial governments work together to develop national mandatory drinking water standards and ensure the financial capacity to deliver infrastructure enhancements to the water systems of the country.
Ø That the municipalities be consulted prior to the World Trade Agreement, and that the federal government ensure that municipalities not be included as part of this agreement without their consent; and that a dedicated FCM staff continue to monitor the process.
Ø That the federal government establish a federal ombudsperson.
Ø That the federal government develop a national strategy to deal with organized crime.
Ø That the use of municipal vehicles by municipal employees who are "on call" not be treated as a taxable benefit.
Ø That the purchase of electricity, natural gas and heating oil be exempted from GST.
Ø That the federal government require port corporations to make payments-in-lieu equivalent to the property taxes.
Ø That the federal government amend the letters patent of port authorities to make all lands that are not port related be subject to municipal taxation, by-laws and regulation.
Ø That the federal government foster initiatives for developing non-nuclear alternative sources of electric power generation which are deemed the most promising for large, commercial scale application.
Ø That the federal government be required to pay for the policing expenses associated with ports.
Ø That fees for doctor-referred exercise programs in public and private recreational facilities be allowable for a tax credit.
One Failure
The FCM conference adopted a resolution to ask the federal government to conduct a full review of the gun registration legislation. Cities such as Montreal and Toronto objected on the grounds that the new policy had only recently been introduced, needed time to become fully effective and to be monitored, and was important in achieving higher levels of gun control in cities. Toronto City Council 18 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
A strategy to consider in the future might be to suggest a law which would prohibit any gun ownership in cities while allowing different regimes in rural and small communities where legitimate gun ownership for hunting and protecting of animal livestock may be justified.
Conclusions: Priority Goals for the Conference
Prior to attending the conference, the Toronto delegation agreed to achieving the following goals:
Ø To ensure that Toronto's interests and priorities are properly and aggressively represented at the annual FCM "City Council Meeting" attended by 1,700 Mayors and Councillors from across Canada;
Ø To meet with key Federal Cabinet Ministers and officials to ensure that Toronto's concerns are being heard by important federal decision makers at the single most important national forum on municipal politics;
Ø To ensure that Toronto effectively influences priorities of FCM and the large number of policy areas being pursued by the FCM (i.e. different Councillors have different areas of interest and expertise).
Other Priority Items for Toronto
(1) Federal infrastructure funding for transit (2) Financial help from federal government help to ensure safe drinking water (3) Rights of way efforts to achieve revenue from telecommunications (4) Federal government help to fight climate change (5) Explore feasibility of changing the constitutional status of cities (6) Programs for elderly people (7) Advancement of support for multicultural issues (8) Increased access to FMC's Green Municipal Enabling Fund to promote environmental initiatives (9) Ensure effective representation by the Toronto caucus on the FCM Board (10) Ensure Toronto is properly represented at this premier gathering of municipal officials in Canada
Conference Overview
There were over 36 sessions throughout the 4-day conference, many of them concurrent.
Although there were many concurrent sessions, we feel that we have been able to accomplish the above goals for the city.
Some sessions included key note addresses from Cabinet Ministers Lucienne Robillard President of Treasury Board of Canada; David Anderson, Minister of Environment; Stephane Dion; President of the Privy Council and Minister of Intergovernmental Affairs and Anne McLellan, Toronto City Council 19 Policy and Finance Committee May 30, 31 and June 1, 2001 Report No. 7, Clause No. 2
Minister of Justice. Bryon Wilfert, Member of Parliament and Prime Minister's Task Force on Urban Affairs also spoke at the conference.
The FCM conference was also addressed by the leader of the Official Opposition, Stockwell Day and by the leader of the PC, the Right Honourable Joe Clark. This is an indication that both government and major parties recognized FCM's paramount importance as the forum for all major municipal issues.
We also attended FCM caucus committee meetings, FCM elections as well as seminars ranging from crisis management to municipal electronic infrastructure strategies.
Councillors Sherene Shaw and Howard Moscoe have been re-elected as Board Members of the FCM's national board. Jack Layton has been elected as the president.)
(City Council also had before it, during consideration of the foregoing Clause, the following:
(i) a press release submitted by Councillor Raymond Cho, Scarborough-Rouge River, entitled “Prime Minister’s Caucus Task Force on Urban Issues Announced”; (ii) an Executive Summary from the Federation of Canadian Municipalities, submitted by Councillor Jack Layton, Toronto-Danforth, entitled “Early Warning: Will Canadian Cities Compete?”; and (iii) a chart prepared by Councillor Jack Layton on FCM Initiatives that Benefit the City of Toronto, submitted by Councillor Olivia Chow, Trinity-Spadina.)