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SUBMISSION TO THE
JOINT STUDY COMMITTEE
ON
RETAlL ELECTRICITY SERVICE
IN ONTARIO
March 1, 1995
Toronto
CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
SIZE OF ONTARIOS MUNICIPAL ELECTRIC UTILITIES . . . . . . . . . . . . . . 3
Recommendation #l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
VARIABILITY OF O M & A COSTS WITH SIZE AND DENSITY . . . . . . . . 4
Table l- OM & A Costs Per Customer- 1992 . . . . . . . . . . . . . . . . . . . . . . 5
VARIABILITY OF CUSTOMER ENERGY BILLS WITH CUSTOMER SIZE
AND DENSlTY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Table 2- Ontario Res. &Gen. Serv. 1992 Bill Comparisons in $ . . . . . . . . . . . . . 6
VARIABILITY OF RELIABILITY AND ACCIDENT FREQUENCY
WITH CUSTOMER SIZE AND DENSITY . . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 3- Ontario Power System Rel. & Ace. Freq. 1992. . . . . . . . . . . . . . . . . 7
VARIABILITY IN FUNCTIONAL CAPABILITY WITH CUSTOMER SIZE . . . . 7
Table 4- Functional Capability for Utilities by Size . . . . . . . . . . . . . . . . . . . 8
Recommendation #2 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 9
GREATER TORONTO AREA
(MISSISSAUGAS PROJECT PHOENIX) . . . . . . . . . . . . . . . . . . . . . . 10
Table 5- Controllable Costs by GTA Regional Utilities -1992 . . . . . . . . . . . . . . 11
Table 6- Controllable Costs by GTA Regions -1992 . . . . . . . . . . . . . . . . . . . . 12
Table 7- Customer Monthly Energy Bills -1992 . . . . . . . . . . . . . . . . . . . . . . . 13
CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
GRAPHS...
1. ONTARIO & AMERICAN UTILITIES COMPARISONS
Operations & Maintenance
Billing and Collections
General Administration
2. ONTARIO RESIDENTIAL & GENERAL SERVICE
Residential Bill (1000 kWh)
General Bill (100 KW, 30,000 kWh)
3. ONTARIO POWER SYSTEM RELIABILITY
System Interruption Duration
Accident Frequency
4. CONTROLLABLE COSTS BY GTA REGIONS
Operations and Maintenance
Billing and Collections
General Administration
Total of O M & A Costs
5. CUSTOMERS MONTHLY ENERGY BILLS
Residential (1000 kWh)
General Services (100 KW, 30,000 kWh)
Submission to the Joint Study Committee
on Retail Electricity Service in Ontario 1
1. EXECUTIVE SUMMARY
This submission arrives at two recommendations, which if implemented will streamline the
retail electricity service in Ontario.
(a) That the provincial government enact legislation dissolving all MEUS with less
than 2000 customers, and
That these dissolved MEUS;
F be amalgamated with surrounding municipal service areas to form viable
units; or
E be amalgamated with Ontario Hydros Retail Utilities.
(b) That the provincial government enact legislation which will facilitate the
amalgamation of all MEUS of less than 20,000 customers, with rural service
areas or other MEUS, into units of 20,000 to 50,000 customers, where feasible.
Note: It is recognized that small remote MEUS may have to remain for practical
reasons.
2. BACKGROUND
This independent study is based on the following resource material:
Ontario Hydro Statistical Yearbook 1992
Annual Statistical Issue - American Public Power Association - January - February
1995 (VO1.53, No.1)(1992 Data)
Ontario Hydros Monthly Rates and Comparative Bills
July 1992 Issue
MEAs Performance Management Ratios Survey 1989-1993
(1992 data was used)
1
Submission to the Joint Study Committee
on Retail Electricity Service in Ontario 2
To draw the comparison with the American Public Power Association (APPA) Statistics, the
APPA customer categories were used throughout this submission.
These are:
2,000 to 5,000 customers
5,000 to 10,000 customers
10,000 to 20,000 customers
20,000 to 50,000 customers
50,000 to 100,000 customers
over 100,000 customers
No utilities were excluded because of perceived anomalies in the data.
In this submission the following will be considered:
the size distribution of Ontarios Municipal Electric Utilities
the variability of O M & A costs with size and with customer density
the variability of customer energy bills with size and with density
the variability of power system reliability with size and customer density
the variability of safety records with size
the variability in functional capability with size
We have also done an analysis of the implications of a Greater Toronto Area Utility,
including Metro Toronto, Peel Region, York Region and Durham Region.
In these studies, all utilities with 2,000 customers or less were excluded because of our
recommendation to dissolve these utilities.
2
Submission to the Joint Study Committee
on Retail Electricity Service in Ontario
3
3. SIZE DISTRIBUTION OF ONTARIOS MUNICIPAL ELECTRIC UTILITIES
Following are the demographics from the 1992 data:
No. of Utilities ~
7
11
36
60
81
136
175
311
more than 100,000 customers
more than 50,000 customers
more than 20,000 customers
more than 10,000 customers
more than 5,000 customers
more than 2,000 customers
less than 2,000 customers
total number of utilities
The majority of the municipal electric utilities (MEUS) have less than 2,000 customers, with
Priceville being the smallest with only 124 customers. Based on 1992 data the average MEU
employs 2.7 employees per thousand customers. These utilities therefore, have 5 -6
employees or less. Often these MEUS have more Commissioners (3 to 5) than employees.
Can MEUS with less than 2,000 customers:
(1) Achieve the economic benefits of scale?
(2) Provide the in house expertise to service their customers effectively?; and
(3)
What is the cost to Ontario Hydro and the MEA to provide a full range of services
to these MEUS?
We submit that many of these utilities had their place in the evolution of the retail electricity
system. Their continued viability into the 90s and beyond is doubtful however.
Submission to the Joint Study Committee
on Retail Electricity Service in Ontario
4
Recommendation #1
That the provincial government enact legislation dissolving all MEUS with less than
2000 customers, and
That the MEUS;
(1) be amalgamated with surrounding municipal
unit; or
(2) be amalgamated with Ontario Hydros Retail
service areas to form a viable
Utilities.
4. VARIABILITY OF O M & A COSTS WITH SIZE AND DENSITY
As already illustrated in the joint study interim report, there is quite a bit of variability in O
M & A costs.
Table 1 shows the results from Ontario and American utilities, and two conclusions can be
drawn from this data:
(1) That operation and maintenance costs increase with size
(2) That billing and collecting costs demonstrate economies of scale
From the geographic density data it can also be demonstrated that controllable expenses
increase dramatically as urban density intensifies. The two areas where costs increase the
most are in operation and maintenance and general administration.
The data in the over 100,000 customers group is partially dominated by the statistics from
Toronto Hydro.
4
Submission to the Joint Study Committee
on Retail Electricity Service in Ontario
5
TABLE 1
OPERATION MAINTENANCE AND ADMINISTRATION COSTS
PER CUSTOMER -1992 DATA
ONTARIO MEUS
CUST IN 000 2 - 5 5 - 1 0 10- 20 20- 50 50- 100 over 100 AVG
Observations 57 21 14 25 4 7
AMERICAN PUBLIC UTILITIES
EXIST IN 000 2 - 5 5 - 1 0 10- 20 20- 50 50- 100 over 100 AVG
observations N/A N/A NIA N/A NIA N/A
COST / CUSTOMER IN US$
Op and Maint. I 196 I 196 I 178 I 181 I 257 I 212 I 190
Bill and Coil 32 29 30 35 37 52 32
Gen Admin. 62 69 64 63 124 68 67
TOTAL 290 294 272 279 418 332 289
NOTE: Averages are based on All MEUS over 2000 customers.
5
Submission to the Joint Study Committee
on Retail Electricity Service in Ontario
6
5. VARIABILITY OF CUSTOMER ENERGY BILLS WITH CUSTOMER SIZE
AND DENSITY
For comparison purposes an average 1000 kWh/month residential service bill and a
10OkW/30000kWh/month general service bill were used to illustrate any observable trends
with size.
It appears from the data in Table 2 that there are economic benefits of scale for residential
customers. For general customers there is a trend toward higher bills in utilities with more
than 100,000 customers. This is dominated to some degree by Toronto Hydro.
It also appears that the 20-50 thousand customer group is able to maintain reasonable bills
despite their low geographic density.
TABLE 2
ONTARIO RESIDENTIAL AND GENERAL SERVICE
1992 BILL COMPARISONS IN $
CUSTOMERS IN 000 I 2-5 I 5-10 I 10-20 I 20-50 I 50-100 I OVER 100 ] AVG
Residential Bill
1000 kWH
79.70 79.84 79.02 78.99 76.92 77.47 78.59
General Bill
100 KW, 30000 kWH
2096 2100 2112 2127 2115 2199 2166
Customers per Sq. km. 365 255 374 319 374 712 324
NOTE: Average for all MEUS over 2000 customers.
6
Submission to the Joint Study Committee
on Retail Electricity Service in Ontario
7
6. VARIABILITY OF RELIABILITY AND ACCIDENT FREOUENCY WITH CUSTOMER
SIZE AND DENSITY
From Table 3 there appear to be benefits of scale in power system reliability and in safety.
This can be attributed to distribution system automation and control and more formalized
safety programs as utilities increase in size.
TABLE 3
ONTARIO POWER SYSTEM RELIABILITY & ACCIDENT FREQUENCY
1992 DATA
CUSTOMERS IN 000 ] 2-5 I 5-10 ] 10-20 I 20-50 I 50-100 I OVER 100 I AVG
I I I I I I I
System Average Interruption
Duration Index in Hours NIA 0.87 1.99 1.82 1.31 1.08 1.55
Accident Frequency
Per 200000 hrs. Worked 3.17 5.53 3.20 4.68 2.06 3.93 4.21
Customers per Sq. Km. 365 255 374 319 374 712 324
NOTE: Average based on Customers for all MEUS over 2000 customers.
7. VARIABILITY IN FUNCTIONAL CAPABILITY WITH CUSTOMER SIZE
The functionalization of utilities into key areas of expertise, is fundamental to their ultimate
success.
In the retail business, a basic level of functional expertise is available in the 20,000 to
50,000 customer range. Table 4 illustrates this by indicating when specific expertise
becomes available. It should be noted that smaller utilities than those indicated, may be
quite expert in one area or another, and that this is a generalization.
7
Submission to the Joint Study Committee
on Retail Electricity Service in Ontario 8
TABLE 4
FUNCTIONAL CAPABILITY FOR UTILITIES BY SIZE
CUST IN 000 2 - 5 5 - 1 0 10- 20 20-50 50-100 OVER 100
METERING
Technician
* B * * B
ENGINEERING
Technician
B B * * *
Engineer
* B * *
OPERATIONS
Mechanic
B * *
Scada Operator
B * *
Control Room (24 hrs)
* *
Trouble Crew (24 hrs)
*
I
FINANCE
Accountant
B * * B
Storeskeeper
* * * *
Purchasing Agent
* * *
I
I
CUSTOMER SERVICE
Mgr of Cust Serv
* B *
I
I
HUMAN RESOURCES
Mgr of Human Res
* * *
Safety Professional
* *
I
LEGAL
Solicitor
*
(
8
Submission to the Joint Study Committee
on Retail Electricity Service in Ontario 9
lt is our opinion that 20,000 to 50,000 customers is the threshold for broader
functionalization. The following is an analysis of the functional expertise in MEUS of this
size:
(1)
(2)
(3)
(4)
(5)
(6)
The metering and engineering expertise becomes sufficient to deal with remote meter
interrogation, scada systems, and the more complex aspects of distribution system
design.
In the area of operations there will likely be a control room with operators covering
at least two shifts. This provides for more timely power system restoration and safer
operating practices.
In the area of equipment maintenance, there is likely a mechanic on staff to ensure
that vehicles are maintained in safe working order, and this individual will have the
knowledge about hydraulic systems and dielectric booms to ensure that the
equipment is safe and reliable for live line operations.
The utility will have professional accounting expertise to do detailed functionalized
budgeting, and to do cost benefit studies to ensure good decision making.
in the area of customer service there will be a trained professional staff to deal with
customer service concerns, to survey customers, and to engage them in focus groups
to ensure that customer expectations are met. Customer service staff will also
possess energy management expertise.
In human resources there will be a professional to assist in negotiations and to deal
with Iabour legislation and safety issues.
Many of these services can be purchased, but they are better when integrated in house.
Recommendation # 2
That the provincial government enact legislation which will facilitate the
amalgamation of all MEUS of less than 20,000 customers, with rural service areas
or other MEUS, into units of 20,000 to 50,000 customers, where feasible.
Note: It is recognized that small remote MEUS may have to remain for practical
reasons.
9
Submission to the Joint Study Committee
on Retail Electricity Service in Ontario
10
8. GREATER TORONTO AREA UTILITY (MISSISSAUGAS PROJECT PHOENIX
We have reviewed the prospect of being amalgamated into a GTA Utility. From our
analysis of the data in Tables 5 & 6 , there would be a big financial penalty for Durham
Region.
The average operation and maintenance costs in this GTA utility are $137/customer, while
in Durham Region the average costs are less than half $6 I/customer.
In billing and collecting the advantages if any would be minor, and in general administration
this GTA utilitys costs are $78/customer compared to $40/customer in Durham Region.
There will of course be savings due to the avoidance of duplication and central
procurement, but these savings are not expected to offset the high cost of utility operations
in other parts of the GTA.
A quick examination of the 1992 monthly retail bills (see Table 7) also makes it clear that
Durham Region Utilities delivered power at lower rates than other Regions in the GTA.
Residential customers pay 4.6/0 less than the average, and commercial and industrial
customers pay 8/0 less than the average.
Clearly a GTA utility is not in the interest of Durham Region. With 1,100,000 customers,
a GTA utility would have approx. 40/0 of the customers currently being served by MEUS.
This utility would clearly be too big and become a bureaucracy of its own.
9. CONCLUSIONS
There is room for rationalizing the retail electricity business in Ontario.
Clearly 311 MEUS is too many for todays environment.
These numbers could be reduced to 136 by eliminating utilities of less than
2,000 customers.
The system could further be rationalized by amalgamating utilities with less than
20,000 customers into larger units of 20,000 to 50,000 customers.
There is urgency for reform if we want to remain a competitive public utility alternative.
The time is definitely ripe for action, and we ask the committee to seriously consider these
recommendations.
10
TABLE 5
CONTROLLABLE COSTS BY GTA REGIONAL UTILITIES -1992 DATA
OVERALL COSTS IN $ PER CUSTOMER COST IN $
, ,
I Cust. I O & M I Billing
I Gen Adm I O & M I Billing I Gen Adm I Total
Toronto 218852 60367926 9210337 40735722 276 42 186 504
Balance of Metro Toronto
East York 25105 3124401 1287708 1618041 124 51 64 240
Etobicoke 93353 11023547 3896240 3360584 118 42 36 196
North York 144430 16641851 6700871 11094082 115 46 77 238
Scarborough 127384 13509217 6956629 5625419 106 55 44 205
York 35927 3111435 2515855 1897717 87 70 53 209
Totals & Average
I
426199
Peel Region
I
Caledon 2577
I
Brampton 65501
i
Mississauga 127862
1
Totals & Average 195940
47410451 21357303 23595843 111 50 55 217
I I !
285144 I 140181 142040 I 111
7525291
I
3159550 3135071
I
115
13583408 2035502 6341783 106
21393843 5335233 9618894 109
54 I 55 I 220
i I
48 48 I 211
, I
16 50 I 172
27 I 491 186
I I
York Region
Aurora 10304 618923 530380 538172 60 51 52 164
I , 1 1 I I
Markham 48435 4373466 1357607 2193551 90 28 I 45 I 164
, 1 1
Newmarket 18026 1547750 637066 525588 86 35 I 29 I 150
, 1
Richmond Hill 26986 2888635 1139078 1454020 107 42 54 I 203
Vaughan 38610 4984906 2542025 2042991 129 66 53 248
r I 1 1 i I I
Whitchurch Stouf 3006 I 362698 I 156642 I 303410 I 121 52 I 101 274
Totals & Average 145367 14776378 6362798 7057732 102 44 49 194
I
Durham Region
Ajax 18995 895050 797791 835530 47 42 44 133
Newcastle 8449 627191 306596 388527 74 36 46 157
Oshawa 43161 2785293 2029632 1167986 65 47 27 139
Pickering 23468 1558965 835388 1185688 66 36 51 153
Scugog 2068 79109 98291 138340 38 48 67 153
Whitby 20782 1138506 1063717 912250 55 51 44 150
, 1 I ! [
Totals & Average 116923 I 7084114 I 5131415 \ 4628321 61 441 40 I 144
.
. Averages are weighted averages based on customers.
11
Submission to the Joint Study Committee
on Retail Electricity Service in Ontario 12
TABLE 6
CONTROLLABLE COSTS BY GTA REGIONS -1992 DATA
OVERALL COSTS IN $ PER CUSTOMER COST IN $
Cust O & M Billing Gen Adm O&M Billing Gen Adm Total
Toronto 218852 60367926 9210337 40735722 276 42 186 504
Balance of Metro 426199 47410451 21357303 23595843 111 50 55 217
Peel Region 195940 21393843 5335233 9618894 109 27 49 186
York Region 145367 14776378 6362798 7057732 102 44 49 194
Durham Region 116923 7084114 5131415 4628321 61 44 40 144
Totals & Average 1103281 151032712 47397086 85636512 137 43 78 257
Province 2655852 277904579 106871821 148054019 105 40 56 201
NOTE: AVERAGES OTHER THAN PROVINCIAL AVERAGE ARE WEIGHTED AVERAGES BASED ON CUSTOMERS
12
TABLE 7
CUSTOMER MONTHLY ENERGY BILLS -1992
Residential General
Customer 1000 kWH 30000 kWH/100 kW
Toronto 218852 87.90 2723
,
Balance of Metro Toronto
East York 25105 77.43 2208
Etobicoke 93353 79.20 2157
z
North York I 144430 I 78.28 I 2192
Scarborough
I
127384 I 74.13
I
2191
York
I
35927 I 76.13
I
2145
Totals & Average 426199 77.01 2181
Peel Region
Caledon 2577 83.85 2195
Brampton 65501 78.88 2151
I !
Mississauga I 127862 I 76.70 I 2126
Totals & Average 195940 77.52 2135
York Region
I I I
Aurora
I
10304 | 80.30
I
2126
Markham 48435 78.85 2208
Newmarket 18026 78.40 2153
Richmond Hill I 26986 I 82.73 I 2200
Vaughan 38610 79.93 2158
Whitchurch Stouf
I
3006 I 81.00
I
2198
Totals & Average
I
145367 I 79.95
I 2180
Ourham Region
Ajax 18995 78.58 2143
I ,
Newcastle I 8449 I 83.05 I 2164
Oshawa 43161 70.30 2009
I i 1
Pickering
I
23468 I 80.13
I
2193
Scugog
I
2068 I 74.90
I
2074
Whitby 20782 77.35 2050
Totals & Average 116923 75.87 2087
13
Submission to the Joint Study Committee
on Retail Electricity Service in Ontario 14
TABLE 7 (Centd)
CUSTOMER MONTHLY ENERGY BILLS -1992
h
Customer Residential General
1000 kWH 30000 kWH/100 kW
Toronto 218852 87.90 2723
Balance of Metro 426199 77.01 2181
Peel Region 195940 77.52 2135
York Region 145367 79.95 2180
Durham Region 146923 75.87 2087
Totals & Average 1103281 79.53 2270
Province 2655852 78.59 2111
b-
Note: Averages Are Weighted Based on Customers
I
September 28, 1995
Dr. Anne Golden
G.T. A. Task Force
393 University Avenue
Suite 2001
Toronto
r
Ontario
M5G 1 E6
Dear Dr. Golden:
RE: ELECTRIC POWER DISTRIBUTION WITHIN THE GREATER TORONTO AREA
We appreciate this opportunity to provide input on the rationalization of
electric power distribution within the Greater Toronto Area.
On March 1, 1995, the Aj ax, Pickering and Whitby Hydro-Electric
Commissions made a submission to the Joint Ontario Hydro-Municipal
Electric Association Study Committee on Retail Electricity Service in Ontario.
Our study was comprised of a statistical analysis of public electric
distribution utilities in Ontario and the U. S. A., to determine the optimum size
for economic efficiency, and operational effectiveness (a copy is enclosed
herewith).
1. OPTIMUM SIZE UTILITIES IN GTA
The results of our study indicate the optimum utility to be in the range of
25,000 to 50,000 customers. This represents a population base from
75,000 to 150,000 people.
The Pickering Hydro-Electric Commission submits that:
Electric power distribution should be rationalized in the Greater
Toronto Area, into utilities that have a 30 year growth potential
to attain 50,000 customers.
The benefits of attaining optimal size are many, such as:
lower rates
improved reliability -
billing and
administrative costs
due to load diversity;
less outage time due to more sophisticated
system control and trouble crew dispatch
lower unit costs due to economies
of scale
...../2
Dr. Anne Golden
2
G.T.A. Task Force
Re: Electric Power Distribution within the Greater Toronto Area
> emergency response -
> cust omer ser vi ce -
and engineering
>
safety
procurement
better after hours control room support.
higher skill matrix
more professionalism in accident prevention
greater purchasing power.
2. VIABILITY OF PICKERING HYDRO- ELECTRIC COMMISSION
The Town of Pickerings 30 year planning forecast is as follows:
I POPULATION I ELECTRIC CUSTOMERS
Current 75,000 25,000
2025 1 50,000 50,000
* This includes 50,000 in Provincially held Seaton Lands.
Over the next 30 years the Pickering Hydro-Electric Commission will continue to grow
and reap the benefits of optimum size over this ideal customer range, and t he
Commission submits that:
There are no major changes required in the local electric power
distribution structure, and that the Task Force be cautioned about
recommendations which would aggregate services into organizations that
become too big to maintain organizational effectiveness.
Should your task force have any questions with regard to our submission, or should
there be public hearings, we would welcome further participation.
Yours very truly,
James 1. Mason
Chair
Enol.
c. B. Taylor, Town of Pickering
A.P. Starck, Ajax Hydro
B, T. May, Whitby Hydro
J. Tearne, District 4 MEA
1. H. Jennings, MEA
TOWN OF AJAX
in the Regional Municipality of Durham.
65 Ha r wood Aven u e Sou t h
Aja x, On t a r io, Ca n a da LIS 2H9
Teleph on e (905) 683-4550
S eptember 29, 1995
Dr. Anne Golden
Chair
GTA Task Force
393 University Avenue
20th Floor -2001
Toronto, Ontario
M5G 1E6
Dear Dr. Golden:
Attached please find the Town of Ajax's submission to the Greater Toronto Area Task Force.
We believe that any changes to governance in the GTA should be based on a sound philosophical base
of democratic principles, and on the principle of serving our residents. We believe that statements of
economic benefit should be backed up by analysis Our investigation into economies of scale has raised
doubts that the taxpayer will save any money by creating larger governmental units. In fact, the
opposite appears to be the case -- larger governments cost the taxpayer more.
The Town of Ajax is firmly of the opinion that amalgamation is neither an acceptable, nor a
supportable outcome of GTA reform. The real issue is not one of structure but one of legislative
constraints and the appropriateness of funding activities such as education and welfare from the
property tax base.
Our other major concern is the GTA reform process. We believe that the governments of the GTA need
to be a part of the solution but they and their residents also need to be a part of the process. This
process should be done within each region and a reasonable timetable needs to be established to allow
public discussion to occur.
Our thoughts on these issues plus nine specific recommendations are contained in our submission. We
do not profess to have all of the answers, but we hope our submission contributes towards the solution.
Yours sincerely,
J ames Y. Wi t t y
Mayor
Attachment
Town of Ajax
Submission to the
Greater Toronto
Area Task Force
REPORT TO THE GREATER TORONTO TASK FORCE
The Greater Toronto Area Task Force was given a mandate to develop
an action plan to renew local government in the Greater Toronto
Area. In response to this, many local governments have made
submissions. Before the Council of The Town of Ajax offers its
opinions we would like to review some of the historical rationale
for creating local governments, to look at what the customer wants
(we are here to serve our community) and to look at some data
regarding economies of scale.
A Basis for Reform: Democratic Principles
Over 150 years ago municipal government was created in Ontario to
serve two key purposes: to provide a variety of local services and
to provide for elected Councils to represent and make decisions on
behalf of the local residents. As the years have passed the
pendulum of reform has swung from focusing on service delivery,
the efficient-expert-administrative role of government to the
political-representative-democratic role. It is the tension between
these two extremes which has kept local government dynamic and
responsive. The solution to our current problem does not lie in one
extreme or the other but in the balance between the two.
Participatory democracy is founded on the principle that the
average person can participate in, can debate and have input on the
issues and that they can become part of the system by running for
political office. This is the strength of a local government. It
is close to the people and allows them to participate directly in
issues that are important to them. It is also fair to say that the
explosion of demand from residents to the government for decisions
which are more numerous, varied, frequent and complex will
overwhelm larger governments. As the decision load increases we
have to widen the base of participation in order to keep
governments responsive and in order to keep them functioning.
We must also be careful not to erect barriers to participation and
to not make it more difficult for residents to run for office:
larger wards require more money to run for office and often lead
toward the desire for full time politicians which effectively bars
many people from running for office. Keeping governmental units
smaller will keep the communities manageable and keep participative
democracy alive.
The other aspect of local government that we must remember is the
strength of its diversity. Individual communities have
characteristics and personalities that are different from one
another. This gives people the opportunity to pick a community that
reflects their values and feels like home to them. Also it is the
friendly competition between the many local governments that leads
to the innovative breakthroughs which benefit everyone. The variety
of local municipalities with their distinct personalities is one of
the strengths of the GTA.
- 2 -
A Basis for Reform: Focus on the Customer
If we are to reinvent local government in the GTA then we should
focus on the customer and build a system to meet their needs. We
need to look at our residents, watch their behaviour, listen to
what they want and understand how they want to be treated.
The preferences of the customer have been changing as our society
goes through a transformation from a producer to a consumer society
(see table 1) . In the private sector where the customer has freedom
of choice, people are seeking greater variety, higher convenience,
virtually continuous service and seemingly endless choices. We
should recognize this shift in values and ask ourselves how can we
best design the government to serve these needs.
How has the private sector organized itself to deal with these new
customer values? We recognize that government is not a business
but we can learn from the experience of business. The private
sectors response to the societal transformation has been to keep
a small corporate umbrella which sets the large policies and
strategies and coordinates activities but then they have delegated
the authority and responsibility for implementation to smaller
business units which are closer to the customer. In other words
they have not created larger more centralized organizations but
smaller decentralized units.
There is another set of values which need to be taken into account
and that is the community values which are important to the
residents of Ajax. In the Town of Ajax over the past year we have
gone through a strategic planning exercise, a creative community
design process, and the production and publication of a 400 page
history book. The residents of Ajax clearly want that small town,
family oriented feel. Many of them moved from larger
municipalities to Ajax for these values. This is not to pass
judgement on those other municipalities as we know that there are
people who have left Ajax to go to the larger centres because of
the attractions that they offer. What we are reinforcing is the
fact that each community has a different personality, that there
are choices and that the customer is free to choose the community
that appeals to them.
The values that Ajax residents have expressed in relation to
governance are that their local government has to be accessible,
accountable and responsive.
3
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They want a local government which is accessible in that they like
knowing the members of Council and the senior staff and knowing
that they are able to talk to them about issues not only at Council
meetings but on the street or in a local store. They like to watch
the Council meetings on Monday evenings on television and then run
down to the Chambers to join in the debate (the Town Hall is that
close) . Last year the Town had 178 delegations, public meetings or
open houses where the public could discuss important issues
directly with Council (this number does not include our many
advisory committees, Council committees or our strong and varied
volunteer activities) .
They want a local government which is accountable in that they get
to vote directly for their Ward Councillor, their Regional
Councillor and the Mayor (three of the seven positions on Council).
The wards are small enough that the public know who they are voting
for and once elected they know who to contact. There is no place to
hide.
They want a local government which is responsive in that the
Council not only listens but they respond. The residents concerns
with new developments has led to the introduction of a creative
community design process. The Town has responded to concern about
taxes by freezing taxes for the last few years. Ajax has also
launched an innovative cost management program which will lower
costs without cutting services. Prior to the last election Council
voluntarily reduced the number of politicians sitting on Council.
If the public is not happy with a decision they let Council know
immediately. The public is part of the process and the members of
Council are part of the community.
The residents of Ajax are already concerned about the growth of
their Town (it will grow by 50% over the next 20 years) and they
want to take action to preserve the values and characteristics that
attracted them to this community in the first place.
A Basis for Reform: Economies of Scale
If the problem that is driving the current re-examination of the
GTA is the economic crisis, then we had better understand what is
creating the crisis.
The problem experienced by all three local governments, School
Boards, Regions and local municipalities is that the Province has
been legislating increasingly more expensive policies and
procedures, downloading responsibilities and reducing the per unit
funding that is required to maintain those services.
4
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The solutions to the problems should focus on the source of the
malady. Complex and expensive legislation, policies and procedures
should be reviewed. Are they relevant? Do they achieve the goals
that they were designed to address? Do they create more problems
than they resolve? Can we afford this? If the answer is no, they
should be changed.
If services are going to be downloaded then discussions have to
take place with the affected parties to determine if it is
possible, if it is logical, if it is affordable and if it is in the
best interests of the taxpayer. Then the how and when need to be
negotiated. The simple transference of the responsibility from one
level of government to the other does not solve the fiscal problem
for the taxpayer.
The reduction of provincial funding to the local governments has
created a lot of the financial crisis. In relative terms,
Provincial funding to Ajax has dropped from 14.8% of total Town
revenue to 5.8% over the past 14 years. The problem is even more
acute for school boards and the Regions which provide social
services and other provincially mandated services. The property tax
is being choked by a service that it was never designed to
accommodate. The funding issue needs to be rationalized so that
services are funded by the appropriate tax source.
The overall impact of these changes can be seen by looking at the
property tax bill. Increases in the property tax bill have been
driven by education and regions, not the lower tier municipalities
(see Table 2) . This fact is also illustrated in the shift of the
percentage of the property tax bill going to each of the services
(see Table 3) . Given this information it is obvious that the lower
tier municipalities are not the problem; therefore, the
restructuring of lower tier municipalities will not solve the
fundamental financial problem.
We recognize that there is a need to reduce government
expenditures. Over three-quarters of the Provinces program
payments go to health care, social services and education. If the
Province is to balance its budget these three areas must be
tackled. The Provinces problem cannot be solved by transferring
the problem downwards. Fundamental change has to occur and we do
recognize that municipalities have to be part of the solution.
Our innovative cost management program, which will reduce costs
without cutting services, is part of that solution.
In the debate about reinventing the GTA there has been a lot of
discussion about restructuring the two tier system of government.
There are quite a few single tier municipalities in the Province
which range in size from 4,000 to 300,000 population (see Table 4) .
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These single tier governments manage to deliver all of the local
government functions to the residents, so it is possible. Lower
tier municipalities do have the capability to handle more
responsibilities; however, these municipalities are also facing the
same fiscal problems as the those communities in two tiered
systems.
In the GTA the regions were created to deal with growth and to
facilitate service delivery which required expensive capital
infrastructure or to provide services over a large geographical
area. Given the growth that we will continue to face in the GTA
(Ajax is projected to grow by 50% to 97,000 people and the Region
of Durham by 80% to 759,000 by the year 2011), the Town of Ajax
sees the need to retain the Region and the two tiered system of
local government. We also need to retain the system of indirect
election to the Region. This insures that members of Regional
Council are accountable to their local Council and to the voters.
We believe that some improvements can and should be made to the
existing system but the review of responsibilities and proposed
changes should be determined by the members of each region.
The arguments for consolidating regions or amalgamating
municipalities is premised on the theory of economies of scale.
The economy of scale theory states that as size increases unit
costs go down. However the theory goes on to say that at some
point the curve bottoms out and from that point onwards as size
increases then costs go up. In other words, there are diseconomies
of scale. The theory also states that there are different cost
curves for different services therefore the best economy of scale
may well be different for each service the government provides.
Different economies of scale for different service - one size does
not fit all.
A comprehensive study of local government which was undertaken in
the United States commented that:
Capacity to provide desired public services in a
productive fashion is related to scale, but a single
relationship is not common to all services. Some
services require a large scale and some a modest scale
. . . how can we determine this scale at which services can
be provided with maximum capacity? Some have suggested
that the critical feature is whether the service is
consumed directly by the consumer, and thus labour
intensive, or whether it is indirectly consumed and
capital intensive. The most efficacious scale for
services consumed directly -- like police patrol, fire
protection and education -- small. In contrast more
capital intensive services like pollution control, water
and sewer services and public transportation are more
capably provided on a larger scale."
1
- 6 -
Economies of scale has been paid lip service as a justification for
an opinion but there has been little examination of factual data,
therefore we undertook the following analysis. The analysis is not
exhaustive but it is illuminating. There does not appear to be any
bottom line economies of scale.
Are larger regions less expensive on a unit cost basis? The
analysis of total operating costs per household (see Table 5) shows
that the unit cost increases as the size of the region increases.
In fact the largest region is 110% more expensive than the smallest
region. This difference could be due to diseconomies of scale. It
may be due to a difference in services offered or it may be due to
different levels of service. If the latter point is true then the
way to reduce the cost of government may be to lower the levels of
service in the more expensive regions.
Are there diseconomies of scale? Frank Stronach of Magna
International, the autoparts manufacturer notes that when any of
his factories grow to over 200 employees that the unit costs go up.
It seems that over that size the diseconomies of bureaucracy start
to kick in. Rather than expand the plant he opens another one. A
municipality with over 200 employees serves a population of
approximately 50,000 people.
There have been statements made that smaller municipalities should
be amalgamated. We do not understand how this will solve the
financial problem in Toronto.
What constitutes a small municipality? Of the 815 municipalities in
Ontario Ajax with a population of 60,000 is one of the largest. It
is in the top 5% . Compared to the rest of the province there are
no small municipalities in the GTA.
The unstated assumption is that there will be cost savings if
municipalities amalgamate? No financial data has been presented to
back up this opinion. Previous amalgamations in Ontario such as
Sarnia-Lambton or London-Westminster did not lower costs. In fact
costs went up for both communities despite financial injections
from the Province and provincially imposed limits to property tax
increases. Amalgamations of lower tier municipalities in the GTA
will not lower the cost to the taxpayer.
- 7 -
"A study of the 799 largest cities in the [United States]
compared the size of the populations with the size of the
bureaucracy, controlling for region and services. It
found evidence of diseconomy of scale among the cities
and concluded that wholesale consolidation or
enlargement of local government jurisdictions is unlikely
to achieve economy and efficiency in municipal service'"
2
The Basis for Reform
In searching for a solution to the fiscal crisis in the GTA we
remind you that the problem is not just about money, but it is also
about participative democracy.
The search for a solution should not
seek one to the exclusion of the other.
RECOMMENDATIONS
After reviewing the submissions from other municipalities and after
discussion of the issues, the Council of the Town of Ajax makes the
following recommendations:
1. ASSESSMENT/ PROPERTY TAX REFORM
Ajax Town Council endorses the need for assessment and
taxation reform; however,
such reform should be done to
standardize assessment within regions only. Toronto and Metro
should not attempt to resolve their assessment problems to the
detriment of ratepayers in Durham and Ajax.
2. RATI ONALI ZATI ON
The Town of Ajax agrees that the Province and local
governments need to review the relationship and
responsibilities of the various levels of government.
The
previous "disentanglement"
process was a step in the right
direction but, perhaps a more suitable description at this
time is the need to "rationalize"
the responsibilities and
associated financing of the local,
regional and provincial
levels of government in Ontario.
Ajax Town Council supports
the study and negotiation of an agreement between
municipalities and the Government of Ontario based on the
appropriate delivery and financing of government services.
8
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This agreement should be revenue neutral"! to taxpayers.
Service delivery at every level must be reviewed and changed
as necessary in order to ensure the following:
a) economies of scale are utilized to their fullest;
b) service delivery for the public is enhanced; and
c) the system is understandable so that the public can
swiftly and conveniently access the services they
need.
The study and negotiation should look at the broad spectrum of
government services and not be limited in its scope.
It is
imperative that such a study address the proper division of
responsibilities between lower and upper tier municipalities.
3 . PERMIS S IVE MUNICIPAL ACT
Ajax Town Council supports the proposal for an improved and
permissive Municipal Act which includes an enhanced range of
revenue generating options for municipalities.
4 . MUNI C I P AL S E R VI C E S / R E P R E S ENTATI O N/ B O U ND AR I E S
9
- 9 -
Town Council is also strongly opposed to the 1997 deadline for
implementation of potential reforms as this limited time
period is clearly insufficient to allow proper review and
discussion of the issues. The need for additional time is
supported by the time that would be necessary to adequately
undertake the parallel Provincial-Municipal rationalization
study and negotiations outlined in section 2 of this response.
5. SPECIAL PURPOSE BODIES
Ajax Town Council supports a
in order to provide greater
the provision of services.
review of Special Purpose Bodies
accountability and efficiency in
All SPBS should be reviewed to
determine whether elimination, amalgamation, municipal council
control or some alternate method of control is recommended to
improve service and accountability.
The present watershed/eco-system determination of Conservation
Authority boundaries appears to work well; however, provincial
involvement in Conservation Authority matters should be
reduced substantially as Conservation Authorities can provide
the full regulatory services presently duplicated by MNR and
MOEE staff.
This rationale could also be applied to several other areas
where there is provincial involvement in matters that can be
handled locally. A permissive Municipal Act would assist in
this area. This savings to the province would also become
evident through the Provincial-Municipal "rationalization"
process. This process may indicate that Childrens Aid
Societies should become the responsibility of the Province,
that Hydro Commissions could become municipal departments,
etc. Most importantly, study and discussion is necessary
before changes are made.
A key consideration is the understanding that the primary
funding body should have a controlling interest in the
decision-making body overseeing a particular service. This is
most obviously necessary with respect to Police Services
Boards and Library Boards. Again, these principles would be
central components of the rationalization process.
6. GTA GOVERNANCE
Ajax Town Council is opposed to any measure that would create
an additional level of government, of any shape or form,
within the GTA. This would include the proposed GTA Co-
ordinating Forum as outlined in the GTA Mayors Action Plan.
. . . 10
- 10 -
7 . EDUCATION REFORM
Ajax Town Council agrees that the present burden on the
property tax resulting from education funding is a significant
symptom in the illnesses facing local government in the GTA.
This is particularly evident in Metro Toronto.
Any review of
local government must include a review of the education system
but this should be done by the Board of Education.
They have
the knowledge and it is their responsibility.
8. UPPER/LOWER TIER RELATIONSHIP
Ajax Town
Council believes that the Regional level of
government is necessary to address local issues that can
benefit from the economies of scale; however, the present form
of Regional governments could be streamlined.
9 . S ERVICE PROVIS ION
Ajax Town Council believes that the Province of Ontario could
remove itself from the actual delivery of various services by
using the structures, administrations and facilities already
in place in municipal government. It is accepted fact that
municipalities are the level of government that is closest to
the public and provides the greatest ease of access.
While
the province would retain the control and direction over
provincial services,
delivery would be enhanced by using
municipalities as provincial agents. This arrangement would,
of course, be accompanied by appropriate cost-sharing
agreements.
1 Beth Walter Honadle & Arnold N. Hewitt, Editors, Perspectives on
Management Capacity Building" p.29
2
ibid. p.29
Transformation from a Producer to a Consumer Society
FROM
B
Low Variety: the people can have
any colour car they want, as long
as it is black.
B
Low Convenience: money available
from banks anytime you wanted as
long as it was between 10:00 a.m.
and 3:00 p.m. Monday thru Friday.
B
Limited Access to Service: you
could mail packages anywhere in the
world as long as it was with the
post office on Monday thru Friday
or Saturday morning.
B
Few Choices: you could watch
anything on TV as long as it was
on CBC or CTV or if you were
lucky ABC, CBS or NBC.
B
Great Variety: in 1958 you could buy
21 different makes of car, today you
can choose from over 500 models.
B
High Convenience: automatic teller
machines provide money anytime and
almost anyplace.
B
Virtually Continuous Service: the
service comes to you - UPS and
Fed Ex will pick-up at your office
24 hours/day.
B
Seemingly Endless Choices: we can
watch just about anything we want on
TV, anytime through cable, pay per
view and the world of 500 channels is
upon us.
S I NGLE TI E R MUNI CI PALI TI E S
Every City within the old Counties and Districts are separated with
the exception of Sarnia and Woodstock.
These are single tier
municipalities which have responsibility for all of the work done
by Regions/Counties plus the normal municipal duties.
The following Cities and their corresponding population are
separated:
London
Windsor
Thunder Bay
Guelph
Brantford
Sault Ste. Marie
Barrie
Peterborough
Kingston
North Bay
Cornwall
Timmins
Chatham
Belleville
St. Thomas
Stratford
Orillia
Owen Sound
Trenton
Pembroke
Elliot Lake
Separated Towns
Smith Falls
St. Marys
Gananoque
Prescott
320,099
193,657
113,562
89,257
81,074
78,399
71,413
66,949
55,939
55,165
46,802
45,692
39,815
34,954
29,758
27,563
26,072
20,399
16,404
13,445
12,387
9,001
5,493
4,973
3,999
I
Lindsay Argier
1341 Victoria Park Ave.
Toronto, Ont.
M4B 2L5
September 28, 1995
Attention:
The Golden Task Force Commission
Dear Sir/Madame:
I am not a resident of the borough of East York; however, I do
attend an East York school. I do not feel that the amalgamation of
the borough of East York with the city of Toronto is in the benefit
of East York. As a student I find it hard enough competing with
other students in the borough, but by joining with Toronto the
competition will just be tougher. Moreover, it will be more
difficult to get our opinions heard and our needs attended to. I
do not see any possible benefit in joining with the city. I can
only see it negatively affecting our academic program.
I have grandparents living in the borough and I love the community,
I find it much better than many of the areas in Toronto. The
people are friendly, the streets are clean and overall its just a
beautiful place to live.
I'm not saying the area will change but
it will have the identity and reputation it has been known for
through out the course of two hundred years stripped away. Please
reconsider amalgamating East York with the city of Toronto. Thank
you.
Sincerely,
i n d s a y A r
g i e r
ARTSVOTE
SUBMISSION TO THE
GREATER TORONTO AREA TASK FORCE
September 1995
ARTSVOTE SUBMISSION TO THE GREATER TORONTO AREA TASK FORCE
Introduction to ARTSVOTE
The formation of ARTSVOTE 94 in April of 1994 marked a watershed in political cultural
activism within the Toronto arts community. The ARTSVOTE Steering Committee
constituted itself with the primary goal of mobilizing the artist vote for the November
municipal elections in Toronto. Its larger mission was to give political voice to artists of all
disciplines in Toronto, become more engaged in municipal affairs on an ongoing basis and
in so doing, counteract threats to artistic freedom, government funding and the very
existence of the arts community.
ARTSVOTE 94 was able to unify, amplify and focus the political efforts of a diverse range
of artists and arts organizations. For the first time in a political campaign, attention to arts
issues was constantly brought to the forefront of the election. It is widely believed that the
coalition helped to elect Torontos Mayor and a significant number of City and Metro
Councillors to office, not by endorsing candidates, but by increasing the level of activism in
the arts community.
The momentum created by ARTSVOTE 94 made the continuation of a post-election
coalition inevitable. The Steering Committee changed its name to ARTSVOTE and
reworked the original mission to embrace its current goals and aspirations:
As a result of ARTSVOTEs current focus on Metros funding cuts and the possible
dismantling of Metro Toronto, it became increasingly clear to ARTSVOTE that it should
make a submission to the Greater Toronto Area Task Force.
ARTSVOTE feels it imperative to remind the Task Force of the enormous contribution that
the artistic community makes to the well-being of the GTA. A healthy artistic community
enhances the GTA economically and greatly improves the quality of life. It is important to
point out that the entire structure of Metros internationally renowned and vibrant arts
community is based on a two-tiered municipal funding base. The removal of one level of
this funding will create a funding crisis of such proportion that most cultural organizations
would not survive.
ARTSVOTE requests that the Task Force consider the economic and cultural benefits a
stable and vital arts community can provide the GTA. This will meet the Task Forces
objective to maintain the economic attractiveness of the core of the GTA and the
continuing confidence and competitiveness of the single most important economic and social
component of the region.
2
Background on the Arts Sector
The GTA is home to a wide range of professional artistic activity covering all the arts
disciplines. Internationally renowned artists, institutions and arts organizations have made
Toronto an attractive destination for the cultural tourist. Anchored by the concentration of
cultural resources in the City of Toronto, the GTA is an important continental and
international cultural centre. It is:
. the second largest theatre centre in North America, and the third largest in the
english-speaking world
. the third largest film and video production centre in North America
. ranked fourth of 343 metropolitan areas for its cultural amenities and services by
Places Rated Almanac.
The GTA arts sector is a system of creators, producers and distributors spread throughout
the region numbering approximately 180,000. It is a sector which represents a range of
needs and interests, from those of the emerging new voice of a solo artist to those of the
more established arts organizations. The community is interdependent within itself and with
the commercial cultural industries (such as film, publishing and commercial theatre). To
both the individual artist and the arts organization, art is a business.
The arts community currently receives operational and project funding from a variety of
local government sources. Many municipalities and cities, including Mississauga, Oakville,
Toronto, East York and North York directly subsidize the operation of arts activities in their
jurisdictions.
Metro Toronto is the only regional government with a granting programme for arts
organizations. These subsidies, which amounted to $6.6 million in 1995, are awarded
primarily to organizations who can demonstrate that their audiences are drawn from across
the Metro region and beyond. Table 1 (attached) demonstrates that the major regional
cultural institutions draw up to 50% of their audiences from outside of Metro Toronto.
The City of Toronto is the home base for the majority of artistic activity taking place in the
GTA. While Table 1 demonstrates that audiences from across the GTA and beyond attend
cultural events in Toronto, this is not a one way street. Toronto audiences attend cultural
events and festivals in other cities and municipalities. In addition, many arts organizations
have active outreach programmed through which artists and their work are seen in
communities across the GTA. These outreach programmed take the form of school tours,
public performances, public art programmed and festivals. 18% of the cultural events
funded by Metro in 1995 took place outside of Metros borders.
Bricks and mortar also play a part in the current picture of cultural activity in the GTA.
The GTA is home to numerous municipally and regionally operated arts facilities, such as:
. Markham Theatre (Town of Markham)
Oakville Galleries (Town of Oakville)
Burlington Arts Centre (City of Burlington)
Table 1
Place of Residence of Audience for
Major Regional Cultural Institutions
Canadian Stage Company
Robert McLaughlin Gallery (City of Oshawa)
. Art Gallery of Peel (Region of Peel)
OKeefe Centre (Metro Toronto)
. Mississauga Living Arts Centre (in construction)
These cultural centres, as with many of the cultural activities taking place in the City of
Toronto, are regional in nature since they draw upon the entire GTA and beyond for their
staff, programming and audiences. They frequently present the work of artists and arts
organizations based in other GTA communities.
The Value of the Arts to the Quality of Life
It has been said that the job of the artist is to hold the world together. Art touches the
lives of everyone, not only the confirmed enthusiast but the disenchanted and the
disadvantaged. It has the power to bring hope to the lives of the confined, the sick and the
marginal as well as to the most fortunate among us. As highly skilled specialists, cultural
ambassadors, social activists, tax payers, family members and citizens, artists contribute on
all fronts to the life of their communities.
A thriving arts community provides a sense of vitality and attracts both residents and visitors
to the streets in the evening. This makes the Toronto region a safe and liveable
environment and reduces policing costs. One of most critical issues facing the GTA is the
preservation of this vibrant core and the prevention of the downward spiral of decay seen in
so many other North American cities.
The recent Barnes Exhibit at the Art Gallery of Ontario has been heralded as one of the
most artistically and economically successful exhibitions to ever come to Toronto. In
awarding the exhibition to Toronto, rather than to other competing North American cities,
the Barnes Foundation made it clear that its decision was based not only upon the Gallery
itself, but upon Torontos vibrancy and status as a cultural centre.
Torontos lively cultural scene makes the region a desirable destination for visitors,
conventions and investment. While Metro Toronto is currently ranked the fifth best location
in the world for international business headquarters by a US investment location consultant,
such a designation is based in large part upon the regions cultural environment and quality
of life. If the latter suffers, the GTA will lose its competitive edge in attracting new
commercial interests into the area.
Economic Issues
Culture is an economic engine of the regions economy. It is a major employer, providing
6.4% of all jobs in Metropolitan Toronto (Stats Canada, 1993). The same year, the
indirect employment generated by the sector represented 9.4% of all the jobs in Metro
Toronto. This level of indirect employment reflects the spill-over effects of culture into the
service sector, specifically restaurants, transit and hotels.
When considered in the context of spending, the figures demonstrating the economic
importance of the arts are equally as compelling. A 1992 report to the City of Torontos
4
Economic Development Committee concluded that for every $1 in direct revenue to the arts
(ticket sales, entrance fees) there is a spin-off effect of $3 in ancillary spending. In 1993,
the economic impact of Torontos theatre community alone was $1.2 billion to the economy.
More recently, the Art Gallery of Ontarios aggressive marketing campaign geared to
residents and tourists, attracted 600,000 visitors, stimulating $137 million in goods and
services across Ontario. Cultural tourism is a major factor in Torontos economy. out of
town visitors to the AGO and other cultural events in Toronto spend $1 billion annually.
The cultural sector is a clean and environmentally friendly industry. The sector is not a
drain on municipal services and the typically low wages mean that most artists are heavy
users of public transit. Jobs in the cultural sector are inexpensive to create: Stats Canada
reports that it costs $20,000 to generate a job in the arts, versus $100,000 in light industry
and $200,000 in heavy industry.
Culture is a pillar of our regional infrastructure and must be treated with the same
seriousness and approach as other regional services such as roads, ambulances and police
services. The bricks and mortar element of the infrastructure must be considered given the
number of municipally owned and operated cultural facilities. Attendees at cultural events
use regional infrastructure - highways and transit - to reach their destination. In Metro
Toronto alone, 3 million transit rides were taken by visitors attending cultural events in
1994.
Conclusion
Urban designer Joe Berrigde, in explaining to visiting American planners why Toronto still
differs from its American counterparts, said: Cities are constructed more from imagination
than steel and concrete. The test of a great city is the quality of its prose, its painting, its
music, its theatre, its dance.
In its deliberations, the Task Force cannot ignore the issue of the quality of life and the
social values upon which the GTA is grounded. The arts are central to that discussion. The
GTA Task Force must incorporate into its findings an integrated vision for the arts, which
views cultural funding in the context of overall regional policy.
While ARTSVOTE does not wish to speculate on the appropriate governance structure for
the GTA, it is essential that local government reform recognize the fundamental importance
of the cultural sector to the future of the region as a whole. The Task Forces
recommendations must ensure a mechanism is in place to maintain current funding levels for
the arts. Such funding must be allocated based on an arms-length principle, free from
political interference.
To consumers of cultural services, political boundaries be they national, provincial or local
are largely irrelevant Rather they are attracted to a destination, an event, or an experience
with little regard to who built it, who maintains it and who operates it. GTA residents
attend arts events locally, but they also flock to downtown Toronto for their cultural
pursuits. Those who benefit from cultural services, both directly and indirectly, must
contribute appropriately. It cannot be left to the taxpayers of the City of Toronto to support
a cultural infrastructure which so clearly benefits the entire GTA.
5
ARTSVOTE Steering Committee:
Tim Jones, Co-chair, Buddies in Bad Times Theatre
Susan Serran, Co-Chair, Theatre Passe Muraille
Pat Bradley, Professional Association of Canadian Theatres
Jenny Ginder, Canadian Opera Company
Rose Jacobson, Toronto Theatre Alliance
Jane Marsland, Danny Grossman Dance Theatre
David Parsons, Canadian Music Centre
Douglas Perry, Independent Musician/Toronto Musicians Association
Sandra Tulloch, Theatre Ontario
Myles Warren, Dance Umbrella of Ontario
This submission has been endorsed by the following Arts Service Organizations:
Associated Designers of Canada
Association of Canadian Orchestras
Association of Canadian Publishers
Canadian Actors Equity Association
Canadian Artists Network: Black Artists in Action
Canadian Arts Presenters Association
Canadian Artists Representation Ontario
Canadian Association of Professional Dance Organizations
Canadian Conference for the Arts
Canadian Music Centre
Canadian Resource Centre
Dance Ontario
Dancer Transition Centre
Dance Umbrella of Ontario
League of Canadian Poets
Mercer Union Gallery
Ontario Choral Federation
Organization of Book Publishers of Ontario
Ontario Association of Art Galleries
Playwrights Union of Canada
Professional Association of Canadian Theatres
Professional Opera Companies of Canada
Theatre Ontario
The National Ballet School
Toronto Blues Society
Toronto Theatre Alliance
The Writers Union of Canada
Visual Arts Ontario
V Tape
Womens Art Resource Centre
Work Place Arts Office
For further information contact Jane Marsland (416) 531-8350 or Jenny Ginder (416) 363-6671.
September 25, 1995
6
Ms. Anne Golden
Chair
Greater Toronto Area Task Force
393 University Avenue
20th Floor - Suite
Toronto, Ontario
M5G 1E6
Dear Ms. Golden:
We are pleased to
2001
September 27, 1995
submit for your information and consideration a report from the Steering
Committee of ARTSVOTE, a broad-based coalition of arts organizations, artists and arts
professionals living and working in the Greater Toronto Area. ARTSVOTES primary objective
is to politicize the 115,000 people who are directly employed in the cultural sector in
Metropolitan Toronto and whose employment is directly linked to the continued government
funding at the municipal level...As the report recently prepared by Metro Toronto stresses, the
cultural sector generated a $6.4 billion return in Metropolitan Toronto from an investment of less
than $13 million in municipal grants.
We must point out that the current situation in the arts sector is critical. The substantial
investment in the infrastructure of the cultural sector is in jeopardy as government cuts in funding
are happening faster than other revenue sources can be found or developed.
The arts and culture sector contributes enormously to the economic, aesthetic, and spiritual well-
being of the citizens of the Greater Toronto Area. It is from this perspective that we have
prepared our submission to you. While we are aware of your very tight timeline to prepare your
final report, we would be very interested to be able to meet with you to discuss this submission.
THE ASSOCIATION OF CONSERVATION AUTHORITIES OF ONTARIO
August 24, 1 9 9 5
RESTRUCTURING RESOURCE MANAGEMENT IN ONTARIO
IMPLEMENTING-BLUEPRINT
EXECUTIVE SUMMARY
Ontario faces a crisis. In the natural resource/environment sector it has developed a
service delivery organization that has many overlaps and redundancies. The time has
come to rebuild this service delivery structure to rationalize service and reduce costs.
Ontarios Conservation Authorities proposed the adoption of a one window approach
entitled - Blueprint for Success where service delivery responsibilities would be
undertaken locally by community based agencies. They now have taken the Blueprint
concept further and shown how the new approach would work and how it can be
implemented.
One of the essential principles for successful natural resource management is the
watershed. This unit recognizes the interconnectedness of natural resources and the key
role that water plays in the ecosystem and the economy.
The new resource management approach is termed Community Based Watershed
Conservation (CBWC) and involves rationalization and migration of the Provincial service
delivery to local watershed organizations. In this approach the Province would establish
policy direction.
Policy implementation would be undertaken locally in a manner that
reduces public sector costs through productivity improvement, more involvement of
consumers of services in underwriting costs, and the elimination of services of lesser
importance.
CBWC wi l l create an effi ci ent system that hel ps i ndi vi dual s, communi ti es and
Municipalities manage their own natural resources. Conservation Authorities would
support community management with watershed information, advice and technical
services, coordinated regulatory services, and coordinated management of lands held in
the public trust.
Since the release of Blueprint CAs have gradually been assuming more service delivery
responsibilities. Review of pilot area projects clearly show that integrated local delivery
reduces costs and improves service. Implementation of CBWC across the Province would
result in major reductions in public expenditure.
RESTRUCTURING RESOURCE MANAGEMENT IN ONTARIO
IMPLEMENTING-BLUEPRINT
EXECUTIVE SUMMARY
Ontario faces a crisis. In the natural resource/environment sector it has developed a
service delivery organization that has many overlaps and redundancies. The time has
come to rebuild this service delivery structure to rationalize service and reduce costs.
Ontarios Conservation Authorities proposed the adoption of a one window approach
entitled - Blueprint for Success where service delivery responsibilities would be
undertaken locally by community based agencies. They now have taken the Blueprint
concept further and shown how the new approach would work and how it can be
implemented.
One of the essential principles for successful natural resource management is the
watershed. This unit recognizes the interconnectedness of natural resources and the key
role that water plays in the ecosystem and the economy.
The new resource management approach is termed Community Based Watershed
Conservation (CBWC) and involves rationalization and migration of the Provincial service
delivery to local watershed organizations. In this approach the Province would establish
policy direction.
Policy implementation would be undertaken locally in a manner that
reduces public sector costs through productivity improvement, more involvement of
consumers of services in underwriting costs, and the elimination of services of lesser
importance.
CBWC wi l l create an effi ci ent system that hel ps i ndi vi dual s, communi ti es and
Municipalities manage their own natural resources. Conservation Authorities would
support community management with watershed information, advice and technical
services, coordinated regulatory services, and coordinated management of lands held in
the public trust.
Since the release of Blueprint CAs have gradually been assuming more service delivery
responsibilities. Review of pilot area projects clearly show that integrated local delivery
reduces costs and improves service. Implementation of CBWC across the Province would
result in major reductions in public expenditure.
Community Based Resource Management Can:
B
Allow communities to have more control over how watershed resources are
managed;
Protect provincial interests without the need for costly direct Provincial involvement
in service delivery;
Save significant amounts of money through overlap removal, consolidation of
service delivery functions, elimination of non essential services, and utilization of
user help and pay processes;
Be implemented easily without legislation creation or amendment;
Deliver integrated services within a watershed context at the community level.
Conservation Authorities propose to undertake this transformation in a ordered fashion
through the 2-4-1 Plan. This implementation plan proposes that:
2 months be devoted to the design of transfer protocols;
4 Conservation Authorities will act as a prototypes to refine transfer operating
protocols and in;
1 year ail Conservation Authorities will commit to assuming the complete range of
service delivery responsibilities.
With prompt Provincial acceptance of CBWC the transition can begin January 1, 1996
and be completed by January 1,1997.
RESTRUCTURING RESOURCE MANAGEMENT IN ONTARIO
IMPLEMENTING - BLUEPRINT
1. INTRODUCTION
The natural resources of Ontario are the foundation of the Provinces social and
economic well-being. Every year natural resources contribute billions of dollars to the
Ontario economy and provide society with many essential services. The future
prosperity of the citizens of Ontario depends on the continuation of these economic,
environmental and social benefits.
While it is essential that the Provinces natural resources and environment are well
managed, Ontari o s current approach to management i s too expensi ve, too
complicated, too bureaucratic and too slow. Ontario faces a crisis brought about by
the following:
a lack of a coordinated public sector direction;
complicated and uncoordinated service delivery from too many agencies that
wastes money and confuses the public;
a confusing and complex regulatory system that delays approvals and
wastes both applicant and public money;
inadequate resource management in some areas, for example groundwater,
due to the lack of an integrated approach;
inadequate public/community input into decision making;
a service delivery structure and organization the public can no longer afford;
It is time to come to terms with these problems and design a resource management
structure that can meet Ontarios needs in the future at a price Ontario can afford.
Conservation Authorities have long recognized the problems that exist within the
current system. Working through the Association of Conservation Authorities of
Ontario (ACAO), we have developed a proposal and implementation plan that will
address the problems and ensure effective and efficient management of Ontarios
natural resources for the future.
RESTRUCTURING RESOURCE MANAGEMENT IN ONTARIO
IMPLEMENTING - BLUEPRINT
Page 1
August 24, 1995
2. BACKGROUND
2.1 What is Natural Resource Conservation?
Conservation is generally defined as the management of renewable natural resources
in a way that optimizes their utilization while ensuring the long term sustainability of
the resource. Depending on the situation, conservation can range from development
of a resource, protection of a sensitive resource, or restoration of a depleted resource.
Currently, responsibilities are distributed across several Provincial and local agencies
including Conservation Authorities (CAs), Ministry of Natural Resources (MNR),
Ministry of Environment and Energy (MOEE), Ministry of Agriculture and Food and
Rural Affairs (MAFRA), Ministry of Municipal Affairs (MMA) and Municipalities. This
fractured and duplicative distribution of responsibility is to a large extent the cause of
many of the current problems.
2.2 The Watershed Management Unit
One of the fundamental pri nci pl es that must be respected i s the i nherent
interconnectedness of all natural resources. The natural system functions as a unit or
ecosystem which is not amenable to arbitrary division either geographically or by
resource type. Attempting to manage natural resources either on the basis of political
administrative units, such as municipalities, or by categories, such as fisheries, does
not respect the integrated nature of the natural resource system, An integrated
management structure based on natural system units is required to successfully
ensure the long term sustainability of natural resources and to make appropriate
management decisions.
Water, whether groundwater or surface water, is an essential component, not only of
natural systems, but of economic and social systems. Natural resource features such
as fisheries, forests, and wetlands depend on water to exist. Ontario society depends
on water for industrial processes, agricultural production, water supply and waste
treatment. Sound management of water benefits both the natural system and the
economy.
RESTRUCTURING RESOURCE MANAGEMENT IN ONTARIO
IMPLEMENTING - BLUEPRINT
Page 2
August 24, 1995
While the existing agency responsibility structure has created numerous problems,
groundwater provides a graphic example. Recent federal studies reveal that high
percentages of wells are contaminated (Agriculture Canada, 1994). Ontario faces a
crisis of significant proportions in the management of groundwater resources brought
about by the inability of the current system to integrate all aspects of water
management.
It has long been recognized that watersheds are the logical management units for
integrating the management of the natural resources. The watershed unit was a
founding principle of Conservation Authorities 50 years ago and in recent years there
has been increased movement both nationally and internationally toward management
on a watershed basis. The Final Report of the Inquiry on Federal Water Policy
recognized the watershed as the natural unit for management.
It is logical, perhaps essential therefore, to base restructuring and integration of
natural resource conservation services on watershed units. As the only agencies
currently structured on a watershed basis, Conservation Authorities have a pivotal role
to play in the restructuring and delivery of natural resource conservation.
2.3 The Conservation Authority Initiative-Blueprint
In 1993, the Association of Conservation Authorities of Ontario (ACAO) submitted to
the government of the day a discussion paper titled Restructuring Resource
Management in Ontario - A Blueprint for Success (Blueprint). The purpose of this
document was to draw attention to the problems in natural resources management
and offer a proposal that provided a solution.
The basic premise of this report is that the fundamental problem is the multiplicity of
agencies that have a role in natural resource management and that the resulting
overlap and confusion between agency mandates and programs is wasting public
funds and delivering inadequate natural resource management. This agency/program
maze is best demonstrated by Figure 1.
The ACAO proposed that this situation could best be dealt with by redefining the roles
of the various agencies and developing an integrated natural resources management
delivery system with the watershed as the management unit. With this approach, the
provincial agencies would remove themselves from service delivery and focus on the
RESTRUCTURING RESOURCE MANAGEMENT IN ONTARIO
IMPLEMENTING - BLUEPRINT
Page 3
August 24, 1995
Activities
Agencies
Issues
Figure 1
broad strategic issues of policy, legislation, research and performance standards.
Natural resource management services would be integrated and delivered locally by
Conservation Authorities and Municipalities in consultation with local communities.
This integrated approach is depicted in Figure 2.
2.4 Reaction to Blueprint
While Blueprint for Success was circulated widely and stimulated extensive
discussion and comment, the ACAO was unable to garner action on the proposal at
the Provincial Government level.
The Conservation Authorities have generated significant local interest in restructuring
resource conservation. The ACAO received responses from 198 (40%) of o u r
member Municipalities, providing extensive support and constructive comments.
Responses were also received from 27 community and interest groups, also providing
significant support and encouragement.
The Association of Municipalities of Ontario (AMO) released a report titled Municipal
Priorities in Restructuring
Resource Management: AMOS Response to the Proposals
of the Association of Conservation Authorities of Ontario, which supported, in
principle, the ACAOS proposal and stated that AMO commends ACAO for initiating
discussion to reform the delivery structure of resource conservation programs.
In their report, AMO raised a number of concerns and questions. AMOS primary
concerns relate to maintaining municipal decision making control over land use
planning, avoiding any negative financial impact on municipalities and improving the
accountability of Conservation Authorities.
ACAO and AMO are meeting and have
made considerable progress in resolving these matters.
3.0 DEVELOPING THE NEW APPROACH
3.1 Principles
Review of the ACAOS initial proposal, the responses, as well as a variety of other
information sources suggests that there is general agreement on both the need for
change and the basic characteristics of a new natural resource conservation system.
RESTRUCTURING RESOURCE MANAGEMENT IN ONTARIO
IMPLEMENTING - BLUEPRINT
Page 4
August 24, 1995
Issues
Agencies
Activities
Figure 2
It would appear that consensus can be achieved if the new system is based on the
following five fundamental principles:
1.
2.
3.
4,
5.
integration of service delivery across the broad spectrum of natural resource
and environmental services;
Local service delivery with enhanced community control and responsibility;
A strategic Provincial role that provides policy direction and performance
standards for service delivery;
Delivery of services on a cost effective basis with increased financial self
reliance through user fees, community and private sector participation, and
an overall reduction in public funding;
Resource management units based on watersheds that are configured to
balance the need for community identity with the need for effective and
efficient program delivery.
With these principles as a basis, the following is a detailed description of a proposed
natural resource management approach which we have called Community Based
Watershed Conservation.
3.2 Community Based Watershed Conservation (CBWC)
B
During the past forty years there have been numerous studies and volumes of reports
produced at great cost and effort. Yet, on the whole, municipal government reform has only
. .
minimally been implemented. The history of municipal government reform in Ontario has
been one provincial commitments and little action.
Municipalities are governed by provincial legislation written for another time and set of
social, political and economic conditions; the legislation is antiquated and does not address
issues that municipalities have to deal with today.
Municipalities are involved in activities not envisioned in the Baldwin Act of 1849 which
continues to be the basis for the Municipal Act, the main piece of legislation governing
municipal corporations today. For example, economic development, international relations,
strategic planning, sustainable development, housing and environmental regulation were
hardly anticipated as areas of municipal responsibility 150 years ago.
Senior levels of government state they are committed to enhancing public input and
involvement in government decision-making. Yet at the same time they are doing things to
reduce the ability of citizens to speak through their locally-elected and democratic
institutions, that is, local governments. Through many health and social services reforms
(e.g. long-term care reform) provincially-appointed special purpose bodies are being
proposed or have already been given the responsibility to speak on behalf of a vast number
of citizens yet they have no accountability to their communities. At the same, the local
people communities directly elect every three years have less and less ability to represent
their constituents on these important issues.
In 1994, AMO produced two reports on local government reform. The first, a background
research paper, Locaal Governance in the Future, documented trends and issues (economic,
political, etc.) which have significant implications for the future of local government in
Ontario. The second, a policy direction paper, Ontario Charter: A Proposed Bill of Rights for
Local Government, proposed the adoption of a Municipal Charter within which the
principles, values and rights of local governments would be enshrined. It also established a
municipal agenda for reform which, if endorsed by the Province, would be implemented
through provincial legislation, policies, programs and practices.
The agenda for reform recommended in the Ontario Charter included four main areas:
B
The establishment of a legal framework to embody the principles of local autonomy,
municipal access to provincial decision-making and local self-government.
B
The creation of permissive municipal legislation primarily through the reformulation
of the Municipal Act.
B
The reform of the provincial-municipal relationship through the clear delineation of
roles and responsibilities and the establishment of a formal structure for the
provincial-municipal partnership.
B
The re-engineering of government operations through a shift from top-down
bureaucratic approaches to a new regime which empowers citizens and local
governments to identify innovative, effective and efficient methods of providing public
services in their communities.
3
Better Government, Lower Cost
Implementation
The New Municipal Mandate
Recommendations
B The Association distributed a copy of the Ontario Charter to municipalities, the Province and
other groups with a request for their input and response by the end of 1994.
B At the 1994 AMO Annual Conference, all three Ontario provincial party leaders debated
the Ontario Charter.
. Mike Harris, Leader of the Progressive Conservative Party, supported AMOS call for
fundamental reform through a new Municipal Act. He stated that he is committed to sitting
down with municipalities to discuss ways of reducing government entanglement and
bureaucracy with an eye to eliminating waste and duplication as well as unfair downloading
by the province.
B Lyn McLeod Leader of the Liberal Party, stated that we have to revitalize the relationship
between the provincial and municipal government; the province has to begin treating
municipalities as partners not as servants, as co-decision-makers, not as some kind of
regional office. She stated that she supports the principles in the charter proposal and agrees
that we need to enshrine the principle of local decision-making. She committed to the
following: immediately after taking office, a Liberal Government will begin discussions on a
municipal charter with a goal of signing it by the end of their first year; within a year of
taking office, will put forward a draft Municipal Act to eliminate unnecessary administration
and regulatory overload; and will begin immediately to identify, within the first 18 months,
which areas of responsibility should be untangled and in what priority.
. Bob Rae, Leader of the New Democratic Party stated that he does not intend to call a
conference on the provincial-municipal constitutional relationship and that he does not
support broad constitutional solutions such as the development of a charter. He supported
looking at practical solutions to problems to address the broad consensus as to what needs
to be done: operating costs have to be brought under control provincially and municipally.
B Minister of Municipal Affairs, Ed Philip, stated that we need to break the issues down into
smaller, manageable segments for which we can find win-win solutions and that he is
interested in working with AMO and the municipal sector to resolve the practical problems
put forward in the charter document.
4
Better Government, Lower Cost Implementation
The New Municipal Mandate Recommendations
Fast Facts
B There are 815 municipal corporations in Ontario.
B Together, the provincial and municipal governments in Ontario spend over $60 billion
dollars annually ($50 billion of this is provincial spending). If reforms could save the tax
payers of Ontario just 1% of this total provincial-municipal expenditure, then this would
mean a reduction of $600 million dollars in government spending! How?
through a better delineation of provincial-municipal roles and responsibilities
by eliminating the existing duplication in the provision of services
by streamlining decision-making
.
by eliminating costly special purpose bodies
.
by reducing the amount of bureaucratic red-tape that exists because of the existing
paternalistic provincial-municipal relationship
by having all ministries finally move into the information age and permit
municipalities to use electronic filing of information
.
by reducing the level of day-to-day supervision of local governments by recognizing
that municipalities are already the most open and accessible order of government and
dont need provincial bureaucrats looking over their shoulders
B Ontario is lagging behind other jurisdictions in Canada and internationally in the
implementation of major local government reform initiatives. Successive Ontario provincial
governments during the last twenty years have not taken a leadership role in this regard.
Examples of major reforms elsewhere:
.
Alberta: After over 120 years of having municipal legislation reflect the notion of
children of the province, local government will be treated as part of the system of
government in Canada with the realization that local government has grown-up. The
Alberta government has stated that its new Municipal Act will prepare Municipal
Government for the 21st centary.
.
New Zealand: Major government reforms have involved the establishment of a set of
statutory purposes of local government, which state, for example, that local
governments are to provide recognition of the existence of different communities in
New Zealand; recognition of the identities and values of those communities; and the
scope for communities to make choices between different kinds of local public
facilities and services.
5
Better Government, Lower Cost Implementation
The New Municipal Mandate Recommendations
LEGISLATE
Starting with a new Municipal Act, enact less restrictive and
more simplified legislation that allows a municipality to do
more with less. This would represent a major step toward
more responsive and less costly municipal government
THE NEW MUNICIPAL MANDATE
Better Government, Lower Cost Implementation
The New Municipal Mandate Recommendations
Heres how... Replace the Municipal Act with a new simplified Act which allows a
municipality to take any action needed to carry out the purposes of municipal
government, unless specifically prohibited by the Act.
B
The new legislation should adhere to the principle that municipal
governments shall have a general right to act on their own initiative
with regard to any matter which is not exclusively assigned to any other
government or specifically excluded from the competence of municipal
government.
B
During the course of legislative reform, all other existing legislation
governing municipalities should adhere to this principle.
B
Legislation regulating municipal government should be written in such a
fashion as to permit the greatest amount of municipal discretion in the
performance of the responsibility while achieving provincial goals.
.
Provincial legislation should set out provincial objectives with the
administration of the legislation at local discretion.
Backgrounder
B
B
B
B
B
The Provincial-Municipal Task Force, better known as the Pilkey Task Force, was struck in
accordance with Section 5.1 of the Municipal Sector Framework Agreement under the
Social Contract. It was directed to examine provincial programs, policies, legislation and
regulations affecting local government with a view to eliminating duplication and overlap.
Ultimately, the goal was to recommend changes that would help reduce provincial and local
governments costs. It was comprised of both provincial and municipal representatives and
chaired by the Honorable Allan Pilkey, Minister without Portfolio.
The Task Force released its report in September 1994. One of the reports key
recommendations was that the Municipal Act should be reviewed and reformed.
AMO has argued during the past several years that new approaches to governing and
delivering services are needed to address financial and political demands, but that
municipalities are constrained by prescriptive legislation from doing things innovatively and
differently.
AMO has recommended that Ontario needs an approach like that being adopted in Alberta
which says that a municipality can do anything the municipality needs to do to carry out the
purposes of municipal government unless the ability to do so is limited by legislation.
Instead, municipalities in Ontario must continue to look through the telephone-directory
thick Municipal Act for the words telling the municipality what it can do and if something is
not explicitly stated then the municipality is not empowered to do it. The Alberta approach
is simpler, provides for greater flexibility, and allows for innovation.
A good example of how the existing Municipal Act is overly prescriptive are the
requirements for municipalities to provide notice of a pending or completed action. The Act
prescribes how the information is to be conveyed (by posting and newspaper) and does not
recognize new or emerging communication technologies or the circumstances of the notice
or a municipalitys own needs assessment (e.g. municipalities are sometimes required to post
a notice where no one lives). Another example is in the area of building inspections where
municipalities are required to send a litany of different inspectors to investigate compliance
with building, fire and plumbing codes, property standards, zoning, etc. as opposed to being
able to assign several or all of these inspection responsibilities to one municipal official.
9
Better Government, Lower Cost Implementation
The New Municipal Mandate -Recommendations
B The Municipal Act or in some cases legislation specific to a municipality, also prescribes the
composition of a council. If a municipality wants to reduce the size of its council, then it
must apply for an amendment to the Municipal Act or apply for special legislation. Both
methods are time consuming and expensive and dont allow communities, within certain
principles and without the lengthy provincial legislative process, to make the decision to
change the size and composition of their councils, or consider boundary changes and
amalgamations.
. There are a number of problems with the way the legislation regulates the municipal sector.
It is written as a single code and all councils and local boards, regardless of their abilities or
sophistication must conform whether or not the code is appropriate to them or to the issue
which they are addressing.
10
Better Government, Lower Cost
Implementation
The New Municipal Mandate
Recommendations
DELINEATE
Discontinue duplication of effort and responsibilities in the
provincial and municipal provision of services by getting rid of
overly prescriptive and complicated rules, regulations and
redtape. This will lead to streamlined and less costly provincial
and municipal government.
Define municipal responsibilities clearly by untangling
provincial and municipal government roles so that government
is understandable and there is less overlap between provincial
and municipal jurisdictions.
Better Government, Lower Cost
Implementation
The New Municipa1 Mandate
Recommendations
Heres how... Since September 1994 the Provincial government has had in its possession 123
recommendations from the Pilkey Task Force, a group of provincial and
municipal representatives who spent a year identifying duplication, overlap and
wastefulness in the provincial-municipal delivery of services. Implementing the
Pilkey Task Force recommendations would help streamline and simplify the
delivery of government services and save the taxpayer an estimated $68
million.
B
The provincial government has at its fingertips solid recommendations
to take results-oriented action to reduce duplication in the public
sector.
B
As many of the recommendations require legislative amendments,
municipalities are powerless to make the necessary changes on their
own.
B
With calls for the elimination of duplication and overlap at both the
provincial and local government level increasing and the public
demand for more efficient use of tax dollars, the governments failure
to act on this valuable source of solutions is unacceptable. This is
compounded by the dire pronouncements on the state of Provincial
finances.
The confusion increases in view of the recent provincial endeavors
with respect to addressing the need for local government reform in the
Greater Toronto Area and eliminating the duplication within the
various layers of government in that part of the province.
Given the potential of these recommendations to help both levels of
government work better, the Pilkey Report should receive a high
profile, greater distribution and priority status with the provincial
government.
Backgrounder
B The combined effect of the Social Contract and the Expenditure Control Plan was to
remove $390 million from municipal revenues, a reduction of 22% in provincial transfers.
The provisions of the Social Contract Act allowed municipalities to cope with the reductions
in the short term by freezing salaries, suspending collective bargaining and requiring
employees to take days off without pay. It was recognized that the longer-term impacts of
the reductions needed broader solutions, and the elimination of duplication and overlap in
the delivery of services was identified as part of the solution.
B Section 5.1 of Municipal Sector Memorandum of Understanding on the Social Contract
established a provincial-municipal task force to identify those areas where duplication and
overlap exist in provincial legislation affecting municipalities. The Task Force was to
recommend ways by which the duplication could be eliminated to generate increased
revenues for municipalities or enable them to realize savings. Specifically, the Task Force
was asked to review the following:
a) existing regulations as they affect municipalities;
b) the possibility of replacing provincial staff with the municipal auditor for the purpose
of regulations;
13
Better Government Lower Cost Implementation
The New Municipal Mandate Recommendations
B
B
B
c) development of a permissive provincial legislative framework to allow achievement of
a greater level of municipal efficiency;
d) a moratorium on the creation of new special purpose bodies or expanding the
mandate of existing ones operating in the municipal sector. The Government agrees
to pursue the integration of municipally funded local special purpose bodies, with
local government units as part of the process of rationalizing service delivery;
e) the environmental processes imposed on municipalities. Special attention will be
given to measures that can reduce the time required for the environmental
assessment process;
f)
opportunities for user pay for municipal services;
g)
reimbursement for services provided by the municipality on behalf of the Province
(e.g. vital statistics registry) and;
h) other issues as agreed upon by the government parties.
Comprised of both provincial and municipal representatives and chaired by the Honorable
Allan Pilkey, Minister without Portfolio, the Task Force received more than 80 submissions
from municipalities, ministries and associations.
The final report of the Task Force, released in September of 1994, contained over 120
comprehensive recommendations addressing provincial-municipal relationships and
functions.
Combined Provincial and municipal savings from the implementation of the reports
recommendations has been estimated to be in the range
-
of $68 million. Administrative
efficiencies realized through these changes would bring the benefit of more efficient delivery
of existing services provided by both levels of government.
Fast Facts
Task Force Recommendations include:
B
B
B
.
B
.
.
B
.
.
Principles for guiding provincial-municipal legislatio~ creating a more permissive legislative
environment and giving municipalities greater discretion in meeting their responsibilities.
More clarity and efficiency in municipal structure and responsibilities.
Changes to provincial-municipal financial arrangements, including providing greater
municipal flexibility within identified spending areas and requiring timely notification of
transfer payments.
Streamlining and improving provincial reporting requirements to allow electronic filing of
information.
Changes to municipal revenue-raising abilities, such as giving municipalities the ability to
require mandatory water conservation measures.
Legislative amendments geared toward improving tax collection practices.
Proclaimingg a moratorium on the creation of new special purpose bodies.
Eliminating duplication of service delivery in areas such as building and fire inspections,
safety inspections and fire services.
Integrating approval processes, such as planning and environmental approvals.
14
Better Government Lower Cost Implementation
The New Municipa1 Mandate Recommendations
REJUVENATE
Bring about fundamental
municipal financial reform through
changes to current municipal revenue sources and funding
responsibilities for public services to ensure more accountable
and equitable funding responsibilities Improve financial
accountability by prohibiting the transfer or mandating of new
responsibilities to municipalities without a corresponding
transfer of funding to compensate for additional costs,
Allowing one government to pass its fiscal problems on to
another does not lead to lower costs, nor does it recognize
that there is only one taxpayer.
THE NEW MUNICIPAL MANDATE
Better Government, Lower Cost
Implementation
The New Municipal Mandate
Recommendations
Heres how... Begin fundamental municipal financial reform by removing education and
welfare costs from the property tax base.
B
Reform is imperative to ensure that municipal governments have
adequate financial resources distinct from those of other levels of
government and sufficient to enable them to keep pace with their
responsibilities.
B
Financial accountability must be restored by clearly delineating
municipal financial resources and responsibilities and putting an end to
provincial crowding and intrusions into the municipal property tax
base.
B
The reform of funding arrangements should be based on the principle
that income redistributive services should be primarily funded from the
income tax base, and not from the more regressive property tax base.
The time for study is over; the time for action has come. Discussions
should immediately commence on reform of the provincial-municipal
financial relationship, however, the following two reforms should be
given immediate priority for implementation:
- Social assistance allowances and benefits should be 100% funded by
senior governments. Report after report has recommended that the
property-tax base is ill-suited to fund an income redistributive program
such as welfare.
- Elementary and secondary school education costs should be fully
funded by the provincial government.
B
Both recommendations are based on the consideration that education
and social assistance contribute to the general advancement and well-
being of society. It is inappropriate to finance these costs using property
tax revenues as this type of expenditure bears no direct relationship to
the value of property. Furthermore, costs have risen dramatically over
the past years in both of these areas, placing undue pressure on the
limited municipal tax base.
Backgrounder
. The fiscal constraints imposed by the recession, the Social Contract, the Expenditure
Control Plan and numerous other direct and indirect impacts (such as provincial budget
decisions) of the past decade have highlighted the dire need for municipal fiscal reform. In
an environment of severe fiscal constrain what had become apparent to some became
obvious to all: the old solutions of more money and new programs were no longer possible.
B As the late 1980s progressed and the 1990s advanced studies, commissions and common
observation brought home the reality that if municipalities were to have the ability to meet
the demands of delivering quality services and value to the taxpayer, changes had to be
made.
B The Hopcroft Report, the Disentanglement Exercise, the Fair Tax Commission, the Ontario
Charter; all identified serious concerns with the inappropriate demands on the property tax
base. These reports all identified education and social assistance funding as the two most
important areas requiring reform.
17
Better Government, Lower Cost Implementation
The New Municipal Mandate Recommendations
On Social Assistance Funding
B AMO has been working on social assistance reform since the 1970s. Through all of the
various reform initiatives, the Association has recommended that social assistance
allowances and benefits should be funded by senior levels of government. The Association
reiterated this position most recently in its response to the federal governments discussion
paper on social security reform
. Since the mid-1980s, numerous government commissions and advisory committees have
recommended that welfare benefits and allowances should be 100% funded by the provincial
and federal governments (Report of the Social Assistance Advisory Committee (SARC),
Report of the Provincial-Municipal Social Services Review (PMSSR), Advisory Group on
Social Assistance Reform, Advisory Committee to the Minister of Municipal Affairs on the
Provincial-Municipal Financial Relationship, etc.). The NDP Government has supported this
transfer of funding responsibility.
B The federal government is currently conducting its review of Canadas social security
programs. In the next year, the Federal government is expected to announce significant
changes to social security programs and funding arrangements, including the Canada
Assistance Plan which establishes federal-provincial funding arrangements for welfare
programs.
B In 1991, AMO and the Provincial government agreed to a process for disentangling the
provincial-municipal financial relationship. A central agreement was that the costs of welfare
allowances and benefits should be transferred to the provincial level, in exchange for
municipalities assuming provincial costs in other program areas. In early 1993, a provincial-
municipal steering committee of municipal politicians and provincial cabinet ministers
reached a draft phase one agreement which was based on the principle of fiscal neutrality.
The Association consulted on the agreement with its members, and the AMO Board of
Directors, at its April 23, 1993 meeting, considered the agreement. On that day, the
Governrment, unilaterally announced a reduction in transfers to municipalities of $450
million dollars (under the Expenditure Control Plan and Social Contract). The
Governments decision to reduce transfers outside of the disentanglement discussions
seriously undermined the integrity of the process, and therefore the Association did not
support the phase one agreement. However, through its resolution on the disentanglement
draft agreement, the Association continued to express its support for removing the funding
of social assistance from the property tax base.
B During 1994, another round of provincial-municipal discussions on social assistance reform
took place. Again, it was agreed that the Province should assume 100% of the costs of
welfare allowances and benefits. However, while this was under way, the Federal
government announced its intentions to review and overhaul Canadas social security
programs. In light of this, the Province ceased its discussions on social assistance reform.
B The Board of Trade of Metropolitan Toronto recently recommended in its report, Killing the
Golden Goose, that all welfare spending should come from the provincial tax base.
On Education Finance
B Removal of education funding from the property-tax base has been a long held position of
the Association. AMO has historically taken the view that, since the benefits of a good
education system are not directly related to property but extend throughout the province and
the nation, education costs should be entirely financed from forms of tax revenue other than
the property tax.
18
Better Government, Lower Cost
Implementation
The New Municipal Mandate
Recommendations
B In 1987, the Association endorsed a resolution which requested that the provincial
government assume complete responsibility for funding education services in the province of
Ontario. The reasons for this resolution were that property taxes had escalated tremendously
since the inception of the larger unit school boards, the education system is for the
betterment of all society, and the costs account for over one-half of the property tax bill yet
have has no direct relationship to the worth of the property.
B In its 1988 report, Education Funding in Ontario, AMO requested that the government
determine a means for removing all education costs from the property tax base. This
sentiment was expressed in the Associations 1988 Pre-Budget submission.
B In the 1991 response to the Hopcroft Report, the 1994 response to the recommendations of
the Fair Tax Commission, and the 1995 Pre-Budget submission, the Association reiterated
its support for the removal of education from the property tax base.
Fast Facts
on Social Assistance
B In 1993-94, Municipal and First Nations social assistance costs for allowances and benefits
(program costs) were $466 million. Based on a 85%(provincial) -15% (municipal) funding
formula, total provincial social assistance costs were $2.6 billion. Provincial FBA program
costs were approximately $3.4 billion (Source: Ministry of Community and Social Services).
on Education Financing
B More than half of all property taxes (55%) are directed toward education funding.
B Ontario spent $14.5 billion on education in 1992.
B The property taxis an extremely regressive form of taxation; there is very little relationship
between ability to pay and the level of the tax. In fact, the Fair Tax Commission reported
that its studies showed that a poll tax (a flat amount per adult) on income tax filers is
almost as well related to ability to pay as a market value-based property tax (Fair Taxation
in a Changing World: Highlights, Page 81).
B The percentage of elementary and secondary education costs funded from property taxes has
climbed from about 42910 in 1970 to 60% in 1992 (Fair Taxation in a Changing World:
Highlights, Page 85).
19
Better Government, Lower Cost
Implementation
The New Municipal Mandate
Recommendations
Heres how... Conduct a comprehensive review of the assessment function in Ontario.
B
Changes to existing funding responsibilities for the assessment function
should not take place outside of the context of a broader review.
B
The Province should therefore immediately repeal its unilateral decision
to charge for supplementary assessments.
Backgrounder
B
B
B
B
B
In 1969, the property assessment function was transferred in a two-stage process from
Ontarios municipalities to the Province of Ontario. The Province assumed the
administration of the assessment function in Northern Ontario in 1969, and the rest of the
province in 1970.
The Province assumed the delivery of this service from municipalities in order to eliminate
the variations in practice and application of property assessment across municipalities.
The underlying rationale for the provincial takeover was rooted in variations and
inequalities in local practice. Municipal inequalities in property assessment resulted in
corresponding inequities in the distribution of provincial grants to municipalities.
The provincial takeover of the assessment function resulted in a substantial increase in
municipal revenue and a corresponding reduction in provincial grants: in 1970, 1.75 million
properties were listed on municipal assessment rolls; after the provincial review of these
rolls a total of 2.6 million properties were placed on the assessment roll in 1973.
In the ensuing years, questions as to where responsibility for this function should rest
remained. In its 1990 response to Bill 156, An Act to Establish the Property Assessment
Corporation, AMO provides the following chronology:
Once the re-assessment of real property has been completed by the provincial
assessment division, serious considerations will be given to the proposal of returningg the
assessment function to municipalities (Epp, 1985, p.78).
Arguments in favour of municipal administration of property assessment emphasize that
the devolution of assessment practices to the municipal sector underscores municipal
autonomy. However, province-wide uniform property assessment practices, a split
between the function of assessment and tax collection and smaller municipalities
possible lack of resources to undertake the assessment function strongly favour locating
property assessment with the provincial government.
This support for provincial responsibility for assessment was also stated in the 1985 AMO
response to the provincial paper, Taxing Matter - an assessment of the practice of property
taxation in Ontario (1985).
By 1993, a new twist occurred in the context of the disentanglement discussions. Under the
Phase One Draft Agreement, it was suggested that property assessment charges would be
recovered from municipalities, and that a compensatory trade-off value would be attached.
The introduction of the Social Contract and Expenditure Control Plan caused the collapse
of the disentanglement talks, and municipalities considered the matter to be closed until the
1994 introduction of fees for supplementary assessments.
This review of the recent history of responsibility for property assessment in Ontario reveals
a nearly completed circle of events. On July 1, 1969, the property assessment function was
transferred from municipalities to the Province of Ontario. On July 15, 1994, almost exactly
25 years later, the Province took the first step toward completing that circle by beginning the
transfer of financial responsibility for the assessment function back to municipalities with the
introduction of fees for supplementary assessments.
21
Better Government, Lower Cost Implementation
The New Municipal Mandate Recommendations
Heres how... Incorporate a provincial commitment against downloading in the proposed
Municipal Partnership Agreement.
B
Municipalities should have legislative protection against the Province
acting unilaterally without the necessity of municipal cooperation and
agreement.
The Province should make a commitment that any transfer of new
responsibilities will be accompanied by an allocation of the financial
resources required for their provision.
Backgrounder
B The Provincial government has repeatedly expressed its concerns about the potential for
decreased Federal government funding. Those concerns are very real, and AMO has
supported the Provinces commitment to protecting its revenues. However, the Association
has pressured the Province for the same respect to municipal government by making a
commitment that it will not download any further costs or responsibilities to municipal
government.
B In 1994, the Province boasted no new taxes.
Several months later municipalities found
themselves the arbitrary recipients of a new $19 million charge for supplementary
assessments.
B In 1993, the Province decided to broaden the retail sales tax base involving extensions to
insurance premiums, parking (both metered and commercial lots) and soil, clay gravel, sand
and unfinished stone. These changes were made without prior consultation and resulted in
an estimated impact of over $70 million.
B In addition to these relatively direct impacts, municipalities are increasingly required to fund
provincially mandated programs from existing revenues. The provinces 3-Rs regulations
mandating curbside recycling programs is one recent example. AMO had argued against the
mandating of this program until such time as a funding solution was reached.
Fast Facts
B Recently, at AMOs Rural Section (ROMA) Conference in February 1995, Liberal Leader
Lyn McLeod stated that We would not cut programs midstream or implement new fees
unexpectedly - as the NDP government did with supplementary assessments. And we would
not implement any new program requirements without funding. Progressive Conservative
Leader Mike Harris stated that he is committed to A New Municipal Act which will stop
down-loading and entrench in legislation a new era of co-operation between the provincial
and municipal levels of government.
B In 1989 the Provincial government passed on the responsibility for court security to
municipalities but did not provide any additional financing. Municipal costs ranged from
$200,000 for a small municipality to about $7 million for the largest.
B The provincial and municipal fiscal years are different; the former being April 1st to March
31st and the latter January 1st to December 31st. Consequently, municipalities have often
set their own budgets and mill rates when the provincial budget is announced. If the
provincial budget contains surprise costs then municipalities are in a bind to either increase
local taxes (through supplementary tax bills) or revisit their budget to find a way of paying
for these unanticipated additional costs.
23
Better Government Lower Cost
Implementation
The New Municipal Mandate
Recommendations
INTEGRATE
Promote accountable decision-making by enabling municipal
governments to integrate the functions of local special purpose
bodies, such as library boards, with municipal government
units. In this way, municipalities can set local spending
priorities and reduce the amount of bureaucracy at the local
level.
Better Government, Lower Cost
Implementation
The New Municipal Mandate
Recommendations
Heres how... Build on existing structures for planning, managing and delivering health and
social
B
B
B
B
B
services.
Reform discussions on health and social services programs should
involve the development of planning, management and delivery models
which build on existing municipal structures, as opposed to creating new
special purpose bodies. This is consistent with the position calling for a
moratorium on the creation of new special purpose bodies or the
expansion of the mandate of existing ones.
During a time of limited and declining government resources and calls
for leaner and more efficient organizations, governments should focus
on utilizing existing government structures for the provision of services
as opposed to setting up new agencies.
The coordination and integration of the delivery of services should be a
priority in order to achieve cost efficiencies and provide a high quality
of integrated services.
Consumers of services and taxpayers should be able to have easy access
to and information about the agencies making decisions on the
allocation of tax dollars, and the ability to hold the decision-maker
accountable.
In particular, discussions on social assistance, child care, employment
services, and long-term care reforms should incorporate these
principles.
Backgrounder
B In March 1993, AMO released two documents focusing on the future municipal role in
health and social services. The first paper, Establishing the Context, dealt with the
implications of demographic, economic, social and health trends and was to serve as
background to the second policy direction paper, Municipal Option.
B AMO distributed the papers to the heads of social services and health departments of
municipalities involved in the provision of these services (approximately 65). In total, AMO
received 32 municipal submissions on the paper. Many of the responses were very
favorable.
B The Province was also invited to respond to the papers, however, no formal provincial
response was received by AMO.
B Municipal Option was prepared in response to several provincial proposals to assign the
roles of health and social services planning, management and delivery to existing or new
special purposes bodies. Essentially, the paper argued that municipal governments should be
given the first option for accepting these responsibilities. AMO also argued that
municipalities should be involved in deciding who should plan, manage and deliver services
in their communities.
B Regarding the role of municipalities in health and social services, AMO has consistently
supported a strong municipally-focused planning system whether or not policy and funding
responsibilities rest with municipal governments.
. In all cases where AMO has recommended 100% provincial policy and funding
responsibility for a social service, it has taken the position that municipalities could still be
involved in delivery. In fact, AMO has argued that in some cases, such as GWA,
27
Better Government Lower Cost Implementation
The New Municipal Mandate Recommendations
B
B
B
B
employment services, child care, homes for the aged and health and personal support
programs, municipalities may be best suited to serve as the local delivery agent.
AMO has also supported that the Province should have responsibility for policy,
management and funding of core mandatory public health programs required under the
Health Protection and Promotion Act, with continued municipal delivery of these programs.
AMO supports the transfer of health and social services planning, management and resource
allocation functions to the local level. This should not be merely the simple administrative
decentralization of provincial functions, but should involve the devolution of decision-making
authority to the local level.
Municipalities currently contribute substantial discretionary dollars to social services
programs such as social assistance, child care, and employment services.
AMO has advocated a number of principles for determining which level of government
should plan,
manage and deliver social services:
health needs, and the planning and coordination of a comprehensive health care program. In
1990 an enhanced role for DHCs was adopted; this expanded their mandate to now include an
advisory role in the allocating of funds, the strengthening of area wide planning, and the
integration of health and social services planning. This decision was based on a report produced
by the Provincial Association of Chairmen of DHCs and the Ministry of Health, and was not
the result of any public consultation process.
In August 1993, a joint DHC, Ministry of Health and Ministry of Community and Social
Services task force released its report, Moving Forward Strengthening Health Planning in
Ontario. The Government, without consulation, adopted the reports recommendations to
further expand the mandate and responsibilities of DHCs to include the lead planning role in
a comprehensive health care system from both the local and regional perspective, and the
mandate to advise the Minister on the allocation and reallocation of resources.
In April 1993, the Ministers of Health, Community and Social Services and Citizenship released
a policy framework document, Parterships in Long-Term Cam. This represented the
Governments response to the input on its consultation paper, Redirection of Long-Term Care
and Support Services in Ontario (which notably did not include any discussion of District Health
Councils and their possible role in long-term care reform). Essentially, the report stated the
Governments decision to assign the following responsibilities to DHCs: district wide planning
for long-term care services; advice to the Government on the allocation of long-term care
resources within the guidelines of a funding envelope; and the planning and management of the
process of establishing multi-service agencies.
In June 1994, the Government introduced Bill 173, the Long-Term Care Act. The Bill received
third reading on December 1994, and will be proclaimed on April 1, 1995. The Bill specifically
outlines in legislation the expanded role for DHCs.
Special purpose bodies such as district health councils are neither financially or politically
accountable to the communities they represent..
Under the new long-term care system, municipalities have to submit their requests for Home
Care funding to their DHC for approval. An unelected body is therefore second-guessing the
budgetary decisions of elected municipal councils.
The role of DHCs was not a major component of Bill 173s promotion In fact. it was hardly
mentioned or emphasized. The Bill focused almost entirely on the Multi-Service Agencies
(MSAs). Consequently, there has been little public attention or debate concerning the role of
this special purpose body.
In its 1991 report to the Minister of Health, Accountability and Special Purpose Bodies: The
Eample of District Health Council, AMO recommended that the Province conduct a review of
and consultation process on the role of district health councils. AMO endorsed the following
resolution:
Be it resolved that the Provincial Government put on hold the implementation
of the enhanced role for district health councils endorsed by the previous
government; and, that the Provincial Government review the role of district
health councils incorporating the concepts of financial and political
accountability.
In this report, AMO expressed its opposition to an enhanced role for DHCs which the
Government was implementing (an advisory role in the allocating of funds, the strengthening
of area wide planning, and the integration of health and social services planning). AMO stated
that the current structure of DHCs does not incorporate any accountability for policy or funding
decisions to an electorate, and that the proliferation of special purpose bodies reduces the
ability of elected officials to establish local priorities and to control municipal expenditures.
The Government never formally responded to this report and its resolution.
32
Better Government Lower Cost Implementation
The New Municipal Mandate Recommendations
. In late 1993, AMO responded to the provincial government policy decisions concerning DHCs
in long-term care (as put forward in the Partnerships series). Although the Province did not
solicit comments on these documents, AMO felt that a response was necessary given that the
Governments policy, decisions raised numerous concerns about the future role of municipalities
in the long-term care system. In its report, Calling for a Municipal Option in Long-Term Care,
AMO critiqued the policy decisions concerning the roles of DHCs and reiterated its
recommendation that the Province conduct a public consultation and review of the
accomplishments, effectiveness, accountability and mandate of DHCs.
. At a consultation meeting with Minister of Health Ruth Grier, the Minister responded that she
believes the formal review recommended by AMO has already occurred through the work of
the joint DHC, Ministry of Health, and Ministry of Community and Social Services task force
which reported in August 1993. However, the only aspect of the task forces work which could
possibly constitute a review was the development of a chronology of the history of DHCs in
Ontario. The other parts of the report focused on describing how the expanded role of DHCs
should be implemented.
B The Association indicated that it recognizes the work of the joint task force which examined
the roles and mandate of DHCs in the health system to determine what is necessary to achieve
and support their expanded role. AMO argued that this review was not an open process in that
it did not allow other stakeholder groups an opportunity to provide a critical assessment of the
performance of DHCs.
B In June 1994, the Province introduced Bill 173, the Long Term Care Act. This legislation
basically implemented the policy directions set out in the Parterships report. AMO responded
to Bill 173 in its presentation to the Standing Committee on Social Development. The
presentation expressed concern that the Province, through Bill 173, was attempting to enshrine
the roles and responsibilities of DHCs within legislation without a formal review of their
accomplishments and ability to assume new and expanded functions.
33
Better Government, Lower Cost Implementation
The New Municipal Mandate Recommendations
Fast Facts
B
B
B
B
B
DHCs are established by Order-In-Council. The first one was established in 1973, the Ottawa-
Carleton Regional DHC. There are currently 33 DHCs in Ontario (Source: Association of
District Health Councils of Ontario).
Representation on DHCs is governed by a formal nomination and selection process and
representatives are appointed to the DHC by an Order-in Council. Representatives include
individuals from the following stakeholder groups: local citizens, consumers, service providers
and nominees of local government. District Health Councils have approximately 14 to 24
members. Municipalities have roughly 20910 of the seats on a DHC, while consumers and
providers each have approximately 40%. Municipalities must submit the name of their
representatives to the DHC which then forwards the names to the Province for approval
(Source: Association of District Health Councils of Ontario).
According to the Ministry of Healths 1994-95 Estimates, the annual operating costs of DHCs
amounted to approximately $21.4 million. In April 1993, as part of the Governments
Parrtnerships reports, an additional $4 million was allocated to DHCs to cover the costs of
implementing their expanded role (Source: The Estimates, 1994-95).
Generally, thousands of people across Ontario are involved with DHCs, either through direct
participation on the councils or by providing input on health issues. On average, 240 people per
DHC are involved in committee work (Source: Association of District Health Councils of
Ontario).
When the new planning role for DHCs is implemented, these bodies will be responsible for
advising on the allocation of millions of dollars annually. The actual government expenditure
on the long term care program in 1992-93 was $1.9 billion. According to the 1994-95 Estimates,
the expenditure is approximately $2.1 billion. (The definition of community based services
used in the MOHs 1994-95 Estimates is broad-based and includes many services. Community
based services amounted to roughly $766 million in 1992-93. According to Ministry of Health
Estimates, the allocation for municipal homes for the aged is $313.5 million. (Source: The
Estimates, 1994-95)).
DHC's meet monthly. While their meetings are generally not advertised or known about and
people may not even know DHCs exist or where they are located, they are generally open to
the public (Source: Association of District Health Councils of Ontario).
34
Better Government, Lower Cost
Implementation
The New Municipal Mandate Recommendations
Heres how.. Give priority consideration to municipal sponsorship of Muti-Service Agencies.
B
Bill 173, the Long-Term Care Act, stipulates that all other approved
agencies must be considered first before a municipality or board of health
can be designated as an MSA. This should be amended to state that
existing local government structures should be given first consideration for
the sponsorship of MSAs.
B
Currently, in municipalities across the province, there are well-established
boards of health and municipal health departments which currently deliver
home care programs, are connected to other municipal services, perform
placement coordination functions, and are accountable to elected councils.
Leaving municipalities as a last resort signals that criteria such as selecting
the best qualified agency and ensuring local accountability on the spending
of government funds are not important.
.
The Long-Term Care Act should be amended to allow for the broker
model for the MSAs as opposed to the direct service delivery and
coordination model adopted by the government. This will allow for
building on existing agency structures while achieving the principle
objectives of service coordination and one-window access to services.
Backgrounder
B
B
B
B
In the spring of 1990, the then Provincial government released its report, Strategoes for Change:
Comprehensive Reform of Ontario's Long-Term Care Services. It recommended the establishment
of service access organizations to act as the point of access, referral, assessment and service
coo
rdination for the care and support service needs of individuals in their homes and to build
on the concept of a one stop shopping approach to obtain services. The government specified
that direct service providers would not be able to sponsor the SAO. This effectively meant that
a new organization would have to be formed and that municipalities could not sponsor the
SAO in their communities.
In AMOs report, Response to Strategies for Change (1992) the Association supported the
proposed service access organization which would coordinate access to long-term care services.
However, AMO did not support the recommendation that municipalities, which also serve as
direct service providers, should not be able to sponsor the SAO (the governments rationale was
that direct service providers would have a conflict of interest).
The Association took issue with the claim that there would be a conflict of interest if a service
provider also made decisions on access to services. AMO argued that municipalities are
accountable decision-makers and should not be treated the same as non-profit service delivery
agencies. AMO recommended that municipalities should be offered the first opportunity to
sponsor an SAO in their communities. If they chose not to accept that opportunity, they then
should be partners in determining how the SAO is established in their communities.
With the election of a new government, a second consultation document was released in
October 1991, Redirection of Long-Term Care and Support Services in Ontario. It essentially built
on the previous governments recommendations. The service access organizations were now
referred to as service coordination agencies but essentially were assigned the same functions:
to act as the single point of access, provide assessment information, advice and referral
services, and purchase services for consumers from service delivery agencies. The new
government continued to specify that an SCA must be a new agency and in this way help meet
35
Better Government Lower Cost Implementation
The New Municipal Mandate
Recommendations
B
B
B
B
a conflict-free criterion.
In response to the newly elected governments redrafted long-term care reforms contained in
the paper Redirection, the Association continued to argue against the stipulation that direct
service providers could not sponsor the now named service coordination agency (SCA). AMO
argued that the SCA functions are already in existence with the Home Care Program and
Placement Coordination Services delivered by many municipal health units or departments, and
that municipalities are best positioned to provide coordination services by building on their
existing experience and structures.
In April 1993, the Government released its policy framework document Partnerships in Long-
Term Care. The paper indicated that now multi-service agencies would be created and serve
as the basis for both coordinating and delive ring services to seniors in their homes. The paper
indicated that new boards would be created to serve as the MSA.
In response to the Governments policy directions on long-term care reform set out in the
Parterships documents, AMO argued against the switch from a broker model for the MSA
to the direct service delivery and coordination model adopted by the government. The
Association argued that the Provinces proposed model of amalgamating the numerous provider
agencies will be very disruptive to existing agencies and their staff. In turn, this disruption will
place the needs of the consumer in jeopardy. The Association recommended that the MSA be
the link or the focus of delivery for the various service providing agencies. This model would
allow for a continuum of service provision through contracts between the MSA and the various
agencies.
In June 1994, the Government introduced Bill 173, the Long-Term Care Act which received
third reading in December 1994. The Bill gives the Minister the authority to designate an
approved agency as a multi-service agency. Before designating a municipality or a board of
health as a muti-service agency, the Minister shall consider the suitability of all other approved
agencies for designation. The Bill also specifies that the MSA must directly deliver the services
(with 20% purchase permitted).
In response to Bill 173, AMO stated it continues to support the concept of creating an MSA
to coordinate access to services for consumers. However, AMO took exception to the provisions
set out in Bill 173 which give the Minister the authority to designate an approved agency as a
multi-service agency, but that before designating a municipality or a board of health as a multi-
service agency, the Minister shall consider the suitability of all other approved agencies for
designation.
Fast Facts
B
B
B
Currently, about 1200 agencies deliver in-home community support sew-ices to seniors in
Ontario communities. These agencies include a broad range of entities, from meals on wheels
to home care service providers (Ministry of Health).
Under Bill 173, a smaller number of MSAs will be established. However, the exact number of
MSAs will vary greatly by area. In Metro Toronto for example, 15-20 MSAs are expected
whereas as in other areas, there may only be one MSA (Source: Ministry of Health LTC
Division).
Agencies are currently funded from various sources including provincial contributions and local
contributions (which can include municipal contributions and user fees). The split in funding
varies according to the agency. For example, home care agencies are 100% provincially funded.
Home support agencies are 70% provincially funded and 30% locally funded (Source: Ministry
of Health LTC Division).
36
Better Government Lower Cost
Implementation
The New Municipal Mandate
Recommendations
B Org anizations which have opposed Bill 173 include:
*
Association of Ontario Physicians and Dentists in Public Service
*
Canadian Red Cross Society
*
Catholic Health Association, Ontario
.
Catholic Womens League
*
Council on Aging, Ottawa-Carleton
B
Federation of Non-Profit Organization Working with Seniors
*
Ontario Association of Medical Laboratories
B
Ontario Association of Non-Profit Homes and Services for Seniors
*
Ontario Association of Residents Council
*
Ontario Community Support Association
*
Ontario Home Care Programs Association
*
Ontario Home Health Care Providers Association
*
Ontario Home Respiratory Services Association
B
Ontario Hospital Association
B
Ontario Medical Association
B
Ontario Nursing Home Association
B
St. Elizabeth Visiting Nurses Association
*
Victorian Order of Nurses
*
Villa Charities
B There has been no publicly released financial analysis to support the Governments claim that
administrative costs will be less with fewer delivery org
anizations. In her January 11, 1994
address to District Health Councils, Minister Grier remarked ...in keeping with our
determination to serve comsumers, it (the new system) was designed to achieve administrative
efficiencies so that we can maximize the proportion of our health care dollar going into direct
service provision.
B The fact that there will be one central organization will not reduce the number of workers who
will be required to meet a seniors service needs (e.g. meals, friendly visits, homemaking
services, nursing support, etc.). A case management approach will still be necessary which will
involve the coordination of the activities of a number of workers located in different branches
of an MSA.
. MSAS will cover large areas. In northern Ontario, for example, one MSA will be responsible
for the vast territory of the District of Kenora.
37
Better Government, Lower Cost Implementation
The New Municipal Mandate Recommendations
Heres how... Amend the Police Service Act to ensure public accountability through greater
municipal control over police budgets.
B
The Provincial Government should honour its commitments under the
Social Contract. and implement the necessary amendments to the Poke
Services Act to provide municipalities with a greater degree of control over
budgeting for police services while providing for adequate police services.
B
The operation of a police service in a municipality is supported by the
property tax base, yet the body accountable to the taxpayer - the
municipal council - has a very limited influence on the manner in which
those funds are spent.
B
When considered as a percentage of municipal own-source revenues, the
implications are considerable with police budgets representing 52% of that
figure province-wide.
Backgrounder
B
B
B
B
B
The lack of municipal control over the budgets of their Police forces has been an issue of
concern for some time, and was addressed during disentanglement discussions in 1992.
Amendments to the Police Serices Act providing municipalities with greater flexibility and
control over budgeting for police services while providing for adequate police services were
agreed to as part of the Phase 1 Draft Agreement on disentanglement.
The disentanglement talks failed at the onset of the Social Contract and Expenditure Control
Plan, however the Government committed to support those same amendments as part of the
Municipal Sector Framework Agreement under the Social Contract. The Province advised that
the necessary amendments would be introduced in the Spring Session of the Legislature in
1993.
The combined effect of the Social Contract and the Expenditure Control Plan was to remove
$390 million from municipal revenues, a reduction of 22%. The provisions of the Social
Contract Act allowed municipalities to cope with the reductions in the short term by freezing
salaries, suspending collective bargaining and requiring employees to take days off without pay.
It was recognized that the longer-term impacts of the reductions needed broader solutions, and
giving municipalities greater influence over police budgets was identified as part of the solution.
While commitments to support the changes were received from the Provincial Government and
both opposition parties, the amendments have never been introduced.
In conjunction with the February 6, 1995 announcement of the Partners in Community Safety
program and in recognition of the challenges facing all parties in the delivery of police services
in Ontario, the government reiterated its support for these amendments.
When considered as a percentage of municipal own-source revenues, the implications of
municipal control over police budgets are considerable as demonstrated by the following chart.
39
Better Government, Lower Cost
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Recommendations
Policing costs
as a Percentage of Municipal Own-Source Revenue
($Millions)
Municipal
Tax Revenue Police Percentage
Metro 1,090
545 50
Regions 1,089
540 50
County Cities 359 174 49
District Cities 84 45 54
Counties 275
66 24
Districts 65 18 27
Province Wide 2&7
52
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Heres how... Reduce costs and improve the efficiency of welfare delivery by integrating some
provincial and municipal administrative functions.
B
Improvements in the delivery of the municipally delivered welfare program
(GWA) and the provincially delivered family benefits program (FBA) do
not have to wait until the broader reform discussions have been finalized
(this could be several years away).
.
There are numerous non-legislative changes which could be implemented
to integrate FBA and GWA administrative functions such as combined
intake and standardized application forms.
Backgrounder
B Municipalities are already looking at making changes to integrate existing delivery functions in
order to reduce costs and improve efficiencies.
B Halton Region, for example, has restructured the way it delivers social assistance to clients. By
using a standardized application form which can be used by both Regional employees and
Ministry of Community and Social Services (MCSS) employees, Halton has eliminated some
of the administrative duplications that are inherent in delivering two parallel systems under
GWA and FBA. Halton plans to extend this to include the disabled, the aged and foster
children in the near future. In addition, staff are studying other opportunities to reduce
duplication and produce administrative efficiencies. They will be looking at such things as
having an integrated intake process and a single access phone number.
B In the early 1980s, the provincial and municipal intake systems for sole-support parents were
integrated at eight sites in Ontario. This is one example of integration which could be further
pursued. The Province is currently undertaking a review of the integrated sites in order to
prepare a cost-benefit analysis.
B There are several initiatives in Ontario which demonstrate how federal-municipal cooperation
can improve the delivery and integration of services.
B The City of London has been very successful with its CLEAR project, a unique pilot project
involving the federal and municipal government. The project not only reduces administrative
duplication and overlap by integrating the movement of a well-defined group of clients between
the two systems, but it also integrates employment and training services by offering group
employment information and counseling sessions. CLEAR is targeted to GWA clients who are
either pending receipt of UI of are receiving both GWA and UI. The project was designed in
June 1994 and by September 1994, was providing services to more than 25 clients. The project
is funded 100% by the federal government under a program to achieve enhanced client service.
The project is designed to make better use of federal training dollars, to motivate clients to
pursue employment opportunities more quickly after they are out of work, thereby reducing the
number of UI recipients that will move onto welfare and reduce administrative duplication.
B The Association has also been advocating other improvements to the efficiency of social
assistance delivery such as the voluntary consolidation of part-time municipal delivery
administrations.
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Fast Facts
B There are 207 municipal delivery sites for GWA and 90 provincial delivery sites for FBA.
Municipal administration costs for GWA in 1993-94 (provincial fiscal year) were approximately
. .
B The types of functions integrated involve all abled-bodied sole support parents being transferred
to the municipal intake system. Each site has a separate legal agreement covering the specific
functions integrated.
B There are 8 integrated GWA-FBA sites in Ontario: City of Windsor; the Regions of Waterloo,
Peel, Dufferin, and Durham; the County of Lanark; and the Cities of Peterborough, and
Thunder Bay.
B All integrations took place between 1982-83 and 1983-86. The last one to take place was
Durham in 1986.
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Better Government, Lower Cost Implementation
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FACILITATE
Recognize that local decision-making that is innovative,
effective and efficient can best be facilitated by provincial
legislation and policies which set broad objectives and go
and leave the development of specific implementation and
delivery policies to elected and accountable councils. This can
lead to services designed in a way that is appropriate to
different communities and in the most cost-effective manner.
THE NEW MUNICIPAL MANDATE
Better Government Lower Cost Implementation
The New Municipal Mandate Recommendations
Heres how.. Immediately pass guidelines for arbitrators and introduce legislation to reform the
collective bargaining process.
B
Reform of collective bargaining and interest arbitration is needed to
introduce balance in labour negotiations and to ensure that arbitration
awards reflect fiscal realities. These are necessary to address the lack of
incentive for employees to negotiate a settlement, the absence of guidelines
for arbitrators and the failure of arbitration to honour managements right
and responsibility to set service standards.
B
Current collective bargaining legislation and processes prevent
municipalities from being able to provide services in new and innovative
ways and more cost-efficiently.
B
For over a decade, municipal governments have made specific
recommendations for reform of the labour dispute resolution system in
Ontario. There is general interest in reducing the frequency of arbitrations
by relying more heavily on pre-arbitration processes.
B
The needed labour reforms will require considerable time for complete
implementation. However, some action should be taken immediately to
address the widespread concerns about the state of labour dispute
resolution. These changes could be effected through changes to policies or
regulations, or by the introduction of guidelines for arbitrators. The need
for change will be particularly pressing and important to deal effectively
with wage demands which will be inevitable after the end of the term of
the Social Contract on April 1, 1996.
B
In July 1993, the Provincial government committed, in writing and in
Regulation, to move forward with reform of interest arbitration and
collective bargaining in Ontario. This was part of a package of
commitments contained in the Municipal Sector Memorandum of
Understanding under the Social Contract. The Government committed to
this review and to establish criteria for arbitrators to require consideration
of ocal financial circumstances when awarding a decision. The review has
not been conducted.
Backgrounder
B Municipal labour relations with respect to police, fire and health services are governed by three
pieces of legislation: the Police Servicer Act, the Fire Departments Act and the Hospital Labour
Disputes Arbitration Act respectively.
B Under the Police ServicesAct, disputing parties may voluntarily request third party intervention.
Failing satisfactory resolution of the disputed issues by means of conciliation, but not before the
conciliation process is complete, matters must be settled by compulsory arbitration.
. Parties bound by the Fire DepartmentsAct have no access to mediation or arbitration, although
this is currently under review. Until this situation changes, the only option for employer and the
employees is compulsory arbitration.
B Health workers labour relations allows for mediation at the request of the parties in an impasse
position, mandatory third party assistance prior to the impasse step, and arbitration if no other
resolution is found.
B Recent data detailing arbitrated and non-arbitrated settlements for the private and public
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Better Government, Lower Cost Implementation
The New Municipal Mandate Recommendations
B
B
B
B
B
B
sectors demonstrates that arbitrated awards during the years of 1984-85 exceeded non-arbitrated
settlements. During the latter part of the decade, awards were generally at par. This changed
beginning in 1990 when arbitrated awards exceeded non-arbitrated settlements by 1 to 2.5%.
In addition, during periods of economic downturn/recession, private sector and non-arbitrated
agreements tended to reflect restraint (early 1980s and 1990s), but arbitrated settlements did
not change accordingly (Source: Ontario Ministry of Labour, Labour Management Services,
Office of Collective Bargaining Information).
Municipalities in Ontario and across the country have long expressed concerns about arbitration
awards and procedures. These concerns relate primarily to three important areas of local
government service delivery - the essential services of police, fire and health (homes for the
aged nursing staff).
These employee groups, particularly fire and police, have traditionally enjoyed very lucrative
awards, putting upward pressure wage and benefit demands of other bargaining units in the
municipal corporation.
In the face of severe fiscal restraints, recent provincially arbitrated awards in the municipal
public sector have been particulary troubling. Arbitrated settlements in areas affecting municipal
essential services have not reflected today's fiscal realities. In some cases cited by municipalities
during the early 1990s for example, that in comparison to negotiated settlements of about 5%,
provincial arbitrators were awarding settlements as high as 15%.
One consequence of these settlements has been that municipalities, already fiscally constrained,
are forced to consider employee layoff and service reductions to afford the terms of these
agreements. Consequently, all parties, including the ratepayer, bear the cost of these
settlements.
The basis for municipal concerns rested in the perceived imbalance in risk when entering
arbitration, and the fact that arbitrators are not required to take local financial conditions into
account when making awards. In fact, employee associations are quick to quote Paul Weiler in
Reconcilable Differences (pp251) as follows:
Certainly Canadian arbitrators do not accept the principle that an award
which seems merited by normal comparisons should be cut back because the
public, employer does not have the wherewithal in its current treasury to pay
.
The normal comparators, are of course, other awards in like organizations. This attitude is of
great concern to municipal employers, and should be of grave concern to the general public
paying for the service.
The AMO Position Paper, Ensuring Mutual Risk, Reform of Conciliation and Interest Arbitration
Processes in the Municipal Sector, was submitted to the Minister of Labour in July of 1994.
While no review was formally conducted, the Minister did distribute the AMO document to a
broad audience of employee representatives and several employer organizations. The response
from labour was not positive and the NDP government was completely unwilling to move
forward with a full review, let alone give consideration to reform.
Detailed municipal recommendations
Encouraging Negotiated Settlements by Ensuing Mutual Risk
Many municipal employers believe that during the pre-arbitration negotiations, labour has little
or no incentive to commit in earnest to the process since they have little to lose and, as the
record of awards shows, much to gain from proceeding to the arbitrated process.
Employee
process, in some
groups often resort to arbitration very
cases announcing their intention to do
early in the collective bargaining
so at the outset. AMO therefore
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Better Government, Lower Cost Implementation
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recommends that legislation be amended to make it mandatory that compulsory conciliation,
or mediation must take place prior to parties proceeding to interest arbitration.
Guidelines for Arbitrators
Mandatory conciliation alone will not ensure mutual risk. Criteria for arbitrators are necessary
to ensure that both parties have an incentive to work in earnest during the first stage of
negotiations. Compulsory and binding arbitration is counterproductive if it fails to serve the
public interest and frustrates public policy.
The Provinces failure to establish, by statute, criteria for the resolution of public services
disputes, is also of concern to municipal employers. Therefore, AMO recommends that the
legislation be amended to require that arbitrators recognize financial constraints, the cost of
living, the fiscal and economic realities of local employers and the community, compensation
levels for other employees of the municipality and the differing nature of work done by
municipal employees across the province.
It is imperative that all parties involved in dispute resolution have confidence in the
neutrality of the arbitrator. The incorporation of mutual risk in the selection of arbitrators is
also therefore proposed. AMO recommends that changes must be made to the current system
of appointments of arbitrators to ensure there is mutual risk in the selection of arbitrators and
confidence in the neutrality of arbitrations. The Association also recommends reforms that will
prevent the development of real or perceived arbitrator favoritism for either party - labour or
management - in dispute resolution
Affirmation and Support for Management Rights
Arbitration often does not honour managements right and responsibility to set service
standards. Virtually all collective agreements and labour legislation recognizes and respects the
concept of Management Rights, often through the inclusion of a Management Rights clause.
AMO believes that such an assertion of the rights of management should be contained in three
acts governing municipal labour arbitration, so that interest arbitrators and employee
organizations will be obliged to respect managements right to organize the delivery of service,
determine the level of service, to deploy it, and to fund it as Management and Council
determines appropriate.
The present systems of compulsory and binding arbitration are frequently cumbersome
and in need of rationalization. There should be a recognition that the public service is one, that
collective bargaining is an entity, and that if binding arbitration is to be invoked, there should
be a single system to guide the process in the public services. This system would ensure
consistency of such things as procedure, formation, qualifications of arbitrators and payment of
costs. AMO therefore recommends the establishment of a single system of arbitration for the
public sector.
Fast Facts
B Two arbitration awards in the Town of Kapuskasing provide examples of the imbalance and
inequity of the existing system:
- A November 1994 arbitration decision in the Town of Kapuskasing has awarded severance pay
for civilian staff whose jobs were eliminated when municipal police services were contracted to
the Ontario Provincial Police. The award specified one month salary for each year of service
at a cost of $150,000 to the municipality, on top of benefits the employees received when they
left their jobs. As a comparator, hundreds of private sector employees in Kapuskasing have
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Better Government, Lower Cost Implementation
The New Municipal Mandate Recommendations
been laid off over the past two years by a local paper mill, and received 1.5 weeks pay per year
of service. Many had been employed at the mill for 25 to 30 years.
- A 1992 arbitration decision involving the Kapuskasing Fire Fighters Association also highlights
problems with the arbitration system, particularly as it relates to the ethics and conduct of
arbitrators.
With backing by referendum of 83% of the citizens of Kapuskasing, council proceeded
with plans to move from a fire department with eight full-time firefighters earning an average
of $72,000 in the previous year, to a volunteer system. The anticipated annual savings from the
change were in the range of $500,000.
An arbitration hearing involving the fire department was required before any move could
be made to create an all-volunteer system. The arbitration board over-ruled the decision of
council and the advice of the electorate and ruled in favour of the firefighters. The change to
a volunteer system was blocked.
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Better Government Lower Cost Implementation
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Heres how... Reform the Fire Departments Act towards removing barriers to the provision of
more
B
B
B
B
B
B
efficient fire services.
The Fire Departments Act should be reformed. Municipalities need a
progressive act that will allow flexibility in establishing and delivering fire
services. Specific changes are required if municipalities are going to be
able to deliver more effective and efficient fire services.
The delivery of fire services in Ontario is in dire need of reform The
legislation governing this essential service, the Fire Departments Act, is
completely out of date and has essentially remained unchanged since 1927.
No changes have been made since 1949.
Management exclusions, improvements to the interest arbitration process,
assertion of management rights in legislation, no discrimination against
volunteers and municipal councils prerogative to set the standard of fire
services are some of the changes needed.
The most troubling aspect of the current status of the fire service in
Ontario is the fact that municipalities, who bear the financial responsibility
for delivering this essential services have little or no flexibility in carrying
out this function. The Fire Departments Act is weighted decidedly in favour
of labour interests, causing unions to do everything possible to maintain
the status quo.
As a Toronto Star article highlighting the problems with the status of the
fire service in Metro stated, Plans to streamline Metros fire services
always turn to ashes. Why? Because fire departments are like fiefdoms.
In continuing efforts to do more with less and get the most out of the tax
dollar, the obstructions to change presented by the current Act are a source
of extreme frustration. With a full 32% of province-wide municipal
expenditures devoted to fire protection, the need to ensure an efficient and
cost-effective service is obvious.
Backgrounder
B For years, AMO representatives have been working to reform the Fire DepartmentsAct, which
has remained virtually unchanged since its introduction in 1927. No amendments at all have
been made since 1949.
B In 1989 the Solicitor General established a Fire Service Review Committee which consisted of
representatives from the Ministry, AMO, the Association of Fire Chiefs, the Professional Fire
Fighters Association, the Federation of Ontario Fire Fighters and the Fire Fighters Association
of Ontario. While consensus on change had been achieved by that group, it dissolved partly as
a result of the change in government in the last Provincial election.
B Since 1989, the examination of the fire service has taken place under the authority of the
Solicitor General through a Fire Services Review Committee. Representatives from the Office
of the Solicitor General, AMO the Association of Fire Chiefs, the Professional Fire Fighters
Association of Ontario, the Federation of Ontario Fire Fighters and the Fire Fighters
Association of Ontario had been asked to achieve a consensus for change. Responsibility for
the Committee has now transferred to the Office of the Fire Marshal.
B In 1992, it was suggested that a new review committee be struck. AMOs representatives to that
committee were Bill Mickle, Reeve of the Town of Exeter, Michael Fenn, City Manager, City
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Better Government, Lower Cost
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The New Municipal Mandate
Recommendations
of Burlington and Hilary Payne, City Administrator, City of Windsor. The new group was asked
to review and comment on a report which was prepared by the Ministers staff reflecting the
work of the earlier committee.
. AMO provided its comments to the Solicitor General in December of 1993. However,
subsequent discussions between the AMO representatives and the Ontario Association of Fire
Chiefs lead to the suggestion that these two groups attempt to achieve a consensus position to
put forward to the Solicitor General and other members of the Fire Services Review
Committee. The resulting consensus position was reached and submitted to the Solicitor
General in April of 1994.
B After a considerable hiatus, the Review Committee met in June of 1994 where the Solicitor
General advised of his commitment to bring legislative changes to Cabinet during 1994.
B In September of 1994, responsibility for this issue was transferred to the Office of the Fire
Marshall. In October, the Fire Marshall met with each of the stakeholders independently to
assist in his development of recommendations for legislative amendments to be presented to
the Solicitor General.
B A November 1994 proposed framework for change from the Fire Marshal has been soundly
rejected by the unions and deemed unsupportable by the municipal representatives.
Detailed municipal recommendations
"Managements Exclusions that permit a full management team outside of the union.
Currently, only the Chief and Deputy Chief operate as management, and all other exclusions must
be negotiated with the union. There are long-standing questions of whether firefighters can
effectively balance competing loyalties to the union with his or her responsibilities to the employer.
Improvements to the Interest/Rights Arbitration Process that would prevent applying for interest
arbitration until after a conciliation process has been completed. Firefighters unions often resort
to arbitration very early in the collective bargaining process. Given the generous settlements they
have received from interest arbitrations, relative to those received by unions which were compelled
to bargain, we can understand their eagerness to by-pass collective bargaining to get interest
arbitration. AMOS specific recommendations with respect to the reform of municipal collective
bargaining and interest arbitration are detailed earlier in this section.
Restrict Working Conditions that are Subject to Arbitration introducing flexibility into the
workplace to cushion the impact of revenue declines associated with the Social Contract and the
provincial fiscal situation. On both of these points, both the government and AMO made specific
commitments in the Social Contract Framework Agreement, which the two professional firefighters
associations refused to sign. Unfortunately, interest arbitration awards have, overtime, dramatically
restricted the operational and staffing options available to Fire Department management and to
Municipal Councils.
It k-entirely appropriate for interest arbitrators to make awards on the compensation issues of
wages, benefits and immediately related working conditions. However, interest awards go far
- beyond this. It is completely inappropriate for interest awards to deal with questions of operational
performance, apparatus staffing, adequate levels of fire service in the municipality, and similar
matters. Matters of fire safety and operational performance should be left to Fire Department
Management, to Municipal Councils and to the Solicitor General, rather than being decided by
labour arbitrators.
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Assertion of Management Rights to be contained in fire service legislation, so that interest
arbitrators and employee organizations will be obliged to respect managements right to organize
the delivery of the fire service, to deploy it, and to fund it, as the Management and Council
determines appropriate.
Standard of Fire Service as a Prerogative of the Municipal Council. While we support the position
that a minimum level of municipal fire service should be required in every municipality in Ontario,
that standard should be sensitive to the fiscal and resource limitations of rural communities.
Municipal Councils should be allowed discretion regarding the level of any improvements beyond
that minimum level. In addition to the setting of emergency service levels, fire prevention and
public education must be at the discretion of the municipality.
Fast Facts
B There are 750 fire departments in Ontario; 522 use volunteers.
. In 1991, province-wide, Municipalities devoted 32% of their gross operation expenditures to fire
protection. 72% of the provincial fire protection expenditures were attributable to Metro
Toronto and Regional governments.
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Heres how... Repeal Bill 120 to restore municipal authority to determine local housing
intensification policies.
B
The Government should immediately repeal the Bill 120 Planning Act
amendments which permit as-of-right apartments-in-houses. Provincial-
municipal discussions should immediately commence to address the
regulatory, enforcement and financial issues related to accessory units.
B
Bill 120 contrasts with the directions recommended by the Sewell
Commission which supports that the Province should set broad policies for
land use planning and municipalities should identify specific implementing
policies. Municipalities should have the authority and responsibility to
define local housing intensification policies appropriate to their
communities.
B
Bill 120 represents an unwarranted intrusion and interference with
municipal zoning authority. It works contrary to the many active and
progressive housing intensification efforts already under way in
municipalities.
B
Bill 120 overrides local planning to ensure the provision of the necessary
hard and soft services in communities.
B
The need to address health and safety issues is recognized, however, this
legislation has ignored the fact that these issues exist whether or not the
. .
accessory apartment is legal or illegal
, and that in order to ensure the
health and safety of tenants in accessory units, regulatory and enforcement
changes are imperative. These have not been addressed.
B
Instead of blanket legislation, municipalities have been calling for the
authority and powers to deal with regulatory and enforcement problems
related to accessory units. For example, the authority to license and
register units; greater powers of entry to inspect units; increased fines for
offenses and speedier court system and procedures to enforce work orders;
improved ability to collect fines; and changes to the assessment of
accessory units in a manner which better represents the additional costs
of a residential unit.
Backgrounder
B Bill 120, An Act to amend certain statues concerning residential property was proclaimed into law
on July 14, 1994. The provisions of Part IV dealing with the construction and use of accessory
apartments in detached, semi-detached and row houses, severely curtail municipal powers to
control development of this kind on an area basis. The purpose of these provisions is to
encourage intensification, by giving owners a general right to have an accessory apartment in
every house.
B Municipalities and others vigorously opposed these provisions on a range of policy grounds.
B On June 20, 1994, London City Council passed a resolution to commence, in concert with other
municipalities and/or individuals, an action in the Ontario Court - General Division with
respect to the validity of Bill 120.
B The focus of the legal challenge is the risks to life, health and safety that result from
uncontrolled accessory apartments development. These include the risk of injury or death by
fire, and the risks to public health in consequence of overloading the sewer systems. The
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Better Government, Lower Cost Implementation
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anticipated effects of having more accessory apartments, are increases in the chance of fire and
sewer overload occurring, and in the likelihood of ill-health, injury and even death occurring
in particular cases.
. AMO has made a number of recommendations have been made to address the regulatory,
enforcement and financial issues related to accessory units:
- Under the Assessment Act a dwelling with an identifiable accessory unit should generate more
tax assessment than a dwelling with a finished, and unrented, basement. The municipal tax base
does not increase with the addition of accessory units which place a greater demand on
municipal services.
- Growth-related costs arising from provincially imposed exemptions from development charges
should be funded by the province.
- Municipalities should be permitted to pass by-laws licensing and regulating accessory units.
The intent is not to control or license occupancy, but rather to achieve regulatory objectives
such as property maintenance. This would also give municipalities a count of the number of the
units and assist in determining inspections and work load.
- Municipalities should have the ability to recover municipal costs as taxes.
- Speedier court system/procedures should be implemented so as to permit a Prohibition Order
to be enforced by the Court granting such an order. The establishment of a Municipal By-Law
Court should also be investigated.
- Further changes to right-of-entry should be pursued. The changes introduced in Bill 120 are
an improvement but it still will be difficult for inspectors to enter units. Changes such as
guidelines for evidence would be a good start.
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B
The Government should immediately make it explicit in the regulation that
is now being developed under Bill 163 that an approval of an official plan
or amendment, by the approval authority, that has followed the prescribed
processes, shall be deemed to have met the requirements of subsequent
processes under the Environmental Assement Act.
B
In the longer term, amendments should be made so that all development
projects involving municipal infrastructure should be subject to only one
piece of legislation. That means, when an undertaking is the responsibility
of a municipality, it should be dealt with by the municipality through a
planning process which has been amended to include mandatory
Environmental Impact Assessment.
Backgrounder
B In June 1991, the Province established the Commission on Planning and Development Reform
in Ontario (Sewell Commission) with a mandate to propose substantial reforms to the land use
planning system in the province. The Final Report of the Commission was released in June
1993; it contained 98 recommendations.
B In December 1993, the Province made available for a 90 day period of consultation a paper
called, New Approached to Land Use Planning, which contained a draft set of provincial policy
statements.
B In May 1994, the Province introduced Bill 163, the Planning and Municipd Statute Law
Amendment Act, 1994, which, among other provisions, contained major amendments to the
Planning Act, 1983. Simultaneously with Bill 163, the Province also released the final version
of the policy statements scheduled to come into effect on the day the Bill is proclaimed.
B Since June 1994, at the invitation of the Province, five AMO representatives (along with
representatives from the development and homebuilder industries, and environmental groups)
have participated on the Implementation Advisory Task Force (IATF) on planning reforms.
The Task Force has provided input into the development of guidelines and regulations that will
accompany the bill and the comprehensive set of provincial policy statements. A separate
Technical Advisory Committee, and a Rural Table have also been formed to provide the IATF
with advice. The term of the Task Force continues until December 1995.
B Since June 1991, when the Province established the Commission on Development and Planning
Reform in Ontario (Sewell Commission) AMO has been actively providing input to provincial
initiatives regarding planning reform. AMO welcomed the introduction of the reform initiative
because it has consistently maintained that improvements to the system are badly needed. The
Association advanced its fundamental principles for improving the system which it also used as
criteria for evaluating provincial initiatives. Through its principles the Association sought:
B
to ensure greater accountability for decision-making;
B
to obtain clearer roles and a strong municipal role in making plannin
g decisions;
B
to limit the provincial review of municipal decisions and place limitations on the appeal
of decisions to the OMB;
B
to ensure that citizens have access to information, and the right to notification and
hearing; and
to ensure timely decision-making.
. Also related to the above principles, and in order to streamline the approvals process, the
Association has called for better coordination and integration between the two parallel
processes of environmental assessment and plannin
g. The Association especially made this call
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Better Government Lower Cost Implementation
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in relation to projects involving municipal infrastructure. AMO also made this recommendation
in response to the 1991 report of the Provincial Task Force, Environmental Assessment
Program Improvement Project (EAPIP). There is general agreement in principle, among
various stakeholders including municipalities, development industry, and environmental groups,
that the two processes need to be integrated.
B The following is a summary of AMOs response to the four major components of the Provinces
reform package:
1)
2)
3)
4)
ovincial Policy Statements: AMO strongly criticized the proposed policy statements for
being too directive and reducing municipal decision-making authority in planning. AMO
expressed its dissatisfaction that its major recommendations for improving the policies
were not incorporated in the final Cabinet-approved version which was released on May
18, 1994.
.
Amendments 1994. AMO did not
support the original version of the Bill. In response to pressure from AMO and other
stakeholders, the Government introduced over 100 amendments to improve the bill;
nearly half of AMOs recommendations were incorporated. While some of its key
recommendations were not adopted, the Association supported the amended bill.
.
3) In early 1995, given the unacceptable state of the draft regulations, AMO
recommended that the Government delay their introduction and urged the Government
to give priority consideration to those regulations that are absolutely necessary for
immediate implementation of Bill 163 such the ones on notice requirements and
complete applications. The Government subsequently agreed to release these two
regulations to municipalities in early February and delay their promulgation to March
28, 1995.
Impementdon Guidelines: In early 1995, AMO also found the final package of the
implementation guidelines to be unacceptable and recommended that the Province delay
their release as official documents. The Government subsequently agreed to release the
implementation guidelines as a First Edition with a commitment to review and revise
them further by 1996.
On integrating environmental assessment and planning processes
B
B
B
B
In 1991, the Province released the final report of the Environmental Assessment Program
Improvement Project (EAPIP) Task Force which was given the mandate to recommend reforms
to the environmental assessment and planning approvals processes. The recommendations of
the Task Force largely have not been adopted.
In 1993, the Ministry of the Environment and Energy (MOEE) released a set of
recommendations that largely centred around reforms to improve the administration of the
environmental assessment process. These recommendations did not deal with broad policy
concerns raised by AMO and others.
In 1993, the MOEE, in cooperation with the Municipal Engineers Association, produced a set
of procedures for Class EA undertakings related to road and municipal sewer systems.
Bill 163 contains a provision for an optional prescribed environmental assessment process under
the Planning Act for municipal infrastructure projects. However, it remains
unclear whether if
this process is followed, it would then be considered under any subsequent approvals process
under the Environmental Assessment Act.
However, Bill 163 on partly implemented the recommendations of the Sewell Commission
regarding the integration of the planning and environmental assessment processes.
57
Better Government, Lower Cost Implementation
The New Municipal Mandate Recommendations
B Recently, the Regional Municipality of Halton, through its urban infrastructure study, at a cost
of $4 million, has addressed many issues that could serve as a useful case study for integrating
land use planning and environmental assessment.
. Both environmental assessment and planning exercises are extremely transparent processes that
extensively use public consultation in their undertakings.
B Both of the processes are in many ways similar as they each follow a methodical procedure of
posing the problems, identifying solutions and exploring alternatives to the solutions, as well as
exploring alternative ways of implementation Many of the steps in one undertaking are
repeated in the other.
. The Consolidated Hearings Act recognizes that some undertakings maybe subject to different
statutes (i.e., the EnvironmentalAssament Act, and the PlanningAct) and provides for a joint
hearing. Admittedly, this is useful in providing a coordinated process at the hearing stage, but
it does not ensure the coordinated study, planning evaluation, and public consultation that must
precede a hearing. As confirmed by the former Royal commission on the Future of Toronto
Waterfront, this can exacerbate conflicts, add to the time and costs incurred by the proponents,
increase the amount of time and work demanded of the public, and reduce the effectiveness of
the planning process (for example, by requiring proponents to undertake studies separately
instead of integrating them).
Fast Facts
B
B
B
B
B
B
Before the Sewell Cornrnission, the last major review of the PlanningAct was completed in the
late 1970s by the Comay Commission. Some of the major recommendations of the Comay
commission were repackaged by the Sewell Commission in its 1993 Final Report.
Bill 163 received Third Reading on November 28 and Royal Assent on December 9, 1994.
The Province has indicated that the amendments to the PlanningAct under Bill 163, the policy
statements, implementation guidelines, and some of the regulations will be proclaimed on
March 28, 1995.
Bill 163 requires over 30 regulations for its implementation, adding extensive layers of
requirements on a range of planning issues from the mandatory contents of official plans to
requirements for giving notice of public hearings for severance applications. However, only a
limited number of the regulations (those dealing with notice requirements for public hearings
on official plans/amendments, zoning by-laws, plans of subdivision and consents, and
requirements for a complete application) will be ready by proclamation day.
There are a total 55 provincial policies on six major goals: Natural Heritage, Environmental
Protection and Hazard Policies; Community Development and Infrastructure Policies; Housing
Policies; Agricultural Land Policies; Conservation Policies; Mineral Aggregate Policies; as well
as policies on Interpretation and Implementation This 37 page document includes 13 pages of
definitions.
There are also a total of 28 implementation guidelines expanding on all policies. The excessive
volume of the guidelines covers nearly one thousand double sided pages. A technical manual
of potentially similar length will also accompany the guidelines.
58
Better Government Lower Cost
Implementation
The New Municipal Mandate
Recommendations
Heres how... Streamline the Waste Management Master Planning Process and allow all options
for disposing of wastes to be considered.
Allow all options to be considered and assessed as waste management alternatives
in municipal waste management master plans.
B
Repeal the provincial policy barming Energy-From-Waste, and amend the
Wrote Management Act to permit the transport of waste to willing host
municipalities so that both of these options can be considered in the
development of waste management master plans.
B
The Province should commit resources to compiling the technical
information and research necessary for assessing and reviewing these
options.
Establish a workable system with a clear set of rules at the front-end of the waste
management master planning process.
B
The unclear rules for waste management planning have cost municipalities,
the Province and the taxpayers of Ontario hundreds of millions of dollars
and years of delay in operationalizing effective systems and facilities.
B
There should be staged acceptance of waste management master plans, and
one-window advice from the provincial government.
9
The reformed system should require that provincial officials reviewing
various stages of plan preparation be accountable for their decisions by
giving a sign-off that the municipality has completed that stage. This
would to a large extent alleviate the problems of inconsistencies between
the line of enquiry and decision-making at the Environmental Assessment
Board and policy directed decisions of provincial staff.
B
The new Ministry of the Environment and Energy documents on Waste
Management Planning should be reviewed to evaluate how they meet the
objectives of a streamlined approvals system towards identifying further
changes.
Backgrounder
On Options
B The Environmental Assessment Act was introduced in 1976, and in 1980 all municipal
undertakings became subject to the Act. Under the Act, municipalities wanting to establish a
waste management system or facility are required to undertake an environmental assessment
of the project in order to proceed through the approvals process set out in the Act. The
assessment involves identifying reasonable alternatives, considering the environmental effects
of each, and then, after weighing the pros and cons of all the alternatives, selecting a preferred
alternative.
B
In 1991, the Province banned Energy From Waste (EFW) as a diversion option for municipal
solid waste because of potential health hazards, and as an incentive for promoting the 3Rs
hierarchy of reduction, reuse, and recycling.
B Through the introduction of Wrote Management Act in 1992, the Province prohibited
municipalities from transporting and disposing of their waste in willing host municipalities.
B Through its formal responses to Bill 143, later known as the Waste Management Act, 1992, and
the 1991 provincial ban on energy from waste facilities, AMO objected to the arbitrary and
59
Better Government, Lower Cost
Implementation
The New Municipal Mandate Recommendations
unilateral limitation on the assessment of alternatives in the development of comprehensive
waste management master plans.
B The 1992 Waste Management Act, and the ban on Energy From Waste have had major
implications for municipalities, particularly those in the Greater Toronto Area. For example,
prior to the introduction of the Act, Metropolitan Toronto was involved in negotiating an
agreement to transport Metros waste to the Adams Mine in Kirkland Lake. The introduction
of the Act prohibited that option.
B In response to the Greater Toronto Areas waste management problem, the Province formed
the Interim Waste Authority (IWA) to search for suitable landfill sites within the area.
B The IWA has encountered strong negative public reaction to the three sites it has identified.
B Another major implication of the provincial ban on considering the above alternatives, has been
the problem of the transport of waste to less expensive landfill sites in the United States which
deprive Ontario landfill sites of tipping fees. Studies prepared by the Province in 1992 reveal
that there was a total of 1.3 million tonnes of waste that was exported from Ontario to the
United States, and roughly half of the amount was generated within Metropolitan Toronto.
Today, mainly because of the provisions of the North American Free Trade Agreement the
Federal government has little authority to stop the flow of municipal waste across its border
with the United States.
On the Waste Management Master Planning Process
B Since the late 1980s, AMO has urged the Province to reform the waste management master
planning process in Ontario to achieve greater certainty about the rules, and more rational and
faster approvals.
B In 1992 in response to the Ministry of the Environment and Energys Initiatives Paper #2,
Waste Management Planning in Ontario, AMO called for important financial and legislative
reforms to the waste management master planning process:
- AMO maintained that financial issues must be addressed to include funding for the planning
exercise and funding for waste management facilities.
- In addition, AMO called for the creation of a new waste management act separate from the
Environmental Assessment Act to consolidate the regulatory and legislative requirements for the
master planning approvals process.
B Following a delay of at least two years, in June 1994 the MOEE released a set of documents
on waste management planning that it claimed provide a definite guide to public sector
planning for waste management. The four set volume was released on a trial basis for a period
of 18 months.
60
Better Government Lower Cost Implementation
The New Municipal Mandate
Recommendation.s
Fast Facts
B
B
B
The Interim Waste Authority has spent nearly $65 million in its studies to search for a suitable
landfill site in the Greater Toronto Area.
Metropolitan Toronto, Notre Development (owner of the Adams Mine site) and northern
municipalities such as Kirkland Lake have agreed to commit resources towards an
environmental assessment of the 1680 hectare Adams Mine site.
The Environmental Assessment Board recently turned down the proposal by the Ontario Waste
Management Corporation for a site to store hazardous waste in southern Ontario. The OWMC
spent nearly $80 million in its site selection process. One of the reasons the Board turned down
OWMCs proposal was because the organization had not considered all alternatives. The failure
of the OWMC (an organization established by the Province with generous resources) to
manoeuvre through the environmental assessment process is an important illustration of the
flaws in this cumbersome process.
On February 7th, 1995 the Provincial Cabinet turned down OWMCs appeal of the Joint
Hearing Boards decision.
Advances in technology have significantly reduced the health risks associated with incineration.
Studies show that it is possible to operate successful energy from waste facilities while achieving
good recycling rates:
.
Japan, Germany and the Netherlands are incinerating up to 70% of municipal solid
waste in high-tech facilities and, at the same time, achieving impressive recycling rates
(Japan is around 40%).
.
State-of-the-art incineration techniques and the pre-screening of materials can now
reduce waste volumes by up to 90% while destroying disease-causing bacteria and viral
elements, as well as harmful organic compounds found in pesticides, solvents and other
products. These harmful elements could pose great danger if landfilled.
.
The United States Environmental Protection Agency's position is that waste-to-energy
technologies are essential to municipal solid waste rnanagement, combined with source
reduction, recycling and selective-sanitary landfilling.
The recent MOEE guidelines that are supposed to provide a definitive guide to waste
management planning area set of four documents including technical appendices totalling 800
pages. They cover sectoral environmental assessment proposals for waste management planning,
administration and funding guidelines, and a users reference guide to statutes, regulations,
policies, guidelines and procedures.
61
Better Government, Lower Cost Implementation
The New Municipal Mandate Recommendations
Heres how... Further reduce waste and costs by implementing full product and packaging
stewardship.
Producers and consumers should be fully responsible for the costs of managing
product and packaging wastes
B
Appropriate regulations should be introduced requiring that all who are
responsible for introducing products to the marketplace take action to
divert these products from disposal.
B
The Waste Management hierarchy of reduce, reuse, recycle, recover
(energy), and disposal should be followed in all stewardship plans.
B
The principle of a "level playing field should be part of all stewardship
initiatives.
B
The Minister of Environment and Energy should address funding of all
packaging and paper products collected in the blue box programs by
expanding stewardship funding negotiations to include representatives of
all materials collected in municipal blue box programs.
B
Product Stewardship of Household Hazardous Wastes (HHW) should be
mandated. Although studies suggest an average household generates only
6 lbs of HHW annually, they are the most toxic substances that come out
of the home. While small in terms of weight or volume, HHW cannot
continue to be sent to landfill or poured down the sink.
All stewardship initiatives must outline a plan and commitment to achieve a $0
municipal share of efficient program costs by the year 2000.
B
This will result in cost effective, environmentally responsible and
economically viable waste management systems.
B
Market driven incentives should be used in stewardship agreements to
encourage the implementation of system efficiencies and market
development to reduce costs.
All stewardship initiatives should be presented to AMO and the municipalities
for consultation and endorsement
B
Municipalities are responsible for managing wastes within their boundaries.
Thus, municipalities should be consulted on all proposals as a primary
stakeholder and experienced operator of the various waste management
systems.
Current Provincial waste management funding programs should be conntinued until
industry product stewardship programs are in place.
B
The Province has legislated waste management 3Rs programs and should
maintain a share of the responsibility of meeting their own goals until a
long-term financial solution is implemented.
63
Better Government, Lower Cost Implementation
The New Municipal Mandate Recommendations
Governments should work in partnership with the private sector stewards to
educate the consumer.
B
Each citizen must be made aware of the proper methods for consumption,
storage and disposal of products that they consume.
B
All levels of governments must take the responsibility for educating the
consumer on the use of environmentally friendly alternatives.
Regulations should be harmonized between the provinces to reduce conflict,
improve data quality and save administration costs. Ontario should take the lead
in this initiative.
B
National stewardship programs will reduce overall system costs.
B
Criterion used for classification of waste should be uniform.
.
Regulation harmonization cart be used as the first step towards removing
restrictions on cross-border movement of hazardous waste. Greater reuse
or recovery of waste is possible with open borders.
An inventory of HHW in Ontario should be undertaken.
B
An accurate inventory of HHWwill aide in the monitoring of the successes
and failures of the stewardship programs against performance targets.
B
An inventory data base, by waste type, will help to pin-point those wastes
that are promising candidates for reduction, reuse and recycling.
The Province should commit to enforce regulation 340.
B
The soft drink industry is currently required by provincial regulation 340
under the Environmental Protection Act to sell 30 per cent of its product
in refillable containers, and also to sell 50 percent in recyclable containers.
Backgrounder on Household Hazardous Waste (HHW)
B
B
B
B
B
B
B
B
Any substance when used, stored, handled or disposed of improperly is hazardous, meaning that
it poses a risk to people or to the environment. Many household products such as oils, cleaners,
solvents, adhesives, polishes, detergents, paints and pesticides can be included in this category.
Such products are usually labelled corrosive, explosive, flammable or poisonous.
HHW has been subject to special disposal practices in Ontario since 1986.
The Province has been providing start-up grants to municipalities for HHW collection projects
since April 1986. On April 1, 1989, the terms of financial support provided by the ministry for
the HHW collection program were revised and reduced.
In September, 1992, a joint announcement was made with industry and MOEE about the
creation of a voluntary province-wide used oil collection program. The agreement involved a
voluntary phase-in of depots beginning in October, 1992. A regulation to require full
participation by all lubricant sellers was suppose to follow.
A 1992 study by the Canadian Battery Manufacturers Association concluded that technology for
recycling nickel cadmium rechargeable is available and is a worthwhile endeavour.
On March 31, 1992, Black and Decker unveiled a battery recovery program in Ontario whereby
spent nickel cadmium batteries in household cordless appliances are removed from the
appliance and recycled.
The Western Canada Used Oil/Container/Filter Task Force is proposing using an
Environmental Handling Charge (EHS) to apply to most sales of new oil and filters.
On September 1,1994, British Columbia mandated a post-consumer paint stewardship program.
The paint care program is based on an upfront eco-fee of about fifty cents per 4-litre can.
64
Better Government, Lower Cost Implementation
The New MunicipaI Mandate Recommendations
B The Household Hazardous Waste Task Force (HHWTF) is an industry-led multi-stakeholder
group formed under the auspices of the Hazardous Waste Minimization Committee (HWMC)
to develop strategies to reduce household hazardous waste. This group is developing a national
stewardship framework for all HHW products. The HHWTF is currently establishing a
comrnon, national set of fundamental stewardship principles.
Fast Facts on Household Hazardous Wastes (HHW)
B
B
B
B
B
B
B
B
9
B
Over 150,000 Ontario households participated in HHW programs in 1993, with an average
participation rate estimated at 7%.
In Ontario, it is estimated that there are 86,000 tonnes of HHW generated per year. (Sinclair
1992). Of this, only 1910 is disposed of appropriately.
Ontarios HHW programs recovered approximately 5,000 tonnes in 1993.
The mix of HHW is about 80910 paint and crank case oil. The balance is made up of batteries,
cleaners, pool chemicals and garden chemicals.
The cost of collecting, treating and disposing of HHW can be as high as $3,500-$3,800 per
tonne. (Markham and Toronto 1992 experience)
MOEE funding for HHW collection only provides 50 per cent funding up to a maximum of
$15,000 per HHW collection day. However, the typical cost for a municipality of 125,000
population is $100,000 per waste day. Large urban communities have costs which are
considerably greater.
The Canadian Petroleum Producers Institutes (CPPI) Used Oil Action Plan (1992) is intended
to collect and recycle approximately 250 million litres across Canada each year. (October 1994
Hazardous Materials Management)
To date, over 350 depots have been setup in Ontario and are voluntarily accepting used oil
from do it yourselfers. The majority of the used oil is being sent tore-refiners in the region.
(October 1994 Hazardous Materials Management)
The average American discards 15.8 household batteries per year. This is 1.2 pounds or 530
grams. (April 1994 Waste Age)
Home hardware has a pilot in London where they take back their own brand of paint at all
eight of their stores.
Mercury levels in high performance alkalines in the last few years have dropped from 1.5% to
0.025% or in some cases zero. (CBMA)
65
Better Government Lower Cost Implementation
The New Municipal Mandate Recommendations
Backgrounder on the Blue Box Program
B
B
B
B
B
B
B
.
B
B
B
B
The Recycling Advisory Committee (RAC) was formed in 1985 to advise the Minister of
Environment on recycling.
On July 30, 1990 the Ontario Minister of the Environment James Bradley announced the
replacement of the Recycling Advisory committee by the Waste Reduction Advisory
Committee (WRAC), effective September 1, 1990. WRAC advised the Environment Minister
on the development of policies, programs, regulations and any legislation required with respect
to the 3Rs and comporting of wastes generated by municipal, commercial, institutional and
industrial sources, as well as HHW.
In February 1991, the Minister of the Environment announced two goals for Ontario in its
Waste Reduction Action Plan (WRAP): to reduce the amount of waste going to disposal in
Ontario by at least 25 per cent in 1992 and by at least 50 per cent by the year 2000, compared
to 1987 disposal. The Waste Reduction Office (WRO) was established by the MOE to help
meet this challenge.
In February 1992, WRAC released the Shared Model for the management and financing of
a new waste management system. It presented a new, equitable cost-sharing and operational
approach that would encourage an increase in 3Rs activities. It spread the responsibility from
the generators, where it has traditionally been, back to producers of products, in part. It
provided a framework for both public and private sectors to work co-operatively toward the 50
per cent goal. One of the main principles of the shared model, was that no sector should be
held responsible for the 3Rs without also being given the authority to control the manner in
which it fulfils that responsibility. MOE never commented on the model.
In November 1992 the Grocery Product Manufacturers of Canada (GPMC) proposed a
packaging stewardship model, a national industry-led program that would put in place a long
term, economically viable and affordable packaging stewardship program. The model suggested
imposing levies on packaging according to its weight. The levy would then be adjusted in stage
two to reflect the differential costs associated with the management of each packaging material
type. It also called for a back-drop regulation to be implemented in each province to ensure a
level playing field.
A comprehensive initiative paper (#5) dealing with the issue of financing of 3Rs activities and
an analysis of the various funding models presented to the MOE, was expected to be released
by the WRO in early 1993. This paper was never released.
In April 1993 the Province gave municipalities increased powers to develop and operate 3R
programs by introducing the Municipal Statute Law Amendment Act 1993. The law gave clear
municipal legislative authority for waste management activities.
In March 1994 the 3Rs Regulations became law. The regulations require municipalities with
a population over 5000 to provide recycling, back yard comporting and leaf& yard collection
After successive requests from AMO, finally, in September 1993, the MOEE indicated its
intention to focus on an incentive based product stewardship type funding proposal.
MOEE held discussions with the Canadian Industry Packaging Stewardship Initiative (CIPSI)
members in late 1993 and early 1994. On June 8, 1994, the MOEE released the CIPSI proposal
for funding packagings share of blue box costs for consultation.
Packaging or final consumption packaging is defined as all products which are intended for use
by individual consumers. In the Blue Box this includes all plastic, steel, aluminum, glass and box
board (ex. cereal boxes) containers and packages.
Paper products can be defined as newspaper, old corrugated cardboard, telephone books,
magazines, fine paper etc. that are commonly found in the Blue Box.
66
Better Government Lower Cost
Implementation
The New Municipal Mandate
Recommendations
B
.
B
B
9
B
.
.
Since 1990, in response to the numerous waste management reports and proposals of the
Province, AMO has called for a review and discussion of alternative funding models for
Ontarios various waste management systems.
AMO has focused on the principles that Ontario must move to implement product stewardship
systems which move financing from a reliance on the tax base to producer and consumer based
charges and which are economically and environmentally sustainable in the long-term.
AMO has urged the Province to continue all waste management funding programs while details
of new financial arrangements are worked out with the private sector.
In particular, AMO has urged that the Blue Box and HHW programs are not financially
sustainable and that more producer responsibility is required.
AMO has always taken the position that municipalities shouId have adequate opportunity to
review and comment on all stewardship proposals prior to any final government decisions.
On June 8, 1994, the MOEE released the Canadian Industry Packaging Stewardship Initiative
(CIPSI) proposal for funding packagings share of blue box costs for consultation AMO
indicated that the Association welcomes the consultation process and will be taking the lead on
the municipal review of the paper and the preparation of a municipal position.
At its November 25th meeting the AMO Board of Directors acknowledged the leadership
CIPSI has shown in proposing funding for the packaging portion of the Blue Box program.
However, the Board resolved that the Association cannot accept the CIPSI proposal in its
current form. The Board argued that numerous amendments, as outlined in AMOs position
paper, need to be made to the June 8th CIPSI proposal.
The AMO resolution requires that the CIPSI proposal be revised along the lines set out in
AMOs position paper; that the paper producers be brought into the negotiations and that a
funding proposal for paper products be developed; and that both of these items should be
brought back to AMO for endorsement.
Fast Facts on the Blue Box Program
B There are approximately 200 municipally sponsored recycling programs in Ontario.
B The Ontario Blue Box program has grown from servicing under 500,000 households in 1987 to
approximately 3,600,000 households (80% of total) in 1993. (OMMRI overview Oct. 1994 and
WRB)
B The Ontario Blue Box programs currently service approximately 9,000,000 people or about 87%
of the total population in Ontario. (RCO and OMMRI)
B Over 525 municipalities have recycling programs. (WRB)
B Approximately 460,000 tonnes were diverted by recycling programs in 1993 as summarized
below. This is a nine fold increase from the 50,000 tonnes diverted in 1987. (OMMRI and
WRB)
ONP and Magazines: 239,000 (52%)
Old Corrugated Cardboard: 37,000 ( 8%)
Metal Containers: 74,000 (16%)
Plastics: 9,000 ( 2%)
Glass: 92,000 (20%)
Other Materials: 9,000 ( 2%)
B More than 95% of all materials collected in Blue Boxes are re-manufactured into useful new
products. (OMMRI overview, Oct. 1994)
67
Better Goverment, Lower Cost Implementation
The New Municipal Mandate Recommendations
B Ontarios Blue Box programs cost approximately $83,000,000 in 1993 to operate.
B Who pays for the Blue Box costs? (RCO, WRB, and OMMRI)
Material Revenue: $16,000,000 (19%)
OMMRI (Packaging Users): $ 2,000,000( 2%)
OMMRI (Paper Users)
Province $25,000,000 (30%)
Municipal Taxes $39,000,000 (47%)
. The Ministry will sunset operating cost funding for recycling programs on March 31, 1996.
68
The Association of Municipalities of Ontario
The Association of Municipalities of Ontario (AMO) is a non-profit
organization with membership from approximately 700 of Ontarios 815
municipal governments, representing over 95 per cent of the provinces
population. The mandate of the organization is to promote, support and
enhance strong and effective municipal government in Ontario.
Towards fulfilling this mandate, AMO undertakes a range of activities
on behalf of its membership: develops policy positions and reports on issues
having an impact on, and of general interest to, municipal governments;
represents and expresses the municipal viewpoint to other levels of government
and authorities; represents the municipal sector in intergovernmental
discussions and negotiations; informs and educates governments, the media
and the public on municipal issues; markets innovative and beneficial services
to the municipal sector; and maintains a resource centre on issues of municipal
governance.
Dr. Anne Golden,
Chair,
GTA Task Force,
393 University Avenue,
20th Floor-2001,
Toronto, Ontario
M5G 1E6
BOX No. 1000
100 JOHN WEST WAY
AURORA, ONTARIO L4G 6J1
727-1375 889-3109
FAX: 727-4993
Dear Dr. Golden,
On behalf of the Council of the Town of Aurora, I am pleased to submit our document entitled
Form Must Follow Function.
Although we agree that some significant retooling is required, we do not believe that blowing up
existing structures would either be advisable or productive, until the rationale for doing so has
been comprehensively truthed out.
By reading the preamble, you will notice that although there is always room for improvement, the
Town of Aurora has a lot to be proud of. We still fundamentally believe that local municipal
government is best positioned to provide access and respond to the community. We also
understand that we have a responsibility to participate in the identification of solutions which will
allow the Greater Toronto Area to be coordinated and operated in a more cost effective and
efficient way.
We believe that our document provides a logical, orderly and common sense approach to address
this formidable mandate and we would urge you and the ]members of the Task Force to give it
serious analysis and consideration, as you continue the exercise of preparing your findings and
recommendations for the Premier of Ontario.
We have taken the liberty of attaching to our submission, the responses which were received as
input to our public meeting which was held on September 26, 1995. We hope you will find these
letters to be a refreshing reality check, since they represent a wide cross section of our Aurora
community ranging from the Aurora Chamber of Commerce to Caitlin Miller, a 7 year old
resident of our community.
G.T.A. Task Force Submission
Town of Aurora
Page 2
Finally, we want to fervently express to you that we very much want to participate in the
significant exercise which lies ahead. We very much want to be part of the solution and not part
of the problem. If we can assist the process in any way or if you require any additional
information or clarification concerning our submission, please contact me at your convenience.
p.c. GTA Municipalities and Regions
Frank Klees, M. P. P., York MacKenzie
,..
FORM
MUST
FOLLOW
FUNCTION
Th e Gold en Ta sk For ce
1 9 9 5
AURORA BELIEVES THAT
FORM MUST FOLLOW FUNCTION!
Preamble
T
he Town of Aurora is a growing and
prosperous community of 34,000 people,
which began its existence with the opening of
Yonge Street in 1796.
We are proud of the quality of life which we
are able to provide for and with our citizens.
We are proud of the levels of service we have
been able to maintain, despite economic
constraints, the Provincial Expenditure Control
Program and the Social Contract.
We are proud that we have had a 0% increase
in the mill rate for the past 4 years. (We just
dont brag about it as much as some of our
neighbors!)
We are proud that we have no debt!
We are proud of the condition of most of our
existing infrastructure and we understand the
financial challenges ahead to maintain it.
We are proud of the strong relationships we
have developed and nurtured in York Region
with the other levels of government and the
private sector.
We are proud of the way we have managed
our growth challenges, while still maintaining
our small town sense of community.
We are proud of the fact that we are able to
deliver existing levels of municipal services for
only $5.06 per resident, per week (although
there is always room for improvement).
We are proud of the quality and contributions
of the businesses in our community.
Mostly though, Aurora is a Town Which We
are Proud to Call Home!
Fundamental Principles For Change
T
he members of the Task Force might be
led to wonder why a small Town like
Aurora would feel compelled to make this
submission. First, we subscribe to the notion
that you are seeking quality not quantity.
Secondly, we are very concerned about what
we perceive to be a momentum which has been
created by the media and some of our GTA
colleagues; to alter Municipal boundaries and
political jurisdictions first, without doing a true
business case analysis.
The notion of blowing up the existing
GTA configuration and fixing the pieces
later does not sit well with us.
There needs to be a concerted and genuine
effort to analyse the functions of our existing
levels of government and services within the
GTA and measure them against some
fundamental principles, standards or
benchmarks.
Once the quality, effectiveness, efficiency and
economic competitiveness of these functions
have been comprehensively truthed out, only
then should a jurisdictional, political form be
contemplated and proposed.
We have not seen any empirical financial data
to support the perception that bigger is better
or cheaper.
We would submit to you that at the very least,
the following fundamental principles must be
tested and verified, before changes are made:
1.
2.
3.
4.
Costs to provide existing levels of service
must be proven to be less.
Any overlapping or gaps in government
responsibilities must be identified and
eliminated.
Once duplication of services has been
addressed, the taxpayers must know
clearly who is accountable and
responsible for the delivery and
performance of each of the services they
receive.
Once the who and the what have been
clearly determined, a definitive finding
mechanism should be confirmed which
allows the appropriate level of
government to deliver the service,
without being held ransom to the transfer
payment or finding whims of another
level of government.
5. Services must be provided at the
governance level which is best positioned
to nurture, enhance and respond to the
local community. Effective and efficient
dont always mean cheapest, particularly
if taxpayer access to local government is
greatly reduced or eliminated. Our view
is that our common client (the taxpayer)
wants access to government.
6. A GTA wide 20 year plus strategic plan
must be developed and GTA wide bodies
must be created and empowered to plan
and address cross municipal, area wide;
B
Waste Management
B
Transit and Transportation
.
Networks
B
Water and Sewer Infrastructure
B
Economic Development and
Competitiveness Within the Global
Marketplace.
B
Land Use Planning
B
Protection of the Environment
Recommendations -
A Potential Recipe For Success!
T
he Town of Aurora wishes to submit the
following recommended courses of action
to deal with the GTA Reform issue for
consideration, analysis and truthing out,
prior to the implementation of any
political/jurisdictional quick fix solutions.
- 2 -
A. The Province
(1) We support the notion that the province
must continue to be responsible for
setting Provincial policies, standards and
guidelines.
(2) A simplified, flexible legislative
framework must be provided by the
Province, thereby creating operating
parameters to ensure that municipalities
have the ability to get on with providing
their services to inhabitants in an
appropriate fashion.
(3) The Province must recognize and confirm
that the GTA is the economic engine of,
Ontario and Canada and therefore
requires concurrent status. The Province
must accept its responsibility to exert its
authority on a big picture, GTA wide
basis (not on an individual, municipal
basis). Instead of an Office of the
Greater Toronto Area, a Ministry of the
GTA is required to replace the multiple
Ministry bureaucracies which inhibit and
frustrate day to day municipal operations.
Although the province is reluctant to give
the GTA special status within the context
of Municipal Affairs . . . it must have the
conviction to get through and beyond this
mindset!
(4) once the province has set policy, it must
get out of the way and let municipalities
deliver the goods! Get rid of all the
(5)
checkers in Agriculture, Community and
Social Services, Education, Environment,
Government Services, Health, Housing,
Management Board, Municipal Affairs,
Natural Resources, Transportation and
Treasury. Trust municipalities to carry
out policy and only inject checkers
where policies and trust have been
compromised. This initiative alone we
believe, will save millions of dollars.
The province should create a Greater
Toronto Area Advisory Forum which
would include the Mayors and Regional
Chairs of all existing or future
municipalities. Before making any
decisions directly impacting the GTA, the
province would always formally seek the
advice and input of the GTAAF. Then,
through the Minister of the GTA, it
would make policy, standard and
guideline decisions.
(6) We suggest that the new Ministry of the
GTA establish six (6) individual GTA
Planning and Policy Commissions which
would report directly to the Cabinet
Minister of the GTA and provide advice
and recommendations for the following
GTA-wide initiatives;
B
Waste Management
B
Transit and Transportation
Networks
B
Water and Sewer Infrastructure
- 3 -
(7)
.
Economic Development
B
Land Use Planning
B
Protection of the Environment
(Conservation Authorities would
continue their mandates but link to
this GTA Commission)
Each of the GTA Planning and Policy
Commissions would be comprised of
EXISTING non-elected experts from
within the Provincial government, from
the designated service deliverers and from
the private sector. Their broad and
consultative mandate would be to
recommend GTA wide strategic game
plans, policy, standards, guidelines and
legislative solutions to the Minister of the
GTA who would then seek formal
political input from the GTAAF, before
bringing final recommendations to
Cabinet.
As a result, no new level of government
would need to be created, the 6
Commissions would be directly
accountable to elected representatives at
the province and the province would be
obligated to follow a formal GTAAF
consultation process, before enacting or
implementing new GTA initiatives.
The province must move towards a
common and consistent assessment
valuation process. It can do this most
effectively by:
a) Phasing in the new process for all
(8)
b)
GTA municipalities over a ten year
period.
Showing immediate leadership in
stopping the City of Toronto/905
communities divisive discord on this
issue. The City of Toronto is the
heart of the GTA which is at least
the economic engine of Ontario.
The solution is not solving
Torontos tax issue on the backs
of the 905 communities. Rather, a
province-wide solution must be
contemplated if Provincial
intervention and assistance are truly
required to allow the City of
Toronto to phase in the new
process successfully.
The province must comprehensively
address the cost, efficiency and
effectiveness of Ontarios education
system against the same Fundamental
Principles for Change benchmarks, and
a) If appropriate, identify potential
form linkages with municipal or
regional government, and
b) Examine alternatives to the present
system of property tax finding for
education.
B. Regional Government
We believe there is a need for a redefined
level of Regional Government within the
GTA. Although Regional Government
- 4 -
does require fine tuning today, if it is to
meet the test of The Fundamental
Principles For Change, it has served its
purpose well and has the potential to
continue to do so, particularly in York
Region.
(9) A redefined Region of York should be a
service delivery vehicle, not a big brother
to local municipalities. It should be
responsible and accountable for:
a)
b)
c)
d)
e)
f)
Policing.
Public Health Services.
Regional Waste Management
operations and following the
policies, standards and guidelines of
the GTA Waste Management
Commission.
Regional Transit operations and
following the policies, standards
and guidelines of the GTA Transit
and Transportation Network
Commission.
Regional Water and Sewer Supply
and Treatment Facility operations
and administration (including
billings) and following the policies,
standards and guidelines of the
GTA Water and Sewer
Infrastructure Commission.
Social Services (Subsidized
Housing, Child Care, General
Welfare Assistance, Long Term
Care) until the Regions and the
province have had an opportunity to
determine who is best positioned to
deliver social services in both a cost
effective and close to the
community manner. This will
ensure that both the real and
perceived levels of duplication are
eliminated.
g)
All property assessment
administration responsibility.
(10) In our opinion, the Region of York
should not be responsible or accountable
for the following services which it
currently provides;
a) Land Use Planning
b) Road Construction, Maintenance
and Operations
c) Local Water and Sewer Distribution
Systems (piping under local roads
should be dealt with in a seamless
way with road construction and
reconstruction).
C. Local Municipal Government
We believe that given the
recommendations we have proposed for
Provincial and regional governance, a
redefined structure and service provision
level is required for local municipal
governments in the GTA.
- 5 -
(11) A redefined Town of Aurora should
continue to be a service delivery vehicle
and should be responsibleand
accountable for:
a) Fire and Emergency Services
(pending the completion and
analysis of the functional and
structural analysis by the Region of
York Fi re Servi ces Revi ew
Committee).*
b) All Land Use Planning and
following the policies, standards
and guidelines of the GTA Land
Use Planning Commission.
c) All Road Network Infrastructure
within the municipality and
following the policies, standards
and guidelines of the GTA Transit
and Transportation Network
Commission.
d) Local Water and Sewer Distribution
Systems (watermains and sewers)
so that infrastructure life cycle
maintenance can be planned in
concert with road works.
e) All Parks and Recreation/Leisure
Services.
f) All building related matters.
advantageous and t o seeki ng
potential and viable public and
pr i vat e s e c t or j oi nt
venture/partnership opportunities.
h) All Clerks Related Functions with
the added initiative of reviewing the
f easi bi l i t y of administering
Provincial elections.
i) All Human Resources Related
Functions with a new formalized
commitment to share resources with
both public and private sector
partners, particularly in the area of
staff training and development.
j) Library Services
k) Economic Development, since the
retention of existing local business
is critical. The municipality would
work in partnership with the GTA
Economic Development
Commission.
New ways of delivering these services
must be explored, including increased
involvement and contributions by the
private sector, with a view to reducing
costs.
(12) In our opinion, local municipa
governments should not be accountabl
or responsible for:
g) All Treasury related functions with
new formalized commitments to
cooperative purchasing where
- 6 -
a) Water and Sewer Billings (although
physical payments could still be
made at City and Town Halls).
b) Fire and Emergency Services,
central dispatch, communications,
training, and apparatus acquisition
and maintenance.
c) Waste Management (pick up,
recycling, landfill).
d) Transit,
IMPLEMENTATION
A
urora believes that a timeframe of at least
one year is required to truth out our 12
recommendations and the many others the
GTA Task Force will receive, against the
Fundamental Principles For Change.
(2)
During this one year period, we would
recommend that:
(1) The province fully analyse and where
possible implement;
a) the enabling legislative changes
necessary
b) the creation of a GTA Cabinet
Minister and Ministry
d)
e)
f)
g)
the creation of 6 GTA Planning and
Policy commissions answerable
directly to the province, through the
Minister of the GTA (thus not
creating another level of
government)
the creation of a common and
consistent assessment valuation
process.
the elimination of all Provincial
Ministry checkers, thus redefining
the Provincial/municipal
relationship and basing it on trust.
A complete analysis of the cost,
efficiency and effetiveness of
Ontarios education system.
The regional and local municipal
governments should be given the
responsibility to analyse and test our
recommendations and the many others
the GTA Task Force will be receiving,
against the Fundamental Principles For
Change. They should be charged with
the task of bringing back a new product
to the Provincial table which best
satisfies these criteria.
c) the creation of a Greater Toronto
Area Advisory Forum (including all
Mayors and Regional Chairpersons)
- 7 -
CONCLUSION
A
urora is convinced that this one year
exercise has the potential to realize
enormous savings, without even entertaining
the negative conotations of perceived power
grabbing political boundary altering mind sets.
This negative thinking puts everyone on the
defensive and prevents the shared nurturing of
creative, entrepreneurial, flexible and
innovative solutions to what should be
financial challenges, not geographical
challenges.
At the end of one year, lets collectively (all
levels of government and the boards of
education) take stock so that we and the
public can critically analyse our progress.
Only then might it be necessary for all of us
together, to work on a potential next phase of
the exercise, which might be to truth out the
pros and cons of consolidating existing
municipalities or eliminating regions.
- 8 -
PROVINCE OF ONTARIO
Greater Toronto Area
MINISTRY OF THE
GREATER TORONTO AREA
SIX GREATER TORONTO AREA
POLICY COMMISSIONS
\
/
LOCAL LEVEL
WATERSHED
REGIONAL
SERVICES
SERVICES LEVEL SERVICES
I
MUNICIPALITIES
CONSERVATION
AUTHORITIES
REGIONS
\
Town of Aurora
Recommended Concept
Concept Details
Greater Toronto Area
Advisory Forum
(All GTA Mayors &
Regional Chairs)
Ministry of the Greater
Toronto Area
------------------------------------------------
GREATER TORONTO AREA PLANNING AND POLICY COMMISSIONS
Land Use Economic Protection of the Water & Sewer
Transit &
Transportation
Waste
Planning
Development Environment Infrastructure
Networks
Management
B
LOCAL LEVEL
WATERSHED REGIONAL
SERVICES
SERVICES LEVEL SERVICES
I
MUNICIPALITIES
CONSERVATION REGIONS
- - - - - - - - - - - - - - - - - - - - -
Land Use Planning
B Watershed Planning B
Roads
Policing
B Storm Water Quality B Public Health Services
Water & Sewer Distribution
B Storm Water Quantity B Waste Management
Parks & Recreation/Leisure
B Recharge Areas
Building
B Transit
B Flood Plain Mapping B Water & Sewer Supply& Treatment
Economic Development
B Wetlands B Social Services
Library Services
B
B Political, Legislative &
Policy (GTA Wide)
Decisions.
B Formal Political Input &
Consultation.
Final Legislation/Policy/
Standards/ Guidelines
Formulation
(PLANNING)
B Planning and preparation of
GTA Legislation/Policy/
Standards/Guidelines
B Expert Research, Advice
and Consultation,
(Service Delivery)
B Service Level
Deliverers
121 Tyler Street
Aurora
Ontario L4G 2N4
PO Box 1000
Aurora, Ontario
L4G 6J1
MUNICIPAL RESTRUCTURING
I well remember that on the occasion of your inauguration you said that the full realiz
that you were mayor struck you when, in the very early hours of inauguration day, a
resident of the town called you to ask you what you were going to do about the brok
water main on Machell Avenue. How often do Barbara Hall or Alan Tonks pick up th
bedside phones to deal with public works problems on the Danforth, or wherever?
town life may be hard on our mayors, but it is great for the citizenry.
I would not want to see a merger of Aurora with any other municipality. No doubt ou
community could maintain some of its character even if we were part of some huge
everything-from-Steeles-to-Lake-Simcoe conglomeration: even the worlds largest c
made up of many neighbourhoods. But, in addition to maintaining all those intangib
inexplicable things which go into making a sense of community, I want to continue t
able to call up the mayorIll try to avoid the middle of the night!-- any one of ou
councillors if I have a problem. If appropriate, I would probably try a staff person fir
and I like knowing that the public works people do not have to check some massive
index to figure out where Tyler Street is, or that Sandra will let me search through old
assessment rolls because she knows me and knows that I can be trusted.
Ill leave it to others to ask those nitty-gritty questions about staffing levels, tax
implications, and increased or decrea se d services. All those matters are of concern to me,
too, but my main reaction to the notion of amalgamation is emotional, not practical. I
much want to be able to go on saying to outsiders, In Aurora, we . . . And I am will
pay for that privilege, so far as I am able. And, finally, I want the opportunity to form
register my opinion on this issue, by means of a referendum.
Jacqueline Stuart
c: Chamber of Commerce
29 August 1995
The Editor,
Era-Banner,
Newmarket, Ontario.
To the Editor of the Era-Banner:
Most people agree that government in York Region and the Greater Toronto Area
(G.T.A.) must be reformed to meet the challenges of the next century, But why are so
many of the reformers promoting the simplistic idea that bigger means cheaper? For
example, advocates of the amalgamation of Aurora and Newmarket think that their ideas are
justified by economy. Are they really? Will we need fewer employees to collect taxes in
Aurora-Newmarket? Will we need fewer employees to assess development applications in a
combined planning department? Will we need fewer employees to look after parks, arenas,
and cultural facilities in a larger community? And how much will it cost to build the new
Aurora-Newmarket municipal offices? The only people who would be sure to lose their
jobs would be elected representatives, most of whom work for far less than the average
civil servant. Many volunteers who now work on town committees would find that their
services would no longer be needed or would be less likely to offer their services in a
larger, more anonymous municipality.
If we want to see how big government really works, we need look no farther than to York
Region itself with its nonelected chairman and grossly overpriced new headquarters. York
Region began with high hopes that it could effectively co-ordinate the affairs of a large
area, but took over twenty years to develop its first Official Plan!
We could also look to many parts of England where towns, cities, and whole counties were
amalgamated over twenty years ago with disastrous results in many areas. The trend today
in many of these places is to try to recreate smaller, more manageable units of government
where elected officials are held responsible by the people they represent.
Many of our problems stem from the fact that a large part of the G.T.A, s growth has come
at the expense of the City of Toronto and parts of Metro. As jobs, industries, and
ratepayers have been lured to outlying areas by cheaper land and lower taxes, core areas
have experienced economic decline along with higher costs for social services and public
welfare. In addition, the burden of paying for roads and public transportation, enjoyed by
commuters from outlying areas, has fallen disproportionately on the shoulders of city
taxpayers.
Until we come to grips with the real costs of urban sprawl, we wont be able to solve the
problems of the G.T.A. Tinkering with the boundaries of Aurora and Newmarket will do
nothing but remove local government farther from the citizens it is supposed to serve.
15342 Yonge Street,
Aurora, Ontario. L4G 1N8
To: The Editor
Era Banner
853-4626
Caroline Rowan
841-0549
Solving the problems of the GTA
1 dont pretend to understand all the workings of local governments, nor do I
want to. However it appears to me, that the GTA needs to consider two major areas,
before going any further with its idea of amalgamating York Region.
Firstly, what is the real problem, the real cause, not the symptoms that makes the
GTA want to look at amalgamation? Are they going to solve it by the amalgamation of
smaller communities? I believe that the GTA is grabbing at straws, dealing with symptoms
and not determining or addressing the real issues. Problems do not go away by themselves,
They need to be clearly identified and a clear plan of action developed, Outcome measures
must be determined and constantly evaluated. Has that been done? I suggest it has not, If
it has, then why is no one communicating it to the people who live in York region? SO far,
no one has convinced me of the value of clumping a group of communities together, I
chose to live in Aurora, because I wanted what a small community has to offer, and after
eight years it is still surpassing my expectations, 1 dont want that to change, unless there
are some very valid, concrete reasons.
Seoondly, if you look at a number of the large companies today, they are breaking
down the larger conglomerates into smaller more manageable and, more importantly,
profitable units. Perhaps, we should consider this aspect, before jumping to conclusions,
Yes, I know Mississauga is debt free, so is Aurora. Perhaps a lot of that success has to go
to the dedicated people who run those communities and their strong visions and plans.
Just because something has worked well in one area does not automatically mean that it
will be as successful elsewhere. It scares me to think of moving forward on anything
without solid direction, Perhaps we would be better cooperating with one another and
moving slowly to consolidate services, where it makes sense. Bigger is not necessarily
better.
I urge each citizen to let their mayor and council know now how they feel and not
to wait until its too late, We can not afford the luxury of disinterest.
Caroline Rowan
39, Spence Drive,
905-841-1552
Aurora
September 8, 1995
Ti m Jones
Mayor of Aurora
Dear Mayor Jones:
Would you please bring the following to the attention of your council at your
earliest opportunity. I have released this information to the local papers in the
form of a press release. I would appreciate any comments you may have.
The current review of the GTA provides the opportunity to re-evaluate the way
civic and government services are organized, administered and delivered, We
believe that the optimal model for service effectiveness and efficiency is the
current regional policing model. And whatever government structure is adopted
for the GTA, the regional policing model should be kept for policing and applied
to fire, garbage, hydro and other municipal services,
After working with this model for more than 20 years, Ontarios regional police
departments have learned how to make the system work. It is not a stagnant
model, but one that continues to be adapted, modified and improved.
Although resisted initially and certainly not perfect today, our current model
provides the most effective and cost-efficient service to the residents of (Mario.
In fact, York Regional Police has consistently year after year, provided the lowest
cost per capita of policing in the Greater Toronto Area,
We are currently at a point where service effectiveness and macro cost
efficiencies arising from economies of scale are at or near their optimum . In
other words, the current system is the right size and the right type of organization
for the populations to be served.
Enlarging the units of organization via the Super Region plan would result in
diseconormies of scale. A return to smaller municipal departments would
eliminate many of the cost efficiencies and service improvements achieved over
the past 20 years,
We believe that the institution of a Super Region police service would inevitably
lead to prioritized policing, instead of the desired goal of community oriented
policing. Under prioritized policing high crime areas receive a disproportionate
amount of the available police resources to the detriment of other areas, which
also need a regular poIice presence to be kept safe.
**42
T
H
E
AFFILIATED 1971
CITIZENS OF AURORA PREPARE TO DEFEND YOURSELVES!!
A recent headline story m the Era Banner quotes a Markham Councillor suggesting that SMALL TOWNS MUST GO.
What are the real issues?
Too much government? Too many layers of government? Too many elected officials?
Too many municipal employees7 Too much waste? Not enough accountability?
IS the current rage for amalgamating municipalities and rationalizing government really about giving taxpayers value for
money or is it about granting increased power to some elected officia/municipal employees over the lives of others?
Too little government or government at the wrong level or with the wrong priorities may be no better than what we have
today. Isnt a more efficiently managed, independent Aurora a alignment that costs us our
independence. We need the facts about the cost of government uirements of our taxpayers.
According to Marc Neeb, CAO for the Town of Aurora the average homeowner in Aurora pays about$11 per week m
taxes for the services we receive from the Town. We pay about half that amount for the services we receive from the
Region and we pay three times that amount or $33 per week for education. The question is what level of service do we
get from eacof these sources? Its also a question of what services we should expect to receive and what those services
should cost. No doubt some services are better performed at a higher level of government; in the case of transportation
for instance GO Transit should be a Regional matter whereas local busing should be a local issue. Surely we need to
develop a matrix of required services to be funded by the public purse and decide the level at which they should be
provided. And we need to keep asking the questions -is government doing the things it should be doing? - are we getting
value for money? - is there some more efficient manner of delivering the required level of service? - can we afford all the
services were paying for today? Maybe we have to accept less of some services - like snow removal - maybe we can only
afford to remove snow twice a day rather than three times; or maybe its based on six centimetres of buildup rather than
two? But we need to be given the facts about services and their costs so we can establish priorities.
If services dont increase or taxes arent reduced then any changes proposed arent the right ones. The next few months
promise to be very exciting es the various levels of government try to stake out new ground. If you dont want decisions
about OUT Town made by people such es Alan Tonks, Mel Lastman, John Cole, or the like, get involved - learn the facts,
considering the talk to your neighbors, talk to our Town councillors, the Mayor and the Towns staff. Decide what
makes sense to you and then let others know where you stand. Make your views known. Send your comments to the
Aurora Chamber of Commerce Public Policy Committee, c/o the Chamber Office, Attention Jim McAlpine.
Council is planning a special meeting for7:O0 PM September 26 at which time the public is invited to share its views with
the Town. Council has also scheduled two further meetings to obtain staff input on the future of Aurora as an
independently governed municipality -- September 13 at 6:00 PM; September 20 at 5:00 PM. These meetings are also
open for public attendance. Watch our local newspapers for further details and plan to attend. In the meantime, if you have
any comments give mea call at 841-0800.
19 Parkland Court
Aurora, Ontario
L4G 3M5
September 21, 1995
Mayor Tim Jones
Town of Aurora
100 John West Way
Box 1000
Aurora, Ontario
L4G 6J1
Dear Mayor Jones:
Re: GTA Restructuring
I hope it is not too late to voice my opinion. on Mr. Kings idea of restructuring the GTA, in
particular, York Region.
Our region has enjoyed phenomenal growth over the last 20 years, and in many cases, the
services have struggled to keep up with the expanded growth. However, Aurora is unique -
completely different from our neighbors to the north and south, and I will fight tooth and
nail to see that it remains that way.
One of the main reasons I voted for you as Mayor was because you believed in controlled
growth. With Mr. Kings idea looming over our heads, that would no longer be possible.
I grew up North York, specifically Willowdale, and once Mel Lastman took over the helm
and North York became a city, it was never the same. Quiet family neighbourhoods were
demolished for high-rises, the crime rate rose, the beyond the glistening Mel Lastman
Square, remaining neighbourhoods were allowed to deteriorate to almost ghettos.
I will not stand idly by and see our wonderful town destroyed as we know it. Community
spirit runs high, we have excellent facilities and utilities (granted our taxes are high to pay
for it) and our streets are still safe. My forward-thinking children feel the same way. They
love Aurora the way it is, and they are our future tax-paying citizens.
Thank you for inviting the publics input in this crucial matter!
Susan
-
Miller
/sm
September 26, 1995
TO THE MAYOR AND MEMBERS OF COUNCIL, TOWN OF AURORA
B !
The mission of the Aurora Chamber of Commerce is to support the development of business in
Aurora. Our chamber with more than 700 members represents in excess of 60% of the
businesses in Aurora. We are proud to be part of the Aurora community.
For several years our Chamber along with other Chambers throughout the province has been
frustrated by the unchecked expansion of government throughout Ontario and the intervention of
many government and quasi government agencies into the lives of Ontarians. Small businesses
have especially suffered as the imposition of ever increasing taxes on businesses, property
owners and consumers as well as the imposition of various legislated reporting requirements
have become such a burden that we risk killing the goose that laid the golden egg. Without
wealth creation we will not be able to fired the research innovation and education required to
maintain our competitive position in a shrinking global economy. And if we dont provide an
environment which rewards and encourages wealth creators to form new business enterprises in
our community we will force them to relocate to environments more conducive to their needs.
Our forefathers and many of todays business leaders came to this country because it represented
a new frontier without the barriers to wealth creation and class distinctions that drove them from
their native land. If fwe do not quickly embrace a return to the principles of private enterprise
and small government that existed in the first half of this century those who choose to remain in
Aurora and Ontario will be the losers.
We view the challenge to our present government structures and to todays educational system ,
that was evident in the most recent provincial, municipal and school board elections as a call to
action that must be heeded. We are encouraged that the Harris government is pursuing its
mandate of spending control and deficit reduction seriously. We view the appointment of the
Golden Commission as a positive step in re-evaluating the role of government in the GTA. It
provides the first opportunity in many, many years for citizens and local and regional
governments tore-evaluate the basis under which they have operated before the creeping growth
of government with its layers and layers of bureaucrats, like a we@ chokes the life from
Ontarios productive heartland.
The reality is that no business could have survived the bungling that has occurred generally in
governments throughout Canada for so long.
- 2 -
We hope this review is only the first step in a pervasive re-evaluation of all the chokers that
exist in our economy, like uncontrolled spending by too many school boards, like public utilities
that arent accountable to the public yet whose decisions can make or break the success of a
perfectly sound and highly beneficial business venture, like elected officials who refuse to take
advantage of the economies of scale because doing so might result in a diminution in their
personal authority.
We are pleased that Aurora Town Council has prepared a position paper for submission to the
Golden Task Force. We are also pleased that their paper appears to recognize the duplication of
effort that exists between the regional and the municipal levels of government. We applaud their
position that for many services provided by government government close to the electorate is
the most effective. On the other hand their proposal recognizes that some services can be better
provided at a different level where critical mass allows the required services to be delivered
more efficiently. The place where we believe more work needs to be done is in defining the
minimum services that the population needs to have performed by government at all. From
there, a determination can be made as to the cost of such services and how they are to be
provided. At the same time it is necessary to re-examine the way government services are
funded. We have income tax property, tax sales tax, value added tax, lotteries, betting tax,
utility users fees, development charges, unemployment insurance taxes, workmens compensation
taxes, pension taxes, health insurance taxes and many more. Many people dont have to pay for
anything anymore so theyre not concerned with what things cost and they never have to learn to
manage their limited resources. Most people can go to a doctor (public health care) or a dentist
(private health care) and never have to reach into their pocket to make payment so they dont
know and ultimately dont care what things cost. This is not a healthy situation. Its like having
a lifetime human warranty system. Our taxing structure and social safety net need to be re- ,
examined to make sure theyre not adding to the problem instead of solving the problem.
The staff submission calculates that the cost of delivering existing levels of municipal service in
Aurora is $5.06 per resident, per week. The Towns 1994 audited financial statements reveal
that a further $4.33 per resident, per week is collected on behalf of the region. Taxes collected
on behalf of school boards amounted to $15.64 per resident, per week. Thats a total of
$44,377,270 collected from Aurora residents in 1994 to fund the requirements of the town, the
region and for education. Wow! ! Education represents 60/0 and were told 50/0 of that is spent
outside the classroom! And what about the conservation authorities and local utilities, such as
Hydro? Are they structured in the most accountable and cost effective ways?
- 3 -
The staff report refers to fundamental principles. Our recommendation is that the overriding
principle must be cost reduction. More service at the same cost is not an alternative. We already
have more than enough service. Another fundamental principle would be to ensure that any
changes made increase accountability. Finally, we believe that increased private sector
employment should take precedence over increased public sector employment. Every effort
should be made to outsource service delivery to the private sector. Take a brief look at the
automotive sector. The entire recovery of the North American car companies can be linked to
their decision to focus on design engineering assembly and distribution. Today Chrysler is
more of a marketing company than a manufacturing company. In fact most of the
manufacturing is done by suppliers. And look at the diffrence in the rate of turnaround among
the big three. Chrysler has come the farthest the quickest and it outsources the most
approximately 70%. GM on the other hand only outsources about 30% so its still loaded with
bureaucracy thats slowing its recovery. Surely governments job is policy, planning program
design (maybe), communication and accountability. Outsource the remaining functions to the
private sector, like tax collection transit (remember what happened to CN and Air Canada?),
etc.
We also need to re-evaluate everything we do in light of the information age which will cause an
even more rapid rate of change in all areas of our lives, including government. In this area we
are not aware that any submission has been fully developed in terms of the impact of technology
on govemrnent, nor do we think government can or should develop the staff competence to deal
with this complex area. Here too, we believe a strong argument exists to rely on expertise that
exists profitably in the private sector to determine how government can best employ technology
in carrying out its limited functions.
In summary, we believe the Town of Aurora has benefited from having its own elected council.
Wc agree with the staff submission that there is no compelling evidence that redrawing the
boundaries within York Region Will improve government. We believe the pace of growth and
the type of development in Aurora is preferable to that which has occurred in Newmarket and
Richmond Hill to name just two of our neighbors who might have wanted to impose their
dreams on our community. We dont believe they should be given that chance, either by
changing boundaries or by further empowering the region!
Overall, we support the position taken in the Towns FORM MUST FOLLOW FUNCTION
submission, although we do not subscibe to fundamental principle number 2. We already have
more than enough services provided by government Furthermore, we believe that any changes
made must result in increased accountability. We also feel that the emphasis should be on
private sector employment versus government jobs. Wherever possible opportunities for
outsourcing should be pursued.
- 4 -
We encourage Council in the months ahead to aggressively pursue the principles enunciated in
its submission and we encourage the Golden Task Force to study the alternatives carefully and
to use the unique opportunity afforded by this review to eliminate many of the impediments to
business that have been allowed to flourish over the past several decades. Together we must re-
establish a frontier in the GTA for the 21st century.
Respectfully Submitted on Behalf of the Aurora Chamber of Commerce
To the Mayor and Council c / o The Clerk
I have tried to be a vigiliant upholder of democracy. As a
responsible citizen I have been a supporter but also
suspicious of government and a lifetime of observing with
some exceptions have found some suspicions justified.
And now with money scarcer governments are looking for
sources of money. (Could it be that the province and
Metro, will raid Auroras till.)
The proposals of amalgamation to save money maybe true
in the short run, but I find it is never in the interest of the
citizenry to increase government jurisdictions. Our
governments at all levels, but especially the senior
government, have grown out of proportion to other
growth in our society. Given more reign, governments
have grown even to indebtedness.
Though I admit to not knowing what the specifics of the
proposals are with the exception of a blanket sense of
takeover, I believe this proposal could in the long run lead
to more government.
I would therefore propose a vote for Aurora citizenry be
taken on the matter. It is very simple to conduct a vote
with electronic --voting by computer. Switzerland
conducts 6 or 7 votes a year for all its citizens. I believe
Red Deer, Alta. has the electronic machinery to allow all
its residents a vote on issues several times a year in the
true spirit of democracy rather than just to elect politicians
from term to term. And there are other communities in
Canada able to have plebiscites throughout the term.
California has had a number of general plebiscites in the
past. Therefore do inquire into obtaining the voting
machinery on loan. The provincial leadership of the PC
party was done for all its registered delegates via computer
brought to the people.
I think we, the people of Aurora should know the
specifics of the proposal by the province and then be
allowed to vote as to whether we are in favor, yes or no.
My conclusion is we are only as healthy, economically
and in otherways in relation to how our institutions serve
us and allow for innovation. I believe institutions are
presently with very few exceptions often self-serving and
because this is so epidemic and especially in government
where it is systemic, one cant blame individuals but say it
is in fact in the nature of institutions.
Therefore institutions like government must be held up to
checks and balances and one way to do this is to let the
citizenry they serve, vote on measures and issues to be
undertaken by government. I believe plebiscites should be
held often and will become standard practise. The
machinery is available to make government by frequent
plebiscite possible and efficient. The old adage,
Whoever pays the piper, calls the tune is a truism and
we the taxpayers are the ones to decide how we will be
governed and how our money will be spent.
Groo Bannerman
174 Evelyn Avenue
Toronto, Ontario
CANADA M6P 2Z7
(416) 763 8765
Monday 25. September, 1995
Dr. Anne Golden
Chair, GTA Task Force
393 University Avenue, Suite 2001
Toronto, Ontario
CANADA M5G 1E6
Dear Dr. Golden:
Executive Summary:
I have examined the submission of the Metropolitan Toronto
Council to the Greater Toronto Area Task Force carefully. I
am in complete agreement with all of the proposals ideas,
barring some small qualifications of emphasis. As a political
maneuver, I consider the plan extremely clever, and I am very
impressed by such strong evidence of political competence-
More pertinently. I think this bird could fly.
Background:
Demographically, I am a single male Anglo-Saxon in my
mid-forties. I have a formal Grade 10 education and have
made it partway through Grade 11 somewhere between five and
ten times. My income level is near the lowest; I am dependent
on Canada Pension Plan disability and Family Benefit Allowance
support. I am presently trying to discover if I can earn my
living as a freelance writer. I am a rationalist, not a
humanist. Because I am a realist, I am a social and fiscal
conservative.
In my view, the Metro proposal to the GTA Task Force is
being made against a background of enormous and very dangerous
socio-political forces. The socialist mixed economy of Canada
RECEIVED
- 2 -
is an abject failure and that has been conclusively proven.
Only the provincial governments of Ontario and Alberta in all
of Canada are making any effort to bury the countrys decom-
posing economic system and truly govern.
Unfortunately, all the governments of Canada, especially
on the federal and provincial levels, have painted themselves
into a corner in which all the economic reforms so essential
to the survival of the nation are trivial in comparison to the
political reforms necessary. This is irrefutably true of the
federal government, which threw away any claim to legitimacy
in power decades ago.
For an entire generation, since the election of the
monster PET, Canada has been ruled by ex-colonists of France
and their figureheads. No other government in Canada, on any
level, has done anything to correct or even protest this inter-
national disgrace, as if the permanent ethnic-based minority
rule of a so-called democracy was normal or acceptable in any
nation of the world. Whatever the pretension towards democracy
in Canada, the practical political reality has become the
effective dictatorship of an ethnic minority- The federal
government of my birthplace is completely and totally illegit-
imate, possessing no moral authority whatsoever, and that has
been the political reality for almost thirty years. By every
fundamental principle of political science, the government of
Canada is not normal or acceptable. My homeland is the laughing-
stock of the entire world.
The women of European descent in Canada have refused for
more than twenty years to bear enough children to keep the
countrys population from falling. Because they prefer abor-
tions to children, my countrys so-called government has been
driven to an utterly indiscriminate and frantically desperate
open immigration policy just to keep the labour force of Canada
anywhere near a sustainable percentage. The federal government
has founded this policy of panic on little more than the
- 3 -
bribery of a guaranteed socialist welfare state mindlessly
eager to take absolutely anyone. Predictably, this policy in
practice has not always attracted the highest quality of new-
comers.
The illegitimate government of Canada has encouraged an
influx of peoples from more than a hundred nations with what
seems an entire absense of foresight, planning, or preparedness.
The decision-makers and their advisors appear to be simply
ignoring or denying the facts that the much greatest part of
these peoples bear with them centuries of historical and cul-
tural antipathies, not only to the European descendants of
Canada, but to many other of the peoples among their own numbers
as well.
Every level of government in the entire country seems to
have no coherent policy or practice planned or in place to
deal with the inevitable conflicts in our society except to
plead with everyone to get along with each other or else, and
then wring their hands and whimper when, of course, people do
not. The best any government has been able to come up with
is to pass legislation making it unlawful for people to say
they dislike anyone- The passing of unenforceable legislation
is a universally recognized proof of inferior and irresponsible
government.
In what may very well be a related development, the crime
rate everywhere in the nation is skyrocketing above any govern-
able level. Virtually every government in Canada seems frozen
in terror by the rising tide of populist demands that they
actually govern and do something about crime and criminals-
All the evidence demonstrates that the only solution every
government in North America has been able to imagine to prevent
their grip on power dissappearing in the public demands for
action is to order the deliberate and premeditated falsification
of their own statistical crime rate reports. The evidence is
overwhelming that the governments of the U.S. and Canada have
- 4 -
adopted a policy based on the deliberate
own citizens. Most blatantly in Canada,
deception of their
the various levels
of government have used all of their diplomatic persuasion to
convince the most influential media to report these inane and
laughably obvious absurdities as if they were straight news,
with an accompanying assault of propaganda in commentaries
and editorials to make people think their concerns about crime
are all in their minds.
This ridiculous policy and practice shows an absolute
failure of governance. It does not, will not, and cannot
have any effect whatsoever on the continuously rising crime
rate. On the contrary, it will only conceal the causes until
they are far beyond any treatable stage less than a Draconian
and desperately aggressive surgery. The exposed deception is
certain to only increase the growing disillusionment, cynicism,
and anger of the public.
The enactment of this mindless policy is the complete
abnegations of any moral authority to govern. When the only
solution to rising crime rates and public demands they do
something about it a government can imagine is a propaganda
campaign to convince their citizens the problem does not
exist, then no legimate government exists.
Aboriginal Canadians openly engage in organized operations
of civil and criminal disobedience with armed rebellion. Their
historic claims are no more just than those of any minority
ethnic group that takes a dislike to its territorys govern-
ment. Every citizen in Canada sees that aboriginal criminals
are not punished. They are held above the law by every level
of government, in a direct destruction of one of the most
primordial principles of justice. Every citizen in Canada
can see there is
should not apply
one obey the law
The numbers
no reason why the excuses made for aboriginal
equally well to themselves. Why should any-
when everyone sees some people do not need to?
and percentages of abstaining voters are
- 5 -
increasing with every election term of every level of govern-
ment, almost everywhere in the nation. On all levels, the
governments of the entire country are confronted by the hideous
and disastrous fact that an ever-growling number of the public
are simply ignoring their governments authority.
On every level, almost every government in Canada is
plainly running scared from the swelling tide of populist
demand for political reform. In a pathetically desperate
attempt to keep their hold on power, and all the accompanying
perks and privileges of power, politicians and bureaucrats are
spinning like weathercocks in winds they cannot even see, let
alone lead. They just dont get it. If a government wants
to be recognized as a legitimate moral authority, then it must
govern.
Elementary Economics:
The first and most important problem with all government
in Canada, on all levels, is that public sector unionist
employees are obscenely overpaid- That is the central problem
of the economy of the Greater Toronto Area. It is the central
problem in the economy of Canada- The amount of money involved
is not the real issue- Where the problem rests is in the
example that governments set as a standard for their citizens.
If elected and appointed officials want and intend the people
to think they are serious and sincere about governing, then
they will solve the problem of their own employees obscenely
over-inflated wages first, before they do anything else-
The Metro proposal to the GTA Task Force speaks feelingly
and repeatedly about the vital needs of competitiveness in the
GTA and a robust city core. Poor Mr. Mulroney, a sadly flawed
and cowardly leader, made many attempts to express the need for
competitiveness in the Canadian economy,
in a manner which was
much too diplomatic and over-polite.
Permit me to be tactless.
- 6 -
Competitiveness means lower wages.
Let me repeat. Being com-
petitive means deflating wages.
At the same time, productivity
must be maintained or increased, thus increasing economic
efficiency, and therefore lowering prices.
Look at Japan, and learn the lesson. Wage and price
inflation is not the way to go. Look at America, and make the
comparison. If the various governments in Canada want to keep
any moral authority to govern, then they should lead. They
must lower the pay scales of their own employees first.
Stated explicitly, I do not mean the payroll expenses of
the municipalities in the GTA are too high and that they should
therefore reduce their payroll. That may be realistic in many
cases, but it is not what I mean. My meaning is clear, and
every private citizen knows it.
Virtually every public sector
unionist employee is paid far too much for doing far too little-
1 seriously and strongly doubt more than two or three out of
every one hundred come anywhere close to earning their pay.
I doubt many more ever even try.
Public sector unionist employees in Canada are paid at
least twice the fair market value of their labour. The govern-
ments of the Greater Toronto Area must reduce the gross pay
and fringe benefits of every single one of their unionist
employees, and they must reduce those pay scales dramatically,
by at least half- They must begin doing this before they do
anything else.
Keeping wages frozen while the national economy inflates
at around 2.5 percent a year is nowhere near good enough.
That
fiscal and monetary practice may seem conservative and prudent
given the notorious stickiness of wages and prices.
In reality,
however, it is just over-cautious. Look at Japan and see where
being over-cautious will get us.
The need for wage deflation
in Canadas economy is urgent-
Public sector unionist pay scales require a sharp shock,
followed by a steady series of steps downwards over a set,
- 7 -
planned period. A first step of somewhere between 10 and 20
percent in one year, followed by reductions of between 5 and
10 percent in each succeeding year, on top of the national
inflation rate, would be reasonable and realistic. My personal
assessment is that the most important considerations are to
pick one planned sequence, implement it, and then stick to it.
No matter what happens, dont stop.
At the same time, the governments of the GTA should do
everything in their political power to persuade and influence
the provincial and federal governments to repeal every labour
law they have on their books. Most significantly, every level
of government must eradicate every piece of legislation related
to any kind of minimum wage.
Obviously, in pragmatic political and economic terms, a
legally defined minimum wage cannot be erased overnight. The
minimum wage in Ontario, at least, could only be deflated in
a series of reductions over a planned duration, probably years
in total- But it must be done starting now.
The size of each reduction should be substantial. The
bottom end of the market can absorb wage cuts with much more
elasticity than the middle or top end, because the total size
of the labour force is much larger. An initial cut of 20 per-
cent, followed by a series of 12.5 percent reductions every
six months, for instance, would have the minimum wage in Ontario
down to a more realistic level quite quickly- There should
never be any doubt, however, in the government or the people,
that the only goal is the complete and absolute elimination of
anything like a minimum wage.
Equally obvious is that the governments of the GTA and
Ontario must also cooperate simultaneously in the complete and
total elimination of every form of welfare and social assis-
tance. The reduction and elimination of a minimum wage would
clearly be pointless while everyone on welfare continued re-
ceiving more than the minimum.
- 8 -
Some people might be surprised that a person dependent
on social assistance advocates its abolishment.
Experience
has shown me that almost all such people fit into the humanist-
leftist stereotype, which is an extremely predictable type of
human behavior. Because members of this stereotype live in a
world of denial which does not recognize the existence of
facts, describing reality to them can be very difficult. They
cannot admit that any such thing as objective reality exists,
because to do so would evaporate the fantasy universe they
carry around inside their heads like a rivermist in the sun-
rise. However, 1 will try.
Being a welfare recipient does not stop my brain from
working. I can still recognize facts, whatever my emotions
about them.
Number and measure are the bases of all science. I am
one number one out of millions of ones. The measure of every
penny my society spends supporting me is completely and totally
wasted. The other members of my society receive no benefit
whatsoever from their contribution to my support. Just the
opposite. The redistribution of their income to me is a drain
on their own resources, the resources of any family they also
contribute to, the resources of every business in my national
community, and the resources of every level of my governments,
as measured by their increasing debtloads.
These facts are not some expression of subjective bias
caused by my hypothetical low self-esteem or any such psycho-
babble. My self-esteem is just fine, thank you-
Anyone who
knows me will testify that I possess an exceptionally strong
and healthy ego.
That every penny spent on me by my fellow citizens is a
waste of resources is a simple statement of fact.
Humanists
and leftists may not like the existence of someone like me,
who can look at his own place in his society with such dis-
passionate objectivity, and who is willing to tell others the
- 9 -
simple truth. After all, their entire edifice of folly and
lies is utterly dependent on no person ever being permitted
to tell the truth. When there is only one small twitch of a
reasonable doubt in public opinion, their whole house of cards
comes tumbling down.
The truth is still true, and the simple truth is never
simplistic. The rhetoric that simplicity is simplistic is
only one more humanist-leftist lie.
If I am disabled from working, then that is my problem,
no one elses. The idea that the people in my society who do
work and are successful should be taxed and burdened with
government debt to support me is not even rational, let alone
reasonable. My own governments are sinking deeper into debt
every day paying out more in social services and other foolish-
ness than they can collect from their tax base. How could any
person imagine this system is intelligent or sane?
The elected representatives of my governments are the
people who are supposed to lead me. What kind of example do
they set for their own citizens when they do not even bother
to control their own mounting debts? These are the people who
are supposed to be my leaders?
If I am cut off social assistance and I commit a crime,
then I should be thrown in jail where I would belong-
The
story that it is cheaper to keep me quiet and passive on a
guaranteed income than in prison is just arguing in circles.
If prisons were as unpleasant as they should be, then they
would cost next to nothing to operate.
If prisons were proper-
ly designed to be extremely unpleasant places, they might even
make a small profit. That is the way prisons should be de-
signed. What kind of lunatic would plan a prison to be a nice
place to live?
Additionally, my society and governments are not only
wasting the money they tax and borrow to allocate to me, plus
all the administrative expense of the redistribution.
They
- 10 -
are wasting that total sum of money twice: once in giving it
to me, and once again in the opportunity cost they throw away
by not allocating those resources somewhere else. Somewhere
useful and beneficial, such as debt payment.
Naturally, I am paying in lost opportunities also. In a
sane society under good government, that had no welfare and
no minimum wage, at least I could try to work for my living,
by my willingness to work for a lower wage than my competitors
in the labour force. In a good society, I would almost cer-
tainly still be poor, but whatever standard of living I enjoyed
I would have earned. In that kind of society, I would be
given opportunity, not a cage of charity. If I failed, so be
it. At least I would know who was responsible. But to
deliberately imprison me inside this invisible cage of internal
exile: How could anyone be sick enough to imagine
compassion?
Welfare and minimum wages woven together into
web across every door to opportunity does not even
level of deliberate cruelty; it is simple sadism.
I have tried the alternative of living on the
this is
a spiders
reach the
streets-
Several times. Integrity is a cold meal, and honour is a
thin blanket. Eventually I realized that I had nothing left
of either to defend or protect.
But I can still recognize my worth to my society.
I see
it in black and white every month in the mail. 1 will not
turn off my mind and refuse to look at facts simply because
they are painful- They remain facts, and my feelings about
them are meaningless. My emotions do not affect any fact in
the slightest.
My society is more important than I am.
That is not a
subjective opinion; it is a simple statement of fact. The
survival of my society is more important than my survival.
More important to my society, and more important to me.
Some people will always be incapable of understanding
- 11 -
something so simple and so basic.
What
animal desires while harming my society
not benefit me or anyone else.
benefits my selfish
and my government does
So long as the dual system of social assistance and
minimum wage exist, then I and any other would be a fool or a
lunatic not to use it to survive- That does not mean the
system is good or even rational. It is neither.
No words could ever portray the spiritual pollution by
guilt and shame the system causes. I could never express how
accepting charity from my fellow citizens really makes me feel,
because I could never hold my hands steady enough to write
down those words.
Economics remains a social science; its architecture is
built from the equally related hierarchies of mathematics and
biology. The fact that the laws of economics are built with
the laws of mathematics and the laws of biology is a contro-
versial subject in todays primitive society. To me, it is
only sad that I live in a society in which something so simple
as a fact is controversial.
To people so foolish that they cannot even acknowledge
that such a thing as a fact even exists, however, anything can
be controversial. They would quarrel about the colour of the
sky if they thought they could get away with it.
All their convictions are still just pagan superstitions.
Humanist-leftists are fond of saying this decade that any ideas
and facts they disagree with are not supported by any avail-
able evidence. What they always fail to say, because humanism
and leftism are founded on nothing but foolishness and deceit,
is that no evidence supports their positions either.
The hot
air of rhetoric can make any argument appear reasonable with
enough cunning rhetorical fallacies. Content is the only thing
that counts, not the fancy fashion of pre-packaged talk.
Only
objective fact is real. Emotionalism about fact is meaningless-
The fact that all the social sciences, including political
science, are based on
ably the most awkward
so I will outline the
- 12 -
the primordial laws of biology is prob-
fact for humanist-leftists to cope with,
implications of that fact first.
To a humanist-leftist, any discussion of biology related
to people smacks of completely imaginary abstracts they label
by such terms as determinism, eugenics, and fascism. The fact
that no person has any idea what any of these words mean is
irrelevant to a humanist-leftist. To a humanist-leftist, words
mean whatever they say words mean. The real meaning of facts
is something they avoid at all costs- They therefore ignore
the reality of biology, in the hopes that it will go away.
To any competent behavior geneticist, however, the biology of
human behavior is obviously undeniable.
Unfortunately for the feelings of humanist-leftists, the
facts are simple. There is no such thing as social Darwinism.
There is only Darwinism. The only significant question is
very simple: Either Darwins Theory of Evolution is true, or
it is not.
If Darwins theory of evolution is correct, then it applies
to the human species in exactly the same way it applies to
every and all species on this planet. If Darwins theory of
evolution does not apply to our species, then the theory is
false. The humanist-leftist premise that people are somehow
uniquely separated from all other species of life on this
planet is, if I can be forgiven saying so, not supported by
any available evidence.
The laws of biology apply to our species just as they do
to any other species, and to all species in our ecology- The
human species has superior members, and average members, and
inferior members, in exactly the same way any other species
does. That fact may sometimes be unpleasant, and even ugly,
but unpleasantness and ugliness does not change its factual
nature. Life is often unpleasant and ugly. Just ask any
family doctor.
The
No other
leftists
First we
- 13 -
sole source of every social science is human biology.
foundation is physically possible.What humanist-
cannot understand is the hierarchy of cause and effect.
are born animals:then we are socialized. We are
not social animals because we have a society; we have a society
because we are social animals.Biologically, genetically,
instinctively, social animals. Politics does not create
society; society creates politics.Economics does not create
societies; societies create economics.The foundation of it
all is human biology. The only rational basis of all social
science is the animal behavior, or ethology, of our particular
species. Any other imagined foundation is only fantasy.
We are born, live, and die animals.The vastly greater
part of everything we do is genetic and instinctive. Pre-
tending that is not true only prevents us from realizing the
real causes of our actions.We will never understand our
social behavior while we pretend it has no biological basis.
Economic systems which interfere with the natural ecology
of our social environment can only damage human society and
the human species. No other effect is physically possible.
Income redistribution is pollution. It is polluting waste.
Poverty must be unpleasant and ugly.There is nothing what-
soever wrong or incorrect about that; it is only unpleasant
and ugly.
Equally, whatever the consequences of skewed statistics,
the laws of mathematics do not lie.Whenever humanist-leftists
whine that a particular policy or partice will only place
another burden on the backs of the poor, for instance, I always
try and imagine where else they think a strong and stable
society could be built on,if not on the backs of the poor.
The strongest and most stable pyramid has the broadest base.
A society built on a narrow foundation extending up into the
clouds is just a tower of fools waiting to be toppled by the
slightest external force.
- 14 -
Where else would a social burden be placed, for heavens
sake, if not on the backs of the poor?
They are the greatest
number of people in any society.A load on their shoulders
is spread out most evenly and equitably, so that each person
supports the least possible amount of the total.
I will never
understand people who cannot do simple arithmetic.
I would dearly love a humanist-leftist to show me one
civilized society in all the worlds history which was not
built on the backs of the poor.Including our own present one.
The overwhelming majority of poor people are just as decent,
upstanding citizens as those of any other class in society.
There is no reason to fear and hate poor people, and there is
no reason to fear and hate poverty.There is nothing wrong
with poverty, and there is nothing wrong with the poor.They
merely have less money than other people.
The poor are perfectly capable of carrying the burdens
of society, if and when they are given the opportunity to do
so. An economic system of welfare and minimum wage which pre-
vents the poor from being given the opportunity to work for
their living cannot ever be equitable or just. It is only a
cage for people viewed as beasts-
Whatever the propaganda of humanist-leftists, and what-
ever the character weaknesses of some individuals, Canadian
society will not become any more crime-ridden over the long
term when the social assistance system is abrogated. To say
it will is a gross and unforgivable insult to almost every
poor person who has ever lived.Throughout history, people
living in poverty have been no more criminal than the people
of any other class,and it is sheer bigotry to say otherwise.
Poor criminals may be caught more often, but that is a dif-
ferent image. A temporary uptick in property crime would prob-
ably occur, especially if the social (assistance system was
eradicated quickly in large steps.These are precisely the
people, however,which society wants to catch as soon as they
- 15 -
stick their heads out from underneath their rocks.
And our
police forces would have a much easier job of catching them
if they were not so swamped with their current task of con-
stantly re-catching the same criminals over and over again-
The laws of mathematics and biology are real and immut-
able. They are not indications of ideological bias; they are
facts of objective reality. The laws of economics do not
care about me or any other single number, any more than
gravity cares about a falling body or a DNA molecule cares
what the person it built feels about it.
As the far too outspoken genius, Kim Campbell, likes
to emphasize recently, There is only one reality. The world-
view people carry around inside their heads is imaginary. It
is fantasy. We are not living in some fairy tale for silly
little girls; we live in a real world. Reality is not cruel
or kind. Reality is not some pagan animalistic deity with
animal emotionalism. Reality does not care.
Personally, I prefer reality. My experience has been
that no matter how ugly and unpleasant reality can get, it is
always better than the pragmatic implications of any humanist-
leftist fantasy world. I have no desire or inclination to
live in a world of happy-face robots. I will cheerfully con-
tinue to live in reality, thank you very much anyhow.
In the real world, so long as the Greater Toronto Area
is so severely affected by federal and provincial legislation
and policy over labour practices and social services, then
the municipal governments concerned must represent their
citizens best self-interests to the levels of government
above them. Particularity if the governments of the GTA have
any concern for the robustness of their city core and the
competiveness of their territory.
Every factor of socialist economics harms the GTA,
beginning in the core and spreading out like the infection
of a fungus. Rent control damage the GTA severely. Medicare
- 16 -
maims the GTA in every possible form of trauma.
Every kind
of social assistance, from welfare to unemployment insurance
to the Canada Pension Plan to old age security infects the GTA
with a deadly parasite. Almost every piece of labour legi-
slation of Canada and Ontario injures the GTA.
If the politicians and bureaucrats of the GTA are serious
and sincere about supporting Torontos core and the competitive-
ness of this territory,then they will do everything in their
political power to eliminate all of the above. By whatever
size and frequency of cut seems practical, leftist economic
insanities must be removed from the GTA marketplace to open
and free the market,and they must be cut out beginning now.
Personally, I would greatly enjoy seeing every piece of
labour legislation in Canada thrown back into the garbage that
it came from. I am clearly biased, however, and such an idea
is certainly wildly unrealistic and impractical- Analytically,
1 do realize that dissolving any legislation is horrendously
difficult because of the complexity of the legal ambiguities
which almost always result.That is one very good reason why
irresponsible legislation should never be written and passed
in the first place-
1 can insist and demand, in any case, as a birthright
citizen, that the basic principles of good governance be ad-
hered to and followed. Every piece of labour legislation in
Canada is completely unnecessary.What is unnecessary is
indulgence. Trying to change the economics of supply and
demand in the open market with pieces of paper and ink is like
trying to fight the weather.The only way any business could
survive while artificially raising the pay scale of women, for
instance, is by artificially lowering the pay scale of men.
And no business in the world could survive against a competitor
who held to a pay scale dictated by the natural ecology of
the open market.
If the governments of the GTA want to be competitive in
- 17 -
a global market,
then they must recognize and accept economic
reality. A person who cannot tell the difference between
fantasy and reality is not qualified to govern.
Obviously, reducing the pay scale of employees, especial-
ly unionist employees, is hugely more difficult than reducing
payroll expense by cutting staff. Governance is hard work,
probably the most difficult of all human endeavors.
If the
governments of the Greater Toronto Area cannot do it, then
they should get out of the way, and surrender power to people
who can. The idea that something should not be done because
it is too much hard work is a very poor argument.
The growing inarticulate anger of the people in North
America is serious. It is not a trivial or insignificant
political problem and it is not going away. It is not only
the fact that taxes are too high that makes people angry. It
is the fact that they are not getting what they are paying for.
One of the major reasons citizens are not getting what they
are paying for is that they are also paying for the bribes of
the obscenely over-inflated wages of public sector unionists.
Every single financial problem of every government in Canada
and the entire Canadian economy is directly related to the
fact that public sector unionists are paid too much. Solve
this problem and any government in Canada will have made a
gigantic inroad towards solving virtually every other economic
problem of its gee-political territory. The political, social,
and economic necessity is to be seen to be setting a morally
legitimate example.
Fail to solve this problem and any government in Canada
could very well be faced with the open rebellion of universal
civil disobedience- Public sector unionists are despised by
ordinary citizens, and they are despised for very good reasons.
The issue is not just the question of money, whether in bribery
or extortion. The public perception is twofold- The central
issue is the question of money contrasted with the question
- 18 -
of character.
A certain type of person is attracted to work in govern-
ment bureaucracies. The innate character of this type of
person is seldom respectable or admirable.
The premise that
public sector wages need to be high to attract highly qualified
people is silly nonsense.
Millennia of history in every area
of the world has proven conclusively that people of this char-
acter type will always gravitate to government bureaucracies,
no matter what the pay scale. If only the high pay theory was
true.
The only difference between a petty bureaucrat who needs
to be bribed face-to-face and a petty bureaucrat who needs to
be bribed by a grossly over-inflated pay scale is that in the
second case, everyone in the tax territory pays for something
they do not get.
The image of public sector unionists protesting in the
streets and media over conditions which seem trivial to private
citizens who are barely getting by is very bad public relations.
Public sector unionists only look childishly greedy and selfish.
They do not seem to be very nice people. What does that make
their employers?
The problem is not just that these people are grossly
overpaid- The major problem is the repeated images of public
sector unionists publically bragging that they do not think
hard work is a good thing, that excellence and merit are good
things, that effort and achievement are good things, that job
satisfaction and personal motivation are good things, and on
and on and on ... while they whine and snivel and bitch and
moan about how unappreciated they all are .... In the public
view, it is an issue of character. They obviously do not
deserve whatever they are paid.
The two general methods of deflating wages both have
positive and negative consequences- The shock method of large
cuts of 10 percent or more in each step,
with extended periods
- 1 9 -
of adjustment between each step, is very effective and very
traumatic. The gradualist method of about 2.5 percent cuts
every year, although much slower and politically risky in its
own way, is economically preferable. In the basic principles
of conservative economics, wage and price deflation of pre-
cisely 2.5 percent per annum is undeniably the best possible
method.
Unfortunately for everyone, the governments of Canada do
not have any time left for self-indulgence, either of them-
selves or the people. The cancer in Canadas economy is too
deep and too malignant for cosmetic surgery. The choice is
between painful operations and painful recoveries or continuing
decline and decay.
Freezing wages is clearly inadequate. If the inflation
rate continues at about 2.5 percent yearly, then the wage
reduction yearly must be at least 5 percent. That is obvious.
As unpleasant to plan and difficult to accomplish as it may
be, the pay scales of public sector unionist employees should
be less than 50 percent of their current levels within eight
years.
In my view, the only realistic method possible is a cut
of at least an averaged 10 percent per year for the next seven
years. It is crucial to understand that wage deflation in
Canada cannot and must not stop.
Once the pay levels of public
sector unionists are less than 50 percent of their present
levels, then it will be entirely reasonable to begin reducing
those wages at the more comfortable rate of 2.5 percent per
year, assuming, of course, that the inflation rate by then is
at least zero, if not a vastly preferable negative number.
As painful as it may be to plan and live through, wage
shock deflation is exactly what Canadas economy needs. That
is especially true of Ontario and the Greater Toronto Area.
Once again, the argument that something should not be done
because it is too difficult is a very bad argument.
- 2 0 -
The second, subsequent point is also unavoidable.
Dip-
lomatically, each of these economic methods breaks down into
two negotiating strategies. One is to announce when a cut is
made that future cuts are planned. The other method is to not
announce that, and if asked, to deny it-
Employees and public may not believe an employer, but the
question is, can they prove it? Each year, all employers need
to say is that they were forced to change their plans-
What
they said last year they sincerely meant at the time; it was
only circumstances since that drove them to change their policy-
1 am convinced the overwhelming majority of the electorate
would buy this story, whether they believed it or not. What-
ever the reaction of the mainstream media, as long as the line
sounded good, most people would pretend they believed it.
Dishonesty is distasteful and destructive, individually
and socially. Deliberate deception is always moving away from
the direction of good government. A certain amount of deceit,
however, is acceptable and tolerable in any relation, whether
in families, among friends, in business, or even in justice,
religion, and government. Dishonesty is most acceptable when
it is blatant, well-intentioned. and good-natured- The most
meaningful factor is the measure of deceit. Dishonesty does
not merely add up, it multiplies. Deceit is not incremental,
it is compounding. When the amount of dishonesty in a relation
becomes greater than the amount of honesty, then the relation
is destroyed. As long as dishonesty remains the exception,
and that is clearly visible and clearly deliberate, then the
exceptions can and will be accepted and tolerated.
By anyone,
including the electorate.
In regard to almost all social assistance recipients and
public sector unionists, all ordinary citizens and taxpayers
want is to see these selfish, spoiled brats dealt with as they
so richly deserve. I may be exaggerating a general view out
of my own personal bias, but in my best judgement, I am not
- 21 -
exaggerating by much. The fundamental problem with both
social assistance recipients and public sector unionists is
the issue of character-
The Toronto Transit Commission is an excellent example-
Every adult in Ontario must know by now what the resolution
of the current inquiry will be. There will be no resolution.
Three people are dead, and it is simply inconceivable that
any TTC unionist employee might have had any responsibility.
No, the bolt just climbed down and walked away. How ashamed
and humiliated Mr. Gunn appeared to be on the TV news broad-
cast. Obviously, what the authorities want more than anything
else is proof. And nothing will ever be proven. What public
sector unionist would testify against another and tell the
truth?
There is every appearance that at least one public sector
unionist has already gotten away with three counts of criminal
negligence causing death. Apparently no one will ever be
charged with these crimes, and everyone in the electorate
knows it. In the GTA, this is government as usual. Three
people are dead, and only the lawyers care.
And Metro councillors wonder why they dont get no respect.
The deaths of these three people was not a coincidence.
It was a direct, inevitable result of indulgent, careless,
irresponsible governance. Politicians can try and cover up
the obvious truth now all they want. Nobody can ever change
what did happen. No one can change reality by whitewashing
over it. No one can ever erase their responsibility.
The present Toronto Transit Commission structure is the
epitome, or nadir, of bad government. Virtually every element
of the entire hierarchy is inefficient. Top-heavy, over-
staffed, overpaid, the list goes on and on- The TTC is
irresponsible and unaccountable government at its very worst.
Every year the service gets worse, and every year the price
goes up- The mindless greediness and selfishness of TTC
- 22 -
unionists and leftist politicians and bureaucrats are killing
Toronto. I want to avoid personalities, but Im sure any
knowledgeable reader can picture the members of the TTC board
who make me grind my teeth in rage every time they make a
public statement as easily as if I just went ahead and named
them. What can possibly be the point of hiring someone as
competent as David Gunn and then deliberately preventing him
from being able to do his job?
Proposals to combine the Toronto Transit Commission and
GO Transit into one unified system, thus amalgamating all the
unions involved into one monopolistic bargaining unit, have
to take their place near the top of all the most senseless
ideas I have ever heard. The governments of the GTA should
be doing everything in their political power to decertify and
outlaw the unions they have now.Encouraging the growth of
new and more powerful unions is folly beyond comprehension.
Who controls the Greater Toronto Area?Governments
elected by citizens, or unelected, unaccountable, irresponsible
public sector unions? I think it is past time politicians
made up their minds,and did something about it, one way or
another. Who governs in the GTA?
The people and their elected
representatives, or unionists?
If TTC workers were paid anywhere near the fair market
value of their labour, which is far less than half of what
they are paid now,then TTC fares would be far less than half
the price they are now. And the TTC would have many more
riders, perhaps twice as many as it has now.
If the wages and salaries of TTC employees were at a
reasonable and sensible level,instead of the obscenely over-
inflated level they are at now,then the budgetary problems
of the Commission would seem trivial and minor in comparison
to the asinine boondoggle they are now.
The fact that the Toronto Transit Commission does not
make a profit is nonsensical.The only thing obstructing
- 2 3 -
profitability is plain stupidity.
The intricities of specific examples are best avoided,
because firstly, they are so complex no one can say whether
any are entirely wrong or correct. Secondly. and more meaning-
fully, specific examples are unnecessary. All that needs to
be done is to keep bringing the issue back to basic economic
fundamentals. The unionist employees of the TTC are grossly,
obscenely, criminally overpaid. Their pay scales are corrupt.
That is the budgetary problem of the Toronto Transit Commission.
Solve that problem, and every other will be insignificant in
comparison. Refuse to solve that problem. and kiss the GTA
city core goodbye.
What applies to the Toronto Transit Commission applies
to the Transportation (Roads) Department even more emphatically-
The Transportation department of Metro is corrupt. It has
been for decades. Elected officials should do something about
it, or stop sniveling about wanting to be seen as responsible
and accountable. One or the other. They must make up their
minds about what they really want.
On the other hand, deflating the pay scale of police
forces is an extremely high-risk action. Any analysis of the
exact elements of this risk entails a detailed description of
the character types of people attracted to police employment.
This is a subject best avoided in writing entirely.
It must be pointed out, however, that the risks of private
police forces, becoming more prevalent in the U.S. and Canada,
are even greater and more uncontrollable. History has amply
demonstrated that, sooner or later, what the highest bidder
wants mercenaries to do is get rid of the government in power.
The U.S. could very easily be headed towards a complete
breakdown of social order, unstoppable once begun. What could
any level of government do when civil wars erupt between
suburbs? How many border disputes within one urban area could
a National Guard control?
- 24 -
I dont like even the appearance of doom-saying or fear-
mongering, from myself or anyone else. I can only repeat:
look at history. Everyone everywhere has always said it cant
happen here to us. When social forces are combined in the
patterns we see today in the Canada, and most intensely within
the Greater Toronto Area, these events do occur.
They have
happened every single time.
In my view, the character of police in the public service
is very different from those of private police forces. As
difficult as it may be for ordinary citizens to understand,
virtually every police officer really means what they say: to
serve and protect.
My personal assessment is that any public police force
would accept the reduction of their pay scales if, and only
if, they were given the moral support they need for their
morale from elected and appointed officials and the public at
the same time.
No society can survive without police. If it was not for
the police, we would not even have a society, let alone a
civilization. Fence-sitting is not possible on the subject
of crime and criminals. A person is either on the side of
the police and society against crime and criminals, or the
person is on the side of crime and criminals against the
police and society.
What police forces need is to see that their actions are
effective; that they are making a difference- What they need,
like all law-abiding citizens, is to see justice done, and
criminals punished for their actions.
It is pointless to ask a criminologist, or almost any
sociologist, what they think of this fundamental standard of
human justice- Virtually all of them have been educated
under a Marxist school of thought which is founded on the
absolutist denial of any such primordial human reality as an
innate sense of justice.
- 25 -
Whether they really mean what they say or not is meaning-
less itself. If they believe what they have been taught,
then they are fools. If they do not believe the nonsense they
parrot, then they are liars. The distinction contains only
one significant difference.The words of a fool are worthless.
The words of a liar are worse than worthless.
In the case of criminologists and other sociologists,
whose so-called academic and occupational credentials are
worthless in themselves,another realistic difference can be
seen. These kinds of social scientist are not just at best
fools. At best, they are dangerous fools.
The often tragic truth is that we believe what we are
told. It is simply impossible to independently verify every
single piece of information we receive in a single day, let
alone a lifetime- Most of all, under any education system,
people are taught from their first years of schooling to
believe what they read.
Propaganda works. We have been conditioned to believe
what we read. We have been conditioned to believe the visual
images we see in television broadcasts.Visual images are
extremely powerful on an unconscious level, especially moving
visual images. We have been conditioned to believe what we
are told by academics and other authority figures.
Fools and liars destroy. The words of fools and liars
can destroy an entire society.That has happened before.
All that is necessary is for good citizens to do nothing.
The opinion of a Marxist-indoctrinated social scientist
on any subject is worthless or worse, because it is destructive.
They do nothing but damage,injury, and harm to everything
their influence touches.Most importantly, they harm the
repute of real social scientists,
such as social psychologists,
who hold their work tightly to the real world of verifiable
fact, repeatable experiment, and number and measure.
The theory of Marxist criminologists that there is nothing
- 26 -
a government and society can do about crime and criminals is
a falsehood. The premise is not true.. Whether it is the
story of a fool, or a liar, or a fool and a liar is insignif-
icant. The assumption is still false.
What a society and government can do about criminals is
kill them. Reducing the number of criminals in a society
reduces crime. Most importantly, in the long term, over
generations.
Any competent behavior geneticist can testify that the
first cause of criminality is genetic. The theory that
criminality has underlying social causes is a falsehood. The
fairy tale is a reversal of cause and effect. The social
conditions themselves have genetic causes. That is physical
reality, whether anyone likes it or not.
The best way to control crime in any society is to
execute criminals, and to execute them before they have
children. As soon as any criminal passes puberty, at fourteen,
the death sentence must be one available penalty for any
criminal act done with criminal intent. Any other sentence
than the death penalty for any felony committed with intent
is injustice.
The humanist-leftist fantasy told by the monster PET and
every federal government since that a government cannot justify
committing murder is just another humanist-leftist lie. It
is entirely typical of the monsters malignant narcissism.
The people who work in government, elected or not, are only
human. They are just citizens, like every other citizen. A
government cannot set the citizens who are its representatives
above the law. Most of all,
a government cannot set its
temporary custodians above justice.
Many criminals deserve to die.
Humanist-leftists argue
that is playing god, that no one can know whether another
person deserves death or not.
They are liars. It is humanist-
leftists who play god in saying a person does not deserve
- 27 -
death. How do they know? They do not. They are only fools
and liars. No government can hold itself so far above human
justice as to say that a criminal who deserves to die does not.
The death penalty for many crimes is just. No government
can place itself so far above the primordial principles of
human justice as to say that a just punishment is not possible.
That is only insanely unjust.
The citizens who make up a government must serve justice.
They cannot alter law to make justice serve them.
Justice is higher and greater than mercy, and compassion,
and even love. These things make up only part of justice,
and justice is above them all. Only justice is blind. The
scales, the sword, and the blindfold; and the greatest of
these is the blindfold.
The system of justice in Canada has become so diseased
that governments are losing their own citizens to a basic,
primordial, outraged sense of justice. Every citizen can see
the governance of Canada is unjust.
Criminals are not punished.
They are freed. Why but for common human decency should any-
one obey the law when everyone can see that no one needs to?
The first people this systemic injustice affects are the
police. They are people in which the sense of justice runs
strong and cold and deep. In almost all cases, the sense of
justice is their most powerful drive. When that sense of
justice becomes warped and twisted,
it can be extremely des-
tructive.
What the police force of the Greater Toronto Area needs
more than anything else is political and public support-
They
are not the enemy of society, and they should not be treated
like the enemy. Criminals are the enemy of society, and
criminals should be
other citizens, the
the police justice,
in a day.
treated like the enemy-
More than all
police need to see justice done.
Give
and they would give up half their salary
- 28 -
The problems of water supply and sewage treatment are
subjects which I have researched extensively.
I first became
intrigued by the problems of sewage treatment because it is
the lowest level of society in North America, just as it is
everywhere else in the world.I consider that fact interesting.
In my opinion, the social opprobrium attached to sewage
treatment strongly influences what people think about water
supply and water treatment,in ways they are almost entirely
unconscious of. What people think of water is extremely
animalistic. People are not rational at all about water
utility. No government can afford to ignore the intensity of
unconscious feelings which people have about water. No govern-
ment can afford to ignore the intensity of unconscious feelings
which people have about sewage.Water control is probably
the most dangerous possible form of governance.
My conclusion is that the water supply and sewage treat-
ment systems of the Greater Toronto Area must be privatized
as soon as possible- These systems must be sold to the private
sector separately. Water supply is one industry.Sewage
treatment is another industry.Each system must be the private
property of a completely seperate corporate entity, with no
legal or financial connection to each other whatsoever. Under
no circumstances can they have any social or political con-
nection, since they cannot be direct competitors.
No legal ambiguity can exist about the commercial neces-
sity that the entire water supply system running through the
public property of the roads must be the private property of
the company which owns it.Exactly the same principle applies
to the storm and sewage system and the private company which
owns it. The water supply and sewage systems must be the
private property of the companies which own them, and no legal
or political doubt can ever exist over that issue.
The only legal recourse which any government can have
outside common civil law over any malefaction of a private
- 29 -
company operating in water supply or sewage treatment must be
the seizure of the entire company in its political territory.
Anything less than a justification for that action must be
entirely out of the governments legal and political control,
other than the normal access to the courts accorded to any
corporate entity or organization.
Probably the most practical method of privatizing the
water supply and sewage systems of the GTA is by selling the
systems in each watershed to seperate companies, and letting
them work out the sharing of resources between themselves
without political interference. That method would almost
certainly be in the best public interest.
It is irrefutably not in the public interest to keep
these systems under the ownership and control of any level of
government. On the one hand, the opportunities for corruption
are too great. People ignore sewage treatment. They will go
to enormous lengths to avoid thinking about it. A government
bureaucracy can get away with too much, because virtually
everyone will deliberately refuse to look at what the bureau-
cracy is doing, especially not very closely.
On the other hand, the opportunities for indulgence are
too great as well. Based on the current wages of water treat-
ment workers, for example, the cost of water should be at
least twice the present price levels, and probably closer to
three times current pricing.
The water supply industry must be profitable. The sewage
treatment industry must be profitable. It is far better for
the public interest to have those realistic costs and profits
out in the open where everyone can see them, rather than con-
cealed beneath the supposedly benign control of a municipal
bureaucracy-
1 am persuaded that the whole field of public utilities
is directly influenced by the principle of economics which
is now termed moral hazard. Although moral hazard has become
- 30 -
a somewhat trendy buzz-phrase in recent years, I cannot shake
the conviction that these fellows are really on to something.
The idea makes such good sense.
The definition of moral hazard as it originally applied
in economics is only related to loan insurance. Moral hazard
is used to describe one of the risks which occurs during the
insurance of lending. For instance,when bankers know that
the full amount they are lending is fully insured, and there
is no risk whatsoever that they will lose any part of the loan,
then another risk develops that the bankers will become care-
less, and loan so much on such poor collateral that no amount
of insurance could possibly cover the total loss of a string
of many fast-paced defaults.That second risk is the moral
hazard of risk insurance. The collapse of a real estate
market bubble which causes domino effect bankruptcies is a
very good example of the consequences of moral hazard-
Applying the principle of a specific relation in any
science to a more generalized situation makes me very uneasy
under any circumstances. I am convinced, however, that the
concept of moral hazard is applicable to public utilities.
Ontario Hydro, for instance.When the administraters of a
corporation know that the public purse will always cover their
losses, no matter what or how many mistakes they might make,
they become careless,and encounter moral hazard.The citizens
of Ontario will be paying for the senseless errors of Ontario
Hydros administration for a generation, at least.
The potential for moral hazard in the operation of a
public water utility is so great it is almost inconceivable.
The list of things that could go wrong is virtually limitless.
The slightest possibility of carelessness is completely
unacceptable. The private sector is the only marketplace
where people would have so much to lose that they would never
forget or ignore the smallest imaginable risk.
The very last people who should be controlling any water
- 31 -
utility are public unionists, bureaucrats, and politicians.
If anyone has their water supply or sewage outflow cut off,
it must be deliberate, and it must be visibly deliberate.
The responsible and accountable administration of water
supply and sewage treatment in the Greater Toronto Area means
the sale of these systems to the private sector for a very
significant sum of money. The municipal governments of the
GTA would reap significant political benefits from this
privatization as well. It should be fairly obvious, for
example, that the municipalities outside the City of Toronto
with access to the lakefront would immediately become much
more influential in comparison.
As I have stated, the obscenely over-inflated wages of
public sector unionists is the primary, most vital problem
facing all governments in Canada today. Reducing the number
of employees is only an evasion and denial of the problem.
The gross pay and fringe benefits of every single employee
must be reduced as well, in almost every case, by at least
50 percent. That is the only action which will convince the
electorate their governments are legitimate and hold any moral
authority.
Competing in a global economy means lowering our wages,
which will lower our prices. It is the responsibility and
duty of government to lead, not follow or stand still. Leader-
ship is good government. A failure to lead is bad government.
If the governments of the Greater Toronto Area fail to
solve this problem, nothing else they can do will have any
meaning or value to private citizens- They will merely con-
tinue to ignore their governments, in ever-increasing numbers.
When elected and appointed officials do not govern, they can-
not complain that people refuse to recognize their government.
- 32 -
Intermediate Economics:
Background:
I have no hesitation in stating that my views have been
strongly influenced by the work of Nobel economics laureate
Herbert A. Simon,particularity in the areas of bounded
rationality, and, of course, public administration.
In many
respects, I am a proponent of the entire neo-classical stream
of the University of Chicagos school of economic thought.
In this perspective, naturally,it is only tragic that such a
great intellect as was given to Paul . A Samuelson was brought
so low by what is so clearly an incurable delusional illness.
The Greater Toronto Area Task Force should clearly under-
stand the overwhelming importance of a primordial tenet of
classical economics: Governance must be profitable.In other
words, the single sane goal of good government is to show a
surplus every single year,with the sole exception of a war-
time economy.
The superstitious dogma of leftists that a government
cannot be operated like a business is just one more humanist-
leftist fallacy. Humanists and leftists are always so easily
identified by their stereotypical desire for wordy arguments
that are clever and pretty,no matter how empty of content,
rather than plain-spoken arguments founded on fact. Obviously
government is more complex and complicated than commerce.
That is the whole point. Governance is greater than commerce;
it contains all aspects of business within itself. At the
very least it should,and when a territory is well-governed,
it does.
Every government from the first city-states has always
understood that knowledge is power and money is power also.
A responsible and accountable government must be more powerful
than any other single interest group inside its territory.
- 33 -
Business is one such interest group.
A good government must be more powerful than all the
businesses inside its territory put together.
Otherwise,
responsible and accountable governance becomes impossible.
That means a responsible and accountable government must be
more wealthy than all the businesses put together inside its
territory. A government must have more money than all the
businesses inside its territory put together, and that greater
amount of money held in reserve must be visible, overwhelming,
and instantly available.
If this is not the case,good government is impossible,
and, very quickly, all that is left will be corrupted.
A government is an economic entity, like any other. It
must follow and adhere to the basic physical laws of economics.
One of those cardinal laws is the vital necessity of profit.
As with any economic entity,whether an animal in the wild,
an entire ecology, a person, a family, a business, a government
has inputs and processing and outputs.In every case, the
outputs must be greater than the inputs, or the economic
entity stops growing or maturing and begins to die.
The purpose of surplus, or profit, is expansion, or
growth. The purpose of growth is maturation.The purpose of
maturity is reproduction.The purpose of reproduction is
evolution.
Profit is essential to life. Any economic entity, any
living thing which consumes inputs and produces outputs, must
produce a surplus, or die.
Government which is not profitable is bad government.
The necessity of profit branches in two directions.
One
is direct or capital investment, which I will term simply
investment. The other is often called portfolio investment
today, which I will simply call savings-The crucial factor,
sometimes confused or forgotten, is that savings and invest-
ment are not the same thing.They are two completely different
- 34 -
branches of profit, leading to entirely different goals. A
piece of one branch cannot be removed and attached to the
other branch while leaving the same economic entity with the
same evolutionary goals. A government that finds itself in
financial difficulties, for instance, cannot take funds first
allocated to savings and then reallocate those funds to invest-
ment, or vice versa, without changing all of the economic
goals of the government, and in most cases, the governments
entire tax territory.
The use of investment is the maintenance and improvement
of infrastructure and all other fixed assets. No political
territory can survive without investment. Most especially,
no territory can survive without investment against a competitor
that maintains investment.
The present, urgent investment requirements of the Greater
Toronto Area, for example, are mammoth, almost certainly
measurable in the billions of dollars, and probably measurable
in the tens of billions. If the governance of the GTA had
been sane over the past generation, those funds would be
readily available, or more accurately, completely unnecessary
today.
The use of savings is the elimination and avoidance of
debt. The second point is worth repeating again and again
and again and again and again. The primary purpose of saving
is the avoidance of debt.
What applies to investment and competitors also applies
to savings, times infinity.
Just as in the less important case of a business, the
profits of a government should never be excessive.
Precisely
the same economic fundamentals control each case.
The economy
of a territory is similar to the ecology of the territory; it
is greater than all its parts, including all governments, by
an astronomical order of magnitude.
As in an essential
business, such as retail food, a governmental profit of 2.5
- 35 -
percent is reasonable and respectable.
Equally, a profit of
3 percent is excessive.
These figures are not simply plucked out of the air.
Overwhelmingly strong and convincing evidence has accumulated,
for instance, that a GDP growth rate of 2.5 percent is stable
and sustainable, while an inflation rate of greater than 2.5
percent is extremely destructive. Developments over the past
decade in complexity theory, most especially the seminal work
of Brian W. Arthurs theory of increasing returns, has demon-
strated persuasively that the pivotal percentage of 2.7 marks
a type of phase transition point between stability and chaos.
Approaching that point is dangerous. Passing it is traumatic.
In my analysis, the natural logarithm e is directly
related to this economic fundamental.
The pragmatic political problem, of course, is that a
surplus accumulated by any government very quickly becomes an
eye-popping amount of money. Even a municipal government
maintaining an annual supplus never greater than 2.7 percent
would soon show a total sum in reserves staggering in size.
Compounding 2.5 percent of any governments revenues for very
long would be a policy in practice with a very high factor of
risk.
The public perception by interest groups of all this
money being wasted would not necessarily be the greatest
element of risk. This is a principle of political science
which politicians, bureaucrats, and private citizens can only
accept and try their best to live with, most notoriously in
municipal government. The most meaningful criterion can only
be the goal of openly responsible and accountable government.
Elected and appointed officials who want to achieve that goal
cannot afford even the appearance of cowardice.
Most of all,
they cannot afford to give even the impression that they are
most afraid of themselves.
A government that wants to be seen as responsible must
- 36 -
act responsibly. Government that does not, or cannot, govern
the factionalism of its area, including among its own members,
is irresponsible, careless, weak, and cowardly government.
The political principle involved is simply an expression
of Francis Fukuyamas most recent work exploring the theme of
what he calls social trust. Trust can only be exchanged,
with the same carefulness given to any social transaction.
Sooner or later, we must decide that the laws we have now are
good enough, and get on with the real work.
Government should be openly profitable, and only openly
profitable government can ever be entirely responsible and
accountable. A responsible and accountable government can,
and will, never be led by cowards.
The governments of the Greater Toronto Area must make a
profit in order to survive. Those profits should be reasonable
and not excessive. If the governments of the GTA are not
profitable, they will be consistently defeated by every
competitor that is. And beginning in the city core, Toronto
will die.
Currency:
Every way in which the Greater Toronto Area contributes
to the social assistance system of Canada contributes to the
continual debasement of Canadas currency.
The economic principle in action is a very simple example
of Greshams law, commonly stated as, Bad money drives out
good. Sir Thomas Gresham (ea. 1550) first observed this
basic economic law when he noted that when a government began
to debase its currency, usually by adding more and more lead
to their gold alloy coinage, people would spend the debased
currency as quickly as possible,
while they would hoard every
good coin they could get, and never spend them.
- 3 7 -
Greshams law describes a situation in which there are
two types of money. When the two types are exchanged with
each other, their value is equal, while their value for an-
other use, such as the purchase of consumables, is different.
In this situation, the bad money will be used most freely,
and the good money will be driven out of circulation.
Leftist economists say that Greshams law no longer
applies in a modern economy of printed currency. They are
wrong. Greshams law is intrinsic. So long as an economy
has any form of currency at all, Greshams law will operate.
Again, I will use myself as the most objective example.
Because I do not work for my living, my productivity is zero.
Because I am allocated funds from my governments, even though
my productivity is zero, therefore my economic efficiency is
less than zero, a negative number. In other words, my contri-
bution to the GTAs productivity is zero. My contribution to
the
and
and
GTAs economic efficiency is negative.
Every person in my position lowers the total productivity
economic efficiency of Canada. I am only one number one,
there are many number ones like me. The aggregate sum is
a huge fraction of Canadas labour force, Ontarios labour
force, and the labour force of the Greater Toronto Area.
In recent years, Stanford professor of economics Paul
Krugman has made several very public and very undiplomatic
commentaries on the importance of domestic economic efficiency
in comparison with international competitiveness. Although I
do not entirely agree with all of Prof. Krugmans points, I
am in support of his views against his critics who argue that
comparative advantage between nations is more important than
the domestic integrity of any nation. That position is mind-
less. Without a domestic economy,
no comparative advantage
could exist. The fact that most of Prof. Krugmans critics
are leftists helps clarify the issue. They are clearly only
grinding their own axes in U.S. political economics against
- 3 8 -
the bedrock granite of his argument.
Paul Krugman is right. The one best way to improve any
territorys odds in economic competition is to concentrate on
improving the domestic economy of the territory, and let com-
petitiveness take care of itself.Trying to accomplish the
same purpose the other way around will not work against a com-
petitor who uses the first method.
The money which my federal and provincial governments
gives to me every month is essentially counterfeit. I have
not earned it. The fact that one twenty dollar bill looks
exactly like any other is meaningless.If a persons produc-
tivity is zero, and the person is still paid, the amount trans-
ferred cannot possibly be good money.Every penny I receive
debases Canadas currency.
If a nations currency is bad money. where then is good
money being hoarded?
Good money is being hoarded in the financial markets.
In bonds, in stocks, in funds,in offshore direct investment.
and most of all, within the accelerating velocity of money
itself. Within this system of exchange, no nations currency
is good money, although some are less debased than others.
Only the value of the trade between currencies itself is good
money. Loans, mortgages, funds, stocks, bonds, all are debased
currencies; only the value of the exchange between them is
still a pure alloy.
How and why is this of any concern to any government?
That is very simple. Money that is hoarded cannot be taxed.
What can a government do to correct this situation and
recover these fleeing tax dollars?
Stop debasing its currency.
And let its competitors continue down the spiral.
I will restrain myself, with great effort, from commenting
at length on credit cards,
other easy credit policies, and lax
and indulgent bankruptcy laws.
I will only indicate the very
simple equation that consumer spending cannot possibly improve
- 39 -
a territorys economy while growing personal debtload means
the territorys economic integrity is falling.
The economic
fundamentals of an area must be corrected first, before more
consumer spending can have any other effect than greater
injury. This is nursery school level economics.
The governments of Canada have spent themselves into a
position that makes virtually every penny they tax, and cer-
tainly every pennyworth printed,for all intents and purposes,
counterfeit currency. The fact that it is the government
that prints and taxes the currency is meaningless. A govern-
ment performing this kind of action is only debasing itself
into counterfeit governance.
The debasement of our currency is directly related to
what Francis Fukuyama means in his work on the themes of what
he calls social trust,and what he quotes U.S. sociologist
James Coleman as terming social capital.
Unfortunately, the best example of this image in our
society today is single mothers.And their children.
According to the Statistics Canada 1991 Census, the
number of married women in Ontario increased between 1986 and
1991 by 10.9 percent- During the same period, the number of
divorced women increased by 37.9 percent.The number of
single mothers with children under 18 living at home, but
with no child under the age of six, increased at a rate
approximately double the increase in married mothers with
children in the same age categories.
The number of married mothers in Ontario with at least
one child less than six,across all other age-of-children
categories, increased by an average of 10.3 percent-
Across
the same categories,the number of single mothers with at
least one child less than six increased by 51 percent.
In other words, the number of single women with children
under six increased at a rate five times the same increase in
married mothers over the same five year period.
While the
- 40 -
increase of single mothers over married mothers without child-
ren under six only doubled.
What possible explanation could
there be for this extraordinary societal phenomenon?
Any competent child psychologist can attest that any
child under the age of five, and most critically under the
age of three, raised by only one parent.
will almost certainly
be psychologically maimed for the childs entire life.
An environment with a succession of temporary other
parent figures is even worse. The effect is most traumatic
if the absent parent figure is the female. But it has been
conclusively demonstrated that almost any child raised for
the first three years of its life without a constant female
parent figure and a constant male parent figure will be ir-
recoverably. incurably, untreatable, psychologically maimed.
For life.
How any woman could deliberately do this to her own child
is beyond my comprehension.
The individuals in various professional occupations who
have questioned this established principle in the science of
human psychology over the last few years are all noteworthy
for their gigantic vested interest in the treatment of these
children- Virtually every one of these children represents a
steady, reliable patient who can never be cured: almost every
psychotherapists dream.
Abortionists, who make 10 times what any therapist does,
must be eagerly anticipating the surge in business as more
and more of these children hit puberty.
Blaming men for this societal atrocity is merely typical
of the dishonesty and childishness of the people who are
factually responsible. We are plainly dealing with a large
and growing group of bad women. A bad woman is a bad mother.
Tolerance has crossed the line into indulgence, of people
who are already more than self-indulgent enough.
The idea
that any single mother in the Greater Toronto Area who cannot
- 41 -
support her child and herself needs any form of social assis-
tance at all is infantile silliness.Almost any single mother
could obtain gainful employment within a week by the simple
expedient of taking a bus to the suburbs and walking from
door to door, asking for work as a housekeeper in exchange
for pocket money and room and board for her child and herself.
If she took her child with her, and held her voice steady and
her head up with sincerity,she could likely obtain gainful
employment within a day.
Irrefutably, her child would be better off in the home
environment of a real family. Irrefutably, her child would
have a vastly better life. If only these women cared anything
at all about their children.
What the typical single mother wants, more than anything
else in the world, is absolute power over another human being.
They want another person they can regard as their own private
property. They make the men who think of women as property
look like archangels in comparison with themselves.
Almost every single mother is simply a bad person, a bad
woman, and a bad mother. Of course society and government
must try and help these children.But we would be better off
to save our resources,and treat the women who are responsible
for these ruined lives first.They need treatment more than
their children ever will.
The only practical solution to this societal cancer that
any government and society can accomplish is continuous
radiation treatment, at maximum dosage.Single mothers are
bad people, bad women, and bad mothers.What they need from
others is universal public condemnation; to be told exactly
what they are by everyone,as loudly and as often and as
bluntly as possible.
Tolerance is always beneficial.Indulgence is always
destructive. The continual indulgence of bad people in our
society, and especially by all our governments, is only the
- 42 -
continuing debasement of our currency in social capital and
social trust.
While more and more, good social capital, good
social trust, is being hoarded. What is hoarded cannot be
taxed. Bad money drives out good.
Property Tax:
The income
consideration.
derived from property tax
This is the major reason,
governments in Metropolitan Toronto never
is a secondary
for example, that
bothered raising
property value assessments for more than four decades. The
primary purpose of property tax is to provide a government
with a justifiable rationale for the confiscation of private
property if and when the tax is not paid.This is a very
convenient tactic against precisely those pesky and rebellious
people who tend to neglect paying their taxes in order to
irritate their governments.
In economic terms,land and time (or the interest rate
cost of capital),are the bases for all other fair market
values. The sole fair market value of real estate is the
resale value: what the highest bidder is willing to pay.
In other words, fair market value is a cyclical process.
Reasonably simplified for brevity, when the property tax of
real estate increases,the resale value decreases, and the
opposite is not the case. When the resale value of real estate
increases, the property tax does not decrease.
When the resale value and property tax of real estate
are properly adjusted through the cyclical process of fair
market value to a true and accurate value of property inside
a gee-political territory,then the fair market value of real
estate within that territory will show the true and accurate
value of that territorys government.
My evaluation is that all property tax in all of Canada
- 43 -
should be set at the permanent flat rate of 2.5 percent per
annum of the estimated resale value of the property that year.
Since there is nothing practical that can be done about Canada,
the governments of the Greater Toronto Area and Ontario should
go ahead and establish this system on their own, so that the
fair market value of real estate within this province may
accurately reflect the value of their governance.
In a hierarchy of complexity such as an economy, the
bottom level of the hierarchy is also the top level, and vice
versa, of course. The bottom and top levels of economics are
the binary elements of land and time.
The fair market value of land and the fair market value
of time create and cause the fair market values of everything
else in the entire economic system of a territory.
Like any self-organizing, hierarchical, complex system,
an economy is necessarily highly flexible and elastic. Any
intervention in such a self-organizing system, however, also
necessarily entails the binary elements of uncertainty and
risk. When an intervention is deliberately directed at the
economic bases of land or time, the factor of uncertainty-risk
is very high.
Looking at the economy of a territory from the bottom up,
the land value of a territory is the value of the territory.
Land is territory.
-
as business and professional services workers reduces employment in the local consumer service
., . , ;,, ..
35
Source: New York State Department of labor .
industries. We will attempt to estimate the aggregate impact of the loss of each large head office
on non-FIRE private employment. In this part of the model,
by a four-year percent change.
headquarters
will be represented
B. The FIRE Sector
The FIRE sector exerts an independent influence on the rest of the City economy due to
its formidable
earning powerand national client base. Figure 16 shows the remarkable recovery
of FIRE employment after 1977. FIRE employment surpassed its 1969 peak of 464,000 in
and continued to grow to 550,000 until the crash of the stock market in October 1987.
rapid expansion of the FIRE sector from 1977 to 1987 helped to fuel the City economy.
1981
The
The
36
5 7 0
5 2 0
.
4 7 0
4 2 0
3 7 0
3 2 0
60 65 7 0 75 80 90
Source: New York State Department of Labor
loss of 53,000 jobs in the FIRE sector from 1987 to 1991, together with cuts in other local
spending by the financial firms and their employees, severely curtailed employment in other
sectors of the Citys private economy. In the model, FIRE employment will be represented by
a four-year percent change.
C. The state and Local Tax Burden .
In our April 1991 study of the impact of the state and local tax burden on private sector
employment in the City, we demonstrated that non-FIRE employment was more sensitive to the
1 7
a l
extra burden of state and local taxes than total private employment.* This is likely due to the
high proportion of firms with low profit margins in the non-FIRE sectors. Firms with low profit
margins find it difficult to carry the extra burden of state and local taxation that comes with
doing business in the City. Changes in the local tax burden should exert an independent impact
on non-FIRE private employment.
state and local taxes to estimate the
City.
D. The National Economy .
We will use the four-year difference in the extra burden of
impact of changes in taxes on non-FIRE employment in the
To estimate the impact of the national economy on the Citys non-FIRE private sector,
we will use the three-year percent change in industrial production index for durable goods (with
. .
a one-year lag), even though durable goods manufacturing is not an important component of the
. .
City economy. Both the City economy and the production of durable goods demonstrates greater
Cyclical variability
goods combined).
than the aggregate index of industrial production (durable and non-durable
E. The Oualitv of Life Factor
In section V, we argued that the managers of headquarters firms were influenced by the
perception that the quality of life and the quality of City services were declining. These factors
also influence other fins. We will again utilize the crime rate to explain changes in non-FIRE
~.
Report bv the Chief Economist. Comptrollers Budget Office. on the Impact of the Local
Tax Burden on the Citv Economv, Office of the New York City Comptroller, April 1991.
38
employment. We use a 4-year percent change in the City crime rate with a two-year lag.
VII The Model
In the preceding sections,
we present an analysis of factors that may affect location
decisions of corporate headquarters.
set of factors influence non-FIRE
econometric model to estimate these
In turn, the number of headquarters, along with another
employment.
In this section, we specfiy a two-part
two sets of relationships.
The model consists of two equations.
One equation explains the 4-year percent
change in the number of headquarters in New York City shown in Figure 6. The explanatory
factors or variables are the City extra burden of taxation per $1,000 of gross product, the 4-year
difference in the City personal income tax plus commercial rent tax divided by the 4-year
.
difference in gross city product, the 3-year difference in the City crime rate, the relative CPI,
and the 4-year percent change in industrial production.
The second equation explains changes in non-FIRE private employment by the 4-year
percent change in headquarters, the 4-year difference in the City extra burden of taxation, the
4-year percent change in FIRE employment, a 4-year percent change in the crime rate and a 3-
year percent change in industrial production of durable goods.
The two equations are
determined simultaneously.
Where
HQ %CHG,:
TAX, :
PIT-CRT, :
CRIME-DIFF,:
REL_CPL:
IP%CHGt:
NON-FRE%CHG,:
FIRE %CHGt:
CRIME% CHGt:
IPD%CHG;
A 4-year percent change in the number of companies with
headquarters in New York City
New York City extra tax burden per $1,000 of gross product
A 4-year difference in New York City personal income tax and
commercial rent tax divided by a 4-year difference in gross city
product
A 3-year difference in New York City crime rate per 1,000 residents
New York City area relative consumer price index to U.S. city
average
A 4-year percent change in total industrial production index
A 3-year percent change in New York City non-FIRE private
employment
A 4-year difference in New York City extra tax burden per $1,000 of
gross product
A 4-year percent change in
A 4-year percent change in
residents
A 3-year percent change in
New York City FIRE employment
New York City crime rate per 1,000
industrial production index of
manufacturing durable goods
as and Bs are coefficients, and are the disturbance terms of the two structural equations,
respectively.
In the equation that determines the number of headquarters, there
These are the extra burden of taxation and changes in the commercial
income
income
tax as a share of GCP. AS
taxpayers has declined since
are two tax variables.
rent tax and personal
we noted, the federal personal income tax rate on high-
1950, increasing the after-federal tax impact of personal
40
taxes. As an experiment, we ran two versions of the model. The first one includes the changes
in the commercial rent tax and City personal income tax share of GCP. The second is identical
except that the City personal income tax component of this variable is
the top rate on federal income taxes to reflect the true burden to
companies who, presumably, are in the high tax brackets.
multiplied by one minus
the executives of large
The idea is that a good model containing this adjustment would be expected to show a
higher relationship between the more steeply sloped City adjusted tax variable. If the model
behaves as expected, the second version would show that the estimated relationship between the
City tax variable and headquarters is higher and that the estimated impact of the overall tax
burden is lower.
VIII. The Data
All of the data sources are noted at the bottom of the Figures presented in this study.
All the values in those Figures are presented in Appendix F.
IX. Model Estimation and Empirical Results
The system of equations is a recursive simultaneous equation system. The regression
results were achieved by using the technique of three-stage least squares (3 SLS).* The
regression period is from 1960 to 1990. The model results for the first version and the second
B 3SLS was used because the technique incorporates all available information in the
estimation procedure. In the absence of specification error, 3SLS provides more efficient
estimators than two-stage least square (2SLS). These techniques are described in Robert S.
- Pindyck and Daniel L. Rubinfeld, op. cit., Chapters 7 and 11.
41
version (the City personal income tax burden is adjusted for the top federal tax rate) are
presented in Table 1.
III either version, the estimated coefficients have the expected sign and the t-statistics (in
parentheses) indicate that all are statistically significant.
The Durbin-Watson statistic in each
equation in each version is at acceptable levels.
Additional tests were performed. Specifically,
a series of ordinary least squares regressions were run adding one variable. With each additional
variable, the standard error declined and the adjusted R-Squared improved.
The adjustment of the City personal income tax by one minus the top federal income tax
rate in version 2 had the expected effect. The coefficient of the commercial rent and personal
income tax variable increased from -.28972 to -,41369. The coefficient of the extra burden of
taxation fell from -.26732 to -.22089. An unexpected result was the large increase in the
coefficient of the relative CPI from -.54922 to 11.12151. Investigation reveals that inclusion of
the t op federal rate adjustment on the City personal income tax increased the conflation between
the City commercial rent and personal income tax variable and the relative CPI This increase
in the cmss-correction was apparently enough to raise the Iikeilhood that colinearity between
these two variables brings into question the coefficient of the weaker of the two variables, the
relative CPI. Version 1 is the better model, but the results concerning the impact of taxes when
combined with the top rate for federal income taxes in version 2 appear valid.
X. The Interpretation of the Results
. .
For purposes of presentation, all of the values that entered the regression as a percent
. .
. .. .
Intuitively, a good Durbin-Watson statistic implies that there are no missing variables.
.
42
Table 1: Th r ee State Least Square Estirnates (t-statistics in parenthesis)
Equation I Coefficients
(HQ%CHG)
Version 1 Version 2
CONSTANT 58.7882
(2.07882)
T A X -0.26732
-
(4.64620)
PIT-CRT,.
l
-0.28972
(4.07250)
CRIME DIFF, -0.26944
(3.98055)
REL-CPI. -0.54922
(1.95019)
IP%CHG +0.27444
(3. 10872)
114.868
(3.32980)
-0.~22089
(3.27169)
-0.41369
(3.83172)
-0.26763
(3.82742)
-1.12151
(3.24608)
+0.30419
(3.31395)
Standard Error 4.6135 4.7982
LHS Mean -13.5570 -13.5570
Adj ust ed R* 0.7835 0.7658
D.W. Statistic 1. 5136 1.4403
Equation lI Coefficients
(NON-FIRE%CHG) version 1 version 2
CONSTANT +0.32914 +0.19544
(0.35211) (0.20907)
HQ%CHG +0.09115 +0.08799
( 2 . 8 5 5 8 3 ) (2.71849)
TAX-DIFF, -0.08748 -0.08240
(2.09822) (1.99228)
FiRE%CHG
t
+0.13188 +0.14287
(2.69547) (2.95129)
CRIME%CHG,-
2
-0.07699 -0.07661
(5.97424) (5. 99125)
IPD %CHG,
I
+0.12580 +0.12540
(5.26826)
(5.27046) .
Standard Error 1.6462 1 . 6 4 7 4
LHS Mean -0.9496 -0.9496 -
Adjusted R* 0.8405 ., 0.8403
L
D.W. Statistic 1 . 6 8 3 1 1.6940
43
change or difference will be converted back to levels. In Table 1, we present the estimated
impact, other things being equal, of a given change in the independent variable on the number
of headquarters over 4 years (the dependent variable). The figures under the second equation
show the impact of each independent variable in that equation on non-FIRE employment over
,3 years (the dependent variable).
Because the variables employed in the model are in ratios, percent changes and
differences, with three and four year lags, a simple
possible. Therefore, we have recalculated the model
interpretation of the model results is not
results in terms of the impact of one unit
changes in the level of the independent variable on the number of headquarters and the number
of non-FIRE jobs. These estimated impacts, presented in Table 2, permit us to see more clearly
the relative power of each of the independent variables.
The model results support the hypotheses concerning the impact of the extra burden of
taxes, the Citys commercial rent tax and the personal income tax, the crime rate, the relative
CPI and the national business cycle --
as measured by changes in industrial production -- on the
number of headquarters in the City. The hypotheses concerning the impact of headquarters,
FIRE employment, taxes,
sustained. The following
crime and the quality of life on the non-FIRE city economy are also
two sections will provide a description of the impact of a change in
each of the independent variables on the number of headquarters and on non-FIRE employment.
A. Determinants of Headquarters
Theestimates in Table 2 indicate that an increase in the extra burden of state and local
taxes of $1 billion would lead to the loss of.8 headquarters over 4 years. The same $1 billion
44
Table 2: The Impacts of the Changes in the Independent Variables
1.
Version 1 Versions 2
Changes in Independent Variables
Impacts on Headquarters
$1 billion of New Taxes -0.79 I -0.66
$1 billion of PIT & Commercial Rent Tax -4.64 -6.63
Combined Impact -5.43 -7.29
One Crime per 1,000 Residents -0.13 -0.13
1 % Increase in Relative Consumer Prince Index -0.26 -0.54
1 % Increase in Industrial Production 0.13 0.15
II
Impacts on Non-FIRE Employment
One Additional Headquarter I 4.631.7 I 4,471.2
Additional 1,000 FIRE jobs
619.1 670.7
One Crime per 1,000 Residents
-1,665.1 -1,656.8
1 % Increase in Industrial Production Durables
3,068.4 3,058.6
$1 billion of New Taxes
-13,203.7 -12,437.0
levied in commercial rent and personal income tax would cost the City 4.6 headquarters, over
5 times the impact of increases in other state and local taxes. Suppose City tax policy
emphasizes the personal income tax or the commercial rent tax over other types of taxes. In the
context of this particular model, the effect is captured twice through the increase in the overall
extra tax burden and through the increase in thepersonal income tax variable. The sum of the
two impacts is .8 plus 4.6 equal to 5.4. This is the number of headquarters lost over 4 years
if the personal income tax were to rise by $1 billion, all other things being equal.
In version 2 (the City personal income tax is adjusted to show the impact of federal
deductibility) the $1 billion increase in the extra burden of state and local taxes would cost the
City .7 headquarters. A $1 billion increase concentrated in commercial rent taxes or personal
income taxes in the presence of the federal income tax rate adjustment would lead to the loss of
45
6.6 headquarters. In this case the personal income and commercial rent taxes are 10 tim
devastating. The combined effect of taxes rises from 5.4 to 7.3.
While we do not want to impute too much to the apparent precision of these n
the magnitude of the difference is suggestive. In terms of the retention of large firms in t
City, allowing the tax burden to rise well above the levels in competing localities was
Implementing taxes that do not exist in competing localities is an even larger error. T
major finding of this study.
While this study focuses on the largest companies,
straightforward conclusions would not be applicable to
there is no reason to believe that th
smaller fins. In particular, it is
suggestive that the Citys unincorporated business tax, its corporate income tax, its r
recognize Subchapter S corporations, and the double taxation of the same income by
personal income tax, share responsibility for the long term decline of the City econo
Recall that the crime rate was a proxy for all of the elements of the quality of
City service that appear to be driving headquarters and jobs from the City. A one uni
in the crime rate (for example, a rise from 112 crimes per 1,000 residents to 113 cr
1,000) over 3 years is associated with the departure of .13 headquarters over 4 ye
actual average rate of growth in the number of crimes per 1,000 has been enough to a
the loss of 2.4h e eadquarters per year. The crime problem is clearly hurting the econom
of the City.
. . .
In fy 1991 and fy 1992, the City implemented back-to-back increases in the
income tax designed to raise, after retroactivity features in added in, an estimated $840
The top marginal tax rate rose by 31 percent from 3.40 to 4.46 percent. The mod
, suggest that, as a result, the City will, lose 4.6 (version 1) to 6.1 (version 2) .
headquarters at a cost, the next section will show,of 4,632 jobs for each headquar
46
The cost of doing business in the City is also associated with the decision of he
to remain or relocate. A 1 percent increase in the Citys dative price may lead to th
.26 headquarters over the next 4 years.
.
Finally, the model results suggest that the Citys hold on corporate headquarters is related
to the national business cycle. A increase or decrease in industrial production of 1 percent is
associated with a increase or decrease of. 13 headquarters over 4 years. This result confirms
our belief that when the national economy is growing, firms are willing to pay the extra cost of
a City location, but when the national economy weakens, these firms are likely to view the New
York location as an excessive cost burden.
.
B. Determinants of Non-FIRE Private Employment
B
Another major premise of this study is that each large company that locates its
headquarters in the City is also responsible for a significant number of jobs in support services
and in the consumer economy.** The model results support this argument. The second
equation estimates that the loss of one headquarters firm should be accompanied by the loss of
4,632 jobs in the non-FIRE component of private sector. This figure includes both employees
in the headquarters and employees in the support industries. **
=
*Historically, a 1 percent change in industrial production over a 4-year period is very small.
It would be more realistic to suggest that a 10 percent increase or decrease in industrial
production over 4 years might lead to an increase or decrease of 1.3 headquarters over 4 years.
*Eli Ginzberg, et al., The Corporate Headquarters Complex in New York Citv. op. cit.,
p. 9, found that in the year 1976, the headquarters firms employed 135,000 but were responsible
for an additional 451,000 support and service workers.
*
==
The 4,632 figure may also include the employees of smaller fins, not on a Fortune
directory, that are also moving from the City for similar reasons, but without press coverage.
4/
Some aggregation puts this estimate in a more telling perspective. From 1969 to 1991,
the City has lost 470,000 or 14.5 percent of its private-sector jobs. Over that same period, the
nation added 32 million private-sector jobs, an increase of 56 percent. If the model results are
reasonable, the net loss of 103 corporate headquarters from 1969 to 1991 pared New York City
non-FIRE private payrolls by some 477,000 jobs (103 times 4,632). If the City had managed
.
to maintain its headquarters at the 1969 level, total employment, rather than falling by 470,000,
might have increased 7,000 from 1969 to 1991. Clearly, the loss of so many headquarters has
radically altered the size and structure of the City economy, leaving fewer jobs and career
opportunities for New Yorkers.
Headquarters are not the only influence on non-FIRE private employment. The model
results presented in the bottom half of Table 2 show that each additional 1,000 FIRE jobs leads
to an increase of 619 non-FIRE jobs over 3 years, conf
irming the importance of financial
services to the rest of the local economy.
An increase in the crime rate, independent of the effect of crime on headquarters, of one
unit (say, from 112 per 1,000 to 113 per 1,000) is associated with the loss of 1,665 non-FIRE
jobs over 3 years.
The national business cycle, measured by changes in industrial production of durable
goods, has an impact on non-FIRE employment. A small increase or decrease in industrial
production of durable goods of 1 percent over 3 years is associated with increases or decreases
of non-FIRE employment of 3,068 jobs.
The direct impact of a $1 billion increase in the extra burden of state and City taxes,
would be the loss of 13,204 non-FIRE jobs over 3 years. There is also an indirect impact -- the
4 8
number of non-FIRE jobs lost due to the loss of headquarters. Recall that a .$1 billion increase
in the tax burden costs .79 headquarters, or 5.43 if the tax increased was either the personal
income tax or the commercial rent tax. This, in turn, costs 25,200 jobs. In sum, each $1
billion increase in the City personal income tax or commercial rent tax could lead to the loss of
38,400 non-FIRE private sector jobs. In version 2, where we account for the impact of federal
deductibility of local taxes, the equivalent job loss figure would be 47,000.
XL The Impact of Headquarters on Producer Services and Other Industries
In the Section II of this report we noted that the headquarters complex includes the
headquarters and their employees, the producer services firms and their emploees, and the
elements of the local economy, such as real estate and retailing, which service the first two
groups. Our model demonstrated that each headquarter gained or lost was associated with a total
gain or loss of 4,632 jobs in the non-Fire economy.
While we did not separately estimate the
impact of headquarters on producer services, it is clearly substantial.
producer service in the City is due to the concentration of client firms --
The concentration of
in the headquarters, in
finance and in the media -- concentrated in the City. When a client firms departs, the City also
*In our previous study, Report by the Chief Economist. Comptrollers Budget Office. on the
Impact of the Local Tax Burden on the Citv Economy, Office of the New York City
Comptroller, April 1991, we estimated that $1 billion in additional state and local taxes would
lead to the loss of 108,000 private sector jobs. The difference between the two loss estimates
is primarily the result, in the earlier study, of estimating the impact of new taxes during a City
recession. The results in this study would have shown much higher tax-related non-FIRE job
losses during a recession. In addition, the earlier study includes FIRE employment.
49
loses some of the high-pay employment in producer services.
A 1991 report by the Citys Deputy Mayor of Finance and Economic Development
presented the Citys position with respect to the headquarters firms and the producer service
industries.** This report argues that the City, particularly Manhattan, is an incubator of
business activity where many new firms are created. The headquarters of industrial firms with
the exception of the very largest are the most likely to be concerned
therefore subject to pressures to leave the City. With respect to
with cost pressures and
large firms the report
concludes, that attempts to attract or retain mature companies may be misguided unless there
are overriding benefits to the firm of a location. The prime beneficiaries of the Citys economic
development would be small firms and start-ups, with a particular emphasis on producer
services.
This report is seriously flawed. First, a good many of the headquarters firmswere not
incubated in the City. Rather, as we note in Section II, many grew in other parts of the
country but moved to New York after reaching a substantial size. Second, industrial companies
are not the only headquarters firms relocating from New York since the 1960s. As Figures 2-5
show, the Citys loss of service firms in merchandising, transportation and public utilities has.
For example, the City proportion
and had fallen to 39.6 percent in 1989.
of national advertising volume was 60 percent in 1948
Employment at advertising agencies in the City was 35
percent of the national-total in 1989. As clients have left the City, advertising agencies have
expanded in the new locations. See the testimony of Harry Paster, Executive Vice President of
the American Association of Advertising Agencies, in Appendix: Transcripts of Economic
Hearings, December 4 and 5, 1990, Office of the New York City Comptroller, pp. 36-39
New York Citv 1991: The Worlds Capital in Transition, Office of Sally Hernandez-
Pinero, Deputy Mayor for Finance and Economic Development, City of New York, Principal
Author: Pierre Vilain, August 29, 1991. See particularly pp. 5, 53, 55, 108.
50
.
been at least equally devastating. Third, the very largest domestic and international firms are
not less vulnerable to relocation pressures. As we illustrate in Section III, it is precisely the
largest multinational firms that have led the exodus out of the City. This impression is
strengthened by examining the list, in Appendix A, of firms from the Fortune directory that have
left since 1956. Fourth, we have no reason to believe that international firms are not subject
to the same pressures, be they related to costs or to quality of life, that lead American
companies to leave
economic incentive
simply not rational.
the City. Fifth, a policy of support for firms which have a pressing
to remain in the City, while neglecting those which do not have one is
The belief that there is something natural about mature or large firms leaving the City
defies logic. The high costs of business operations in the City, are not in any sense natural.
Rather, they are, too some large extent, the reflection of state and local policies since the
1950s. It should come as no surprise that the mass flight by large business is a post-1963
phenomenon. Moreover, the loss of so many firms and jobs is not
mirrored in the two other
great world business centers London and Tokyo.
Finally, we must question the belief that producer services area natural Manhattan-based
growth sector. The producer services are concentrated in the City because their client industries
-- headquarters, finance and communications -- are concentrated in the City. While the
headquarters firms continued to leave the City during the expansion of 1977-89, financial
services and communications grew rapidly. The negative impact of the loss of headquarters was
more than offset by the powerful growth of financial services and communications. From 1977
to 1989, employment in business and professional services, defined as business services, legal
51
services, engineering and management services, grew 56 percent from 284,000 to a peak of
444,000.
All three client sectors headquarters, financial services and media are now
contracting in the City. Employment in business and professional services declined to 431,000
in 1990 and 383,000 in 1991.
XII. Policy Conclusions
The loss of over two-thirds of its corporate headquarters since 1963 has placed the City
i n a precarious position. As headquarters and manufacturers continue the exodus, the City
becomes vitally dependent on its two remaining major sources of export activity -- finance and
communications. Both of these sectors are volatile. Both are currently under pressure to
reduce costs. There is no guarantee that finance and communications
increases in tax burdens and other negative forces that headquarters
will continue to bear the
and manufacturers have
fled.
=
The large headquarters firms, the financial firms and communications firms are clients
of the important non-financial producer services companies. As their clients leave New York
or cut expenditures, there is little likelihood that producer services will become a source of
*Ingo Walter and Anthony Saunders, state in a recent study, National and Global
Competitiveness of New York City as a Financial Center: Report to the Mayors Committee on
Financial Services Competitiveness, New York University Salomon Center, 1991, It (financial
services) is an industry that cannot be taken for granted... The report recommends that the
City secure its relationship to this industry by supporting the industrys regulatory and tax
agenda in Washington and by maintaining a reasonable balance between local taxes and the
perceived benefits of those taxes, including the perception of New York as a desirable place to
live and work.
52
growth. Indeed, producer services are more likely to be a source of decline.
Under these circumstances, there is an urgent need for a policy response to these threats
to the Citys economic stability. The loss of so many headquarters has reduced the mass and
diversity of the Citys business environment. In addition, improvements in communications and
transportation have further reduced the Citys competitiveness.
Business and jobs have been
part of the economic landscape that
Those private sector decisionrnakers
fleeing the City since the 1960s. Flight is such a normal
the loss of another largef irm has lost its power to shock.
who decide whether jobs will remain in the City or migrate
are analyzing the Citys future. If their vision of the Citys future includes continuing increases
in the local tax burdens, declining quality of life and further erosion of the economic base, the
downward spiral will continue.
We cannot assume that recent departures such as J.C,
Penney, Mobil, Exxon and American Home Products will be replaced by new growth companies
or by immigration.
In the context of the model developed in this study, two of the factors are, to some
extent, subject to the City and state influence or control. These are the crime rate and state and
City taxes. In the model, the crime rate was used as a proxy for all of the quality of life issues
that concern New Yorkers including the conditions of the streets and highways and public
transportation and the quality of public education.
The model results show that the rise in the
crime rate has been in part responsible for the decline in the Citys role as the business capital
of the nation. This is an issue of the effectiveness of the management of public resources. To
preserve business and jobs in the City, managerial effectiveness should become a top priority.
The model enables us to estimate the result of changes in tax policy. In particular, what
53
might happen if the commercial rent tax were eliminated or if the most recent temporary
fourteen percent surcharge on the personal income tax were actually allowed to expire. In order
to estimate these effects, it was first necessary
hcadqarters non-FIRE jobs. The independent
to create a baseline forecast of the outlook for
variables were forecast extending recent trends
or using a consensus outlook. The baseline forecast is that, compared with 1991, the City will
lose 11 corporate headquarters and 198,000 non-FIRE jobs by 1995.
The Citys
million in fy 94,
elimination of the
commercial rent tax is expected to generate $710 million in fy 93, $728
and $751 million in fy 95.
Compared with the baseline, the complete
tax will save 5 corporate headquarters and 30,000 non-FIRE jobs by 1995.
The most recent temporary surcharge on the personal income tax was designed to
generate $410 million per year and is due to expire on December 31, 1993. Allowing this
surcharge to expire as scheduled could save 3 corporate headquarters and 19,000 non-FIRE jobs.
In addition to the impacts estimated by using the model, the elimination or reduction of
some of these unique and unusual taxes would, in a tangible way, show that the City was serious
about economic development. The City needs to improve its relationship with its private sector.
The Price Waterhouse survey of City executives demonstrated that, except in the fast-growing
health care industry, virtually none of the respondents rated the City governments relationship
with business as better than it was five years ago.*
Any perception that City government has
not shown serious concern for economic development needs to be reversed if any plan to
preserve the Citys remaining assets or to restore the primacy of the City as the economic center
of the nation is to succeed.
Survev of New York City Executives in Six Industrv Sectors, op. cit., Exhibit HI-9,
reproduced in Appendix D.
City-States and Civil Societies:
A Perspective on GTA Reform
Scot B1ythe & Fiona Nelson
RECEIVED
1
Contents
I. What is Toronto? 2
Il. The Context of Local Government Reform 3
HI. The Economy and Society of Toronto 5
A. The Village Economy 5
B. The Village Economy in a Global Society Economy 8
IV. Local Government Finance 9
A. The Provincial Role 9
B. Property Tax Assessment 10
C. Provincial Grants 12
V. Governance
13
A. School Board Governance
15
B. The School Board and the Village 16
VI The Provision of Services
17
VII Urban Form
18
Concision: Principles of GTA Reform
20
Recommendations
21
Scot Blythe is an urban affairs writer. Fiona Nelson is a trustee on the Toronto Board of Education
and its representative on the Assessment Reform Working Group at Toronto City Hall. Both can
be reached at the Toronto Board of Education, 155 College Street, Toronto, 397-3071.
Several Toronto Board of Education Trustees have endorsed this submission:
Peter Chown, Ward 1 Luz Bascunan, Wards 11&12
John Campey, Wards 5&6 Alison Pearce, Wards 13&14
Tam Goosen, Wards 5&6 Linda Sparling, Ward 15
2
I. What is Toronto?
All politics is local
Tip ONeill
Everyone lives in a neighbourhood. In each city, there is a neighbourhood that somehow
encompasses the panorama of the city: its strengths and weaknesses, its successes and failures, the sheer
diversity and promise of its communities. Here is one panorama. As you stand at the conjunction of
College and Dundas Streets, just past the point where the streetcar tracks converge to form a single
line-in the middle of the bridge over the railway, in factthere is an extraordinary vista.
To the north, on the site of a former lumberyard that lies beyond the tiny wooded close on a dead-
end residential street, are the well-tended grounds of West Toronto Secondary School, one of the last
schools Toronto built while the baby-boomers were still passing through the school system. It bears the
marks of its time, the faith we had in modem architectural forms, and in the people who inhabited those
forms. With walls topped by windows that span the space between the orange-brown brick turrets, West
Toronto resembles a community college more than a community school. It is the major public building
in this neighbourhood.
To the west, on the other side of the railway tracks, lies the Sorauren industrial district. Once a
tract of first-world-war munitions factories, later converted to other manufacturing uses, it is now a street
of buildings in the midst of an uneasy colonization by artists and creative types driven westwards by the
high rents of the downtown. Its nothing great, at least not yet, just an agglomeration of sturdy, sometimes
even pretty structures-but then Queen Street West in the 1970s wasnt much either. Beyond Sorauren,
just over the bridge, can be found the Halal butchers of Dundas West, not far from the Polish restaurants
of Roncesvalles. An old immigrant community, and a new one, too, they are both products of the restless.
migration and resurgence within cities promoted by newcomers who spot the potential of unregarded and
ignored neighbourhoods.
To the south, right at the comer of Lansdowne and Dundas, is the Knob
Terminal. With its Art Deco motifs, Knob Hill actually looks more like an airport
Hill Farms Food
terminal. For the
thousands of New Canadians-and old Canadians, too-who travel up and down Lansdowne Avenue, it
is a godsend, a mainstay in feeding their growing families. It is also the public space in this
neighborhood. It lies at the tip of a secret neighbourhood, one that doesnt really have a name. No lurid
headlines mark this neighbourhood, even if enough to fill a tabloid can be found a short distance away.
Instead, there is Fern Avenue, and Fern Avenue School, a quiet school on a quiet street.
The view to the east, from the top on the bridge, is particularly inspiring, especially frost thing in
the morning. As the fog lifts, you can spot the pinkish-brown cladding of the Bank of Nova Scotia tower,
standing out amidst the hubbub of bank towers in the downtown core. For many Torontonians, this is the
destination, whether as a place to work, or as a means to satisfy an overarching ambition. At this junction,
the streetcars seem to ride through traffic like the clippers of yore; they are Torontos Bluenoses. Take
one clipper, and you follow College Street downtown, passing through the northern reaches of Brockton
and the old Denisen estate-now denominated RusholmeLittle Italy and the Kensington market, until,
fifteen minutes later, you meet the institutions of modem government: the University of Toronto, Queens
Park, the Toronto Hospital, the Ontario College of Art (Stewart Building), and the Toronto Board of
Education. If you hesitate a moment, you can take the Dundas streetcar. Then you must traverse the
village of Brockton, Rua Acores, Portugal Village, Scadding Court, Alexandra Park, and Chinatown,
before you reach the Eaton Centre. Welcome to Toronto.
II The Context of Local Government Reform.
A nation may establish a free government,
have the spirit of liberty.
The Greater Toronto Area Task Force is
but without municipal institutions it cannot
Alexis de Tocqueville
the most recent in a series of inquiries into local
government municipal councils and school boards. In Ontario, local government has never left the
discussion table. From the Beckett Select Committee in 1963, through the Ontario Committee on Taxation,
the Hall-Dennis Committee Report and Design for Development in the late 1960s, past the Commission
on Declining Enrollments, the Provincial-Local Committee on Property Taxation, and the Comay
Commission on the Planning Act in the late 1970s, right up to the Sewell Commission on New Planning
in Ontario, the Hopcroft Committee on the Provincial-Local Financial Relationship and the Sweeney Task
Force on School Board Reduction, local government affairs have occupied a considerable portion of
Ontarios attention, and absorbed a great deal of the provincial bureaucracys time and energy.
There is a reason for this; in the words of one commentator, local governments are creatures (of
4
the provincial government, since they have no constitutional status), chameleons (according to the policy
imperatives of the day), and consorts (since all services, and indeed, as Tip ONeill would say, all politics,
are local). What this conjunction of characteristics means is demonstrated by the history of provincial
reform attempts: there is no magical solution, at least not one that will cut the Gordian knot in every
locality and every region in the province.
Why have provincial reforms failed? In the past five years, the Fair Tax Commission and the
Royal Commission Learning have reported. In both instances, the recommendations by far aimed at greater
I
centralization as the solution to troublesome disparities in local revenues or local services. In the interests
of equity, both commissions proposed to strip local governments of some of their historic functions, while
taking control of parts of the local tax base. They assumed (as they could not but, given that they were
provincial efforts) that a uniform solution, which became the working definition of equity, would fit every
local circumstance, or at least the important ones. In a word, they slighted local know-how, and local
initiative. There are reservoirs of local wisdom that have never been contained in any provincial act, and
so, they have never been tapped.
We live now in a changed climate, with the two constitutional levels of government intent on
scaling back the operations of their bureaucracies. The federal governments abandonment of Harbourfront
is one example; the provinces withdrawal from CityHome non-profit housing projects is another. This
is the way of the world in the last decade of the 20th century; big government, like big business, is
downsizing and contracting-out. One may lament the barbarous epithets that mark the passing of an age.
But the conclusion is inescapable: the torch has been passed to the nimble, to people who can spot niches.
This is the definition of local government. It is far quicker to act than elephantine bureaucracies
elsewhere. People wait for six weeks, at minimum, for their income tax refunds to be processed; they do
not tolerate garbage that is not collected or schools that are closed. And, in this world of globalization,
where Stakhanovite currency traders work the London shift, the New York shift and then the Tokyo shift,
the opportunities in this daily round of virtually homogeneous trillion-dollar transactions are to be found
locally, in the details, in what deviates from the standard expectation: in a neighbourhood that is
underserved, a skilled workforce that is underutilized, a vibrant city-state that is overlooked. Before the
great European industrial revolution, the economy, such as it was, was driven by city-states: the Hanseatic
traders, the Flemish wool centres, the bourses of northern Italy. After an era that culminated in the
5
domination of conglomerates and multinational corporations, the world economy is turning back to its
roots in the trading city-states.
Forced on by economic circumstances that are reinforced by the powerlessness of national
governments against global capital flows, we are devolving responsibility for economic growth and social
well-being back to city-states. The current argument is that companies choose to locate in healthy city-
states with skilled labour forces, a robust infrastructure and a superior quality of life. Before the emergence
of the modem welfare state, it was cities that took in hand the education, health and social well-being of
their residents. If economic preference is pushing city-states to the fore, then surely it is time for provinces
and national governments to give cities the tools to do the job. And that means the tools not merely to
boost productivity, but to maintain, improve and replenish human capital.
It is time for the province to return effective government back to its roots, in locaI communities.
There may well be economies of scale in the manufacture of goods; there are no economies of scale in
providing services to people, precisely because people are not manufactured objects, subject to quality
controls. There is no way that the province can craft a solution to fit everyones needs; provincial control
cannot replace nor can it harness the local initiative that flows from the diversity to be found in any
community. We need a new set of principles to define the provincial-local relationship. A useful starting
point can be found in the 1967 Report of the Ontario Committee on Taxation:
Local autonomy has ever been a cornerstone of municipal institutions in this province. We
consider ourselves second to none in our espousal of this principle which has served so
long and so well in promoting democratic values within a framework of decentralization.
But if local autonomy is to remain a reality, the institutions it fosters must be worthy of
the challenge. Local autonomy, precisely because it stresses the importance of strong
municipal institutions, is not a haven for municipalities and school boards so small and
weakly organized that they cannot discharge their functions in acceptable fashion. Again
local autonomy, which is a bastion of responsive and responsible government, cannot
condone the multiplication of ad hoc special service authorities removed from the
immediate arena of the political process ....The Province has a constitutional responsibility
for the structure of municipal and school authorities. It has an even deeper responsibility
to foster, through local institutions, the democratic values we cherish. [Smith, II: 550]
III. The Economy and Society of Modern City-States
[I]t was cities, not rural areas, that, since the dawn of history, have instigated most of the
worlds economic invention and growth. To that she [Jane Jacobs] added the modern
corollary: it is cities, not nations, that are the chief generators of wealth on earth. Cities
power stems from the creative power of humans challenging each other in the close,
shared society of urban settings.
Neil Peirce, Citistates
A. The Village
There was a time when Big Steel, Big Auto, Big Banks and Big Capital defined the economic
world from expansive citadels located in specific cities that sent products, agents and emissaries into the
hinterlands; Detroit, Pittsburgh, Wall Street, even St. James Street and Hogtown were synonymous with
power. Globalization spells the doom of the big, and returns power to the hinterlands, to the villages, to
neighbourhoods, whether rich or poor. Borderless commerce, capital and communication redouble the need
for a sense of placea place to stand, live, earn and thrive.
Toronto, too, had big manufacturing establishments, like the Massey-Ferguson complex, whose
wares went around the world, and big department stores, like Eatons, whose goods, sold by catalogue,
helped to knit the country together. One late 1950s commentator reckonedwithout ironythat Toronto
was on its way to becoming Canadas Detroit. While big establishments still exist in the Toronto area it
is the human services provided by governments, schools, hospitals, colleges and universities, retailers,
banks and insurance companies that provide the bulk of the jobs. (Of the Board of Trades top 63
employers in the GTA, 29 are public employers and 13 are retailers, while 6 are financial institutions.)
These services, more often than not, and especially in the City of Toronto, are provided or purveyed in
neighbourhoods rather than large complexes. Schools and banks are the most visible form of
decentralisation, but there are dry-goods merchants and medical clinics, day-care centres and greengrocers
and restaurants-with cuisine from every land the sun visitsspread through all of Torontos
neighbourhoods. A quarter of Torontos workers ply their trade and their skills in neighborhood
establishments.
There are still manufacturing establishments in Toronto, but they are getting smaller; in an odd
way, they are returning to their
production shop, the local printer
roots in the crafts and trades. It is the emerging software or film
or brew-pub, the small-time entrepreneur who increasingly define the
7
future of manufacturing in Toronto. They are reclaiming the old industrial spaces, while simultaneously
moving into shops on the mainstreets. Similarly, larger retailers are finding it more difficult to compete
against niche retailers, discount stores (many of which do not belong to a chain), and neighbourhood
merchants. The economic buzzwords of downsizing, flexible manufacturing and such like conceal
something very important about the life of great cities: people are increasingly returning to a
neighbourhood scale of things.
To the visitor, the City of Toronto is defined by its international tourist attractions: the CN Tower,
Exhibition Place, the SkyDome, Maple Leaf Gardens, and the Eaton Centre. But when Torontonians do
their day-to-day shopping and entertaining, they tend to do it on Bloor Street West and the Danforth, on
the long Yonge Street merchant strip between Lawrence and Davisville, in the Kensington and St.
Lawrence Markets, and on innumerable small, often ethnic, sections of the mainstreets, such as Corso
Italia, Portugal Village, Chinatown, Gerrard and Coxwell, Roncesvalles and Queen St. East. They might
own cars, but they prefer to get around on foot or by public transit. Few Torontonians are more than a
fifteen-minute walk from streetcar or the subway. It is along those streetcar and subway routes that you
will find Torontos high schools. The lifeblood of Toronto flows through its mainstreets, most of which
are still vital commercial and residential districts rather than the sterile and sometimes aesthetically
criminal arterial roads that ravage other cities. Those mainstreets, thanks to the transit system, also take
Torontonians downtown for special occasions in the theatre district or at the ball game, for exhibitions in
the galleries and museums and even demonstrations in the precincts of power.
Toronto is, in fact, a collection of villages, united by a transit system and a shared political culture.
These villages can be remarkably dissimilar. Forest Hill and Rosedale serve as shorthand in the national
media for wealth, just as Bay Street is a synecdoche for financial capital. These, however, are not Toronto,
or at least not all of it. The old symbols of industrial might are gonethe stockyards, Heintzmanns,
Inglis, Molsons, those establishments have disappeared from Toronto-but along the railways that served
as the countrys veins and arteries can be found clustered some of the poorest neighbourhoods in the
country. Torontos crescent of deprivation describes the same path it always has, the path the railways
traverse, from the old Stockyards through the Junction Triangle down to Exhibition Place and Fort York,
and up again along the Don Valley, through Cabbagetown and Riverdale and Don Mount.
That these disparate neighbourhoods cohere into something like a city is something of a miracle.
Perhaps it is because there are no walled neighbourhoods in Toronto yet. Or perhaps it is because we have
never allowed our poorest areas to pass completely under the dominion of hopelessness, a fact that never
ceases to surprise American social scientists who are escorted to our own ghettos, only to find there is
no ghetto there.
By contrast, it is not difficult for the intrepid Toronto pedestrian or cyclist to know what is
Toronto and what is not. The traffic is faster, the stores, set back on strip malls, less welcoming, and the
houses have their backs to the street. There are fewer sidewalks; traffic signals have been designed for the
convenience of cars, and even the non-automobile entrances to the major public buildings are hard to get
to for a pedestrian. Beyond Torontos borders, Yorkdale is a subway stop and a parking lot, the premier
Canadian shopping mall, perhaps, and doubtless an important workplace, but it is not a place to live. It
is not a neighbourhood.
B. Village Economies in a Global Society
The GTA is a hard-working region; with 40 per cent of the provinces population, it is responsible
for 47 per cent of the provinces tax revenues. Metro Toronto has 22 per cent of the provinces people;
it has 25 per cent of the work force. In the City of Toronto, there are almost as many workers as there
are residents, and in Metro as a whole, the labour force participation is 64 per cent, five percentage points
higher than in the next closest GTA municipality. The City of Toronto is the productive core of a
productive region. Toronto, as they used to say, is a city that works, quite literally. But this collective
labouring and productivity does not come without a cost. As free-market economists would point out, there
is no free lunch.
Whos minding the children? As we push 64 per cent of the adult population into the workforce,
who has time to be a mother or father, grandmother or grandfather? Even those who dont have careers
are working at the local fast-food restaurant or warehouse depot. Teachers, on the other hand, complain
of being overburdened with social work, while child-care subsidies are in such short supply that 20,000
Metro Toronto families are waiting for a subsidized space. If no one has the time to look after the
children, where does a reliable, self-motivated and entrepreneurial workforce come from?
Who is providing the housing? Metro Toronto is a destination for immigrants from across the
country, and across the world. Partly it is because, on a world scale, Toronto is a relatively wealthy city,
9
with more job opportunities than elsewhere. Those jobs may not pay very much, and the minimum wage
will not support a family of four in Torontos rental market. Yet, any city requires an openness to new
workers, and an ability to house them, whatever their income. Where are the workers to live?
Who is teaching the ways of the city to new immigrants? Toronto is the worlds most multicultural
city. The federal government does not begin to compensate local schools for English as a Second
Language classes. A major urban area has special needs; the sheer size of the population overshadows the
difficulties other localities might face. Who will help new Canadians play their part in this citys
tremendously productive economic apparatus?
Torontos tax monies also contribute to the well-being of the rest of the provinceaccording to
the Greater Toronto Co-ordinating Committee, up to $3.7 billion more flows into provincial coffers then
is returned to the GTA. While Metro Toronto may be the provinces wealthiest area, it is also poorest by
virtue of the concentration of needs in specific neighbourhoods. Provincial equalization grants take money
from Torontos wealthy and moderately well-off so that the rest of Ontario may share in Torontos relative
prosperity. Unfortunately, this places an extra burden on Toronto because it must fund its own needs
through higher property taxes to make up for the provincial grants it does not receive for, for example
transportation, public health and education.
IV. Local Government Finance
In our view, the primary responsibility for financing education must continue to rest
with local education authorities. We believe this is necessary to ensure any measure
of real local control. The responsibility of the central authority must be to assist
them financially through legislative grants and to distribute those grants in such a
manner that the financial burden of providing education. . . is equalized, the fullest
extent possible....
Royal Commission on Education, 1950
A. The Provincial Role
Urban sociologist Gardner Church has remarked that if Confederation were to take place all over
again, then it is local governments to whom the major taxing powers would be assigned, with the
provinces and the federal government receiving the residuum. It is easy to forget that, a century ago, not
only did local governments provide most of the services, local governments accounted for most of the
10
taxes. Until quite late in the day, the federal and provincial governments relied on customs and excise
taxes. Not only property taxes, but also income taxes, both corporate and personal, were considered the
rightful jurisdiction of local governments. Most people are comforted by the misbelief that income taxes
were only a temporary expedient the federal government resorted to in time .of war. Actually, income
taxes were considered a provincial-municipal domain, and Ontario had to negotiate with municipalities
to take over personal income taxes in 1936 (in return for unconditional provincial grants), while the federal
government appropriated corporate income taxes in the middle of WWII.
There are good reasons for federal or provincial government control of some tax bases. They have
much longer arms, and so can ensure that each resident, company and offshore shareholder pays a fair
share of the public expenses. But, this is only an argument for utility: the constitutional levels of
government are clearly more efficient at raising taxes. That does not mean they are the most efficient at
spending them, nor at delivering the services people count on. Federal-provincial programmed often
acknowledge that, by awarding provinces tax points, a share, that is, of federal revenues, to be applied
to provincial services.
When it comes to local services, the Province, with rare exceptions relating to infrastructure, has
only two roles: to ensure that local services meet minimum standards of accessibility and quality, and to
ensure that local communities have the wherewithal to meet those standards. There must be a middle way
between the threat of local bankruptcy and total centralization in funding and providing services. The
province should return to its role of enabling local governments to deliver services, by providing the grants
its superior taxation powers allow it to raise, while refraining from tampering with the local tax base.
B. Property Tax Assessment
There are two sources of revenue for local government: user fees and property taxes. User fees
are limited in their application; if they are too high, people will not use the service, and if full cost-
recovery is impossible, then the service must be discontinued. A pure user-fee regime would, for example,
defeat the purpose of having a public library system.
As the Fair Tax Commission has freely admitted, the property assessment system is a mess.
Property taxes were once assessed by a method called actual value, at a time, one supposes, when people
were naively confident that a hard and fast economic value could be assigned to a property (consider: the
11
four-year-old Confederation Life headquarters on Jarvis Street was built for $100 million; its value in
todays marketplace is no more than $35 million). The logic of the system long ago succumbed, to the
dizzying succession of postwar real estate booms and bustsmany of them fuelled, by the way, by
speculation and the peculiar demographic pressures exerted by baby -boomer economicsto local
economic development decisions, and to the perversity that results when the subjective decisions of
assessors are deemed to form a scientific system. As a result, any form of market value assessment will
see massive tax shifts, whether from the commercial to the residential sector, or from neighborhood to
neighborhood, or even house to house. At a future date, taxes might shift back again. This is no way to
run a tax system.
Local governments and local taxpayers need a stable revenue system. The revenue base cannot
expand and contract as if according to the phases of the moon. That would have been the effect had
market value been implemented in 1988 or 1992, as the City of Torontos submission shows. An
assessment system must be easily explicable. That is often the case put forward by market value
proponents. But existing market values are diffuse, slippery things since there is no single market.
Market values are not based on actual sales, since it is usually the same starter homes changing hands
year after year. Most houses remain off the market for decades, that is, if they are not passed from
generation to generation of the same family.
Thus, the values of industrial properties, commercial properties and residential properties are each
estimated by a different method. Apartments and houses are also estimated by different methods. Beyond
that, is the GTA a single market? Should Toronto houses be compared to Mississauga houses, and
Oshawa auto plants to Brampton or Oakville auto plants? At present, these comparisons are not made.
Instead, there is a congeries of methods and comparative standards to estimate market value.
Would it help to use the GTA market as the standard? It is illusory to speak of a provincial
economy, let alone a national economy. It is greater folly to think of city or city-regions as unified
economic regions. While the different neighbourhoods of a city do add up to something like a local
economy, at least for statistical purposes, the reality is that each neighbourhood is a micro-economy, much
like the micro-climates that permit some farmers to grow fruit, while others must rely on hardier crops.
Were it possible to seal off a city economy or a city-region from the world economy, one might then think
of a market value assessment system, since locational preferences would be purely subjective, purely local
12
decisions: one would buy an expensive house in a blue-ribbon neighbourhood and pay the price, fully
aware of the present and most of the future tax consequences. But it is not possible to seal off a city from
what the economists call externalities. That means an assessment system must somehow hit a moving
target as neighbourhood micro-economies, each experiencing its own upward and downward pressures,
rise and fall according to their own distinct rhythms.
Taxation is always contentious thing; there is no fair tax. What fairness there is inheres in the
way decisions about taxation are made. Tax changes should be made in public, by duly elected
representatives, who have been empowered to make decisions on behalf of the community. That will never
be without conflict; the point, however, is that the will of the majority has been served, and the procedure
has been clear, and if it hasnt the rascals will be thrown out at the next election.
Market value reassessment, whether it occurs by statute or through appeals, is a profoundly
undemocratic process. It changes taxes without submitting them to a vote. It is taxation by stealth. Some
people win tax reductions by appeal; as a result, other ratepayers must pay more to make up the
difference. With a city-wide or regional reassessment, there are no cogent reasons for tax increases and
decreases: no correlation with use of services, no correlation with wealth or income, no pressing urban
needs that must now be paid for. Instead, tax increases and decreases are decreed by some transcendental
market, whose workings are as predictable as
C. Provincial Grants
In many instances, provincial grants are
a roll of the dice.
based on local assessment. However, assessment wealth
does not relate to household income. Nor is the median income in a community a proper measure. A true
picture of need would start with household income by decile. Only then can the true costs of urban
services be comprehended. At present, the province is in the perverse position of assigning grants
according to perceived assessment wealth of the entire community, a wealth that has no liquidity, while
cross checking the targeting of grants according to median income, without giving municipalities the
capacity to redistribute that local wealth and income. The only way for a municipality to compensate is
through higher local taxes than may exacerbate existing problems.
13
V. Governance
The establishment of a good system of municipal institutions throughout this province is
a matter of vital importance.
Lord Durham
The conventional economic view holds that the welfare state developed to compensate for
problems created by the market. Government supplements the market. It provides public goods because,
among other things, the market may not provide them (e.g. public health), or, alternatively, public
provision may be more efficient or more equitable than private provision (e.g. public education). But this
rather desiccated perspective does not go far enough. It reeks of an after-the-fact justification for why
governments do what they do. It does not get at the dynamic living organism of society that governments
are supposed to govern. Governments are not simply economic or regulatory instruments. They reflect,
and in turn shape, quite specific communities.
A broader perspective would note that the welfare state was instigated by a basic political and
moral conviction: that every person should share in the fruits of society; those who lacked the means to
participate were to be subsidized until they could participate fully and on the basis of their own labours.
In an earlier time, we would have called this concern for the common weal. Some may now speak of this
as charity. A more appropriate way to put it would be to speak of the civic impulse.
The notion of a civic impulse has seen a resurgence thanks to the struggle of ordinary citizens in
Eastern Bloc countries to organize and govern themselves against the crushing dead weight of faraway
centralized bureaucracies. The notion has been taken up quite readily in the United States, as part of the
cornmunitarian movement, which seeks to rebuild the communities in which the twin addictions to
television and automobilesto withdrawal or flight-have encouraged the evasion of personal and civic
responsibility. An American sociologist, Robert Putnam, has concluded that the Italian regions that work
work because they are heirs to a long and powerful tradition of civic responsibility. The economy is a
reflection of civic virtues, not their creator.
If government must shore up our communities, than we have made a fatal error. Either our
communities are too small to be self-sustaining, or we have allowed control to slip out of our hands and
14
be passed on to another authority. That is why the questions about the size and the boundaries of a
government are doubly significnt. If a local government is too small, it has little power to act. It lacks
the tax base and the critical mass of expertise, ingenuity and capacity to work. There are less than a dozen
neighbourhoods in the GTA that could organize themselves and provide all the services they required
through their own resources. On the other hand, if a government is too large, it may well have the capacity
to act, but it does not have the will. It is too distant from the people. It becomes like the constitutional
levels of government which, for all their size and income, appear from the local vantage point to be
nothing more than standards associations.
The Borough of East York, in its submission, has made an interesting case for expansion of its
own boundaries on the basis of neighbourhoods that have a common culture. This is one of the intangible
facts of political life. Adjoining neighbourhoods will share a common view thanks to common needs and
experience and a common history.
Torontonians, too, are bound together by a unique common culture. There is, in Toronto both a
willingness to do it yourself, and an ethos of looking after ones neighbors. One example of this is
CityHome; where the province provides subsidized housing in most communities (or at least in the
communities that want it), Torontonians have decided to supplement provincial efforts, and, in fact, to
create a different kind of public housing. Another example, perhaps the most obvious one, is Torontos
enduring hostility to expressways. A final example is provided by the Toronto Board of Education. Where
most school boards, faced with declining enrollments in the late 1970s, either sold or rented their surplus
schools, Toronto never closed a school in that era. (It did in fact close two schools earlier, St. Clair Public
School around the stockyards, and Wellesley Public School, on which now stands the Sutton Place Hotel;
as a result, today there are school shortages in both these neighbourhoods.)
It would have been folly to close schools, and this for two reasons. First of all, it is not a wise
use of public money to close down developed public infrastructure and rebuild it elsewhere. Secondly,
who is to make a judgement about the vitality of a neighbourhood, or indeed, a city. That decision is
properly left to residents themselves, who have an uncanny knack for spotting undervalued community
assets. This much is vouched for by the resurgence of Cabbagetown in the 1970s, and more recently,
Riverdale. The popular expression is: if you build it, they will come. A more realistic rephrasing would
say: if it is there, people will use it. More broadly, while enrollment in Toronto has never recovered to
15
its 1970s peak, it is increasing. The schools the Toronto Board did not close turned out to be needed after
all. This is how a community works: with a responsive, and even far-sighted government.
A. School Board Governance
School boards seem an anomaly in the urban universe. In the United States, schools in many urban
areas are under the direct control of the Mayor. The trend in educational administration in large cities has
been towards greater centralization; this trend reached its pinnacle in London, with the Inner London
Education Authority. Yet, the loss in democratic control centralization wreaks has brought forth a
countervailing tendency. Now, in the U. K., schools have reverted to the old private school model of boards
of governors--even those schools nominally under the control of the local education authority, itself a
committee of the local council. New Zealand has abolished school boards altogether in favour of school
councils. In Britain and New Zealand, countries without a strong federal tradition, the devolution of daily
operations to school councils has been accompanied by the creation of a strict national curriculum. The
locus of real decision-making has shifted to national state. A community without the power to manage its
own affairs is a community destined to subservience and dependence.
Interestingly, the United States is witnessing contrary sentiments in favour of decentralization. In
both New York and Los Angeles, there are proposals to breakup the school boards (serving 1 million and
750,000 students respectively) into smaller, more responsive units. Outside the major urban areas, school
boards consisting of elected rather than appointed trustees are still the norm. In fact, there the principle
of devolution has perhaps been taken to its limit: in New York State and in Texas, states with roughly
twice the population of Ontario, there are more than 800 school districts: more than four times the number
of school boards in Ontario.
These divergent models of school governance reflect the distinct historical origins of the school
system in each region. Ontarios school boards trace their history back to 1816. Beforeand well after
that date, government support for education was directed to Anglican grammar schools on the English line.
The express aim of these schools, along with the nascent Kings College (later the University of Toronto),
was to educate an elite whose first loyalty would be to Britain, rather than to the republicanism south of
the border. The Province then permitted parents to band together to create their own common schools,
providing they raised the money to build or rent a school, set a tuition fee, and ran the school under the
supervision of three-person boards of trustees. In a sparsely populated province deeply riven by competing
16
religious allegiances, the decision to allow communities to proceed by their own lights made communities,
rather than the Province, the promoters of education for all. Within a short time, the majority of students
were enrolled in the common schools.
When school boards were restored, after an unsuccessful attempt to place then under municipal
council control from 1847-1850, there was one difference. In large urban areas, the schools were
consolidated and placed under one city-wide board of education. In rural areas, the rule remained one
school, one school board, and this pattern of school governance remained intact until the great school
board consolidations of the 1960s, driven forward by the slogans of centralization and economies of scale,
created county boards of education. Until these consolidations, the attitude of the province was that
communities knew best how to provide and manage the education system. In fact, schools were often the
focal point of the community, a substitute for town halls in villages without them.
B. The School Board and the Village
Community input is the strongest reason for having school boards. In retrospect, the Toronto
Board of Educations decision not to close schools was a wise one. It would be difficult to account for
the reasons behind it, except to say that trustees knew their community, and they had faith in it. That is
not something that registers on the policy instruments the province has at its disposal. And yet, it is
something that has contributed to the enduring liveability of Toronto.
There are other decisions that local trustees have taken at the behest of the combined
neighbourhoods they represent. One of them was heritage languages (now called international languages).
If Toronto is today lauded as the most multicultural city in the world, (and, by implication, a desirable
place to invest in by foreign capital), then surely the Toronto Boards decision to acclimate immigrant
children to Torontos anglophone culture while maintaining the linguistic and cultural capacities they
derived from their own families through a heritage-language programme must have had something to do
with Torontos extraordinary multicultural success.
Another decision, one vital to the preservation of an appropriate urban fabric, and one which
foreshadows Mayor Crombies 45-foot bylaw, was to forgo expropriation either to create new schools or
new parking lots. Indeed, in the late 1960s, the Toronto Board was contemplating expropriation to expand
its parking garage. Trustees, a little ahead of their time, took the initiative to halt what was then an
17
everyday practice, a practice engaged in by the federal government, the provincial governmen
and every other public authority. Once again, it is the decision a decision made possible by having
neighborhood representatives of all the people residing in the cityto fit into neighborhoods
to remake them according to the full powers of the law that public authorities are entitled to ap
has contributed to Torontos liveability.
VI. Provision of Services
[W]e must go back to the decades when policies for consolidation and amalgamation of
schools and boards, and for the substitution of great fleets of yellow buses for scattered
small school operations, were justified by reference to studies arguing for economies of
scale. Countless contract studies and hosts of masters and doctoral theses in education,
plus some in economics and management sciences, purported to show that larger school
and board operations afforded lower unit costs while holding constant the cost of quality,
or higher quality education.... Much of the history of the increasing scale of operation has
coincided with decades of remarkable increases in education costs....More importantly,
declining enrollments would now be expected to bring about markedly higher unit costs.
Indeed, if one is convinced that there are strong economies of scale in our system of
education, there is an ominous conclusion to be drawn from observations about
expenditure-enrolment relations that were registered so often in the briefs to this
Commission
R.W.B. Jackson, Commission on Declining Enrollments, 1978
The thinking of the province, for a long time has been, if it doesnt work on a smaller sc
increase the scale. This kind of thinking was forged in an era in which vertical integra
conglomeration were thought to be the most efficient means of organizing business. We have
through an era of corporate raiding and junk-bond trading whose logic was the opposite; the sy
economies of scale that were supposed to exist did not, and many companies had more value in
than in the sum. Regionalization of municipal governments and school board consolidation h
the same thing. Bigger is not better, nor more efficient, nor more responsive. Bigger is simply
In both instances, the province was attempting to create mini-provinces; yet limited their
success, since these were mini-provinces without the taxing powers of a province. Besides, th
economies of scale in dealing with unique human needs. What economies exist are to be fou
18
provision of hard services.
What the province should have done is to create Education Service Agencies on the American
model: bodies that provide non-instructional services such as capital funding or computer services, while
leaving the daily operations of the school to community school boards. If there are any great savings to
be found in education today, it will be through an agency like an Education Service Agency.
VII. Urban Form
If municipalities are to continue to grow, much of this growth will probably occur within
existing built-up areas. One assumption commonly made by municipalities is that
development should be approved because it it enlarges the tax base and brings in more
revenue, which lightens the load for everyone. But development is often approved without
adequate consideration of the additional expenses incurred for such services as schools
and health facilities,
new s e rv ic es
challenged.
With limited provincial subsidies and municipal finds available for
and i nf rast ruct ure, t hi s as s umpt i on i s bei ng
Sewell Commission
It would be of considerable benefit to the Province were the City of Toronto to grow larger.
Toronto certainly has the capacity, were land uses intensified on mainstreets and old industrial lands
cleaned up, to absorb another 200,000 or 300,000 residents. From a provincial perspective, this would
obviate the need for new 400-series highways (whether they were tollways or not), while taking advantage
of existing infrastructure. Toronto is well served by transit lines, for example. In an ideal Toronto,
everyone would carry a MetroPass, including provincial, city and school board employees.
Intensification is generally to the public good; but one has to be careful about how it proceeds.
The Toronto Mainstreets proposal had two problems. One of them was superfluous, and that was the
dispute over parking. In the interests of good urban form, it would be better to have fewer parking spaces
in the City of Toronto, rather than more. After all, any resident knows that driving into the city is an
absurd proposition; the only point to having a car is to drive out of the city. But this is a relatively minor
issue. At some point, the laws of the market will prevail, and scarce road and parking resources will be
reallocated more efficiently. Not only have European cities such as Amsterdam, Bremen and Freiburg
adopted car-unfriendly policies, but even that bastion of the free market, London, is considering ways to
19
halt traffic in the inner precincts of the city. (And, it is interesting to note, before you can buy a car in
Tokyo, the police have to measure your parking space to make sure the car will fit.)
However, it is different when development proceeds without consideration for schools. The
Toronto Board of Education is short some 450 classrooms. Had the big projects of the late 1980s: Ataritiri
and the Railway Lands, been built, 30 more schools would have been needed: the same number of schools
the City of Barrie has. Developers may have in mind sewer and water hook-up fees owing to the
municipality, and they include those in the cost of the project. But in failing to make provision for a
school, they, in effect pass the charges onto all residents or onto the province. In Torontos case, there are
no provincial capital grants: so, where do schools come from?
For years, provincial capital grants to municipalities and school boards, usually predicated on new
development, have had the perverse effect of encouraging settlement away from built-up areas. Because
of the size of its tax base, Toronto is generally ineligible for capital grants, except when it comes to
provincial blue-ribbon projects such as SkyDome or Exhibition Place, or new subways. Since theres only
one taxpayer, it has been Metropolitan Toronto taxpayers paying, through their income taxes and foregone
provincial grants, for GTA residents to move around as if the province were a gigantic checkerboard.
Some suburban residents have finally grasped the notion of full-cost accounting: there is no free lunch.
They may have gotten a cheap house, the price reduction subsidized by provincial infrastructure grants,
but they are paying in higher transportation costs, and, when the local micro-economy falls into a bust,
through the absence of accessible social services. Whatever changes the Province contemplates to The
Planning Act, it must insist that developers and new residents meet the full cost of new construction, by
setting aside space and funds for new schools and social services.
Conclusion: Principles of GTA Reform
A.
B.
c .
D.
[E]ach time we say, in a local communityand its especially true in a low-income
community-we need more services, we need more agencies, we need more outreach, we
are making a decision that the neighbourhoods indigenous associations, leadership and
capacities are inadequate to solve the problem,
diminishing the communitys powers by investing
and in that trade-off, we are always
in the system powers.
John McKnight, Ideas, CBC Radio
The recommendations that follow this report are based on the following principles:
The Province should set standards; local governments should be empowered to find ways
to meet them
The Province should ensure local governments have the fiscal capacity to meet standards,
not by invading local tax bases, but by equalization grants drawn from its general
revenues.
Instead of setting up regional agencies, the Province should promote the local delivery of
services, if necessary, by bodies accountable to local governments.
The Province should seek to strengthen already built-up areas, rather than allow new
development to be governed by the laws of chaos.
21
Recommendations
Tax Reform
1. Residential property assessment should be based on a stable and intelligible measure, not
the current market value method. Unit value, modified by some locational factor such as
zoning, as proposed by the City of Toronto is an option that should be considered.
2. All residential properties should be assessed on the same basis.
3. Commercial, industrial and provincial properties should be assessed according to their
rental value.
4. Local taxes should not be used to equalize wealth; it is the provincial governments role
to provide equalization payments to assessment-poor regions.
5. Local taxes should not be pooled, beyond the region in which they are collected, for the
same reason.
6. The provincial government should revise the education grant formula to reflect the actual
costs of education in urban areas.
7. School boards should have unrestricted access to the residential tax base, subject, of
course, to the discipline of the ballot box.
Governance
8. Local government should follow historic cultural and neighbourhood boundaries, natural
features, and contemporary communities of interest.
9. School board boundaries should reflect existing municipal boundaries.
10. Electoral representation should be based on the historical tradition of representation by
population.
Local Services
11. Day-to-day school operations should continue to be governed by school boards.
12 Should it prove more economical to provide non-instructional services on a larger scale
than the local school board, such services should be provided by regional Education
Services Authorities.
13. School social and health services should be separated from the education budget and
funded by a separate authority. Wherever possible, they, and other community services
should be provided through the neighbourhood school.
22
Urban Form
14. New developments and conversions must make provision, whether in funds or space or
both, for new school and community facilities.
15. The province should review its capital grants in the interest of promoting compact urban
form and making maximum use of existing infrastructure.
23
5650 Hurrrntario Stree[. Mississauga. Ormrio L5R IC6 Fax: (905) 890-6747 Tel: (905) 890-1099 1-800-668-1146
September 29, 1995
Dr. Anne Golden
Chairperson
Greater Toronto Area Task Force
393 University Avenue, Suite 2001
Toronto, Ontario
M5G 1F1
Dear Dr. Anne Golden:
Attached please find a statement of position that has been supported by the four
regional public boards in the Greater Toronto Area.
The statement contains a number of recommendations which have been discussed at
length among the Chairs and Directors of the GTA public regional boards, and represent
a consensus of views shared by Trustees of the four boards. These recommendations
will also be included in statements of positions that may be forwarded to you by
individual boards.
I thank you for your attention and cooperation, and again assure you of our willingness
to meet with you to clarify any issues relating to school boards that may arise as you
carry out your mandate.
Yours sincerely,
Patty Bowman
Chair,
Durham Board of Education
Beryl Ford
Chair,
PeeI Board of Education
Diane Leblovic
Chair,
Halton Board of Education
Bill Crothers
Chair,
York Region Board of Education
TRUSTEES Wendy Davies Joan Parker DIRECTOR OF EDUCATION ASSOCIAT
Beryl Ford Chw Dian Gray Norma Prior & SECRETARY David Leed
Janel McDougald (Vice-Chair) Cliff Gyles Sired! Ransom Harold Brathwaite
Tom Billard Gary Heighington Rosemary Taylor
Karen Carstensen
ASSOCIAT
Paul Mercer Ruth Thompson Harinder Tak
Laurie Cashmore Elaine Moore
THE PEEL BOARD OF EDUCATION
STATEMENT OF POSITION
GREATER TORONTO AREA (GTA) TASK FORCE
RECOMMENDATIONS
It is recommended that the Peel Board support the following positions:
1.
2.
3.
4.
5.
6.
7.
that Provincial Pooling is not deemed as an appropriate direction for
education finance since direct responsibility and accountability would be
lost.
that a rational assessment and valuation methodology be implemented in
Metro Toronto as a precondition to any pooling of assessment within the
GTA.
that Boards of Education continue to maintain responsibility for local
school governance, finance, and facilities.
that prior to any final report on Educational Finance Reform, the
Government of Ontario, through the Ministry of Education and Training
define the specific roles and responsibilities of Boards of Education vis a
vis primary providers in such areas as social services, day care, health
care, and transportation.
that prior to any final report on Educational Finance Reform, the
Government of Ontario consult with school boards to determine
appropriate expenditure levels that reflect an agreed range of services
required to meet students needs.
that the Planning Act be amended to
i) require consultation with school boards in the planning of land use
development;
ii) contain a provision to require the phasing in of new development in
accordance with the availability of adequate school
accommodation, as with other necessary infrastructure;
that each board in the GTA develop and implement an Education
Development Charges (EDC) bylaw
BACKGROUND
In February 1995 the Provincial Government established a Task Force chaired
by Anne Golden (popularly referred to as the Golden Commission or Task Force)
to study issues pertaining to the Greater Toronto Area comprising the regions of
2
Durham, York, Peel, Halton and Metropolitan Toronto. According to the terms of
reference the objective is to provide direction for the future governance of the
GTA, including the potential restructuring of the responsibilities and practices of
municipal and provincial governments. The Task Force must define a system
and a style of governance, appropriate to the Toronto of the next century, that
promotes economic health and competitiveness, community well-being and a
high quality urban environment. The first concern of the Task Force is that of
developing Confidence in the Central City. (Appendix A)
To date the Task Force has received many reports and submissions, including
submissions from mayors, regional chairpersons and cities in the GTA. The
Task Force will continue to receive submissions to September 30, 1995.
SERVICES, ASSESSMENT & FUNDING ISSUES
In June 1995 the Chairs and Directors of the four regional public school boards
in the GTA met with Anne Golden and conveyed the following concerns:
1. Metropolitan Toronto boards because of their pooled tax base currently have
the capacity to provide levels of services and administration well beyond what
the regional boards can provide for comparable needs;
Il. There is no agreed base level of services, and therefore no ability to
determine appropriate expenditure levels;
Ill. In any arrangement that brought regional and metropolitan funding together,
the regional boards of education could not/would not raise their per pupil
expenditure levels to those of the boards in Metro.
IV. Regional school boards, given that there is no agreed base level of services,
are not prepared to raise taxes in order to allow boards in Metro to maintain
their current levels of expenditures.
V. Metro Toronto must be urged to revise its valuation methodology for
assessment to bring it in line with the rest of the province.
At the June meeting with Anne Golden the Chairs and Directors agreed to
provide some details of comparative expenditures. Subsequently Barbara
Moore, formerly Superintendent of Business and Finance with the Halton Board
and recently retired Superintendent of Business and Finance in the Central
Ontario Regional Office of the Ministry of Education and Training, prepared a
draft paper on behalf of the four regional GTA boards (Appendix B).
Barbara Moores draft paper provides useful information in gross terms of the
relative wealth and expenditures of the regional and Metro boards. On page 6
3
under Financial Information, she states It is extremely difficult to draw
conclusions when comparing the financial operation of school boards unless an
in-depth analysis of their expenditures is performed. This caution is particularly
relevant when, for example, administrative and classroom costs are examined.
The data (based on 1994 MET statistics) are not readily comparable because
different boards group expenditures differently e.g. Human Resources, Academic
Computing are categorized under Instruction in some boards and under
Administration in others. In Peel, both are categorized as Administration. What
is significant in this report however, are the differences in assessment base, mill
rate effort and per pupil operating costs. In the case of per pupil expenditure for
example, the average of the GTA regional boards is $6,804 versus $8,674 for
the Metro Boards.
The draft paper also raises the issue of the potential benefits of the pooling of
industrial/commercial assessment within the GTA. The suggestion that this
could be to the benefit of the GTA regional boards is based on the assumption
that, in a reconfigured GTA arrangement, assessment ratios in Metro (i.e.
industrial/commercial to residential) would remain at their current levels. It is
highly unlikely that in a pooled GTA environment, the assessment rates in Metro
would remain at their present levels. The lowering of industrial/commercial levels
in Metro, coupled with successful appeals could lead to a significant reduction in
assessment, unless it was offset by market valuation on residential property. It is
debateable, therefore, whether the GTA regional boards have anything to gain
from the pooling of assessment. In any event a rational valuation and
assessment methodology in Metro should precede any structural changes to the
GTA.
The quality of education and the knowledge and skills of Ontarios workforce are
seen by government and business as major factors in Ontarios strategic
competitive advantage, as well as in human development planning. The Ontario
Government has recognized that these factors will be even more critical in the
future. The Ontario Ministry of Finances Ontario Economic Outlook. 1994-1995
states With population growing by 1.6 percent a year, the need for public sector
services will continue to expand. The demand for education is increasing even
faster, as students seek to upgrade their qualifications to ensure good jobs in a
more competitive world. Given this prognostication, it is imperative that the
Ontario Government demonstrate its commitment in a tangible fashion. The
Provincial share of funding for school boards went from 61 percent in 1975 to 34
percent in 1993. This is not acceptable, since in spite of the best efforts of this
Board to be financially responsible, growth and reduced provincial grants result
annually in local tax increases. If this trend continues it will place an inordinate
burden on the local ratepayer.
GOVERNANCE AND PLANNING ISSUES
4
In reviewing some of the submissions to the Golden Task Force from
municipalities and mayors, senior staff have noted recommendations that either
municipalities take over responsibility for education from boards of education or
that education funding be removed from property tax and become a direct
responsibility of the province. Recommendation 3 allows the Peel Board to
reassert its position on the issue of school board jurisdiction.
It is worth repeating that school boards are among the earliest forms of
democratic local government in this province, preceding the establishment of
regional and municipal boards. There is a long history and tradition of elected
trustees sensitive to the educational needs of young people as well as the
concerns and interests of the local community. The Peel Board does not believe
that the interests and expertise of regional and municipal councils, as well as
their other competing responsibilities, would allow them to offer the quality of
service and accountability that school boards currently provide.
Proposals that the regions take over responsibility for building schools and
capital projects are predicated in most instances on the jurisdiction for education
passing to the municipalities and regions. Not only does the Peel Board reaffirm
its position that school boards retain jurisdiction for facilities, it believes that
many of the issues that relate to the acquisition of school sites and the building
of schools can be addressed in a timely fashion if school boards were legislated
partners in the planning of land use development. Currently school boards
usually only become aware when plans are already well developed. This does
not allow school boards to plan, and imposes a hardship on growing boards to
provide schools at significant cost. This matter was addressed in a report on
School Accommodation and Financing in Peel (September 15, 1994), prepared
for the Honorable Dave Cooke: It is the position of the school boards in Peel
that the Planning Act contain a provision to require the phasing of a new
development in accordance with the availability of adequate school
accommodation, as with other necessary infrastructure. MET supports this,
recommending that schools be recognized in the funding and planning
processes similar to other community infrastructure.
It cannot be too strongly emphasized that planning and zoning decisions,
including those made by the local Committees of Adjustments, that permit
multiple families in one dwelling and basement apartments have a direct impact
on school boards. In the case of the Peel Board, it has resulted in one of the
highest student to household (.49 FTE per household) ratios among public
boards in the province, a factor which is not adequately compensated for in
Ministry of Education grant formulae.
The phasing of development, legislated school board participation in land use
development planning, and the funding for new schools via educational
development charges (EDCS) would facilitate the total planning process, provide
5
revenues to assist the acquisition of school facilities, and eliminate much of the
frustration felt by developers, home buyers and school boards.
The Chairs and Directors of the GTA regional public school boards are united in
the view that school boards are prepared to work cooperatively with
municipalities and developers to achieve rational, fiscally equitable and
responsible development plans.
..
P O BOX 60, 1 FIRST CANADIAN PLACE, TORONTO, ONTARIO M5X IC1 (416) 366-6811 FAx 366-4906
May 18, 1995
M5G 1E6
Dear Ms. Golden:
Since releasing its report/action plan on Metropolitan Torontos high commercial and
has presented it in a series of meetings with the provincial government, the two opposition
parties, the Metro government, all the area municipalities and most of the school boards.
The purpose of this letter is to summarize the points of common agreement, to highlight the
areas of concern and to give an account of how our position has been modified to
accommodate some of these views. We feel it is important to let you know how each party
has reacted to various components of The Boards reform strategy, in the hope that an
mutually acceptable strategy for
Points of General Agreement
tax and assessment reform in Metro can be developed.
.
Metropolitan Torontos assessment system is antiquated, inequitable, rife with
distortions and long overdue for replacement. It is the basis upon which stabilization
of the revenue base for municipalities and school boards depends, as well as
restoration of fairness to both residential and non-residential taxpayers.
.
Failure to rectify problems relating to the burden of property taxation on commercial
and industrial property will likely lead to further assessment losses in Metropolitan
Toronto, causing upward pressure on taxes for the remaining residential and business
taxpayers--a self-perpetuating cycle which will continue to plague the local budgeting
process until such time as appropriate reforms are introduced.
.
The provincial-municipal and education grants structure needs to be carefully
examined to determine the degree to which it discriminates by design--if at all-
against Metropolitan Toronto. In some instances the demographic and socio-
economic profile of the population may not be being fully recognized for grant
purposes, most notably in education.
- 2 -
The determination of an appropriate assessment methodology for Metro will
probably have to be made by the province, given that previous attempts at achieving
consensus at the local level have not succeeded.
Some local services currently financed through the property tax would be more
appropriately financed from other tax bases--social services in particular.
Governance design changes in the GTA are not essential to the resolution of
commercial/industrial tax problems in Metro.
Key Areas of Concern
Both the provincial government and the provincial opposition parties are generally
unreceptive to reforms premised on significant increases in current levels of
provincial taxation--as would be entailed, for example, by the Fair Tax Commissions
recommendation that the share of current education costs raised by residential
tax-payers in Ontario be shifted primarily to income taxes.
Many municipal officials remain concerned by the potential implications of a section
63 full market value reassessment in Metropolitan Toronto, in view of the large,
unpredictable and irrevocable tax shifts which would occur from the multi-unit
residential, commercial and industrial classes to the 1-2 unit residential class. Some
expressed a strong desire to investigate other bases for assessment such as unit
assessment (a system based on objective measurements of land and building
dimensions), or unit assessment weighted by local rental values and neighbourhood
factors (as recommended by the Fair Tax Commission).
School boards are not conceptually opposed to the principle of a uniform, province-
wide effective rate of tax on commercial and industrial property in support of public
education, as was recommended by the Fair Tax Commission and is supported by
The Board of Trade. However, Metro public school board officials remain suspicious
of the principle of province-wide pooling of such taxes, as was also recommended by
the Fair Tax Commission--in the concern that there is little assurance that the
province would recognize the particular needs of the Metro student population in the
subsequent disbursement of these pooled revenues, or even that they would be
devoted to education at all.
- 3 -
The Board of Trade has weighed these various concerns and has subsequently refined and
modified its position on assessment tax and local government finance reform as follows:
First, assessed property values in Metro must be modernized. This must be done
using whichever method of valuation best meets the test of comprehensibility,
objectivity and administerability. In all likelihood, the appropriate assessment
methodology will be a hybrid one which combines the best features of market value
with unit assessment. This will have to be tested extensively before introduction.
Secondly, following assessment reform, the fixed residential/non-residential mill rate
relationship must be abolished and replaced with a variable mill rate system, under
which area municipal governments would have the right to set a different mill rate
in each property class for the municipal share of the tax burden. The endorsement
of a variable mill rate system is the key change from The Board's original position.
The current provincially-dictated relationship (which requires a fixed, 15% mill rate
discount for the residential sector) precludes municipal governments from having any
discretion over the distribution of the residential vs. non-residential property tax
burden--except, as noted above, through the cumbersome mechanism of a section 63
reassessment which would cause significant, unpredictable and irreversible tax shifts
between classes. The responsibility for determining the residential/non-residential tax
relationship properly resides at the area municipal level and should not be decided,
as it currently is, by the arbitrary result of a reassessment.
Decoupling mill rates from the assessment system will allow local councils to
determine the residential vs. non-residential tax relationship for themselves, rather
than have it dictated by a rigid and indiscriminate assessment system and mill rate
structure. It would be a sensible devolution of provincial authority which would
increase the autonomy and accountability of local governments, and help stimulate
their competitive instincts. It should be emphasized that variable mill rates do not
guarantee a more competitivepropaty tax environment for businesses in Metro; itsimply
gives local councillors the means to establish one.
It should be noted that the Fair Tax Commission also recommended variable mill
rates, and that such systems currently exist in British Columbia and Alberta.
Thirdly, the province must establish a uniform rate of property tax on non-residential
property across Ontario for the support of public education, a policy which would
- 4 -
reflect the equal benefit all Ontario businesses derive from the education system.
This will produce tax reductions in Metro, but need not lead to significant tax
increases on business anywhere in the GTA (or any reduction in resources for the
classroom) if administrative reduction targets, such as have been adopted in other
provinces, are introduced by the government and enforced through the grants system.
The question of province-wide pooling of non-residential taxes for education
purposes will not be resolved to the satisfaction of school boards unless the province
is prepared to commit to disbursing these revenues on the basis of actual student
population characteristics (e.g., relative measures of poverty, unemployment,
immigration share, etc.) rather than as an assessment-tested residual grant, as is
currently the basis of the basic legislative grant for education.
Fourthly, the province and municipalities must resume negotiations for the
disentanglement of certain funding and program delivery responsibilities, chiefly
social assistance, which have a disproportionate impact on Metropolitan Toronto.
Ideally, the province should assume the full cost of social assistance benefits so as to
reduce the current unwarranted dependence on the property tax for financing a share
of this service. This will entail provincial tax increases, but of an order of magnitude
less than would be entailed by a provincial assumption of education financing
responsibility. Alternatively, human services costs should be exchanged for other
services for which funding responsibility could be devolved to the local level.
Fifthly, the provincial-municipal transfer payment system has little role to play in
addressing the commercial/industrial tax problem. The Board has demonstrated
that within the GTA, municipal transfers do not discriminate against Metro when
compared on an objective, per-capita basis. As to the broader issue of tax revenue
outflows from the GTA to the rest of the province, these appear largely to be the
incidental impact of a geographically indiscriminate progressive income and
corporate tax structure--and of a geographically indiscriminate income redistribution
system--on a region which has high average earnings and the preponderance of the
provinces corporate activity.
Some systematic discrimination clearly does occur in some areas, e.g., fees charged
for vehicle licence renewals. But the elimination of net tax transfers out of the GTA
would require the introduction of geographically-segregated tax structures, such as
a lower personal or corporate tax rate within the GTA--an unrealistic proposition.
The foregoing are by no means the only potential approaches to reform. However, we view
all of them as reasonable and pragmatic approaches to resolving some very difficult
problems in Metro. Most can be implemented without any reference to the future
governance design of the GTA--indeed, several of them may provide direction as to a
- 5 -
reformed tax, assessment and municipal finance system applicable to the whole of the GTA,
if not the entire province.
We understand that you have recently assembled a working group to deal with property tax
and finance reform in the GTA, which includes a wide range of municipal and provincial
officials as well as academic experts in property taxation. Conspicuous by its absence from
this working group--in view of its detailed work on property taxation and its extensive efforts
to consult on the matter with local governments, school boards and the province--is The
Board of Trade. While we appreciate your concerns about the need for balance in
stakeholder representation on this group, we would submit that municipalities and school
boards are anything if not major stakeholders themselves.
For this reason, we feel deserving of a formal place on this working group. We await your
response to this request.
Respectfully submitted,
Stephens B. Lowden, FCA
President
cc: The Chairman of Metropolitan Toronto; Chairs of the Metropolitan Public, Separate,
and French School Boards; Mayors and Public School Board Chairs of the City of
Toronto, North York, Scarborough, Etobicoke, York and the Borough of East York
The Hon. Bob Rae, MPP
Premier of Ontario
The Hon. Ed Philip, MPP
Minister of Municipal Affairs
Ms. Lyn Mc Le od MPP
Leader of the Official Opposition
Mr. Mike Harris, MPP
Leader of the Progressive Conservative
Party of Ontario
Mayor Hazel McCallion Chair
GTA Mayors Committee
Description of The Board of Trade
of Metropolitan Toronto
The Board of Trade of Metropolitan Toronto is the largest community
Board of Trade or Chamber of Commerce in the country. We are an
independent, non-profit organization, voluntarily funded entirely by the
private sector.
The Metro Toronto Board of Trade provides a vehicle for people in every
kind of business to come together and make a contribution to the
economic and social well-being of this community. The Boards policy
development work, networking events and seminar activities are initiated
through a network of over 30 standing and special committees,
comprised of nearly 500 Board members.
Through this volunteer committee structure, The Board lobbies
proactively on behalf of its members - debating policy and program
directions with government, and assisting in the development of
government initiatives which will lead to an economic environment
conducive to the development, growth and competitiveness of local
business.
The Board produces numerous briefs and submissions for presentation
to municipal, provincial and federal governments on an ongoing basis.
In recent years, The Board has annually compiled an average of 75 such
documents in support of its lobbying activities.
The Boards membership comprises abroad cross-section of the greater
Metropolitan Toronto business community, from self-employed
businesspersons to major corporations, both domestic and foreign-
owned, private and publicly traded, engaged in all manner of business
from service to financial and manufacturing activities. We have served
Metro Toronto for over 150 years, and our members continue to help
build one of the most attractive communities with one of the strongest
economies in Canada.
THE COUNCIL OF THE BOARD OF TRADE
OF METROPOLI TAN TORONTO 1994/1995
Executive Committee
STEPHENS R LOWDEN, FCA
PRESIDENT
Executivc Partner
Ernst & Young and
ViccChairman
Sobeco Esnst & Young
MURRAY BEYNON
VICE PRESIDENT
Partner
Brisbin Brook Bcynon, Architects
R MICHAEL LAUBER, FCA
VICE PRESIDENT
Partner
KPMG Peat Marwick Thome
A. ROGER CREASOR
VICE PRESIDENT&
HONORARY TREASURER
Senior Vii President
& General Manager
Met r opol i t an Toronto
Royal Bank of Canada
DONALD L BROWN
IMMEDIATE PAST PRESIDENT
Honorary Cbairman
Johnson & Higgins Ltd.
Members of Council
NUALA BECK
Prcsident
Nuala Beck&Associates Inc.
TREVOR CARNAHOFF
President
NAPA Airport Development Associates
R.W. (BOB) CHISHOLM, FCA
senior Exccutivc Vice Prcsident, Finance
and Administration
The Bank of Nova Scotia and
President and Cbief Exccutive Officcr,
The Mont r eal Trust Company
W. ROSS DEGEER
Prcsident
Tribune Consultants Inc.
R ROSS DUNSMORE
Partner
Hicks Mor l ey Hamilton Stewart Storie
GEORGE A. FIERHELLER
Vice Chairman
Rogers Communication Inc.
JOHN O. HAAPALA
President
The Haapala Group
GEORGE 13 HARVEY
Cbairman
Unitel Communication Inc.
FRANK N. HEAPS
President
The Upper Canada Brewing Company
DEZSO J. HORVATH
Dean, Faculty of Administrativc Studies
York Univcrsity
DONALD J. McIVER
Chief Economist
Sun Life Assurancc Co. of Canada Ltd.
A. BRUCE McKELVEY
Prcsidcnt & Chi ef Ex ec ut i vc Officer
CDI Career Development Institutcs Ltd.
MARALYNNE A. MONTEI TH
Partner
Morris/Rosc/Ledgctt
RONALD D. MUNKLEY
President & Chief Executive Officer
The Consumers' Gas Company Ltd.
GAIL PAECH
Prcsident & Chief Executive Officer
Toronto East Gcncral Hospital
H. GAIL REGAN
Vice Chair
Cara Opcrations
CHRIS RIDABOCK
Senior Vice President
JJ Barnicke Ltd.
MICHAEL H. WILLIAMS
Senior Vice President
Polk Canada Ltd.
DARYL WOODS
President
Public Image Design
RONALD H. YAMADA
Senior Vice Prcsident
New Technologies & Corpnrate Affairs
MDS Health Group Ltd.
DAVID J. McFADDEN, Q.C.
Partner
Smith Lyons Torrance Stcvenson & Mayer
THE BOARD OF TRADE OF METROPOLITAN TORONTO
SURVEY ON BUSINESS PROPERTY TAXES IN METROPOLITAN TORONTO
O 20% No, I do n ot think it is a significant factor
(If not, to what factors would you attribute the severity of t he recession's impact in Metro?)
O 58% No
4. Would (or did) your relocation or expansion involve moving to another location within the Greater Toronto Area (i.e.. Halton,
Durham, York or Peel Regions), or out of the area entirely?
5. If you wer e to consider relocating or expanding elsewhere (or if yau did), which fa ct or s Would be (or were) the main
detcrminants of this move? (Please check no more than five factors)
Other.
6. If you would never consider rclocating or expanding your bussiness elsewhere,
is it bccause: (Please Check no more than five if
yOU answered "Yes" to Qucstion 2, please skip this question).
We simply couldn't afford to relocate
It would be itmpractical for us to relocate a central urban location is essential for the success
of our business
Our customer and/or client base is totally local; we would have to establish an cntirely new market if wc movcd
Metro is the designatcd market area/territory served by our(local branch, outlet, or office); moving out is not an issue
as the parent firm already has other (branches, outlets, offices) outside Metro
We simply pass on thc cost of high property taxes onto our customcrs
Inadequate/substandard housing schools roads, trains, utilities elsewhere
Too much municipal bureaucracy, red tape' elsewhere
Local service costs would bc too high elsewhere (eg., phone, hydro, courier)
Propcrty taxes not much lowcr elsewhere
Other.
7. lf you were starting an entirely new business yourself and had the optiom locating it
wherever you liked in tbc Greatercr Toronto
Area (GTA), where do you think you would find the most hospital busi ness environment
?
Sec ondar y educ at i on (25.2%) 65% 3% 32%
Policc (10.7%) 28% 2%
72%
soc i al & family ser vi c es (5.7%)
Publ i c w or k s (5.2%) 4% 15% 8 1 %
Transit (4A%) 17%
12%
71%
Fi r e
pr ot ec t i on (2.8%) 5 % 3%
I
9. Considering how you just ranked the distribution of bcncfits between residents/homeowners and businesses in Metro, do you
believe businesses in Mctro sbould pay property tax rates which are, for every dollar of real property value...
10. Mctro Toronto has the one of tbc highest lcvels of per-pupil public school board spending in Ontario. Do you think Metro bas
a more competitive labour force because of this?
11. Which statement most accurately r ef l ec t s your beliefs:
Metro busincsscs bcncfit directly from the level of pcr-student public education spending in Metro, and should
tberefore be expected to pay property taxes at a levcl commcnsurate with tbat bencfit.
der i ve a mor e gener al benef i t f i r m education spcnding in the province as a whole; therefore, Metro
employers should be cxpectcd to pay property taxes that arc comparable to those paid by employers elsewhere in the
provincc for tbc bcnefits of public education.
JUN 14 95 08 : 4 2 4 1 6 3 6 6 4 9 0 6 PAGE . 004
Do you own a home in Metro?
Are you...
owned or leased property in Metro
Nei t her an ow ner nor an empl oyee of a busi ness w i t h ow ned or l eased pr oper t y m Met r o (e.g. w or k out si dc Met r o,
publ i c ser vant r et i r ed, sclf-employcd uncmployed)
If applicable, please check your type of business:
BOARD OF TRADE OF METROPOLITAN TORONTO
TABULATED RESULTS OF
SURVEY ON
BUSINESS PROPERTY TAXES
IN METROPOLITAN TORONTO
(This survey was mailed in October 1994 to 520 Chief Financial Officers
of Metro firms listed in The Boards 1995 "Toronto Region Top
Employers Guide", covering all major SIC categories in firms
with employment of 75 or more
Results are compiled from 103 responses.)
to:
re:
Task Force on the Greater Toronto Area
Attached Brief, dated October 2
I faxed you my Brief last Friday, dated September 28.
Please replace it with the attached version, dated October 2.
enc.: Brief, Oct. 2/95 -2 pages
55 John Street, Suite 214. Stn. 1020 Toronto, Canada M5V 3C6
Telephone: (416) 392-4094 Fax: (416) 3924121
Brief to the Greater Toronto
Grown-up cities:
Funding and governance
Area Task Force
reform proposals
October 2, 1995
for the GTA
1. Define a vision for the GTA: Environmentally and fiscally sustainable land use and
growth .
2.
3.
4.
5. Allocate the maximum number of responsibilities to the cities: grown-up cities.
6. Identify GTA-wide services, keeping the list as short as possible: Expressways,
garbage, poking, environment (conservation authorities), emergency, Zoo, Metro
Reference Library (one of the top public Libraries on the Continent).
Plan rail transit (GO, subways possibly LRTs) GTA-wide; leave bus and streetcar transit
to the cities - they know best whats needed, what they can afford.
(please turn over)
staff 392-4095 Mary Louise Sabetti 3924096
7.
8.
9.
Conservation authorities have long functioned along these lines: money for their
budget is brought to the table by councillors from their city/regional members. Mission
identification is strong, the budgets considerable, debate healthy, spending sober.
10. Give cities the power to tax in innovative ways, to impose user fees and to engage in
public-private partnerships.
Having to ask their own taxpayers for all operating and capital funds will encourage
city councillors to spend soberly.
11. Do not establish special-purpose bodies (SPBS) to manage the GTA.
SPBS are unaccountable to the taxpayer. Theyre bureaucrats delight. For every
good reason, today SPBS are not the norm in Ontario. If an existing SPB depends
partly on citizen-members expertise leave it alone.
DRAFT
This is a preliminary version. Numbers are still being checked. Please
do not quote or circulate without checking with author (phone: 964-3584).
Comments would be greatly appreciated.
SOLVING THE GTA PROPERTY TAX MESS:
SOME PROPOSALS FOR
THE BUSINESS PROPERTY TAX
A submission to the Task Force on the Future of the GTA
by
John Bossons
University of Toronto
June 6, 1995
The subject of this paper is the business property tax problem in the Greater Toronto Area (GTA).
The paper provides a brief overview of the magnitude of the problem and then goes on to propose a
three-part solution:
B a quick fix aimed at providing an immediate partial solution
B a new provincial business property tax that could be implemented by 1998
a reformed education finance system that would go into effect when the new provincial
business property tax is implemented
Each element of this three-part solution can stand on its own. In particular, the quick fix is meant to
be implemented through legislation in the summer or fall of 1995 without waiting for a thorough
review of the long-term solutions. Its purpose is to provide immediate relief in the most extreme cases
of overtaxation and to provide credible evidence to the business community that the province is
committed to business property tax reduction.
The fiscal crisis in Metro is caused by several factors, notably a property tax system which has
become ossified and which has not been adapted to the economic reality of the depression in the real
estate market which has occurred in the Greater Toronto Area. If not addressed, the fiscal crisis in
Metro Toronto will worsen as businesses leave and are not replaced, assessments decline, and welfare
responsibilities become more onerous. The knife-edge nature of the current temporary equilibrium
could easily slip into serious crisis if Ontario moves into another serious recession. Indeed, there is a
strong provincial interest in addressing the local fiscal crisis quickly, so that a worsened fiscal crisis in
Metro does not drag the rest of the provincial economy down more deeply when the next recession
comes.
Property taxation is in serious need of repair both for business taxation and for taxing households. In
this paper, I concentrate on the business property tax because its reform is the most urgent. I will deal
with reform of the residential property tax in a subsequent paper for the Task Force.
The paper is written in the form of a question-answer dialogue so that it can easily be modified to deal
with additional issues and/or detail. Please send me additional questions that need to be answered and
I will respond. Questions or comments can be faxed to me at 964-0061 or 978-6713. Alternatively,
please call meat 964-3584.
Contents
Foreword
Page
1
A.
B.
c .
D.
E.
F.
G.
Introduction and overview 3
The GTA business property tax problem 10
A quick fix for the business property tax 13
Longer-term reform of the business property tax 16
A new system of business assessment 22
Reforming education finance 26
implications for Iocal finance
30
3
A. INTRODUCTION AND OVERVIEW
This section deals with alternative approaches to reforming property taxation at a very general level.
It attempts to provide some perspective on what is achievable.
1. What is the problem to be solved?
One of the problems in discussing the property tax mess in the Greater Toronto Area is that different
observers focus on differing aspects of the problem. It is like the parable of a group of blind men
feeling different parts of an elephant and describing what they sense. All of their different statements
may be true. But their individual statements focus on particular aspects, reflect tiering assumptions,
and do not describe the totality.
There are three principal aspects of the property tax problem on which different observers focus. They
can be Summarized by the following sets of statements:
The property tax system is broken. From a municipal officials viewpoint: Appeals are
out of hand. The assessment base is seriously declining. From a taxpayers viewpoint:
Assessments are unfair and arbitrary. And taxpayers do not have a fair chance in appeals.
Officials hold all the cards.
Property taxes are hollowing out Toronto. From a businessmans viewpoint: Taxes on
business property are higher in Metro than anywhere else in North America. And they stay
high even when recessions reduce businesses ability to pay. Its no wonder that businesses
are fleeing.
Property taxes shouldnt be funding education. From a taxpayers viewpoint: It is unfair
to fund education by taxes which are poorly related to ability-to pay. Why should
Ontarians with the same incomes pay different amounts of tax just because of where they
live?
All these issues are both relevant and important. They all need to be reflected in policies designed to
solve the property tax problem in the GTA. But the aspects of the problem which they reflect are
different. Solving any one of them separately will not necessarily contribute to solutions of the others.
In this paper, I will discuss each one of these separate issues and propose interim and long-run
solutions. The discussion will necessarily proceed sequentially, dealing with each problem separated
and then subsequently discussing how they are interrelated.
4
2. Can the problem be solved?
Not easily. The difficulty of solving any one of the problems described above in a zero-sum context
is summarized by the following statements:
B The property tax problem in Metro shouldnt be solved by increasing taxes in the
communities outside Metro. From the viewpoint of suburban taxpayers and politicians:
Dont tread on me! Let Toronto solve its own problems.
The property tax problem in Metro cant be solved by increasing taxes on Metro
residents. To quote from a Conservative election brochure: My party will never impose
MVA on Toronto homeowners. Or, from a Toronto taxpayer: Metro residents already
pay a higher fraction of their incomes in property taxes to finance education than do most
Ontarians. Why should we be singled out to pay even more?
Property tax reform can be made easier if accompanied by overall reductions in property taxes, as
proposed by the Fair Tax Commission in 1993. But, in the current political context, it is unrealistic to
propose that income taxes be increased to pay for property tax reductions. And, given the imperatives
of deficit reduction for the province, other sources of money will be difficult to find.
I believe that, in this context, the only source of a solution is a province-wide reform which can be
justified on systemic grounds. Taxpayers generally must come to recognize that the current property
tax system is both unfair and unsustainable before it will be possible for politicians to implement
reforms. And they will have to be convinced that the new property tax system implemented by such
reforms is itself fair.
This means that all of the defects of the current property tax
Taxpayers will not believe that a new property tax system is
not addressed.
3. What are examples of zero-sum solutions?
Two have been proposed:
system are going to have to be dealt with.
fair if the major perceived problems are
B Making business taxes a uniform fraction of market value throughout the GTA. This
would reduce business property taxes in Metro but increase them in the outer GTA. Taxes
would go up by 35 percent on commercial property in Peel.
Imposing a made in Metro solution by moving to full market value assessment for ail
properties in Metro. This would reduce business property taxes in Metro but increase taxes
on homeowners throughout Metro by an average of 85 percent.
It does not take rocket science to realize that neither of these so-called solutions is politically
feasible.
5
4. But isnt the overtaxation of business properties in Metro the result of undertaxation of
homeowners?
Not if residential property taxes are compared to household incomes. The ratio of residential property
taxes to household incomes is well above the provincial average throughout the GTA, as is shown by
the following (data is percent of aggregate household incomes paid in residential property taxes in
1992):
Metro 2.1 percent
Peel 2.2 percent
Rest of outer GTA
Provincial average 2.0 percent
It is true generally, both in Metro and in the outer GTA, that homeowners pay less tax as a fraction of
incomes than do apartment dwellers. But rectifying this wouldnt change the fact that all GTA
residents taken together already pay above-average property taxes, whether inside or outside Metro.
5. Can transitional provisions make reform acceptable?
No. Transitional provisions that mitigate tax increases during the initial impact of tax reform are
absolutely essential. But they will not overcome the deep resistance to tax increases in a zero-sum
context. Taxpayers, like businessmen, can do present value calculations. They know that phased-in
property tax increases will be immediately reflected in lower values of their properties.
Taxpayers will accept tax increases only if convinced that the alternative is worse. The only way tax
reform can be made politically feasible is to demonstrate that all Ontarians are going to have to pay in
some form to reduce property taxes on business in Ontario in order to keep jobs and incomes from
moving elsewhere. That means theyre going to have to be convinced that expenditures now financed
by property taxes have been reduced as much as they can be. And theyre also going to have to be
convinced that the method of payment is fair.
6. Then how do we find solutions?
By looking for province-wide solutions which arent just ad hoc.
The problems of the property tax in the GTA reflect systemic problems in the Ontario property tax.
They happen to be particularly bad within the the GTA because of history and the traumatic effects on
the real estate market of the 1990-93 recession.
I believe that it is pointless to recommend ad hoc tax changes that are confined to Metro or to the
GTA. While it is possible to devise local tax changes that would, if implemented, solve particular
aspects of the GTA property tax problem, it will be very difficult to persuade taxpayers and politicians
that such changes are anything other than zero-sum redistribution that are motivated by an attempt to
gouge some taxpayers merely in order to benefit others.
The only tax changes that have any chance of being implemented are, I believe, tax reforms that apply
throughout the province and improve the perceived equity-of the system. Reform must be systemic,
not local, to be convincingly directed to improving equity.
7. Can tax reform be
Probably not. There is
6
separated from governance reform?
a widespread belief among taxpayers that two-tiered municipal governments
and school boards are inefficient and insufficiently accountable. It is probably not possible to
persuade taxpayers to accept the tax increases inherent in tax reform without at the same time
addressing these beliefs.
8. So much is interconnected: tax reform, municipal governance, education finance, the health of
the GTA and Ontario economies. How can property tax reform be made manageable?
By simplifying and by focussing on fundamentals.
We can simplify by restricting ourselves to what is inherently of provincial interest, ignoring issues
that can be dealt with by local politicians. And we can cut through to the core issues by looking first
at principles and objectives. Solutions derive from the fundamentals.
9. What are the fundamentals?
They differ for education finance and for financing local services.
There is, I believe, very widespread concensus on the following principles and objectives of education
finance:
B
(inclusive of business occupancy tax) relative to before-tax net rents.
Assessment Act to add a notwithstanding clause that would do the
specify that, notwithstanding other provisions of the Act, the sum of realty and business
assessments on an occupied commercial or industrial property shall not exceed an amount
which, when multiplied by the combined mill rate for the municipality in the previous year,
results in a total property-based tax that exceeds 60 percent of the current fair market
before-property-tax rental value of newly-rented similar property in the vicinity or such
lower fraction as may be established by regulation
provide that this provision will be reflected in assessment rolls delivered to municipalities
specified by regulation (including all those within Metropolitan Toronto) for the 1997
taxation year and in all other Ontario municipalities for the 1998 taxation year
provide that, for the 1996 and 1997 taxation years, assessments for occupied business
properties shall, where justified on appeal, be reduced to an amount that caps property-
based tax at 90 percent of before-tax current rental value in 1996 and 75 percent in 1997
provide that assessments of vacant commercial and industrial buildings be reduced
proportionately
Note that this is structured to do three things:
B provide immediate relief in the most extreme cases through the appeals process
B provide two years for full administrative implementation of the cap for all properties in the
province
provide for a phased-in impact of the business tax reductions on municipal revenues
Note also that current is meant to mean values prevalent in the previous year. This accords with
practice in B.C., where values established for each taxation year in assessment rolls delivered each
January are updated to reflect market values prevalent as of the preceding September.
14
25. This doesnt change taxes on vacant land. Is this a deliberate omission?
Yes. One intent of the quick fix is to reduce the incentives for demolition.
26. Can municipalities and school boards cope with the resultant loss of assessment?
The facile answer would be that theyll have to anyway. Either the most extreme assessments are
reduced to reasonable levels by legislation or they will be reduced through building demolition.
Current revenues from the business property tax are unsustainable at current market rental values. The
issue is not whether current revenues from the business property tax should be sustained. They cant.
The only issue is whether provincial and municipal politicians face up to the reality of the problems
created by the inevitable reduction of revenues from the business property tax in Metro.
27. What can the province do to ease the transition for municipalities?
Implement a disentanglement of overlapping expenditure responsibilities by doing the following:
Eliminate ail local responsibility for funding social assistance, including day care, effective
July 1, 1996
Transfer responsibility for administration of social assistance to the province, effective
January 1, 1997
B Compensate in part for this by eliminating a number of provincial grants to municipalities
for other purposes, as proposed in the abortive 1993 attempt at provincial/municipal
disentanglement
Note that the proposed dates for the transfer of funding and administrative responsibilities are meant to
provide a crudely-matched phase-in of financial benefits to municipalities as well as to allow time for
an orderly implementation of transfers of staff from municipal to provincial payrolls.
28. Will the proposed expenditure reductions exactly match reductions in tax revenues?
No. The purpose of the proposed transfer of responsibilities is twofold:
B to provide a rough and partial offset to the effect of the loss of municipal tax revenues
B to implement a disentanglement of expenditure responsibilities that currently diminishes
political accountability
The 1993 disentanglement exercise was abortive precisely because it tried too hard to leave every
government (including the provincial government) no worse off than before. Offsets can only be
rough. And in this case, with the proposed transfer of administrative responsibilities and no change in
responsibility for assessment costs, virtually all municipalities will benefit financially from the
disentanglement.
15
29. Doesnt this mean that municipalities outside the GTA will benefit from the
while not being severely affected by the cap on business property taxes?
disentanglement
Yes. This benefit can be used to smooth the way for the province-wide change in business taxation
proposed below in sections D and E.
30. How will financial benefits be distributed among regional and local municipalities?
This obviously depends on whether upper-tier municipalities continue to exist. If they are collapsed to
a single tier, then this distribution problem becomes academic. If not, two approaches are possible:
B Mandate tax reductions for upper-tier municipalities in 1996 and 1997 that equals one-half
of the budgetary effect of the elimination of municipal funding for social assistance, thus
leaving room for a tax increase of the same amount by lower-tier municipalities.
Require municipalities to explain the budgetary effects of the changes to taxpayers in
notices accompanying tax bills.
Either or both would help make clear to taxpayers what is happening. My own preference is for the
second alone, relying on taxpayers and the media to publicize inappropriate municipal responses prior
to municipal elections in the fall of 1997.
31. What can be done for school boards?
Assuming for the moment that there is no change in the current system of financing education,
provincial grants to school boards will continue to be based on equalized assessments. If this is the
case, then it is imperative that the definition of equalized assessment be modified to reflect reductions
in business assessment resulting from the rent-based cap.
Because of defects in the current system of education funding (notably in the definition of recognized
expenditures), this modification of the definition of equalized assessment will only partly compensate
school boards for the decline in assessment caused by the rent-based cap.
A better solution is to implement a complete reform of the education funding system, as proposed in
section F.
16
D. LONGER-TERM REFORM OF THE BUSINESS PROPERTY TAX
This section proposes that the business property tax be reformed to make it more uniformly consistent
with business ability to pay and less distorting in its impact on business decisions regarding where
they locate. A key element of this proposal is that the business property tax be provincialized, so that
it is uniformly implemented throughout Ontario. A new provincial business property tax could be
implemented effective January 1, 1998.
32. Whats the justification for a tax on business property?
Pragmatic. It exists, both in Ontario and elsewhere in North America. So long as it is not excessive,
it is a practical way of raising money from business that, for any given level of government
expenditures, permits other taxes to be lower than they otherwise would.
Since we cant increase corporate income tax rates beyond current levels set by competing tax
jurisdictions and cant increase payroll taxes without risking job losses, a tax on business-occupied
property allows other distorting taxes such as personal income taxes to be reduced.
33. This makes it seem as if the business property tax is a provincial tax Isnt there also
justification for a local business property tax?
Yes, to the extent that a locally varying business property tax is levied by municipalities to pay for
local services that increase the value of business properties. But the business property tax is used to
raise much more than what can be justified on the basis of services that benefit business properties.
34. If a business property tax is largely a substitute for other provincial taxes on businesses,
shouldnt it be a levied by the province?
Yes, or at least largely so. Differential tax rates on business properties in different parts of the
province distort location decisions, except where such differences reflect differential benefits from
locally-provided municipal services provided by the tax.
To the extent that business property taxes directly or indirectly are used to finance provincially
determined expenditures such as on education, the business property tax should be treated as one
component of the provinces portfolio of taxes on business activity. As such, the tax should be
implemented uniformly across the province.
Having said this, it is useful to retain a local tax on business property to permit municipalities to use
the tax to provide services that increase the rental value of such property. But such local taxation
should be levied on a base that is provincially determined, in effect piggy-backing on the provincial
use of the tax. And there is a provincial interest in limiting the extent to which local municipalities
are able to use the local business property tax to export taxes otherwise paid by local residents to
residents of other parts of the province.
17
35. For the education component of the business property
pooling?
Of course. There is no justification for taxing businesses in a
tax, doesnt this in effect mean
non-uniform way to finance education.
The education component of the business property tax should be provincialized, made entirely a
provincial responsibility, and imposed uniformly across the province.
This means that moneys raised from the education component of the business property tax would
become part of provincial general revenues. As noted above, this is appropriate, since they are in
effect a substitute for other provincial taxes that contribute to general revenues.
This means in turn that the education funding system would have to be modified to reflect this change.
What this implies is described below in section F.
36. What defines ability to pay for a business property?
Ultimately, what consumers pay for the products of the business and what building use is efficient in
the production and distribution of those products. This is reflected in the value in use of business
property. It is the market for the use of business property which determines the total value in use
that is available to be shared between government and property owner through the property tax.
Business property taxes are paid out of before-tax net rents. The before-tax net rental value of a
business property thus defines the ability to pay property tax associated with that property. The
current business property tax problem in the GTA results from the fact that business property taxes are
an excessive fraction of current before-tax net rental values.
37. But isnt the property tax a tax on property values? Why should it be related to rent?
Because rent is the source of cash flow out of which property taxes can be paid. Any annual tax must
bear a reasonable relation to the annual income or cash flow out of which it is paid.
The semantics of taxation are often a major impediment to correct thinking. For example, an annual
wealth tax is often categorized as a wealth tax. But if levied annually, it must be paid out of income
generated by that wealth. Accordingly, any jurisdiction which imposes an annual wealth tax (such as
Switzerland) levies the tax at rates which are a reasonable fraction of the potential income from such
wealth. Similarly, a tax on real property must bear a reasonable relationship to the rental income
generated by the property.
38. Is before-tax net rental value the equivalent of profits on real estate investment?
No. It is net of operating expenses (normally the responsibility of the tenant) but gross of interest on
capital borrowed to finance a property investment and of some other expenses borne by property
owners (e.g. legal expenses and leasing costs).
The proposed tax base is really a measure of the service value of the land and buildings making up a
property. As a tax on this service value, the business property tax is more akin to a sales tax, albeit
levied at a high rate.
18
39. How can the business property tax be made to reflect this definition of ability to pay?
By basing the business property tax on the current fair market before-tax net rental value of the
property.
40. Is this administratively feasible?
Yes. The implications for business assessment are described in the next section.
41. How quickly?
It would take time to change the administration of business assessment, so a new provincial business
property tax could not be implemented immediately.
The administrative implications are discussed in the next section. As noted there, 1998 is a reasonable
target date for beginning the new provincial business property tax. It may be necessary to phase in its
administration; methods of doing so are discussed in section E.
42. How should this tax base be taxed at the provincial level?
At a uniform rate throughout the province. There is no more justification for locally-varying
provincial tax rates on business property than on business payrolls.
43. How would the provincial tax rate on business property be determined?
In the same way as any other provincial tax rate. The provincial tax rate on assessed rental values of
business properties would be set by provincial legislation.
As with other taxes, a major factor in determiningg the provincial tax rate on business assessment
would be comparable effective tax rates in competing tax jurisdictions, notably neighboring provinces
and states.
44. How do Ontario business property taxes stack up compared to taxes in competing U.S. and
Canadian jurisdictions?
Theyre high. Indeed theyre world class, at the top of any list of effective tax rates.
45. Does this matter?
Yes. But their impact on business location decisions is offset in part by lower payroll taxes.
Ontario taxes on business are, in total, reasonably competitive relative to competing U.S. jurisdictions
when the much higher U.S. costs of employee medical benefit plans are taken into consideration.
However, the mix of taxes is very different, with much higher property taxes in Ontario offset by
higher payroll taxes in the U.S.
19
46. Whats the economic effect of the different tax mix?
There are two effects, both of which reduce business investment in Ontario relative to what would
otherwise occur holding other factors constant.
The first effect is perceptual. The level of business property taxes in Ontario stands out so
dramatically that some business investors dont look further.
The second effect is more fundamental. The unusually high reliance on property taxes in Ontario
increases the relative importance of business taxes which are inflexible and hence do not go down (as
do payroll or income taxes) when business sales revenues decline in a recession. This enhances the
magnitude of the impact of recessions on business profits and, by so doing, increases the risk of
investments in Ontario.
This latter effect is magnified by the way in which property taxes are administered in Ontario. In
competing jurisdictions, assessments are revised more frequently and so adjust more quickly to
recession-induced reductions in rents and property values. In Ontario, property taxes are effectively
frozen and so completely inflexible.
47. Does this mean that there is an identifiable economic cost associated with the extent of
Ontarios reliance on business property taxes?
Yes. High business property taxes reduce business investment and therefore result in slower growth of
jobs and incomes.
This effect occurs through a number of complex channels and is therefore not easy to identify in
macroeconometric models. Its major effect is to make it necessary for labour costs measured in U.S.
dollars to be lower than would otherwise be the case. This means that the long-term effect of the
investment disincentive implicit in Ontarios reliance on the business property tax is primarily reflected
in lower employee real incomes than would otherwise be the case. The channels through which this
occurs include effects on the value of the Canadian dollar and on the speed with which jobs expand in
recovery periods.
48. So business property taxes should be reduced throughout Ontario?
Yes. From an economic viewpoint, reducing business property taxes would rank high as a means of
promoting job-creating investment and economic growth.
49. By how much should business property taxes eventually be reduced?
Long-term targets for bringing business property taxes should be set to bring tax rates down to
competitive levels. These targets could be specified as follows:
bringing the total effective rate of tax on before-tax net rents at least down to the median
effective rate in Canada outside Ontario
bringing property taxes per square foot on downtown commercial office buildings down
below what they are in the two highest-taxed U.S. cities (New York and Chicago)
20
Even after reaching these targets, Ontario business property taxes would still be at the high end of the
North American spectrum. But Ontario business property tax rates would at least no longer stand out
as exceptional.
50. Can these targets be reached right away?
Probably not. Effective tax rates on before-tax net rental values are so high because of the meltdown
in rental values that it will probably be necessary to wait for rental values to recover
attaining these long-term targets.
51. So what should the provincial tax rate be when the new tax is introduced?
before fully
A provincial rate of tax on before-tax net rents that raises the same amount of revenue from
commercial and industrial properties in the outer GTA as does the current education component of all
local business property taxes (including both business and realty taxes).
This target would mean the following:
B
B
a significant reduction in business property taxes when the new tax is introduced
almost no cases where businesses would face property tax increases as a result of
implementing the new tax
Effectively, the proposed tax rate would mean levelling down to the outer GTA level throughout
Ontario. This levelling down is appropriate because of the extent to which business properties are
now overtaxed.
52. How can the longer-term targets subsequently be reached?
By ploughing back some of the revenue growth that will occur as markets recover back into lower tax
rates, reducing provincial and municipal tax rates on net rental values as those values grow.
Net rental values of commercial and industrial property will eventually recover as demand grows
and/or supply is reduced. Putting part of the resultant growth in revenue from the business property
tax back into lower tax rates on net rental values would allow those tax rates to be gradually brought
down to accord with the long-run targets set out above.
53. By how much would total revenues from the business property tax be reduced when the new
tax is implemented?
Across the province, by about $700 million, relative to the current total revenue yield in Ontario of the
education component of the business property tax.
This is a preliminary estimate based on 1992 data. It is rough because it is based on 1992 equalized
assessments rather than net rental values, assuming the latter to bear an approximately proportional
relationship to the former. Errors introduced by this assumption probably do not exceed 10 percent.
54. Could this reduction be phased in?
Of course. It would be partly phased in anyway through implementation of the quick fix proposed
in section C. The remaining reduction could either be implemented fully in 1998 or phased in over a
couple of years.
55. What about municipal tax rates on business property?
At least for several years, they should be limited by provincial legislation to prevent municipalities
from taking advantage of the provincial tax reduction to raise local taxes on business properties. In
the longer term, the provincial tax rate on net rental values should become a ceiling on total municipal
tax rates.
This issue is discussed in section G below.
56. What are the implications of the new provincial business property tax for education finance?
Theyre discussed in section F.
57. What about the business occupancy tax?
Its history.
The business occupancy tax is a surtax on business property tax at varying rates designed to keep the
distribution of the total business property tax burden across differing business types unchanged from
what it was prior to 1904. It was introduced at that time as a replacement for a previous tax on
moveable business property.
The business occupancy tax was a useful transitional device back in 1904. It has long outlived its
usefulness.
58. So it should be eliminated now?
Completely.
The proposed provincial rate of business property tax would, as already noted, be designed to raise the
same total revenue from business properties in the outer GTA as does the education component of all
current business property taxes, including the business occupancy tax. The revenue cost of eliminating
the business occupancy tax is included in the $700 million estimate stated above in the answer to
question 53.
22
E. A NEW SYSTEM OF BUSINESS ASSESSMENT
This section deals with the administrative implications of basing business assessment on before-tax net
rental values.
59. How can the before-tax net rental value of a property be measured?
By basing the measure on the average fair-market current rental value per square foot (inclusive of
current property taxes) of similar property in the vicinity.
60. Is there any precedent for assessing property in this way?
Yes. For certain classes of commercial and industrial properties, rental values are already calculated in
a similar way by assessors in the Ontario Ministry of Revenue as an intermediate step in determining
market values, with the rental values subsequently being capitalized in estimates of property market
values. The major classes of commercial and industrial properties now assessed in this way include:
B large commercial retail stores and shopping malls
B standard general-purpose industrial buildings
B most commercial office buildings
The major classes of commercial and industrial buildings for which rental values are not now
estimated are:
street-related retail stores
special-purpose industrial buildings and sites
For the first of these, estimating rental values is not difficult because of the frequency of rental
transactions. The administrative problem arises in determiningg rents for special-purpose owner-
occupied business properties.
61. If rental values are used now in estimating market values of properties, what is the benefit
of using rental values as the basis for assessment?
There are
m
B
two primary benefits:
It is not necessary to estimate capitalization rates for most properties.
Inconsistency between rental capitalization for some property classes and
valuation for other property classes is avoided
transaction-based
23
One of the major reasons for the dramatic redistribution of property taxes within the commercial
property class in the Metro Toronto 1988 reassessment study was that the capitalization rate used to
capitalize rents for downtown commercial properties was not consistent with the capitalization rate
implicit in observed sales transactions in small retail properties on arterials. As a result, the
speculative binge that drove up commercial property values in 1988 was reflected in the retail strips
but not in the large commercial complexes downtown. The effect was a massive redistribution of
taxes from large commercial properties to the retail strips.
To my mind, the primary argument in favour of using rental values as the basis for commercial and
industrial property assessment is that it is easier to obtain empirically verifiable consistency of rent-
based assessments across property types for all properties other than the special-purpose industrial
properties which cannot easily be assessed using either rent-based or transaction-based methods. A
secondary (but also important) argument is that a rental-based assessment focusses on the appraisal of
value in current use, explicitly excluding components of sales value that reflect volatile fluctuations in
speculative expectations.
62. How can special-purpose properties be
assessed?
With difficulty, whether determining market value or rental value. The problem is the lack of
transactions data for comparable properties, whether for rental or sales transactions.
Rental values for special-purpose properties would typically have to be derived from the cost-based
value determinations now used in assessing market values, using estimates of average market
capitalization rates on commercial and industrial properties of all types to derive rental values from
capital values. In this case, capitalization rates relating rents to capital costs would have to be
estimated. Such rates would inherently tend to be more stable (reflecting longer-term supply price
relationships) than fluctuating value-rent relationships in the speculative property market.
Note that special-purpose business properties are difficult to assess in any assessment system. The
adjustment required to derive rental values from estimated capital values is easier than the basic
determination of capital value from estimated replacement costs. As a practical matter, property
assessments on large special-purpose industrial properties are unavoidably arbitrary and hence
effectively determined by negotiation.
63. How current should rental assessment be?
Current should mean up-to-date in reflecting the most recent available data. Assessments should be
updated yearly.
Note that this does not mean that rental assessments should be based only on market rents in the most
recent year. In order to reduce short-term volatility, rental assessments should be based on average
rental values over the previous three to five years.
64. Is it feasible to change assessments every year?
Yes, provided that greater reliance is placed on using computer-assisted mass appraisal techniques.
Most North American jurisdictions do so.
24
65. How do computer-assisted mass appraisal techniques work?
Computer-assisted mass appraisal techniques depend on a concept of assessment which is more like
modified unit value assessment than traditional Ontario property-by-property assessments.
Such techniques require use of a computerized econometric model of measurable property
characteristics affecting values. The econometric analysis is used to determine average relationships
between values and measurable physical characteristics of properties of differing types. These average
relationships are then applied to observed values of those characteristics for a particular property to
derive the estimated value of that property. Since the application is totally mechanical, it is easily
automated.
In its simplest form, this corresponds to estimating average rental values per square foot of properties
of a given class and then applying that estimated per-square-foot value to the measured gross floor
area of each property in the class.
66. Could computer-assisted mass appraisal techniques be implemented quickly?
Reasonably quickly, provided that additional resources are provided to update existing computer
system. Assuming that is done, there is no reason why computer-based rental value assessments could
not be returned for most Ontario municipalities within two years of passing the necessary legislation.
67. So what is a reasonable target date for implementation of the new provincial business
property tax?
1998.
Assuming the necessary legislation is introduced and passed early in 1996, the rent-based
computerized assessment system could be fully implemented in the 1998 tax roils.
68. What if the Assessment Division of the Ministry of Finance cannot implement the new
business property assessment system in all Ontario municipalities for the 1998 tax rolls? Does
this mean that introduction of the new provincial tax would have to be delayed?
No. The new provincial tax should go into effect in 1998 even if rent-based assessment is only
implemented in part of the province. To allow for this possibility, it may be prudent for legislation to
provide the Cabinet with authority to pass an order-in-council implementing a staged implementation
of rent-based assessment along the following lines:
B in the GTA and selected other municipalities specified by regulation for the 1998 tax rolls
in the rest of the province by 1999
25
69. How would a tax reduction be implemented for business properties in 1998 in municipalities
in which rent-based assessment is not implemented?
By specifying the 1998 provincial tax rates in those municipalities by regulation, allowing for a
different provincial tax rate on 1998 business property assessment in each municipality in which a
reassessment to rental values has not occurred.
70. How would these ad hoc provincial tax rates be calculated?
By basing them on the average ratio of equalized rental-value assessment to current assessment
computing the provincial tax rate for the municipality by multiplying the provincial tax rate on rent-
based assessment by the municipal value of this ratio.
71. How would this average ratio be calculated for each municipality?
In the same way as equalized market-value-based assessment is now calculated,
properties in each municipality.
based on a sample of
72. So computerized rental value assessments for business properties could be implemented as
Phase Two of a program of business property tax reform?
Yes. It would be the logical extension to the rent-based cap on assessments proposed as a quick fix
in the preceding section.
73. How would the quick fix be integrated into the new provincial tax?
For municipalities in which rent-based assessment is fully implemented in 1998, the new system would
replace the quick fix. The quick fix should remain in place for municipalities which are not
reassessed.
26
F. REFORMING EDUCATION FINANCE
Education finance reform is necessary for two reasons. The current system of provincial education
grants does not fairly distribute the burden of financing education and so should be reformed even in
the absence of business tax reform. But this desideratum becomes a requirement given business tax
reform.
74. Why does business tax reform make education finance reform mandatory?
Because the current revenue now obtained by school boards from its share of the business property tax
would be eliminated by provincializing the business property tax. Unless that revenue is replaced by
provincial grants, school boards would face the necessity of imposing massive tax increases on
residents and/or cutting expenditures dramatically.
75. Couldnt local school boards continue to collect business property taxes?
No. The entire point of the business tax reform is to equalize and lower the education component of
business property taxation across Ontario.
Residents should be permitted through their elected representatives on local school boards to raise
taxes on residential property to supplement school board budgets. But local school boards should not
be permitted to tax commercial and industrial property.
76. How are education grants now calculated?
By calculating target expenditures for each school board and then subtracting target revenues fbm a
market-value based property tax.
77. How are target expenditures calculated?
By speci@ng recognized expenditures per pupil and then multiplying this standard per pupil
expenditure by school enrollments. IMs target expenditure is then modified to reflect special
expenditure requirements (e.g. school bus costs in northern schwl districts).
78. How are target revenues calculated?
By using an estimate of equalized assessment to measure what total market-value based assessment
would be in a school district. A standard uniform provincial tax rate is then applied to total equalized
assessment to determine the taxing capacity of the school board.
27
79. How is equalized assessment estimated?
By estimating the average ratio of market value to assessment for a sample of properties within a
district and then applying this ratio to the total current assessment taxable by a school board
80. Whats wrong with the definition of target expenditures?
There are two principal problems:
As currently defined by the Ministry of Education, recognized expenditures do not
include approximately 40 percent of total school board expenditures.
B The definition of per pupil recognized expenditures does not take into account factors
which cause education to be more costly, such as whether the child speaks English or
whether the child comes from an economically or educationally deprived home.
The failure of the current definition to take childrens background into account means that the grant
formula is systemically biasses against urban areas with high proportions of immigrant or low-income
households.
81. How could this be rectified?
A number of studies have been undertaken to identify factors measurable from independent data
sources such as the national census which can be used as proxies for cost-increasing factors. These
studies can be used to define a new formula for target expenditures per pupil which does reflect the
higher costs of education in urban areas.
82. Whats wrong with the definition of target revenues?
It doesnt take into account taxpayers ability to pay. which for residential taxpayers is best measured
by their aggregate household incomes.
83. How should education grants be calculated if the education component of the business
property tax is provincialized?
By calculating target expenditures as proposed in the answer to question 81 and then subtracting a
formula-based revenue target for the residential property tax.
84. How should the revenue target be calculated?
By first calculating a target tax per household and then multiplying this target by the estimated number
of households in the school district.
The target tax per household should be calculated by applying a uniform implicit income tax rate to
average household income in the school district. The implicit income tax rate should be uniform
throughout the province.
28
85. What if we want to make this system more progressive?
Then define the implicit tax rate as a uniform function of average household incomes. The important
thing is that, however defined, the tax rate should only depend on average household incomes in each
district.
86. How should average household incomes be estimated?
From quinquennial census data.
87. Is this a sufficiently frequent updating of income estimates?
Probably. This update frequency is not dissimilar to the current updating of equalized assessment
every four years. If desired, Statistics Canada survey data could be applied to the more geographically
disaggregate Census data to provide more up-to-date estimates.
88. How would the number of households in
From Census and municipal enumeration data.
each school district be estimated?
89. What happens if the province refuses to reflect the higher costs of schooling immigrant and
low-income children in target expenditures?
Then the quality of urban schools will decline, particularly in Metro, and there will be an exodus of
middle-class families into the outer suburbs of the GTA where education quality will continue. This is
the prime motor of the vicious circle which has brought about inner-city decay in many U.S. cities.
90. Why should the quality of urban schools decline? Why wouldnt taxpayers finance the
necessary expenditures by raising residential property taxes?
Residential property taxes probably would go up. But taxpayer resistance to the large property tax
increases that would be necessary would make it very difficult to maintain school budgets.
91. Isnt there a lot of waste in school budgets? Couldnt school boards become more efficient
and so obviate the need for tax increases?
Over the entire Ontario education system, there are undoubtedly opportunities for reducing
administrative costs. And the provincial government is committed to intervening so as to obtain such
cost reductions.
The savings obtained from the entire system should be used to maintain the quality of the school
system everywhere in Ontario in the face of the lower revenues that will be obtained from the
education component of the business property tax if it is reformed as proposed in the preceding two
sections.
29
Without education finance reform along the lines set out here, there is no way that the quality of the
school system can be maintained within Metro in the face of the disproportionate reduction in the
education component of the business property tax that must occur within Metro.
Savings obtainable within Metro from more efficient administration can contribute along with similar
savings in other parts of the province to offsetting the province-wide reduction in revenues from the
business property tax. But they are unlikely to be much different proportionately than savings outside
Metro.
92. So education finance reform is vital?
Yes. Its vital to maintaining a school system that integrates immigrant children into Ontario society
and provides a potential escape from poverty for children in low-income families. Its also vital to
maintaining the economic and social health of Toronto.
You can hollow out a city in four ways: by high business taxes which drive businesses out, by high
property taxes on mobile middle class families which cause them to move out (or deter them from
moving in), by declines in the quality of urban life as a result of cutbacks in policing or municipal
services, or by financial pressures on schools that cause the quality of schooling to decline. Of these,
reductions in the quality of schooling have the most powerful influence.
Middle class families will consider moving in response to tax differentials. But their response to
perceived declines in schooling quality will cause much more dramatic response. If they perceive it to
be necessary to leave the city to obtain quality schooling for their children, many middle class families
will move. If you want to make Toronto go the route of Detroit, the most efficient way of doing so is
to starve the schools.
30
G. IMPLICATIONS FOR LOCAL FINANCE
In this section, I turn to the implications of the provincialization of the business property tax for local
municipal finance.
93. Should municipalities be permitted to continue to tax business properties?
Yes. Businesses benefit from many municipal services, and it is appropriate that they pay municipal
taxes.
94. Should municipalities be permitted to increase taxes on business properties?
Certainly not initially. Municipalities should not be
provincial reductions in business property tax.
permitted to move into the tax room created by
95. How could such a limitation be legislated?
By providing that, in the first three years of the new business property tax, municipal tax rates on
business assessment will be specified by provincial regulation so as to leave the average effective rate
of municipal taxation of net rental values unchanged in each municipality.
96. How should business tax reform affect the apportionment of upper-tier costs among lower-
tier municipalities?
The answer to this question depends on whether apportionment methods are reformed to make
apportionment better approximate the actual costs of providing upper-tier services to lower-tier
municipalities. This issue is discussed below in the answer to questions 99-102.
If the existing system of apportioning upper-tier costs is continued, then a relatively simple
modification can be made to reflect the effects of business tax reform.
97. What is the existing apportionment system?
It is based on current total assessments in each lower-tier municipal Upper-tier costs are allocated
among lower-tier municipalities in proportion to aggregate actual assessments.
31
98. What is the relatively simple' modification that is required?
The required modification would be to allocate upper-tier costs in two steps:
B
First, allocate them between residential and non-residential properties in proportion to actual
assessments in the year prior to commencement of the new rental-value-based business
property tax.
Second, allocate the total to be raised from each class of property in proportion to the
aggregate assessment of each class in the lower-tier municipalities.
This would mean that the residential component of upper-tier costs would be allocated among lower-
tier municipalities in proportion to aggregate residential assessment. Similarly, the non-residential
component would be allocated in proportion to the aggregate rental-value-based assessment of non-
residential properties in each of the lower-tier municipalities.
99. Is there a better way of apportioning upper-tier costs?
Yes. A better way is to base cost apportionment explicitly on the costs of providing upper-tier
municipal services to each lower-tier municipality.
100. What if upper-tier services are provided by special boards or commissions instead of by
upper-tier municipalities?
The same principal of cost allocation would be appropriate. The essential model is that it is
appropriate for lower-tier municipalities to contract the provision of certain services to agencies that
span several lower-tier municipal boundaries when doing so results in lower costs. For local
politicians to be able to evaluate the efficiency of such decisions, the costs paid for by lower-tier
municipalities should approximate as closely as possible the true costs to the agency of providing the
services to the lower-tier municipality.
101. What if assessments continue to be used instead of actual costs? Is there any reason to
believe a different assessment system will result in a better allocation of costs?
No. It is an empirical question as to which of actual assessment or equalized assessment is a better
proxy for the true distribution of costs. There is no a priori reason to believe that one is better.
102. How can a cost allocation model be developed?
By developing credible methods of determiningg the costs of providing each local municipality with
each major category of upper-tier services. In some cases (e.g. policing), a per capita allocation may
be as accurate as any alternative. In cases such as sewers or solid waste disposal, cost allocation could
be in proportion to total consumption of such services (water consumption in the case of sewers, solid
waste deliveries in that case).
A cost-based approach will almost certainly provide a more accurate method of apportioning upper-tier
costs to lower-tier consumers. It will, as a by-product, also be more stable.
To: Dr. Anne Golden
Chair. GTA Task Force
From: L.S. Bourne, University of Toronto
Date: October 2, 1995
Re: The Future of the GTA
7. If a formal GTA government is politcally out of the question, then special-purpose boards is
not the way to deliver regional services. They are neither democratically responsible nor
accountable.
9. I return to the theme that social equity ( and tax fairness) across the urban area is the long-
term key to social sustainability and to maintaining a viable urban area.
10. At the same time we must remove or reduce some of the costly and cumbersome barriers that
governments have imposed on development, on mixed use and adaptive reuse of the built
environment, on innovation in productive enterprises, and on new investments in people, services
and industrial plants. At the same time we want to encourage more imaginative initiatives and
partnerships between the public and private sector in securing new investments and improvements
in the quality of the urban environment.
LSB
September 28, 1995
Ms Ann Golden
Greater Toronto Area Task Force
393 University Avenue, 20th Floor -2001
Toronto, Ontario
Faxed to: (416)327-1516
Dear Ms. Golden:
Enclosed is the Brampton Board of Trades submission to your research into the GTA Reform
titled Why a Business Position is Needed on GTA Reform. The Brampton Board of Trade has
over 1,100 members, which employee some 60,000 people in Brampton and Peel Region.
The Board of Trade approached this study from the angle of what does business need to be able
to survive in the GTA. this report was approved for submission to your commission at the
September meeting of the Boards Governing Council.
We will be mailing you the original report today.
Thank you for your consideration and Good Luck in your deliberations.
Yours Sincerely,
Mr. Robert Nutbrown, President
cc. Tony Clement, MPP Brampton South
Joe Spina, MPP Brampton North
WHY A BUSINESS
NEEDED ON GTA
POSITION IS
REFORM
Submission to the Greater Toronto Area Task Force
by: The Brampton Board of Trade
September 27, 1995
Brampton Board of Trade
Presentation to the Golden Commission on GTA Reform
September 1995
INTRODUCTION
WHY A BUSINESS POSITION IS
NEEDED ON GTA REFORM
We must be cognizant of the fact that the
term GTA is merely a description for a
geographic area, much like the term Golden
Horseshoe was in the 60s and 70s. The
GTA area has been determined to take in
lands bounded by the Niagara Escarpment,
the Oak Ridge Moraine and Lake Ontario.
The Brampton Board of Trade takes the
position on the GTA that governments
municipally, regionally and provincially
must be committed to downsizing of
government , t o cost reduct i on as a
government policy, accountability from
government, less government and the
elimination of government duplication.
In reviewing the many municipal
government reports on the GTA the single
weakness is the lack of discussion or
analysis on the future of the GTA and the
Ontario economy. Since the announcement
by the provincial government that the GTA
must be reformed and a level of government
eliminated the various municipal
governments have engaged in turf wars. The
issue has become purely political.
political turf wars
no answer to GTA woes
For the restructuring of the GTA to work,
municipal governments must be reorganized.
We recommend elected offficials at the local
level dealing with the municipal and regional
issues instead of the existing two tiers. We
need smaller, less costly local government,
less duplication, real cost saving and audited
benchmarking to show the results. All
possible Government services must be open
to private sector tenders. The solution to the
tax crisis is not to redistribute the tax hit,
but lies in savings in government spending.
Business has a responsibility to get out and
market the GTA as Canadas number one
Centre of International Business. The
GTA is on the cutting edge of excellence in
financial and legal services, design
marketing and high tech industries. But in
order to make gains government must rid
themselves of the parochial, short-term
thinking that pits municipality against
municipality within the GTA. Economic
development of not only the GTA but
Ontario should be on everyones agenda.
Growth The Engine of the GTA
Although local politicians largely accept that
the economy of the GTA drives the
economy of Ontario and Ontario is the
economic engine of Canada, in their studies
they have not addressed the future of the
GTAs economic base and the impact the
various infrastructures, social, and
environmental issues have on the business
and commerce and private sector job
creation.
Business has repeatedly expressed concerns
over the impact of increased regulation,
environmental controls and Municipal,
Regional and Provincial services on the cost
of doing business in Ontario and the GTA.
BBT1
Brampton Board of Trade
Presentation to the Golden Commission on GTA Reform
September 1995
Centre Core
The Centre Core of the GTA is made up of
Toronto, Etobicoke, Scarborough, East
York, North York, and York for a total
population of 2,276,311, covering 63,831
hectares - 35,661 persons per hectare. The
Centre core has aging infrastructure services
which are under stress, with concentrated
population, traffic congestion and no
additional land for growth. The centre core
must look to redevelopment to cleal with the
major business core downsizing and to the
restructuring of their out dated tax structure.
Inner Circle
The Inner Circle of the GTA, Mississauga,
Brampton, Vaughan, Richmond Hill,
Markham has a population of 1,043,145 on
112,921 hectares or 10,237 persons per
hectare. The major city in this area is
Mississauga. It has encountered rapid
growth and have no more land available for
expansion. It will now be up to the
remaining communities on the west side of
the GTA to pick up development. In future,
tax restructuring will be needed to pay for
future infrastructure maintenance.
Outer Circle
The Outer Circle on the west side of the
GTA is made up of the communities of
Burlington, Oakville, Milton, Hal ton Hills
with a population of 315,500 on 98,305
hectares or 3,209 persons per hectare. The
East side of the GTA includes Pickering,
Ajax, Oshawa. Whitby with a population of
316,606 on 57,605 hectares or 5,496
persons per hectare. As future growth will
remain on the west side of the GTA, this
will require expanded in infrastructure. Also,
this area will see pressure for residential
growth as a feeder for the GTA core. The
fear is that the GTA tax restructuring will
advantage the Centre Core by increasing the
tax in the outer municipalities.
We must address and determine where in the
overall structuring of the GTA green belts,
recreational services, social and welfare
reform, health and hospitals fit into the
governance pattern.
The taxation structure including business
tax, property tax, and development charges
should be reviewed to determine if it can be
more effectively managed.
Business & Economic Growth
Initially, business is attracted to settle in a
certain area for:
economic reasons
infrastructure and services
closeness to market
abundant labour force
efficient transportation routes
in the past, the GTA has provided these
services, but now some of the more
important services required by business are
eroding.
For the most part, Municipal and Regional
boundaries are transparent to the average
individual crossing the GTA. Business only
deals with boundaries when determining
which government governs their taxation,
regulations and services and not in the
normal day to day operation of the business.
One Stop shopping Vital to
buisness in the 90s
As we stated, business is concerned over the
availability of a good labour force, effective
and efficient transportation routes and
BBT3
Brampton Board of Trade
Presentation to the Golden Commission on GTA Reform
September 1995
infrastructure services which will allow them
to work on a Just In Time basis ensuring
they remain competitive in the global
economy. Business is looking for efficient
and responsive local government and ideally
want to deal with one location for all
government services (One Stop Shopping).
Future growth in the GTA will be, in the
west, along QEW to Niagara Falls and along
the 401 to Kitchener Waterloo and I.ondon,
in the north, along the 400 & # 11 & #48 to
Barrie and in the east, along the 401 & #7
to Oshawa. On the east side of the GTA
$
Bowmanville and Clarington's distance from
Niagara Falls, Waterloo and the Industrial
heartland is an economic barrier to industrial
development. Transit routes, in this area,
are not as sophisticated in this region and
the distance to Pearson Airport also acts as
a deterrent to development.
Transportation
Must be Addressed
The GTA is well serviced with 400 series
transportation corridors of the 401, 410,
404, 427, 407, 400, QEW as well as rail
service and Go Transit routes along the
lakeshore from Oshawa to Burlington and
north to Aurora, Georgetown and Markharm.
The GTA also has major harbours in
Oshawa, Toronto, Hamilton and airports in
Hamilton, Pearson. Toronto Island and
oshawa to service business.
These areas must be addressed in this GTA
restructuring. We must connect the
transportation routes, the highways, Pearson
Airport, Go Transit and rail, and the rapid
transit systems into one common plan. One
of the major reasons for the success of the
GTA is the Pearson Airport. Pearson has for
several years been struggling to maintain the
status as a world class airport, It badly
needs to expand and redevelop. The Federal
Government is committed to turn the airport
over to a local airport authority and have it
privatized. But the process has been slow
and the GTA has fallen behind cities like
Detroit and Pittsburgh. The major highways
entering the centre. of the GTA have become
congested and uneconomical for business.
Entering the downtown core of Toronto by
automobile the traveller has two options:
(1) from the west, 401 to 427 to QEW and
the Gardiner Expressway or (2) from the
east, 401 to the Don Valley Parkway to the
Gardner Expressway. We do have, however
an excellent system of rail travel with the
Go Transit and Subway system. They are
designed to service local commuters in
specifically designated communities and the
transit stations for the most part are far
removed from the major highways. With
increased taxes and the congestion on transit
routes going into the centre of the GTA,
many companies have been lured to the
suburbs by lower taxes and less congestion
on the roads.
The major growth in the GTA has been, and
wiII continue to be, on the west side of
Toronto. This is the area closest to the
Airport and to the U.S. border cities of
Niagara Falls, Windsor and Sarnia. It also
has the second largest concentration of
population and business in Ontario with the
Niagara Peninsula, Kitchener/Waterloo and
London all within 1 hour of Peel and Halton
Regions. The communities of Halton Region
BBT4
Brampton Board of Trade
Presentation to the Golden Commission on GTA Reform September 1995
also have the lowest population density per
hectare and have the most land available for
development.
Pearson A Vital Key
Pearson Airport is key to the future of the
GTA. To keep the GTA competitive in the
global marketplace, it must be addressed
i m mediate] y. Maj or i n te r n a t i o n a I
corporations rely on Pearson to get their
executives to the world marketplace and to
provide a fast efficient and effective freight
service for the now popular JIT service. If
the GTA does not focus on Pearson
becoming a HUB airport for North
America we will quickly be by passed for
cities like Detroit, Pittsburgh and Cleveland.
The GTA will become a secondary market.
Business in Ontario and Canada needs a
direct and efficient air service to the GTA.
Pearson must be upgraded to service their
needs and in doing so jobs will be crcatcd.
City Needs Core Air Transit
To entice business to return to the centre
core of the GTA, government must address
rapid transit. The question of a rapid transit
route to Pearson must be dealt with, to assist
Pearson in its quest to become a world class
airport and the Toronto core the hub city. It
is unacceptable for a traveller or business
executive to deplane at Pearson and spend
the next hour in traffic to reach the ccntre of
the city. Currently, several U.S. airlines are
requesting landing privileges for the Toronto
Island Airport. This should be reviewed as
the Island Airport is a vital component to
the future of the City core.
Effective Public Transit
We must attract and keep commuters on
public transit. We must address it from the
viewpoint of moving workers to and from
their place of employment more effectively
and cost efficiently. An individual traveling
within Regions must, in some cases, pay
two or three separate transit fares. This is a
deterrent to the use of public transit. Transit
systems should be integrated and cost
efficient.
Better Rend Planning needed between
municipal boundaries
Major highways in the GTA are congested
and the Gardiner Expressway is under
constant repair, causing inconvenience to
commuters to the centre of the city.
Roadways of major concern to business are
the routes into Pearson and to the centre of
the City. Arterial roads within the Regions
have not been designed with GTA travel in
mind, but rather to service the specific
needs of the individual regions. This style of
planning has caused traffic congestion, as
we cross from one region to another. The
QEW is used for inter-regional travel, as the
access routes across the regions are limited
and not co-ordinated between municipalities.
A prime example - Derry Road passes
through three regions. In Halton it is a two
lane road. Crossing into Peel, it becomes 4
lanes and a major arterial road and ends in
Etobicoke. Another example, is the easterly
route from Hal ton Hills via Hwy #7 to
BBT5
Brampton Board of Trade
Presentation to the Golden Commission on GTA Reform
September 1995
Bovaird Drive to the Peel York boundary
then across Elder Mills - Sherwood -
Carrville - 16th Ave ends at Durham
Region. This route goes through a mixture
of 2 to 4 lane roads. Sound planning and
inter-municipal cooperation could make
these routes more efficient and ease
congestion on the 400 series routes.
Regulations & Bureaucracy Ki l l i ng
Business
Municipal governments red tape and
regulations are killing small business and
stifling the growth of business in ontario
and the GTA. The new provincial
government understands business needs less
red tape and regulations. It is time the
municipalities and regions redesigned their
bureaucracy. What one region places on its
borders will certainly have an effect on the
future development of its neighbour. To t-it
business needs in the 90s, and to create
employment, land use is extrcmcl y
important.
When proposing development of lands
business needs to be able to do one stop
shopping and not go to the municipality for
approval and then to the region with the
same plans and basically for the same
approvals. Business feels when i t is looking
at expansion or development it idealIy
should only have to deal with either the
Municipality or Region, but not both. As an
example, for a small business to get
approvals to develop and open a business
along Trafalgar Road/Hwy 7 between
Georgetown and Acton the business must
deal with no less than
. 3 levels of government
. 5 special bodies
15 different departments
. 2 planning departments
Once complete and prior to opening they
would be required to pay
regional development charges
municipal development charges
. land use permits
. property tax
. business tax
. land transfer tax
and in the future there is the potential of
education development charges. Once open,
the business must now deal with the myriad
of provincial and federal tax regulations.
The business community firmly believes that
there are too many regulations, government
red tape and bureaucracy.
Business Will Pay Fair Share of Taxes
Business is not opposed to paying its fair
share of property and business taxes. As the
fair tax commission has stated, and the
various reports indicate, the government
must find a fair way to deal with taxes. In
this age of the global economy, the
technology of the information highway and
the JIT business philosophy, it is not as
important for business to be located in major
centres. Business believes the constant tax
increases MUST STOP. We have seen the
results of high taxes and the devastation it
has had on the centre core of the city.
Business will not pay taxes three times
higher than those in the suburbs, just to be
located in the City.
BBT6
Brampton Board of Trade
Presentation to the Golden Commission on GTA Reform
September 1995
Education Financing
Education costs in ontario have come under
fire and it is the firm position of the
business community, with over 60% of the
local tax dollars going to education that it is
time for reform. It is also the position of the
Brampton Board of Trade, that the Boards
of Education do not have a revenue problem
but an expenditure problem. To properly
review education, it is essential we address
the governance side of the equation in
conjunction with the financial. We must
look at the overall structure of school boards
and again determine where the private sector
coul d provi de a more efficient and
economical service as well as reviewing to
whom the bureaucracy is accountable.
Governments
Each regional and municipal government has
official plans. It is time the Ontario
Government reviews them with the view of
integrating the Official Plans. A common
sense approach to transportation, regional
borders, planning, land use, water, sewage,
waste removal, interest groups, and policing
must be found.
Each municipal and regional Master Plan
must be blended with the plans for the
airport, transportation and infrastructure,
keeping in mind the plans of the province. It
currently appears each municipality acts as
an independent body. As we stated, transit
over the years has been designed region by
region and has has little respect for cross
boundary transit and arterial roads and the
government must address this weakness of
the GTA.
We must address the issues of:
being over governed;
the purpose of regional and
municipal planning departments
and official plans;
how governments affect economic
development and economic
re-development;
the structure of education and can it
be more cost effective;
Disentaglement of governments including
the purpose of such bureaucracy like the
Conservation Authorities must be addressed.
To be effective, overlapping services in the
current Regional/Municipal structure such as
roads and maintenance, services of police,
fire and ambulance, hydro, along with water
and sewers and waste management -
recycling should be reviewed, to see if it is
feasible to privatize these areas or turn them
over to commissions similar in operation to
the Police Commissions or Hydro
Commissions.
Queens Park
There should be a provincial restructuring at
Queens Park to deal with the GTA. The
province must address and set out an official
provincial plan outlining economic
development and transportation. It is
essential the province understands how the
GTA relates to the entire province and
major centres like Hamilton Wentworth,
Niagara, and Kitchener Waterloo.
BBT7
Brampton Board of Trade
Presentation to the Golden Commission on GTA Reform
September 1995
PROVINCE
The province s h o u l d b e primarily
responsible for ensuring that:
. Regional Plans
. Transportation
. Social Welfare
. health and hospital
natural resources
economic development
fit the overall GTA plan. It should also look
at the el i mi nat i on of Conservation
Authorities rolling back the responsibility to
the Ministry of Natural Resources and the
local community governments.
REGIONS
The current regional structure for:
. policing
waste management
recycling
social services
education
. hydro electricity
could remain intact with the idea of turning
these areas into commissions similar to the
make up of Police Commission with direct
r es pons i bi l i t y t o the local elected
government offi ci al s appoi nt edto the
commissions. These types of services could
cross municipal and regional boundaries.
MUNICIPALITIES
The muni ci pal government s woul d t ake
direct responsibility for all:
roads
. road maintenance
. water & sewers
. planning
economic development
. parks & recreation
cultural
. fire and ambulance
. public works
. property taxation and assessment
within the boundaries of their communities.
BBT8
Brampton Board of Trade
Presentation to the Golden Commission on GTA Reform
September 1995
Brampton Board of Trade
Key Principals for GTA Reform
Business must Market GTA
Economic development of not only the GTA
but Ontario should be on everyones agenda.
Business must get out and market the GTA
as Canadas number one Cent r e of
International Business.
Accountable local Government
Municipal governments must be reorganized
to eliminate duplication of work and
possibly have one elected official at the local
level dealing with municipal and regional
issues.
We need smal l er, less costly local
government, less duplication, real cost
saving and audited benchmarking to show
the results.
To this end we feel that administration of
the Boards of Education must be transferred
to local municipal governments.
One Stop Shopping for Government
Services
Business needs to be able to do one stop
shopping when proposing development,
redevelopment of lands or expansion and not
deal with several levels.
Governmcnts at all levels m u s t g e t
Exp en d i t u r es under control
Business is not opposed to paying their fair
share of property an d business taxes. But t h e
government must find an effective and cost
efficient way to deal with taxes and the
delivery of services. Government does not
have a revenue problem but an expenditure
problem. Taxation must be examined for
effectiveness and value to ensure business
remains competitive in the global
marketplace.
Red Tape and Regulations strangling
Business.
Business believes the impact of increased
regulation, environmental controls and
Municipal, Regional and Provincial services
on the cost of doing business in Ontario and
the GTA is contributing, in part, to the lack
of competitiveness of Ontario in the global
economy.
Reform to Education Costs
The cost of education must be addressed as
well as the structure of school boards with
the key element being accountability. Rigid
spending restrictions should be placed on
Boards of Education.
Co-ordination of Official Plans
Each Regional government and municipal
government has official plans. It is now time
for the Ontario Government to review with
the purpose of integrating the Official Plans
into a common goal with considerations to
i nf r ast r uct ur e as of the uppermost
importance and regional boundaries of the
least importance.
Delivery of Government Services by the
Private Sector.
All possible Government services must be
open to private sector tenders.
BBT9
The Corporation of the City of Brampton 2 Wellington Street West
Office of the Mayor
Brampton, Ontario
L6Y 4R2
Tel: 905/874-2600
Peter Robertson
FAX: 905/874-2620
September 29, 1995
Dr. Anne Golden
Chair
Greater Toronto Area Task Force
393 University Avenue, 20th Floor-2001
Toronto, ON M5G 1E6
Dear Dr. Golden and Task Force Members:
I am pleased to have this opportunity to provide supporting documentation to
the key proposals contained in the paper, The Seven Point Plan to Reform the
GTA - Leading by Example with Meaningful Change".
As you arc aawre, the GTA Mayors Committee created a sub-committee that I
chaired to establish a consensus position on GTA reform In June the Sub-
committee presented the paper Solutions for Today for the GTA Without
Creating Another Level of Government to the GTA Mayors group and at that
time I was asked to develop a consensus position. After a busy summer of
discussion and consens building, in consultation with Emil Kolb and Michael
Garrett, we developed a seven point plan for GTA reform which I called
Leading by Example". Those slides are enclosed for your information and
consideration.
The title of the slide prcsentation, which contains all of the key points in the
905 Chairs papers, was selected because it speaks to the considerable
leadership, creativity and ability of municipal governments to reinvent
themselves as the economy and community dictate. We have been able to do so
in spite of the lack of support or unwillingness to bring about meaningful
change by former provincial governments.
The Leading by Example slides were presented to the GTA Mayors
Committee on September 15. Since that time I have been consulting with the
Mayors and I have provided, for your information, a table which outlines the
degree of support I have recorded from amongst the GTA Mayors. While
unanimity was not reached on all issues, a considerable consensus has emerged
among the majority of municipal councils. I believe this degree of support is
noteworthy. I am sure many expert in the media would never have predicted
an 80% support wou1d he attained! If time had permittcd, the table would show
more detail, accuracy and I dare say, support.
-
Page 2
The Leading by Example slides clearly focus on what we, as municipal
leaders, know are the very real and pressing problems facing the GTA. I
strongly believe the attached seven point plan paper mirrors and expands upon
the consensus position of the GTA Mayors and Chairs and advances the
discussion even further. The two complement one another and taken together
preside the key to successful and meaningful change in the GTA.
One essential ingredient in this consensus is the fundamental process of
continuing to involve the municipal politicians in implementing the changes.
We hope you will recommend to the Harris government that we are capable and
necessary to make it happen. We expect you to encourage the province to give
the municipalities a short period of time to implement the changes we are
capable of doing, while the province addrcsscs the reforms necessary at their
level.
Worm personal regards,
Peter Robertson
Mayor
Encls.
P.S. If you wish any further assistance or clarification, I would be pleased to
give you my time. Your task, and that of your colleagues, is awesome!
C.C. Premier Michael Harris
Hon. Al Leach, Minister of Municipal Affairs & Housing
MPPs ucross the GTA
Regional Chairs
GTA Mayors
support
support
No Response
No Response
support
support
No Response
support *
Without a secretariat
support
No Response
Status quo on education
support Yes Create 6 GTA planning
policy commissions
Support with Durhams
amendments
support Yes
No Response
No Response Yes
Page 1
Page 2
Page 4
Amended Draft
GTA Reform: A Seven Point
Consensus Plan
GTA Regions
implement an
and Municipalities will work with the Province to
inter-related reform program consisting Of
Assessment/ property tax reform
Provincial/ Municipal Financing S WAP
Permissive Municipal Act
A review of services, representation and boundaries
Reform of S pecial Purpose Bodies
GTA Coordinating Forum (Mayors, Chairs, GTA Cabinet
Committee)
S ignificant Education Reform
GTA Assessment/Property Tax Reform
B Province to implement a fair and equitable assessment system
FOR EACH REGION within the GTA, which:
B
achieves tax fairness within and between classes
B
attains the benefits of an optimal residential to non-residential assessment mix
across each Region
B
utilizes variable mill rates to control/phase tax burden shifts between property
classes (within limits to avoid bonusing)
B Shift assessment function from Province to the Regions
B Utilize improved technologies to update and maintain assessment
records
B Continue to investigate the range of assessment methodologies
Financing Swap
B S upport main elements of financing S WAP as suggested
in 905 discussion paper
B Add to S WAP: Municipal assumption of financial
responsibility for school capital, busing and maintenance
of physical plant
SWAP Specifics
Revenue Neutral
The SWAP =Revenue neutral formula, no provincial or
municipal tax increases
1 I
Treatment of Special Purpose Bodies
B
B
B
B
B
District Health Councils report to 905
Regional Health Committee or local
Board of Health
Childrens Aid Society (CAS)
B
function to report to Council
Ontario Housing Corporation
B
amalgamated by existing municipal
non-profits
Police Service Boards - majority
muncipal representation on boards
Conservation Authorities are already
municipally controlled but could be
consolidated
Library Boards become municipal
Depts.
Hydro Commissions consolidated by
Province - or to report to
City/Regional council
Sept. 11 3
I
(not Boards) responsible for curriculum
funds a portion of teaching operations, possibly through a
block grant
set the terms for Provincial bargaining with teachers
Municipal Services/
Representation/Boundaries
B A locally driven process within each Region to:
B
review municipal boundaries and structures
B
commit to rationalize and stream line programs/ services
B
review representation and size of Councils
Sept. 11
Permissive Municipal Act
consultation with AMO and
Regional Chairs
with a view to eliminating duplication with
municipal regulatory functions by 1997
Sept. 11 8
GTA Coordinating Forum
B Create GTA Forum of Mayors and Chairs to address
cross -boundary planning/ coordination issues on regular basis
(eg. economic development, waste management, sewer/ water and
transit)
B together with the new GTA Cabinet Committee
B supported by a small secretariat
B consultative, non-executive powers (no taxing authority)
B Dispute resolution mechanism necessary where there is no
consensus
Savings In The Plan
FINANCING SWAP will eliminate need for staff that administer cost-shared
grants; significantly reducing staff at Queen Park and other Provincial offices
SPECIAL PURPOSE BODIES finance and administration functions downsized
and combined with those of the Region or municipality
EDUCATION administration and board costs significantly reduced
GTA FORUM will facilitate partnerships/collaboration, producingfurther savings
GREATER MUNICIPAL CONTROL over service levels, resulting in significant
savings
B permissive municipal authority
B reduced Provincial regulation/policies
MUNICIPAL REVIEWS of service/representation/boundaries to generate further
savings
DOWNSIZING PROVINCIAL MINISTRIES which have inhibited efficient
meaningful practices and caused extensive time delays and needless expense
Sept. 11
The Benefits of Consensus
On The Seven Point Plan
Improves Provincial/Municipal accountability by clarifying roles and
responsibilities
Responds to Taxpayers Concerns by reducing property tax burden and
generates savings for the Province
Demonstrates a willingness and ability to further improve municipal
government within the GTA
Demonstrates leadership by municipal politicians as agents of positive
change
Ensures Revitalization of GTA by addressing immediate threats/challenges
Allows for individuality and diversity of needs
Ensures future economic vitality and quality of life across the GTA
I I
I I
The Corporation of the City of Brampton
Office of the Mayor
Peter Robertson
2 Wellington Street West
Brampton, Ontario
L6Y 4R2
Tel: 905/874-2600
FAX: 905/874-2620
Dr. Anne Golden
Chair
Greater Toronto Area TaskForce
393 University Avenue,
20th Floor -2001
Toronto, Ontario
M5G 1E6
Monday, October 23, 1995
Dear Dr. Golden,
in response to your letter of September 14, 1995, I have been able to collect the enclosed
case studies which demonstrate the key areas of provincial/municipal interface which
would benefit from review and streamlining.
I apologize for the delay in forwarding this pachge to you Anne. As you can appreciate
however, the preparation of the Seven Point Plan for submission on September 30th, was
our first priority.
I trust that the enclosed will be of assistance to you and the members of
your task force.
If I can provide any further assistance, please do not hesitate to contact me directly.
Sincerely,
Peter Robertson
Mayor
The Corporation of the City of Brampton
2 Wellington Street West
Office of the Mayor
Brampton, Ontario
L6Y 4R2
Tel: 905/874-2600
Peter Robertson FAX: 905/874-2620
October 6, 1995
Dr. Anne Golden
Chair
Greater Toronto Area Task Force
393 University Avenue, 20th Floor-200I
Toronto, ON M5G IE6
Dear Anne:
My last letter to you ended with the sentence "your task is awesome". Keep up
your effort -you are into the fourth quarter of the game and you will come out
the winner. We all will be winners, in fact, as a result of the exercise
As requested, please find a collection of case studies from various Mayors, City
Managers and Regional Chairs to document how over time the vari ous
ministries of the provincial government have grown so big, so inept and so out
of touch and arrogant that they are no longer any help in governing the GTA.
My best advice is to redefine the provinces role as:
1. setting the policies and guidelines;
2. funding fairlv those services that each Ontarian deserves
from the myriad of tax sources to which they have access;
3. doing some strategic planning so that our province can have five
and ten year goals to become competitive again and to provide
the best possible quality of life for our citizens.
CASE STUDY FROM BRAMPTON, #l
For the past four or five years the local citizens have requested traffic signals at
the intersection of Highway 7 and Heritage Road The City of Brampton
Council and staff notified MTO on several occasions and were turned down
because the warrants were not met. There is no local option to install signals
nnyway because the Municipal Act treats municipalities as a
46
child of the
province. The inevitable occurred this August - three persons were killed
There was a frantic scramble of politicians and newspaper stories. The MTO is
reconsidering but is paralized by regulations, precedent setting fears and
personalities too removed from the local scene to do anything until next
February at the earliest.
Page 2
Solution:
MTO should divest its control over the highways within Brampton
(and other GTA municipalities) immediately and allow us to make the decisions
on entrances, exits, traffic signals. They might even tender out the
snowploughing and summer maintenance to municipalities and the private
sector. God knows they can t even cut the weeds in the roadside ditches.
CASE .STUDY FROM BRAMPTON, #2
There are five businesses in Brampton today who huve been stonewalled by
MTO regulations and non-thinking staff at four levels of their bureaucracy,
right up to the deputy minister level. The problem is obtaining reasonable
commercial access on Highway 7 or Highway 10 in on acceptable time frame.
In some cases independent traffic studies by professional consultants, as well
as recommended alternativcs by municipal transportation planners and
engineers, have been prepared and rejected The applications, to be specific,
include:
Ontario Auto Auction Highway 7 west of Goreway
Mr. DiPoce Highway 7 west of Goreway
Walmart/First Professional Highway 7 west of Airport
Bill Kanellopoulos Gas Bar Highway 10 at Sandalwood
Great L Plaza proposal Highway 10 at Mayfield
Solution: MTO should divest its control over the highways within Brampton
.
(and other GTA municipalities) immcdiately and allow us to make the decisions
on entrances, exits, traffic signals.
Rather than use these applications as ransom for the City and Region to
capitulate in assuming the ownership of Highway 7 at a $21m. shortfall, the
entrances should become the jurisdiction of the municipalities and agree to
negotiate the sale of the highway at a fair and realistic price over the course of
1996 and the GTA disentanglement SWAP.
CASE STUDY FROM CALEDON, #3
Again the story is the same - it is just the municiapality and location that is
different. The provincial government allowed Caledon to develop an entire
subdivision, Valleywood, with only one entrance and exit (and fire route) onto
highway 10, north of Snelgrove. Each morning rush hour, with no traffic
signals allowed by MTO warrants, residents risk their Iives jumping out into the
southbound traffic on Highway 10. It is a frightening experience to watch the
loaded school buses attempt this precarious exercise each weekday morning!
Until there are several deaths the MTO staff and warrant formula will not
change. It is a tragedy wuiting to happen.
Page 3
Solution: MTO should divest its control over Highway 10 within Caledon and
hand the regulation and approval of entrances on Highway 10 to Caledon and
or the Region of Peel The professional engineering staff at the municipal
levels are equally as capable of designing safe solutions but they can respond in
a realistic timeframe with local conditions taken into consideration
WHAT IS TO BE GAINED BY IMPLEMENTING THESE CHANGES?
1.
2.
3.
4.
5.
6.
z
8.
9.
Province reduces its staff and payroll and pensions payout
Approvals happen six months to a year earlier.
Carrying costs of development reduced signficantly.
In some cases, needless consultants costly studies are eliminated
Construction jobs created
Permanent jobs come onstream from the five businesses.
Certain degree of respectability returns to government process, at
least from the publics perception.
Municipality gains needed industrial/commercial assessment
Lives are saved!
Peter Robertson
Mayor
P.S. I have sent out an urgent cant o all of t he commissioners in Brampt on
and my colleagues around the GTA. Enclosed is the bundle I received
to date.
October 20th, 1995
Mayor Peter Robertson
City of Brampton
2 Wellington Street West
Brampton, Ontario
L6Y 4R2
Dear Peter:
Thank you for your final, notice reminder that our "Case Studies
U
were due for the GTA Task Force today.
I have met and discussed this matter with staff of our Municipality
and would advise that the following are some of our concerns with
respect to our relationship with the Province with examples cited:
1. Elimination of duplication of services and functions amongst
the tri-levels of government; Province, Region and Municipality.
2. A co-ordinated approach to
within the municipalities of the
consistent application ,of some
elimination of duplicated efforts
extent that economies of scale
realized.
the delivery of some services
GTA, such that there might be a
of the vital services and an
in providing some services to the
and economic efficiencies are
3. Elimination of the Provincial intrusion on the municipal tax
base for cost recovery on functions that are performed by the
Province; ie. supplementary assessment fees introduced as a
recovery of salaries related to the Provincial Assessment function.
4. Review, with opportunity for input from the Municipality, of
some of the functions currently performed by the Province that
could more efficiently be performed by the local or regional
governments; ie. revisit disentanglement but ensure that the
province exchanges
functions with the
eqitable.
more. provincially dominated program costs and
municipalities such that the trade is fair and
.../2
Mayor Peter Robertson -2- October 20th, 1995
5. Better lines of communication between the Province and its
lower and upper tier municipalities and productive consultation in
advance of any legislative or regulative changes; ie. Development
Charges Act, Supplementary Assessment Charges, Social Contract, and
Province Expenditure Control Plan.
6. A move by the Province to operate on a more centralized manner
rather than creating entirely new commissions
U
and greater
bureaucracies to deal with any new initiative. In many instances
these appear to be staffed with employees who are not fully
familiar with the main function of the commission itself; ie. many
times the municipal staff have spoken with up to eight
(8)
different individuals in order to obtain relevant information.
I trust that these concerns merit presentation to the GTA Task
Force.
Yours very truly,
DIANE H.AMKE
Dat e: Oct ob er ,20 1995
included: 8 Page(s) *including Cover Sheet*
To:
Organization:
City of Brampton
Individual:
Mayor Peter Robertson
Fax Number : 905874-2620
Subject: Case Studies for Anne Golden
Comments: Enclosed please find a few case st udies as r equest ed for Dr . Anne
Golden r egar ding Pr ovincial/Municipal st r eamling.
Mayor Holyday st ill has t o appr ove t he ended at t achment s and
wiII be speaking t o you today at the GTA Mayors meeting..
We will contact you should there be any changes.
if copies are not legible, please call immediat ely.
Provincial-Municinal Interface
1) Changes to the Fire Department
*
withdrawal of senior
(i.e. above the rank
*
interest arbitration
and settlements
officers out of the bargaining unit
of captain)
to reflect local economic realities
2) Chanqes to the Police Services Act
*
same vein as changes to Fire Departments Act
3} Workers Compensation System
*
more collaboration between employers and WCB
*
actions to curb abuse and misuse required
*
cuts to level of benefits so workers do not benefit more
financially being off than if they were at work
4) Special Purpose Bodies
*
legislation to abolish and be replaced by Committees of
Council, e.g. Library Board
Response to Point #1
Assessment
Th e pr ovi nc e i nt e
rvened by not approving Metro's request for market
value reassessment.
Impact
For Etobicoke
r
this meant that about 75% of residents and
businesses did not get the decrease in taxes that they were
entitled to get.
The Province intervened by enforcing Section 14(3) Of the
Assessment Act that re-distributed assessment and taxes from anchor
tenants to smaller tenants in shopping malls.
This caused angry protests from the smaller tenants who complained
to Etobicoke Council, who had no control over the situation.
Response to Point #2
Bonusing - Council had previously requested the Province to
mlnattig Section 112 of consider eli the -Municipal Act (anti
bonusing provision} to allow municipalities to compete to keep
business and industry from leaving.
Grant Information
Municipalities dont always know what grants they will be
receiving, making it difficult to plan.
Early communication would facilitate better planning.
An Et obic ok e fe n c e vie win g be t we e n t wo pr oper t y owner s was appealed to the Pr ovi n c e a n d
a n Awa r d ma de by a Provincial Reference. The Referees Awa r d r e qu e s t e d t h a t i t (t h e
Awar d) be r e gis t e r e d on t h e la n d t it le by e a c h la n d own e r a n d a ll t h e ir own c os t . Th e
appellants and r e s pon de n t s we r e a dvis e d by t h e La n d Re gis t r y Offic e that t h e Awa r d is
non-registerable. Numerous phone calls a n d fa xe s we r e s e n t t o t h e Lin e Fe n c e Re fe r e e t o
r e c t ify t h is pr oble m bu t t o n o a va i l.
The Cit y suggest ed t he Pr ovincial Refer ee amend t he Awa r d t o pe r mit r egist r at ion or
de le t e t h e r e qu i r e me n t for t h e Awa r d be in g r e gis t e r e d on t it le . Th e Lin e Fe n c e Re fe r e e
r e fu s e d bot h s u gge s t ion s .
:
Th e Re fe r e e s
s u pe r vi s or s
wa s c on t a c t e d wit h r e ga r d t o t h is
ma t t e r wh o h a s a ls o de c lin e d t o r e me dy t h e s i t u a t i on .
Th e c ur r ent st at us is a Lin e Fences Award that can not be c ompi le d wi t h , c r e a t i n g
fr u s t r a t ion bot h for t h e pr ope r t y own e r s a n d mu n ic ipa l s t a ff.
Fe e s :
.
.
.
Mu n icipal Ele c t i on s Ac t
1 . Mu n i c pa l vot e r s li s t i s c ompi le d by t h e Mi n i s r y of Re ve n u e , As s e s s me n t Divis ion
ba s e d on in for ma t ion r e c e ive d t h r ou gh a ma il ou t of Mu n ic ipa l En u me r a t ion for ms .
Th e Mu n ic ipa l Cle r k s de pa r t me n t is a lwa ys h e ld t o bla me for e r r or s in t h e lis t s
wh ic h
oc c u r qu it e r e gu la r ly.
A Min is t r y ma il ou t of Vot e r IDENTIFICATION Not ic e s is d on e by t h e As s e s s m e n t
Divis ion in la t e Au gu s t wh ic h r e qu e s t s t h a t a n y c h a n ge s or c or r e c t ion s t o t h e Vot e r s
lis t be ma de by r e t u r n in g t h e c or r e c t e d for m t o t h e Mu n ic ipa l Cle r k . Th e "Vot e r
Ide n t ific a t ion Not ic e s " (V. I. N. ' s ) do n ot c omply wit h t h e Mu n ic ia pl Ele c t ion s Ac t
wh ic h r e qu ir e s de c la r a t ion s for
c e r t a in a n d doe s n ot pe r mit _ ot h e r s (i. e . A
n on Roma n Ca t h olic c a n n ot be a s e pa r a t e s c h ool e le c t or ). Th emu n i c i pa li t y r e c e i ve s
t h ou s a n ds of r e s pon s e s t o t h e V. I. N. ma il ou t wh ic h c a n n ot be pr oc e s s e d. In a n
a t t e mpt t o a s s i s t t h e e le c t or a t e , we t ook on t h e t a s k of r e s pon di n g t o a ll r e qu e s t s t h a t
c ou ld n ot be pr oc e s s e da n d r e qu e s t e d t h a t be a ppr opr ia t e for ms be c omple t e d. Th is
t a s k wa s bot h la bou r a n d c os t i n t e n s i ve a s it r e qu ir e d n u me r ou s ma ilin gs a n d s ome
pr e pa id pos t a ge . Th e vot e r at this point is thoroughly c on fu s e d a n d dis gu s t e d by a
t h ir d ma il ou t , a lbe it t h e fir s t fr om t h e mu n ic ipa lit y. He or s h e doe s n ot u n de r s t a n d
wh y t h e gove r n me n t pr odu ced V.I.N. is not suffient an d t h e CIerk of the
municipality takes the abuse as we are cited as the contact in bot h ou r mailings an d
Ministry of Revenue's.
On e a r e a t h e mu n ic ipa l c le r k s h a ve be e n t r yi n g for ye a r s t o c h a n ge i s t o a llow for
s c h ool support corrections to be ma de a t t h e polls . To pr esent any cor r ect ion t o t h e
e le c t or s s c h ool s u ppor t h a s h a d t o be ma de du r in g t h e r e vis ion pr oc e s s . An elector,
n ot lis t e d on t h e vot e r s Iis t c a n be a dde d t o it a t t h e poll on e le c t ion da y. Th e r e for e
why can n ot a vot e r wh o is Iis t e d in c or r e c t ly, c or r e c t t h e reference i n or de r t o
e xe r c i s e
-
h is / h e r pr ope r vot in g fr a n c h is e .
2 . Financial Statements - The Municipal Elections Act requires all candidates to s u bmit
fi n a n c i a l St a t e me n t s by J u n e 30t h of t h e ye a r following t he Municipal EIection.
Fa ilu r e t o file , r e s u lt s in on e fu r t h e r de ma n d n ot ic e be in g is s u e d e xt e n din g . t h e da t e
for 3 0 da ys . Fa ilu r e t o file wit h in - e xt e n de d
- pe r iod r e s u lt s in a Not ic e of
De fa u lt be in g is s u e d. Th e c a n dida t e is s u bje c t t o pe n a lt ie s * a n d is in e ligible t o be
e le c t e d or h old offic e u p t o a n d in c lu din g t be n e xt r e gu la r e le c t ion . Th e can didat e
ma y ma k e a pplic a t ion t o a Pr ovin c a l Cou r t ju dge for a n or de r a c k n owle dgin g t h a t
t h e fa ilu r e t o file wa s don e t h r ou gh in a dve r t e n c e or e r r or . Th e Mu n ic ipa l Cle r k
ma y a c c e pt t h e la t e fin a n c ia l
s t a t e me n t u pon r e c e ipt of s u c h a n or de r .
TO date, two candidates who had failed to me t h e i r financial papers fr om t h e 1 9 9 4
.
MunicipalElection, have a ppli e d t o a Judge or Judges, who have advised them to
submit their papers to the Clerks office and return to court for a n or de r a ft e r wa r ds _
Th e Ac t c le a r ly s t a t e s t h a t t h e mu n i c i pa li t y c a n n ot r eceive t h e paper s u n t il r eceipt
of t h e ju dge s or de r . Th e s e c a n dida t e s h a ve n ow be e n t o c ou r t t wic e a n d h a ve
a t t e n de d n u me r ou s t ime s a t t h e Cle r k s offic e .
The issue in this instance is that the legislation is not familiar t o t h os e wh o a r e
for c e me n t n a me ly t h e Pr ovin c ia l Court J u dge. The result is
fr u s t r at ion for t h e can didat e an d t h e Mu n icipal Cle r k
Further, in all cases that we are aware of, the judge has granted the required order
to the candidated. We dou bt t h a t t h e r e is mu c h on u s pu t on pr ovin g in a dve r t e n c e a s
t h e ma t t e r is pr oba bly n ot de e me d of gr e a t impor t by t h e ju dge a ga in t h r ou gh la c k
of fa milia r it y wi t h t h e le gi s la t i on .
GREATER TORONTO AREA
A SOLUTION TODAY FOR THE GTA
WITHOUT CREATING ANOTHER LEVEL
OF GOVERNMENT
A Proposal from the GTA Mayors Committee
JUNE, 1995
Page 2
The way councils work requires that we obtain majorities for each and every
proposal, which often relies upon one's personal network of friends and
acquaintances. Leadership on big issues on a GTA scale is so arduous a task
that the issues are often lost at the discussion stage without the ability to push
them to a solution.
Another way in which power at the local level is decentralized is by the delegation
of major functions to independent boards and commissions. Public housing,
public health planning and education have been vested in boards that are
independent of the mayor and council on matters of policy and often finance.
For example, any attempt by a municipal politician to influence the citys
education policies is seen as political interference in the work of the board of
education.
The American model of a strong mayor system is foreign to Canadians. In the
U.S.A. a mayor can hire and fire personnel, prepare the budget, issue directives
and even veto council decisions. In most cities in British Columbia (Canadian)
(heir mayors have more formal powers than the mayors in the GTA, but they do
not have the extreme powers of an American strong mayor.
The public within the GTA should he ready for moderate changes if it can be
shown that some of these very serious urban problems could be addressed and
solved. This paper is an attempt to lay out such a proposal for GTA REFORM
WITHOUT CREATING ANOTHER LEVEL OF GOVERNMENT.
The RoIe of the Mayor
The Municipal Act confers
B chief executive officer
the duties 0$
upon the mayor, in addition to other duties specifically referred to as relating to
the office of the mayor.
The Municipal Act states that the head of council has a duty to:
municipality to he duly executed and obeyed;
Page 3
B oversee the conduct of all subordinate officers and the government of
it and as far as practicable, cause all negligence, carelessness and
violation of duty to be prosecuted and punished; and
B communicate to council from time to time such information and recommend
to it such measures as may tend to the improvement of finances, health,
security, cleanliness, comfort and ornament of the municipality.
The duties set out above were originally conferred upon the chief executive officer
of a municipal corporation in 1897 As a result of the redrafting of the statute in
1913, however, these duties apply now only to the office of head of council. This
revision, perhaps intended to clarify some other situation, has regrettably de-
emplasized the importance of the role of the chief executive officer as it applies
to overseeing the affairs of the corporation. It also materially limits the ability of
the mayor to make decisions independent of his or her council and therefore
limits the ability of the GTA Mayors Committee to proceed decisively with actions
beneficial to the GTA. Proposals for the reform of the GTA must ultimately,
have regard to the limitations imposed upon the powers and duties of the mayor.
From our Consensus Building Workshop we note the role of the mayor should
be rediscovered as tile representative of the municipality.
The Common Vision on of the GTA
It has been repeated at many of our meetings that to be a world class
economically competitive region we must have a healthy, vibrant and safe inner
core. The strong national and international business core must also provide a
significant residential component to create a live-work environment that
maintains its own high quality of life. This inner core must also benefit the entire
GTA Region on so that the GTA retains its positive influence upon the Province and
Canada as a whole.
The surrounding communities within the GTA must develop as independent
communities with their own unique characteristics and identity to be self sufficient
live-work nodes or communities. At the same time, all these communities inside
and outside Metro, in order to achieve the wellness of the whole" must share a
coordinated contemporary infrastructure.
Page 4
Our meetings, under the chairmanship of Mayor McCallion, have proven to be
a great model to build upon. Tile initial vision to work cooperatively on the
ECONOMIC DE VLOPMENT OF THE GTA in full financial partnership with
the Province is worthy to highlight.
These initiatives have been enhanced by several other efforts - GTA Transit
Integration the Smart Toronto Telecommunications Effort, OGTA Infrastructure
Planning. The regular meetings of the Regional Chairs and CAO's of the Greater
Toronto Area (GTCC) all point to a direction we wish to endorse.
GTA First Principles
To encourage and develop this GTA vision, the following principles must be basic
to our recommendations for REFORM:
1.
2.
3.
4.
5.
Seine of Community. It is recognized that a sense of community is of
great importance to many taxpayers. Every effort must be made to
recognize the individluality and uniqueness of each municipality. Positive
differences from one community to another must he encouraged. To retain
and build the identity and character of each GTA community this strength
or principle cannot he compromised in any municipal reform. A clear
expression of choice must be built into GTA reform.
Accountability. When a level of service is delivered, the taxpayer must
know who is responsible and how to achieve accountability.
Efficiency. Services should be delivered at the level of government, or
by the private sector that can do so most efficiently at the present time
and over the long term.
government must he disentangled, wherever possible, to eliminate as much
duplication as possible.
Divestment of Power or Authority Once it has been decided that a
service can best be delivered at a municipal Ievel, the Province must
divest both its control and refrain j-em interference with that operation
by municipalities.
Page 5
6. The level that sets the policy or delivers the service must
be empowered to fired these services or be provided with a stable funding
base to do so. The converse is also part of this principle. If_you provide
the finding or part of the finding you must have a commensurate say in
the service delivery.
7. ose Bodies It follows as clearly as night follows day that
to simplify and clarify and pay for say, special purpose bodies must be
eliminated or transferred to a level of directly elected officials to
report regularly rather than flying out there alone.
8. Comprehensive The GTA Reform needs to be broad enough to address
GTA Reform must he good for urban, suburban and rural residents. GTA
Reform must be helpful to the business sector.
The Role of the Province
It is agreed that this level
standards and guidelines.
of government is responsible for setting provincial
It is generally agreed by the mayors that the province must restructure drartically
how it relates to and does business with municipalities. There seems to be a
consensus to have one minister and ministry of the GTA and not five or six
ministries dealing with day to day municipal operations.
In light that the new government might not be expected to create a new minister
exclusively for the GTA, we could accept the Minister of Municipal Affairs also
being the Minister of the GTA. However in the past, the Minister was often
bring on a regular basis, their resolutions for action by the government. Such an
the GTA.
Page 6
the meetings of the GTA Mayors and Regional Chairs.
The GTACA would be administered by a board comprised of elected mayors of
represented at the GTACA include the mayors of 30 municipalities, plus the
would continue to be monthly and would replace the Mayors GTA Committee:
It is interesting to note that the regional chairs are recommending this
coordinating forum he co-chaired by a new minister responsible for the GTA,
Scope of Issues of the GTACA
The major purpose of the GTACA would be to provide the COORDINATING
FUNCTION to:
B
ECONOMIC DEVELOPMENT PROMOTION, including
telecommunications within the GTA.
EMERGENCY SERVICES (Police, Fire and Ambulance)
POPULATION & EMPLOYMENT TARGETS AND PHASING
Page 7
GTA Secretarial
The coordinating function will require a central office and a small staff. It is
recommended that a centrally located office be established in partnership with the
provincial government, particularly with the Office of the Greater Toronto Area
(OGTA). This would permit the:
OGTA, or its new counterpart, to optimize communications and
liaison with the provincial and municipal administrative staff
and
Tile Authority would acquire an office and secretariat which
would include a small team of people with a range of skills
including:
B o n e
B o n e
B o n e
B o n e
B o n e
person from the GTCC (our chief administrators group)
person $-em our Economic Development Partnership
person from the OGTA
executive director type of person
The present financing model that the GTA Mayors have established to do
economic development initiatives seems to work and recognize the pantnership of
it is not fair to continue the imposition.
attached to this discussion paper.
downsizing many of the provincial ministries. The resistance of provincial
bureaucrats to defend their former roles is predictable but must be overcome.
Page 8
GTACA 's Power
alternative options of power. In each of tile following options it is clear that the
GTACA will have NO POWER TO TAX and NO BUDGET TO IMPLEMENT
OR DELIVER PROGRAMS. Its power comes from its coordinating function its
close working relationship with the OGTA and its direct channel of
communications to the newly proposed SPECIAL PROVINCIAL CABINET
a)
This is the present modus operandi of the GTA Mayors Committee.
resolution to the Province and rely upon them for-implementation.
Implications:
- Consensus might he hard to find on some of the big issues.
- The Minister might not be prepared to meet in a timely fashion.
- The GTA Mayors Committee would have no power and should
change its name to tile GTA Coordinating Committee of Mayors
and Regional Chairs.
b)
100% consensus the Province would be obliged to make its best
constraints and reasonable time lines.
Implications:
The present powers and practices of the mayor would require each
one of us to go back to our respective councils for approval To
model, however there would be some assurances made that such
decisions would be implemented by the provincial government if it
provincial consent.
Page 9
c)
Implications:
would not change within our municipalities and at our local municipal
It means the province must trust the wisdom of the proposed GTACA and
interest of the GTA (which will be in the best interests of all of
us... the wellness of the whole.)
CONCLUSIONS:
out of the last few years of the GTA Mayors Committee. They are do-able and
Anyone hoping for radical GTA reform likely would agree more time would be
Task Force to have more time to complete its research and report.
improvement. LETS GO FOR IT! LETS DO IT!
Page 10
1.
2.
3.
4.
5.
Premier and his Cabinet.
Committee Chair
Schedul e A
GTA CO-ORDINATING BODY
CORE BUDGET/FINANCING
The proposal fiancing for the GTA Co-ordinating Body
y
is on the current fomula used
~
for funding the GTA Economic Development Partnership Initiative. The budget is a preli
minary however, it includes the existing actual budget for the Economic Development
Partnenhip (core funding).
PROPOSED
ANNUAL BUDGET:
Staff salaries & benefits:
s 3 0 0 , 0 0 0 .
-1 Executive Directortor
-I GTCC Co-ordinator
-1 Economic Development Co-ordinator
-1 Mayors Committee Co-ordinator
-1 Administrative Assistant
5
Supplies/ Equipment: (approx. $5,000 month)
60,000.
-Furniture/Computers
-Office supplies
-General expenses
Economic Development:
135,000.
-Exist ing approved core funding -program
Office SDaCe - Shared wi t h OGTA :
31,250.
-250 Sq. ft (indust r y st d.) X 5 employes = 1,250 sq. ft .
-1,250 X $25/sq. ft. gross rent (estimate)
.
TOTAL:
$ 506,250.
FUNDING:
The cost share formula is based on a S)YO matching contribution from the Provincial government
The remaining 50% municipal share is then divided by the five regional areas in the GTA, The
municipalities in each regional area are responsible for determining how they will arrive at the
total core funding requirement from their regional area
lMunicipal contribution: $ 253,125,
( $50,625. from each of the 5 regional areas)
Provincial contribution:
$253,125.
:
Total:
$ 506,250.
PREMIER
I
SP ECI AL CADI NET COMMI TTEE F OR
THE GTA
MI NI STER OF MUNICIPAL AFFAIRS & GTA
MINISTER OF TRANSP ORTATI ON
MI NI STER OF ENVI RONMENT
MI NI STER OF SOLICITOR GENERAL
MINISTER OF FI NANCE
- i -
. ADMINISTRATIVE OFFICERS OF
THE GTA. MUNI CI P ALI TI ES
MINISTRY OF MUNICIPAL
.AFFAIRS & THE G.T.A.
OFFI CE OF THE G.T.A
J UN- 1 9 - 1 9 9 5 1 0 : 1 8
FROM MAYORS OFFICE
TO
The Corporation of the City of Brampton
Office of the Mayor
Peter Robertson
APPENDIx B
2 Wellington Sreet West
Brampton, Ontario
L6Y -IR2
Tel: 905/874-2600
FAX: 905/874-2620
June 19.1995
The report on GTA reform titled A Solution Today for the GTA Wthout
Creating Another level of Governmentw a~ received to he circulatmed to the thirty
municipal councils and jive regional council for their input by July 15th
Enclosed if the resolution that passed at our meeting on Friday, June 16th and
the organizational chart which is to be attached to the report.
In order to quantify the thirty-five responses, I request your counci provide the
following direction:
1. Do you agree that the GTA requires some ongoing
coordination by the mayors and regional chairs
according to the princples s pok en to in the report? Yes No
Comments
2. Do you agree to limit the function of the group,
as the report suggests, to one of coordination with
no jurasdiction on finances or delivery of services? Yes No
Comments
3. Do y ou agree with the rcport's recommended areas of
coordination (Economic Dcvelopmcnt; Transportation;
Waste Management & Oder GTA Infrastructure;
Emergency Services; and Population & Employment
Targets arid Phasing)? Yes No
Comments
- -
175 Sandalwood Pkwy. West
Brampton, Ontario L7A 1E8
Tel: (905) 840-6300
September 13, 1995
Dr. Anne Golden
Chair
GTA Task Force
393 university Avenue
r
Suite 2001
TORONTO, Ontario
M5G 1E6
Dear Dr. Golden:
Submission Regarding Hydro-Electric Commissions
within the GTA
Any recommendations of your Task Force that change the structure
and/or governance of municipal government within the GTA will,
either directly or indirectly, impact on the Hydro-Electric
Commissions and Public utilities commissions.
The Brampton Hydro-Electric commission is pleased to have the
opportunity to provide you with a recommendation and associated
rationale. We request that you give due consideration to this
submission. Representatives of Brampton Hydro would welcome the
opportunity of meeting with you and/or members of your Task Force
to provide clarification and answer any questions arising from
this submission.
Yours truly
COMMISSION
jjy/mp
Attachment
Chairman - J. J. YARROW . Vice Chairman - A GIBSON
Commissioners - P. ROBERTSON, Mayor -W. R. PESANT - C W. FORD o General Manager - K. D. MATTHEWS, P. Eng.
Submission to the GTA Task Force
From the
Brampton Hydro-Electric commission
September 13, 1995
INTRODUCTION
The structure of hydro distribution throughout the GTA, With just
a few exceptions, follows the same geographic boundaries as the
municipalities. Governance iS through either elected or
appointed Commissions comprised of (mostly) five or three
Commissioners, with the Mayor or his/her designate being one.
Generally there exists a very cooperative relationship between
the municipality and the local commission and, in many instances,
there are joint initiatives and shared services between the two
organizations.
Any changes to the municipal structure will therefore impact on
the hydro commissions.
RECOMMENDATION
It is the recommendation of the Brampton Hydro-Electric
Commission that hydro distribution throughout the GTA b e
organized to coincide with the lower tier municipal boundaries
that result from any GTA restructuring.
RATIONALE
There are several factors that lead us to the above
recommendation.
Briefly stated, they are:
. there is no evidence of economies of scale
(See Appendix 1)
. there are distinct advantages to the customer
in maintaining local accountability, customer
influence and sensitivity to community needs
and circumstances
. the current structure creates a degree of
competition among the utilities. This
provides an environment in which utilities
strive for efficiencies in order that their
individual rates are favorable relative to
those of their neighbors
. in all organizations there is a point where
size becomes an encumbrance; bureaucracies
slow down decision making, local options are
not permitted and customers have a hard time
relating to their representatives (Commissioners)
2
RATIONALE (Centd)
. within a municipality there develops a commonality
of purpose between the municipality and the utility
GOVERNANCE
The current governance,through elected or appointed Commissions
has served the customers well. commissions are focussed on the
hydro operation -most municipal utilities are debt free.
Appendix 2 provides some very recent information about customer
preference regarding governance.
A little bit of history
Back in the late 70s, early 80s, when Regional Governments
were being formed, the option of establishing Regional hydro
utilities was available to the municipal councils.
In ALL
instance
studies
utility.
INDUSTRY
of the Regional governments there was not a single
where the upper-tier option was chosen, even though some
showed a slight price advantage under an upper tier
RESTRUCTURING PROPOSALS
In recent years the electricitysupply industry has undergone
radical change in some countries and is currently
a multitude of studies here in Ontario.
Models have been developed for and by Ontario
Municipal Electric Association
r
the Association
Consumers, the Power Workers Union and so on.
the subject of
Hydro, by the
of Major Power
Undoubtedly this will at some point in the not too distance
future be a subject of the Provincial Governments attention.
Any consideration for utility restructuring within the GTA should
recognize this eventuality.
APPENDIX 1
(a) Joint Study into Retail Electricity Service in Ontario
This study was conducted by a joint committee of Ontario Hydro
and the Municipal Electric Association.
The joint committee was independently chaired by Tom Wells, with
research and analysis provided by coopers and Lybrand. An
Interim Report was issued in December 1994.
This report concluded that, from data available, total
controllable costs dont show economies of scale.
Although there are economies of scale in billing, collecting and
administration, these are offset by significant increases in
operation and maintenance costs for customer bases between 64,000
and 128,000.
(b) The cost of Hydro Distribution
A customers hydro bill is comprised of three components:
generation, transmission and distribution. currently the first
two functions are carried out by Ontario Hydro and, within the
GTA, accounts for about 87% of the customers bill.
The remaining 13% (which the municipal utilities call the gross
margin) pays for the O, M & A costs of the municipal utility as
well as funding some of the capital expansion of the lines and
substations (many utilities derive additional funds from
developers), trucks and equipment and repayment of debt (if any).
(c) Large vs Small Utilities
With regard to Gross Margin, there is no correlation with size of
utility. 1994 data from 19 GTA utilities shows a range of gross
margins from 8% to 21%.
For example, Brampton Hydro, with 68,000 customers has a gross
margin of 12.3% while Caledon Hydro, with just 2600 customers has
a gross margin of 13.5%.
Yet Whitby, with 22,000 customers, has a gross margin of 11.1%
compared with the similarly sized Ajax, with 19,500 customers and
a gross margin of 16.6%.
APPENDIX 2
GOVERNANCE
Under current legislation, the municipal electric utilities are
governed by elected or council-appointed commissions. From time
to time, there arises discussion about whether this should
continue or whether the utility governance should be through a
committee of council.
In the 1994 municipal elections, there were three instances where
this question appeared on the ballot. The results were:
North Dorchester: 65% in favour of committee of Council
Smiths Falls: 77% in favour of staying with the Commission
Kingston: 58% in favour of staying with the Commission
Although none of these are in the GTA, they provide some flavour
of public opinion on this matter.
THE TOWNSHIP OF BROCK
I N THE REGI ONAL MUNI CI PALI TY OF DURHAM
Sept ember 25, 1995
Dr. Anne Golden, Chair
Greater Toronto Area Task Force
Suite 2001, 20th Floor
393 University Avenue
Toronto, Ontario
M5G 1E6
Dear Dr. Golden:
Re: Submission to the GTA Task Force
Corporation of the Township of Brock
I am pleased to enclose a submission to your office in respect
of your mandate issued by the Premier. The attached submission
has been prepared and endorsed by Council with the assistance
of municipal staff.
I trust the contents of our submission will be given serious
consideration by your office particularly in respect of the
unique position this municipality has within the Region of
Durham and the Greater Toronto Area.
2
38 LAIDLAWST. S.,P.O. BOX 10, CANNINGTON, ONTARIO LOE IEO (705)432-2681 (705)426-7723
- 2 -
Should you have any questions, please contact the undersigned
or my planner, Mr. Thomas G. Gettinby at (705) 426-7723.
Yours truly,
Enclosure
cc: A. Leach, Minister of Municipal Affairs and Housing
J. Munro, MPP, Durham-York
G. Ouellette, MPP, Oshawa
J. OToole, MPP, Durham East
J. Flaherty, MPP, Durham Centre
J. Ecker, MPP, Durham West
G. Herrema, Durham Regional Chair
E. King, York Regional Chair
E. Kolb, Peel Regional Chair
J. Savoline, Halton Regional Chair
P. Robertson, GTA Mayors Committee
C. Lundy, AMCT, CMC, Durham Regional Clerk
Area Municipalities, Durham Region
T. Gettinby, MCIP, RPP, AMCT(A), Township of Brock
TORONTO AREA TASK FORCE
BY
T H E C O R P O R A T
SEPTEMBER 1995
-1-
1.0 preamble
It is understock that the Task Force has been charged with the
responsibility of reviewing a number of factors related to governance
within the GTA as well as the delivery of services to its residents. To
this end, the Task Force is seeking submissions which serve to address the
following issues: municipal finance, economic development/
competitveness, infrastructure, municipal managemen
t, and urban form and
governance.
Accordingly, the Township of Brock has organized this submission in the
following manner:
-a discussion of Brocks demoqraphic and econamic composition;
-an historical overview of the municipalitys formation 21 years ago
together with those reasons for inclusion within the Region of Durham;
-a discussion of the municipalitys vision of itself, within the Region
of Durham, and within the GTA (specifically addressing those issues
identified as part of the Task Force mandate).
2.0 Introduction
The Township of Brock forms one of the eight constituent municipalities
located within the Region of Durham. The Township, being the northernmost
municipality within the Region of Durham the Greater Toronto Area, is
located adjacent the southeast shore of Lake Simcoe and south of the
Talbot River/Trent-Severn waterway. Its eastern boundary is shared with
the County of Victoria while the area municipalities of Scugcg, Uxbridge
(within Durham) and the Town of Georgina (within York Region) border to
the south and west. (Figure 1),
The Township of Brock is a rural municipality with agriculture and farm
related uses forming the largest sector of the economy. The rural land
uses are complemented by the three serviced urban areas of Beaverton (3000
persons), Cannington (1700 persons), and Sunderland (900 persons). The
urban areas provide for a full range of commercial and industrial goods
and services to residents and tourists alike.
REGIONAL SETTING
TOWNSHIP OF BROCK
PLATE 1
The urban areas provide for a wide range of housing opportunities
Suppl emented by unique housing opportunities offered by rural residential
locales, hamlets (Gamebridge, Wilfrid, Port Bolster, Sonya, and Manilla),
and shoreline residences associated with Lake Simcoe. The 1994 population
of Brock is in the order of 11,500 persons with approximately 4200
households.
As noted above, agriculture and farm related uses represent the largest
component of the employment sector. Other important components include
aggregate extraction, small-scale manufacturing, and the service sector.
It is also noted that the majority of Township residents live and work
within the Township; however, of those who commute elsewhere, Oshawa is
the preferred location due to the existence of General Motors Canada.
3.0 Historical Perspective
The municipality was created on January 1, 1974, the result of the
establishment of Regional government within the former County of Ontario.
Brock Township was the result of the amalgamation of the Townships of
Thorah and Brock, the Villages of Beaverton and Cannington, and the Police
Village of Sunderland. This followed numerous discussions and proposals
commencing in the mid 1960s over a Regional government concept.
The Task Force should be aware that Brocks inclusion within the Region of
Durham was a result of the Provincial government being responsive to local
residents desire to remain with an area to which the former
municipalities had been traditionally oriented (i.e. south Durham/south
Ontario County). Originally, it had been proposed that Brock Township be
incorporated within the Region of York and/or the County of Victoria. One
proposal suggested that half of the municipality be included within Simcoe
County while the reminder being included with south Durham.
Residents desire to be included within the Region of Durham stemmed from
our 120 year old association with the County of Ontario (the County seat
being in Whitby). Commercial and industrial facilities providing sources
-3-
of income and employment as well as the recent County School Board reform
assisted in identifying Brock with this area particularly in respect of
governance. Such familiarity was not as apparent within the Region of
York nor the County of Victoria,
It is the municipalitys position that this historical connection has been
further entrenched through our membership within the Region of Durham over
the past twenty-one (21) years actively participating in the delivery of
those services mandated by the Regional Municipality of Durham Act and, in
turn, enjoying those service benefits offered through the Region of
Durham.
4.0 Brock Townships Vision
4.1 Individually
A vision statement of the municipality can be best achieved by answering
the following questions: What are the municipalitys best attributes?
what are the Townships future goals? and, what should the municipalitys
administrative goals be?
The following is offered in answer to these questions regardless of the
municipalitys position relative to the Region of Durham and Province
albeit it is acknowledge that our goals cannot be achieved independent of
these two upper-tier governments.
4.1.1. What are Brocks Best Attributes?
-Recreational opportunities associated with Lake Simcoe,
both winter and summer
-Quaint downtowns in Beaverton, Cannington and Sunderland
for shopping (permanent residents and tourists)
-Quiet, relatively issue-free way of life whether urban,
hamlet or rural
-4
-A sense of individuality between the urban areas of
Beaverton,Cannington and Sunderland but, collectively,
they form urban Brock
-A choice in residential living accommdation (urban - small town,
semi-urban - hamlets, rural - countryside, and/or farm lots)
-Recreational facilities and opportunities available year-round
in all three urban areas
-Adequate medical facilities available in all urban areas
-A mix of housing opportunities (farms to shoreline to medium
density) including non-profit and rent-geared to income
-Proximity to other urban centres offering greater choice in
shopping and cultural pursuits given an extensive transportation
network (Lindsay, Orillia, Metro Toronto, South Durham}
-Commitment to the preservation and enhancement of Brocks
natural environmentt
4.1.2. What are Townships Goals?
-Promotion of the Beaverton Harbour as a tourist destination
point for those persons traveling on land and water (due to our
proximity to the Trent-Severn Waterway)
-Actively promote and encourage commercial investment and
revitalization within each of the urban areas (Beaverton,
Sunderland, Cannington) in such manner to complement the
historic nature and character of each community
-Recognize and promote the diversity of each of the urban areas
through residential, commercial and industrial development/
re-developmemt (ie. Beaverton - lake based, Cannington -
historical architecture, Sunderland - commuter shed)
-Provide appropriate and suitable residential development
opportunities within the rural landscape (hamlets, clusters,
shoreline, farm, etc.)
-Provide for a range of residential housing opportunities
which contributes to each communitys individuality while
providing for all socioeconamic groups in Brock through
single-detached, semi-detached, townhousing, apartments)
-Encourage upper-tier governments to assist the municipality
to achieve excellent transportation networks (ie. Highway
404 extension, passenger rail, GO busing) which, in turn,
promotes Brock as a place to live and encourages industry
and the expansion of existing industry.
-5-
-Actively promote employment through
agricultural and industrial sectors
the expansion of the
while reducing the
residential tax burden on existing and future ratepayers
-Continued support of objectives which strive for the
preservation and enhancement of Brocks natural environment
(rivers, streams, lakes, wetlands, etc.) through the promotion
and approval of good development and continued support of
those groups and agencies sponsoring rehabilitation projects
(Conservation Clubs, Conservation Authorities and local
citizens)
4.1.3. What are the Townships Ministrative Goals?
-Management of the Townships resources in a fiscally
responsible manner to ensure that future projects
are undertaken without an undue financial burden
on the taxpayers
-Continue to ensure that upper-tier governments provide
services to the municipalitys residents in such a
manner so as not to negatively impact on Township resources
-Continue to lobby the Provincial Government that a
strong local government is required to appropriately
represent the rural nature and way of life of Township
residents particularly given the fact that Brock is unlike
other municipalities within the GTA due to its rural nature,
small population, and its northernmost location
-Educate municipal staff and all elected officials that the
function of local and other government levels that its
purpose is to SERVE the public in a cost-efficient and
expeditious manner similar in kind to the private sector.
In summary,
others that
to live, to
the Township of Brock should promote, encourage, and educate
the municipality, in its present form, is an excellent place
grow, to work, and to retire.
4.2 Brocks Vision within the Region of Durham
The Township of Brock actively supports and encourages its memberbership
within the Region of Durham in its present form wherein we are but one of
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eight (8) constituent area municipalities (Ajax, Pickering, Whitby,
Oshawa, Clarington, Uxbridge and Scugog) .
The Township DOES NOT SUPPORT
any deviation of the Regions external NOR internal boundaries.
It is believed that Brock benefits from a north-south orientation due to
its history with the southern municipalities through our association with
Ontario County (now part of Durham), access to a larger population base
which can provide services to our residents in a reasonably cost-efficient
manner, and proximity to those commercial and industrial opportunities
offered by those municipalities along the Lake Ontario shoreline. In
return, the Township of Brock, given its proximity to the Lake Simcoe
shoreline and the Trent-Severn waterway, offers the south recreational and
tourism opportunities. In addition, our industry supports those industrial
firms in south Durham.
The municipality firmly believes that amalgamation with other
municipalities on east-west axis does not provide for the continuity
required for membership in an upper-tier municipality as the natural
orientation of Brock has, historically, been to the south. In addition,
an east-west orientation of rural-oriented municipalities would not
provide the financial capital required to serve our residents in the
manner to which they have become accustomed to. It is believed that
certain services as policing, capital investment in hard services, social
services, etc. would be placed in jeopardy.
Political continuity with the Region has been long established with our
participation within the County of Ontario. The Township of Brock is well
acquainted with the southern municipalities as they are with us. It is
the Townships opinion that the political framework with the Region of
Durham provides the best opportunity to provide local representation at
the Regional level with the indirect election of our Mayor and Regional
Councillor who sit on both municipal councils. This is consistent with
the goal of local municipal government to be the most accountable and
-7-
accessible to its constituents. This is particularly important given the
number of residents within the municipality and the area of the Township
relative to the services for the Region is responsible as mandated by the
Regional Municipality of Durham Act.
It should also be noted that, in our opinion, the Region of Durham
functions as it was intended by the Province in 1973.
Business is
conducted in a professional
manner, an excellent political and staffing
relationship exists between its area municipalities and the Region, and
both the Region and the municipality are financially solvent enjoying a
good credit rating. In turn, this provides for an attractive area for
business and commerce to locate.
4.2.1 Brock/DurhamAdnimistrative Changes
One of the issues which has emerged since the Golden Task Force was
established is that of providing for the efficient delivery of services at
the most reasonable cost since each level of governmen
t has the same
taxpayers upon which to draw operating funds.
The Township of Brock
actively supports a comprehensive review of services offered by the Region
of Durham and ourselves to identify cost-savings and to eliminate
duplication of services between each level of government.
Among those services which could be explored as to potential cost savings
are Regional/Township road maintenance, administration of planning issues,
economic development administration, and other matters.
However, the
ownship is of the opinion that most of the present responsibilities are T
evenly split (e.g. the Region administers landfill sites while the
Township administrates collection of garbage and recyclable). In other
services (e.g. sewer, water, and policing) it is appropriate that the
Region maintain exclusive control as they have the funds necessary to
deliver these services and the technical staff available.
-8-
The municipality also believes that the sharing of costs between the
northern municipalities of Scugog and Uxbridge is a distinct opportunity
to save taxpayer costs and we are willing to review same, However, the
Task Force should not misinterpret our willingness to share services with
Uxbridge and Scugog as an indication that we welcome amalgamation with
these municipalities as the geographic size and distinct differences
between each municipality would mean an overall reduction in the level of
services to the taxpayers as well as a loss of identity for each area.
It should also be understood by the Task Force that definitive statements
on the sharing of services cannot be made in the absence of detailed
financial impact assessments at this time. We would note that it is our
understanding that the Regional Finance department has initiatd such a
study and on-going staff meetings have been scheduled between the
Townships of Brock, Uxbridge and Scugog to review such matters.
4.3 Brocks Vision within the Greater Toronto Area
The Township of Brock recognizes its economic and geographical
relationship with the area known as the GTA. There is no doubt that our
proximity to the economic heart of Canada does influence this
municipality
in the form of job creation within and external to Brock and, like the
Region of Durham, we provide other opportunities for residents of the GTA
as a whole. However, our recognition of these facts does in no way
diminish our desire to remain a part of the Region of Durham, in its
present form, for those reasons discussed in Section 4.2.
Further, the Task Force should understand that this municipality does NOT
support the creation of a separate level of governmen
t known as the GTA.
In addition, the Township of Brock does NOT support the dissolution of
Regional boundaries affecting our municipality or those of Durham nor do
we support the creation of a Super-Region
advanced by others in this
consultative process. It is believed that our incorporation or any
portion of Durham Region into Metropolitan Toronto would only compound
those problems now experienced within Metropolitan Toronto.
-9-
The following outlines our comments in respect of the GTA relative to the
mandate of the Task Force:
4.3.1 Economic Develqment/Competitiveness
Despite our recognition of the economic ties we enjoy with the GTA, Brock
is a rural municipality - perhaps the most rural in this area. It follows
that we do not have all things in commo
n with this area; the notion
advanced that municipalities like Brock provide the recreational
opportunities for other municipalities in the GTA is not shared as it is
our desire to promote our own industry to attempt to be self-supporting
and relieve the residential tax burden.
We have no objection to the active promotion of the whole GTA as a place
in which to conduct business; however, the Township can be best promoted
by the Region of Durham and ourselves as opposed to an external party
within a GTA government. T h iS comment is made on the basis that the
dissolution of the Region in favour of a Super-Region would not serve
our best interests in this respect.
4.3.2. Infrastructure
As indicated above, the Township of Brock enjoys many hard and soft
service benefits through our association with the Region of Durham. Costs
of these services have been rationalized due to the assessment base of the
southern municipalities in conjunction with our political representation
on Regional Council.
There is a concern that our present benefits enjoyed through Durham may be
sacrificed if we are placed in another Region or a Super-Region. While
it is understood that we would finance improvements in other areas, a
comfort level is achieved given our historic and political relationship
with the Region of Durham. Membership in another governmental framework
with a much higher population (e.g. super-Region or York) together with
-10-
the potential for less political representation could result in a general
lack of attention for required services in this area.
4.3.3 Urban Form
The Township of Brock is unlike other municipalities in the GTA as it is
primarily rural. The emphasis on creating a vibrant city through
intensification and transit, etc. is not very applicable in this
municipality. However, the municipality does actively support intensified
development forms within our serviced urban areas of Beaverton,
Sunderland, and Cannington.
Notwithstanding our comments above, it is recognized that the Township is
within the commuter shed of Metropolitan Toronto and south Durham. Given
our reliance on the autombile the extension of Highway 404 north from
Davis Drive throughout this municipality is an important consideration for
the continued and future well being of the Township. In addition, the
existence of a main line C.N. railway through our largest urban area
(Beaverton) provides for a natural transit spine to Metropolitan Toronto.
Both of these objectives are actively encouraged within the municipality.
4. 3. 4 Municipal Finance
As set forth in our vision statement, the municipality actively encourages
the wise management of government resources at all levels. In addition,
the municipality is committed to identifying ways in which to deliver
services in a cost-efficient manner within the present Region of Durham
structure. For example, cost-sharing with the Region or with the
Townships of Scugog and Uxbridge, a combination of both, or other
opportunities as they may arise (e.g. private sector partnerships).
The Township realizes that the capital cost of hard and soft services can
only be best achieved through our access to the available assessment found
within the Region of Durham together with the present political
-11-
representation set forth in the Act. The formation of a
region (proposed by others) would have a detrimental impact
rural-oriental
on our ability
to continue to provide services without a substantial and unpalatable tax
and Development Charge increases, which, we believe, is not consistent
with the present governments mandate.
The formation of a Super-Region, in which we would gain access to the
greater assessment of south York and Metropolitan Toronto, is not
appropriate either as our political voice would be severely diminished
(relative to our population) and our geographic location on the periphery
would effectively remove ourselves from active financial consideration.
In summar y, t h i s municipality does not believe that we, or any portion of
Durham Region, should be made responsible for the financial/assessment
problems now experiencd by Metropolitan Toronto. Further, the Task Force
should be aware that we, in Durham Region, may already be paying for
Metros assessment problems in respect of the large tax differential in
all classes of real estate between the two areas as our assessment is
substantially higher.
4.3.5 Municipal Management
It is our opinion that the primary function of the municipality and its
staff is to serve those members of the public who seek our assistance and
to guide them through the perceived red-tape associated with the
bureaucratic process. Not only must staff be cognizant of this fact but
so must all local, Regional, and Provincial politicians. It is a lesson
which must be learned from the private sector: that our primary purpose is
to serve as opposed to complicating matters for the general public.
This municipality believes that the management of this municipality,
together with the Region of Durham, given staff resources, is reasonably
efficient and that the public is well served. This is not to suggest that
inprovements could not be made through a review of shared services within
a Region of Durham context. As indicated above, the municipality actively
-12-
supports the review of services delivered between the Region of Durham and
ourselves to identify cost-savings and eliminate duplication.
The management of the municipality to best serve the residents of this
area, can be best achieved within a known and trusted framework consisting
of ourselves and the Region of Durham.
We do not believe that effective
rnanagement will be realized through our amalgamation with other Regions
(York, Simcoe, Victoria) nor through the dissolution of the Region of
Durham in favour of a GTA level of govermen
t.
5. Conclusion
The interests of the residents of Brock Township can be best served
through the maintenance of our existing relationship with the Region of
Durham. In this regard,
based on our vision of t he fut ur e, and our
r elat ionship wit h the GTA, we believe that Brocks future lies in the
Region of Durham, in its present form.
We do support a review of those
services offerd by the municipality and the Region in an effort to reduce
the cost of service delivery and eliminate duplication of services.
It is strongly believed that current and future economies-of-scale may be
achieved in the absense of boundary alterations and that such cost saving
measures should be studied in detail prior to entertaining more radical
steps to achieve a more efficient delivery of services.
1 12EI
-
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SUBMISSION TO: GTA Task Force
SUBMISSION RE: Governance within the GTA
SUBMISSION BY: Karen Buck, 58 Leuty Avenue, Toronto, Ontario, M4E 2R4
(41 6) 690-7593
SUBMISSION DATED: September 30, 199S.
Dear Members of the Task Force - Dr. Anne Golden, Jack Diamond, Thomas McCormack, Robert
Pritchard, Dr. Joseph Wong;
With this submission to your Task Force I am also including my submission to the
Toronto Council.
As a taxpayer and resident of the City of Toronto I am not advocating the continuance of an
upper tier of government in either Metropolitan Toronto nor the development of a new one in the
GTA
When Metropolitan Toronto was formed it was the suburbs that needed the wealth of
Toron~os tax base and the built and paid for infrastructure of the City of Toronto to make them
successful. Now with GTA whose taxes and whose infrastructure will be footing this bill?
Please refer to GTA 2021: Whose Vision?
Past and present Metropolitan Toronto Councik have not been responsive to the needs of
the individual Municipalities. Metropolitan Toronto politicians might feel that Metropolitan
Toronto is one unit, however, when it governed thinking like this it ignored the individuality
and the differences that exist within each of the Municipalities. See my Toronto submission.
Instead of cost efficiencies and better progtamme delivery, I believe the Metropolitan
Toronto Government went about unnecessarily duplicating whole bureaucracies... and delivery of
services. The creation of a government falls under specific provincial regulations and
requirements. I believe it was a provincial government requirement that meant that
Metropolitan Toronto, as a regionalgovemment, had to develop its own Offic@l Plan even though
each of the municipalities have their own.
It is imperative for this Task Force to set up a structure that can co-ordinate services,
/
deliver those sewices without huge interjurisdictional conflict, with cost efficiencies and
without duplications. Because I do not believe another government structure with another
political agenda can accomplish this tam suggesting that this Task Force consider the following
for Metropolitan Toronto :
1 ) Co-ordinating Committes made up of the Commissioners of the Municipalities
in each of their respective Departments...
2)with direction to develop overall Metropolitan Torotio cost-effective and co-
ordinated service delivery . . .
h
3)with direct reporting to the respective Municipal Governments, and,
4)the maintenance of Boards, where no departments exist and where the Boards
have been successful in the delivery of their prograrnmes.
The elimination of the Metropolitan Toronto Government would not mean a collapse of the
total bureaucratic structure but it would mean a re-iocation of jobs, re-delegation of jobs,
down-sizing efficiencies within departments and the elimination of whole departmen~. The
Metropolitan bureaucracy would become part of the Municpal government structure. Less
government, less controversy and a real desire for Municipal collaboration in shared goals could
and should resuR in lowered costs. Lowered costs could mean lowered taxes and greater
financial opportunities in urban areas where it has been recognized that economic recovery
strategies should be initiated. (With a lowered tax structure...with rnunicipa~ities in regions
outside Metropolitan foronto looking after their own infrastructures... maybe a Toronto economy
could compete with Vaughan.)
The Toronto Municipalities are both an appropriate area and imputation size for
responsible and responsive governance. Anything larger is Provincial. In Ontario there is a
strong role for the Municipality and the Province. Where municipalities are small and regional
government has been effective I can support the concept but in Metropolitan Toronto I do not
believe this to be the case. Metropolitan Government has been mired in political decision-
making that was based on few facts and poor technical understanding. Where heatth was a major
consideration in the decisions being made Metropolitan Government without a Health Board was
responsive/responsible to no one. Within the Department of Works the budget approval process
by Metropolitan Toronto politicians allowed for monies to be approved without specifying exact
project descriptions.
The Provincial Tax Structure may also be taking its toll on Toronto urban economies. I
wouid like to see an education tax on individuals and businesses Province-wide rather than on
the Market Vaiue of property. Do the taxpayers of Metro Toronto have a disproportionate share
in the current education tax and also in the taxes paid for sewerages outside the Metropolitan
Toronto area? if there is inequity i would like to see these two tax inequities removed. ( I wouid
also like this Task Force in its recommendations, if they include new Fair Taxation policies, that
they also consider an individual... but dedicated...levy on University/College Graduates. I would
like to see all Universities benefit from the students who graduated from these institutions. As a
graduate of the University of Saskatchewan I am aware that Canadian/Provincial taxpayers
subsidized my education and am proposing that a percentage of my income tax go back to that
particular insitution to maintain its present programmes and costs. I want this to be a built in
feature of the taxation system without the development of a separate government bureaucracy or
government Corporation.)
AGTA i think would increase taxes. With greater jurisdictional area and greater
population, representatives in the new political entity and employees in the bureaucracy would
see themselves as having greater job responsibity and therefore deserving of greater
compensation in salary and benefits. At a time when our Municipal governments are dealing
with Federal and Provincial tax transfer cuts and a population which may not be able to be
further taxed I think that a GTA government is not a viable consideration.
Each municipality with its own uniqueness may be better able to market itself most
effectively. Compromise eludes best solutions. Concensus is cumbersome and time/money
consumptive. Although there certainly may be shared goals and service, as needs occur
partnerships can develop. We need the flexibility for different municipalities to cater to
different economic opportunities. We dont need mega-regions just as we dont need mega-
infrastructures.
I would like to see both Metropolitan Toronto Co-ordinating Committees and GTA C-
ordinating Committees. The GTA planning initiatives shouid be grounded in Provincial
Leadership. The Metropolitan Toronto Co-ordinating Committees should be grounded in
Municipal leadership. All Co-ordinating Committees should be inclusive and expertise oriented
with electoral responsibility to the Municipal Government(s) involved.
SOEI39Wd ZS01L8SZC9s6Z9S2~C
SUBMISSION TO: Toronto City Councillors
SUBMISSION RE: Metro/GTA Government
SUBMISSION BY: Karen Buck, 58 Leuty Avenue, Toronto, Ontario. M4E 2R4
(416) 690-7593
SUBMISSION DATED: September 18, 1995,
Mayor Hall and Toronto City Councillors;
I support neither the continuance of the political level of Metropolitan Government nor its
replacement government, the Greater Toronto Area Regional Government.
Since 1987 I have been involved, as a resident of Toronto - in City Ward 10, with waste issues
that have had a direct impact on the environmental quality of life in the communities of the East
End of Toronto. My involvement at the community level brought me into contact with the Metro
level of government. The impacts felt by the East End communities were the direct result of the
decision-making at Metro. The Metropolitan Toronto Government was in control of the
processing facilities that were situated in our communities. Specifically, Metro was operating
the Commissioners Street Incinerator and is still operating the Main Sewage Treatment Plant in
our community.
I can not understand under what authority or what right the past and this present Metropolitan
Government can continue to operate facilities (within the boundary of the City of Toronto)
whose practices are opposed by both the citizens who reside in the area and the Toronto
Municipal Government.
In 1953 the municipalities supported pooling their resources for the betterment of all the
municipalities. My experiences in issues directly dealt with by the Metropolitan Government
leads me to report to you that the Metropolitan Toronto Government seems to be able to operate
independently and in many cases, at cross purposes, to its member municipalities.
I return to the Commissioners Street Incinerator to make my point. Toronto City Council and
the Toronto Board of Health supported The closure of the polluting Commissioners Street
Incinerator. The Municipality was supporting the closure of a facility run by Metro that was
polluting East End Toronto communities. Although the facility was operating within the
boundaries of the City of Toronto the Metropolitan, Toronto,Works Committee and Department
was unwilling to shut the facility and was unwilling to institute recycling as ttie less polluting
alternative. it took years and hours of citizen and Toronto Government opposition to finally
close the facility. I have witnessed also the reticence.of the Metropolitan Government to get on
with implementing new recycling programmed which de-emphasize disposal. The expansion of
the Blue BOX to include a Fibre Box has been a part of many municipalities programmed for
years but it will not be until October of this year that Metro will begin this collection. The
unwieldiness of the interjurisdictional decision-making and sharing of responsibilities points
out to me that this extra layer of decision making has to be simplified. Metropolitan Toronto is
not the government that is facilitating regional planning nor cost effectiveness amongst the
municipalities shared programmed.
What occurred on the waste front in garbage collection and processing is also occurring on the
sewage front. Metro and Toronto are at odds over the Main Sewage Treatment Plant which is
operated by Metro but lies within the municipality boundaries of Toronto. Metro Toronto is
9L3039tJd 2S01L8SZCPS6Z9szc&
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pursuing regional sewage processing with processing facilities which are making the shared
Toronto waterfront the dumping ground of polluting Metro facilities. The citizens of Toronto are
asking that as old equipment is ready for replacement with new equipment that Metro introduce
less polluting processes over the old more polluting ones. Metro rather than changing its sludge
incineration for a comprehensive biosolids implementation programme opted to go to a costly
Environmental Assessment Process when residents and the rnunicipality of Toronto opposed the
planned expansion of the plant it exists now. I believe the proponent to the Assessment the
Metropolitan Govemment, could have opted to change its sludge incineration to a biosolids
application programme and its present chlorination disinfection system to ultra violet
disinfection with the support of the Toronto communities and government and perhaps have
proceeded to only take expansion of the Plant through a full Environmental Assessment Process.
Ottawa and Hamilton seem to have accomplished changes similar to these without the full
Environmental Assessment Process and the costs that this process entails.
I think we currently have a Metropolitan Government that is not serving the needs of the
municipalities residents and is not seeking the most cost-effective means of achieving these
needs. I therefore am in support of dissolution of the political entity known as the Metropolitan
Government and would have the municipalities come up with a better solution for defining and
administering what they feel would be cost-effective shared programmed.
As for a Greater Toronto Government replacing the Metropolitan Government! voice an emphatic
no. What is unachievable at the Metro Level would certainly seem to be an impossibility at art
even larger, more diverse level. A Greater Toronto Area Government would come close to, if not
actually, outstripping the size of the Provincial Government in both its financial budget and its
population jurisdiction.
Rather than supporting a Greater Toronto Area Government competing with the Provincial
Government I would ask that the Provincial Government set Province wide policies that would
clearly define and co-ordinate the implementation and financing of interjurisdictional
programmed. Strong Municipal Governments should be accountable to the people in their
communities where they live and strong Provincial Government should be accountable to
Municipal Governments and should be able to deliver the overall provincial policks that direct
municipal government programme implementations and provide total or shared financing. I
believe that there is a size, which once exceeded, costs us all dearly and I believe that there is
unnecessary duplication when taxpayers are supporting too many political entities.
Sincerely,
*lf Market Value Assessment is also to be debated within the same agenda item I want you to
know that I am firmly opposed to a taxation system based on Market Value Assessment.
The Corporation of the
City Hall:
426 Brant Street, Burlington, Ontario, Canada
City of Burlington
Mailing Address:
P.O. Box 5013, Burlington, Ontario, Canada L7R 3Z6
Office of the Mayor
Fax No.:
(905) 335-7708
File: 160-06
August 17, 1995
Dr. Anne Golden, Chair
GTA Task Force
393 University Avenue
20th Floor, Suite 2001
Toronto, Ontario
M5G 1E6
Dear Dr. Golden:
I understand that one of the reasons that your Task Force was established was to
with both the economic concerns and tax assessment inequities in Metropolitan Toronto.
deal
I also understand that your Task Force is currently considering Unit Value Assessment
as a possible alternative to the Market Value system. This question of Unit Value has been an
issue in Halton. Indeed, an Oakville group is suggesting that the fully approved Regional
Market Value Reassessment in Halton, which is now ready to go, be put on hold so such a Unit
Value study study could be undertaken.
Bluntly, such a moratorium in Halton Region would be a disaster to all the constituent
local municipalities, as the tax base would be subject to an increasing number of appeals. The
taxpayers of Halton now have available the figures for the assessments based on 1988 figures.
In a couple of weeks they will have available the 1992 figures. We are already seeing an
increased number of appeals. Any moratorium at this point in time and not implementing the
fully approved reassessment would result in financial problems for each municipality in Halton
Region.
Also, I believe that while Market Value Assessment is not perfect as a system of
assessment, various studies over the years have not come up with a better solution. Also Unit
Value Assessment is basically a variation of Market Value Assessment with a great deal more
subjectivity. And, moving to any Unit Value Assessment will cause as many dislocations as
would be caused by moving to a Market Value Assessment basis.
The real problem is the way in which Market Value Assessment is done through the
Province. The City of Burlington has made representations to the Province and to the Fair Tax
Dr. Anne Golden, Chair
GTA Task Force
August 17, 1995
-2-
Commission to suggest that the Assessment Act be amended to limit the adverse consequences
of very large fluctuations in value.
Please find enclosed the following information, which sets out the City of Burlington
position on these matters:
(1) Presentation to the Ministry of Treasury and Economics by the City of Burlington, May
12, 1993
(2) Presentation to the Ontario Fair Tax Commission, May 28, 1993
(3) A copy of a letter sent to the Honorable Cam Jackson and other Burlington MLAs
dated July 5, 1995. Enclosed with that letter is a 4 page summary of the history of
Market Value Assessment in Halton
(4) A copy of a resolution passed by the City of Burlington in the last couple of months on
the matter of Market Value Assessment in Halton Region.
All of this information has been communicated to the Provincial Government.
I wanted you to see all this information and be able to study it. We certainly have some
very real concerns in this area if there is any attempt to change the previously unanimous
decision to implement Regional Market Assessment in Halton, January 1, 1996.
Frankly, I think that moving towards a Regional Market Value Assessment on the
Halton model in Metro Toronto is likely a very good first step to solving their problems.
However, I am not going to dwell on that issue at this point. Let me simply say that we have
done a great deal of work in this area. I have both some points of view and understanding on
the topic and if you would like to discuss it further, I would like very pleased to do so.
Thank you very much.
Yours sincerely,
PRESENTATION TO THE MINISTRY OF TREASURY AND ECONOMICS
BY THE CITY OF BURLINGTON
WEDNESDAY, MAY 12, 1993
REGIONAL MARKET VALUE ASSESSMENT IN HALTON
BURLINGTON DELEGATION:
Mayor Walter Mulkewich
Alderman Mark Carr
Michael Fenn, City Manager
Bob Barrington, Acting Director of Finance
Bob Rooks, Executive Co-ordinator, Special Projects
R E Q U E S T
That the Province of Ontario make market value reassessment in
Halton fairer, the
provide for more
basis in Halton,
extremes of uneven
BACKGROUND
assessment base more stable and more predictable, - and
acceptance of market value reassessment on a regional
by capping the shifts in value resulting from
market value changes.
1 . 1988
*
The City of Burlington went to the market value basis
assessment on 1984 values.
*
A phase-in program (innovative for its time) lessened
impact on those residents who had the greatest amount
negative impact.
(No phase-in for comercial/industrial. )
*
In spite of a phase-in, many residents still feel the impact.
2. 1992
the
of
the
of
*
Halton Region Council adopts a Region-wide Market Value
Reassessment on 1988 market values with a phase-in program.
*
Regional reassessment allows similar valued properties in the
Region to pay similar taxes for services delivered on a
regional basis. (Region, police, education totalling 70% of
the tax bill.)
*
The City of Burlington supports Regional reassessment subject
to a two year phase-in under the provisions of the Municipal
Act and that the Province consider potential amendments to
the Assessment Act to modify the impact of Market Value
Reassessment resulting from uneven market value changes}.
*
The City of Burlington also requested the Province consider a
Property Tax Deferral Program for Senior Citizens.
*
A major popular revolt occurs especially in Oakville and parts
of Burlington hard hit with major increases, both residential
and business.
*
Halton Region Council reconsiders and delays implementation to
1994, while a Citizens Committee explores alternatives in
1993.
- 2 -
3. 1993
*
The Province of Ontario, Minister of Treasury and Economics
response to the Burlington request is to use existing
legislation to phase-in only.
*
The Halton Citizens Committee continues its work and is
expected to report in the Fall.
*
The Fair Tax Commission is doing a pilot study in Halton on
alternatives.
*
To implement Regional Market Value by January 1, 1994, the
Province will need to advertise and hold meetings in 1993.
*
The reassessment of all properties in Halton Region is now
public and the inequities are in the open. Fairness,
stability, and predictability are at risk, as large portions
of the residential and business sectors know they are
overpaying and the system may be subject to appeals.
*
The Fair Tax Commission report is not due until the end of the
year and implementation is very uncertain. The Halton
Citizens Committee has a monumental task in a few months.
The January 1, 1994 Regional deadline looms.
*
The nature of market value reassessment means that every
reassessment will produce shifts because values will shift.
Different areas and different types of properties may increase
or decrease in different ways. For example, in Burlington,
many Downtown residences and businesses experienced decreases
in the 1988 reassessment, and now in 1993 face large increases
- very large. It is not fair, stable or predictable to
experience these large shifts in some areas and not others
with every reassessment.
*
The whole Regional reassessment program is in jeopardy as is
the principle of fairness and the stability and predictability
of Burlingtons tax base in this recessionary time.
-3-
1. Phase-in is better than nothing. But , there will still be
very large increases particularly in parts of the small
business sector. The Provinces action to institute capping
can be done and allow us to proceed fairly.
2. A partnership between the local municipality and the province
whereby the local municipality uses its existing phase-in
ability and the Province brings in a system of capping to even
out the extreme and uneven changes.
3. The Province should develop a formula and system to cap the
total increase allowed under a reassessment using an average
of past assessment values or any other system which is
practical.
4* The Province should look at the averaging method used by
British Columbia to make market value reassessments fairer,
more stable, and more predictable. See attachment.
THE BENEFIT
*
The Province could demonstrate its commitment to the principle
of fairness in property taxes and use Halton as a pilot in
this regard.
*
Halton Region Reassessment could precede with far greater
acceptance and with more fairness, while protecting the future
integrity of the property tax base in Halton.
-4-
ENCLOSURES
1. Letter to The Honorable Floyd Laughren, February 9, 1993.
(Also attached letter of January 14, 1993 to the Honorable
Shelley Wark-Martyn with attachments.)
2. City of Burlington Council Resolution.
3* Region of Halton Resolution.
4. Letter from the Minister of Treasury and Economics
(April 7, 1993).
5. Property Taxation in British Columbia and the City of
Vancouver: Averaging and Phasing Options for Land Valuation.
City Hall:
426 Brant Street, Burlington, Ontario, Canada
Mailing Address:
P.0, Box 5013, Burlington, Ontario, Canada L7R 3Z6
Telephone: (416) 335-7606
a x N o
:
( 4 1 6 ) 3 3 5 - 7 7 0 8
The Honourabl e Floyd Laughren
Treasurer of Ontario and
Minister of Economics
7th Floor, Frost Building South
7 Queens Park Crescent
Toronto, Ontario
M7A 1Y7
Dear Sir:
Regional Market Value Assessment/Region of Halton
Fi1e : 145
You are aware that the.Region of Halton has considered
instituting Market Value Assessment on a Regional basis with 1988 as a
base year. This has now been deferred. to the 1994 taxation Year and a
Citizens Committee is looking at alternatives. The City of Burlington
has favoured going to Regional Market Value Assessment but also
understands the difficulties the shifts have created. In. particular, we
are concerned about the impacts resulting from the extremes of uneven
market value changes: We believe that the Assess ment Act can be amended
to look after these concerns and limit the extreme impacts on individual
taxpayers. .
On January 14 I wrote to the then Minister of Revenue,
Honourable Shelley Wark-Martyn, with a request for a, meeting to
these changes. A copy of that January 14 letter is enclosed for
information.
the
discuss
your
I would like to provide further back-up information with regard
to our concern that periodic updates of market value can result fin
significant swings In assessment. In the City of Burlington,. for
example, commercial property. in our Downtown will experience very
significant increases in taxation as a result of the update of market
values to 1988, which was a boom year involving considerable buying-up of
property in the Downtown. Even though the years 1987 and 1989 may have
been taken into account, there is a significant change from our previous
market value assessment based on 1984 market values.
- 2 -
The Honorable Floyd Laughren .
Treasurer of Ontario and
Minister of Economics
February 9, 1993
When City-wide Market Value Assessment was Implemented for the
City of Burlington in 1988, some commercial properties in the Downtown
actually experienced decreases in taxation, while those in the shopping
malls and other parts of the City Increased. The reverse has now
occurred. One large office buildlng in our Downtown would be subject to
an,increase of approximately 90% in taxation and there are several other
businesses with Increases in excess of 75%.
Both the Region of Halton and the Town of Oakville conducted an
analysis to show the effects of the swings in market value between 1984
and 1992. The regional analysis Is a more extensive one, Involving
almost 2,000 residential properties, showing the effect of using 1992
market values instead of 1988. For example, the Town of Halton Hills,
instead of experiencing an increase of $714,000 in taxation on the
residential class, would enjoy a reduction of almost $900,000 if the
market value was updated to 1992.
The Oakville analysis compared residential values on a sample of
properties in Oakville and Burlington for the years 1984 through 1992.
The comparison seemed to indicate that whi1e there was clearly a shift to
higher market values in Oakville in the period 1984 to. 1988, there would
be a shift back in the next four years to 1992, and that therefore the
next update to market value assessment would produce significant change
in the distribution of the tax levies.
I am attaching extracts from the reports by the Regional and
Oakville Treasurers to their Councils which support these comments.
We in Burlington realize the importance of keeping assessment
values up-to-date and in the final analysis, Market Value as a basis for
taxation may be the most equitable approach. However, we are concerned
about the swings in taxation on individual properties which can occur due
to anomalies in the real estate market. We therefore are suggesting that
your staff investigate ways of avoiding these extreme shifts in value,
perhaps through a system of averaging of market values over a period of
years or some other system of capping the shifts.
We realize that this will require a change in either general or
special legislation. We raise this matter at this time, so that
improvements to the system can be effected for implementation in Halton
on January 1, 1994. We would be most pleased to assist you with any
information in any way we can.
The Honorable Floyd Laughren
February 9, 1993
Treasurer of Ontario and
Minister of Economics
- 3 -
Once again I would request a meeting with you and your senior
officials to determine how we can work towards these changes.
Thank you for considering this request,
Yours truly,
WM: RJR: sb
Cc. The Hon. Ed Philip, Minister of Municipal Affairs
& Greater Toronto Area
M. Fenn, City Manager
Alderman M. Carr
Alderman T. Whitworth
b.c.c. S. Rosenblum,
Special Policy Advisor to the Hon. Floyd Laughren
I. Fawcett, Policy Asst. to the Hon. Ed Philip
City Hall:
426 Brant Street, Burlington, Ontario, Canada
Mailing Address:
P.O. Box 5013, Burlington, Ontario, Canada L7R 3Z6
Telephone: 335-7606
Fax No.:
335-7708
File: 145
January 14, 1993
The Honorable Shelley Wark-Martyn
Minister of Revenue
4th floor
Hearst Block
900 Bay Street
Toronto, Ontario
M7A 1X7
Dear. Minister Wark-Martyn:
You are aware that the Region of Halton has in the past year
considered instituting Market Value Assessment on a Regional basis with
1988 as the base year.
Upon a motion of reconsideration, Regional
Council has deferred the implementation of this Regional Market Value
Assessment to the 1994 taxation year.
In the interim, the Region is
proceeding with a Citizens Committee to look at possible alternatives.
The City of Burlington, which is a constituent part of the Region
of Halton, put its tax base on the, Market Value Assessment system in 1988
and did so on the 1984 base.
When the City of Burlington brought forward
Market Value Assessment, it instituted its own Phase-In Program to lessen
the impact on those residents who had the greatest amount, of negative
impact. This Phase-In Program was innovative in its time. This Phase-In.
Program was also done by the City and it was done outside of the need for
any Provincial approval or Provincial legislative change,
When the question of Regional Market Value Assessment in Halton
came forward, the City of Burlington supported going to Market Value
Assessment on Regional basis and updating the base year to 1988. The
City did so, along with a recommendation to the Region of Halton that
there be a "two year phase-in of Regional and education taxation under
the provisions of the Municipal Act or Bill 165".
The City further.went
on to recommend the following:
That Staff be directed to review with
the Province of Ontario, potential amendments to the Assessment Act to
modify the impact of Market Value Reassessment resulting from the
extremes of uneven market value changes.
The Honorable Shelley Wark-Martyn
Minister of Revenue
-2-
January 14, 1993
Clearly, City Council recognized that the process of going to the
1988 Regional Market Value base would result in negative impacts on a
number of taxpayers
in the City of Burlington,
both commercial and
residential. Indeed, much of the very negative and vocal opposition to
Regional Market Value in Halton Region was from residents who would be
impacted and often impacted severely by this change in the taxation.
base. In the City of Burlington, we certainly will have both residential
and commercial industrial taxpayers who will see very large increases.
These taxpayers in my estimation have a legitimate complaint and problem
because of these large tax increases.
It may not only be a matter of
ability to pay in some instances,
but. there is a legitimate concern about
the stability of the tax base and the predictability of the tax base if
at. periodic updates there are these large swings.
And, it is clear that
these large increases are the result of the extremes of uneven market
changes in the market place. These extremes, are reflected in the changes
in assessment.
On December 14, 1992, the City Council of Burlington passed the
following recommendation
"that the Mayor and Co-Chairmen of the CommunitY
and Corporate Services Committee meet with the Minister of Revenue to
request that the Provincial Government consider as quickly as possible
amendments to the Assessment Act to modify the impact of Market Value
Assessment updates resulting from the extremes of uneven market value
changes through a system of caps on assessment or by using a rolling
average of current and previous assessments.
The City of Burlington wants to have a tax assessment base which is
as fair as possible. Part of that fairness is to consider ways in which
the extremes of uneven market value changes can be modified in periodic
updates to Market Value Assessment. The whole answer is not only in the
Phase-In Program which is within the authority of the municipal level.
Clearly, the Province of Ontario which has responsibility for the
assessment function has a role to play.
And, in this computerized age
surely we have the ability to develop some sort of system of caps on
assessment or some sort of rolling average of current and previous
assessment to modify the impacts of extremes of uneven market value
changes. Your staff may have other ideas as well.
We understand that the question of Market Value Assessment is one
that is not unique to Halton Region.
It is an issue in other parts of
the Greater Toronto Area. It is my opinion that if the Province of
Ontario wishes to proceed with a fair and equitable tax base and if it
wants to do so on the market value basis, that it must seek to make that
system as fair as possible.
The Honorable Shelley Wark-Martyn
Minister of Revenue January 14, 1993
-3-
The purpose of this letter is to request that the Province of
Ontario consider the ideas that the City of Burlington has brought
forward. Secondly, I would like to request a meeting on behalf of myself
and the Co-Chair of the Community and Corporate Services of the City of
Burlington to meet with you personally to present our thoughts. in further
detail. Because this issue is one that will be under study in Halton
Region in the next short while, I believe that such a meeting should
occur as quickly as possible. I will await your response and look
forward to meeting with you.
Thank you for your willingness to meet with us and to examine this
issue.
WM:smm
cc: The
The
Mr.
Ms.
Mr.
Mr.
Yours sincerely,
Honorable Dave Cooke, Minister of Municipal Affairs
Honorable Ruth Grier, Minister responsible for the GTA
Cam Jackson, MPP, Burlington South
Barbara Sullivan, MPP, Halton Centre
Noel Duignan, MPP, Halton North
Gary Carr, MPP, Oakville South
Peter Pomeroy, Regional Chairman
Members of Burlington City. Council
Michael Fenn, City Manager
Bob Barrington, Acting Director of Finance
Bob Rooks, Executive Co-ordinator, Special Projects
Office of the
Ministry of
Treasurer
of Ontario Treasury and
Cabinet du
de IOntario
Ec onomi c s
l Ec onomi c
April 7, 1993
Mayor Walter Mulkewich
City of Burlington
City Hall
P.O. Box 5013
Burlington, Ontario
L7R 3Z6
Dear Mayor Mulkewich,
Thank you for your letter to Shelley Wark-Martyn, former
Minister of Revenue. As newly appointed Minister of
Finance, I would like to respond to your letter regarding
the need to minimize assessment shifts within region-wide
reassessments.
The purpose of a general reassessment is to enable
similar properties of comparable market values to pay
similar property taxes. This i.s possible only when tax
burdens are redistributed according to the market value
of properties. The purpose of a reassessment is defeated
if these changes are suppressed or otherwise manipulated.
Dramatic and unpredictable tax swings which follow a
general reassessment may be stabilized using phase-in
provisions under section 363 of the Municipal Act.
These provisions enable municipalities to pass a bylaw in
the year of a general reassessment to limit the amount of
tax increases for individual properties.
You may wish to
contact my colleague, the Honorable Ed Philip, Minister
of Municipal Affairs, if you are interested in discussing
phase-in and other related issues.
. . . 2
@
Mayor Walter Mulkewich
Page 2
I have asked Cathy Farr,
the Assessment Commissioner, to
provide you with a detailed explanation of the assessment
changes which accompanied the last impact study presented
for consideration by your Region.
Please contact her at
(416) 270-8050 if you wish to avail yourself of this
service.
copy:
Cathy Farr
This letter is to confirm that the Council of the Regional Municipality of Halton, at a special
meeting held Wednesday, December 2, 1992 considered the above noted subject and
subsequently endorsed the following resolution:
1. THAT the Minister of Revenue be requested:
i) to implement the Region-wide Assessment Update by property
class using 1988 as the base year for the initial assessment,
provided that a 2% allowance be built in to assessed values to
protect the assessment base against losses due to assessment
appeals; and,
ii) to defer the actual implementation thereof until the 1994 taxation
year.
2. THAT this request be forwarded to the Minister of Revenue following the return
of the 1992 final assessment rolls for the 1993 taxation year.
3. THAT the Region of Halton support a three year phase-in of the taxation impacts
resulting from Region-wide assessment and further that a phase-in grant be
provided to mitigate the impact on those ratepayers most adversely affected.
Local Inquiries From:
ACTON: 853-0501 GEORGETOWN: 878-8113
ALDERSHOT: 6394540
- 2 -
4.
5.
6.
7.
THAT Regional Council immediately constitute a citizens committee with
representation from all Halton area municipalities to investigate property tax
with
assessment alternatives and to make recommendations to Regional Council on the
preferred method of assessment.
THAT Regional council support the Regional Chair and the four Area
Municipality Mayors in meeting with the Minister of Revenue to petition that the
Assessment Act be amended to modify the impact of Region-wide Market Value
Assessment resulting from the extremes of uneven market value changes through
a system of caps on assessment or using a rolling average of current and previous
assessments.
.
THAT a copy of Report FN-129-92 be forwarded to Haltons area municipalities,
Boards of Education, and Conservation Authorities for their information.
THAT any motion to further reconsider or rescind the Regional Council decisions
on the implementation of Region-wide Market Value Assessment requires a two-
third (2/3) majority vote of Regional Council and that By-law 41-81, as amended,
being Haltons Procedural By-law, be amended accordingly.
Should you require any additional information, please do not hesitate to contact Mr. J. Rinaldo,
Commissioner of Finance and Regional Treasurer.
cc. Robert H. Beach, Chairperson/Facilitator, Citizens Committee on Property Tax Reform
cc. Mayor Gordon Krantz - Town of Milton
cc. Mayor Russ Miller
- Town of Halton Hills
cc. Mayor Ann Mulvale
- Town of Oakville
cc. Mayor Walter Mulkewich - City of Burlington/
cc. Joseph Rinaldo, Commissioner of Finance and Regional Treasurer
REGULAR MEETING OF COUNCIL NO. 12
MAY 25,1992
MOTIONS: (Continued)
109. The motion, as amended, as follows was then considered:
REGION-WIDE REASSESSMENT
WHEREAS a Region-wide reassessment will provide a more equitable
allocation of municipal and education taxation throughout the Region
of Halton;
AND WHEREAS a common assessment base will simplify the
calculation of mill rates and eliminate the complexities of
apportionment of regional and school board levies between
municipalities with varying levels of assessment in relation to
property values;
NOW THEREFORE the City of Burlington supports the
implementation of a Region-wide Section 63 Re-assessment Program
for the 1993 fiscal year, and would support a request by the Region to
the Minister of Revenue to provide in the reassessment for the
following:
1) a two percent allowance be built into reassessment values to
protect the municipality against assessment losses due to
assessment appeals;
and that the City of Burlington recommends. to the Region of Halton
that there be a two year phase-in of Regional and Education taxation
under the provisions of the Municipal Act or Bill 165;
and that staff be directed to review with the Province of Ontario
potential amendments to the Assessment Act to modify the impact of
Market Value Re-assessment resulting from the extremes of uneven
market value changes;
and that the City Clerk be directed to forward a copy of Councils
resolution together with Finance Report F-34/92 dated April 9, 1992
to the Region of Halton and to the other area municipalities in the
Region of Halton;
and that the Mayor be directed to correspond with the Province, the
Minister of Finance, the Minister of Revenue, the Minister of
Municipal Affairs and the three area MPPs and call on the
Government of Ontario to implement a province wide Property Tax
Deferral Program for senior citizens as outlined in City Managers
Report 6/91 and adopted by Burlington City Council through Council
resolution CC-94-91.
A Recorded Vote on Motion No. 109, as amended, was requested by Alderman
Whitworth resulting in the following:
For: Aldermen MacIsaac, Whitworth, Groves, Scholtens, Carr, Quinn,
Taylor, Trueman, Lee, Lougheed, Carter, Savoline, Brechin, Wood and
Mayor Mulkewich. (15)
Against: Aldermm Greenaway. (1)
Absent: Alderman Ryan. (1)
375
Property Taxation in
and the City of
British Columbia
Vancouver:
Averaging and Phasing Options for
Land Valuation
Averaging or phasing land values for the property tax roIIs may help
municipalities in British Columbia maintain stability and certainty in the taxation
base during periods of rapid change in local real estate market conditions.
By Penny Bruin
Variable Tax Rates
There is not a common tax rate for all
classes of property; rather, there is a
unique tax rate for each class of property.
This system is referred to as variable tax
rates. Expressed as a rate per $1,000 of
taxable value for each property class, tax
rates are set annually by the municipal
councils to yield the desired tax revenue
for each class of property. The purpose of
these variable tax rates is to allow the
municipality to maintain the proportionate
share of the total tax burden for each class
of property. For example, if commercial
properties were to double in value while
residential properties remained constant,
to keep the relative shares constant, the
commercial tax rate would be halved and
the residential rate maintained. Although
this concept allows the shares of tax
burden among classes to be maintained,
there has not been a similar mechanism to
stabilize the burden within classes. It is the
potential for differential shifts in market
value within a class of properties, resulting
in a shift in tax burden, that is the focus of
this article.
While the taxation system is based on
market value, with market value deemed
to be a measure of the ability to pay taxes,
occasionally in times of volatile price
changes there is a need to dampen the
changes. To illustrate: In 1989, rapid
fluctuations in real estate prices in
Vancouver resulted in shifts of the land tax
burden within property classes. The
market values increased at a greater rate
for the residential properties on the west
side of the city than on the east side. Some
areas had increases of more than 100 per-
cent, whereas the average increase for the
residential class as a whole reached only
35.5 percent. Strip commercial properties
also increased in value, some as much as
300 percent, although the average for the
commercial class was 21.2 percent.
Through a public consultation process,
various legislative options were introduced
to give municipal councils some choices to
help deal with their changing tax bases.
Some of these options were:
B
9
B
residential land value capping (limit to
average class increase plus 15 percent);
flat tax for residential class;
separate tax rates for residential land
and buildings; and
B residential commercial tax capping
(limit to previous years taxes plus
specified increase).
Tools for Change
In 1993, recent legislation has given
another option to municipal councils to
help maintain stability and certainty in the
taxation base, without compromising
equity for taxpayers. The legislation does
not eliminate either market value assess-
ments or the variable tax rate system, but
rather provides ways to enhance their
effectiveness. The most significant change
to the overall system is the option for
averaging or phasing of the taxable land
values.
This change addresses the basic premise
that, although market values are generally
accepted as a reasonable base for property
taxation, there is a need for the tax burden
to change more gradually within a prop-
erty class than would result from the
response to rapid changes in market
conditions.
Ideally, the assessments should be
produced as close to the time of tax billing
as possible to ensure an equitable distri-
bution of the tax burden. On the other
hand, municipal councils and taxpayers
need accurate assessment information well
in advance so that they can plan ahead.
Through the establishment of a different
A PR I I. 1993 B G O V E R N M E N T F I N A N C E R E V I E W 7
assessment cycle, the new legislation seeks
deadline for filing appeals has been
to balance these two objectives.
extended to January 31. These changes
Under the new assessment cycle. prop-
. . .
erty will be appraised on an annual basis,
rather than on the former biennial cycle,
with July 1st as the valuation date in the
year during which the assessment roll is
completed. The new cycle adds three
months to the interval between the valu-
ation date and the mailing of the
assessment notices to the property owners.
This change will allow sufficient time to
analyze the July market information to
produce accurate assessment values for the
notices, which will be sent out December
31. Thus, the quality of the assessments
will improve, and this, it is anticipated,
will reduce the number of tax paver
, .
appeals to the Court of Revision.
The dates for determining physical
conditions and roll completion likewise
have been moved forward to allow a two-
month period between the evaluation of
physical inventory and the mailing of the
notices, with the resulting expectation of
better quality assessmcnts.
The timing of the appeal process for
assessments has been changed. The Court
of Revision, which formerly sat during
November and December, now will not
begin sitting until February, and the
should result in a more accurate assess-
ment roll and, thus, reduce appeals.
Averaging or Phasing of Values
The 1993 legislation also introduces the
provision for averaging or phasing of land
values. Simply stated, averaging allows the
land value to be averaged over three years.
The tax
--
rate is imposed on the average of
the taxable land value in the current year
( 1993) and the two preceding years, plus
the taxable improvement value in the cur-
rent
-
year. This option provides a practical,
administratively straightforward way of
reducing property tax change within a
property class without providing unfair
advantage to taxpayers who have built or
rebuilt on their land within the averaging
period.
A typical Vancouver home would have
experienced LIp to a 48 percent reducticn
in property tax volatility if averaging and
annual assessment had been in place in the
volatile real estate markets of the late
1980s and early 1990s. The combined
effect of averaging and annual assessments
is illustrated in Exhibit 1 and contrasted
with propert
y
taxes payable under the
biennial assessment system.
The phasing option provides a similar
effect, but it is more focused on properties
within a class that have had larger-than-
average increases. The tax rate is imposed
on the taxable improvement value in the
current year plus the taxable land value in
the current year adjusted by a percentage
(between 50 and 66 percent) of the
difference between the value increase of an
individual piece of land and the percentage
increase in the value of all land included in
the same property class. This option helps
to stabilize property taxes by narrowing
the gap between the average change in
taxes and the change that would occur in
an individual piece of property had
phasing not been undertaken.
in specified property classesresidential,
light industry, commercial and
recreational/ non-profit organization
property. Both options are applicable to
the calculation ofall tax levies, not just
... -. -
municipal taxes, on a revenue-neutral
basis. In other words, municipal councils
have been given the authority to modify
the tax rates established by other taxing
authorities to take into account the
adjusted assessment base produced under
averaging or phasing in order to raise the
same amount of tax dollars as requisi-
tioned by those authorities.
Averaging or phasing requires municipal
councils to approve a municipal by-law by
March 31st. This by-law must set out the
terms and conditions for either option as
prescribed by legislation. It also must
include the appeal procedure to allow the
property owners to complain, firstly to the
collector and then to the municipalitys
local Court of Revision about any errors
made in applying the by-law to their
property. Provincial regulation outlines the
uniform practice for handling special
assessment conditions, such as a change in
zoning, use or density.
If a council intends to adopt an
averaging or phasing by-law, taxpayers
must be notified both before and concur-
rent with the billing of property taxes. The
newspaper advertisements are meant to
inform taxpayers on the estimated impact
that these options will have on property
taxes by using sample properties within
the municipality. The notice also must
outline the appeal process as set out in the
by-law.
8 Ar RII . 1993 B
Exhibit 2
CITY OF VANCOUVER ANALYSIS OF 1993 TAXATION OPTIONS
(PROJECTED MUNICIPAL TAXES ONLY)
ON MEDIAN RESIDENTIAL AND MEDIAN COMMERCIAL PROPERTY BY NEIGHBORHOOD
1993 Taxes,
1993 Taxable Value 1992 Taxes
t
1993 Taxes, Base
z
1993 Taxes, Average
3
Phased 50%
4
Med. Med. Med. Med. Med. Med. Med. Med. Med. Med.
Nei ghbor hood Res. Comm. Res. Comm. Res. Comm. Res. Comm. Res. Comm.
Arbutus/Mackenzie $497,600 $166,500 $1,295 $ 2,371 $1,338 $ 2,163 $1,252 $ 2,729 $1,335 $ 2,211
Fairview 191,300 712,000 522 10,204 514 9,247 496 9,465 514 9,457
Shaughnessy 797,900 1,082,300 2,014 10,746 2,145 14,057 1,955 14,174 2,101 14,376
Oakridge 542,000 1,023,000 1,425 13,478 1,457 13,288 1,343 12,908 1,389 13,526
Grandview 201,200 413,000 452 7,613 541 5,364 625 5,818 553 5,485
South Vancouver 254,400 597,000 656 8,767 684 7,754 672 7,998 699 7,930
Marine Drive 221,900 352,000 538 4,361 596 4,572 577 4,475 610 4,425
Renfrew 257,300 1,454,000 641 21,796
Killarney
692 18,885 685 18,238 708 18,824
301, 000 755, 000 772 7,506 810 9,806 770 8, 814 807 9,405
Fraserview 278,700 995, 000 700 12,630 749 12, 923 745 11,720 766 12, 383
Downtown 141,600 840,000 333 10,180 380 10,911 336 11,166 343 11,157
West End 159,700 1,609,000 430 19,653 429 20,898 433 21,388 439 21,372
Notes:
t
Actual 1992 taxes.
Projected 1993 taxes using present methodology of one tax rate applied 10 both land and improvements.
a Projected 1993 taxes using three-year averaging of land values, plus current improvement values.
4Projecled 1993 taxes using current land phasing (sheltering 50 percent of individual increases over the average increase of all land in class),
plus currenl improvement values.
Factors to Consider
Averaging and phasing are similar
techniques but differ in some respects, so
one will often be more appropriate than
the other in certain situations. Averaging
deals with three years, while phasing
considers only the current and immediately
preceding year. Also, phasing targets only
those properties within a class which have
land value increases in excess of the
average, while averaging is applied to all
properties within the class, irrespective of
;heir relationship to average changes.
Municipal councils will have to consider
other factors, as well, each year when
deciding to use one of these options. Some
of the major considerations are identified
below.
Current and Expected Future Change in
Property Values. If trends related to
disproportionate increases in areas or in a
particular range of property values are
observed or expected, will averaging be
useful to mitigate these effects? Will
phasing?
-
Definition of Fairness. Property
taxation policy has a direct impact on
children and families. Taxation polices
that are regressive will hit hardest those
that are the least well-off financially. In
the averaging/ phasing options, for each
property that saves taxes as a result of a
lower assessment, there will be corres-
ponding properties that are paying more
tax than they otherwise would in order
that the total revenue be consistent. Is this
fair?
Neighboring Municipalities. If a
neighboring municipality chooses the
averaging option, will there be some
political pressure for nearby municipalities
to also choose averaging?
Taxpayer Communication and Under-
standing. Is the reason for choosing
averaging/phasing clearly set out? Can the
resulting effects be adequately defended
and explained? Have all factors been con-
sidered, such as past comments/requests
from taxpayers, attitude of the local media
and degree of support on council?
Discontinuing the Use of Averaging/
Phasing. Will this decision be precedent
setting? Will taxpayers expect and even
plan for taxation changes next year based
on smoothed assessment increases once
such a system is implemented? How and
when can averaging/phasing be stopped
without sudden, large tax fluctuations?
Administrative Costs. Is the municipality
prepared to assume the additional
administrative costs that will be incurred if
it chooses to average/phase? Such costs
will include
B research to consider effects of averaging/
phasing,
B calculation of adjusted assessed values,
B modification of tax notices for
communication to taxpayers,
B procedures for handling errors and
appeals plus resulting taxpayer en-
quiries, and
B newspaper advertising.
All these factors will have to be
considered by municipal councils each year
when making the decision to use or not
use the averaging or phasing options.
Council members must carefully weigh the
consequences of adopting one of these
options. They must ask, Are the prob-
lems caused by the variation in assessment
change within a single property class
A PRI L 199. 3 . G OVERNMENT FI NANCE REVI EW 9
Exhibit 4
CITY OF VANCOUVER, BRITISH COLUMBIA
ANALYSIS OF 1993 TAXATION OPTIONS
COMMERCIAL (CLASS 6) MUNICIPAL TAXES ONLY
Number of Properties
I
Calculation Method
sufficiently serious to warrant using the
projected 1993 taxesmunicipal portion
option, given that its use will result in
more complicated assessment calculations,
higher administrative costs and modi-
fication of tax notices? There will be
debate in subsequent years over the
continued use of the options and there-
fore, the impact on individual taxpayers
must be considered.
Near the end of February, when this
article was prepared, there were 13 total
out of 150 municipalities in British
Columbia that had given notice to
consider the use of the new phasin
g
and
averaging options. Whether these options
are effective for these municipalities and
their particular assessment situations the
taxpayers will ultimately be the ones to
decide.
Vancouver: Analysis of Options
TO illustrate Vancouvers situation,
Exhibit 2 sets out the projected taxation
impacts in selected neighborhoods of the
city. Shown in the exhibit are the
onlyon the median residential and
commercial properties in those
r ,
neighborhoods for each of the three
options available this year: the present
system (base), three-year land value
averaging and current-year land value
phasing which shelters 50 percent of the
excess land value from taxation.
The citywide perspective to the taxation
distributions produced under each of the
taxation options is shown in Exhibits 3
and 4, where the resulting tax changes are
grouped in percentage intervals for
residential and commercial properties. The
tax changes are based on comparisons
with actual 1992 taxes. The 1993 taxation
distributions produced under the three tax-
calculation options available to Vancouver.
suggest that three-year averaging is the
best option for residential and commercial
properties this year.
On March 2, 1993, the Vancouver City
Council approved the use of three-year
land assessment averaging for residential
PENNY BRUIN, C. G, A., city treasurer and collector for,
Vancouver, Bri/ish Columbia, served during 1991-92
on the Prouinciol Technical Committee on Property
Tax Options. She is the President of tbe GFOA of
British Columbia, be GFOAS provincial representative
for B.C. ond a member of GFOA Committee on Cash
Management. Portions of this artic/e are adapted and
reprinted with permission from the Province of B.C.,
Ministry of Municipal Affairs, Recreation and
Housing,
1 0 A PRI L 1993 B G O V E R N M E N T F I N A N C E R E V I E W
May 28, 1993
Mr Chairman and Members,
The Ontario Fair Tax Commission,
Thank you for providing me with this opportunity to address you.
The Government is to be commended for initiating this very thorough
review of the system of taxation in Ontario and providing ample
opportunity for input from the public and interested parties.
I will be confining my remarks today to the system of Property
Assessment and Taxation since this is of primary concern to us as
a Municipality.
As you are no doubt aware Local Government (I include here School
Boards and Conservation Authorities as well as Local and Regional
Municipalities) have been experiencing very severe financial
pressure in recent years from taxpayers to reduce or at least
maintain the level of local taxation. This problem has been
compounded exponentially by the drastic reduction in Provincial
Grants as a result of the Expenditure Control Program and the
"Social contract
" initiative in 1993. Even prior to this the level
of Provincial support had declined very significantly--from 48% of
the total tax bill (including regional and education costs) in
Burlington in 1974 to 28% in 1992. In this environment your review
of the services funded from the property tax base as well as the
objective of enhancing the fairness of the allocation of the tax
burden is most relevant.
FUNDING OF EDUCATION AND SOCIAL SERVICES:
As you have noted in your Discussion Paper, the Property Tax
Working Group came to the conclusion that services having income
redistribution as a direct or indirect objective, or generating
spillover benefits beyond local boundaries, should be funded from
taxes based on ability to pay" and accordingly recommended that the
Province assume full funding for welfare services and "either
increase its share of education funding ---or re-evaluate the
number of mandated programs.
Burlington is fully supportive of this position. The Provincial
Government appears to have accepted, at least in principle, the
first part of the recommendation in its
"Disentanglement 11
negotiations with the Association of Municipalities of Ontario.
ASSESSMENT:
The existing Assessment System is based on market value (Assessment
Act, Sec 19) However there are wide variations on how this concept
is applied in different municipalities, as I am sure you are well
aware. Nevertheless, over 700 municipalities, representing more
than half the population of the Province, have adopted some form of
market value assessment, and the Association of Municipalities is
on record as supporting a move to full market value. The
professionals in the field with the Ministry Finance support
this. The one notable exception of course, is Metro Toronto, where
2
the Assessment system has become hopelessly out dated. The problems
they are experiencing in bringing their assessments up to date seem
to be having an undue influence on the completion of market value
reassessments in the rest of the Province.
The property tax is a tax on one form of capital or wealth.
Although there is not necessarily always a direct connection
between an individual or corporations wealth and income, it can be
taken as given, we believe, that ,in most cases, there is some
correlation between the two. Generally speaking wealthy individuals
and corporations do seem to enjoy more expensive homes and offices.
It seems to us therefore that there is some "rough justice
M
in
taxing property in relation to its market value, which value is
adjusted on a regular basis to reflect changes.
On the other hand, assessment simply on the basis of area or some
other measurement unit which takes no account of differences in
market value would seem inherently unfair---assessments will be
averaged
" across the municipality
---which means that lower priced
homes and commercial properties will go up and the more expensive
go down--ultimate regressivity. It is difficult to comprehend how
a system which places the same tax burden on a tarpaper shack
next to a railroad, to take an extreme example, as a luxurious
executive residence, can have merit. Of course
"unit value
proponents will argue that the unit values will take into account
differences in location, zoning and type of construction. Then we
are back to market value.
Certainly
"unit value" would be most inappropriate as long as the
property tax is used to fund education and social services. One of
the arguments used to support "unit value
M
is that municipal
services are directly related to physical size. This is only
marginally correct--we offer many services more closely related to
people (eg recreation and police as well as social and education
services) . Where feasible municipalities are increasingly
emphasizing fees for service or user pay, eg through
development charges and waste disposal fees, so that the functions
supported through the tax on property are even less closely tied to
the physical dimensions of the property today.
Burlington and all the other municipalities in the Region of Halton
have all individually adopted the modified form of market value
assessment by property class available under what was Sec 63 of the
Assessment Act.
What is lacking now is uniformity across the
Region. Properties with the same market value are paying
significantly different amounts for Regional and Education
Services; eg, approximately $ 150 on a home worth $ 200,000. A
recent impact study showed that Burlington taxpayers were paying
over $4 million more for the cost of School Board and Regional
services than they should.
Regional Council has approved the change to market value under Sec
63 for implementation for the 1994 fiscal year. At the same time a
Citizens Committee has been set up to advise on procedures for
implementation designed to mitigate hardship on individual
3
Burlington is particularly concerned about the impact on our
Downtown merchants and senior citizens of the very volatile changes
in market value from 1984 (when we were reassessed) to 1988 (the
market value year for the Regional reassessment) and again to 1993.
There have been very significant swings in real estate values in
that period, particularly in the Downtown and the more expensive
homes. Most properties
in the Downtown for example, enjoyed
reductions in assessment in 1984 but are subject to very large
increases on the basis of 1988 market values, due to a high volume
of speculative
buying in that year.These dramatic shifts are
contributing to a general concern with market value as a fair and
stable method of assessment.
Although some recognition is given to this through the use of
"sales in determining market values, we do not feel
this is adequate to eliminate the anomalies of the market. We are
asking the Government to consider some form of a moving average
of market value so
that it is closer to the norm and more
accurately reflects the true long-term trend. There is precedence
for the application of this concept as it has been used for some
time in the establishment of the equalization factors" included in
the present formulae for apportioning School and Regional tax
levies.
We are also aware that the Province of British Columbia has adopted
a system of averaging land value changes as part of its market
value system.
We believe that either an averaging approach or a "cap" on very
large tax increases should be considered and have recently
petitioned the Government to bring in legislation to this effect.
A copy of our brief is attached.
Until such measures are taken the
current system will continue to result in extreme changes and fail
to satisfy the criteria for a fair,stable, and predictable tax
system.
We recognize that existing legislation does permit phasing-in the
changes, but feel that the Assessment System itself should be
amended to limit the adverse consequences of very large
fluctuations in value.
FARM ASSESSMENTS:
A significant weakness in the present Assessment System lies in the
inability to distinguish clearly between bona fide farming and
"hobby" farms or land held by speculators where token activity such
as once-per-year ploughing results in a very low farm assessment.
Municipalities are
out of pocket for millions
of dollars as a
result. Burlington tried unsuccessfully through the appeal process
to have these inappropriate assessments corrected but were totally
frustrated by the lack of any clear definition of what constitutes
farming. When an appeal is launched the property owner can,
immediately initiate minor activity such as ploughing, tree
trimming, or crop planting which will result in defeat of the
appeal.
The absence of clear definition also results in the incorrect
payment of property tax rebates and the loss of income tax revenue,
4
as "hobby farmers
are restricted in the deduction of farm losses
from other income.
Surely it should not be too difficult to legislate objective
measures of bona fide farming based on realistic minimums of
production, cash revenue, or net income which have to be reported
on income tax returns. The current revenue level of $7000 for
eligibility for the property tax rebate is ridiculously low and has
not been changed for years.
SENIOR CITIZENS:
Many of the older members of our community who are dependent on
minimal fixed incomes are faced with the dilemma of escalating
taxes, particularly following reassessment, on the homes which they
have lived in for many years and are reluctant to leave. The
property may now be worth a considerable sum but this is of no
tangible benefit since the cash value can only be realized through
sale.
The Province of British Columbia has addressed this problem by
permitting deferral of the property tax by seniors until disposal
by sale, transfer, or succession. The taxes are paid to the
municipality by the Province thus avoiding problems of local
financing of the debt. Interest accrues on the loan balance.
Our population is ageing and it is most appropriate we feel for
governments to assist seniors in their declining years, and enable
them to continue to enjoy the life style to which they have become
accustomed in their own community environment.
There are income tax credits tied to occupancy cost available to
seniors but this is limited in combination with the sales tax
credit to $1000 and there is a deduction of 4% of household income.
Municipalities may also provide property tax credits but these
generally are less than $ 500 due to their limited financial
resources and the other demands for the tax dollar.
We would urge you to give consideration to this problem in your
report and perhaps recommend to the government implementation of a
system similar to that of B.C.
CONCLUSION:
Thank you for this opportunity to express our concerns to you. We
feel that the present system of property taxation is basically
sound but has become seriously overloaded by undue reliance on this
form of taxation to support education and social services. We
support market value as the basis for determining taxable
assessment since it reflects in some measure the differences in
wealth of individuals and corporations and provides for regular and
systematic adjustment for changes in economic value. However we
feel strongly that consideration must be given to dampening the
adverse effect of temporary fluctuations in value resulting from
the business cycle, through techniques for averaging and possible
capping of extreme tax increases. In addition the opportunity
should be afforded to senior citizens living on reduced incomes to
continue living in the home they have established, through a
provincially financed and administered system of property tax
5
deferral. We also urge you to recommend objective criteria to
distinguish between bona fide farmers and others who are taking
advantage of the loopholes in current legislation. Thank you for
your attention.
WALTER MULKEWICH, MAYOR
CITY OF BURLINGTON.
city Ha//:
426 Brant Street, Burlington, Ontario, Canada
Mailing Address:
P.O. Box 5013, Burlington, Ontario, Canada L7R 3Z6
Telephone: (905) 335-7606
July 5, 1995
Mr. Cam Jackson, MPP
REGIONAL PROPERTY TAX ASSESSMENT
FILE: 420-01
MAYORS OFFICE
CITY OF BURLINGTON
REGIONAL PROPERTY TAX REASSESSMENT
INFORMATION SUMMARY, JULY, 1995
B
Market Value Assessment (MVA) has been implemented in all four Halton
municipalities for some time now. Each of the four area municipalities are
assessed on different base years as follows:
Burlington 1984
Halton Hills 1980
Milton 1975
Oakville 1984.
B
To keep assessments current and to avoid the kind of problems we see in Metro,
all four area municipalities should have assessments updated.
B
Approximately 70% of the property tax bill pays for services delivered on a
Regional basis (Region and Education). It only makes sense that a property of
equal value anywhere in the Region pays the same amount for the same services
delivered by the same Regional agencies.
B
On September 23, 1992, Regional Council approved the implementation of a
Region-wide Assessment based on market values in 1988 and to be effective
January 1, 1993. The recorded vote was a tie with the Regional Chair breaking
the tie in favour.
B
The Province had completed the Region-wide Assessment in 1992 based on 1988
values at a cost of $1.2 million to the Province. The results are available to the
Public and are being used by the Public.
-2-
B
The City of Burlington supported the Region-wide Section 63 Reassessment with
the direction that Burlingtons Director of Finance prepare a phase-in program to
ameliorate the impacts of major tax shifts resulting from the re-assessment.
B
Burlington City Council also directed that the Mayor and the Co-Chairmen of
the Community and Corporate Services Committee meet with the Minister of
Revenue to request that the Provincial Government consider, as quickly as
possible, amendments to the Assessment Act to modify the impact of Market
Value Assessment updates resulting from the extremes of uneven market value
changes through a system of caps on assessment or by using a rolling average of
current and previous assessments. Council also directed that the City ask the
Province to implement a tax deferral program for Seniors. Both these concepts
were supported by Regional Council.
B
The Citys position with respect to amending the Assessment Act to use a system
of caps or rolling averages as well as the Seniors tax deferral program has been
communicated to the Province in letters, a meeting, and a brief to the Fair Tax
Commission. To-date, there has been no favorable response.
B
On December 2, 1992, Regional Council deferred (through a reconsideration
motion), the Region-wide Assessment to January 1, 1994, to allow for the work
of a Citizens Committee.
B
The Citizens Committee on Property Tax Reform in Halton released its Final
Report on September 1, 1993, and recommended that Council not proceed with
Regional-wide Assessment based on 1988 values and recommended that the
Province use Halton as a pilot to undertake a full Unit Value Assessment (UVA)
Tax Impact Study.
B
The Province has to-date not agreed to a full UVA study and the
recommendations of the Fair Tax Commission are on a shelf.
-3-
B
On September 30, 1993, Regional Council agreed unanimouslv on a
compromise as follows:
A Region-wide Assessment based on 1992 market values, for implementation
on January 1, 1996;
In the interim (for 1994 and 1995), the Regional and Educational appointment
formula to be changed;
All of the above subject to written Provincial agreement. (This compromise
allowed all taxpayers in the Region to survive the recession and to have
assessments based on 1992 values rather than 1988 which represented an abnomal
spiral in real estate values. As confidence in the economy returns, the
1992 values should allow for a fairer base for re-assessment. Still there will
impacts and shifts in all tax classes in all municipalities. These impacts would
also be there with any form of re-assessment.)
B
In October, 1993, both Boards of Education endorsed the compromise.
B
On November 17, 1993, Regional Council gives final approval to the compromise
based on letters received from the Ministers of Finance and Education.
B
Since January 1994, Ministry of Finance Staff have been working in the
Region-wide Assessment based on 1992 market values at an estimated cost of $2.6
million and with Provincial Staff of 40 people who otherwise would have been
doing work in other Regions. (These figures are on top of the 1992 Assessment
costs of $1.2 million using 1988 market values.) In addition, the Region of
Haltons contract with the Province involved a Regional cost of at least
$140,000 for facilities and equipment.
A total of at least $4 million in taxpayers
money has been spent to get us this far.
B
The Province is on schedule with the Region-wide Assessment. Impact analysis
will be available in August and public open houses in the fall will make available
to the public the assessments based on 1992 values. Implementation is due for
January 1, 1996.
- 4 -
B
The only way the Regional commitment to this Reigon-wide Assessment can be
overturned is with three-quarters vote (18 out of 24 Councillors) with the support
of at least one Regional Councillor from of the four area municipalities.
The Province has a contract with the Region and has spent most of the money
required for the Assessment. Therefore, unilaterally deferring implementation
does not make common sense and likely means breaking a contract.
B
Any UVA study or study of any other alternatives such as the City of Burlington
proposals regarding amending the current Assessment Act could not be
accomplished between now and January 1, 1996.
B
At the present time, the 1988 market values done by the Province for Halton in
its first Region-wide Assessment are public. The City of Burlington has
experienced a dramatic increase in assessment appeals (some with the assistance
of a company of tax agents) based on access to the 1988 figures and the argument
that the properties are over-assessed. The City faces the possibility of a major
erosion of its assessment base through appeals and the Provincial Assessment
system faces the possibility of being swamped with appeals resulting in a major
cost for the Province. The new 1992 figures will be available in this fall
increasing the probability of more appeals if somehow the Region-wide
Assessment did not go ahead. Major chaos, increased expenditure, and erosion
of the Citys tax base would occur and the Province would throw away
approximately $4 million if it somehow found a way to unilaterally break the
contract with the Region. At the same time, inequities within each municipality
and within the Region would remain.
B
The City of Burlington is on record supporting a Region-wide Assessment as well
as examining ways to make the present market value system fairer. In Halton,
this means the completion of the implementation process in place for
January 1, 1996, as well as studying alternatives or reforms for the future.
The Corporation
RESOLUTION
of the City of Burlington
Moved by:
Seconded by:
WHEREAS,
1.
2.
3.
4.
5.
6.
7.
8.
9.
Halton Regional Council originally asked the Province to implement Region-Wide
Assessment based on 1988 market values in 1992,
The City of Burlington Council supported that Region-Wide Assessment,
After extensive consultation and debate, the 1992 decision was replaced in 1993
with a compromise decision of which the key was a January 1, 1996 Region-
Wide Assessment based on 1992 values,
The decision was unanimous with all members of Regional Council from all
municipalities agreeing,
The, Province of Ontario agreed to do a second reassessment based on 1992
values to accommodate that compromise,
The reassessment has been completed at great cost and is ready to be released in
a months time.
The public availability of 1988 market values has increased assessment appeals
leading to an erosion of local, Regional and education assessment base.
The availability of 1992 market value figures will increase the number of appeals
and the erosion of the assessment base.
The City of Burlington has supported a reform of existing assessment legislation
to incorporate some form of caps or rolling averages to even out the shifts
resulting from reassessments
THEREFORE, be it resolved that:
1. The City of Burlington does not support the Town of Oakville resolution
requesting a moratorium on the implementation of any Region/County/Municipal
Reassessments ... ,
Date
Carried
Moved by: Seconded by:
2. The City of Burlington requests the Province of Ontario to complete the
implementation of Region-Wide Assessment in Halton based on 1992 market
values effective January 1, 1996, and that the public implementation schedule be
continued in the fall of 1995 as scheduled,
3. The Region of Halton be requested to resist any attempt to reconsider its former
unanimous commitment to implement Region-Wide Assessment effective January
1, 1996,
4. The City of Burlington re-affirms its support for reform of existing assessment
legislation to incorporate some form of caps or rolling averages to even out the
shifts resulting from reassessments, but that such reform not stop approved and
substantially completed reassessment in Halton.
5. This resolution be circulated to the Premier of Ontario, Minister of Finance,
Minister of Municipal Affairs, Minister of Education, the four Halton Region
M. L. A.s, the two Halton School Boards, the Region of Halton, the Town of
Oakville, the Town of Halton Hills, the Town of Milton, Ontario municipalities
with a population over 50,000, and the Ontario Association of Municipalities.
Date
Carried
October 3, 1995
Dr. Anne Golden,
Greater Toronto Area Task Force,
393 University Avenue,
20th Floor,
Toronto, Ontario
M5G 1 E6
Dear Dr. Golden:
Subject:
Changes in Legislation
GTA Area
Recently, your Task Force asked for a list of legislative changes that if made,
could make it easier for Burlington to provide service to our citizens. Attached is
a list of proposed changes to legislation. These types of changes are consistent
with Recommendation #8 in Burlingtons brief to your Commission submitted
Friday, September 29, 1995.
Yours very truly,
Douglas C.\ Brown,
Acting City Manager
TLD:jc
Attl
APPENDIX A
PROVINCIAL/MUNICIPAL STREAMLINING OPPORTUNITIES
1. Approval of Bridge and Culvert Structural Desires:
Design drawings for bridge and culvert structures with a span in excess of two metres
currently require the seal of two professional engineers.
Apparently the reason for this
is to ensure that there is adequate peer review of these designs. In addition, approval is
required from the MTO Structural Design Office, which typically takes some 6 to 10
weeks to obtain.
It is recommended that the requirement for the seal of two professional engineers and for
the approval by the MTO Structural Design Office be eliminated. The Province should
simply establish standards, and rely on the municipalities to adhere to them.
2. Municipal Elections Act:
Their are a number of problems with The Municipal Elections Act, and how it is
administered by the Province with the municipalities, namely:
*
the Act constrains the actions of municipalities in a number of areas, including
the way in which amendments are made to the voters list and the requirement to
have two mandatory advance polls, to name a few;
*
legislative changes have been made to the Act at the last minute, well past the
enumeration period, which creates additional work for municipalities that has to
be completed within very tight timeframes;
*
changes have been made to forms related to the Act without consulting
municipalities or voters, resulting in misunderstandings and ineffective use of the
forms;
*
changes requested by Municipalities, either through the AMCTO or by direct
discussion with local MMA officials, have been ignored;
*
the directions for setting nomination day, election day, and polling day are not
precise enough.
It is recommended that the MMA consult with the AMCTO in order to develop a revised
Municipal Elections Act, to resolve the concerns of municipalities.
- 2 -
APPENDIX A
PROVINCIAL/MUNICIPAL STREAMLINING OPPORTUNITIES
3. Other Acts:
Other Acts, including The Vital Statistics Act, The Line Fences Act, and The Livestock
and Poultrv Protection Act sometimes prevent municipalities from making reasonable
decisions which may solve problems. In these cases, municipalities are just servants
of the Province, delivering Provincial services by proxy and at the expense of the
municipality, with no apparent input to how the legislation serves the public.
It is recommended that the Province amend these Acts and provide more discretionary
powers in to municipalities.
4. Niagara Escarpment Commission Development Control:
It is recommended that NEC development control be transferred from the Province to the
municipalities. This would reduce duplication, streamline the development approval
process, and put authority for decision-making for development at the local level, rather
than at a distant Provincial office.
5. Ministry of the Environment Clearances:
Presently, proponents are required to obtain noise attenuation and servicing approvals
from the MOE. To avoid duplication, to streamline the process, and to put authority for
local development at the local level, it is recommended that MOE clearances on noise
and other matters be transferred from the Province to the municipalities.
6. MTO Corridor Control:
Provincial control and access over lands adjacent to Provincial highways impinges on
municipalities ability to plan and design development along these highways, and it
restricts local decision-making authority. It is recommended that the MTO relinquish
corridor control over urban lands adjacent to Provincial highways, excluding 400 series
highways.
- 3 -
APPENDIX A
PROVINCIAL/MUNICIPAL STREAMLINING OPPORTUNITIES
7. Non Profit Housing:
The design and construction standards set for non profit housing are very high, adding
greatly to the capital cost of these projects and limiting municipalities ability to meet
local needs. It is recommended that the Ministry of Housing requirements for non profit
housing be lowered.
8. Parkwav Belt Regulation Control:
It is recommended that the Province not be involved in Parkway Belt regulation controls,
and that jurisdiction revert to the municipal level.
This would reduce duplication,
streamline the development approval process, and put authority for decision-making for
development at the local level, rather than at a distant Provincial office.
9. Official Plan Approval System:
To reduce duplication and to put the authority for decision-making at the local level, it
is recommended that the MMA, or its delegate, not be involved in the Official Plan
approval system, in highly organized parts of the Province.
10. Provincial Verification Audits:
The need for field auditors from various Provincial ministries to audit how grants are
handled by municipalities should be eliminated. The Province should accept the position
of municipal auditors confirming appropriate entitlements and use of funds within the
broad range of accounting materiality, without the expensive overhead of verification
audits. In addition, field audits will become less and less appropriate as Provincial
conditional grants decline.
It is recommended that Provincial field audits for municipal grants be discontinued.
- 4 -
APPENDIX A
PROVINCIAL/MUNICIPAL STREAMLINING OPPORTUNITIES
11. Desire Criteria for Capital Proiects:
The MTO demand that a design criteria form be filled out and submitted to them for
municipal capital projects. This is a time consuming exercise that should not be
required.
It is recommended that the Province discontinue the practice of requiring municipalities
to complete design criteria forms.
12. Traffic Signal Desire Approval:
Pursuant to section 144(31) of The Highwav Traffic Act, the Ministry of Transportation
approves detailed design of traffic signal installations before detailed design can occur.
Municipalities are required to make application to the MTO for each specific installation
for both subsidy and what is called legal approval. Detailed design drawings are
required to be submitted with the application. The preparation of the submissions and
subsequent review by the ministry is very costly and time consuming process.
Section 144(31) of The Highwav Traffic Act is broad enough to permit the MTO to give
blanket approval to all installations that meet Ministry standards. The MTO already
publishes criteria and warrants for signal installations, and it would be a simple matter
to issue blanket approvals for all installations that conform to those standards.
It is recommended that the Province Section 144 be amended to specifically accommodate
a blanket approval system.
13. Roads Inventorv Maintenance System:
The MTO consumes municipal staff time, about four days each year for the City of
Burlington, touring municipal roads to assemble road inventory in their specialized
format for their Roads Inventory Maintenance System (RIMS). Since the City of
Burlington has a far more sophisticated infrastructure management system then the
RIMS, we are receiving no value from the MTO for assisting them with their update.
It is recommended that the MTO develop find alternative ways of updating the Provincial
RIMS that eliminates the need for municipal staff involvement. municipal staff.
- 5 -
APPENDIX A
PROVINCIAL/MUNICIPAL STREAMLINING OPPORTUNITIES
14. MTO Paper Work:
The overall amount of municipal staff time that is required to deal with MTO paperwork
is inordinate, unnecessary, and redundant for municipal use.
It is recommended that the MTO review its administrative practices with a view to
minimizing the demands placed on municipalities.
15. Municipal Storm Sewer Desire:
Approval is required from the MOE for the design of municipal storm sewers. For two
tier municipalities, Regional review of storm sewer design is also required, as well. It
is recommended that the Province streamline the two-level storm sewer approval system.
16. Provincial Interest Arbitrators:
Provincial interest arbitrators make awards with little regard to the wage increases
provided to other municipal employees and, with little regard to the cost of the settlement
they award. The ability of the employer to pay does not enter into the decision, since
most interest arbitration boards, by virtue of past history, appear to deal with wage
disputes on a Provincial comparator basis.
It is recommended that interest arbitration, or third party decision-making process which
affects the payroll costs of a municipalities, be reviewed and changed in light of the
municipal concerns with the process.
17. Public Libraries Act:
It is recommended that the prescribed classes of circulating materials from Ontario
Regulation 976 be deleted. This would allow library boards the option of charging such
fees as they consider proper for various types of materials that are circulated to the
public. Regulation 976 is a clear case of encroachment by the Province in a municipal
jurisdiction, and merely represents an alternative view on a local public policy issue.
- 6 -
APPENDIX A
PROVINCIAL/MUNICIPAL STREAMLINING OPPORTUNITIES
18. Provincial Compliance with Local Development Regulations:
It is recommended that the Province voluntarily comply with local development
regulations and fee regimes. For example, voluntary compliance with development and
building regulations is frequently a controversial issue with Provincial projects and often
requires a significant amount of staff time to sort out.
It is suggested that the Province
should agree to this as a matter of good public policy, even if it will not agree to pay
municipal fees.
19. Vital Statistics:
Lower tier municipalities gather a significant amount of information, generally known
as vital statistics, for the Province. This is quite costly in terms of the provision of staff
and facilities to carry out this function, and the bulk of the fees collected go to the
Province.
It is recommended that the Province consider developing a fee regime that would allow
municipalities to receive a sufficient share of the revenues generated by these activities,
to cover the cost of providing the service.
20. MOE, MNR. and Conservation Authoritv Responsibilities:
Significant duplication of effort exists between the MOEE, MNR, and Conversation
authorities. The Province should concentrate on the strategic planning aspects of
resources management including: legislation, regulations, policy, research, and provincial
scale planning and information dissemination. Local planning issues and conformance
review should be brought down to the local level where detailed local knowledge exists
and ultimate long-term ownership responsibility resides.
Although considerable progress has been made in removing the MNR from day-to-day
planning administration, it is recommended that the Province consider having the MNR
concentrate on the strategic planning aspects of resources management including:
legislation, regulations, policy, research, and provincial scale planning and information
dissemination, and leaving day-to-day planning administration to the local level, including
the municipalities and the local Conservation Authorities.
Greater Toronto
Area Governance
Facilitated by:
Lifetime Consulting Services
Prepared for:
Burlington City Council
September 25, 1995
B
Greater Toronto Area Governance
City of Burlington Councils Position on GTA Reform
This brief to the Province of Ontario and the GTA Task Force has been prepared
by City of Burlington Council.
The brief was developed with the assistance of a
professional facilitator working with Council through individual interviews, a
special half day meeting of the Committee of the Whole and final review by the
Community & Corporate Services Committee and Council.
City of Burlington Council has developed and adopted the following 5 principles
for reform.
Principle 1:
Principle 2:
Principle 3:
Principle 4:
Principle 5:
The City of Burlingtons unique geographic position, identity and
qualities should be preserved. The City must maintain relation-
ships not only east to the GTA, but also west to the Hamilton
Niagara Area.
The City of Burlington must be able to continue to attract invest-
ments and jobs. Burlington should maintain a relationship with the
economic areas of the GTA and Hamilton Niagara Area.
There should be hands-on influence by local government over the
use of property tax money for local benefits. There should be no
increase in property taxes as a result of any government restructuring.
There should be fewer levels of governance. Government should
be simpler, more accountable, and more locally accessible so that
local government is better able to influence outcomes.
Non-institutionalized partnerships should be built only to achieve
mutual benefits and be disbanded when the goals are achieved.
Greater Toronto Area Governance
City of Burlington Councils Position on GTA Reform
Main Messages from Burlington City Council
The Unique Bridge Position of Burlington between
the G eate
r r Toronto Area and the Hamilton Niagara Area
Burlington is on the western edge of an area defined by the Provincial Govern-
ment as Greater Toronto Area (GTA), an area that works as an economic area.
Burlington is also on the edge of another important economic area to the west. In
essence, to be successful in the future, Burlington must bridge both ways, to the
east and to the west.
The people of Burlington benefit from being located as a bridge between the GTA
and the Hamilton Niagara Area. They have both the benefits of being a part of
Burlington, a developing community, and of being in the middle of the Golden
Horseshoe. They pay to use facilities in Toronto - universities, cultural centres,
entertainment facilities - as they do in Hamilton and elsewhere. Burlington resi-
dents are willing to pay user fees to support the facilities in nearby centres but
expect their property taxes money to support services in their own community.
Burlington would contribute political and staff resources as part of coordinating
committees. Burlingtons objectives for participating in such committees are:
(i) to achieve the benefit of being part of the GTA and the Hamilton
Niagara Area; and
(ii) to protect Burlingtons unique identity.
Members of Council would participate in coordinating activities and Burlington
staff would contribute to committees and provide information and analysis where
appropriate. Burlington wants to utilize existing political and staff resources
rather than create any other levels of government or other bodies with decision-
making powers.
Greater Toronto Area Governance
City of Burlington Councils Position on GTA Reform
Burlingtons unique bridge position linking the GTA and Hamilton Niagara Area
has implications for its role. The purpose of this position paper is to define Burl-
ingtons role in any new structure.
Recommendation #1
Should the Province of Ontario consider a formal political tie for the
City of Burlington with either the GTA or any other political area,
Burlington City Council requests the right to make that decision.
Burlington s Role Relative to the GTA
Members of Council believe that Burlingtons role as the local level of govern-
ment in governance should be strengthened. As the government closest to the
people, Burlington Council can provide services with the greatest accountability
to the electorate.
Recommendation #2
Burlington City Council should be responsible for all municipal
planning, all roads within the municipality except provincial high-
ways, and community-based economic and business development.
These are local issues, not regional issues.
Recommendation #3
Burlington City Council requests Legislative changes to allow for the
creation or elimination of special purpose bodies at the sole discre-
tion of the Burlington Council. Special purpose bodies include the
Burlington Hydro Commission and the Burlington Library Board.
- 2 -
Greater Toronto Area Governance
City of Burlington Councils Position on GTA Reform
The Role of the Regional
.
Municipality of Halton
Members of Burlington Council see the need for change of governance in Halton
Region.
Recommendation #4
The Halton Region should be a non-taxing utility governed by a
coalition of funding partners providing waste management, water
and sewers, police and other services as needed to Burlington and
other participating municipalities.
The Role of the G eate r r Toronto Area
Burlington Council wishes to explore the benefits of being associated with the GTA.
Recommendation #5
The GTA agenda should be managed by an informal association of
participating municipalities with a well-defined relationship with the
Province of Ontario.
Recommendation #6
The GTA should have a forum for major issues and activities such as
intended urban structure, large-scale infrastructure planning, environ-
ment enhancement and protection and economic development that
benefit all participating municipalities. The area to the west of
Burlington should also have a forum for the same. Here, forum is
taken to mean formal association of municipalities and not a decision-
making and/or taxing government body.
- 3 -
Greater Toronto Area Governance
City of Burlington Councils Position on GTA Reform
The Role of the Provincial Government
Members of Council believe that the provincial government can facilitate the
operation of local governments by reducing and eliminating interference in local
matters while taking on full responsibility for truly provincial issues.
Recommendation #7
The Province of Ontario should be fully responsible for the funding
and provision of health and social services in co-operation with com-
munity-based organizations through local offices.
Recommendation #8
The Province of Ontario should wherever possible eliminate interfer-
ence in local government by allowing permissive legislation under a
new Municipal Act. The Province should make changes to legisla-
tion which would eliminate the Provincial role in areas such as
bridge, sewer and traffic signal designs, numerous development
controls, local planning issues and municipal election procedures.
The Province should be prepared to act on recommendations from
local municipalities on a wide ranging list of these issues.
Recommendation #9
Until a better system is adopted by the Province, the City of Burling-
ton supports the continued implementation of region-wide market
value assessment and does not support the pooling of business assess-
ment in any economic area.
- 4 -
Greater Toronto Area Governance
City of Burlington Councils Position on GTA Reform
Recommendation #10
The City of Burlington requests that the implementation of provincial
planning policies be done through the municipal planning programs,
and that, specifically in Burlington, the City be the lead planning
agency, and that the Niagara Escarpment Commission Plan, the
Parkway Belt Plan and the policies of the Halton Region Conserva-
tion Authority all be administered by means of the City of Burlington
Official Plan, zoning by-laws and other planning implementation
instruments.
Recommendation #11
Burlington City Council encourages the Province of Ontario and the
GTA Task Force to broaden its perspective in the current GTA
Review taking into consideration wider economic areas including the
Hamilton Niagara Area.
- 5 -
APPENDIX
Attendees
Special Council Meeting
GTA Governance
September 9, 1995
COUNCIL MEMBERS: Mayor Mulkewich
Alderman Brechin
Alderman Bullock
Alderman Carr
Alderman Carter
Alderman DAmelio
Alderman Dennison
Alderman Lee
Alderman Lougheed
Alderman Quinn
Alderman Taylor
Alderman Trueman
Alderman Wallace
Alderman Wood
CITY OF BURLINGTON Mr. T. Debbie
STAFF: Mr. G. Goodman
Mr. R. Lathan
Linda Bowles-Simpson
SPECIAL GUEST: Mr. T. McCormack (Member of the Golden Task
Force on the GTA).
ABSENT: Alderman Edwards
Alderman MacIsaac
Alderman Scholtens
r - n u l i c I i o . .
f bd ( 4Yc !
Nou.13B 1995 10:51am P02
VIA FAX AND MAIL
Abby Bushby
Barroster & Solicitor
16 Radford Avenue
Toronto, Ontario
M6R 1Z6
Direct line and fax:
(416) 762-7492
November 7, 1995
John Barber
The Globe and Mail
444 Front Street West
Toronto, Ontario
M5V 2S9
Dear Sir:
I read yOUr column of October 24, 1995, B.C. example makes MVA more
palatable, with great interest and concern. It appears that the evolving discourse about
property tax assessment is ignoring important environmental economic issues associated
with reconcentration and decentralization of the city. How we treat density is at the core
of these issues. (That being said, I do not contend that reconcentration and
decentralization of the city are caused only by property tax assessment and the
provincial/municipal fiscal transfer system. Jane Jacobs better articulates the processes
in The Death and Life of Great American Cities. ) The role of fiscal policy must, however,
be recognlzed.
It appears that the Golden Commission maybe reducing the purposes of unit value
assessment to avoidance of volatility and removal of speculative value. This treatment
reflects a reductionist approach and limits consideration of the alternatives to market
value assessment, The economics of environmental impacts merit a stronger inquiry.
The question of how land use and property taxation/governmental grants interacts
has been on the wrong footing ever since the Fair Tax Commission stated, without much
impact on its own recommendations, that tax policy should not be used to advance land
use policy. It is much more sensible and revealing to ask: what are the impacts of
taxation and fiscal transfer policy on land use planning ? and then: are the effects
reasonably consistent with a desirable policy outcome? When the question is posed
this way, outcomes can be monitored to assess whether they impede, advance or remain
neutral. Furthermore, a rigour akin to environmental impact analyses or fiscal Impact
analyses can be applied.
Decentralization of the city core will still occur with a common, regional market
value assessment. Is the Golden Commission really prepared to continue a taxation
system which taxes higher density and rewards lower densities, despite fairly reliable
NOU 08 95 09: 19
7 6 2 7 4 9 2 P9 GE . 0 0 2
PHONE No. : 762 7492
Nov.D8 1995 10:52.AM PD3
2
studies which indicate that urban sprawl is costlier to develop and service; is more
ecologically harmful in energy use and loss of green space/farmland; and, has negative
impacts on the quality of Iiveable urban life in terms of diversity V. homogeneity,
pedestrian orientation v. auto dependency, or public v. private cultural activities
The effects are exacerbated in the fiscal transfer system. Density translated into
property assessment is also the proxy to indicate need in many provincial grants. Low
density communities with correspondingly low tax bases receive subsidies regardless of
ability to pay. These systems were set up when development was concentrated in
Toronto. If density ever did indicate ability to pay, It Is a poorer system compared to the
more refined tool known as the income tax system. One can value the Canadian trait of
equalization payments if the richer areas really are richer and if the impact of extracting
revenue for equalization is much more neutral.
If the Golden Commission recommends a market value based taxation and fiscal
transfer system how will their expressed intention to prevent a carving out of the city core
take place? Wiil the citys resources be taxed out and then returned to some degree with
various politically vulnerable and ineffectual welfare programs? This scenario is wholly
counter to any notion of sustainable development. it is more simillar to overfishing the
Grand Banks and then putting Newfoundland fishermen on welfare.
I enclose for your information a copy of a brief I prepared for the Golden
Commission on behalf of and in consultation with the Ward 2 Parents Council, a Toronto
Board of Education Iocal advisory group. (The first six pages are the text. The rest
contains highlights of more extensive research in the area, ) It voices the fears of people
who love the city.
Some environmental impacts associated with reconcentration and decentralization
may only be clearly discernible when the urban region as a whole is considered, (see
references to New Jerseys 1992 Fiscal impact study ofa regional/wrrj use p/an and the
Bank of Americas statement Beyond Sprawl.
One would hope that the Golden
Commission would seize this rare opportunity to consider the costs of sprawl in our urban
region.
I noted the striking juxtaposition of your column next to Matas article,
Environmental Protection a priority for Canadians In which he notes that investment In
public transit and redesigning cities is low in Canadian priorities. His one thing If a widely
dispersed geographic base of polled Canadians do not yet see the design of cities as an
issue of sustainable development, quite another if the collective expertise In the Golden
commission fails to address the implications of ignoring the Interdependence of land use
policy and fiscal policy.
Yours truly,
NOV 08 95 09 : 20
RIDING OFFICE
TORONTO, ONTARIO
H OU SE OF COMMON S
TEL,: (41 6) 654-8048
CH A MB RE DES COMMU N ES
R E C E ! V E D
I
FAX (416)654-5083
Ottawa, August 18, 1995
Dr Anne Golden
Chair
Greater Toronto Area Task Force
393 University Avenue 20th floor -2001
TORONTO ON M5G 1E6
Dear Dr Golden,
Thank you for your fax a couple of weeks ago indicating that September 30 is the
deadline for submissions on the future of the GTA. Although I am not equipped to present the
Task Force with a comprehensive submission, I would like to offer some recommendations.
They stem from an environmentally sustainable development perspective. As you may know,
the debate on sustainable development has produced, so far, two schools of thought: one believes
in balancing the Environment and the Economy, thus disconnecting the two and giving
precedence to economic development. The other, rooted in Madam Bruntlands report entitled
Our Common Future, aims at integrating social, economic and environmental goals. I
recommend the Task Force consider taking this approach.
Let me explain why. In planning for the decade ahead, the public would be better served
by a type of economic development which recognizes the vital importance of social, cultural and
environmental goals. These are quality of life values, if you like, which are difficult to quantify.
A good example can be found on page two of the report under the heading what the GTA has
to offer, where, listed among other items, are low crime rates, a world class health system, and
the recognition that Canada offers the highest quality of life in the industrialized world (U. N.
Human Development Report, 1995). This achievement is possible because, in recent decades,
we had good social policies in Canada. It follows that, if we want to attract new investment and
keep our advantage in the GTA, environmental and other policies must be of key importance
because they form the underpinnings of quality of life. It would be a serious mistake for the
Task Force to be diverted by the current, rather strong belief that economic reasons alone can
attract investment. Consequently, the desirability of integrating economic with other goals in
the GTA plan.
Chair -S tanding Committee on Environment and S u.stainable Development
Parliamentary Centre for Environmentally S ustainable Development
TELEX 63636 CNCPSAS CA COMI 125
Against this background, I would make the following recommendations for
consideration and that of the Task Force. That
1.
2.
3.
4.
5.
the organizational structure in the office of the GTA be expanded to include a
Standing Committee responsible for dealing with social and quality of life policies.
new Committee would also report to the Steering Committee like the other four;
your
fifth
This
similarly, the goals of the GTA Economic Development Partnership be expanded from
four to five, and the fifth goal should read to identify social and quality of life issues;
partnerships with other sectors be expanded to include organized labour, educational
institutions, social planning councils, quality of life agencies, and the arts and
entertainment community;
objectives number 1, 2 and 3 include
B
quality of health
B
quality of recreation
B
quality of air, water and soil
B
quality of social services, of safety in the community and of educational facilities;
incidentally, the Task Force may also want to include other qualities such as the
quality of public transportation within the GTA, quality of recreation, quality of
education, quality of art-related activities;
under target sectors, the arts and entertainment be added because this sector is of
growing economic importance in the GTA.
In summary, an essential element would be missing in the proposed Business Plan if
quality of life values and goals were not included. This point was made by Mayor Hall at the
public meeting held at City Hall on January 20, 1995.
I do not know whether these recommendations are helpful in the present climate of
opinion. But I hope they are. I invite your comments.
With best wishes and kind regards,
Sincerely,
C.C. Mayor Barbara Hall
CALEDON - A UNIQUE COMMUNITY
OF THE
September 29, 1995
Dr. Anne Golden, Chair
Greater Toronto Area Task Force
393 University Avenue
20th Floor, Suite 2001
Toronto, Ontario M5G IE6
Dear Dr. Golden:
RE: TOWN OF CALEDON SUBMISSION TO THE TASK FORCE ON G.T.A.
REFORM
The Town of Caledon is pleased to submit to the Golden Task Force,the Caledon position for
a strong G.T.A. for the future. We believe that the Caledon model provides an excellent working
model for other rural partners within the G.T.A.
With an enviable record in municipal financial management, environmental protection and
municipal planning, the Town also takes pride in its service delivery system, which is efficient,
effective, accessible and accountable. Our goal is to ensure continuing improvement in service
delivery on behalf of our taxpayers.
It is the Towns position, following thorough analysis and consultation, that it is in the financial
best interest, both locally and G.T.A. wide, that Caledon remain in the G.T.A., in a two tier
system.
The Town of Caledon is a community of communities. It is committed to protection of the
headwaters, greenspace, and agricultural lands required by a vibrant urban core. Pooling of
financial resources within the overall envelope will enable these essential elements of the eco-
system to be protected and enhanced within a strong G. T. A..
..12
6311 Old Church Road, Box 1000, Caledon East, Ontario LON 1 EO
Telephone: 905-584-2272 B Georgetown and Erin exchanges use Zenith 86130 B Fax 905-857-7217
SEP 29 95 15 : 06
9(-I 5R57721 7
Page 2\of 2
Sept. 29/95
GTA Task Force
We look forward to working with the Province, other municipalities and yourselves to address
the areas requiring reform:
B
fair assessment for all
.
accountable municipal financing
.
equitable taxation
B
stronger local government
B
an integrated approach to area-wide problems
B
structural and governance improvements
We are available for further discussion and clarification. We look forward to future opportunities
to participate in the evolution of the municipal structures which will complement and enhance
the future G.T.A..
Enclosed please find 10 copies of our submission. If further copies
our office. We look forward to the results of your deliberations.
Carol Seglins, Mayor ..)
TOWN OF CALEDON
B5463/Sept.
cc: Chair Kolb, Region of Peel
Mayor McCallion, City of Mississauga
Mayor Robertson, City of Brampton
Members of Council
GTA Municipalities
are required please contact
TOWN OF CALEDON DRAFT SUBMISSION TO THE GOLDEN TASK FORCE
re: G.T.A. Task Force
TABLE OF CONTENTS
PAGE #
1.
1.1
1.2.
2.
2.1
2.2
2.3
3.
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
4.
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
Introduction
Mandate of the Golden Task Force
Purpose of Towns of Caledons Submission
An Historical Snapshot
Settlement in Peel Area
Origins of Peel Region
Establishment of the Town of Caledon
Caledon The Model Rural Community
The Workable Model - Efficient, Effective & Accessible
Boundaries Are Not The Problem
Caledons New Draft Official Plan and Environmental Policies
Agricultural Resource Protection
Environmental Protection Mandate
Aggregate Resource Management
Fire and Police Services
Parks and Recreation Amenities
Municipal Roads
Caledons Key Role in Peel and the G.T.A.
Partnership in Peel Region
Tourism and Recreation
Alternate Lifestyles
Environmental Protection
Headwaters Protection
Aggregate Resources
Heritage Resources
Relationship with the Urban G.T.A.
3
3
4
4
5
6
7
8
8
9
9
9
10
11
11
12
13
13
13
13
13
14
5. Caledons Perspective on Current Problems and Recommendcd Solutions for the
G.T.A.
5.1 Main Problems
14
5.2 Guiding Principles
14
5.3 Recommended Solutions 15
6. Caledons Position
17
7. Conclusions and Recommendations 18 & 19
TOWN OF CALEDON DRAFT SUBMISSION TO THE GOLDEN TASK FORCE Re:
GTA REFORM
September 27,1995
1. INTRODUCTION
The Golden Commission, through the Task Force, has invited the Town of Caledon and
other municipalities, boards and agencies to provide it with
viable G.T.A. Reforms by the end of September 1995. It is
Forces report wll be submitted to the Province by the end
deliberations by the Province will then occur. Caledon
Government initiatives as the situation evolves.
1,1 MANDATE OF THE GOLDEN TASK FORCE
The Task Force was created to address Municipal Finance
a submission concerning
anticipated that the Task
of 1995 and that further
will respond to further
issues, such as property
tax, assessment and transfer payments, the future governance of the G.T.A. including
the potential for restructuring the responsibilities and practises of municipal and
provincial governments as well as the interrelated issues of urban form,
infrastructure and economic competitiveness.
1.2 PURPOSE OF TOWN OF CALEDONS SUBMISSION
The Town wishes to take the opportunity to provide the Task Force with Caledons
perspective concerning the Mandate of the Task to consider Reform in the G.T.A. The
submission to the Task Force includes the following main components:
a) An Historical Snapshot
b) Caledon the Model Rural Community
c) Partnership with Peel Region
d) Caledons Perspective on Current Problems and Recommended Solutions
for the G.T.A.
e)
Conclusions and Recommendations
3
2. AN HISTORICAL SNAPSHOT
2.1 SETTLEMENT IN PEEL AREA
Settlement in the Peel area began in the year 1806 as over 70,000 acres of land west of
Toronto was purchased from the Mississauga Indians by the British government in order
to provide land for immigrants Within a year, the southern part of Peel was settled and
by 1821 Peel Country was surveyed and opened for settlement.
Peels economy at the time was essentially a self-sufficient
family forming the basic economic unit.
As the farm industry grew, small hamlets and villages
agricultural base with the
emerged throughout the
countryside. These settlements provided for almost all the needs of the local population.
By the 1860s some of these villages had grown into flourishing centres.
In the early 1890's new waves of immigration settled in the Toronto area and began to
view Peel not only in terms of food production, but also as a place of residence.
By the early 1950s Peels transition from rural to urban had begun. Certain industries
relocated from Toronto to such centres as Malton, Streetsville, Port Credit and Brampton.
Residential development in Cooksville, Burnhamthorpe, Clarkson and Streetsville turned
these centres into suburbs linked to Toronto by major highways and in the late 1960s,
new planned communities - Bramalea, Erin Mills, Meadowvale and Mississauga Valleys
- emerging in response to a growing demand for housing,
In slightly over a century, much of Peel has been transformed from a rural, hamlet and
farm oriented settlement pattern, based on a self-sufficient agricultural economy, to an
urban and semi-rural community with a growing industrial economy and a de-emphasized
agricultural role. Retail-commercial centres now serve the surrounding population.
Ironically, whereas the original settler worked the land on which he lived, and made
the trek to Toronto infrequently, today many residents do not work their land but
commute to Toronto to work, on a daily basis.
2.2
ORIGINS OF PEEL REGION
Local government in Ontario, based on a county structure, was established in 1849 and
remained fundamentally unaltered for over a century. Originally designed to respond to
local concerns in an essentially rural society, local government has faced many trying
challenges as life in Ontario has become increasingly urban.
4
First recognition of the need for. some form of local reorganization in Ontario was the
creation of Metropolitan Toronto in 1953. Catalysts for further reorganization appeared
in the 1960s. The Ontario Committee on Taxation called for a comprehensive system
of regional government. Local government Review Commissions were established and
proposals for reform were made. The reforms were designed to equip local governments
in Ontario with the political, structural and financial capability to deal effectively with the
problems of urbanization and to provide a framework for long-term economic, social and
physical planning.
In the case of Peel, the Ontario Government decided to establish a two-tier regional
municipality based, for the most part, on the area previously defined as Peel County.
The Regional Municipality of Peel Act, 1973 passed by the Ontario Legislature,
defined the new municipal structure and set out the responsibilities of the new
Regional eorporation Consequently as the result of that Act Peel Region, a
restructured form of local government came into being January 1, 1974.
2.3 ESTABLISHMENT OF THE TOWN OF CALEDON
The Town of Caledon is the most northerly of the three municipalities in the Region of
Peel. It consists of approximately 270 square miles and comprises 56% of the total area
of the Region of Peel, The Corporation of the Town of Caledon which was created
by Provincial Statue (The Regional Municipality of Peel ACT, 1973) on January 1,
1974, was established through the amalgamation of the Corporation of the
Townships of Caledon, Albion, the Village of Bolton, Caledon East and by the
amalgamation of the northern portion of Chinguacousy Township. At the same time,
the Police Villages of Alton, Caledon, Inglewood, and Palgrave were dissolved. The
Town of Caledon is bounded on the north by the Counties of Dufferin and Simcoe; on
the south by the City of Brampton, on the west by the Region of Halton and the County
of Wellington; and on the east by the Region of York.
The Town of Caledon fulfils an important role as part of the Toronto Centred Region and
is greatly influenced by Metropolitan Toronto and the urban centres in the Region of Peel.
Currently 40,000 people reside in the Town and by 2001 the population is planned to
reach 50,000 approximately with a projected population of approximately 84,000 by 2021.
Today the Town is the responsibility of nine (9) councillors and a Mayor. The Town is
divided into five (5) wards and each ward has two (2) elected representatives, a Regional
Councillor and Area Councillor. The only exception is Ward 3 (Caledon East) where the
Regional Councillor is also the Regional representative of Ward 4 (Albion). At the Region
of Peel the municipality is represented by the Mayor and 4 elected Regional CounciIlors.
5
Councillors represent the Town on various local boards and or committees. For example,
the Town is represented on the following:
B
the Credit Valley Conservation
B
the Metropolitan Toronto and Regional Conservation Authority
B
the Niagara Escarpment Commission
.
the Library Board
B
the Caledon Heritage Committee
.
the Dufferin-Caledon Hospital Board
B
the Peel District Health Council
This representation facilitates communication between the various committees and council.
A wide variety of services are provided by the Town to its residents and these include:
B
road construction and maintenance, over 670 kilometres of local roads,
B
recreation facilities and programs, 3 arenas, 2 pools and 9 community
centres,
B
a full range of library services delivered through 5 libraries,
B
police services through an agreement with the Minister of the Solicitor
General which still stands today as a model for rural and urban
municipalities throughout Ontario,
B
fire and emergency services which are delivered from 8 stations by one of
the largest volunteer fire departments in Canada (210 volunteer fire
fighters),
3. CALEDON THE MODEL RURAL COMMUNITY
3.1 THE WORKABLE MODEL - EFFICIENT, EFFECTIVE AND
ACCESSIBLE:
Change to bring about needed reform and improvements in effectiveness and affordability
is desirable, but, change just for the sake of change should be avoided. We must be
conscious of the substantial reasons for reform and keep these objectives clearly before
us as we look at the options. Municipal reform brings its own price tag in cost,
dislocation and reorientation. Twenty years is not a long time in municipal life, and
over the past twenty years of Caledon has proven, as many local municipalities have
proven, that local municipalities can be responsible and efficient managers of municipal
services.
6
During the past twenty years the Region of Peel and its respective local
municipalities have undergone tremendous change. Caledon has demonstrated its
ability to respond to the changes and to foster fiscal responsibility by:
B
No mill rate increase for the last 5 years.
Result: Maintained same commercial and residential mill rates.
B
Debt only 0.37%
result: Manageable controlled debt.
B
Protecting its reserves
result: Continued prudent fiscal rnanagement.
B
Continuous improvement in cost effectiveness of services
Result: Services maintained and improved where justified.
B
Continuing improvement of local services
Result: Efficient and cost effective services provided at the local level.
B
Continuing rationalization of Regional and local services
Result: Continued accountability to taxpayer for services offered.
B
Volunteerism Encouraged
Result: Continued use of volunteers results in extremely cost effective
service provisions.
3.2 BOUNDARIES ARE NOT THE PROBLEM
While the political decision in the 1970s to amalgamate
Peels 5 of rural municipalities
to form the Town of Caledon was correct for planning, economic, social and
environmental reasons, it is a fact that its sheer size has always been a logistical problem
that has had to be managed carefully. Any suggestion that Caledon, or any other local
muncipality in the G.T.A., should be made even larger should be reviewed with
caution.
7
In 1994 the O.M.B. held hearings in Caledon regarding the need to restructure the
electoral wards within Caledon. It was evident, at the end of a lengthy process, that there
is a high level of satisfaction with our municipal government and Caledons partnership
in the Region of Peel. Speaker after speaker pointed with pride to our community of
communities and our ability to cooperate and enrich our natural heritage. There was very
little support for substantial structural change but an eagerness to carry on with the
voluntary mode created over the last twenty years. People in Caledon have a genuine
feeling that we have reached a point where it is all starting to work. Caledon today is
a community of communities, which in spite of its large size has achieved financial
stability through careful planning and management.
3.3 CALEDONS NEW DRAFT OFFICIAL PLAN
AND ENVIRONMENTAL POLICIES
The responsible Ministries and Conservation Authorities acknowledge that Caledons
environmental policies represent a leading edge and provide a model for other rural
communities. In particular, the adoption of an Ecosystem approach to the overall planning
process recognizes, fore example, the importance of the protection of headwaiters,
The Growth and Economic Management Strategy Study and Environmental Background
Reports, together with the Towns new draft Official Plan (OPA 114) and Environmental
Policies (OPA 124) provide the essential underpinning for Peels draft Regional official
Plan.
The Region has fully recognized the fundamental value of the Towns initiatives as
they relate to environmental concerns.
3.4 AGRICULTURE RESOURCE PROTECTION
The southern part of Caledon contains some of the most productive farmland in the GTA
with an extensive and very active agricultural industry. Caledon has managed, through
pro-active municipal policies and actions, to protect this industry from speculative
interests, so that it can continue to have a strong and viable role in Caledons future.
8
TOWN OF CALEDON
Environmental Policy Areas
0 2 4
3.5 ENVIRONMENTAL PROTECTION MANDATE
Positioned at the headwaiters of both the Credit River and the Humber River Systems, and
at the juxtaposition of the Oak Ridges Moraine and the Niagara Escarpment Area,
Caledon has assumed, through extensive environmental research and policy formulation,
a strong leadership, and participatory role in environmental protection and management.
Caledon has recently prepared and adopted leading edge environmental policies, and has
a very active volunteer environmental advisory group. In partnership with the
Conservation Authorities, Caledon continues to either initiate or support a significant
number of critical watershed and subwatershed studies (e.g. The Humber Watershed
Strategy and the Credit River Subwatershed # 19 Study).
3.6 AGGREGATE RESOURCE MANAGEMENT
Caledon contains extensive aggregate resources and currently includes over 20 licensed
pit areas spread over 3,000 acres, The management of this resource area, with the inherent
necessity to balance the needs of the affected communities/environment with the needs
for the resource within the GTA represents an ongoing challenge to Caledon.
3.7 FIRE AND POLICE SERVICES
The Corporation delivers fire/police services to its residents at a very low per capita
cost which provides a model that could be emulated by other G.T.A. municipalities.
The Town of Caledon is proud to have the largest volunteer Fire Service in Ontario. It
is comprised of 210 firefighters, operating from eight fire stations, The Town of Caledon
Fire & Emergency Services has one of the lowest personnel turn over rates for volunteer
fire departments in Ontario. This is due, in large part to Caledons unique country setting,
community spirit, high level of co-operation with its citizens, and through special
arrangements with our partners in the Region of Peel,
Our annual per capita cost today with volunteers is $29.20 for operation and captia1
expense. If Caledon was forced to go to full time staff for fire and emergency, services
the cost would be $92.31 per capita per year.
The residents of Caledon receive Police Services from the Ontario Provincial Police
through a contract with the Ministry of the Solicitor General. The contract includes both
municipal community policing, as well as a fully integrated Provincial detachment.
9
This contract, which acts as a model for other municipalities, is served by the Ontario
Provincial Police, combined with a strong working relationship with the area detachment
and the increasing commitment of volunteers, has resulted in the delivery of a unique
cluster of programs, i.e.:
B
S.A.F.E. (Stop Automotive Fatalities Everywhere)
B
Road Watch
B
Community Policing Committees
B
Victim Services
B
Auxiliary Police
B
Block Parents & Neighbourhood Watch
B
Merchant Alert
3.9 PARKS AND RECREATION AMENITIES
Through fiscally responsible management and exceptional volunteer participation the
municipality recovers 52% of its operational cost.
The residents of Caledon and Metropolitan Area enjoy the benefits of:
B
B
in excess of 400+ acres of park land and fields accommodating in excess
of 100,000 users per year.
more than 6,000 acres of passive recreational land under the jurisdiction
of Metro Toronto & Region Conservation Authority
in excess of 1,826 acres of passive recreational land under the jurisdiction
of Credit Valley Conservation
access to the 35 kilometre Caledon Trailway. First municipality owned trail
in Ontario to be designated as part of the Trans Canada Trail network.
three indoor arenas, two indoor pools, and nine community centres serving
an estimated 600,000 people per year.
extensive community participation in development of parks and recreation
services and facilities.
recreation programming totally co-ordinated and managed by volunteers.
fiscally responsible operations recovering 52 percent of its operation costs.
10
4. 0 MUNICIPAL ROADS
MAI NTENANCE
In 1978 the Public Works Department developed a computerized Maintenance
Management system. This system has enabled the municipality to monitor its unit
cost for various maintenance activities and has resulted in the Town having the
lowest cost maintenance system in the Region of Peel. Caledons maintenance
management system has been adopted by more than 15 other municipalities and has been
taught at the Road School in Guelph by the Ontario Good Roads Association for the past
sixteen years.
RURAL ROAD CONSTRUCTION
In conjunction with the Ministry of Transportation, the Public Works Department has
developed a road construction design standard for rural roads. This new design, which
causes less impact on the natural environment, is
accepted by the residents of Caledon, and could be
with rural roads.
extremely cost effective, widely
adopted by other municipalities
4. CALEDON
)
S KEY ROLE IN PEEL AND THE G.TA.
4.1 PARTNERSHIP IN PEEL REGION
Geographic Caledon has been part of Peel for 128 years. The Villages and Townships
of North Peel have worked consistently and diligently with their Southern partners to
build an infrastructure to first support a largely rural and agricultural County and then a
modern urbarn/rural Region. The partnership has been capable of sustaining the
substantial urbanization of the two new cities of Mississauga and Brampton and the
creation of Caledon and its unique community of communities model of rural,
estate and small community evolution in the context of a large and environmentally
fragile, and very important ecosystem.
The consolidation of the five rural municipalities of North Peel into the new Town of
Caledon was seen as a mechanism for protecting the large rural land mass and small
communities that make up over 1/2 of Peels area. Caledon contains over twenty
communities, the headwaters of the Humber and the Credit, significant land forms such
as the Niagara Escarpment, the Oak Ridges Moraine and the Peel Plain. It is the
repository of significant resources such as agriculture, fresh water and mineral aggregates.
The last two decades have amply demonstrated the wisdom of this reform. Peel has
grown to a population of over eight hundred and fifty thousand with a very rich and
vibrant commercial and industrial area, mostly contained in the two cities of Mississauga
and Brampton. Caledon has also had steady growth but has retained its rural flavour and
has proved to be a strong partner in environmental, resource and agricultural protection
and enhancement. Caledons residential to commercial/industrial ratio today is 86.49 to
13.51 as compared with Mississauga at 65.3 to 34,7 and Brampton at 68.15 to 31.85.
Thus, by necessity, Caledon must be extremely frugal and these numbers illustrate the
need for an equitable capital redistribution.
In the last few years, substantial progress has been made in community planning and
environmental awareness. The community has worked together on common goals and
objectives, while maintaining the characteristic and unique differences within. Caledon in
the context of living with the large urban partners in Peel and the G.T.A.
The Regional roads and Provincial highway system are essential because the Town is
overwhelmed by excessive for large volumes of through traffic, not only from north to
south for employment and shopping, but from south to north for recreation and leisure
opportunities to the north.
Increasingly, Caledon is seen as the steward for Peels substantial natural heritage,
Depending on Peels large infrastructure and financial resources., Caledons role is to
husband and enrich the fragile environment that provides the green space, agricultural
reserve, fresh water and open areas so essential for healthy communities. Caledon is at
the leading edge in environmental and rural community planning.
Caledons significant representation on the Peel Regional Council has been pivotal to the
success of the Region. Caledon has a duality in the Region of Peel arising from the
related urban and rural areas which must be recognized. Working closely with their
urban partners, Caledon has continued to bring a high level of rural and
environmental awareness necessary to maintain a balanced perspective in the face
of a very aggresive program of rapid urbanization and industrialization in Peel.
4.2
Scenic
skiing,
TOURISM AND RECREATION
rolling hills, small country inns, the Bruce Trail, championship golf courses,
the CaledonTrailway, conservation areas, fishing, old time general stores, arts and
craft shops ... these diverse and complementary elements represent many of Caledons
tourism opportunities that span all seasons. It is a fact that in recent years an
increasing number of residents of the G.T.A. favour the scenic values, true character,
natural heritage and other amenities that Caledon possesses= all within a short drive!
12
4.3 ALTERNATE LIFESTYLES
For the urban family wishing to have a different lifestyle Caledon offers an unparall
rural choice in a setting which is dominated by the Niagara Escarpment, Oak Rid
Moraine, Peel Plain and the Humber and Credit Rivers. The growth centres of Bol
Caledon East and Mayfield West, offer a wide range of housing types with employm
opportunities both locally and in surrounding areas. For people preferring a more secl
rural lifestyle many diverse opportunities are to be found in Caledons six villages, r
estate residential areas and planned retirement communities, Caledon is a communi
communities complementing the diversity of lifestyles.
4.4 ENVIRONMENTAL PROTECTION
Caledon contains many diverse significant Ecosystems including the World Biosphere of
the Niagara Escarpment, Oak Ridges Moraine, and Peel Plain, and maintains a critical
role in protecting the integrity of these systems through its innovative environmental
policies.
4.5 HEADWAITERS PROTECTION
Positioned at the critical location of the joint headwaters of the Credit and the Humber
Rivers, the Town continues to be actively involved in the protection of these headwaters
system which are of paramount importance in providing potable water to an increasing
population, In addition, Caledons environmental management role is imperative to
maintain quality of water from the headwaters to the lake front.
4.6 AGGREGATE RESOURCES
With extensive aggregate resources within the northwest quadrant of the Town, there has
been in excess of 4 million tonnes of aggregate extracted every year to serve the G.T.A.,
In view of the fact that over 3,000 acres of land are presently licensed, it is imperative
that wise management of these resources continue to be practised through a balanced
approach to extraction together with rehabilitation through a master plan.
4.7 HERITAGE RESOURCES
Caledon has a rich history with many well prcserved historic communities, features and
structures. In addition, Caledon has assumed a significant role in
historic resources and today is identifying Heritage Conservation
the protection of these
Districts.
13
4.8 RELATIONSHIP WITH THE URBAN G.T.A.
Caledon shines a very immediate relationship with the GTA urban communities directly
to the south and southeast. The Town has had to evolve a flexible and responsive
approach, largely through responsible policy formulation and development of a
management strategy, in order to maintain its historic rural community base, and to
manage a wide range of urban impacts (for example, traffic volumes and recreation
demands).
5. CALEDONS PERSPECTIVE ON CURRENT PROBLEMS AND RECOMMENDED
SOLUTIONS
5.1 MAIN PROBLEMS
GTA is in urgent need of reforms to address the following matters:
B
Fair Assessment for All
B
Accountable Municipal Funding
B
Equitable Taxation
B
Weakening Local Government
B
Lack of Integrated Approach
B
urban Form
B
structural
5.2 GUIDING PRINCIPLES
B
Prudence with Money
B
Business Orientation
B
Promote Economic Prosperity
B
Economies of Scale
w.
Ecosystem Approach
B
Economies of Proximity
14
5.3 RECOMMENDED SOLUTIONS
B
ASSESSMENT
In order to ensure equity in taxation ail municipalities within the GTA must move to
MVA. Since assessment is the basis on which municipal taxes are derived a common
base must be used in order to ensure equity of taxation for all regardless of location.
Consequently, in order to achieve this goal of equity reassessment must take place
within the GTA beginning with Metropolitan Toronto. Once reassessment has occurred
within Metropolitan Toronto the balance of the GTA municipalities could be reassessed.
The greatest benefit and change that could be recommended in respect to any assessment
reform would be the pooling of assessment at a Regional level. This pooling would allow
industrial and commercial assessment growth to locate where it feels its needs and service
requirements can best be met while at the same time allowing all municipalities within
a Region to benefit from an enhanced and strengthened industrial of commercial
assessment base.
If the Province is truly interested in equity of taxation and fair value for services
offered, it must be prepared to commit greater resources to this important task. The
greater the resources committed, the faster equity wilI prevail. Unfortunately, without the
resources committed, the faster equity will prevail. Unfortunately, without the resources
and a firm commitment by the Province of Ontario to assessment reform any municipal
reform contemplated would only prove fruitless and compound even further the existing
inequities.
B
Many
MUNICIPAL FUNDING
municipalities within Ontario have cited the Provincial approach to municipal
funding as being intrusive, ambiguous, impractical and inconsistent. Municipalities have
been concerned for years that the Province has had a tendency to download
Provincially initiated programs to the local municipalities without any consideration
as to the cost or the service delivery implications of those programs. Consequently,
in order to stop the finger-pointing, and in order to ensure that any reform made creates
and results in a positive response from all parties affected, i.e. the Province, municipal
governments, and most importantly the taxpayer, and reform contemplated must ensure
that the following occurs:
B
that all services provided are produced at the level of government that can
do so most economically.
15
.
that all services delivered are in turn delivered by the level of government
that can do so most effectively.
B
that all services provided and delivered are divided between the Province
of Ontario and municipalities such that each function provides clear
accountability to the final recipient, the taxpayer.
TAXATION
Municipal tax reform needs to take place in order to address the serious problems
inherent in Ontarios current property tax system. In particular, changes have to be
made to the current system which forces businesses to assume a larger share of the
property tax burden than homeowners. For instance, a recent study sponsored by the
Donnu Canadian Foundation and the Canadian Urban Institute, indicated that property
taxes on many single family homes are consistent and represent about 1 percent of the
homes true market value regardless of where you live within the Greater Toronto Area
(see Figure 1). However, it was also discovered that owners of commercial property
located in the Metropolitan area pay anywhere from 2.5 to 3 percent of their market value
in taxes each year-approximately two and a half to three times the burden carried by
home owners located within the same Metropolitan areas. However, the same study
discovered that in York, Halton and Peel, commercial property owners pay less than 2
percent of their buildings market value in taxes. A major difference when businesses are
trying to be competitive and survive during difficult economic times.
Although education costs are not part of the Task Forces mandate the fact remains
eduction finance is one of the most important issues that need to be addressed. Direct
costs of education should be removed from the property tax base and a more
appropriate source of funding must be found to eliminate the inequities that
currently exist. In Caledon, education taxes today represent 67 cents of every tax dollar
being levied as compared to 54 cents in 1975, Since 1985, the mill rate component of the
tax bill in Caledon has risen from 30.94% to 69.07% mills with dramatic increases
occurring in 1991, 1992 and 1993 respectively (see Figures 2 and 3). Consequently,
education reform must be a part of any GTA reform being contemplated or considered.
Educational costs can no longer be funded through property taxes, but must be funded
through Provincial revenues. It is no longer a viable option for property taxes to be a
source of revenue for educational programs or purposes.
In return for municipal tax reform, municipal governments should be prepared to rely
much less on provincial, director indirect subsidies for services that are purely municipal
in function and nature.
16
Figure 1
* 3.OC
2.5C
2.00
1 .5a
1.00
0.50
0.00
Property Tax Comparison
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
Toronto
Vaughan Caledon
Oakville
*Represents percentage of homes true market value
Toronto
Vaughan
C a l e d o n Oakville
*Represents percentage of commercial true market value,
I
I
WEAKENING LOCAL GOVERNMENT
The Province continues to financially download to municipalities who must deliver
respective services and responsibilities. Since local municipalities are the most accessible
and accountable to the taxpayer the Province should be concerned only with overall policy
and priorities, and should not interfere with the day to day service delivery at the
municipal level.
The Task Force should consider some reduction in the current number of local
municipalities (Peel and Caledon remain intact) and each municipality should be
funded according to an equitable formula. .
B
INTEGRATED APPROACH NEEDED
While it is imperative that any form of reform must redefine the role of the
municipal/provincial relationship, it is as equally important that there be an integrated
approach for the management and delivery of a number of services and utilities that serve
the G.T.A. Examples of where an integrated approach should be used are as follows:
Overall Strategic Planning (municipalities provide implementation)
an integrated G.T.A. Road, Rail and Air Commission to set out strategy for
the movement of people and goods
waste management
provision of water and sewage services
B
URBAN FORM
In general urban form should be in transit supportive (higher density), which will reduce
the amount of greenfield acres taken for development and also reduce the need for
infrastructure requirernents and public spending, In addition, higher densities, would
encourage the Work-Live philosophy, that has been seen to provide major savings in
service delivery costs.
6. CALEDONS POSITION
Throughout this analysis it is apparent why Caledon should be recognized as a local
rural/urban municipality that currently works very efficiently and which provides effective
services over a large area to a scattered population. Since its consolidation in 1974 the
Town has gelled into a community of communities where people are proud of their
identity and their quality of life.
17
On behalf of its taxpayers the Town of Caledons position, following analysis, is to
remain with the Cities of Brampton and Mississauga and the Region of Peel as its
urban partners in a two tier system.
The existing two tier government is envisaged to continue in its present arrangement,
however, overall coordination of G.T.A. wide issues must also be effectively handled.
This can be addressed as follows:
the formation of a G.T.A. forum that comprises representation from all
upper tier municipalities.
the establishment of a Special G.T.A. Cabinet Ministers Committee for
the G.T.A.
7. CONCLUSIONS AND RECOMMENDATIONS
7.1 CONCLUSIONS
The Town of Caledon was created by Provincial statute in 1974
through the amalgamation of five local municipalities and dissolution
of four police villages. The present Town should remain intact in the
G.T.A. as a viable partner within the Region of Peel and which could
serve as a model for other rural/urban areas of the G.T.A.
The evolving requirements for infrastructure throughout the G.T.A.
dictates that a rural municipality must continue to have an urban
partner to compliment nodal development
If the Province is truly interested in equity of taxation and fair
value it must commit to full market value reassessment across the
G.T.A. together with the provision of sufficient resources to complete
this very necessary task. In addition, there must be an immediate
change in the source of funding for the education system which should
not be funded through the property tax bill.
During the last 20 years Caledon has demonstrated its ability to
respond to the need to improve its efficiency, while at the same time
holding the line on local taxes. This provides a model for the
betterment of local government.
18
With its scenic rolling hills and rich recreation and tourism
opportunities the Town offers the urban residents of the G.T.A. an
unparalleled choice of lifestyles and shares a very immediate
relationship with the G.T.A. urban communities to the south.
.
All services provided must be produced by the lowest level of
government, which can do so most effectively and efficiently.
7.2 RECOMMENDATIONS
1)
2)
3)
4)
5)
6)
7)
8)
Reform should see the Province of Ontario act immediately on the key
questions of reassessment and educational financing.
Reform should include provincial/municipal swaps to disentangle
government functions and grants.
Reform should provide for a new permissive Municipal Act,
Reform should provide appropriate restructuring.
Reform should provide for the continuance of the two-tier model of
government throughout the G.T.A,
Reform should provide for the formation of the G.T.A. forum (not another
level of government) to co-ordinate with the Province of Ontario on
matters of the G.T.A. interest.
Reform should provide for a strengthened role for local government.
No reform should take place until consultation has occurred between the
Province and those municipalities located within the G.T.A. so that
positive, and agreed change can occur.
19
September 1995
C A N AD I AN F EDERA T I ON OF
I N DEPEN DEN T B U SI N ESS
CANADIAN FEDERATION OF INDEPENDENT BUSINESS
Toronto
September 1995
T.O. Tax Overload
Report to the Greater Toronto Area Task Force
Ted Mallett
Senior Economist
Table of Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GTAs Property Taxes on Business are Far outof line . . . . . . . . . . . . . . . . . .
Small Business Says Eliminate one Tier of Local Government . . . . . . . . . . . . . .
Recommendations: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property Tax and Small Business in the GTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Valuation Dartboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Built-in Tax Biases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Survey Findings: Weighing the Small Business Property Tax Load . . . . . . . . . . . . . . . .
Inequality of Effective Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ability to Pay in Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Disappearing Tax-for-Service Relationship . . . . . . . . . . . . . . . . . . . . . . . .
Implications for Businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Surgically Curbing Local Governments Appetite . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conclusions and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
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The Greater Toronto Task Force has been given an important opportunity to chart the future
course of local government in Ontario. The Task Forces work and recommendations will
likely have extensive implications on the development of governance and local tax policy in the
Greater Toronto Area (GTA). In addition, it will affect other regional municipalities across the
province. This kind of review is long overdue in the minds of small- and medium-sized
business owners in the region. Independent business owners have long held the belief that the
progressive deterioration of the tax system and the explosion in the size and influence of local
government are severely harming job creation and business development potential. They
believe in a return to a principled approach to governance and financing policy. Without a
clear set of policy principles, it is not possible to establish a sense of fairness and
accountability in the system of local government.
Businesses are not only concerned with high rates. They frequently cite problems in the value
for money and levels of fairness of the present system. CFIB members in Metro Toronto are
much more likely to cite high taxes as a concern, but the other problems with the property tax
system appear just as prevalent in the outer regional municipalities within the GTA.
The business sector is burdened disproportionately because of both deliberate and benign
political manipulation of the property tax system. Although taxes are supposed to be based on
market values, the amounts businesses pay deviate far from this principle. Three major
influences converge on the business sector to create a compounding set of distortions:
problems with valuations, built-in biases on tax rates and extra taxes.
GTAs Property Taxes on Business are Far out of Line
CFIBS survey of 1,216 individual members in the GTA collected detailed information about
tax levels and property values on both their business and residential properties. The findings
point out massive distortions in tax levels within the GTA that have resulted from the kinds of
distorted tax practices detailed above. When measured as a percentage of estimated property
value, commercial and industrial property owners across the GTA pay an average of between
double and triple the rale of tax compared with residential properties. Metro Torontos
average effective tax rate on business properties in 1994 was 4.04 per cent, while the
effective tax rate on homes was 1.33 per cent--only one-third the equivalent. Using a
hypothetical business and home property each worth $100,000, taxes on the business property
would average $4,040 per year while the residences tax bill would be $1,330
Although Metro Toronto displays the largest tax inequities, the gap in average effective tax
rates between business and residential properties is also substantial in Halton, Peel, York and
Durham as well. The regions outside Metro Toronto, therefore, are far from being tax
i
havens, as some have often characterized them. The situation is worst in Metro Toronto
because it has had a longer history and therefore more time to allow its tax system to
deteriorate. In time, the situation will likely be just as bad in the other municipalities unless
governments make fundamental corrections.
The property tax system in the GTA, therefore, has reached the end of the line with respect to
the business sector. Increasing tax rates further will only drive more firms out of Metro and
into cheaper business settings. Yet although the regional municipalities can offer lower tax
rates now, unless they repair the fundamental flaws in the system, the same fate will befall
them sometime in the future. The GTA needs a simpler and more cost-efficient system of
government--one that has structural limitations on how much it can rely on the property tax
system to fund itself.
Small Business Says Eliminate one Tier of Local Government
CFIB members see eliminating one of the two tiers of local government in the GTA as the
most obvious way to simplify the system. More than 92 per cent of respondents across the
GTA believe there should be only one level of local government. These strong results are
quite consistent within each of the five regional municipalities. Business owners see a great
deal of duplication and waste of resources in the present style of government. Cutting out one
layer should dramatically reduce the cost of administrative overhead.
Although there is a strong mandate to cut, the next logical question is which one?. Although
not unanimous, it appears the greater balance of support lies in the elimination of regional
governments, possibly coupled with the consolidation of some local municipalities.
The decision to consolidate should reflect the aim to achieve reasonable efficiences of scale in
civic operations and service delivery.
Recommendations:
Small business owners believe the only way to quickly reduce the pressure on property taxes is
to focus on spending cuts. There is no support for reducing taxes on businesses only to have
revenues raised from other sourcestaxes are damaging wherever they are applied. The most
obvious source of savings should come from local government payrolls. The administrative
overload is still very much a factor in government and it should be possible to reduce overhead
significantly without seriously affecting services, particularly in larger centres. Unless
challenged by significant revenue cuts, governments will not have the incentive to seek out
creative operating solutions. CFIB members made it clear that local government functions
should revert to first principlesthe provision of basic policing, fire protection and
infrastructure services. They should assess all other services to measure their true need and
relevance in the economy.
ii
Apart from immediate spending actions to ease the pressure of government on the economy,
several longer term measures are also necessary to prevent a further widening of the gap
between business and residential tax rates. CFIB recommends the following courses of action:
Municipalities should, as a matter of policy, tax properly classes in proportion to the levels
of local services they consume. This principle will bring fairness to the property tax system
and restore government spending accountability to their electorate. Local spending costs versus
benefits would become more directly linked, allowing voters and government officials to
properly assess the true value of local services.
To achieve the above aim, local governments should be required to obtain independent
estimates of the value of local services consumption among property classes. These studies
should have to follow appropriate accounting methodologies formulated by the provincial
government.
In situationsons where taxes versus the use of services vastly differ among property classes, a
very gradual adjustment process should be set in place. No property owner (business or
residential) should face sudden and massive tax shifts. The effect of a gradual shift, in all
likelihood, would mean that under-taxed property classes would not have to bear the full
adjustment. Political pressure would likely mean that local spending restraint would be
encouraged, thereby limiting future tax increases. This approach would also prevent massive
changes in property values associated with sudden tax shifts.
Eliminate business occupancy taxes. Occupancy taxes, which are paid only by businesses
beyond regular property taxes, are extremely damaging to local economies. They should be
gradually phased out over a set period. Meanwhile, local governments should be prevented
from developing or using other business-only taxes such as user charges or variable mill rates
to make up for lost revenues. Ideally no taxes should be increased to replace occupancy taxes.
Require that all reassessments be phased in. The tax system needs stability. Businesses are
unable to properly plan their financial affairs because of the prospect of double- or triple-digit
tax increases at assessment time. Reassessed properties should have their assessment levels
phased in during a 3-5 year process. In addition, no property should have more than a 10 per
cent tax increase as a result of reassessment unless major improvements were made to enhance
market value.
Eliminate or refrain from the use of Within-class reassessments. Unless this technique
serves to reduce distortions in the tax system, use of within-class reassessments by local
governments should be disallowed. Within-class reassessment techniques tend to be misused
for political benefit and they promote a widening in the inequality between business and
residential taxes.
111
Investigate the use of more stable assessment methodologies. Although market values are
theoretically a fair and justifiable way to apportion taxes among properties, in practice they
have severe limitations. Market values are highly subjective and proneto wild swings
according to economic conditions. It is common to find a number of assessment experts
assigning widely different values to the same properties. Working in more constant factors
such as floor space or use of services into tax assessments could help stabilize assessments and
create greater certainty about future tax levels.
If the use of services cannot be embodied in the assessment system, property owners that are
restricted from using municipally provided services should receive tax rebates. Firms that
have seen city garbage collection services withdrawn, therefore, should be allowed the benefit
of lower property taxes because they have to pay extra for private sector services.
Restrict and gradually eliminate the use of variable mill rates. Assigning different mill rates
to different types of property severely distorts the tax system because rates cannot be assigned
in a meaningfully objective way. There are no economic, policy or social rationales that could
justify taxing one type of property at a fixed rate above or below another type of property.
Uniform rates are the fairest way to apply property taxes.
Limit the use of properly taxes in funding education. Because school board spending has been
a major cause of the escalation of property taxation, the province should aim to limit school
boards abilities to dip into the property tax system for revenues. Part of the solution should
include consolidating the number of school boards across the province to save on the
substantial overhead costs they place on the system.
Privatize and contract out local services as much as possible. Although local governments
have the mandate to provide public services, governments themselves do not have to operate
every stage of their delivery. The private sector has repeatedly shown that it can provide
service cheaper and more efficiently than governments themselves.
Eliminate one of the two political levels of government within the GTA regions. Independent
business owners strongly believe two levels of local government greatly adds to the cost of
governance. The question of which level to eliminate is less important, but we should design
new government structures in the taxpayers best interests rather than catering to the status
quo. Any reformulation of government must also have clear cost savings requirements set in
place to ensure that the process does not degenerate into an expensive and unproductive card-
shuffling exercise.
Although CFIB aims these recommendations at reducing the property tax load on businesses,
in no way should they be regarded as giveaways to one sector at the expense of others.
They are aimed at restoring a balance in the tax system that once existed. Small and medium-
sized businesses have been progressively and invisibly carrying a heavy load for the benefit of
iv
local governments and residents. Disparities and tax levels, however, have reached a point
where they have compromised the job creation and investment potential of the business sector.
Property taxes are a justifiable form of taxation, but they have their limitations. If raised too
far or made too unequal, the damage they cause far exceeds the benefits from local
government spending. Restoring balance to the property tax system and reducing the effect of
profit-insensitive taxation, therefore, are actions that would be in the best interests of all
members of the local communities.
v
Introduction
The Greater Toronto Task Force has been given an important opportunity to chart the future
course of local government in Ontario. The Task Forces work and recommendations will
likely have extensive implications on the development of governance and local tax policy in the
Greater Toronto Area (GTA). In addition it will affect other regional municipalities across the
province. This kind of review is long overdue in the minds of small- and medium-sized
business owners in the region. Independent business owners have long held the belief that the
progressive deterioration of the tax system and the explosion in the size and influence of local
government are severely harming job creation and business development potential. They
believe in a return to a principled approach to governance and financing policy. Without a
clear set of policy principles, it is not possible to establish a sense of fairness and
accountability in the system of local government.
The Canadian Federation of Independent Business (CFIB), speaking for its 13,500 members in
the GTA and almost 40,000 members in Ontario, wishes to present the perspectives of the
small and medium-sized business community. CFIB is Canadas largest small business
organization. Membership is restricted solely to individual business owners and they represent
CFIBS only sources of funding. CFIB establishes policy positions through direct member
contact and the use of surveys ensuring an accurate representation of the widespread interests
of the independent business community.
The small- and medium-sized business sector, defined as firms with fewer than 50 employees,
represents 96 per cent of all business establishments in Ontario, 80 per cent of net new job
creation and 30 per cent of total employment. The socioeconomic contributions of this sector
are not just staticsmall firms confer dynamic benefits as well. New businesses are the agents
of change. They help the restructuring of economies to new conditions. Without the
progressive influence of small business creation and growth, economies would quickly stagnate
and revert to a path of decline. Government policy, therefore, should as much as possible
encourage the dynamic influence of small businesses. At the very least, governments should
not be building blockages on local economies that prevent the business sector from generating
wealth for their communities.
Harmful local
B
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government influences include:
The disproportionate levying of property taxes onto local businesses,
Government competition with private enterprises,
Excessive regulatory requirements, and
The inefficient and costly delivery of public services.
The extent to which each of these issues can be corrected or mitigated will have direct and
positive impacts on the growth and health of all local communities. Although these solutions
require a reduction in the size and influence of local government and a redistribution of tax
2
loads throughout communities, if adjustments are rational and the process follows basic
fairness principles, the benefits to communities will be substantial.
The basis to CFIBS recommendations comes from a long history of surveying small business
owners on a wide range of local tax and policy matters. Most recently, CFIB completed a
detailed national survey of the membership on municipal tax and governance issues. Findings
with respect to Ontario as a whole are embodied in the report Silent Killer: The Impact of the
Property Tax System on Ontarios Small- and Medium-sized Businesses. This report is
designed to supplement the province-wide findings and provide greater detail on small business
owners opinions and tax conditions within the Greater Toronto Area. CFIB conducted the
survey between February and April 1995 and it collected responses from 1,216 small- and
medium-sized businesses in the GTA. See the Appendix for the questionnaire and past survey
results.
Propertv Tax and Small Business in the GTA
The dominant single local government issue among small business owners is property taxation.
It is not only of relevance in strict dollars and cents terms, it also indirectly determines small
business owners views on a range of other local government issues ranging from methods of
service delivery to the fundamental structure of governments and their agencies. Individuals
who believe the tax system is not treating them fairly will more than likely also be dissatisfied
with other aspects of local government.
Businesses are not only concerned with high rates. They frequently cite problems in the value
for money and levels of fairness of the present system. CFIB members in Metro Toronto are
much more likely to cite high taxes as a concern, but the other problems with the property tax
system appear just as prevalent in the outer regional municipalities within the GTA (see Figure
1).
The business sector is burdened disproportionately because of both deliberate and benign
political manipulation of the property tax system. Although taxes are supposed to be based on
market values, the amounts businesses pay deviate far from this principle. Three major
influences converge on the business sector to create a compounding set of distortions:
problems with valuations, built-in biases on tax rates and extra taxes.
Figure 1
Small Businesss Concerns About Property Taxes in the GTA
I 1
60.0 100.0
Source: Canadian Federation of Independent Business, results of 1995 Property Tax Survey
The Valuation Dartboard
The root source of a great deal of the systems problems is the manner in which authorities
value properties for tax purposes. Unlike income levels or the cost of goods purchased (which
are exact measurements), property values are highly subjective. Valuations are nothing more
than best guesses as to the true value of a property. Recent sales of other properties nearby
may provide guidance on market values, but they are not perfectly exact indicators. Errors or
differences of opinion on valuations can result in widely varying estimates. The degree to
which assessed values are imprecise, therefore, has a direct impact on owners tax obligations.
Many properties are over assessed, while many other properties are under assessed. Even if
governments believe that they assess properties properly on average, it is cold comfort to an
individual legitimately claiming that their property assessment is far too high. Because of the
stakes involved, it is little wonder why assessments and appeals are massive and hugely
expensive processes for governments and property owners.
Where there are many similar types of properties within municipalities, such as homes and
small retail establishments, valuation problems are reduced because of the large pool of real
estate transactions to give guidance. The variability of assessments, however, is a far more
serious problem among larger non-residential properties because of their relative uniqueness.
4
The system hits manufacturing and wholesaling establishments particularly hard. In cases
where market values are difficult to quantify, the province allows municipalities to use other
measures to decide worth, such as square footage, rental value, and sales value. Rather than
improving the fairness of the property tax system, however, these approaches often make it
more complex and obscure. Because they all are not net measures of business size, they also
are not sensitive to business profitability. Searching for the right valuation can also create a
tendency for assessors to tax property for its theoretical best use rather than its current use, A
small retailer leasing old space on a property zoned for high-density development could end up
paying tax based on the theoretical developments valuea value that is highly subjective and
dependent on swings in the economy.
Finally, merchants in retail malls are faced with additional issues surrounding the division of
tax obligations. Most provinces require valuations to be apportioned according to rental value.
Most shopping centre developers, however, offer below-market lease rates on anchor space,
meaning that small tenants pay far more tax on a square footage basis than large department
stores. Distortions are widened even further because the tenants also pay the tax on common
space. These distortions are among the chief reasons why small independent merchants have
been priced out of malls and replaced by national retail chains or franchises.
Built-in Tax Biases
Although assessments are major points of concern for non-residential property owners, the
difficulties imposed are largely accidental (i.e., there is usually no deliberate attempt by
government to load extra taxes on businesses). It is fair to say, however, there is a reluctance
to make procedural changes if the result would lower property taxes on businesses and
increase taxes on residents. Therefore, while assessments themselves tend not to be distorted,
the formulas that convert property assessment to tax payable are fraught with deliberate
government policies aimed at shielding the residential sector.
During reassessments, provincial governments commonly allow municipal governments to
reassess taxes within property classes. Unfortunately this practice has led to wider inequities
in the property tax system. In situations where periodic reassessments show declining
commercial property values compared with residential values, local politicians usually opt for
within-class reassessments to prevent commercial taxes from falling accordingly. Uses of
this technique are politically motivated because they allow residential taxation to be kept
artificially low. Metro Torontos last attempt to introduce MVA was just such a case.
Metros proposal ignored the market value shifts between residential and non-residential
properties and instead used within-class calculations. Commercial and industrial properties,
although property values had declined relative to residential values, therefore, were denied a
rightful decrease in their tax load.
5
Another key distortion is because of Ontario municipal act provisions that require
municipalities to set residential mill rates 15 per cent below commercial and industrial mill
rates. This differential is both arbitrary and unjustified considering the other charges and
licence fees paid to municipalities by businesses.
The business occupancy tax is also another regulated distortion on the tax system. These
taxes are set as a percentage of realty tax payable on occupied business space and are payable
by the occupant, rather than the owner of the property. Business occupancy taxes typically add
between 25 per cent to 75 per cent to a business total property tax bill, depending on the type
of business. There are no equivalents to this type of taxation on the residential sector, meaning
that many people are unaware of this extra layer of tax. Tax experts have roundly criticized
business occupancy taxes for being unjustified and inefficient forms of taxation. The historical
ratiomles for these taxes are lost in time, but they undoubtedly evolved at when there was far
more balance between residential and business taxes. Perhaps they were used to offset the
costs of sewage treatment and garbage pick up for the commercial and industrial sector. Now
that few businesses receive garbage collection services from their municipalities, or they pay
surcharges for many other services, the business occupancy tax is a relic of public policy, but
one on which many local governments are addicted. Although governments have often agreed
that this form of taxation is unfair, they cite local governments dependence on the revenues as
a suitable rationale to retain the tax. Where abolishing business occupancy taxes have been
proposed, governments want simply to transfer them onto the regular non-residential property
tax basein effect, proposing to substitute one unfair tax with another.
Survey Findings: Weighing the Small Business Property Tax Load
CFIBS survey collected detailed information about tax levels and property values from
individual members on both their business and residential properties. The findings point out
massive distortions in tax levels within the GTA that have resulted from the kinds of distorted
tax practices detailed above. When measured as a percentage of estimated property value,
commercial and industrial property owners across the GTA pay an average of between
double and triple the rate of tax compared with residential properties. Metro Torontos
average effective tax rate (see note) on business properties in 1994 was 4.04 per cent, while
the effective tax rate on homes was 1.33 per cent--only one-third the equivalent. Using a
hypothetical business and home property each worth $100,000, taxes on the business property
would average $4,040 per year while the residences tax bill would be $1,330 (see Figure 2).
Note:
Effective tax rates are defined as total realty plus occupancy tax as a percentage of the current
market value of a property. Market values are estimates given by the business owners
themselves. Taxes on the respondents own homes were used as the benchmark for residential
Ineffective rates.
6
Figure 2
Annual Property Taxes per $100,000 of Property Value, by Region
Although Metro Toronto displays the largest tax inequities, the gap in average effective tax
rates between business and residential properties is substantial in all other municipalities. The
regions outside Metro Toronto, therefore, are far from being tax havens, as some have often
characterized them. These findings also make it clear that the solution proposed by the Metro
Board of Trade and others to lower business taxation in Metro and increase business tax levels
on the other regions does not address the real problems in the system. Property taxes are
punishingly high on businesses in all regions. The situation is worst in Metro Toronto because
it has had a longer history and therefore more time to allow its tax system to deteriorate. In
time, the situation will likely be just as bad in the other municipalities unless governments
make fundamental corrections. The only real solution is to gradually reduce the tax gap
between residential and business properties so that we restore equity. The policy questions,
therefore, should centre on how we can achieve balance, rather than we should achieve
balance.
Inequality of Effective Tax Rates
The above results show that taxes on business properties far exceed taxes on residential
properties on average. Another troubling feature of todays system is how governments apply
taxes unequally across different properties. Huge variations exist--some businesses pay
effective tax rates in the one-to-two per cent range, while many others pay effective rates
many times higher (see Figure 3). In comparison, effective tax rates on homes in the GTA are
tightly groupedalmost six out of 10 respondents reported that taxes on their homes are
between 1.00 per cent and 1.49 per cent of property value, while no one reported residential
effective tax rates greater than 2.50 per cent. Among business properties, only 13 per cent had
effective tax rates in the 1.00-to-l .49 per cent range, while more than half (57 per cent) had
rates exceeding 2.5 per cent.
No resident, therefore, pays tax levels that are typical within the business sectorfor obvious
reasons, no local government could withstand the political pressure of imposing taxes at
$2,500 to $8,000 per $100,000 of a households value. Yet governments have thought little of
imposing these absurd levels of taxation on businesses. When taxed at these rates, no one can
blame businesses for moving or seeking assessment appeals.
Figure 3
Range of Effective Property Tax Rates in the GTA, Business and Residential
60
50
10
0
Source: Canadian Federation of Independent Business, results of 1995 Property Tax Survey
These findings highlight the concerns that business properties are much more difficult to value
than homes. Valuations are highly subjective and require many comparable properties and
actual real estate transactions to have any reasonable levels of accuracy. Under a market value
system, one can never completely solve this problem--it can be only mitigated by limiting the
use of property taxes as a source of government revenues.
These findings also point out that reassessments affect business properties far more than
residential properties. Any tax shifts, therefore, would be massive no matter whether
governments apply within-class reassessments or proper across-class reassessments. A main
problem of typical reassessments is that they are immediate, with no phasing-in measures.
Although residential tax shifts received the main attention during Metros latest reassessment
attempt, we show that tax-shift problems are many-times less than those faced by business
owners.
Property tax variations, therefore, create significant artificial advantages and disadvantages
within local economies and play havoc with commercial real estate markets. Reducing these
disparities would go a long way toward improving financial certainty and stability in local
economies.
Ability to Pay in Perspective
A lasting, but inaccurate justification of imposing higher property taxes on businesses has been
the belief that businesses are better able to afford it. This opinion would come naturally if
ones view of a typical business enterprise is a multinational manufacturer or a tenant in a
modern downtown office building. In reality, however, the business sector is not so easily
characterized. Most businesses are very small; 75 per cent of all firms in Canada employ five
people or fewer.
1
In addition, small business owners are far from well to do. Average earnings
of business owners are typically below those of employees. According to Statistics Canada's
annual surveys on income distributions, the median family earnings of employers and own-
account business owners was $40,000 in 1993, compared with median earnings of $55,000 for
families headed by paid employees.
2
In addition, the earnings of small business owners are
directly linked to their costs of doing business because they have little control over the prices
they can charge. The more that governments rely on profit-insentive taxation such as property
tax (and payroll taxes), the more they erode the hard earned earnings potential of a vitally
important economic resource. Governments should be encouraging risk-taking entrepreneurial
endeavors, not taxing them out of existence.
The fact that property taxes are deductible against business income is not reason enough to
claim that businesses can afford high taxes. The Corporate tax rate on small business income is
about half the regular corporate tax rate, so the inferred deductibility benefit for small firms is
half that for large businesses. Moreover, if a firm is losing money, deductibility is of no
benefit at allthey must pay the property taxes regardless. Residential property owners also
receive substantial tax assistance in tax-free capital gains on principal homes, a benefit not
available on business properties. The deductibility argument also implies that nothing is wrong
in having local property tax policies designed to counteract or offset the aims of income tax
9
policies. The corporate and personal income tax systems recognize that the taxation of gross
earnings instead of net earnings would have ruinous implications on an economys competitive
position. Because property taxes are levies on gross business operations (ie., total property
costs), high tax levels have the same harmful effects on the economy.
Some have also cited the businesss perceived ability to increase prices to absorb higher taxes
and other input costs as a justification for the higher load. The impact of the recession and the
arrival of intense competition from low cost producers and service businesses should
effectively finish the use of this rationale. In competitive environments, high fixed taxes
cannot get passed on through prices because competitors in low tax jurisdictions can undercut.
The only other methods to pass on the costs are through a combination of reduced employer
returns (which are already low), reduced employee wages and reduced capital investment.
Each option for the passing through of property taxes ultimately costs the economy.
Property taxes affect no sector of the business community more than small businesses. The
survey show that only half of the GTAs firms with fewer than five employees earned a profit
in 1994 (see Figure 4). Fully one-quarter of these firms are losing money, while the remaining
share is just breaking even. Although profitability improves among medium-to-larger-sized
firms, the results clearly show that businesses are limited in what they can pay in profit-
insensitive taxes.
Figure 4
Business Profitability in the GTA in 1994, by Size of Firm
0.0 20.0 40.0 60.0 80.0 100.0
% response
O Break- even B L o s s
i
Source: Canadian Federation of Independent Business, results of 1995 Property Tax Survey
10
Comparing taxes paid with sales levels also gives insight into the burden of taxation within
various municipalities. The tax/sales ratio shows how much of the revenue stream a business
must devote to local taxes. Although not an ability to pay measure (because sales levels do not
reflect profitability), the tax/sales ratio is a good indicator of the sensitivity of particular types
of firms to tax changes. In cases where tax reassessments substantially alter tax bills, they will
affect businesses with high tax/sales ratios far more seriously than firms with low ratios.
Where one can expect that the mix of businesses is essentially the same (across regions, for
example), comparing the tax/sales ratios becomes a sufficiently good proxy measure for "tax
burden.
Figure 5 shows that survey respondents in Metro Toronto paid an average 1.9 per cent of total
sales in property taxes in 1994, well above levels found in any of the other municipalities.
Durham businesses were the next highest on the list, paying the equivalent of 1.6 per cent,
while firms in Peel, Halton and York paid an average of 1.2 to 1.3 per cent. Not including the
already substantial tax premium businesses pay compared with residential properties,
therefore, a further 20-to-60 per cent tax disadvantage exists in Metro Toronto.
Figure 5
Business Realty and Occupancy Tax as a Percentage of Total Sales, by Region
2.0000
1.5000
0.5000
0.0000
Toronto Durham Peel Halton York
Source: Canadian Federation of Independent Business, results of 1995 Property Tax Survey
11
The Disappearing Tax-for-Service Relationship
The imbalance highlights many problems experienced by businesses between the taxes a firm
pays compared with the services they receive from local governments. Often, the two are
moving in opposite directions-taxes on commercial properties rise, while services to
commercial properties fall. One often observes that when local finances get tight, the first
reaction of government is to increase tax on businesses and/or reduce services to businesses.
Many municipalities have withdrawn garbage collection services from business properties,
forcing owners to pay for private sector haulers. Governments also often price sewage
treatment services, water and public utility charges advantageously for residents, but at a
premium for business customers. Development charges and special assessments, to make
developers contribute to municipal infrastructure, have also become more common.
Many independent studies over the years have concluded that Canadian businesses receive
fewer benefits from local government services than the residential sector, yet their tax load is
far higher.
3
A detailed study of the consumption of tax-supported city services for the City of
Vancouver, for example, showed that although local businesses paid 60.1 per cent of all
property taxes, they only consumed 29.1 per cent of city services. Put another way,
Vancouvers businesses paid $2.07 in tax for every $1 they received in services, while
residents paid only $0.56 in tax for every $1 in services received.
4
These findings could no
doubt be duplicated in any other city within the GTA.
This style of taxation also encourages excessive local government spending because it does not
make residents aware of the full costs of government services .
5
Finding public support for a
service among those who do not have to pay for it is easy. Observing would be insightful how
many essential public services would become low priority if the chief benefactors had to pay
most of the costs. Had the property tax system evolved in a more balanced way, therefore,
local governments would no doubt be far leaner than they are today.
These trends tend to be a result of the desire among local councils to cater to their electorate.
Political considerations, therefore, appear to have had a stronger influence on the property tax
system than the need for fair and balanced policy. Unfortunately, huge long-term costs are
associated with catering to short-term political needs. By continuing to load up on profit-
insensitive property taxes, businesses become less and less able to ride out economic swings.
They are also less able to create local jobs or invest in new plant and equipment because it
exposes them to even more taxation. Most important, it puts firms in high-tax jurisdictions at a
substantial competitive disadvantage.
Although protecting residents from the full cost of providing government services make them
better off in the short run, undermining the ability of the business community to produce local
jobs does far more long-term damage. The situation reaches the point where it becomes
worthwhile for firms to move to lower-cost jurisdictions. Municipalities are then suddenly
faced with a shrinking tax base on which to fund themselves. Increasing the taxes on the
12
remaining residents and businesses only makes the outflow worse. The only option is to
significantly cut government spending and curtail servicesa wrenching process if it has to be
accomplished suddenly.
Implications for Businesses
The result of the ad hoc application of taxation policies and principles across the region has
resulted in a property tax system that is highly fragmented and distorted-it would be a stretch
to call it a system at all. Moreover, the problems are cumulative in mature for the business
sector. Elevated assessments, higher tax rates and additional taxes combine in a compounding
fashion to create extremely high average tax loads on businesses. The variability of tax
conditions and the almost random nature of taxes, however, results in some property owners
paying much more, while others pay much less than what is typical. This situation leads to
widespread confusion and general distrust because no one is able to judge if the level of taxes
they pay is justified. Instead of being considered an integral part of the local socioeconomic
fabric, governments have regarded the business sector as an exploitable resource to be mined
whenever they needed more money. Because of the high effective taxes placed on it, the
commercial and industrial assessment base began to be treated like a possession of
government, to be hoarded and protected because of its apparent richness. Unfortunately the
business tax base, as with any renewable resource exploited too much, ultimately disappears.
Surgically Curbing Local Governments Appetite
The property tax system in the GTA has reached the end of the line with respect to the
business sector. Increasing tax rates further will only drive more firms out of Metro and into
cheaper business settings. Yet although the regional municipalities can offer lower tax rates
now, unless they repair the fundamental flaws in the system, the same fate will befall them
sometime in the future. The GTA needs a simpler and more cost-efficient system of
government--one that has structural limitations on how much it can rely on the property tax
system to fund itself.
CFIB members see eliminating one of the two tiers of local government in the GTA as the
most obvious way to simplify the system. More than 92 per cent of respondents across the
GTA believe there should be only one level of local government (see Figure 6). These strong
results are quite consistent within each of the five regional municipalities. Business owners see
a great deal of duplication and waste of resources in the present style of government. Cutting
out one layer should dramatically reduce the cost of administrative overhead.
13
of decided responses. The undecided account for three to 12 per cent of total response.
Source: Canadian Federation of Independent Business, results of 1995 Property Tax Survey.
The danger with these kinds of results is in the possibility of the issue becoming polarized.
Although almost all can agree on the need to go back to a single-tiered structure, strong
interests on either side could bog down the entire process to the point of killing any real
progress. The question of which government to cut is much less important than the question
in
of
14
whether to cut one level at all. Taxpayers can likely realize significant cost savings and
efficiency gains with both approaches and that either one would be an improvement over
todays system. It would be a shame to have attention turned away from the big picture by
narrowly defined squabbling or battles over turf. It is unlikely that local governments will be
able to redefine themselves, given their substantial built-in vested interests. Solutions,
therefore, will have to be set by the provincial government.
One of the traditional selling points of regional government has been its consolidation of
certain local services. One need not throw these kinds of benefits away in choosing to cut out
the top layer. Specific services functions such as public transit, utilities, policing, fwe
departments and school boards can be setup region-wide. As long as their terms of reference
and operating principles are specific and controlled, it would be preferable than setting up
duplicate agencies in each municipality.
Figure 7
Small Business Views on Which Level of Local Government to Eliminate
Ha/ton
Toronto
15
Although stating it in principle seems easy, it is by no means automatic that cost savings
would result from a government consolidation exercise. If goals and limits are not set and
followed, there is every possibility that a new single-tiered government could end up just as
expensive and inefficient as the existing system. Government consolidation must have, as one
of its basic requirements, a contract with its taxpayers that property taxes will be reduced by
a set amount. The only way to achieve innovative solutions to government structural
problems, and to shake it from its comfortable ways, is to turn off the revenue tap. It has been
too easy in the past to go to the tax system to fund improvements in government. This round
of improvements must take a new route.
The desire among small business owners to streamline government is well represented in the
survey findings. It is no surprise that more than 90 per cent of businesses in the GTA would
like their property taxes frozen in the coming budget year. Although it is self-evident that any
rational taxpayer would favour a tax freeze over a tax increase, the collective set of findings
from this survey more than justify the business sectors call for tax relief. Of those who would
like to see a tax freeze, most believe local governments should achieve it through spending
cuts (see Figure 8).
Figure 8
How to Fund Tax Cuts or Tax Freezes on Businesses
16
More than 80 per cent of respondents favour spending cuts, while another 23 to 26 per cent
believe governments should combine cuts with some revenue increases. Relatively few (17 to
20 per cent) business owners would like to see user fee increases because experience suggests
that fees tend to be applied far more often and in heavier doses on the business community, on
top of the high property taxes they already pay. In comparison, very few respondents are
willing to see tax increases on the residential sector, or additional program funding sought
from the provincial government.
When asked where spending cuts would be most appropriate, members responded with a list of
clear priorities. Business owners believe local governments should get back to basics and
concentrate only on the most important public services. According to the respondents, nearly
all areas of local government spending should have at least some degree of moderate spending
cuts, but a clear set of preferences emerges (see Figure 9).
Reducing local payrolls, either through job cuts or wage freezes/rollbacks, are seen as the
most obvious sources of savings. The vast majority of all local government spending in the
region is on public sector wages and salaries. Not only do high wages translate into higher
property taxes, small employers find it difficult to compete with governments for skilled
employees. Past CFIB research of 1991 Census data revealed that municipal and local
17
government employees in the GTA, on average, earned about 15 per cent more than private
sector employees in similar occupations. Adding the generous pension benefits typically
available to local employees pushed the wage gap well above 20 per cent.
b
Cutting
nonessential jobs and reducing salaries and wages to private sector norms would bring down
local government costs considerably.
Although many local governments have already cut their expenditures, most business owners
believe the size of local government has to be scaled back further. Having relied on taxes and
transfers to expand the size and scope of local government in the GTA in the past, revenue
options are no longer the appropriate means to solve their fiscal problems.
Conclusions and Recommendations:
The results of the CFIB survey leave no doubt about who pays local governments bills.
Because of deliberate or neglectful use of tax policy, Both the provincial and local levels of
government burden the GTAs business sector disproportionately with property taxes. Taxes
on businesses in the region are, on average, higher than in most other major municipalities,
while distortions, ambiguities and inequities are among the countrys worst. In its present
form, the GTAs property tax system violates the fundamental rules of tax fairness because
governments commonly tax similar properties at vastly different rates. Three main conclusions
emerge from the survey findings:
1. Business property taxation far exceeds residential taxation.
2. Variations in tax loads among businesses are hugeeven among similar types of
firms in the same municipalities.
3. Small businesses are more exposed to property taxes and problems in the system
compared with larger firms.
The survey found that the effective rates of tax (tax as a proportion of property value) on
business properties are, on average, two- to three-times more than the effective tax rates on
residential properties. Because all the factors that have contributed to these imbalances persist,
in all likelihood problems will progressively get worse unless something is done. With massive
cuts in provincial transfers on the horizon, there is a likely prospect of equally massive
increases in property taxes as local governments scramble to find the difference.
Unfortunately, because of the present state of the tax system, business would be forced again
to shoulder a disproportionate share of the load. Therefore at a time when we should look
upon the private sector to create more jobs to absorb the public sector cuts, their hands will be
tied because of the extra tax load.
Small business owners believe the only way to quickly reduce the pressure on property taxes is
to focus on spending cuts. There is no support for reducing taxes on businesses only to have
18
revenues raised from other sourcestaxes are damaging wherever they are applied. The most
obvious source of savings should come from local government payrolls. The administrative
overload is still very much a factor in government and it should be possible to reduce overhead
significantly without seriously affecting services, particularly in larger centres. Unless
challenged by significant revenue cuts, governments will not have the incentive to seek out
creative operating solutions. CFIB members made it clear that local government functions
should revert to frost principlesthe provision of basic policing, fire, protection and
infrastructure services. They should assess all other services to measure their true need and
relevance in the economy.
Apart from immediate spending actions to ease the pressure of government on the economy,
several longer term measures are also necessary to prevent a further widening of the gap
between business and residential tax rates. CFIB recommends the following courses of action:
Municipalities should, as a matter of policy, tax property classes in proportion to the levels
of local services they consume. This principle will bring fairness to the property tax system
and restore government spending accountability to their electorate. Local spending costs versus
benefits would become more directly linked, allowing voters and government officials to
properly assess the true value of local services.
To achieve the above aim, local governments should be required to obtain independent
estimates of the value of local services consumption among property classes. These studies
should have to follow appropriate accounting methodologies formulated by the provincial
government.
In situations where taxes versus the use of services vastly differ among property classes, a
very gradual adjustment process should be set in place. No property owner (business or
residential) should face sudden and massive tax shifts. The effect of a gradual shift, in all
likelihood, would mean that under-taxed property classes would not have to bear the full
adjustment. Political pressure would likely mean that local spending restraint would be
encouraged, thereby limiting future tax increases. This approach would also prevent massive
changes in property values associated with sudden tax shifts.
Eliminate business occupancy taxes. Occupancy taxes, which are paid only by businesses
beyond regular property taxes, are extremely damaging to local economies. They should be
gradually phased out over a set period. Meanwhile, local governments should be prevented
from developing or using other business-only taxes such as user charges or variable mill rates
to make up for lost revenues. Ideally no taxes should be increased to replace occupancy taxes.
Require that all reassessments be phased in. The tax system needs stability. Businesses are
unable to properly plan their financial affairs because of the prospect of double- or triple-digit
tax increases at assessment time. Reassessed properties should have their assessment levels
phased in during a 3-5 year process. In addition, no property should have more than a 10 per
19
cent tax increase as a result of reassessment unless major improvements were made to enhance
market value.
Eliminate the use of Within-class reassessments. Unless this technique serves to reduce
distortions in the tax system, use of within-class reassessments by local governments should
be disallowed. Within-class reassessment techniques tend to be misused for political benefit
and they promote a widening in the inequality between business and residential taxes.
Investigate the use of more stable assessment methodologies. Although market values are
theoretically a fair and justifiable way to apportion taxes among properties, in practice they
have severe limitations. Market values are highly subjective and prone to wild swings
according to economic conditions. It is common to find a number of assessment experts
assigning widely different values to the same properties. Working in more constant factors
such as floor space or use of services into tax assessments could help stabilize assessments and
create greater certainty about future tax levels.
If the use of services cannot be embodied in the assessment system, property owners that are
restricted from using municipally provided services should receive tax rebates. Firms that
have seen city garbage collection services withdrawn, therefore, should be allowed the benefit
of lower property taxes because they have to pay extra for private sector services.
Restrict and gradually eliminate the use of variable mill rates. Assigning different mill rates
to different types of property severely distorts the tax system because rates cannot be assigned
in a meaningfully objective way. There are no economic, policy or social rationales that could
justify taxing one type of property at a fixed rate above or below another type of property.
Uniform rates are the fairest way to apply property taxes.
Limit the use of property taxes in funding education. Because school board spending has been
a major cause of the escalation of property taxation, the province should aim to limit school
boards abilities to dip into the property tax system for revenues. Part of the solution should
include consolidating the number of school boards across the province to save on the
substantial overhead costs they place on the system.
Privatize and contract out local services as much as possible. Although local governments
have the mandate to provide public services, governments themselves do not have to operate
every stage of their delivery. The private sector has repeatedly shown that it can provide
service cheaper and more efficiently than governments themselves.
Eliminate one of the two political levels of government within the GTA regions. Independent
business owners strongly believe two levels of local government greatly adds to the cost of
governance. The question of which level to eliminate is less important, but we should design
new government structures in the taxpayers best interests rather than catering to the status
quo. Any reformulation of government must also have clear cost savings requirements set in
20
place to ensure that
shuffling exercise.
the process does not degenerate into an expensive and unproductive card-
Although CFIB aims these recommendations at reducing the property tax load on businesses,
in no way should they be regarded as giveaways to one sector at the expense of others.
They are aimed at restoring a balance in the tax system that once existed. Small and medium-
sized businesses have been progressively and invisibly carrying a heavy load for the benefit of
local governments and residents. Disparities and tax levels, however, have reached a point
where they have compromised the job creation and investment potential of the business sector.
Property taxes are a justifiable form of taxation, but they have their limitations. If raised too
far or made too unequal, the damage they cause far exceeds the benefits from local
government spending. Restoring balance to the property tax system and reducing the effect of
profit-insensitive taxation, therefore, are actions that would be in the best interests of all
members of the local communities.
Notes
1. Statistics Canada, Small Business and Special Surveys Division, Employment Dynamics,
Business Size and Life Status.
2. Statistics Canada, Income Distributions by Size in Canada, 1991, Catalogue 13-207,
(December 1992)
3. Harry M. Kitchen and Enid Slack, Business Property Taxation, Government and
Competitiveness Project Paper 93-24, School of Policy Studues, Queens University, (Kingston:
1993), p. 24.
4. City of Vancouver, Study of Consumption of Tax-supported City Services, KPMG
Management Consultants, (Vancouver: March 1995), p. 29.
5. Harry M. Kitchen, Property Taxation in Canada, Canadian Tax Paper No. 92, Canadian Tax
Foundation, (Toronto: 1991), p. 64.
6. Canadian Federation of Independent Business, Wage Watch: Measurement of the Public
Sector/Private Sector Wage Gap, (Toronto: November 1993).
21
Appendix
This survey is designed to identify the opinions and concerns of CFIB members on property tax and local
government issues in Canada. The results will give us valuable data needed to act aggressively on your
behalf. As always. all information you provide will be kept strictly confidential.
This Member I.D. No. can be found in the bottom right-hand corner of your Mandate Ballo~.
Example: 00064509
0
Instructions: Please circle answer as shown. 1.
Taxes and Costs
The following questions ask for specific detail on taxes, costs and property values. We recognize that this
information is extremely sensitive. Information provided will be kept highly confidential and will only be
used to make generalized comparisons.
8) Is your business property owned by you/your firm, or is it leased? (Circle one)
1. Owned
2. Leased/rented (Go to Q.11)
3 2
9) If you own your business property, please give its approximate market value (Give dollar value, or
? if unsure)
$
3 3 -4 0
10) If you were to attempt to sell your property, how easy would it be to find a buyer willing to pay a fair
price? (Circle one)
1. Would be very easy to find a buyer
3. Would be difficult to find a buyer
4 1
2. Would be likely to find a buyer
4. Would be impossible to find a buyer
11) If you rent or lease your property, please give your 1994 annual rental/lease costs not including
taxes (Give dollar amount)
Lease/rental costs of $ per year
4247
12) Did your business make a profit or loss in 1994? (Circle one)
1. Profit
3. Break-even
4 8
2. Loss 4. Dont know
13) How much in property taxes, occupancy taxes and other surcharges did you pay for your property
14
in 1994? (Give dollar values)
$ in realty tax (including education levy if applicable)
4 9 -5 5
$ in business occupancy tax (if applicable)
5642
$ in other local taxes, licence fees or surcharges
63+9
If vou own your home, what were the local taxes you paid in 1994 as a percentage of its estimated
. ,
.
market value? (Give percentagefor example, if-you-think your home is worth $150,000 and you
paid $2,000 in property taxes, you would indicate 1.3%)
1994 residential property taxes were . per cent of homes estimated value 70.74
15) Which of the following local services did your business use in 1994? (Circle as many as apply)
1. City-provided garbage collection 7. Economic development services
2. Public landfill site
7 5 -9 3
8. Zoning or building permits for own
3. Police assistance property
4. Fire department assistance 9. Other (Please specify)
5. Library
6. Business advice
21) Please indicate the relative priority you feel should be placed on spending restraint fo reach of the
following areas of municipal expenditures. (Circle one for each)
Moderate No Not Applicable/
Municipal Spending Area
c u t s cuts cuts
Dont Know
A.
B.
c.
D.
E.
F.
G.
H.
I.
Police and fire protection
Parks and recreation
Public sector wages and benefits
Roads, sewers and infrastructure
Transit system
Economic development and
promotion
Library services
Other administration services
Other (Please specify)
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
3
3
3
3
3
4
4
4
4
4
3
3
3
3
4
4
4
4
1 0 2
103
104
1 0 5
1 0 6
1 0 7
1 0 8
103
1 1 0
Regional Government
Which of the following best describes the type of local government(s) in your area? (Circle one)
1. Two-tier government-local and regional
111
~ One-tier local government (Go to comment section) 2..
3. Provincially administered area (Go to comment section)
1f your business is in a two-tiered municipality, do you think one level of government should be
eliminated! (Circle one)
1. Yes 2. No 3. Dont know 112
If yes. which method of elimination or consolidation would you prefer? (Circle one)
1. Eliminate regiomd government and retain existing local municipalities
113
2. Eliminate regional government and consolidate some of the smaller local municipalities
3. Eliminate local municipalities and retain overall regional government
4. Dont know
Comments
SOURCE : Mandate 133, Question 1.
DATE : September 1987
QUESTION : Are you for or against a greater provincial share in financing
elementary and secondary education?
BACKGROUND : It has been recommended in Ontario that provincial funding
of expenditures on elementary and secondary education should be increased
from 45% to 60% to relieve the burden on the municipal government. At
present the provincial government is responsible for the tiding of
40%-60% of expenditures on elementary education in the Western provinces
and Ontario, over 80% in Nova Scotia, and over 90% in the rest of the
Atlantic provinces and Quebec (with total responsibility in Prince Edward
Island and New Brunswick),
SUPPORTERS SAY : ARGUMENTS FOR a greater provincial share in financing
elementary and secondary education: municipal property taxes would be
reduced. Property taxes are not a suitable base from which to fund
education, since they do not relate to it, and no direct benefit is
derived.
OPPONENTS SAY : ARGUMENTS AGAINST a greater provincial share in
financing elementary and secondary education: local autonomy in
education would be reduced. Provincial sales or income taxes may
increase. School boards may increase their spending with no resulting
decline in property taxes.
RESULTS : Canada
YES : 54 % NO : 32%
UNDECIDED : 14 %
DESCRIPTOR : EDUCATIONAL FINANCING
SOURCE : Mandate 142, Question 1.
DATE : January 1989
QUESTION : Should municipalities be allowed to waive property and
business taxes as a way to attract new firms to their area?
BACKGROUND : At issue is the practice of trying to attract large
businesses to an area by means of property tax abatement and other
municipal incentives. Large firms which publicize their intent to
relocate or develop a new branch operation often touch off a bidding war
among jurisdictions eager to capitalize on the positive economic impacts.
The practice is common in the United States and currently allowed by a
number of provinces in Canada.
SUPPORTERS SAY : SUPPORTERS SAY that the ability to reduce or eliminate
taxes on specific properties is an important industrial development tool.
Businesses that are attracted to a municipality provide employment and
other economic benefits that flow to all residents in the area. The issue
also addresses local autonomy, in that local governments should be able
to pursue independently their own economic initiatives.
OPPONENTS SAY : OPPONENTS SAY that reducing or eliminating taxes on a
specific property is unfair. The practice generates unfair competition
against similar businesses and loads the burden of forgone taxes onto all
other taxpayers. Tax abatement measures rarely generate business, they
only redistribute it from one area to another, with no net gain to the
overall economy.
RESULTS : Canada
YES : 34% NO : 59%
UNDECIDED : 6 % NO INTEREST : 1 %
DESCRIPTOR : MUNICIPAL TAXES; PROPERTY TAX
SOURCE : Mandate 137, Question 3.
DATE : April 1988
QUESTION : Should municipal governments contract out more local services?
BACKGROUND : Municipalities across Canada are asking the senior levels of
government for more funds. Federal and provincial governments have told
them to consider alternatives to control municipal costs. Contracting out
services to the private sector is one such alternative approach. To
varying degrees, a large number of municipalities across Canada and the
U.S. contract out such services as garbage collection, waste management,
municipal payroll, street paving and maintenance, traffic lighting and
parks maintenance.
SUPPORTERS SAY : SUPPORTERS BELIEVE that public organizations should act
in the best interests of the public by looking for the best value for
money spent. Contractors are believed to operate more efficiently.
Since most of the administrative and capital overhead would be assumed by
a contractor, a municipality would be better able to lower costs and be
flexible to short term needs.
OPPONENTS SAY : OPPONENTS BELIEVE municipally-provided services are in
the best long term interests of the public. Municipalities must maintain
their operating expertise in order to ensure high quality and make
effective future plans. Contractors may not be able to cope effectively
with emergency situations or financial problems. Incomes paid to
municipal employees are more likely to stay within the community than if
paid to out-of-region contractors.
RESULTS : Canada
YES : 84%
UNDECIDED : 6 %
NO : 9 %
NO INTEREST : 1 %
DESCRIPTOR : MUNICIPAL SERVICES
SOURCE : Mandate 167, Question 1
DATE : September, 1993
QUESTION : Should the system of two-tiered local governments be reduced
to one tier?
BACKGROUND : Rising property taxes and concern about duplication and
overlap of government administration have focussed attention on Ontarios
system of two-tiered local government. Although regional governments were
designed to help local municipalities pool resources, there have been
suggestions that a system of single-tiered local government may be more
efficient.
SUPPORTERS SAY : Supporters say local needs are best met by a single
level of government. To add efficiency, it makes more sense to amalgamate
closely adjoining cities rather than form a second level of regional
government, which can be confusing to the public.
OPPONENTS SAY : Opponents say having two levels of government to handle
regional and local issues makes the most sense. Each level of government
is specialized in the services they provide and elected representatives,
as a result, are more directly accountable.
RESULTS : Ontario
YES : 73% NO : 13%
NO INTEREST : 1% UNDECIDED : 13%
DESCRIPTOR : MUNICIPAL GOVERNMENT
123 Edward Street, Suite 1210, Toronto, Ontario M5G 1E2 Telephone (416)598-0694
Fax (416) 598-0779
September 27th, 1995
DELIVERED
GTA Task Force
393 University Avenue
20th Floor, Suite 2001
Toronto, Ontario M5G IE6
Attention: Karen Pianosi
Dear Sirs:
RE: FACTORS AFFECTING DOWNTOWN ECONOMIC HEALTH
A SUMMARY OF CIPREC INTERVIEWS
The health of downtown areas across North America has been a
concern to policy makers for decades. Most North American urban centres
have suffered serious to catastrophic erosion in the economic and social
fabric of their downtowns. A few, such as Pittsburgh, have undertaken
massive renewal to breathe new life into their cores. None of these has
succeeded without decades of human suffering and economic dislocation
both before the renewal efforts and after the dislocation caused by renewal.
Most metropolitan regions have simply accepted the fact that inner areas of
their urban complexes are economic and social ghettoes and that they must
work with existing conditions, Toronto has been the brightest beacon of
hope in this depressing picture by maintaining a strong, vital, diverse and 24
hour downtown, Its suburbs have grown and prospered as elsewhere, but it
has managed to find the public policy and private investment formula to
strengthen and diversify its core area as well.
There is now mounting concern that the formula has been lost.
Toronto has seen massive disinvestment in the downtown in the past seven
years and the consequent fiscal, social and economic problems have
become visible. CIPREC has expressed concern to the Task Force on the
GTA that public policy is partly responsible for the decline.
CIPREC acknowledges that globalization, market factors and
technological change will continue to cause the movement of some
economic activity from traditional centres of capital concentration,
regardless of public policy, However, the trend is exacerbated when poor
tax policies, inefficient environmental review processes and awkward
planning processes is added to the mix.
CIPREC has addressed these concerns in previous submissions to the
Task Force. In response to the concerns expressed by CIPREC the Task
Force asked CIPREC to provide more insight into the factors that downtown
businesses deem most important to their continued presence and future
investment in the downtown.
This is a summary of the CIPREC response to that request.
It is not within CIPRECS resources to undertake a full survey of
downtown investors and potential downtown investors to determine the
factors influencing downtown growth or decline. Well
specific, comprehensive studies have been undertaken
Boston, Philadelphia, Sudbury, and Atlanta.
regarded, place
for this purpose in
2
Printed on recycled papar
Metropolitan Toronto through its economic development program has
development criteria which it deems important to future economic
prosperity. These sources may be useful to the Task Force. Academic
examination of the topic has led to some interesting summaries of the key
factors that influence investment location decisions. CIPREC drew on two
of these articles
l
in particular to develop a list of potentially important
factors, Arbitrarily defining the downtown as the area bounded by the lake,
Church, Spadina and College, CIPREC identified 7 employers that represent
the key large core businesses and explored with the senior executive
responsible for location decisions their views of the situation in Toronto. A
list of the companies which participated is attached.
SUMMARY OF FINDINGS
Since this was not a scientific sampling of views,
simply impressions gained from key downtown decision
the findings are
makers. While the
imprecise approach reduces the specificity of the conclusions, it should be
noted that the beliefs of key decision makers are the key to the economic
future of the downtown.
All respondents pointed out that they were located downtown
because it was the centre of Canadian capital markets and that regardless of
conditions and other factors they would be where that centre was, There
1
1. Howell, J. M. & Frankel, L.D. The New Role of Cities in Business and the
Contemporary World, Autumn, 1991.
2. Rondinelli, D.A. & Behrman, J. N. Where will High-Tech Companies Invest in the
1990s in Business in the Contemporary World, Summer, 1991.
3
Printed on recycled paper
was little concern that the capital/financial industry would move from the
downtown completely. However, most respondents pointed out that the
core activities required to be at the centre was a small portion of their
Iabour force and that the factors being examined would be critical in
determining what proportion of the work force would remain downtown.
There was wide agreement that the sensitivity to conditions
downtown was greater for companies that were small and consumer
oriented. It was also pointed out by several
was the most mobile sector of the economy
new jobs.
Other individuals interviewed stressed
employing large numbers of women.
commenters that this category
and was the largest source of
safety concerns for companies
Thus, the conclusions arrived at during the interviews about the
relative importance of various factors should be interpreted as affecting
primarily; a) the location of the back office functions of the major employers
(eg. up to 70% of a typical banks downtown staff) and b) location
decisions for small and medium sized companies.
Printed on recycled paper
Key Observations
Two factors were regarded as most critical to the maintenance of jobs
in downtown Toronto:
1) The lack of Iabour market access which was cited as a major
reason for leaving downtown; and
2) The total cost of renting space was a major controllable cost
that placed downtown at a competitive disadvantage.
The labour market issue was a universal concern. Employees of
major downtown companies cannot find housing they want (eg. ground
oriented and detached) within reasonable traveling time of downtown.
This inflates the cost of attracting qualified employees to downtown
jobs - and salary costs are the largest controllable cost of almost all
employers. There were only two methods cited to reduce this disincentive
to downtown investment - improved auto and transit access to the
downtown and more downtown detached housing - both of which face
significant fiscal, public policy and market obstacles.
CIPREC has dealt elsewhere with the consequences of the high
property tax levels that are most severe in downtown Toronto. The
attached clipping from The Economist illustrates the degree to which
Toronto is uncompetitive in this area, it was noted by many respondents
5
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that location decisions hinge on the sum effect of many cost factors.
Downtown locations tend to be more expensive than suburban ones for
many reasons. Property tax was identified again and again as the most
obvious and least justifiable factor in downtown Torontos relatively high
cost base.
Other Observations
While the respondents differed on many details and emphasized
different points, there was remarkably little conflict among their
observations. For each of the factors discussed, it was possible to arrive at
a perception of that factors importance and
Toronto as seen by the key decision makers
its quality in downtown
interviewed.
The chart attached provides this summary. Again, it should be
emphasized that these results are impressionistic and not scientifically valid.
The general health of the downtown was seen as important to many
employers. The presence of strong cultural and sport industries, the
hospitality industry and good public
of critical importance. A perception
activity and effective transportation
characteristics usually cited.
amenities were generally regarded to be
of public safety, after business
(road & transit) were other key
hours
6
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The presence of good
administration and a healthy
universities, being centre of public
retail industry were generally regarded as
desirable but not critical to location decisions.
CONCLUSION
The interviews revealed that major downtown companies are planning
to make maximum use of communications technology to reduce payroll and
other costs. Some of the companies (Banks and Investment Dealers) have
long term (1 O year) plans for reduced downtown space use and out of
province service relocation based on new technologies. However, all
companies interviewed were committed to the downtown core since
sophisticated elements of their business will continue to require direct
personal contact.
The companies were concerned that all levels of government
recognize that there must be continued investment in infrastructure and
services, if Toronto is to continue to be the pre-eminent office and financial
centre in Canada. In order to maintain and improve the health of the
downtown core new investment must be found and the impediments to new
7
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investment, such as the high cost of renting space, as a result of the
property tax burden, must be eliminated or significantly reduced.
Attachments
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RENTS, OTHER CHARGES AND TAXES IN THE PRIME BUSINESS
AREAS OF 10 OF THE MOST EXPENSIVE OFFICE MARKETS AND
6 IN EMERGING ECONOMIES.
(The Economist August 26th, 1955)
Office rents*
$ per square foot per year, June 1995
200 I
FACTORS CONTRIBUTING TO A HEALTHY DOWNTOWN TORONTO OFFICE MARKET
DESCRIPTION OF FACTOR IMPORTANCE QUALITY
Compet i t i ve I ncome Tax Level s Hi gh
I
n / a
Compet i t i ve Pr oper t y Tax Level s
Hi gh Low
Ac c e s s t o Compe t i t i ve l y Pr i c e d, Ski l l e d
Hi gh LOW
Labour
Available Appropriate Office Space
High High _
Convenient & Efficient Hub Airport
High High
Conve ni e nt Execut i ve Jet Ca p a c i t y
Moder at e Low
St r ong Downt own Ret ai l Sect or
Moder at e F a i r
A Mar ket Sens i t i ve Regul at or y Cl i mat e
Hi gh F a i r
Official International Banking Centre
Low
Low
S t a t u s
Indigenous Venture Capital Capacity
High High
Excellent Technology Transfer Services
High High
A Strong Intellectual Infrastructure
Moderate High
A St r ong Publ i c Tr ans i t Sys t em Hi gh F a i r
Good Aut omobi l e Access Hi gh F a i r
Excel l ent Goods Movement Capaci t y
Hi gh F a i r
S u p e r i o r N a t u r a l E n v i r o n m e n t Moderate High
A Safe, Well Maintained City Centre High High
Safe Downtown Residential Areas
High High
Good, Safe, Public Education Facilities
Moder at e F a i r
Ample Cultural and Sport Amenities
High
High
A Strong Hospitality Industry
High High
Being A Provincial Capital City
Low n / a
Effective Local Government
Low n/a
Strong Suburban Business Centres
Low High
=
*
*
*
*
*
* The seven factors business leaders rated as important
and
inadequate
in downt own Toronto are highlighted.
9
Questions:
In light of the current challenges and realities in downtown
Toronto:
B What actions can be taken to restore the health of the
downtown office market,
encourage new investment and
discourage the flight of jobs and investment?
B What characteristics,
features or facilities contribute
or would contribute to the attractiveness of the
downtown as an office location?
What detracts from the
attractiveness of the downtown?
B What public policies help or damage the
market and which are most important?
downtown office
10
FACTORS CONTRIBUTING TO A HEALTHY DOWNTOWN OFFICE MARKET
11
COMPANIES INTERVIEWED
(1) B R.B.C. Dominion Securities Inc.
Tony Fell, Chairman
A. Douglas McGregor, President, DSMarcil Realty
(2) B
The Toronto Dominion Bank
-Ronald Ruest, Senior Vice-President of Real Estate
-Dave Moore, Vice-President of Real Estate Operations
(3) B
Blake Cassels Graydon
-Jim Christie, Managing Partner
-Bob Taylor, Chief Financial Officer
(4) B Canadian Imperial Bank of Commerce
-John Doran, Executive Vice-President Administration & CFO
-Andy Kenyon, Senior Vice-President Taxation Division
(5) B McCarthy Tetrault
-Gary Wolff, Executive Director Finance
-Tim Armstrong, Counsel (representing McCarthy Tetrault)
(6) . KPMG
-Allan Makaryk, National Facilities Manager
(7) B Ernst & Young
-Mark ORegan, Regional Partner
12
CANADIAN INSTITUTE OF
PUBLIC REAL ESTATE COMPANIES
123 Edward Street, Suite 1210, Toronto, Ontario M5G 1E2 Telephone (416) 598-0694
Fax (41 6) 598-0779
September 22, 1995
DELIVERED
Golden Task Force
393 University Avenue
20th Floor, Suite 2001
Toronto, Ontario M5G 1E6
Attention: Karen Pianosi
Dear sir s:
RE: REGULATORY DUPLICATION IN THE PLANNIN
G PROCESS
1. EXECUTIVE SUMMARY
In this brief, The Canadian Institute of Public Real Estate Companies
(CIPREC) submits that substantial regulatory duplication presently exists within the GTA
planning process. This duplication occurs in both the processing of development
applications, and in the policy-making functions.
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The following possible
the planning process are advanced:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
- 2 -
solutions to the problem of regulatory duplication in
reduce the number of municipalities (and hence the number of planning
departments) within the GTA;
reduce the number of planning departments within the GTA, by consolidating
the departments at the regional level;
insist on better co-ordination between the planning departments within the
GTA;
eliminate the practice whereby regional municipalities routinely review the
planning decisions of local municipalities;
shift the approval of subdivision applications to local municipalities, so that
one municipality is dealing with related zoning and subdivision applications;
eliminate the blanket requirement that all official plans and official plan
amendments require approval by an additional approval authority; and
shift all policy making functions within the planning process to the regional or
GTA level.
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2. INTRODUCTION
The Canadian Institute of Public Real Estate Companies (CIPREC) has
prepared this brief on regulatory duplication in the land use planning process for submission
to the Greater Toronto Area Task Force (the Golden Task Force).
CIPREC is an important voice for the real estate development industry. Its
member firms include most of Canadas large publicly-traded investment and development
companies, large privately-owned real estate companies, trust companies, life insurance
companies and banks. Since its inception, CIPREC has participated extensively in the
discussion and formulation of public policy and legislation affecting the development
industry.
One of the Golden Task Forces objectives is to provide direction for the
future governance of the GTA, including the potential restructuring of the responsibilities and
practices of municipal governments. CIPREC believes that one of the many issues that
should be addressed in any such restructuring is the issue of regulatory duplication in the
planning process.
As described in more detail below, it would appear that:
B
there are 35 separate planning departments within the GTA;
B
these planning departments employ over 1,300 peop1e; and
B
these planning departments have annual operating budgets in the order of
$100 million.
These figures do not include the costs involved in administering the GTA-related planning
functions of the Provincial bureaucracy, nor the costs involved in administering the many
local governing bodies that are also involved in the GTA planning process.
In CIPRECS view, substantial regulatory duplication presently occurs in the
GTA planning process, resulting in delays and inefficiencies in the process, and in significant
costs to governments in delivering their planning functions. As opposed to the typical
situation where governments are forced to decrease levels of service when saving costs,
CIPREC believes that the level of service that governments deliver in the planning process
could be improved by eliminating or reducing regulatory duplication.
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1n the sections that follow, we will attempt to first outline the extent and
nature of regulatory duplication that presently occurs in the GTA planning process, and then
outline possible solutions to the problem.
3. REGULATORY DUPLICATION IN THE GTA PLANNING PROCESS
Regrettably, a coordinated approach to land use planning within the GTA
presently does not exist. To the contrary, planning within the GTA has become fragmented,
compartmentalized and complex, as three levels of government and, more significantly, their
constituent bureaucracies are directly involved in planning administration.
The Provincial tier of planning administration is comprised of a number of
Provincial ministries, most notably the Ministry of Municipal Affairs, and their associated
bureaucracies. The second tier of administration comprises the five Regional governments -
Metropolitan Toronto and the Regional Municipalities of Durham, Halton, Peel and York -
and their associated bureaucracies. The third tier comprises 30 local governments and their
associated-bureaucracies.
Each of the 35 GTA municipalities have, to varying degrees, their own
planning departments. As set forth in the enclosed Table 1, these planning departments
employ an estimated 1,300 individuals, and have annual operating budgets in the order of
$100 million.
The figures quoted above and shown in Table 1 are rough figures at best.
They were obtained from the various municipalities, and it is recognized that different
municipalities may include different functions within their planning departments, and that
some planning functions may occur outside of the formal planning departments. Indeed, the
employment and cost figures shown represent conservative estimates of the extent and cost of
the present GTA planning bureaucracy because planning has been very narrowly defined as
comprising only municipal and regional planning departments. The planning function,
however, involves portions of a number of other municipal and regional departments (and
provincial ministries) which are typically involved in the review of development applications
and, at times, in the policy-making aspect of planning as well.
The figures shown in Table 1 do indicate the significant size of the planning
bureaucracies that have developed within the GTA. It should be noted that these figures do
not include the expenses involved in administering the GTA-related planning functions of the
Provincial bureaucracy, nor the expenses revolved m administering the myriad of local
governing bodies that are also involved in the GTA process, such as LACACS or historical
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- 5 -
boards, housing authorities, conservation authorities, planning boards and land division
committees.
If the various planning bureaucracies were each performing different and
necessary functions, then one might conclude that there was not much cost savings to be
achieved from reforming the process. However, CIPREC believes that there is substantial
regulatory duplication occurring within the various planning bureaucracies. It believes that
this occurs primarily at two levels:
(i) the processing of development applications; and
(ii) policy-making.
(i) Processing of Development Abdications
The experience of CIPRECS members is that significant regulatory duplication
occurs in the processing of development applications, particularly official plan amendment,
zoning and subdivision applications. This regulatory duplication occurs because development
applications and related supporting material (including required technical reports) are
routinely scrutinized by not just one level of government and its planning staff, but by two or
three levels of government and their staff. For example:
B
B
B
traffic studies - traffic studies are routinely analyzed by a transportation planner at
both a local municipality and an upper-tier municipality, and sometimes
by a transportation plainer at the Ministry of Transportation. While
these planners may have different perspectives (e.g. the local plainer
will study the impact on local roads, and the regional planner will study
the impact on regional roads), it is inefficient for the same traffic report
and all its calculations and assumptions to be reviewed by two or three
transportation planners.
servicing reports - again, it is typical for technical servicing reports to be reviewed by
two or more engineers - a local engineer, a regional engineer, and
engineers at Provincial agencies.
environmental reports
- a myriad of environmental reports (dealing with soil remediation, air
quality, noise and vibration, water quantity and quality, stormwater
management, microclimatic conditions, energy conservation, and other
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- 6 -
issues) are typically reviewed not only by the Ministry of Environment
and other provincial agencies, but also by environmental planners at
local and regional municipalities.
- it is not uncommon for heritage issues to be analyzed not only by
LACACS or historical boards, but also by heritage planners at the
Ministry of Culture, Tourism and Recreation or at local or regional
municipalities.
- the affordability component of a proposed residential development
is often analyzed by planners at two or three levels of government, and
sometimes in contradictory ways.
Duplication in the processing of development applications occurs because of
the current legislative requirements and/or practices relating to the processing of development
applications, in particular:
B
the requirement that all official plan amendments be approved by approval
authorities;
B
the practice whereby zoning applications are processed by local municipalities,
but subdivision applications are processed typically by regional municipalities;
and
B
the practice whereby regional municipalities routinely review and comment on
the planning decisions of local municipalities.
Approval of Official Plan Amendments
Presently, every official plan amendment that is adopted requires approval by
another level of government. For example, the Official Plan of a local municipality typically
requires the approval of a regional municipality, and the official plans of regional
municipalities typically require the approval of the Province. In performing their approval
function, the approval authorities and their staff invariably review the same technical studies
reports, and perform a similar analysis as was performed by the local municipality. This
leads to unnecessary duplication of effort.
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In CIPRECS view, there is no need for this ongoing approval function with
respect to official plan amendments. The Province can and does exert influence over
municipalities official plans through the promulgation of Policy Statements under Section 3
of the Planning Act. Similarly, regional municipalities can and do exert influence over the
official plans of local municipalities by virtue of Section 27 of the Planning Act, which
requires local official plans to conform with regional official plans.
Some may suggest that, at the very least, a comprehensive updating of a
municipalitys official plan should be subject to approval by an approval authority. Even if
this were the case, the reality is that most official plan amendments are site-specific or area-
specific in nature. Certainly, for these amendments, there is no need for an upper-tier
approval authority.
It is quite common for rezoning applications and subdivision applications to be
submitted and processed concurrently. However, rather than one municipality processing
both applications in a co-ordinated fashion, the typical situation is that the local municipality
processes the rezoning application, and the regional municipality processes the subdivision
application. This inevitably leads to the two municipalities and their staffs duplicating each
others efforts. It would be far more efficient if one municipality processed both sets of
applications.
In CIPRECS view, the processing of a subdivision application is a
development control function which can and should be transferred to local municipalities.
Review of Local Planning Decisions
Aside from the specific examples noted above, regional municipalities
routinely review and comment on local planning decisions, such as zoning amendments. In
CIPRECS view, regional governments should refrain from a full review of local planning
decisions. Most of these planning decisions are local in nature, and do not require a regional
review.
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(ii) Policy-making
Many municipalities in the GTA have employees within their planning
departments whose sole or primary function is to develop policies for inclusion in official
plans, or as input into other aspects of the planning process. In other instances,
municipalities hire outside consultants to assist in the policy-making function.
Rather than developing a co-ordinated approach to policy making in the GTA,
it is typical for different municipalities to devote significant resources to studying similar
matters, and to develop similar or redundant policies. For example:
B
Housing Policies - In response to the Provincial Housing Policy
Statement, each local municipality within the GTA has developed its
own Housing Policy Statement, employing in each case different staff
or different consultants. While local circumstances do differ, the
reality is that very similar issues and very similar policies were studied
and developed within each of these policy statements. It would have
been far more efficient and far less costly if one co-ordinating body had
directed these studies.
B
Waterfront Policies - Notwithstanding the fact that the Waterfront
Regeneration Trust has been established by the Province to develop
policies relating to the GTAs waterfront, most if not all of the GTA
municipalities that abut the waterfront have done their own waterfront
studies. These studies invariably produce very similar policies with
respect to matters such as improving pedestrian access to the waterfront
and preserving environmental features.
B
Economic Development Policies - Many municipalities have their own
economic development departments, which inevitably leads to situations
where the Region is marketed in an uncoordinated and disjointed
manner, as recently evidenced by Vaughans City above Toronto
campaign.
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- 9 -
B
Industrial/Commercial Policies - Related to the issue of economic
development, many local municipalities develop their own sets of
policies to deal with protection of their industrial base or commercial
structure. The reality is that these policies can and should be
developed in a coordinated fashion at a Regional level.
B
Environmental Policies - Notwithstanding the fact that the Ministry of
Environment is responsible under the Environmental Protection Act and
other legislation for establishing appropriate environmental standards
and regulations, many GTA municipalities have their own
environmental planners, who establish their own sets of standards,
policies or guidelines with respect to matters such as air quality, water
quality, energy conservation, water conservation, soils remediation and
stormwater management.
B
Communitv Services - It is not uncommon for both local
municipalities and upper-tier municipalities to employ staff to develop
policies related to the required level of community services and
facilities to serve new communities.
B
Parks and Open Space - Almost every local and regional municipality
conducts extensive study and analysis in this issue. The result has been
parks standards which vary with every municipality.
B
Demographics - Almost every municipality engages in population and
employment forecasting as part of the process of preparing their
respective Official Plans.
Policy making is required in each of the areas noted above. CIPREC
recognizes that the local context within which policies are formulated varies by municipality,
and that policy-making should respond to local issues and problems. However,
notwithstanding differences in local situations, the appropriate policies do not really change
from one municipality to another within the GTA. Accordingly, it makes little sense for the
policy making function to occur at different municipalities throughout the Region. Rather,
policy making should occur in a coordinated fashion, at a regional or GTA level.
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-10-
An indirect result of regulatory duplication in the policy-making aspect of
planning has been a growing need to match expertise, particularly between the local and
regional bureaucratic levels. This phenomenon has occurred, and is occurring, in a number
of the larger GTA municipalities and regions, and is a contributing factor to the growing size
and costs of the planning bureaucracy. Matching expertise is a self-feeding process: for
example, the addition of one specialist at the upper level typically requires the addition of
another specialist of equal value at the lower level.
4. POSSIBLE WAYS TO ELIMINATE OR REDUCE REGULATORY
DUPLICATION
There is not one perfect solution that CIPREC can offer to deal with the
problem-of regulatory duplication in the planning process. Inevitably, the right solution will
depend in part on the manner in which the other issues being studied by the Task Force are
addressed. It is recognized that planning services are only one of the services provided by
governments, and that the mandate of the Task Force covers a much broader perspective.
CIPREC can, however, offer some possible solutions:
B
Reduce the number of municipalities (and hence the number of planning departments)
within the GTA. CIPREC is aware that a number of recommendations are being
made to the Task Force in this regard. If the Task Force were to recommend such an
approach, this would have as its natural and beneficial consequence the elimination of
many planning bureaucracies within the GTA.
B
Reduce the number of planning departments within the GTA, by consolidating
departments at the regional level. Even if the number of municipalities within the
GTA remains constant, the number of planning departments could be reduced. For
example, planning departments could be consolidated at the regional level, and
provide consistent and co-ordinated advice to both the regional government and to
each of the local governments within the Region.
B
Insist on better coordination between the Planning departments within the GTA. Even
if the number of municipalities within the GTA remains constant, and even if there is
no reduction in the number of planning departments, there are clearly opportunities to
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11-
B
B
B
B
reduce regulatory duplication. Upper-tier and lower-tier planning departments should
identify all situations in which they duplicate each others efforts (e.g. by each
reviewing the same traffic report), and they should then decide which of the two
would best perform the function.
Eliminate the practice whereby regional municipalities routinely review local planning
decisions. Most local planning decisions do not require any regional review.
Shift the awn-oval of subdivision applications to local municipalities. so that one
municipality is dealing with related zoning and subdivision applications. This
delegation could occur without any legislative changes to the Planning Act.
Eliminate the blanket recquirement that all official plans and official plan amendments
require approval bv an additional approval authority. This would require changes to
the Planning Act.
Shift all Policy making functions within the planning process to one coordinating
body. likely at the GTA level.
Yours very truly,
CANADIAN INSTITUTE OF PUBLIC
REAL ESTATE COMPANIES
Per:
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TABLE 1
I
City of Scarborough
I
Planning & Buildings 143
Economic Development 14
Planning 86.9
3,389,336
Planning & Ec onomi c Development 1,039,648
2,443,600
Planning & Buildings 9,%3,700
Economic Development 1,360,500
N/A
York Region
1,869,939
1,232.402
74,798
61,620
TOTALS I 1362.30
PRESENTATION TO GTA TASK FORCE
June 28, 1995
After introductions CIPREC spokesperson to indicate that this is an
informal oral presentation to be followed within 10 days by a written
summary of our comments.
We should advise, that CIPREC has commissioned 2 studies on property
taxes in Canada that form the general basis for our conclusions and
statements and recommendations to the GTA Task Force. We have
provided copies of these reports for your information. The CIPREC Tax
Survey information, a five year history of commercial property taxes in
Canada provides an important window on what has been happening since:
it started in 1988 before the recession and records the impact
of those difficult years.
the asset base $70 to $50 billion is a very significant sample of
Canadas urban commercial business environment.
the summary figures for Ontario and Alberta are in reality the
results of federal/provincial/municipal tax policy decisions on
CIPREC members assets in Toronto and Ottawa; and Calgary
and Edmonton.
We are pleased with the opportunity to meet with the Chair and staff of the
GTA Task Force and assure them of our willingness to work with them
and make available any data or information that they would find of value to
their efforts.
CIPREC OVERVIEW
TO PROVIDE AN UNDERSTANDING OF THE SCOPE AND
SIGNIFICANCE OF THE OPERATIONS OF CIPREC MEMBERS+
MEMBERSHIP
29 Members, National Focus
B
6 are public companies, the remaining 23 are major banks,
insurance companies, pension funds and private corporations.
MEMBERS ASSETS
Total assets at end of 1994-$52 billion (a decline from $70 billion
in 1990)
Ontario assets - approximately $25 billion
Alberta assets - approximately $6 billion
PROPERTY AND PROPERTY RELATED TAXES
- EXCLUDING INCOME TAX
SuMMARY RESULTS OF CIPREC MEMBERS TAX SURVEY 1988-
1992 INCLUSIVE
Total Non-Income Based Taxes, Municipal, Provincial, Federal:
In Canada - increased by 59% from $680 million in 1988 to over
$1 billion in 1992.
In Ontario - increased by 65% from $375 million in 1988 to over
$600 million in 1992.
In Alberta - increased by 17%, from $54 million in 1988, to
$63 million in 1992.
Municipal charges, property taxes, municipal approvals,
zoning etc...
Canada - increased by 42% in total or 9% per year
Ontario - increased by 53% in total or 11% per year
Alberta - increased by 17% in total or 3.5% per year
Development Related Charges
Canada - 13% of overall municipal charges in 1990, 1.5% in 1992.
Ontario - 20% of overall municipal charges in 1990, 2% in 1992
Alberta - 24% of overall municipal charges in 1990, 7% in 1992
(Reflecting the serious decline in development activity in Canada)
Note: In spite of this decline total taxes continue to increase.
Provincial taxes: (includes Ontario Commercial Concentration
Tax introduced in 1990 removed in 1993)
Canada - increased 189% over survey period
Ontario - increased 216% over survey period
Alberta - increased 39% over survey period
Federal Large Corporations Tax
Introduced in 1990 increased total taxes by an additional 6%
Note: In reality the rates of tax growth shown above for Ontario and
Alberta are the results of tax increases on the CIPREC members assets in
Metro-Toronto and Ottawa; and Calgary and Edmonton.
ISSUES TO BE ADDRESSED
URGENT
DECLINE IN THE URBAN CORE, need to:
B
To restructure governance, coordination and management of
the GTA and Environs. A number of options are under
discussion from a single entity, to removal of the Metro level
and re-allocation of its authorities to the constituent
municipalities, to possible arrangements between the two
extremes.
CIPREC favours a lean 2 level/tier government structure for
the GTA and regions that will facilitate over-all policy
leadership and coordination and allow those activities best
provided and managed locally, to be done so without
additional layers of bureaucracy.
B
Disentangle existing financial planning and management
systems to immediately reduce and eventually eliminate
wasteful competitive environment between municipal and
regional governments. All municipalities are the losers, as are
Ontario and Canada. The GTAs and Regions competitive
base must be re-established.
B
The existing three level micro-development multiple review
disadvantages the urban core. eg. Soil contamination requires
3 review levels and penalizes core properties relative to
perimeter lands.
B
Re-invent/restructure the basic fiscal/revenue systems to
establish a fair and equitable property assessment and tax
system for all three property classes.
At the same time:
B
Eliminate historical practice of applying different taxation
rates to different property classes. Residential versus
commercial and industrial and residential ownership versus
residential rental.
4
B
Remove social service/welfare funding from property
tax base.
B
Recognize that the use of the property tax base for
funding elementary and secondary schooling is
regressive.
Taxes Affect Behaviour and Property Taxes Destroy Investment.
In terms of cost and replacement financing for education, consideration of
potential savings/cost reductions, increased efficiency in administration and
use of facilities, as well as, new revenue sources is required.
The Task Force in order to redevelop and maintain the GTAs competitive
business base must make a commitment to finding new solutions to
education funding. Simple redistribution or reallocation of costs across
business will not solve the competitive problem.
In CIPRECS review, consumption taxes are entirely more preferable than
the continued use of taxes on investment which at best influences where
investment will go, at the worst causes investment to flee.
Redistribution of the education component of property taxes over the entire
GTA and Environs will create a blending that will result in the entire
region being disadvantaged competitively.
Commercial property ownership prefers to pay their fair share through
increased consumption taxes, user fees, income taxes and other property
tax replacement options.
Note: Business is a major consumer.
Elevated property taxes hit weak as well as strong businesses equally. The
proposed replacement taxes adjust to lower levels as business declines or
changes with less or no need for intervention.
5
THE PROBLEM
THE PROPERTY TAX WAS DESIGNED TO FUND
BASIC SERVICES TO PROPERTY. IT IS
DEFENSIBLE FOR THOSE PURPOSES.
IT IS INDEFENSIBLE AS THE PRIMARY SOURCE
OF FUNDS FOR THE MODERN URBAN REGION.
AT ELEVATED LEVELS:
1. IT IS REGRESSIVE.
2. IT IS ALLOCATIVELY INEFFICIENT.
3. IT IS MARKET DISTORTING.
4. IT IS INADEQUATELY ACCOUNTABLE.
5
0
IT HAS UNFAIR IMPACT.
6. IT IMPACTS CANADIAN COMPETITIVENESS
7. IT IS INEFFICIENT TO COLLECT.
8. IT IS INSENSITIVE TO CORPORATE HEALTH.
REFORMS REQUIRED
SEVERAL RECENT STUDIES HAVE CONDEMNED
THE PRESENT SYSTEM OF PROPERTY TAX,
PARTICULARLY IN ONTARIO.
REFORMS TO CREATE AN ADEQUATE SYSTEM
OF PROPERTY TAX INCLUDE:
1. RELATIVELY EQUAL ASSESSMENT CRITERIA
2. REMOVAL OF UNJUSTIFIED WEIGHINGS
3* GREATER USE OF FEES FOR SERVICE
4. SOCIAL COSTS FUNDED BY OTHER TAXES
5. REMOVAL OF STATUTORY EXEMPTIONS
ALTERNATIVE MEANS OF FINANCING
SCALE IS IMPORTANT. PROPERTY TAXIS CANADAS
2ND LARGEST TAX SOURCE. REMOVING JUST
EDUCATION WILL REQUIRE SAVINGS + NEW
REVENUES OF $8.3 BILLION IN ONTARIO ALONE.
(MUCH LESS ELSEWHERE)
THE FIRST STEP: COST REDUCTIONS OF EXISTING
PROGRAMS
PROPERTY TAX REPLACEMENT OPTIONS:
1. REFORM EXISTING SALES TAXES
2. A CARBON TAX
3. LOCAL INCOME TAX SURCHARGES
4. HOSPITALITY, GAMING AND ENTERTAINMENT
TAXES
5. LAND CONSUMPTION TAXES
Property Tax Assessment
Market Value Assessment (MVA) is the dominant tax assessment system in
North America and is consistently applied in Ontario with the exception of
Metro-Toronto.
The problem with MVA is not the assessment system or procedure - it
works more or less effectively in a wide variety of situations. The problem
is Metro-Torontos failure, for 40 years, to regularly re-assess across all of
the municipalities on an equitable and consistent basis. No assessment
system will produce an acceptable (to property owners) result in the short-
term. The only acceptable solution is an appropriate transition period or
phase-in over a 5 to 10 year period.
CIPRECS understanding of Unitary Value Assessment is that it is
theoretical with very little application in practice.
We draw to the attention of the GTA Task Force the following
Conclusions and Recommendations from Working Group Report on
Property Tax of the Ontario Fair Tax Commission:
Conclusion #4 Features of a Good Property Assessment System:
simplicity - the system should be designed for ease of
understanding by the tax payer;
clarity, visibility, explicitness - assessment methods should be
clear to and easily verifiable, by the tax payer;
impact on other public policy objectives - a tax should not
have a negative impact on patterns of urban development
and on factors influencing economic competitiveness.
Conclusion #7 Tax Mix and Equalization:
The most effective way to improve fairness of the local revenue
system in relation to the ability-to-pay criterion is to reduce the
level of property tax relative to other taxes.
9
Recommendation #7 Assessment Principles:
Assessments should be updated regularly;
Within a given class of property, like properties should be
assessed in like fashion.
Recommendation #48 Criteria for Transitional Arrangements:
That the broader equity goals of reform must be effectively
communicated and explained.
That local government financial reform must be as
comprehensive as possible, both to ensure that the
dislocation is worthwhile and to maximize the opportunities
for impacts to offset each other.
Shopping Centre Tax apportionment
CIPREC requests that the GTA Task Force include this unresolved
assessment issue in its overall review of the GTA tax systems. During
1994 the government of Ontario, working together with Shopping Centre
anchor tenants, smaller tenants (CRUS) and landlords reached an interim
agreement that provided for a formula which reallocates the benefit
received by each anchor on a mall by mall basis to the CRU tenants. The
Minister of Finance advised all parties involved that Bill 197, An Act to
Amend the Assessment Act had been passed and as a result approximately
$8 million in realty and business taxes would be assumed by the anchor
tenants. Other tenants taxes would decrease by the same amount.
CIPRECS understanding was that this was an interim agreement and that
an appropriate Committee would be established of government officials and
the three parties landlords, anchors and CRU tenants to establish a
permanent solution.
1 0
CLOSING COMMENTS
CIPREC is pleased to have had this opportunity to provide the GTA Task
Force with our thoughts on the issues under consideration, in your task, to
report on the potential for the Toronto region to become one of the worlds
pre-eminent cities in which to live, work and invest.
CIPREC wishes to conclude our discussions with the following summary
comments:
1. The Decline in the Urban Core of the GTA
a Critical and Urgent Issue
Restructuring of the governance of the GTA and environs to a
more efficient and effective form is essential, thus enabling
disentanglement of policy development, planning, management
and coordination including property tax and assessment
policies and systems.
2. A Reduction in Property Taxes is essential to Competitive
Renewal
The re-establishment and maintenance of the competitive base
of the GTA is premised on a comprehensive and economically
based redevelopment of the property tax assessment and tax
regime and a thorough examination of the options to replace
property taxes, particularly the education and social/welfare
components, due to their negative impact on the economy
and competitiveness.
3. Removal of Historical Assessment and Tax Inequities
This is recognized to be a major undertaking spread over
several years. However, it must start as recommended by the
Ontario Fair Tax Commission with a thorough and
comprehensive plan for change. The change to include fair,
equitable and market value based assessment systems, with
equal treatment of all property classes, thereby eliminating the
historical taxation differentials between residential,
commercial and industrial classes; and between owner and
rental residential.
1 1
PROPERTY AND PROPERTY RELATED TAXES
- EXCLUDING INCOME TAX
SUMMARY RESULTS OF CIPREC MEMBERS TAX SURVEY 1988-1992 INCLUSIVE
Total Non-Income Based Taxes, Municipal, Provincial, Federal:
O
In Canada - increased by 59% from $680 million in 1988 to over $1 billion
in 1992.
In Ontario - increased by 65% from $375 million in 1988 to over $600 million
in 1992.
In Alberta - increased by 17%, from $54 million in 1988, to $63 million
in 1992.
Municipal charges, property taxes, municipal approvals, zoning etc...
Canada - increased by 42% in total or 9% per year
Ontario - increased by 53% in total or 11% per year
Alberta - increased by 17% in total or 3.5% per year
Development Related Charges
Canada - 13% of overall municipal charges in 1990, 1.5% in 1992.
Ontario - 20% of overall municipal charges in 1990, 2% in 1992
Alberta - 24% of overall municipal charges in 1990, 7% in 1992
(Reflecting the serious decline in development activity in Canada)
Note: In spite of this decline total taxes continue to increase.
Provincial taxes: (includes Ontario Commercial Concentration Tax introduced
in 1990 removed in 1993)
Canada - increased 189% over survey period
Ontario - increased 216% over survey period
Alberta - increased 39% over survey period
Federal Large Corporations Tax
Introduced in 1990 increased total taxes by an additional 6%
Note: In reality the rates of tax growth shown above for Ontario and Alberta are the results
of tax increases on the CIPREC members assets in Metro-Toronto and Ottawa; and Calgary and
Edmonton.
Sheetl
Year
CPI-Ontario
% Change
(1986=100)
1986
1987
1988
19$9
1990
1991
1992
1993
1994
100.0
105,1
110.0
1 1 6.4
122.0
127.6
129.0
131.2
131,3
5.1 %
4.7%
5.8%
4.8%
4,6%
1 .1%
1 .7%
0.1 %
Page 1
130.0 130.3
Towards A Strategy For
Property Tax Reduction
An Opportunity for Action
Prepared For:
The Canadian Institute of Public Real Estate Companies
April 1995
Canadian Institute of Public Real Estate Companies
Towards A Strategy For Property Tax Reduction
INDEX
A) Towards A Strategy For Property Tax Reduction:
An Opportunity For Action
B) Property Tax Reform: A Statistical Analysis
c) Implementing A Property Tax Reduction Strategy
Appendix
An Annotated Bibliography on Property Tax
TOWARDS A STRATEGY FOR
PROPERTY TAX REDUCTION:
AN OPPORTUNITY FOR ACTION
Prepared for: The Canadian Institute
of Public Real Estate Companies
By: Gardner Church
York University
April, 1995
TOWARDS A STRATEGY FOR PROPERTY TAX REDUCTION;
AN OPPORTUNITY FOR ACTION
TABLE OF CONTENTS
Abstract
Executive Summary
Pg.
1
1
Part 1 - The Case for an Alternative to Property Tax
1.1 Evaluation of the Real Estate Value Based Tax
4
1.2 Appropriate Uses for and Reforms to the Property Tax
8
1.3 Alternative Sources of Revenue to Replace Property Tax 12
Part 2 - Developing a Strategy to Reform the Property Tax
2.1 The Need for a Partnership
16
2.2 Municipalities Need a New Tax Base
16
2.3 Potential Partners
17
2.4 Potential Opponents
19
2.5 Conclusion
20
Appendix
An Annotated Bibliography on Property Tax by Abby Bushby
TOWARDS A STRATEGY FOR PROPERTY TAX REDUCTION:
AN OPPORTUNITY FOR ACTION
ABSTRACT
This document outlines the need for fundamental reform of
property tax. It does not limit itself to a single perspective.
Rather, it makes the case that the economic, market, social,
fiscal and environmental objectives of our society would be
better served by removing human services and other non property
related services from the property tax. It identifies other
revenue sources which may be more appropriate. It examines the
political forces which would oppose reform and those which would
support it. It concludes that a strategy to significantly replace
property tax is feasible and overdue.
EXECUTIVE SUMMARY
Property tax is the largest uncontrollable cost facing many
owners of commercial property in Canada. In major urban centres
and the areas around them, it has become an onerous, market
distorting cost that in some areas often exceeds the entire rent
flow for the property. The ad valorem real estate tax has been
growing in Canada despite the recognition by analysts and public
finance bodies (such as the recent Fair Tax Commission in
Ontario) that it is a poor tax which fails many of the tests of
good taxation. It is a regressive tax with neither fairness nor
consistency as redeeming features. It is unresponsive to changes
in economic capacity. It distorts business decisions, encourages
urban sprawl, pinches the elderly and is difficult to administer
even handedly.
It is Canadas second largest source of public finances and is
growing. The property tax is the largest, in some cases virtually
the sole, source of revenue for Canadas local government system.
It funds our roads, environmental services, protective services
and in many Provinces,
the lions share of our human services -
education, health and social equity - at the local level.
After trailing the growth in income and other taxes for years,
the property tax has begun to grow in relative importance.
Perhaps the most disconcerting aspect of this form of taxation is
that it shows every indication of significant growth in the
future.
Federal and Provincial governments, whose revenues are derived
from a broad and largely progressive tax base, are entering a
phase in which costs are being
"unloaded" to junior governments
and grants and funding to junior governments is decreasing. The
recent (1995) Federal budget offloads over $7 billion to the
provinces and municipalities. Further offloading to local
governments by provinces is inevitable. Local government has
nobody to offload to except the property taxpayer. In time, this
progression will threaten the solvency of municipalities as it
has already affected the solvency of many taxpayers.
In Canada, taxation has been a centralized function of government
- that is it has not been departmentalized. Sources of revenue,
except user fees, are not usually associated directly with the
use of the revenue. Most tax revenue is paid into consolidated
government accounts and disbursed without regard to source.
However, the increasing dependence of one level of government on
a single tax - property tax - raises the issue of appropriate
uses for this tax source.
The property tax has some logic when it is used to fund services
to property such as roads, fire protection, planning,
environmental services. It is less defensible when it is used to
fund general community goods such as recreation, parks, libraries
and animal control which have limited relationship to property
ownership or use. It is completely indefensible and seriously
flawed as a principal source of funding for human services such
as education, welfare, aged care, day nurseries, and health
protection. Local government and residential and businesses
taxpayers would be better served by a significantly altered local
government taxation structure. A combination of fees for service,
consumption taxes and other direct taxes can and should replace
property tax as the foundation of local government finance.
Property tax should return to the role for which it was
invented - funding hard services and other property related
services for which user fees are deemed inappropriate.
Such a change to the structure of public finance in Canada will
increase the progressivity of taxation and better serve our
social service system through a more secure, more predictable and
fairer source of funds for the level of government that will
increasingly be called upon to supply these services. It will
reduce a serious distortion in the Canadian market place, reduce
the tax burden on low income Canadians, and enhance municipal
capacity to plan service levels.
Governments at all levels have long been aware of the sad state
of the property tax as a major source of revenue but have with
few exceptions done little about it.
Efforts to make property tax
fairer have been undertaken in every jurisdiction over the last
decades. Some jurisdictions have removed education and other key
social services from the base. But most, and in particular
Ontario, have chosen not to deal with the underlying problems
with the tax.
3
When all of the analysis and consideration of alternatives is
complete, property tax reform will still not happen without a
concerted political strategy. At its root, the system of taxation
that any society chooses is a function of the political processes
at work in the jurisdiction.In a distributed, technical and
representative democracy such as Canada, justice, fairness and
fiscal probity are often not enough to affect reforms. Political
reforms occur only when a coalition of forces in the body politic
agree on a direction and can satisfy levels of government that it
is in their interest to undertake reform.
No individual group can achieve the necessary reforms itself. In
the words of Candice Bergen its a matter of getting the most
for the least" - the most revenue from the fewest influential
voters. To achieve significant reform in the tax system a broad
cross section of interests that represent significant political
power must together advance solutions that are palatable to
government.
Fortunately, there are many powerful public interests in Canada
which also have reason to support a reform to property tax such
as advocated here. If they are to achieve reforms, they must join
forces. The paper discusses the reasons other groups in society
will be supportive of a major reduction of property tax in favour
of a fairer, more broadly based system. Potential support will
come from: municipalities and municipal associations, real estate
receivers and banks, environmentalists, boards of trade, urban
interests, poverty and social equity advocates, residential and
commercial renters, multiple unit residential owners, tax
theorists and policy experts, single family property owner
groups, cottage groups, seniors advocates, construction unions
and large scale peri-urban land holders.
To attract support from this disparate cross section of Canadian
political society, considerable prepatory work is required. It
will be necessary to build the case for reform with illustrations
of the effect of increased property tax compared to increases in
consumption and user revenue on each of these interests. This
modelling will not be particularly difficult, but will involve
priority setting and targeting strategies.
4
Part 1 - The Case for An Alternative To Property Tax
1.1 Evaluation of the Real Estate Value Based Tax
Very few subjects have been so thoroughly studied and changed as
property assessment and taxation in Canada. Its inception in the
late 19th century was as an extension of the long standing
tradition of allowing wealthy residents to avoid road work
(statute labour) by paying a fee so that someone else would do
the needed work. In its evolution, it has involved road frontage
charges, charges for indoor plumbing, electricity and extra
bathrooms. It has been a square foot tax, an historical value tax
and a market value charge.
It has been a political pork barrel, a
corrupted rewarder of elites, a punisher of political
incorrectness, a source of complex equalization formulae and the
cause of bizarre political events.
In spite of its checkered history, property tax has blossomed and
expanded to the point that it is now the second largest tax
source in Canada. Each Province has a different form of property
tax and uses it for different purposes. Regardless of the
differences among Provincial systems,
the property tax across
Canada is a much criticized and flawed instrument. It meets
neither theoretical nor practical tests of a good tax. For the
purposes of this paper, three reports in particular have been
relied upon. The Report of the Propertv Tax Working Group of The
Fair Tax Commission in Ontario (1994), an unpublished paper by
Harry Kitchen, Property
Tax Reform: A Time for Action (1995) and
a report by Enid Slack for the Canadian Urban Institute, Non-
Residential Property
Taxation and Competitive Advantage in
Toronto (1995). An extensive annotated bibliography has been
prepared to provide the determined reader with a wider variety of
sources.
This strategic overview is not the place for another scholarly
exploration of the merits of the property tax. The intention here
is to review the principal criticisms of the tax as it is usually
applied.
A. Regressivity
A progressive tax generates income in approximate proportion to
the taxpayers ability to pay. A regressive tax, takes
proportionately larger amounts from people with a smaller
capacity to pay.
Graduated income tax is progressive. Most
consumption taxes are progressive. It has been amply
demonstrated that property tax is in no way progressive and in
some ways seriously regressive.
5
Two of its most regressive features are highlighted in recent
reports. Enid Slack, in the report on the GTA referred to above,
demonstrated that multiple family units are taxed at an effective
rate of up to four and a half times the level at which single
family units are taxed. The Toronto Board of Trade in a recent
publication argued that companies making no profit or incurring
losses are subject to property taxes at a level equal to that
levied on profitable companies. In the most extreme instances of
corporate regressivity, the cost of property tax can in some
markets exceed the market rental value (or even the economic
rent) of the property. This alone is reason to reform the
property tax or reduce its applications.
AS CURRENTLY APPLIED THE PROPERTY TAX IS A REGRESSIVE
SOURCE OF GOVERNMENT FUNDING.
B. Allocative Inefficiency
An allocatively efficient tax will not cause economic decisions
to be changed as a result of a tax. An allocatively inefficient
tax will cause decisions to be changed as a result of taxes. The
Kitchen paper argues that the property tax is unevenly applied,
assessed on different bases, varies from jurisdiction to
jurisdiction and among classes within jurisdictions. As property
taxes move to high levels such as in urban commercial property or
multi-family residential units, they are clearly sufficient to
affect decisions. It may be in smaller centres or in areas where
property tax is not used to finance expensive social services,
that it is more neutral from this perspective.
AS PROPERTY TAX IS CURRENTLY APPLIED AND ASSESSED, IT
IS ALLOCATIVELY INEFFICIENT
C. Market Distorting
This is a concept similar to allocative inefficiency. It is more
specific, however. A market neutral tax will not affect real
estate business decisions. A market distorting tax will prejudice
an otherwise free market away from relatively higher tax rates. A
market distorting tax that adjusts the market in a way intended
by government is a legitimate policy tool. However, a tax which
has unintended or capricious and substantial effect on the market
is not desirable from any perspective.
The vagaries of property tax assessment and class by class
variations as documented in both the Slack paper and in the
Working Paper of The Ontario Fair Tax Commission are blunt
testimony to the market distorting effect of at least Ontarios
property tax system.
6
Most notable is the highly publicized effect of the over taxation
of commercial properties in the City of Toronto which is in large
measure credited with causing one of the two most extensive
corporate flights in Canadas history. This flight, which was at
least partly to lower tax suburbs, was directly counter to the
expressed interest and policy of both Provincial and local
governments which advocated compact urban development.
PROPERTY TAX, WITH ALL ITS VARIATIONS AND IMPURITIES, IS
MARKET DISTORTING IN WAYS UNINTENDED BY POLICY MAKERS
D. Inadequate Accountability
A tax is accountable when the payer of the tax can access the
services provided by the tax and exercise control over the taxing
body through a vote. An unaccountable tax is one that flows to
services that cannot be accessed by the taxpayer or which is
expended by a body over which the taxpayer has inadequate
democratic control. In a complex system, not all taxes will be
accountable. Corporate income tax contributes to social services
which a corporation cannot collect. Older and childless people
contribute to taxes that support education, although their
ability to access it is tenuous at best. However, when an
unaccountable tax becomes large and so unbalanced that it is
biased specifically against the taxpayers that cannot access most
of the services, accountability becomes a legitimate concern.
The Kitchen, Slack and Working Group papers each confirms that
property taxes are disproportionately applied against commercial
properties in order to finance human services that corporations
cannot access.
IN SO FAR AS COMMERCIAL TAXES ARE CONCERNED, THE
FINANCING OF HUMAN SERVICES FROM PROPERTY TAX IS
UNACCOUNTABLE AND PROBLEMATIC
E. Unfair Impact
While both regressivity and unaccountability are forms of
unfairness, the issue addressed here is the degree to which there
is a balance between the levels of property tax and the benefits
received. A fair tax impact will result in benefits being
received or available roughly in proportion to the amount paid.
An unfair impact will result when a taxpayer or group of
taxpayers pays disproportionately for a service from which the
taxpayer(s) do not benefit.
The Kitchen paper and the Working
Group both go to some lengths to point out that some taxes will
by definition have a disproportional benefit that is justified.
7
The cost to society for social assistance is the clearest of
these cases. It is absurd to advocate benefit based taxation in
such an instance. Oliver Wendell Holmes famous injunction that
"taxes are the price we pay for a civilized society provides the
rationale for broader society to bear the costs of social welfare
and other social goods.
Nevertheless, there are good grounds to condemn the property tax
system on the basis of unfair impact. The Slack paper documents
dramatically that in Central Ontario, Mr. Holmes price is being
paid by urban commercial and multi-family taxpayers out of all
proportion to a fair distribution.
A more evenly distributed tax
across a broader tax base is required to lend an element of
fairness to the way the non-income tax portion of human services
is financed in Canada.
THERE IS STRONG EVIDENCE THAT PROPERTY TAX IMPACT IS
UNFAIR TO THE EXTENT THAT
HUMAN SERVICES ARE FINANCED
FROM IT.
F. Negative Impact on Competitiveness
A tax which negatively impacts on competitiveness, imposes costs
above and beyond the cost of services consumed on a producer
which is competing in a broader market. A tax which does not
impact on competitiveness is one which is equivalent to the value
of the local government services consumed. The Kitchen paper
contains an excellent analysis of the impact of the current
system of property tax on competitiveness (p20). Kitchen
acknowledges the care that international comparisons require.
There are many differences among the tax and social policy
climates in various countries.
Even accounting for these
variations, Kitchen concludes that in this borderless, commercial
era . . .
"In terms of a Canadian firms ability to compete in
the global economy, the current application of the
property tax has the potential for inhibiting
competitiveness more than any other tax including the
corporate income tax and payroll taxes."
CURRENT LEVELS OF PROPERTY TAX ARE POTENTIALLY STIFLING
TO THE COMPETITIVENESS OF CANADIAN FIRMS
G. Efficiency of Collection
A tax is efficiently collected when the cost of administering the
collection system is low and the predictability of the tax due
from any taxpayer is high.
While comparative costs and
efficiencies of various taxes are not readily available, the
Ontario Fair Tax Commission noted a problem with property tax
associated with establishing value.
8
In the mercurial world of real estate prices, the only reliable
way to establish value is to sell the property to a willing
buyer. Any other supposition of value will be flawed. The recent
well publicized history of unpredictable spot price increases and
decrease in cities such as Vancouver, Ottawa and Toronto
demonstrates the weakness of property value as a tax base.
Further, because of the quixotic nature of real estate value, the
cost of maintaining defensible assessments has been mounting. In
some areas, systematic appeals are causing large public costs to
be incurred to defend unsuccessfully the integrity of the tax
base. The erosion of the tax base then forces more costs onto the
public to create new assessments and increases unpredictably the
burden on other taxpayers. If the property tax were smaller and a
less critical cost to residents and businesses, the effort to
reduce assessments might abate, thus reducing the inefficiencies
of collecting the property tax.
THE PROPERTY TAX, AT CURRENT LEVELS, IS INEFFICIENT TO
COLLECT AND UNPREDICTABLE AS A TAX BASE
In summary, the property tax fails most of the tests of a good
tax. The methods of assessment, variation in practices and the
funding of human services from that tax base are the main reasons
for its dismal showing.
1.2 Appropriate Uses for and Reforms to the Property Tax
The above evaluation does not amount to a condemnation of
property value as a basis of taxation. It does argue strongly for
reforms. Both the Kitchen paper and the Fair Tax Commission
envision a role for a fairer, more carefully applied property
tax. They argue for more consistent assessment practices and some
equalization of impact among the classes.
Designing a reformed property tax system is a complex and precise
process. This paper is not intended as a detailed guide to that
process but rather as a policy instrument to point in more
appropriate directions. An adequate system of property tax would
have the following characteristics not now reflected in most
property tax systems in Canada.
A. relatively equal assessment criteria used throughout a
Province and where possible, the Country
B. removal of the artificial weighings that inflate multiple
unit housing and commercial and industrial taxes:
C. removal from the property tax of the costs of services where
fee for service (beneficiary pay) is more logical and not
damagingly regressive eg.
water and sewer costs;
9
D. removal from the property tax of the costs of human
services, in particular social welfare, social services and
education;
E. removal of exemptions from property tax.
A. Relatively equal assessment criteria
There should be relatively equal assessment criteria for all
classes of property throughout a Province and even the Country.
Radically different assessment levels will lead inevitably to
market distortions and inequities.
Since the reforms suggested
would reduce property taxes by as much as 70% in some parts of
the country, it should be possible to move to uniform assessment
in most jurisdictions without causing severe dislocation.
Virtually all taxpayers will receive a reduced property tax bill
(except currently exempt properties that the governments decide
not to subsidize explicitly) . A degree of equalization of
assessments will change only the size of a the reduction each
taxpayer receives.
B. Removal of tax rate weighings by class
There is no justification to charging multiple-unit residences
more taxes per dollar of value.
Multiple resident taxpayers on
average have significantly lower incomes and on average consume
less of the municipal hard services costs. An argument is put
forward by proponents of this discriminatory practice that
multiple family residents increase welfare and social costs and
therefore should pay more. That argument is tantamount to
suggesting that welfare recipients should pay for their own
benefits. Kitchen explains this practice as a cynical political
convenience.
Rather, it almost certainly reflects the relative ease
with which governments can impose higher effective tax
rates on certain categories of property; for example
owner occupiers of single detached properties tend to
be more vocal in their protests against property
taxation than are renters who are generally unaware of
the property tax liability on their rented quarters. . ."
Equally, the higher weighting on commercial and industrial taxes
imposed in every province are difficult to justify. Most
commercial and industrial properties consume fewer services from
a municipality than do residences, so benefit received cannot be
used as a rationale. More significantly, the higher rate charged
to businesses (including, in some provinces, a hefty business tax
surcharge in addition to heavily weighted taxes) is not at all
sensitive to the affordability of the taxes. Business creates
virtually all jobs in Canada. There can be no rational objection
to taxing and taxing substantially the profits of successful
firms or the goods they consume.
* * TWSASTRATEGY FOR PROPERTY TAX REDUCTI ON B * *
10
However, to surcharge through discriminatory weighting a major
element of production like real estate, without regard to whether
the firm is profitable or marginal is self defeating and
destructive both to employment and to new real estate investment.
C. Removal of beneficiary pay services from property tax.
Some services provided by local government are economic goods,
whose consumption can be fully or partially placed on a market
footing. Transit, road pricing, parking, water rates for water
and sewer, garbage generation,
licensing and approvals, building
and fire inspections, electricity, private forestry, special
services, testing, recreational and cultural facilities and
programs and housing can all be better managed if some or all of
the cost is borne by the consumer of the service. In some cases
where excess consumption is to be discouraged, (eg garbage
generation) the fee may be for amounts above a limit. Similarly,
a degree of subsidy from taxation for some of these services for
the "Holmes reason" may be justified. However, it is fairer, more
environmentally responsible and more fiscally prudent to charge
fees for the consumption, or excess consumption, of many
municipal services. This recommendation should not be confused
with the issue of privatization of services which is a more
controversial and less clear cut issue.
These reforms will return the property tax to a useful and still
significant source of local government revenue. It will allow it
to meet virtually all of the tests of good tax practice and
permit the use of more appropriate revenue sources for human
services.
D. Removal of the costs of human services from the property tax
In addition to the compelling arguments raised in the preceding
discussion there are a series of practical reasons to find new
and broader tax bases to finance human services. Canada is a
country which has urbanized and is further urbanizing to a
greater extent than almost any other major country. In this
process, our cities have developed a capacity to serve and
support low income and challenged people. Thus a large and
disproportionate number of human service recipients are in our
city centres. Whether they are immigrants from abroad, migrants
from within Canada or local residents,
the city is the location
where their needs can come closest to being met. The city, thus,
performs a social service for our other communities and should
not be called upon to finance these services out of taxes
specific to city properties.
The flip side of this is that
residents of suburbs, towns,
villages and rural areas should pay
through a broader tax base for an appropriate portion of these
services.
11
Similarly, there are poor rural parts of the country that have a
disproportionate level of human service expenditure. In most
cases these areas have already been relieved of the local portion
of these costs but to the extent that they remain on the
property tax, they should be removed.
A slightly different rationale, in addition to the tax policy
arguments already discussed, applies to the removal of education
from the property tax. Kitchen and the Working Group demonstrate
that the primary beneficiary of a quality education system is
society as a whole. In a mobile society, high quality education
will have a positive affect everywhere. Well educated people
enrich the society wherever they live and regardless of where
they receive the education. They argue that there is also a local
benefit from education services and therefor cause to raise some
of the funds locally.
Four provinces have largely or entirely abandoned a local
contribution to education. The rest believe that there is value
in local administration of the education system and the principle
of accountability and efficiency requires that a local cost be
imposed. It is not necessary for the purposes of tax reform to
centralize the payment of and responsibility for all education
costs. If there is to be a local derived portion of education
costs, it is critical that it be visible and clearly the
responsibility of the education governing bodies to raise and
manage those funds effectively.
The property tax is the domain of municipal institutions and they
levy and collect the entire property tax. It has been widely
argued, particularly in local government reviews, that education
authorities are not adequately responsible for the local taxes
they spend because they levy them on the municipal tax base and
thus mask their accountability. To the degree that some education
costs are to be locally financed, they should be raised on a
progressive and separate tax base.
E. Removal of property tax exemptions
Currently a host of properties are fully or partially exempt from
property tax. These tax expenditures, similar to the tax
expenditures under the Income Tax Act are much less public, much
less accountable and much less logical than those expenditures
that occur as a result of local political debate. It is
reasonable for governments to subsidize various classes of
property eg municipal property, schools, other public property,
productive farms,
churches and golf courses. They should do so as
compassionate cases are now handled, through explicit,
accountable forgiveness not a fudged tax rate.
12
Tax free land leads to institutional hoarding. Since many public
sector agencies and some charitable institutions do not pay
property tax, there is less economic need for them to husband
their land resources wisely.
While a community will support
effective agencies and public land holdings by granting them tax
free status, land holdings which are not explicitly accorded this
protection should be subjected to the discipline of taxation.
The issue of taxing public lands is a special case. There is a
huge waste of land in our urban communities as a result of cost
free or cut rate land takings by government= These occur when
property is developed or re-developed and local governments have
approval levers which force owners
to accommodate land taking
demands without any countervailing pressure= Boards of education
in some areas have demanded particularly absurd quantities of
land in return for granting approvals.
As much as 30% of the land
base of new subdivisions can be consumed by land takings above
actual need. This practice causes urban sprawl, unsafe
neighbourhoods, and increases the cost of new housing.
It is reasonable to charge property tax on all public lands.
Because property tax is spread among two
or more local government
bodies, a portion of the tax paid on public land would leave the
control of the jurisdiction that pays it.
Thus taxation on these
lands will effectively discipline irresponsible use of land
takings.
1.3 Alternative Sources of Revenue to Replace Property Tax
If the property tax is to be reduced by up to 75 % in major
cities and by less elsewhere,
a significant new local source of
revenue is required.
Fees for service should provide some of the
replacement funding as discussed above. But a considerable
shortfall will remain, particularly in major urban regions.
There is no easy answer to this challenge. Obviously any source
of revenue proposed should be examined against the same practical
and theoretical tests to which the property tax has been
submitted. This paper will not attempt this onerous task.
Instead, it will review a number of tax sources which are worthy
of examination. None of these alternative sources can be
recommended without testing and modelling. The purpose is simply
to indicate a range of possibilities.
In the final analysis a
balance of these may be used and in different circumstances
around the country, the balance may be different.
A. Harminize provincial sales taxes and GST on
and permit municipalities to charge a small
local option.
13
a broader base
percentage as a
There has been considerable debate about broadening the base of
the sales and GST taxes. This would allow a lower rate to be
charged and would produce a more allocatively efficient tax. As
well, merchants and consumers would have a significantly reduced
administrative problem calculating two tax levels and determining
what items attract which tax. The principle argument against
broadening the base to include food, drugs, homes, medical care
and other exempt products and services is the impact on low
income people of such a tax on necessities. There are
administratively superior and theoretically better ways to cope
with equity concerns than to exempt everybody because of a
concern for a minority. The sales tax credit is an example of
such a vehicle.
Allowing local governments to add a small surcharge (say up to
1.5%) on the new centrally collected, blended sales tax would
appear to meet many of the criteria for a good tax. It would be
reasonably progressive in that higher earners consume more than
lower earners. It would be allocatively efficient as long as the
differences in tax levels among regions was slight. There seems
to be no reason to believe it would be market distorting. It
would be accountable. As a direct user cost, it would be a fair
tax source. It might, added to our already high consumer tax
rates, contribute to a competitiveness problem.
This option is also attractive because it i s a tax on consumption
not on gross earnings or profit. In a country with a high
marginal income tax rate and which needs savings and investment
to help it finance huge public debts,
a tax on consumption is
superior to increased income tax levels. Another advantage such a
tax may have over income tax is that it may be more difficult
evade.
B. Permit a small local tax on carbon fuel. To avoid market
distortions it might be appropriate to legislate a minimum
a maximum municipal rate.
The cost of carbon based fuels in Canada is low and our usage
rate is higher than all but a few nations. Excess consumption
these fuels is the principal cause of air pollution on the
to
and
of
continent and the rate of-consumption is higher than our reserves
can sustain. Such a tax, like any consumption tax meets most of
the criteria for a good tax except market distortion - and
distortion of that market is desirable.
14
C. Permit a small, local surcharge on incomes
While worthy of examination, this tax appears problematic for
the obverse of the reasons a consumption tax is attractive. By
taxing all earnings rather than spending, it is more allocatively
efficient and it is certainly progressive but its propensity to
discourage savings and investment may offset these advantages.
D. Permit local hospitality, sports, entertainment and gaming
taxes
These potential sources of revenue are commonly used in the
United States and are well worth examination. They have the
advantages of being consumption taxes discussed above but they
also have the possibility of being market distorting and
affecting the competitive climate. They are politically
attractive because they are taxes on discretionary expenditures.
E. Permit an excess land consumption tax in urban areas and an
idle land consumption tax in rural areas
This is a concept that has enormous attraction to advocates of
efficient use of land. The theory is that ad valorem property
taxes rewards low density sprawl because land values are lower
away from the core. There is a strong economic, environmental and
social argument to support reducing urban sprawl. Thus a tax that
charges a premium to urban residences with above average amounts
of land per unit and businesses that have above average amounts
of land per employee or per dollar of sales is attractive.
A similar but obverse argument applies to rural lands. It can be
argued that lands should be in production, even if the product is
oxygen from growing trees. Owners of lands which are not used for
environmental or economic products could then be taxed. A
variation of this argument is that rural residential development
is undesirable and therefore a tax could be levied on units that
have too little land.
This potential tax source has been discussed in various forums
since Henry George explored it at the turn of the century but
apparently it has never been adequately researched. It would
therefore be inappropriate to speculate on the utility and
quality of such taxes without more research.
F. Cost Reduction
This section would not be complete without mention of perhaps the
most important mechanism which could help make up for the loss of
property tax revenues proposed.
While local government is perhaps
the most efficient and least wasteful level of government, there
are opportunities to significantly reduce costs.
15
Canada is famous for its complex governing arrangements. Some of
these may be necessary to manage effectively this large and
sparsely populated place. However, the passing of the industrial
age has heralded a re-engineering of virtually every enterprise
except government. The hidebound mechanics of bureaucracy should
give way to more cost sensitive and coherent management systems.
Initiatives of this type are underway in a few Provinces, most
notably Alberta. Particularly encouraging is the revision of
enabling legislation (such as The Municipal Act) to permit
municipalities to adopt more aggressive and efficient management
processes.
The purpose of this part of the paper is not to justify any
particular source of taxation to replace the income lost by the
reductions to the property tax. Rather, the intent is to
indicate that many superior forms of taxation could be chosen
with fewer problems than property tax generates.
There is considerable evidence to suggest that the reduction of
the property tax and replacement of the funds through one or more
of the mechanisms mentioned will significantly improve local
government and the tax system it administers. Such action will
also reduce the injustices and distortions that now plague the
local government tax system.
16
Part 2 Developing a Strategy to Reform the Property Tax
2.1 The Need for a Partnership
The process of major political reform has changed in the last
decades in Canada. Not long ago, an organization with economic
power might have succeeded in changing tax policy by carrying out
good research, explaining the need to change to government, and
then assisting in drafting the reforms. Now however, the tax
policy field, like many others,is full with special interest
groups, each resolutely pursuing a focused agenda. Major change
will only occur if a cross section of special interests can come
together and agree on appropriate change. Then, instead of
government being confronted with a babble of conflicting demands,
it can respond carefully and cooperatively to a broad and
collective group.
Today, no component of society has prior claim to governments
attention. Social advocates, economic advocates, environmental
advocates and advocates for local communities all have succeeded
in making their claims legitimate in the eye of the public. If
the economic lobby on governments is to have any chance in
achieving the reforms it seeks,it will have to join forces with
others in the other fields of public advocacy.
A more cynical description of the political context is that in an
era when governments are hard pressed to pay interest on debt,
proposals for major tax changes will be measured one vote at a
time.
2.2 Municipalities Need a New Tax Base
For the last twenty-five years Canada has lived beyond its means
and is approaching a grim accounting. Public sector cost
reductions will be as routine in the next decade as double digit
increases were in the Trudeau years.
One effect of this difficult
process will a significant increase in budgetary pressure on
municipalities. The recent federal budget, in addressing one of
the few remaining areas of discretionary spending, promises to
transfer $7 billion less to provincial governments in the coming
years. Even so, a $40 billion deficit will be incurred.
Similarly, provinces are reducing transfers to local government.
But local government has nobody other than the property taxpayer
onto which it can offload costs.
This makes local governments
very nervous. It would appear that their taxpayers will be
absorbing increase upon increase to deliver services formerly
supported by income tax.
17
Municipal leaders know that the property tax will not support
this inflation in costs. Even the existing base of property tax
is threatened. As commercial real estate is faced with increased
tax rates on uneconomic stock, tax receivables will climb with
little hope of collection. Already, in the Toronto area,
difficulties with the tax base have caused serious public debate.
Municipal leaders have been demanding that some or all of the
costs of human services be removed from the property tax so they
can meet the basic needs of their communities.
With three provinces already having removed human services from
the property tax and strong support for similar measures building
elsewhere, the time is propitious to build a cross sectional
coalition to support these reforms
2.3 Potential Partners
Which groups in society else should want the property tax reduced
in favour of more direct consumption taxes? The answer to this
question involves research and consultation. What follows is an
outline of some interests which appear to have reason to support
the changes proposed. Whether the groups actually come to support
the proposed property tax reforms or a version of them will
depend only partly on the merits of the proposed direction.
Important also will be how they perceive the issue, who the
perceived proponents are and the political consequences to them
of participating.
A. Creditors, Real Estate Receivers and Banks
Sadly, much of Canada's commercial real estate portfolio is in
the hands of creditors. They have an immediate and significant
interest in relieving their properties of a large portion of the
property tax that makes their portfolios unmarketable. They are
mute testimony to the inappropriate burden that unprofitable
real estate is bearing.
B. Boards of trade
There has been an increase in concern recently from advocates of
business in major cities that current and future tax rates are
rendering Canadian cities uncompetitive locations. These
interests will be interested in ensuring that any replacement tax
is less market distorting than the current property tax.
C. Environmentalists
Urban sprawl is one of the most significant contributors to
environmental damage and pollution.
The increased use of the
private auto in the suburbs is the largest single contributor to
air pollution and elevated carbon dioxide levels.
18
More importantly the settlement pattern in suburban areas is too
sparse to permit transit to be effective. Sprawl also results in
unnecessary loss of natural areas and foodlands.
The property tax is one of the two most direct causes of urban
sprawl. Property taxes punish efficient use of land. The more
dense the location, the higher the market value per square meter
of soil and the higher the property tax. Environmental groups
will support a move away from value based property tax to a
consumption tax that enforces more sustainable settlement
practices.
D. Urbanists and urban groups
Modern day "Jacobites", that is the supporters of Jane Jacobs
definition of livable cities, will, and have, strongly advocated
a reduction in property tax. Like environmentalists, they will
want to study potential replacement taxes for their effect on
urban livability. Although small in number, this is an growing
and increasingly influential interest in the community.
E. Poverty groups and social equity advocates
The gross over taxation of multiple family dwellings has been an
issue with social advocates for years.
They will be interested in
ensuring that any replacement tax is progressive. They will also
want to find a vehicle that will permit most of the reduction in
taxes to be passed through to tenants.
F. Women's groups and gender equity advocates
Because women occupy multiple family housing disproportionately
relative to men, particularly as single parent families, gender
equity advocates will support a reduction in property tax -
subject to the same conditions as the poverty groups will impose
for their support.
An additional interest for gender equity advocates may be the
role of property tax in creating and maintaining areas that are
hostile to the interests of low income women. Urban sprawl is
perceived to have this effect and to the extent that property
taxes spawn sprawl, they may support change.
G. Renters and Leasers
Both those who rent residential multiple family units and those
who rent office and commercial space are overtaxed if the market
permits those costs to be passed on. They will support a
reduction of the distortions of the property tax.
19
H. Commercial and Multiple Unit Residential Owners
Their interest in this issue is intense. They are significantly
over-taxed. Commercial real estate and multi-family residential
properties are damaged by property tax levels through different
mechanisms but the results are the same - reduced incentive to
invest, negative cash flows and serious liquidity challenges.
I. Homeowners groups
The spectre of rapidly rising property taxes over which they can
exercise little control may cause these groups to support removal
of human services from property taxes in favour of a tax over
which they have discretional power. On the other hand, these
groups represent the beneficiaries
of the over-taxation of other
property types.
J. Construction Unions
Earlier, it was argued that taxes on consumption
the incentive to invest. Unions will examine the
proposition to determine if increased investment
and if so, support it.
do not distort
reform
is more likely
K. Large scale land holders
If the-replacement tax creates a more predictable impact than the
present property tax regime, large scale land holders will
support reform. There is not currently enough data to make an
informed judgement about how and to what degree they might
benefit.
This list of potential supporters of the kinds of reform to
property tax considered in this paper illustrates that it should
be possible to build a coalition among local government,
environmental, social and economic groups to explore and
ultimately advocate the reform of the property tax.
2.4 Potential opponents
Who wants to prevent erosion of the property tax base? Because
of the number of variables involved in this discussion, it is
difficult to predict from which quarters opposition will come.
Boards of education will resist change until they are assured
that replacement sources of revenue are feasible and
satisfactory. Provincial governments will be reluctant to make
the requested changes because they involve broadening the
municipal and local education tax base in tax fields
traditionally occupied by provinces.
Businesses that have
relatively little exposure to real estate but large consumption
patterns such as
airlines may oppose the reforms if they see that
the replacement tax will raise their costs.
20
2.5 Conclusion
This preliminary strategic overview has demonstrated
that the property tax is not an appropriate tax base
from which to fund human services. It has reviewed the
suitability of other potentially superior sources of
funds. It has argued that a coalition of forces in the
community should support this view and it has suggested
some considerations that should be borne in mind when
building a coalition.
It is not a definitive report.
There is a need for considerable research, testing of
impressions and wider participation in the preparation
of a final strategic outline before action is
undertaken on the directions suggested here.
PROPERTY TAX REFORM: A TIME FOR ACTION
Prepared for: CIPREC
123 Edward Street, Suite 1201
Toronto, M5G 1E2
Table of Contents
A
B.
c.
D.
E.
F.
Executive Summary
Introduction
Interprovincial Comparison of Property Taxes
Role for Property Taxation
C.1 Fairness or Equity
C.2 Allocative Efficiency
C.3 Accountability
Property Tax Concerns
D.1
D.2
D.3
D.4
Should Property Taxes Fund Education and Social Service?
a) social services
b) Education
Inequities and Inefficiencies Created by Uneven Assessment
Practices
Non-Residential Versus Residential Properly Tax Rates
Variation in Non-Residential Property Taxes Between Canadian
and American Jurisdictions
Evaluation of Property Taxation
E.1 Benefits Received Basis for Taxation
E.2 Effective Tax Rate Differentials and Problems Created
E.3 Discrimination Against Non-Residential Property
E.4 Oversupply of Municipal Services
E.5 Non-Residential Property Taxation and Competitiveness
E.6 Differential Effective Tax Rates on Residential Properties
Reform of Property Taxation
i
1
2
6
6
7
7
8
8
8
9
11
14
16
18
18
18
19
20
20
21
22
23
References
Executive Summary
There is wide variation in the extent to which local property taxes are used to finance education and
social services across Canada. In a few provinces, these services are funded by the provincial
government; whereas, in other provinces, funding is shared by provincial and local governments.
This begs the question of the role that property taxes ought to play in funding local services. For
services where specific beneficiaries can be identified and where spillovers (benefits or costs that spill
over into neighbouring jurisdictions) do not exist, user fees are generally deemed to be the fairest, most
efficient and accountable means of financing. Examples include water, sewage, solid waste, transit, etc.
For services that provide benefits of a collective nature for the local community but for which
individual beneficiaries cannot be identified property taxes may be the fairest, most efficient and
accountable financing instrument available. Local streets roads, sidewalk streetlighting police and
fire protection are examples of services that provide this kind of general benefit. For services that are
primarily income redistributional in nature and/or do not provide benefits of a specific or collective
nature for the local community, funding responsibility should rest will the provincial and federal
governments. Examples include social services and education.
Even though the property tax is one of the oldest taxes in existence, it continues to generate a number
of concerns, not the least of which revolves around whether property taxes should fund social services
and education. Further concern has been expressed over uneven assessment practices as they apply to
different property types. Finally, the differential tax on residential properties of different types and the
higher tax on commercial and industrial properties and the implications that this has for Canadas ability
to be competitive in the global economy has been the subject of recent discussion.
These concerns have been the subject of a number of provincial reform commissions and major
committees over the past three decades. Unfortunately, many of their recommendations to correct or
i
alleviate these problems, especially in Ontario, have never been implemented. More recently, however,
the threat of citizens protest and the potential for a taxpayers revolt has renewed the urgency for
government delivery of services in a fair, efficient and accountable manner. To achieve this in the
property tax field, it is critical that provincial governments enact a number of reforms if they have not
done so already. Of a more technical nature. it is important that:
all properti es (regardless of class or type) be assessed and taxed at a uniform percentage of
market value;
the current practice of overtaxing certain properties (commercial. industrial and multi-unit
residential be eliminated b
ecause it is unfair, inefficient and lacks accountability;
variable mill rates be implemented with differential rates applying
to different property types
based on the cost of services consumed by each property type.
the current practice of overtaxing commercial and industrial properties be eliminated in order to
enhance a Canadian firms ability to be competitive in the global economy.
Oh the policy side and of utmost importance. it is critical that the following two
recommendations be adopted in provinces that have not already done so.
These
recommendations would lead to a more progressive and fairer means of financing both social
serivces and education. Specifically,
social service funding should be removed from the property tax base;
the cost of elementary and secondary schooling should be removed from the property tax base
and funded from alternative revenue sources.
ii
A. Introduction
In every Canadian province over the past few years, a variety of provincial initiatives have been
put in place that have had a significant impact on local governments. In particular, the
combination of reduced provincial grant funding and downloading, to municipalities, of a variety
of provincial programs have increased pressures on the local revenue base. This pressure has
arisen largely because of political difficulties of eliminating a service or services (regardless of
whether it was initiated by the province or local government) to which citizens/taxpayers have
become accustomed and the subsequent desire to find ways of financing its continued existence.
This increased pressure on the local revenue base has led local officials, in many municipalities,
to reconsider ways in which their public services are financed and the local user fee or property
tax charged for many of these services. The difficulty facing municipalities in this exercise,
however, is compounded by the fact that they are creatures of the province and significantly
constrained in their actions. Grant revenues are set by more senior levels of government and
municipalities only have access to one tax of any real importance; namely, the property tax.
User fees, the other major source of locally generated revenues, are generally at the discretion
of local government and have been increasing in importance as a financing instrument.
The current system where local governments only have access to one major tax raises a number
of issues, not the least of which is the appropriateness of using property taxes to finance the
delivery of local government services. In particular, this paper will address the following:
B
Interprovincial comparison of property taxes for municipal services and education.
B
What is the appropriate role for property taxation in financing local government services?
8
Is the tax fair, efficient and accountable as an instrument for financing local
government services?
B
Should property taxes be used to fund education and social services?
B
What are the inequities and inefficiencies created by uneven assessment practices?
B
What are the implications of imposing differential property tax rates on residential and
non-residential properties?
1
B
What reforms would improve the current system of property taxation?
B. Interprovincial Comparison of Property Taxes
Property taxes are used to fund a variety of services delivered by local governments across
Canada. For the most part, these taxes fund either all or a portion of the costs for major services
such as fire, police, parks and recreation, libraries, public transit, roads and streets, sidewalks,
street lighting, etc.. Less consistency is observed in the extent to which property taxes are used
for funding social expenditures including social services and education (elementary and
secondary). For example, a portion of social service expenditures is funded from local property
tax revenues in four provinces (Nova Scotia, Ontario, Manitoba and British Columbia) and
entirely from provincial funds in the remaining provinces.
Elementary and secondary education in Canada is the responsibility of provincial governments.
Local school boards generally deliver educational services. The main sources of funding for
school boards are property taxes and provincial grants. These grants are composed of general
provincial revenues which include income taxes, sales taxes (except in Alberta) and in some
provinces, a provincial property tax. The predominant trend in education finance over the last
decade in Canada has been towards centralization and this is noted in Table 1. Although not
explicitly noted in the table, the following three features are common in most provinces:
B
school costs in most provinces are shared between the province and local school boards
according to a cost sharing formula;
provinces attempt to equalize revenue received by local school boards, usually by giving
poorer districts relatively larger grants;
B
revenue for school expenditures are raised through provincial and/or local property
taxation (except for Newfoundland) and through provincial general taxation (income,
sales, etc.).
2
Table 1: School Board Property Tax Funding by Province
Newfoundland
Prince Edward
Island
Nova Scotia
New Brunswick
Quebec
Ontario
Manitoba
Saskatchewan
Alberta
British
Columbia
The provinces responsible for full funding of education. Property
taxes are not used for funding education.
The province is responsible for full funding of education. A
uniform provincial property tax is imposed on all property owners to
cover the cost of a basic standard of education.
Education funding is a joint responsibility of the provincial and local
governments. Property taxes are used to fund the local portion
while the province also imposes a provincial property tax to find
part of its expenditure commitment.
The province provides all funding for education and levies a non-
residential (commercial and industrial) property tax for education.
Funding responsibility is shared between the province and
municipalities. The local portion which is a small percentage of
overall costs is financed from property taxation. There is no
provincial property tax.
Funding responsibility is shared between the province and
municipalities with the municipal property tax portion being the
highest in Canada. There is no provincial property tax.
Education funding is shared between provincial and local
governments. Local finding comes from property taxes while a
portion of provincial funds comes from a province wide property
tax on residential and non-residential properties with the latter
bearing a higher tax rate.
The local share of the education finance bill is funded from local
property taxes. The provincial share comes from general funds.
Recent reforms have called for provincial funding of education with
school boards no longer levying property taxes for education.
Potential legal action has modified these reforms to some extent.
Education is fully funded by the province with the province levying
a property tax on residential and non-residential property. School
boards can levy an additional property tax on residential property.
3
Table 2 summarizes, in a general comparative manner, residential and non-residential property tax rates
for municipal services in each province. As the reader will note, considerable variation exists although this
may be summarized in the following way:
B
uniform rates apply to all classes of property in some provinces while variable tax rates apply to
different property classes in other provinces.
B
where differential rates exist, lower rates are always assigned to residential and&m properties
with higher rates being assigned to commercial and industrial prop-ties. In some provinces,
there are limits on the extent to which the differential between the highest and lowest rates can
persist; for example, in Ontario, the rate on residential property is legislated at 85 percent of the
rate on commercial and industrial property. In Alberta the rate on residential property cannot
be less than 75 percent of the rate on commercial and industrial property.* In British
Columbia, property taxes on commercial and industrial properties are approximately twice as
high as comparable rates on residential properties. In New Brunswick both the provincial and
municipal rates for non-residential property must be 1.5 times the residential rate.
B
in Prince Edward Island and New Brunswick, the two provinces employing provincial property
taxes, the provincial rate is fixed at a specific dollar value per hundred dollars of assessment
while municipal property tax rates in these provinces are allowed to vary in order to meet
municipal expenditure requirements. In Prince Edward Island, tax rates are lower for
commercial and non-commercial residents than for similar properties owned by non-residents
of the province
B
a separate business tax on the occupant is imposed in some provinces while it is rolled into the
general property tax rate in other provinces.
*
There are regulations in some Cities that allow the mill rate differential to be adjusted by
a greater amount.
4
TABLE 2: Residential Vs. Non-residential Property Tax Rates for Municipal Services
Newfoundland With the exception of St. Johns, municipal property tax rates are not
differentiated by property class (residential, commercial and business). There is a
business tax on non-residential properties, however.
Prince Edward
Island Provincial property taxes are levied at fixed rates that vary by property type. The
rate on residential property is $0.10 less per $100 of assessed value than the
commercial rate. In addition, local councils set their own rates. There is no
separate business tax on tenants.
Nova Scotia Property tax rates are differentiated by property class and are specified as rates per
$100 of assessed value. A separate business tax is imposed on the tenant.
New Brunswick A provincial tax is levied on residential and non-residential property; the rate on
non-residential property is 1.5 times the residential rate. Owner-occupied
residential properties receive a credit on the provincial tax. Municipalities also
levy their own property taxes. There is no separate business tax.
Quebec For general property tax purposes, lower rates are levied on farms, natural gas,
electricity, and telecommunications systems. There is no other differentiation by
property class. The general property tax rate is set by local councils at a uniform
rate on all properties. there is a separate business tax.
Ontario Property tax rates are set by municipal councils, with differential mill rates applied
to residential and non-residential properties. Residential and farm rates are 85
percent of those of non-residential properties. There is also a separate business tax
on the occupant of non-residential properties.
Manitoba Property taxes are levied by municipal councils. With the exception of Winnipeg,
municipal governments are not allowed to apply differential tax rates by property
class. While winnipeg is entitled to levy differential rates on eight classes of
property, it currently levies three rates: residential property up to four dwellings,
other residential property, and commercial and industrial properties. There is a
separate business tax.
Saskatchewan General property tax rates are levied at a uniform rate on all taxable assessments.
There is a separate business tax.
Alberta Municipal councils have the power to levy differential mill rates on residential,
farm and non-residential properties. Residential properties may be separated into
more than one category. Where differential rates are used, the residential rate
must be the lowest, but it cannot be less than 75 percent of the highest rate. There
is a separate business tax.
British
Columbia
Municipal property tax rates are set by local councils. Separate tax rates maybe
levied annually for each of eight categories of property. There is no separate
business tax.
5
c. Role for Property Taxation
As noted earlier, user fees and property taxes constitute the major sources of locally generated
revenues for municipal governments in Canada. User fees are particularly appropriate for
funding those services where specific beneficiaries can be identified and where spillovers
(benefits or costs that spill over into neighbouring jurisdictions) do not exist. Examples include
water, sewage, solid waste, transit, etc. Property taxes are appropriate for funding those services
that provide benefits of a collective nature for the local community but for which individual
beneficiaries cannot be identified. Local streets, roads, sidewalks, streetlighting, police and fire
protection are
C.1
examples of services
Fairness or Equity
On fairness grounds, it is important
that provide this kind of general benefit.
to differentiate between equity based on benefits received
and ability-to-pay. Where beneficiaries are identifiable and where the service is not primarily
redistributive in nature (social services, for example), it is generally argued that beneficiaries
should pay for the service. Under the benefits-received principle, the distribution of taxes or
user fees should correspond, in an approximate fashion at least, to the distribution of benefits.
In some cases, this correspondence can be achieved through user fees which function like market
prices for privately produced goods and services (Bossons, Kitchen, Slack, 1993). In other
cases, a beneficiary-pay tax such as the property tax which is more loosely related to the use of
services may secure this linkage (Tassonyi, 1993).
The benefits received principle cannot be applied in
cannot be applied if beneficiaries cannot be identified
all situations, however. In particular, it
and if non-users cannot be excluded from
enjoying the service. Further, where the beneficiaries extend beyond the immediate users or the
service is largely a collective public good (as with education), it is not appropriate to apply the
benefits-received principle. Where beneficiaries are not identifiable or where the purpose of a
government program or service is primarily
criterion of fairness, generally ability to pay.
redistributive, it is necessary to look to a different
According to the ability-to-pay principle, taxes are
6
fair if their burden is distributed in accord with some measure of taxpayers ability to pay taxes.
Broad-based income and sales taxes, both of which are in the domain of the provincial and
federal governments, are generally regarded as capable of being designed to yield taxation
instruments that conform to this principle.
C.2 Allocative Efficiency
Since property taxes represent costs to citizens/taxpayers for local government services
consumed, individuals and firms may respond by altering their economic decisions. More
directly, they may change where they live and work, what they buy, what improvements they
make to their homes, how many people they employ and numerous other decisions. If the
property tax is allocatively efficient, it will not alter any of these decisions (Kitchen and Slack,
1993). In other words, the tax will be efficient if it is designed to capture the extra cost of local
government services consumed by individual property owners or firms. Here, the taxpayer pays
a price that equals the additional cost of the service consumed by the taxed property. When the
taxpayer (business) is taxed for services that he or she (it) does not consume, an incentive is
provided for the taxpayer to alter his or her (its) behaviour; perhaps to move to another location
or to alter spending or employment decisions, etc. The critical question that this is posed with
respect to the property tax is whether or not the its current application is efficient in funding
local services that provide benefits of a collective nature or whether it leads to distortions
(inefficiencies) of the type noted here.
C.3 Accountability
The more direct the relationship between the beneficiaries of a government service and payment
for that service, the greater the degree of accountability. The principle advantage of linking
expenditures to taxes is that the cost of the service is seen more clearly by beneficiaries.
Citizen/taxpayer demand for aid government service will thus be based on some knowledge
of what the service costs and a realization of what must be paid for its consumption. Matching
taxes, at least in rough approximation, with beneficiaries increases the level of accountability -
7
people and businesses know what they are getting for the tax paid and better able to judge
whether the expenditure level is appropriate (Bossons, Kitchen and Slack, 1993).
D. Property Tax Concerns
The property tax reflects the tax price charged for the production and delivery of a variety of
local government services and elementary and secondary schooling in those provinces where the
latter is funded by a provincial property tax. The property tax is based on the assessed value of
property (tax base) with this assessed value defined as some fraction of market value.
It is this tax that has generated a number of concerns, not the least of which is the concern over
whether the property tax should be used to fund social services and education. Further concern
has been expressed over uneven assessment practices as they apply to different property types.
Finally, the differential tax on residential properties of different types and the higher tax on
commercial and industrial properties and the implications that this has for Canadas ability to be
competitive in the global economy has been the subject of recent discussion.
D.1 Should Property Taxes Fund Education and Social Services?
a) Social Services
Given that the property tax can best be defended as an appropriate base for funding those services
that generate benefits of a collective nature that are confined or restricted to the local community,
there is virtually no rationale for using it to fund social services. Social services are primarily
income redistributional in nature and generate benefits that are province-wide if not nation-wide.
Furthermore, when individual municipalities are left to fund this service at levels that are
determined locally (there is a provincial minimum level that must be delivered but many
municipalities offer more than the minimum), there is an incentive for them to provide the
minimum level of service and to export their welfare case loads to those municipalities with
8
higher levels of service leaving the latter with the responsibility for funding these caseloads from
their local property tax base,
Local funding of social services and the incentives created under current practice is neither fair
nor efficient. Greater fairness and efficiency would be secured by provincial and federal
governments who have access to taxes more appropriately based on ability to pay (personal
income taxes, for example). Indeed, this was a recent recommendation in Ontario (see the
Hopcroft Committees report on disentanglement, 1991) but one upon which the government has
not acted.
b) Education
It has been suggested frequently that elementary and secondary school financing should be the
sole responsibility of the province and entirely removed from any local tax. Indeed, this is the
practice in some provinces (New Brunswick, Prince Edward Island and Newfoundland, for
example). Total provincial funding of a local service is most appropriate for those services
where the province is responsible for setting province wide uniform standards; where the service
in question provides externalities for citizens living beyond the local jurisdiction; and where
income redistribution is a primary goal or objective (Kitchen, 1993).
Since the local education system is generally perceived to provide some collective benefits that
are confined to the residents of the local community (but for which specific beneficiaries cannot
be identified), there may be a role for some local funding. In other words, if some of the
benefits are confined to local residents, it may be both fair and allocatively efficient to require
the residents of the local community to fired a portion of the costs of this service. It is not
uncommon, for example, to observe residential property owners moving from one neighborhood
to another, or one town or city to another, so as to benefit from a better quality of education.
Given that collective local benefits exist, local finding for some portion of school expenditures
may be appropriate. For instance, a system where some funding is the direct responsibility of
local residents would assist in achieving a degree of accountability and allocative efficiency
9
because of the more direct link between the level of government raising the revenue and the level
of government making the expenditure. As well, access to locally generated revenues from the
residential sector may enhance the flexibility and autonomy of local school boards, districts, or
divisions, for this may improve their ability to accommodate more easily the desires of the local
community (Auld and Kitchen, 1995).
Making a case for local funding from the non-residential (commercial and industrial) sector is
far more difficult, perhaps impossible. For example, there is no question that commercial and
industrial property owners benefit from a well educated and highly skilled labour force. This
benefit, however, is linked to the education system across the entire province and not directly
to the expenditures made in a particular school jurisdiction (Bartik, 1992). As long as the local
education system provides no collective or direct benefits to local non-residential property
owners, the imposition of non-residential property taxes to fund a portion of local education costs
is both inefficient and unaccountable. It is inefficient because the commercial/industrial sector
pays taxes for services that primarily benefit the local residents. This type of cross subsidization
has the potential for leading to an oversupply of services for the residential sector. It lacks
accountability since those who pay are not the recipients of the service for which they have paid
(Kitchen and slack, 1993). While there is a solid argument for not using a local property tax on
non-residential property, this is not an argument against a provincial property tax on commercial
and industrial properties.
If non-residential property is taxed to finance education, there maybe good reasons to pool non-
residential assessment and assign the tax to the Province. For example, as was noted earlier, it
is unlikely that the local commercial/industrial sector directly benefits from the local education
system although it is almost certain to benefit from a province wide system. Furthermore, if the
tax is exported or partially exported as the empirical literature suggests is the case (Thirsk,
1982), much of the burden is likely to be borne by residents of other taxing jurisdictions and the
initial intent, which was to tax the local non-residential sector, will not be achieved. As well,
a uniform province-wide tax on business may be desirable on allocative efficiency grounds.
10
Otherwise, industrial or commercial location may well be based on the tax rather than other
economic considerations.
Province-wide pooling of non-residential assessment would also have the advantage of injecting
more wealth neutrality (each school board or district would have the ability to make similar
levels of expenditure per student regardless of their local tax base) into the funding system in
those provinces that currently do not have it. British Columbia, for example, has a scheme of
this type and it has been recommended for Ontario. This eliminates the situation where a school
board located in an industrially or commercially rich area, can raise more tax revenue without
raising the tax on residential property when compared with an area where the
commercial/industrial mix is relatively low.
D.2 Inequities and Inefficiencies Created by Uneven Assessment Practices
Inaccurate assessment is probably the most publicized and serious administrative fault of the real
property tax. This criticism has been founded on the observation that the ratio of assessed value
to market value displays a large amount of variation both within and amongst municipalities and
within and amongst property classifications. While these differences may be attributed to a
number of factors, they can generally be grouped in two categories: non-legislated (unintentional)
and legislated (intentional). Non-legislated or unintentional differentials have arisen because of
infrequent sales of certain properties and hence, the ensuing difficulty of establishing accurate
market values or the tendency of assessors to evaluate similar properties at different rates.
Legislated differentials in property taxation have developed in response to provincial objectives
of imposing lower taxes on certain types of property.
While uneven assessment practices have been observed in all provinces, they tend to be more
prevalent in the province of Ontario, primarily because there has been no province wide
implementation of market value or uniform assessment (Kitchen, 1992). Undercurrent practice,
three kinds of inequities have emerged.
First, inequities exist within each class of property.
11
Second, inequities have surfaced between classes of property; and third, inequities are noted
across municipalities within the province.
Inequities within property classes arise when all properties within a class are not assessed at the
same ratio of market value. For example, there may be two similar homes each with a market
value of $400,000. One maybe assessed at $30,000 (or 7.5 percent of its market value) and the
other at $20,000 (or 5 percent of market value). This difference in assessed value may be
attributed to the location of each house; for example, homes located in the downtown area of
cities tend to be under-assessed relative to homes located in the suburbs. Further discrepancies
are created because older homes tend to be under-assessed relative to newer homes.
Table 3 illustrates the extent of the inequities between classes of property by drawing upon
information from the Greater Toronto Area (Slack, 1994). While this table provides no
information on the extent of the inequities between properties within each property class, it
indicates that, on average, residential dwellings of 1 and 2 units (class 1) are under-assessed
relative to all other properties. Of the remaining residential properties, residential dwellings of
3 to 6 units (class 2) are assessed at a slightly higher percentage of market value while multi-unit
residential dwellings of 7 or more units (class 3) are assessed at a much higher percentage of
market value. Commercial properties (class 4) tend to be more highly assessed than all
residential properties except for multi-unit dwellings (class 3) but are under-assessed relative to
industrial and manufacturing properties (class 5).
This table also records the wide variation in the extent to which the ratio of assessed to market
values vary across each Region for each category of property. Variation, such as this, is
generally noted for all two tier local government structures where region wide market value
assessment is not in place.
Establishing a uniform assessment system is critical to the functioning of any local government
system that utilizes the assessment base for apportioning the costs of delivering uniform local
government services to the residents of more than one municipality. If properties of equal value
12
2.91
5.41
3.65
4.51
4.15
3.96
9.79
9.92
9.41
10.74
10.29
10.15
5.91
5.86
5.30
5.27
5.42
5.02
I I
18.92
10.84
25.71
17.47
24.01
12.32
24.58
8.19
24.54
11.12
17.98
12.71
14.55
13.15
15.78
8.71
15.78
13.72
26.97
I
18.20
23.25
15.57
22.36
11.62
9.26
I
4.01
9.15
4.69
7.61
3.81
6.38
3.89
13
E.4 Oversupply of Municipal Services
This type of cross-subsidization suggests that the residential sector pays a tax price that is lower
than the cost of services consumed by this sector. Whenever this happens, an inefficient level
of output emerges (over supply in this case). If allocative efficiency were to become a stronger
objective of local governments, the current discriminatory practice in the taxation of residential
versus non-residential property should be removed. As well, on benefits received grounds,
tax would be fairer for the sector benefiting from the services would be the sector paying
these benefits (Kitchen, 1992).
E.5 Non-Residential Property Taxation and Competitiveness
In addition, this over-taxation of non-residential property may create problems for
the
for
the
competitiveness of products and services produced by Canadian commercial and industrial firms.
As long as property taxes capture the cost of local government services consumed, the taxis like
any other input cost and is captured in the final selling price of the good or service. It is the
portion of the tax that exceeds the cost of services consumed, however, that creates potential
problems. This excess must be paid by someone. If it is passed on in the form of higher prices,
products or services may become less competitive vis-a-vis foreign competitors. The extent to
which property taxes are passed on, however, is uncertain. Clearly, it will depend on the
mobility of factors (land, labour and capital) in that producing activity and the market conditions
for the good or service being produced.
In terms of a Canadian firms ability to compete in the global economy, the current application
of the property tax (because it captures more than the cost of services consumed) has the
potential for inhibiting competitiveness more than any other tax including the corporate income
tax and payroll taxes. To illustrate, it is the portion of the property tax that exceeds the cost of
services consumed that is a potential problem. It is a problem because it is a fixed charge that
must be paid annually; that is, it must be paid regardless of whether the firm makes a profit or
has employees. The corporate income tax, by comparison, is only paid if the firm earns a profit
20
are taxed at different percentages of market value across a region, uniformity in the treatment
of properties is violated leading to the situation where the apportionment of region-wide costs
across area municipalities falls disproportionately on those municipalities where property taxes
are a higher percentage of market value. Finally, if one of the roles of provincial grants to
municipalities is designed to redistribute income, then assessed property value within the
municipality is likely to constitute the major, if not sole, component of the grant base. To the
extent that assessment practices are not uniform, the redistributive mechanism inherent in these
grants will not work as intended.
D.3 Non-Residential Versus Residential Property Tax Rates
The current practice in every province is to impose higher taxes on commercial and industrial
properties vis-a-vis single unit residential properties or duplexes. This is achieved in one or
more of the following ways: commercial and industrial properties are assessed at a higher
percentage of market value when compared with residential properties other than multi-unit
residential properties (noted in Table 3 above); property tax rates are legislated to be higher for
non-residential properties; and in some provinces, a business occupancy tax is added onto the
non-residential property tax (Kitchen, 1992).
Table 4 records effective property tax rates for five classes of property within the Greater
Toronto Area. They tend to be highest on residents of multi-unit residential dwellings, followed
by industrial and commercial properties and then single unit residential properties and duplexes.
Differential treatment of this kind has never been defended as reflecting differences in the costs
of servicing different property types within the same municipality or neighbourhood. Rather,
it almost certainly reflects the relative ease with which governments can impose higher effective
tax rates on certain categories of property; for example, owner occupiers of single detached
properties tend to be more vocal in their protests against property taxation than are renters who
are generally unaware of the property tax liability on their rented quarters or than
commercial/industrial property owners who may feel that they can pass it on to consumers of
their products or employees of their firm.
14
TABLE 4: Effective Property Tax
Municipality:
Metro Toronto
Toronto
North York
Scarborough
Etobicoke
East York
York
York
Vaughan
Markham
Richmond Hill
Whitchurch-
Stouffville
Aurora
Newmarket
King
East Gwillimbury
Georgina
Peel
Mississauga
Brampton
Caledon
Halton
Oakville
Burlington
Milton
Halton Hills
Durham
Pickering
Ajax
Whitby
Oshawa
Newcastle
Scugog
Uxbridge
Brock
Note: Effective tax rates include taxes for own purposes, upper tier purposes and education.
Mill rates are for 1992; the assessment data are for 1993.
Source: Same as Table 3.
15
D.4 Variation in Non-Residential Property Taxes Between Canadian and American
Jurisdictions
It has often been argued that non-residential property taxes are higher in Canadian municipalities
than in American municipalities and that this discrepancy discourages businesses from locating
in Canada. Table 5 reports average real estate taxes (these are non-residential property taxes
excluding the business occupancy tax) per square foot for large buildings in selected North
American cities for 1993. Taxes are separated by downtown and suburban areas. Average real
estate taxes in the downtown areas of cities ranged from $0.31 per square foot in Dayton to
$8.59 per square foot in Toronto. When the comparison is made for suburban areas, the range
extends from $0.97 per square foot in Dayton to $4.70 per square foot in Toronto. When the
average for all U.S. cities is compared with the average for the Canadian cities, property taxes
per square foot, on average, are higher in Canadian cities.
While international (and frequently interprovincial) tax comparisons are relevant especially now
that everyone is concerned about Canadas ability to compete in the global economy, figures such
as those reported in Table 5 must be interpreted with caution for a variety of reasons. First, the
data are based on survey results of office and retail buildings and suffer from the usual problems
associated with surveys. For example, the sample size depends on the response rate, the quality
of information depends on the quality of the responses and there are no tests of reliability of the
data. In many cases, the sample size is very small. Second, there is no consistency in the
definition of cities. The respondents judgment about the location of the building is used and this
may not correspond to municipal boundaries. Third, the division between downtown and
suburban properties is unclear.
Fourth, these estimates do not compare other taxes paid or
local services used by businesses in the various cities.
In spite of these cautionary notes, one cannot ignore differences in property taxes especially if
they become the catalyst for driving businesses out of Canadian cities and into U.S. jurisdictions.
16
Table 5: Average Real Estate Taxes on Buildings in Selected North American Cities, 1993
City
Taxes per square foot for all
Taxes per square foot for all
downtown buildings
suburban buildings
$
$
Canada
Calgary
2.59
1.62
Edmonton
3.98
2.28
Halifax
2.75
---
Montreal
3.23
3.15
Ottawa
4.28
---
Toronto
8.59
4.70
Vancouver
5.77
2.87
Victoria
1.47
---
Winnipeg
3.22
United States
Albany
3.46
1.77
Atlanta
2.37
1.86
Buffalo
2.35
---
Cleveland
2.13
1.88
Dayton
0.31
0.97
Detroit
1.42
2.52
Madison
3.23
Milwaukee
2.56
2.62
Minneapolis
5.85
4.54
Nashville
1.70
1.48
Pittsburgh
3.88
2.68
Portland
2.30
2.43
Salt lake City
1.45
1.74
Seattle
2.41
1.96
Syracuse
--- 1.79
Boston
5.06
2.50
Dallas
2.50
1.77
Miami
3.87
2.96
St. Louis
0.86
2.35
Note: The estimates in this table represent averages for a number of buildings in each of the
cities. Information is obtained from building owners and not from tenants. Real estate taxes
do not include business occupancy taxes or other property-related taxes paid by tenants. All
estimates are in Canadian dollars: U.S. estimates have been converted to Canadian dollars
using an exchange rate for 1993 of $1.00 Canadian = $0.775 U.S.
Source: Calculated from
Boma Experience Exchange Report
Building Owners and Managers
Association international, Washington, D. C., 1993.
17
E. Evaluation of Property Taxation
E.1 Benefits Received Basis for Taxation
An evaluation of the property tax as a basis for funding local government services is likely to
differ depending on whether it is evaluated under the criterion of ability to pay or under the
criterion of benefits received. Since ability to pay is generally based on a measure of ones
potential command over goods or services (income and wealth, for instance) or ones
consumption of goods or services (expenditures) and since property taxation represents neither,
ability to pay tends to be discarded as a basis for evaluating this tax. On benefits received
grounds, however, it has received much more attention and general acceptance. Indeed, with
some modifications as suggested below, it maybe a viable tax price for approximating efficiency
and fairness in financing a variety of public services that generate collective benefits for local
taxpayers.
E.2 Effective Tax Rate Differentials and Problems Created
Differences in effective property tax rates (tax price) can be justified as long as the differential
reflects differences in the cost (production, environmental and social) of delivering services to
the various properties. In other words, if some properties or property types are more expensive
to service, a case can be made for differential property tax rates. Unfortunately, current
differentials in effective property tax rates have arisen because of differentials in assessment
practices and not explicitly through variations in the tax (mill) rate. Failure to correlate benefits
from local government services, as they are reflected in effective property tax rates, with the
extra cost (or approximation of it) of service delivery leads to a redistribution of income that is
not neutral. Where the effective tax rate exceeds the extra cost of delivering the service,
incentives exist for people or businesses to relocate to lower taxed areas unless they are willing
to accept lower property values.
To avoid difficulties of this sort and to set the base for an
efficient and fair property tax system, all properties within a municipality and a city-region ought
to be assessed at a uniform percent of market value.
Variable mill rates, as are used in British
18
Columbia, could then be designed to capture cost differences across properties, property types
and municipalities (or neighborhoods within municipalities, for that matter) within a city-region
(Slack, 1991). As well, similar variation could be captured through the use of special assessment
or benefiting area charges on properties in receipt of more costly municipal services. While this
is current practice in a number of Canadian municipalities for financing hard services such as
roads, sidewalks, street lighting, etc., a case could be made, although it would require a
legislated change in most provinces, for extending its use to a number of additional services
where it can be demonstrated that service delivery costs are higher in specific neighbourhoods.
Changes of the sort suggested here should provide for a fairer and more efficient property tax
system.
E.3 Discrimination Against Non-Residential Property
The current practice of imposing higher effective property tax rates on non-residential
(commercial/industrial) vis-a-vis residential property creates efficiency and equity concerns. For
example, a recent study suggests that the residential sector when compared with the non-
residential sector is the recipient of proportionately more benefits from local government services
(welfare, elementary and secondary education, libraries, recreational facilities, etc.). When this
is combined with higher effective property tax rates paid by the non-residential sector, it is
concluded that the non-residential sector is over-taxed and the residential sector under-taxed. In
fact, recent evidence for eight Ontario cities suggests that if non-residential properties were
responsible for funding the portion of local services that are of benefit to their properties, current
property taxes could be expected to fall by more than fifty percent. Furthermore, if education
funding were removed from property taxes in these Ontario cities, the property tax for the
remaining services would approximate, in a crude fashion at least, a benefits based tax (Kitchen
and Slack, 1993).
19
E.4 Oversupply of Municipal Services
This type of cross-subsidization suggests that the residential sector pays a tax price that is lower
than the cost of services consumed by this sector. Whenever this happens, an inefficient level
of output emerges (over supply in this case). If allocative efficiency were to become a stronger
objective of local governments, the current discriminatory practice in the taxation of residential
versus non-residential property should be removed. As well, on benefits received grounds,
tax would be fairer for the sector benefiting from the services would be the sector paying
these benefits (Kitchen, 1992).
E.5 Non-Residential Property Taxation and Competitiveness
In addition, this over-taxation of non-residential property may create problems for
the
for
the
competitiveness of products and services produced by Canadian commercial and industrial firms.
As long as property taxes capture the cost of local government services consumed, the tax is like
any other input cost and is captured in the final selling price of the good or service. It is the
portion of the tax that exceeds the cost of services consumed, however, that creates potential
problems. This excess must be paid by someone. If it is passed on in the form of higher prices,
products or services may become less competitive vis-a-vis foreign competitors. The extent to
which property taxes are passed on, however, is uncertain. Clearly, it will depend on the
mobility of factors (land, labour and capital) in that producing activity and the market conditions
for the good or service being produced.
In terms of a Canadian firms ability to compete
of the property tax (because it captures more
in the global economy, the current application
than the cost of services consumed) has the
potential for inhibiting competitiveness more than any other tax including the corporate income
tax and payroll taxes. To illustrate, it is the portion of the property tax that exceeds the cost of
services consumed that is a potential problem. It is a problem because it is a fixed charge that
must be paid annually; that is, it must be paid regardless of whether the firm makes a profit or
has employees. The corporate income tax, by comparison, is only paid if the firm earns a profit
20
and the payroll tax is only paid if the firm has a payroll. The imposition of an annual charge
that is unrelated to services consumed, profits earned and payroll costs, then, has the potential
for inhibiting a firms ability to be competitive in the international marketplace (Kitchen and
Slack, 1993).
E.6 Differential Effective Tax Rates on Residential Properties
Finally, within the residential sector, the practice of overtaxing multi-unit residential properties
vis-a-vis residential properties and newer homes when compared with older homes is both
inefficient and inequitable unless, of course, it can be demonstrated that cost differences exist
in the provision of local public services to these various property types. At the moment, there
is no empirical evidence suggesting that multi-unit residential properties and older homes are
more expensive to service than single unit dwellings and newer homes. In fact, one may easily
conceive of situations where older homes located in more densely populated and downtown areas
require more police and fire protection, for example, when compared with newer homes in
suburban or less densely populated areas. As well, for many local government services such as
public transit and local streets, it maybe less expensive on a per unit basis to service multi-unit
residential dwellings.
21
F. Reform of Property Taxation
Discussions of property tax reform have been around for some time and have constituted the major efforts
of a number of provincial reform commissions and major committees over the past three decades.
Unfortunately, many of their recommendations, especially in Ontario, have never been implemented. More
recently, however, the threat of citizens protest and the potential for a taxpayers revolt has renewed the
urgency for government delivery of services in a fair, efficient and accountable manner. To achieve this in
the property tax field it is critical that provincial governments enact the following reforms if they have not
done so (some of these reforms have been implemented in some provinces).
Social service funding should be removed from the property tax base.
Elementary and secondary schooling should not be funded local a local property tax on commercial
and industrial properties, although a case maybe made for a provincial property tax on commercial
and industrial properties with the revenues being pooled and refunded to school boards or districts
on the basis of a provincial equalization formula.
AU properties (regardless of class or type) should be assessed at a uniform percentage of market
value.*
The current practice of overtaxing certain properties (commercial, industrial and multi-unit
residential) should be eliminated because it is unfair, inefficient and lacks accountability.
Variable mill rates should be implemented with differential rates applying to different property types
based on the cost of services consumed by each property type.
Eliminating the current practice of overtaxing commercial and industrial properties would enhance a
Canadian firm's ability to be competitive in the global economy.
The entire question of which activities, location and other intangibles, such as management, should
be included in assessed value is currently under debate.
22
REFERENCES
AuId, Douglas and Harry Kitchen (1995), Financing Education in Canada, Toronto: Canadian
Tax Foundation.
Bartik, Timothy (1992), The Effects of Property Taxes and Other Local Policies on the
Intrametropolitan Pattern of Business Location in Henry W. Herzog, Jr. and Alan M.
Schlottmann, ed., Industry location and Public Policy,Knoxville, TN: University of
Tennessee Press.
Building Owners and Managers Association (BOMA), Boma Experience Exchange
Washington, D. C., 1993.
,
Bossons, John, Harry Kitchen and Enid Slack (1993) Local Government Finance: Principles and
Issues, a paper prepared for the Ontario Fair Tax Commission, Toronto: mimeograph.
Hopcroft Committee, (1991) Report of the Advisory Committee to the Minister of Municipal
. .
, Toronto: Queens Printer for
Ontario.
, Toronto: Canadian Tax Foundation.
Kitchen, Harry (1993) Efficient Delivery of Local Government Services, Government and
Competitiveness Project, School of Policy Studies, Kingston: Queens University.
Kitchen, Harry and Enid Slack (1993) Business Property Taxation, Government and
Slack,
Slack,
Competitiveness Project, School of Policy Studies, Kingston: Queens University.
Enid (1991) An Analysis of the Feasibility of Implementing Variable Mill Rates in
Ontario, a paper prepared for the Municipal Finance Branch, Ministry of Municipal
Affairs, Toronto: mimeograph.
Enid (1994) Non-Residential Property Taxation and Competitive Advantage in the
Greater Toronto Area, a paper prepared for the Canadian Urban Institute with support
from the Dormer Canadian Foundation, Toronto: mimeograph.
Tassonyi, Almos (1993) The Benefits Rationale and the Services Provided by Local
Governments,
a paper preared for the Ontario Fair Tax Commission, Toronto:
mimeograph.
Thirsk, Wayne (1982) Political Sensitivity Versus Economic Sensibility: A Tale of Two
Property Taxes in Wayne R. Thirsk and John Whalley, eds.,Tax Options in the 1980's,
Toronto: Canadian Tax Foundation.
23
IMPLEMENTING
A PROPERTY TAX
REDUCTION STRATEGY
Prepared for: The Canadian Institute
of Public Real Estate Companies
By: Gardner Church
York University
April, 1995
IMPLEMENTING A PROPERTY TAX
REDUCTION STRATEGY
PREPARED FOR
THE CANADIAN INSTITUTE OF PUBLIC REAL ESTATE COMPANIES
OBJECTIVE:
To persuade Provincial Governments in jurisdictions with
higher than normal property taxes to reduce property tax
levels by removing the funding of human services from that
tax and employing less inequitable and less market
distorting taxes to make up for lost revenues.
BACKGROUND:
Part 2 of the document Towards a Strategy for Property Tax
Reduction: An opportunity for Action, (Church, 1995) begins with
the following observation:
The process of major political reform has changed in the last decades in Canada. Not long ago, an
organization with economic power might have succeeded in changing tax policy by carrying out good
research, explaining the need to change to government, and then assisting in drafting the reforms.
Now, however, the tax policy field, like many others, is full with special interest groups, each
resolutely pursuing a focused agenda. Major change will only occur if a cross section of special
interests can come together and agree on appropriate change. Than, instead of government being
confronted with a babble of conflicting demands,
it can respond carefully and cooperatively to a
broad and collective group.
Today, no component of society has Prior claim to governments' attention. Social advocates, economic
advocates, environmental advocates and advocates for local communi ties all have succeeded in making
their claims Legitimate in the eye of the public. If the economic lobby on governments is to have
any chance to achieve the reforms it seeks,
it will have to join forces with others in the other
fields of @lie advocacy.
A more cynical description of the political context is that in an era when governments are hard
pressed to pay interest on debt, proposals for major tax changes will be measured one vote at a
time.
2
It then proceeds to document the array of groups in society which
are potential supporters of a strategy to remove human services
from the property tax in favour of more progressive and less
market distorting tax sources. Banks, receivers, commercial
building owners,
commercial landowners, Boards of Trade,
urbanists, urban academics, poverty groups, social equity groups,
gender equality advocates, renters, leasers, and perhaps
homeowners and construction unions all have reasons to support a
major reform to property tax and may support the specific
proposal suggested here.
The objective of this outline is to suggest to CIPREC how it
might best build the coalition necessary to achieve the stated
objective.
APPROACH:
To build a coalition among diverse groups which support the
objective and together:
B Demonstrate that property tax is a poor foundation from
which to fund human services (including education, health
care, social welfare, day care geriatric care etc.) ;
B Show that high levels of property tax as they are now
administered are environmentally, socially and economically
more damaging than a number of alternative sources;
B Explore a possible companion approach focusing on reducing
the cost of local government in areas with high per capita
costs.
PROCESS ISSUES:
Successful coalitions arise when a common cause is identified,
when trust among the participants has been developed and where
data sharing is complete.
Problems in coalitions usually arise
from misunderstanding and inadequate communication. Thus, care
should be taken in the first stages to construct processes that
the various participants in the coalition can support and which
ensure clear understanding.
B B IMPLEMENTING A PROPERTY TAX REDUCTION STRATEGY B B
One of the major stumbling blocks in any coalition is
of funding. Some groups are very influential but have
to funds . Others are relatively weak politically but
relatively large funding capacity. One way to address
3
the issue
no access
have
this issue
is to identify sustaining participants and allocate to them only
the authority necessary to ensure adequate management control.
Otherwise the roles of sustaining partners would be
indistinguishable from those of other partners.
A process for building a successful coalition to replace the
property tax as a source of funding for human services would
follow steps such as these:
1.
2.
3.
4.
5.
6.
7.
8.
Develop a statement of the problem and a statement of the
range of potential solutions;
Identify individuals who could best approach the various
interests to determine their support, willingness and
ability to participate;
Develop a ball park estimate of the adjustments needed in
each Province;
Identify the key contributing partners who will join CIPREC
in a National partnership or coalition;
Discuss with all potential participants their perception of
the problem, any additional issues they wish to explore and
the process for decision making that they would support:
As a coalition, arrive at a common goal, a definition of
success, a workplan, working and decision making procedures,
agree on an independent chair and manager and arrangements
for funding of the work:
As research and developmental work is underway, invest in
communication among the members of the coalition:
Agree on political action and spokespeople before beginning
the public education and lobbying process;
B B IMPLEMENTING A PROPERTY TAX REDUCTION STRATEGY B B
4
9. Ensure that all materials are prepared with the multiple
perspectives of the coalition in mind. Each report, public
utterance or release should be defensible from all the
participants perspectives.
ACTIVITY:
Phase I
B Recruit the sustaining partners.
B Recruit a senior statesman as a spokesman, a manager of the
s t r at egy and ei t her di r ect l y or t hr ough t he s t r at egi c
manager r et ai n a nat i onal l obbyi st .
B Devel op a sophi st i cat ed capaci t y t o exami ne al t er nat i ve t ax
systems as they are proposed from the perspective of CIPREC.
In the priority Provinces,
devel op t he l ocal par t ner s t hat
wi l l del i ver t he pol i t i cal number s t he i ndus t r i al s ect or s
don t have ( envi r onment al i s t s , muni ci pal i t i es , s oci al
act i vi s t s ) .
. Pr epar e Pr ovi nci al act i on pl ans i n appr opr i at e Pr ovi nces
i ncl udi ng budget s, per sonnel , medi a st r at egy et c. and
det er mi ne cost s shar i ng t o oper at e Pr ovi nci al campai gns.
Phase II
B Manage Provincial campaigns in the context of the National
partnership.
B Oversee legislative lobbies as legislation is introduced.
SETTING PRIORITIES:
It is important that the political action part of the strategy
work on highest priorities first. Various members of the
coalition will have different key success factors. A critical
step in the political strategy is making early progress on all
participants critical priorities.
This implies a flexibility of
approach and a willingness to succeed in one area at a time. Most
successful coalitions succeed one small step at a time.
B IMPLEMENTING A PROPERTY TAX REDUCTION STRATEGY B B
A CRITICAL PATH FOR A PROPERTY TAX
May - Aug.'96
May 96
May - Sept. *86
May - June 96
Throughout
Dec.95
Sept. - Dec.*85
June - Nov.*95
Before Dec.95
Throughout 96
In 96
In 96
96 & 87
Late 97
REDUCTION STRATEGY
Recruit Sustaining Partners
Develop Strategic Plan & Budget
Establish National Partnership & Set Protocols
Recruit Strategy Manager & Tax Specialist
Recruit Spokespeople & Lobbyists as Needed
Complete Alternative Tax Analysis
Carry Out National Communication Campaign
Develop Partners in Priority Provinces
Prepare Provincial Action Plans
Manage Provincial Campaigns
Modify National Strategy as Needed
Advertise Progress Throughout
Manage Legislative Lobbies
Success or Renewal of Partnership
MANAGING A PROPERTY TAX
REDUCTION STRATEGY
1
I
Coalition
Partners
I I
TOWARDS A STRATEGY
FOR PROPERTY TAX REDUCTION
APPENDIX:
AN ANNOTATED BIBLIOGRAPHY
ON PROPERTY TAX
Prepared for Gardner Church
and a Report to
The Canadian Institute of
Public Real Estate Companies
by Abby Bushby
March, 1995
BIBLIOGRAPHY ON PROPERTY TAX
JOURNAL ARTICLES:
Brown, H. G.,
"Should Bare Land values Be Taxed more Heavily?"
Journal of Land and Public Utility Economics, November 1928,
pp. 375-390.
This article is of historical interest in that it debates
the merits of a flat, land value tax, (in the style of Henry
George), versus a generalized version of contemporary property
tax after the decisive post WWI period when American land use
planning had clearly given way to low-density uses, and he
cautiously approves it. He compares the capitalized value of
land under each system and finds that the flat tax increased
the value of land compared to the general tax by a ration of
4:1, (which seems to imply that taxes upon the land portion of
property tax could be much higher in a flat tax jurisdiction
without adverse impacts upon individual owners) .
The impacts
of each type are also compared upon vacant land speculation,
and finds that speculators would prefer the current system
where their taxes are reduced for the land not being in use.
As for ability to pay, the writer notes the inherent
difficulties of inferring ability to pay based on land
holdings.
Canadian Urban Institute, "Intensification Report", Toronto, Issue
No.8 May-June 1994,
The issue is devoted to property taxation and land use
planning. Articles include:
Editorial,
"Is property Taxation a Viable Policy Instrument
for Intensification?", page 2;
Scott Blythe,
"Commentary on the Ontario Fair Tax Report",
pages 3-6;
Enid Slack,
"Property Taxation and Urban Sprawl", Pages 7-9;
Richard Gilbert and Penny Pepperrell, Taxing for a Purpose"
pages 9 -11.
David Nowlan,
"Taxes, politics and Urban Form", Reflecting on
Fundamentals, pages 12-14.
Peter Tomlinson,
"Property Tax and Business Location", pages
14-17.
Bird, Richard,
Analysis,
This
BOOKS:
Who Pays the Property Tax, Institute for Policy
Toronto: University of Toronto Press, 1975.
is one of the most oft referred to of many works to
deal with the subject of incidence which dominated the
political/intellectual agenda of tax reform attempts in
Ontario's 1970's.
Bird tackles the question:
is property tax paid
proportionately more by the poor?
He disputes the
"conventional view" that payment of property taxes is shifted
to tenants in proportion to their rental payments. That view,
he contends is indicative of regarding small sample
localities, whereas the ownership of land when considered
nationally reveals a concentration of capital. If the total
supply of land is constant, then there is no shift of tax
payments. If, on the other hand, the supply of land is movable
due to changeability in use, value, or growth potential,
capital will move in search of similar after-tax returns. The
net distributive effects of these forward shifts is
controversial and does not clearly demonstrate inequity. This
is a fundamental basis for finding that there is a stronger
relationship tracing the proportion of tax to the receipt of
income from capital than in proportion to consumption of
housing.
Bird concludes that, as a basis for property tax reform,
equity and incidence are uncertain concepts. According to
Bird, regressivity is inaccurately portrayed with emphasis on
the spending of income and requires an analysis of sources of
income as well. On the other hand, thinkers such as Richard
Gilbert, (see Symposium below), would probably say that
because land is scarce and has a high value as a commodity,
its supply is therefore movable and it would follow that the
incidence of tax on land is indeed capable of being shifted
forward.
Bird, Richard M. and N. Enid Slack. Urban Public Finance in Canada,
"Appendix A: Local Government Finance in Comparative
perspective" (2d), Toronto: John Wiley & Sons, 1993, pages
139-143.
(This Appendix is photocopied) .
Bossons, John, Michael Denny and Enid Slack, Municipal Fiscal
Reform in Ontario: Property Taxes and Provincial Grants,
Toronto: Ontario Economic Council, Discussion Paper Series,
1981.
Introduction: This book offers
of market value
assessment,
insights to
( "MVA") in
the long history
modern Ontario.
3
Beginning with the Ontario Committee on Taxation (the "Smith
Committee") which is identified as the source of the Ontario
governments commitment to MVA, the MVA debate still dominates
the popular agenda in property tax reform.
Interestingly in 1967,
when there was much suburban
residential activity in Ontario the Smith Committee found that
low-density residences and land without buildings (ie. vacant
lots held in speculation) received favorable tax treatment.
Also highlighted are:
a series of reforms proposed in the 1976
budget; the findings of a commission chaired by W.L. Blair
which reported in March 1977; the Provincial-Local Government
Committee on Property Tax Reform which reported in April 1978,
all of which recommended amendments to the above anomalies;
then, the decision of Darcy McKeough, Treasurer of Ontario in
1978 to not implement any wide-ranging tax reform at that time
introduced an
era of administrative reform". The
administrative reform was to create changes in the provincial
equalization grants
to municipalities.
(Municipalities
receive grants for schools and resource equalization based on
the total assessment value within the tax jurisdiction.)
Objectives of tax reform investigated in this book
include effects:
on neighbourhoods,
on investment, local
autonomy, provincial-municipal transfers, and the municipal
fiscal system in general.
"Property Tax Reform: What is Desirable", pp. 9-88. John
Bossons article finds much potential for incorporating user
charges into the municipal tax structure.
Bossons would limit
the applicability of market value assessment to aspects of
taxation within properties of the same class.
His careful application of the bases of "equity in any
property tax scheme is very helpful, including horizontal
equity, vertical equity, and a derivative of vertical equity:
user pay. Of the latter, Bossons isolates municipal "hard"
services that are allocable to certain properties,
such as
roads, water and sewers and recommends that a user charge
system be invoked which would be applied on a foot frontage
basis for hard services and a lot area or density basis for
services such as fire and police protection.
He also recommends that the costs associated with
particular land use decisions be financed with a "Density Tax
component
to property tax
where the tax paid would be
inversely proportional to density.
Interestingly, he singles
out the spread of suburban low-density uses as a costly form
of land use for their consequential increases in the costs of
hard services, for making public transit more expensive and
for requiring that valuable municipal resources be priorized
for roads.
4
With regard to horizontal and vertical equity, Bossons
measures the impact of MVA on ability to pay and finds that
because lower capitalization rates on owner-occupied
properties artificially inflates their values, the ability to
pay of homeowners as compared to renters is actually lower.
Furthermore, because MVA would apply to the value of homes
regardless of how much a home is mortgaged, it would extracts
a higher proportion of tax from those with high mortgages.
Statistically this group is composed of younger people.
Bossons briefly discusses a tradition of using taxing
powers as an instrument for intervening in land use decisions.
It is limited by the desire to avoid inter-municipal
competition in Canadian jurisdictions. (I am aware that fewer
prohibitions against inter-municipal competition exist in
American jurisdictions, a fact which is acknowledged to
accelerate decentralization) .
"Property Tax Reform in Ontario:
An Economic Assessment",
pp.89-128. In this chapter Michael Denny takes up the case for
MVA. Mississauga is a case study; it introduced MVA in the
late 1960's. Denny notes that this raised the taxes on single
family residences and lowered that for business and industry.
(In the current system, residences are taxed at one half their
value and businesses are taxed at a higher rate.) This is
passed without comment as to the effects on land use patterns.
His primary reason for endorsement appears to be that MVA is
the easiest to measure accurately.
George, Henry, Progress and Poverty, New York: Garden City, 1926.
George, Henry, The Land Question: Property in Land. The Condition
of Labour, Robert Schalkenbach Foundation, 1935.
George, Henry, Our Land and Land Policy: Speeches, Lectures and
Miscellaneous Writings, New York: Doubleday and McClure
Company, 1902.
This is a volume of writings compiled by Henry George Jr.
after his fathers death. It contains several writings about
aspects of the famous "single, flat tax" notion of George. In
a nutshell, he proposes a tax on land, without any increment
for the value of structures and improvements. The amount of
tax paid would be the same for vacant land as for built upon
and densely populated land. It is a tax that has little or no
bearing on the use of the land, including profit making and
does not affect the cost of living. Furthermore, it is the
most easily assessed, collected and administered tax. To
5
George this proposal is based on a humane understanding of the
creation of wealth and a desire to eradicate poverty: Land
increases in value because of human labour. To place a tax
upon the value created by labour simply permits the landowner
to shift the burden of payment to those who work or use the
land. (To him it is self-evident that the incidence of tax
paid on the value of land is regressive because if the
landowner is engaged in any sort of production, he will recoup
any taxes paid to make a profit.) Presumably, George would
rather tax all "value added" labour according to ability to
pay. It is evident, however, that the flat tax in his scheme
would be quite high, as it is his intent to "tax away" all
private interest in land on the principle that land value is
created by the community not the individual and the community
is thus entitled to the return.
Although George wrote in the late 19th century, the idea
has gathered interest from time to time for various reasons.
Currently, the tax reform ideas of Richard Gilbert of the
Canadian Urban Institute appear to be influenced by George.
Gilbert has stated (at a Symposium listed below) that if the
property tax were simply based on land with a single flat tax,
intensification would be the predictable result because it
would be in landowners interests to efficiently use space.
The scarcity of land alone, not its value, constitutes a solid
basis for taxation. The transformation could be accomplished
by redefining the urbanized area of the GTA and setting out a
predictable transformation period of 20 years.
Jacobs, Jane, The Death and Life of Great American Cities, New
York: Vintage Books, 1961.
Jacobs has a few comments about property taxation that
stand to increase the vitality of cities: 1)
To increase
diversity, property taxes should not be assessed by
neighboring property values, but be taxed within the class of
similarly zoned properties. To do otherwise is to restrict
use by zoning but to compel homogeneity by similar tax
treatment; and, 2) to seriously clear slums, taxation on the
basis of profits is necessary, (slumlords make no improvements
and pocket the depreciation then
"sell" the property
0 a
related corporation for the book value which gives rise to
very little capital gains tax and the opportunity to begin a
new round of depreciation. (I take note that the income tax
administration
is best equipped to inspect improperly
depreciated values).
The most important relevance of this book to property tax
reform is her work in addressing the values of diverse,
economically vital and safe cities which set standards by
6
which the consequences of taxation can be measured. Ms.
Jacobs advocated against the imposition of full market value
assessment in Toronto, as it would drive out all small, older
businesses that create much diversity in the City.
Goldberg, Michael A.,
and John Mercer, The Myth of the North
American City: Continentalism Challenged, Vancouver:
University of British Columbia Press, 1986.
(paraphrased) Local autonomy declines with increased reliance
on transfer payments. Metro areas in Canada and US are
similar in terms of the share of total revenues derived from
intergovernmental transfers.
(Table 8-4) American central
cities however were more dependent on transfer payments, in
both metro area and in central cities in 1976-77, (although
the US trend in metro areas was to increase transfers to up 6%
points to 43%, unlike in Canada which decreased 3% points in
transfers to 43%. In the central cities, transfer payments
are substantially less than for the metro area.
They
decreased from 20 to 17% in Canada and increased from 27 to
37 % in the US.
To my mind, these facts alone are in apparent
contradiction with the notion that local autonomy is a greater
value in the US than in Canada. The authors suggest that the
"central city fiscal squeeze widely discussed in the US is
forcing cities to disregard the intangible notion of local
autonomy and enter into a state of fiscal dependency. This is
brought on by city administrations seeking to realize ever
more revenues from a limited or declining tax base.
(201)
What is significant is that in the US the federal government
has entered into a transfer payments role with the cities
whereas in Canada, provinces provide grants to cities.
Therefore the US orientation is to the federal government and
in Canada it is to the Province. (Ask John DeGrove how this
impacts on state willingness/reluctance to undertake growth
management programs-- are the rich suburbs content to leave
the poor cities to the feds?)
Also, it must be noted that the role of the US fed govt
changed drastically during the years immediately following
these studies. Devolution, under Reagan, meant the feds got
out of conditional transfers to the cities and got out of
funds over a ten year period ending in 1992.
What has
replaced them under Clinton?
(ask Gardner, or DeGrove)
(Paraphrased again) Property tax has been commonly claimed to
be one of the factors encouraging business activities to leave
the central cities for lower tax locations in the suburbs or
elsewhere. Loss of assessed prop tax base only serves to put
7
increased pressure on the remaining city property tax owners.
Thus, American cities, with their declining areas, would need
to find other mechanisms for raising revenues to reduce their
reliance on the prop tax.
Canadian cities, with their
generally expanding tax base, might behave in a mor
e
traditional way and rely on the prop tax....ln both cases,
flexibility must be recognized.
203 and Table 8-6: shows Canadian and American central cities
decline in taxes as proportion of revenues. Canadian central
cities also declined in transfers.
Authors make the
suggestion that it must be due to more use of non-tax sources
such as licensing:
American suburbs were raising fewer
revenues from taxation, Canadians were raising more.
204 and Table 8-7:
The property tax as a percentage of tax revenues is
higher in suburbs than in central city for both Can and US.
However, Canadian suburbs decrease reliance on property taxes
while the central city increases reliance.
(Both Canadian
areas get 80-90% of revenue from prop tax.)
Table 8-9, per capita data:
Canadian urban property
owners pay more than American counterparts -- double in, 1971
and 1.5 x in 1977.
(NOTE: this does not, however, include
prov grants to homeowners).
However, it does imply that high
property taxes mean that Canadian cities have higher revenues.
Table 8-10 confirms this with revenues per capita comparisons
between Canada and US.
It is true that Canadian cities spend
more on infrastructure.
(Anti-tax propositions limit US
cities ability to improve this situation.)
American cities allocate greater share of expenditures
for protection (central city).
per capita spending for
protection, however,
is greater in Canada than in US (central
city). And,
total expenditures per capita, are greater in
Canada than in US (metro area).
However, the difference
between suburbs and central cities spending decreases between
Canada and US. therefore, US suburbs are seen to be spending
.--
more per capita than central cities,
(US suburbs are
affluent, social status gradient is steeper in US.)
204).
Metro Fiscal disparities (206) (not very clear, Tables
and 17)
Ratio of revenues Per capita,
central city to
more
page
8-16
the
suburbs: In the US, greater fiscal disparity is noted, but
great disparity to a great degree in both countries.
Ratio of expenditures per capita:
substantially higher
for the suburb areas.
8
Kivell, Philip, Land and the City:
Patterns and Processes of Urban
Change, London: Routledge, 1993.
Kivell's work is helpful in understanding the
consequences of energy consumption to urban sprawl and, to me,
speaks to the need to integrate property tax reform with an
energy tax. He finds that land devoted to urban uses is 5-10%
of developed countries. It is important as a source of power,
record of evolving patterns of living and the key to planning
and control by government.
Of several broad trends, ie. the
decline of manufacturing,
suburbanization versus
decentralization, the effect of telecommunications on economic
activities and land use change, and concern for the
environment, the cost and availability of energy will have a
great impact.
Newell, Martin, An Introduction to the Economics of Urban Land
Use., London: The Estates Gazette Limited, 1977.
Contents: urban development, land values, techniques of
public decision making eg. discounted cash flow, cost-benefit
analysis, Need for efficiency in the use of scarce land and
costly building resources, income redistribution, the role and
method of the market system and urban decay, economic role of
the public sector in attempting to complement or replace the
market system.
Ratcliff, Richard U., Urban Land Economics, Westport: Greenwood
Press, 1968
Ratcliff's Chapter 14,
"Urban Land Policies" explains a
perspective of urban economics which takes the view that land
policy is established by the planning process including
zoning, subdivision control as well as the taxation of real
property. Economic land policy then includes having regard to
the incidence of payment, effects of speculation, diversity of
uses and direction of investment through tax policy. He
regards MVA as deficient in assessing ability to pay. To
Ratcliff,
"ability to pay
" was a value that could be more
closely associated with real property prior to the spread of
wealth in intangibles. He notes that the adoption of Georges
flat tax system would revolutionize the land system and he
mentions the successful experiment of Pittsburgh to encourage
the improvement of vacant
on the land and lower tax
NOTE: F.Y.I., TEE FOLLOWING
land by applying a higher tax rate
on improvements.
BOOKS ARE ALL ABOUT SUSTAINABLE
9
DEVELOPMENT, GENERALLY:
World Commission on Environment and Development, Our Common Future,
New Yor k :
Commission" )
Pearce, David, Anil
Green Economy,
Oxford University, 1987, (the "Bruntland
Markandya, and Edward Barbier, Blueprint for a
London: Earthscan Publications, 1989.
Cairncross, Francis, Costing the Earth, London: Random Century
House and The Economist Books Ltd., 1991.
Daly, Herman, and John Cobb, For the Common Good, Boston: Beacon
Press, 1989.
GOVERNMENT DOCUMENTS:
Corporation of the City of Toronto, (Commissioner of Finance),
"Unit Assessment System and Environmental Objectives",
Economic Development Committee Report No. 4, Clause No. 3
a
Adopted by City Council on March 22 and 23, 1993, (A
submission to The Sewell Commission) .
A Working Group composed of interested City Department
Heads qualitatively evaluated MVA and Unit Assessment ("UA")
by the criteria of effects on urban form, preservation of
agricultural land/natural areas, public transit, energy
efficiency, and air pollution. (UA is not defined herein,
further reports are forthcoming.) MVA was found to encourage
urban sprawl because it enhances lower property values at the
fringe of Metro. UA is independent of location. UA
encourages intensification because there is no penalty for
smaller lots, (with MVA smaller lots may be as valuable as
larger lots and there is no incentive to build compact urban
form). With MVA assessment changes with fluctuations in the
market and is unstable. With UA assessment changes only with
physical changes in the assessed property.
Provincial-Municipal Grants Reform Committee, Report of the
Provincial-Municipal Grants Reform Committee -- Volume I, D.W.
Stevenson, Chairman, (appointed May 26, 1976). (" The
Stevenson Report")
The Stevenson Report signalled a major turning point in
Ontario's history of municipal funding. It recommended
increasing the amount of unconditional grants to
municipalities,
under a market value system, and outlined
10
principles of equity upon which services in smaller local
governments would be funded.
Table 1 in the Report shows the impacts of
committees recommendations on the grant system:
conditional
unconditional total
grants
grants
pre-report 1102
436
1,538*
post-report 493
741 1,234
MY NOTE: Compare the above figures with those in the
Commissions Final report in Table
31.1:
the
Fair Tax
cond
36
(FTC calculation
(* $ million dollars)
Advisory Committee to the
unconditional
947
based on MARS 1991)
Minister on the Provincial-Municipal
Financial Relationship, Report of the Advisory
Committee-to
the Minister of Municipal Affairs on the Provincial Municipal
Financial Relationship, Grant Hopcroft, Chairman, Toronto:
Queen's Printer for Ontario, January 3, 1991, ("the Hopcroft
Reports").
Ontario Fair Tax Commission, Fair Taxation in a Changing
World:
Report of the Ontario Fair Tax Commission, Toronto:
University of Toronto Press, 1993.
Ontario Fair Tax Commission, "Assessment:
What's Fair", Tax Talk,
Vol.2 No.4, Fall 1992, p.2.
The 45 member Property Tax Working Group produced an
interim report,
(see Working Group Report
below). In this
newsletter article, the Group's finding that MVA is not fairer
because the relationship between the value of a house and the
income of the home-owning occupants is weak is highlighted.
Also highlighted are the Groups recommendations for a
different method of education equalization grants:
they
recommend that household incomes, (perhaps determined from a
reformed provincial income tax information?), be taken into
account as well as assessed value of property.
In my view,
this reform more clearly establishes a community's aggregate
11
ability to pay for municipal expenditures and should therefore
be one of the factors that lessens the pressure on small and
poor localities to permit sprawl so as to increase their tax
base.
Ontario Fair Tax Commission, Working Group Report: Property Tax,
Toronto, December, 1992.
The Report details the great extent to which effective
tax rates across the province vary, (for definitions see
below) . Its recommendations include:
The payment of some
municipal services should be separated from the property tax
base, (these services are used by citizens regardless of
municipal residence and have income redistributive goals, eg.
education and welfare) . The emphasis on ability to pay should
be removed from property tax.
Where some municipal services
must be subsidized,
(eg. Homes for the Aged), aggregate
household income should be the indicator of ability to pay,
presumably through the provincial income tax system.
MVA is
not supported for its regressive effects.
The province should
create consistent assessment systems
for residential and
industrial/commercial property across Ontario. Local
governments should have the flexibility to vary tax rates
between classes of property. Strong recognition is given to
the need for comprehensive local government reform of
financing systems. Interestingly, the greatest total of
property tax revenues is from residences ($8.6 billion).
Commercial/industrial taxes total only $5.9. Education
spending totals 53 per cent of all revenue.
BRIEFS TO THE FAIR TAX COMMISSION:
NOTE: No provincial Ministries and no federal bodies made
submissions to the Fair Tax Commission.
Bossons, Ila, (Councillor with the Municipality of Metropolitan
Toronto), (Brief No.436).
Articulates the anti market value assessment ("mva")
debate with details of its application to selected sites in
the core (all within City of Toronto) and demonstrates absurd
applications, (ie. tax increases of 100 - 300 percent).
However, while she also points to benefits the suburban fringe
receives from Toronto tax dollars, her greatest attack is
focussed on the attempt of other Metro municipalities to
increase Torontos tax burden to their benefit.
(She details
the extent to which Torontos
municipalities taxes lower.)
impact of mva on destruction
urban sprawl.
Borough of East York, per Mr. Eric
12
tax burden has kept other Metro
Brief also gives good detail on
to urban core and therefore to
Nichols, Property Tax Reform -
Markham $3.91
9 % h i g h e r
Vaughan
$3.51 18% higher
Pickering $2.38
45% higher
*Average rates for A quality commercial buildings
(J.J. Barnicke Limited, August, 1994)
Municipality
East York
Scarborough
Etobicoke
City of Toronto
North York
Mississauga
Pickering
Vaughan
Markham
Per Sq. Ft. *
+60/0 Bus. Tax Tax Rate In Markham & Vaughan
$2.88 47% lower
$2.80 46% lower
$2.80 46% lower
$2.61 42% lower
$2.61 42% lower
$1.68 10 % lower
$1.62 7?40 higher
$1.52
$1.52
t
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The potential of the GTA to be a leader in the global, North American and
Canadian economies.
The need to change the current tax system to promote fairness across the GTA and
reduce dependency on property taxes.
The integration of road, transit, and piped services via either a new GTA-wide
body (but not an additional level of government), or improved inter-regional
coordination.
The importance of protecting our rural and environmentally sensitive areas, and
provision for a range of residential densities.
The need for governance reform, that encourages better planning and more
efficient service delivery, but does not undermine the connection people feel with
their local government and local community.
Consultation
I now have consulted with almost 100 stakeholders, including every Mayor and Regional
Chair in the GTA, most in person, a few by telephone, and many on more than one
occasion. I have also met with a number of municipaI councils.
In virtually every instance, we have received offers of support, cooperation and assistance,
including research and secondment of municipal staff - offers we have been pleased to
accept. While we would not deny the existence of concerns among some elected officials,
the general response, in tone and substance, has been of cooperation and a strong desire
to be involved in the Task Forces work --
a desire we respect and are making every
attempt to fulfil.
One issue that has come up repeatedly in my consultations outside Metropolitan Toronto,
is the sense that Metros property tax problem is related to its service costs. I had an
excellent meeting with Mike Garrett, CAO of the Region of Peel and Chair of a Greater
Toronto Coordinating Committee study on the comparative costs of municipaI services in
the GTA. This study, and other available research, will give us the data we need to begin
to resolve questions related to Metros service levels relative to the outer municipalities.
Our plan is to build on the work that has already been done, or is underway.
Deputy Ministers
We have received excellent support from the Deputy Ministers and their staff through
briefings, help with data and research, and ongoing feedback. Their assistance is greatly
appreciated.
After June 8
Like you, we are awaiting the results of the June 8 election with great interest. Our hope
would be for an early meeting with the Premier to brief him or her on our progress to
date.
Staffing
The Task Force is almost fully staffed, and we are extremely proud of the high-calibre
professional staff weve recruited. The senior staff are:
I* .
Executive Director: John Livey, Planning Commissioner with York Region. John
developed the Regions first official plan. Prior to joining the Region, John was
Director of the Policy Planning Division for Metropolitan Toronto. (Johns
appointment is subject to confirmation by York Regional Council on June 8).
,, B
Research and Policy Director: Hary Kitchen, Professor of Economics at Trent
University and noted expert on municipal finance. In addition, Harry has served
on a number of federal and provincial committees, including the Economic Council
of Canadas Advisory Committee on Government and Competitiveness. the
Ontario Committee on Provincial-Municipal Financing matters (Hopcroft
Committee), and the Niagara Region Review Committee.
B
Communications Director: Diane Wolfenden, Director of Public Affairs at the City
of Mississauga. Diane spent a number of years with CP Rail in Montreal as its
Manager of Public Policy Research and Analysis before joining the City in 1990.
Liz McLaren, the Assistant Deputy Minister responsible for the Office of the Greater
Toronto Area, will continue to stay closely involved with the Task Force to give us the
benefit of her enormous knowledge of municipal matters, and to provide a valuable link
with the provincial government.
A full staff list is attached.
Feedback
We would like to have your feedback on this first GTA Fax News. Have we told you
what you want to know? Do you have anything to add? Please fax me your comments
at 416-327-1516.
Attached to the foregoing Greater Toronto Area Newsletter are lists entitled GTA Task
Force Members of the Finance Working Group and GTA Task Force.
Public
l.
2.
3.
4.
Participation
All COMLAC meetings are open to the public;
Members of the public may address COMLAC on each item on the agenda at the
beginning of COMLACS consideration of the item;
COMLAC will establish a schedule of meetings which will be available to the
public; and
Each municipal clerk will post a notice of the schedule of COMLAC meetings and
have available for the public a copy of the meeting agendas.
Letter from Mrs. C. Davidovits, Secretary, Committee of Metro Local Area Councils, City
Clerks Department, City of North York, 5100 Yonge Street, North York, M2N 5V7, dated
May 12, 1995, which was previously considered under Item 6, Report No. 10 of the
Legislation, Building and Bv-Law Enforcement Committee, 1995:
Re: Implementation of the Referendum Results: November 14, 1994 - Secession or
Discussion - City of Toronto
At its meeting held on May 3, 1995, the Committee of Metro Local Area Councils had
before it a communication (April 6, 1995) from the City Clerk, City of Toronto, respecting
the subject matter, a copy of which has been forwarded to all the area municipalities.
The Committee of Metro Local Area Councils decided to:
(a) receive the communication (April 6, 1995) from the City Clerk, City of Toronto,
with thanks;
'(b)
request the various municipalities to forward a copy of their reports on this matter
to COMLAC; and
(c) request the various municipalities to advise COMLAC of their views on the
proposed dissolution of Metro and also to provide a response as to whether or not
they wish to explore the area of dissolution further with the City of Toronto.
Letter from Mrs. C. Davidovits, Secretary, Committee of Metro Local Area Councils, City
Clerks Department, City of North York, 5100 Yonge Street, North York, M2N 5V7, dated
May 12, 1995, which was previously considered under Item 6, Report No. 10 of the
Legislation, Building and Bv-Law Enforcement Committee, 1995:
Task Force On The Greater Toronto Area
At its meeting held on May 3, 1995, the Committee of Metro Local Area
before it the following attached material:
(a) a copy of the workplan for the Task Force on the GTA headed
Golden; and
Councils had
by Dr. Anne
(b)
a copy of a memorandum (April 20, 1995) from Mayor Lastman addressed to all
members of North York Council regarding membership on a municipal staff group
responding to the Golden Task Force on the GTA.
The Committee of Metro Local Area Councils decided to receive this matter and to
suggest to the area municipalities that they appoint a member of COMLAC, and an
alternate, to the municipal staff group responding to the Golden Task Force on the GTA.
Attached to the foregoing letter was a memorandum dated April 20, 1995, from Mayor M.
Lastman of the City of North York and the attached letter to all Metropolitan Mayors from
Mr. Alan Tonks, Metropolitan Chairman, dated April 20, 1995.
Newsletter from Ms. Anne Golden and the Greater Toronto Area Task Force, 393
University Avenue, 20th Floor, Suite 2001, Toronto, M5G 1E6, dated June 2, 1995:
Welcome to the first fax bulletin from the GTA Task Force. Hot off the computer, GTA
Fax News brings you the latest information about the Task Force.
GTA Fax News is only one of many elements in our multi-faceted communications
program. Were planning to send it out regularly (every two to three weeks) to keep you
up-to-date on our work.
An incredible amount of focused activity has taken place since the Task Force began
formal operations on April 1. Here are the highlights.
Municipal Finance:
As you know, weve been asked to address municipal finance as our number one priority.
Weve consulted with many of the acknowledged leaders in the field, ranging from
provincial and municipal staff, to elected officials, to independent experts. Twenty-one of
them have agreed to join our Finance Working Group (their names are attached). Were
encouraged by the depth and breadth of the understanding and experience they bring to
this complex issue.
The Working Group will play an important role in helping to steer our research and
analysis. There was general agreement that the municipal finance problem includes the
following key issues:
t
B
Assessment reform.
B
High level of business taxes in Metropolitan Toronto.
B
Prospect of a downward spiral in the central city.
,, B
Imbalance between municipal responsibilities and the municipal finance base.
B
Transfers payment inequities.
B
Complexity and lack of accountability of the municipal finance system.
B
Impact of property tax on land use.
The Task Force hopes to be able to address all of these issues, though the need for an
interim report this fall brings some constraints.
the other area municipalities because we do not have costly subway lines; we also do not
receive a share in Metros Multi Cultural grant allocations. The list could be expanded
through further study of the matter.
The Borough of East York appears to benefit from its membership in the Metro federation
both financially and through the sharing of expertise and ideas. We recommend that the
Borough not support the City of Torontos resolution to dissolve the Metro level of
government. We should instead focus our efforts on the main event, which is the Greater
Toronto Area Task Force.
Conclusion:
Staff have provided Council, for their consideration, a listing of various fiscal reform
measures. Given the Task Forces current September reporting deadline, we should
consider the timeliness of our submission. Council should also give consideration to the
further direction of the review and public consultation process on issues relating to the
mandate of the GTA Task Force.
Attached to the foregoing report were Schedule A entitled Borough of East York
Operating Fund Revenues, Schedule B (i) entitled Changes in Assessment Base 1984-
1994), Schedule B (ii) entitled Commercial/ Industrial Assessment Percentage Change 1984-
1994) Schedule B (iii) entitled Total Assessment - Percentage Change 1984-1994) Schedule
C entitled Commercial Mill Rate Percentage Change 1984-1994), Schedule D entitled
Borough of East York Comparison of Per Capita Costs 1988-1992, Schedule E entitled
Metro Area Commercial Tax Rates, Schedule F entitled Share of Property Value vs. Share
of Tax Burden in Metro, 1992 ($billion), Schedule G entitled An Illustration of the Problem
of Volatility Using Market Values, Schedule H entitled Fair Tax Commission- Assessment
Reform Recommendations, Schedule I entitled Summary of The Dissolution of
Metropolitan Toronto Act, 1995, Schedule J entitled Municipal Population, Schedule K
entitled The Metropolitan Toronto School Board 1995 Sharing Ratios - A Percentage
Comparison, Schedule L entitled Statement of Assessment for 1995 Metropolitan Levy
Apportionment, Schedule M entitle Summary of Proposed Fiscal Reform
Recommendations.
Report of the Medical Officer of Health, Borough of East York, dated June 12, 1995:
This report is submitted on behalf of the East York Board of Health for the information
of Council as it prepares its submission to the GTA (Golden) Task Force on the issue of
municipal financing.
Since 1989, the six local boards of health in Metropolitan Toronto have advocated with the
Province to re-consider the provincial: municipal funding ratio for local public health
services and to make this ratio uniform across Ontario. At present, the ratio is 40:60 within
Metro and 75:25 outside of Metro. The original rationale for this difference related to
higher property tax revenues within Metro.
Past discussions involving the Premier, the Minister of Health and the municipal Mayors
and Board Chairs failed to generate action,
in part due to successive changes in
government. In 1991, the Province referred the matter to disentanglement and no further
action has been taken on it as a result.
The Liaison Committees advocacy efforts have centred on a report that outlines the
rationale for providing an equitable funding base for health units in Metro. The document
was updated in early 1995 and has been endorsed by the East York Board of Health
(attached).
Attached to the foregoing report was a draft report entitled Funding of Public Health
Units in Metropolitan Toronto, Updated and Revised from the Liaison Committee of
Boards of Health for Metropolitan Toronto, dated April 21, 1995.
Letter from Mrs. C. Davidovits, Secretary, Committee of Metro Local Area Councils, City
Clerks Department, City of North York, 5100 Yonge Street, North York, M2N 5V7, dated
May 12, 1995, which was previously considered under Item 6, Report No. 10 of the
Legislation, Building and Bv-Law Enforcement Committee, 1995:
At its meeting held on May 3, 1995 the Committee of Metro Local Area Councils had
before it your communication (May 2, 1995) requesting information on COMLACS
mandate.
The Committee of Metro Local Area Councils decided to:
(a) forward a copy of its Terms of Reference to the Borough of East York and
b)
to confirm to the Borough of East York that amalgamation issues are not part of
COMLACS mandate.
Accordingly, I am attaching a copy of COMLACS Terms of Reference for your
information.
Attached Committee of Metro Local Area Councils (COMLAC) Terms of Reference:
The Committee of Metro Local Area Councils (COMLAC) is an inter-municipal committee
of elected officials from Metropolitan Toronto local area Councils who will meet on a
regular basis to discuss issues of mutual concern. This group will serve to provide a forum
to hear the full range of views on issues of interest to local area municipalities. It will
allow for the exploration of options and opportunities that might not be readily available
to a single municipality, but that through joint or cooperative action, might result in a
viable and desirable overall strategy. COMLAC will explore opportunities to maximize the
use of available resources within the municipalities on specific issues.
This group is intended to augment the efforts of individual local area Councils and not
to usurp the rights and prerogatives of these bodies to make decisions within their areas
of responsibility. COMLAC will support these initiatives by being a forum whereby the
overall concerns of Metro local area municipalities will be fully heard and discussed. any
actions recommended by this group will be brought back by its members to their respective
Councils for review, discussion and final decision.
This group will be supported by senior staff representatives from each of the local area
municipalities. The staff group will draw upon, as appropriate, existing inter-municipal
staff committees which deal with specific issues, such as for finance, planning, public
health and public works. It will also work on issues not currently being addressed by
Metro local area municipalities.
These reform measures require study, however, it appears that most of these reform
measures will have the potential to reduce Metros portion of the East York tax levy. The
exceptions appear to be the consolidated business occupancy rate, removal of the weighted
residential assessment from the mill rate and a payroll tax to replace the business
occupancy tax. Since these latter reform measures have the potential to shift and change
the tax burden among different classes of rate payers, we suggest that East York Council
request the GTA Task Force to provide further clarification on the potential impacts prior
to supporting these fiscal reforms.
5. GTA Task Force - Timelines and Processes:
Contact with
.
staff at the GTA Task Force office has indicated the following:
The Task Force is still expecting to complete a report for September 1995.
The focus of the report will be the assessment crisis in Metro although
other fiscal reform issues will be included.
The Working Group on fiscal reform has reached a common definition of
the problems. The group is now entering the research stage of the study.
A plan for consultation with the municipalities and the public has not been
formalized and it is not expected to be until the end of June. However, we
have been urged to submit material to the working group whenever it is
available.
6. City of Torontos Resolution - The Dissolution of Metropolitan Toronto Act, 1995.:
Attached Schedule I provides a brief outline of the City of Torontos resolution which East
York has been requested to respond to. An actual copy of the resolution is available upon
request from the Clerks Department. We cannot provide a cost benefit analysis of the
proposed structure since it has not been determined where the services will be provided.
What is evident in this proposed structure is East Yorks lack of influence, since the
number of votes cast by the Boroughs representative will be related to the size of the
Boroughs population. East York has the smallest population in the Metro area as detailed
in Schedule J.
The Borough currently benefits from its membership in the Metro federation. A
quantifiable example is related to school board funding. Schedule K details the sharing
ratios for all the area municipalities. The Borough of East York currently contributes 3.05%
of the Metro School Boards tax revenues, but spends 5.1670 of the Metro School Boards
budget for a net gain of approximately $45 million. The City of Toronto contributes 42.41%
of the Metro School Boards tax revenues and spends 28.44% of the Metro School Boards
budget for a net contribution of approximately $298 million.
Schedule L details the municipal sharing ratios of Metropolitan Torontos Levy. Since
East York has the smallest assessment base, our relative portion of the Metro Levy is the
smallest of the area municipalities. This appears to be a benefit for East York. However,
a comparison of the consumption of Metros services with the amount paid to Metro
Toronto would provide a better indication of the value received by those who share
Metros levy. It should be noted that East Yorks value received from Metro differs from
d) Social Assistance Funding:
The FTC stated that funding for general welfare assistance should be removed from the
property tax base. Metro Council and the Board of Trade have endorsed this reform
measure. Todays economic environment dictates that this will likely be a longer term
reform measure. However, Council could still support this as a reform measure in the
hope that it may one day reduce Metros portion of the East York tax levy.
e) Variable Tax Rates:
The FTC recommended that municipal governments be allowed to establish their own
rates of tax on non residential properties, subject to a minimum rate set by the provincial
government. This fiscal reform would assist the municipalities in their dealings with the
business community. Municipal councils would have some discretion in the amount of tax
increases that they-pass on to the
beneficial to have this discretion,
measure.
f)
Business Occupancy Tax:
business community.
East York Council may find it
and we therefore suggest the support of this reform
The FTC has recommended that the business occupancy tax be abolished and that the
revenue be replaced with residential and non residential taxes. Business would be taxed
at the provincial level.
In East York, this would mean the shifting of $2.5 million in
business taxes to the residential and non residential sector. We suggest that East York
Council not support this reform measure. We would suggest however, that Council
support a review of the business occupancy tax with a view to establishing a link between
the amount of tax a business pays and its financial health.
g)
The following reform measures have been identified by Metro Toronto:
Business Occupancy Tax - consolidation of the five rates of taxation into one
average rate. The same amount of business tax would be collected.
However, the shift in taxation would be from larger business toward small
business.
The removal of weighted residential assessment from the mill rate setting
process. This would impact the residential property owner whose property
tax burden would increase. However, residential and non residential
property owners would be treated equally.
-
Pooling of non residential assessment across the GTA to fund education.
Sharing of welfare assistance costs on a GTA wide basis.
Pooling of a portion of the annual growth of all local assessment bases in
the GTA.
New revenue sources: hotel room tax, Metro Toronto lottery, share of
provincial sales and gasoline tax bases, payroll tax as an alternative to the
business occupancy tax.
Goals And Objectives
COMLAC will be guided by the following goals and objectives:
A. To support the role of local area Councils as representatives of the government
closest to the immediate and daily concerns of citizens.
B. To work cooperatively with other levels of government, other municipalities in the
Greater Toronto Area, and municipal sector organizations to address issues of
concern to Toronto area municipalities.
c. To explore joint actions between Metro local area municipalities so as to enhance
the overall efficiency and effectiveness of area municipalities.
Role Of The Committee
The role of COMLAC is:
I I *
To discuss issues of mutual concern and interest regarding municipal services and
operations within the Metropolitan Toronto area.
I ! *
To discuss issues related to the activities and initiatives of other levels of
government, as these impact on Metro local area municipalities.
I I *
To recommend joint or compatible action on inter-municipal issues in areas within
the jurisdiction and responsibility of the local area municipalities.
I I *
To recommend collective action on intergovernmental issues, in order to maximize
the impact of representations to the various levels of government and to municipal
sector bodies including the Association of Municipalities of Ontario and the
Federation of Canadian Municipalities.
I I *
Actions recommended by COMLAC to local area Councils may take the form of:
administrative and operational initiatives in areas within the jurisdiction of
area municipalities;
advocacy, thorough reports and personal representation, to other levels of
government and municipal sector bodies on issues dealing with policy or
implementation actions;
-
sharing of resources,
data, research to support the activities of the
Committee; and
exploring initiatives with other municipalities in the Greater Toronto Area
on issues of mutual concern.
Gener al Ar eas Of Int er est
COMLAC will focus on issues within the following generaI areas:
i) Act ivit ies of t he Mu nicip alit y of Met r op olit an Tor ont o which imp act
mu nicip alit ies;
ii) Act ivit ies of t he Pr ovince of Ont ar io and it s agencies which imp act
mu nicip alit ies;
iii) Activities of individual Metro local area municipalities which impact on o
municipalit ies, or which pr esent oppor t unit ies for joint act ion wit h ot
municipalit ies; and
iv) Act ivit ies of ot her municipalit ies in t he Gr eat er Tor ont o Ar ea which im
have the potential for impacting, on area municipalities.
Member ship
COMLAC will consist of up to two Councillors from each of the six area munic
Toronto, North York, Scarborough, Etobicoke, East York and York.
Staff Support
Each municipality will appoint one senior staff member to act as liaison person to
COMLAC and to coordinate actions within each municipality. This persons responsibility
would also include regular attendance at Committee meetings and at inter-municipal staff
meetings. Other senior staff may also attend meetings as appropriate.
Guests
COMLAC will invite, from time to time, guests to their meetings to assist the Committee
in its discussions on specific issues.
Officials could be invited from:
I I *
government-related bodies such as the Province of Ontario, School Boards and
Metropolitan Toronto;
M *
from special commissions such as the Commission on Planning and Development
Reform, the Fair Tax Commission and the Disentanglement Review Group;
I I *
from other municipalities in the Greater Toronto Area; and
U *
from municipal sector groups such as the Association of Municipalities of Ontario.
Procedures
Procedures for COMLAC will be determined by the Committee.
The City rationalized it in this way in their draft submission to the GTA Task
fiscal reform:The FTC unit value mod el pr ovid ed for pur e unit assessment
geographic zones, and variation among zones to reflect differences in rental val
the term reflect was not defined in relation to rental value, it might be inferred
1500 sq. ft. house on a 3,000 sq. ft.. lot in Zone A typically rented for 50% more
same size house on the same lot in Zone B, the taxable assessment of a Zone
would be 50% higher. The City felt that such a system is not implementable in a
in which property tax reform must be revenue neutral, due to the volatility fac
The City of Toronto modified the residential assessment system so that it woul
on property dimensions alone, subject to a restriction that the resulting annua
exceed some pr opor t ion of t he imput ed annual r ent . The Cit y of Tor ont o has no
published any impact studies for their proposed model.
Market Value Assessment (MVA):
This is the model currently in use in Metro. The recent MVA plan failed beca
did not think it was fair. The FTC has discredited the MVA model because it
sat isfy many of t he pr inciples upon which a fair and accept able assessment
based .
Review of an alternative assessment system has received the support of Metr
City of Toronto and the Board of Trade. Metro Council, in a recent report, has
its willingness to act as a pilot project for testing the Fair Tax Commission a
p r op osals.
We suggest t hat East Yor k Council suppor t t he r eview of an alt er nat ive a
system. The system would be based on the principles advanced by the FTC a
restore a greater degree of balance to the property tax burden between the class
exist elsewhere in the GTA.
b) Ed ucat ion Finance Refor m:
The FTC recommended that education financing be removed from the residenti
tax and that these expenditures be funded from revenue sources that reflected
ability to pay. These expenditures would have been financed through income
other provincial revenue sources.
However, in a March 1995 report, the Minister of Education and Training indic
t he st ud y of ed ucat ion finance must oper at e wit hin t he assumpt ion t he p
contribution to education will not increase, given the governments commitme
wit hin it s means. The opposit ion par t ies have not d isagr eed wit h t his posit
parties have also included income tax reductions in their platforms. It appears
residential property tax for education purposes will remain where it is.
The Board of Trades Position on Education Financing:
Since education provides a universal benefit to business, The Board of Trade fe
is unfair to force Metro businesses to bear the very heavy local cost of educa
Board advocates the introduction of a uniform provincial property tax rate on
for education purposes to replace all the separate local rates across the provinc
City of Torontos Position on Education Financing:
The City feels that a major cause of the GTA tax gap is a provincial school funding system
which is biased against the urban areas. The Metro area contributes approximately $1
billion/ year(net) to fund education systems in municipalities whose property taxes are
lower than ours.
Metro School Board financing relies on the pool system, whereby Toronto, Etobicoke and
North York raise more property taxes than their schools cost with the surplus being
transferred to school boards in York, East York and Scarborough. The City proposes to de-
pool Metro property taxes with the Province funding the York, East York and Scarborough
School Boards. The new funds would be sufficient to maintain the school board budgets
of York, East York and Scarborough, and reduce effective education tax rates for business
to the outer GTA level (equivalent to a 20% reduction in the total tax bill). In the City, tax
bills for business under this scenario would decrease by approximately 23%. There would
be no change in residential taxes anywhere in Metro. The cost to the Province would be
approximately $600 million/ year, which should be financed from the Provincial education
grant fund (currently funded at approximately $5 billion/ year).
If de-pooling is not feasible in the short run, Provincial funding should flow directly to
the Metropolitan Toronto School Board and the Metro Separate School Board as required
to reduce commercial/ industrial taxes by 20% Metro-wide. The cost to the Province under
this scenario would be approximately $500 million/ year, which should be financed as
under the de-pooling scenario....
The issue of education finance is currently under review by the Sweeney Task Force. The
East York Board of Education is expected to submit a position paper to the Task Force by
the end of June. The Task Force is expected to report by November 1, 1995.
c) Equity of Provincial Grants:
Metro has indicated that the difference in some funding received by Metro Toronto and
the outer GTA municipalities appears to be related to how ability to pay is measured by
the formulas. The impact of moving away from assessment or population based formulas
need to be explored.
It has been stated that Provincial grants for Education and Police Services do not take into
account the many unique requirements of the Metro area. The basis for calculating grants
should be revised to ensure that the payments provide adequate funding and that they are
fairly distributed.
The inequity in the funding of East Yorks health services has already been stated. In past
years, the Borough also received minimal resource equalization grants because our per
capita assessment was much greater than the provincial average. We suggest that East
York Council request the GTA Task Force to examine the equity of provincial grant
funding.
municipalities become wealthier. The flight of business from the Metro area is said to be
caused by the tax gap which exists between Metro and the outer GTA municipalities
whose commercial / industrial tax rates are lower.
Illustrating the GTA Tax Gap:
The Board of Trade in their publication Killing The Golden Goose has indicated that
businesses locating in Metro Toronto pay realty and/ or business taxes on commercial
properties which are typically from 45% to over 80% higher than the rest of the GTA. On
industrial space, the potential savings typically range between 35% and 50%.
Consequently, many Metro businesses could halve their property taxes simply by
relocating outside of Metro.
Attached Schedule E illustrates the commercial/ industrial tax gap between Metro area
municipalities and some outer GTA municipalities. East Yorks commercial tax rate (per
sq. ft.) is one of the lowest in the Metro area, but Mississaugas tax rate is still 37% lower.
East Yorks industrial tax rate (per sq. ft.) is one of the highest in the Metro area, which
would make it much harder to compete with the tax rate in Markham or Vaughan which
is 4770 lower. There may be numerous reasons why businesses are leaving the Metro area
but the tax premium paid on a Metro location is certainly one of them.
e) Reasons for the Tax Gap:
The reasons cited for the tax gap have been assessment policy, higher cost structure of
services provided in the Metro area and the inequity of provincial grants. The latter two
problems have been discussed.
Assessment Policy:
One problem in Metropolitan Toronto is the discrepancy in tax burden between the
residential and non residential classes. According to the Fair Tax Commission, commercial
and industrial property (in Metropolitan Toronto) is taxed at roughly twice the rate of
residential property. Schedule F shows that the commercial/ industrial sector represents
approximately 30% of the total market value assessment base but shares in 57% of the tax
burden. Whereas the single residential sector represents 62% of the total market value
assessment base and shares in 29% of the tax burden.
The last reassessment in Metropolitan Toronto was undertaken in 1953. The recent failed
attempt to update the market value assessment base would not have corrected the problem
in the short run because of the caps put in place to protect residential and industrial
property owners against tax increases. Several business owners would also have
experienced significant tax increases.
According to the Assessment Act, all real property must be assessed at its market value.
However, the Fair Tax Commission has discredited the use of market values as a basis for
assessment valuation. Market values include a value attributable to potential future uses
or changes in value. These values are speculative and will vary with the business cycle and
the health of the local economy. This is especially true in the Metropolitan area. Attached
Schedule G illustrates the problem of volatility using market values. This volatility would
make the tax base extremely unstable. Taxpayers have also complained about not being
able to understand how the current assessment system works.
There are enough
weaknesses in the market value assessment model to merit the examination of an alternate
assessment system.
4. Fiscal Reform Issues:
The fiscal challenges faced by the Borough include: an eroding assessment base,
increasing costs, and declining and inequitable provincial grant funding. The discussion
will now focus on various fiscal reform measures which have been proposed to assist
municipalities to meet these challenges. The GTA Task Force will be studying and
performing financial modelling of various reform measures identified through its review.
a) Assessment Reform:
There are currently three known assessment models available for review by the GTA Task
Force:
Fair Tax Commission-Unit Value Assessment System:
The Fair Tax Commission completed a study entitled Fair Taxation in a Changing World
in December 1993. This study will be drawn upon by the GTA Task Force as they examine
fiscal reform issues.
The Fair Tax Commission (FTC) proposed that an assessment system, in addition to
meeting a fairness criterion, should be guided by the following principles:
From the viewpoint of the ratepayer, individual assessments should be:
objectively verifiable and easily reproduced;
clearly understood;
consistently administered;
not subject to large year to year fluctuations; and
may be appealed in an accessible, objective, and fair process.
From the perspective of provincial and local governments, the system should have:
a stable revenue potential over time;
the lowest possible administrative costs consistent with fairness
objectives; and
the least possible negative impact on economic development, both
within the local area and in the province. P.692
To satisfy these principles, the FTC recommended that the existing market value based
system be replaced with a unit value system which is detailed in Schedule H. The unit
value system remains untested at this time and detailed impacts are unknown.
City of Torontos Proposed Assessment System:
The City of Toronto has recently proposed an assessment system closely related to the
system proposed by the FTC.
While the City supported the FTCs model for non
residential assessment, they did not support all the elements of the residential model.
r el a t i vel y l ower t a x r a t es on commer ci a l / i n d u st r i a l p r op er t i es. Th e Me
municipalities are hoping that the GTA Task Force will recommend fiscal reform
which will correct some of the fiscally related inequities between the inner' an
GTA municipalities. These would assist Metro area municipalities in reducing
rates through cost reductions. Metro area municipalities may then be in a better pos
to entice business to remain.
2. The Bor oughs Financial Pict ur e:
In a decade, from 1984 to 1994, the Boroughs operating fund expenditures have
79%. Schedule A shows that the Composition of the Boroughs sources of operat
r evenues have r emained fair ly consist ent wit h pr ovincial gr ant s d eclining 2.6%
r evenues incr easing 1.1%.
The assessment base (Sched ule B(i)) exper ienced a $12.4 million ($1.5 million
por t ion -1995 t ax d ollar s) d ecline in commer cial/ ind ust r ial assessment which
by a $15.2 million ($1.5 million Borough portion -1995 tax dollars) increase in r
assessment resulting in a modest increase of .9770 in total assessment.
Sched ule C illust r at es t he impact of incr eased expend it ur es and a mod est ly
assessment base on a commercial/ industrial ratepayer. Over the decade, a prop
experienced an 85.1% increase in their property tax bill. This includes an increase
for the local government portion, 94.3% for the public school board portion and
t he r egional gover nment por t ion. In 1984, the Borough had the third lowest milI rat
the Metro area. In 1995, the Borough had the second highest mill rate in the M
Schedule D provides us with a comparison of the Boroughs per capita total c
some Metro area municipalities as well as some outer GTA municipalities. East
capita personnel and total costs were average for Metro and the group of mun
However, its increases in per capita costs were on the high end of the scale. On
Metro municipalities spent slightly more on personnel costs and slightly lesson
per capita than the outer GTA municipalities.
During the period 1988-1994, the Boroughs reserve and reserve fund balances
by 46% to $14.6 million. This reflects the success of the Boroughs pay as you g
financing program. Funds are transferred to reserves from the operating fund t
the Boroughs capital works program. Debenture costs are declining each year with
expectation that we will be debt free by 2003.
3. The Bor oughs Challenges:
a) Incr easing Cost s:
The Bor ough is cont inuing in it s effor t s t o cont r ol cost s t hr ough st r eamlin
r eor ganizat ion. However, in spite of our efforts we will continue to feel the press
increasing costs with the expiration of the social contract in 1996. Council will
t o be challenged by t he balance t hey must st r ike bet ween t ax incr eases an
provision.
b) Higher Cost Structure of Metro Toronto and the Public School Board Services:
The Metropolitan Toronto School Board and Metro Toronto represent 79% of the
Boroughs tax bill, and their financial pressures also impact on the Boroughs ratepayer.
Metro Toronto in their report An Agenda for Fiscal Reform in Metro Toronto indicated
the following reasons for the higher cost structure of their services:
Many of the human and social services, particularly those delivered by
Metro Toronto and the school boards (education, policing, hostels, daycare,
welfare, and homes for the aged), are required more heavily by certain
segments of the population. Low income families, older individuals, recent
immigrants and individuals with low educational attainment are more
likely to place higher demands on these services. The population of Metro
Toronto, as is the case in the central areas of many major urban areas, has
a larger and higher concentration of these special needs than are found in
the newer, primarily single family, outer suburbs of these regions. The
higher service demands from this inner city population drive up the costs
for public service providers, which in turn increases taxes. If these higher
costs are not compensated for in some way there is a risk of further
polarization of the population, leading to a downward spiral. P.5.
Metro tax payers also fund costly services such as the Metro Zoo and the Toronto
Reference Library which are enjoyed by all the residents and businesses of the Greater
Toronto Area.
c) Inequities in Provincial Grant Funding:
The Boroughs proportionate share of total provincial funding has declined 2.6% over the
decade. This includes unconditional and conditional grants, as well any other provincial
funding received by the Health Unit, Parks, Recreation and Operations Department and
the Library. Provincial funding will probably continue to decline as the Province attempts
to reduce its deficit. Another problem relates to the equity of provincial funding. The
Health Units general programs continue to be funded at 40%, while outer GTA
municipalities receive 75% funding.
The Metropolitan Toronto School Board receives
virtually no funding from the Province, while the school boards in the four other GTA
regional municipalities all receive funding.
Metro has stated that the TTC is the least
provincially subsidized transit authority in the Province, while transit operators elsewhere
receive relatively higher levels of funding. Ambulance services . . . represent another service
in which provincial transfers are comparatively lower in Metro than the rest of the GTA.
d) Eroding Assessment Base:
The Boroughs assessment base continues to be eroded through record numbers of tax
appeals, which have resulted from the availability of the MVA information. The Boroughs
non residential assessment has declined 16.35% over the past decade. Non residential
assessment is the most profitable segment of a municipalitys tax base because it pays
similar or higher taxes than a residential property, but generally demands less in the way
of servicing. As Schedule B(ii) indicated, East York and other Metro area municipalities
are losing non residential assessment to the suburban municipalities, thereby causing Metro
area municipalities to come under increased financial pressure while the surrounding
THE CORPORATION OF THE BOROUGH OF EAST YORK
Item 7, Report No. 1 of the REGULATORY AND DEVELOPMENT COMMITTEE, as
adopted by Council at its meeting on June 19, 1995, without amendment.
7.
The
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
REVIEW OF METROPOLITAN TORONTO GOVERNMENT
Regulatory and Development Committee recommends as follows:
approval of recommendations no. (2) and (3) contained in the following
report of the Chief Administrative Officer, dated June 12, 1995;
that the Council of the Borough of East York requests the Finance Working
Group of the Greater Toronto Area Task Force to study the issue of variable
tax rates;
that the aforementioned report of the Chief Administrative Officer be
forwarded to the Greater Toronto Area Task Force for their information;
that the Chief Administrative Officer be requested to continue receiving
input and information on the review of Metropolitan Toronto Government
and to report once in receipt of further details concerning the direction of
the Greater Toronto Area Task Force;
that the Chief Administrative Officer be requested to report after preparing
preliminary comments on political structure and governance issues;
that the Committee of Local Area Councils be advised, that at the present
time, the Borough of East York wishes to maintain its observer status with
respect to membership on the Committee of Metro Local Area Councils and
that the Chief Administrative Officer continue to represent the Borough of
East York in this capacity;
that the following report of the Medical Officer of Health of the East York
Health Unit, dated June 12,1995, be received and noted;
that the following letter from the Secretary, Committee of Metro Local Area
Councils, dated May 12, 1995, regarding the Terms of Reference of that
Committee, be received and noted;
that the following letter from the Secretary, Committee of Metro Local Area
Councils, dated May 12, 1995, regarding the City of Toronto proposal for
dissolution of Metropolitan Toronto, be received and noted;
(IO) that the following letter from the Secretary, Committee of Metro Local Area
Councils, dated May 12,1995, regarding appointments to a municipal staff
group responding to the Greater Toronto Area Task Force, be received and
noted; and
(11) that the following newsletter from Ms. Anne Golden, the Greater Toronto
Area Task Force, dated June 2 1995, be received and noted.
Report of the Chief Administrative Officer, dated Tune 12, 1995:
Recommendations:
It is recommended that:
(1) Council provide staff with further direction regarding the review and public
consultation process on issues relating to the mandate of the Greater Toronto
Area Task Force;
(2) Council not support the City of Torontos resolution to dissolve The Municipality
of Metropolitan Toronto; and
(3) the Borough Clerk advise the City of Toronto, Municipality of Metropolitan
Toronto and the other area municipalities of the Boroughs position.
Background:
Council, at its April 18, 1995 meeting, endorsed the process for the Boroughs review of
issues relating to the mandate of the Greater Toronto Area (GTA) Task Force. As part of
this process, staff have prepared a report which defines the problems that have necessitated
the need for fiscal reform. This is followed by a presentation of fiscal reform options. We
have also made suggestions on items to be forwarded to the GTA Task Force for further
study and review. At this time, the GTA Task Force is expected to complete a report on
fiscal reform by September 1995. Issues relating to the governance of the GTA have been
left for future discussion to coincide with the Task Forces examination of the governance
issues.
Council has advised the City of Toronto that the Borough would be responding to their
request for comment on their proposed dissolution of Municipality of Metropolitan Toronto
after June 19, 1995. This report also addresses that matter.
Discussion:
l. An Overview of the Problems:
The Greater Toronto Area (GTA) comprises 30 municipalities and 5 regions. The
municipalities range from Burlington in the west to Clarington in the east and north to
Lake Simcoe. The regions include Halton, Peel, York Durham and Metropolitan Toronto.
Metropolitan Toronto area municipalities and the City of Toronto in particular, feel that the
vitality of the inner city is being threatened and that we are in danger of suffering the
donut syndrome as businesses take flight to the outer GTA municipalities, which offer
Borough of East York
Office of the Chief Administrative Officer
September 13, 1995
Dr. Anne Golden
Greater Toronto Area Task Force
393 University Avenue
20th Floor
Toronto, Ontario
M5G 1E6
Dear Dr. Golden:
The Council of the Borough of East York met in a special session on Monday, September
11, 1995 to finalize its submission to the Greater Toronto Area Task Force.
The attached Council resolution, together with my report entitled Rational Reform in the
Greater Toronto Area: The East York Proposal form East Yorks formal submission to you.
If you have any questions or require clarification, kindly call me at (416) 778-2160.
Yours truly,
/ cl
Encls.
Cc. Mayor Michael Prue
Borough Clerk
GTA TASK FORCE
X50 Coxwcll Avenue B East York, Ontario B M4C 5R 1 B Tel 4 ] ()/778.2] 60 . Fax 4 I 6/77~.9254
THE CORPORATION OF THE BOROUGH OF EAST YORK
RESOLUTION
September 11, 1995 No. 1.375
Moved by M. Prue
Seconded by L. Krawchuk
RESOLVED THAT the Council of The Corporation of the Borough of East York
hereby approves the following recommendations contained in the report of the Chief
Administrative Officer, dated August 25, 1995:
(1) That Council request the Provincial Government to consider as a priority the reform of
the existing property tax system, particularly as it is implemented in the Greater Toronto
Area;
(2) That Council request the Provincial Government to revise its policies and programs on
grants to municipalities, health units and school boards so that there is equitable
application within the Greater Toronto Area;
(3) That Council request the Provincial Government to examine the feasibility of granting
new sources of revenue for the Greater Toronto Region;
(4) That the revised boundaries of the Borough of East York be: on the south, Danforth
Avenue; on the west, the existing boundary of Bayview Extension, Moore Valley to
Moore Avenue and Bayview Avenue; on the north, the southern property line of
Sunnybrook Hospital, east to the Don River West Branch to the northern boundary of
Sunnybrook Park, east to the CN Rail Line Leaside Branch, south-east to the CP Cross
Town Rail Line, north-east to the Don River East Branch, south to Eglinton Avenue, east
(5)
(6)
(7)
(8)
(9)
(lo)
(11)
- 2 -
to the Hydro Corridor and north-east to Warden Avenue; on the east, Warden Avenue
in accordance with Appendix A, and as shown on the map described as Appendix B of
the report of the Chief Administrative Officer, dated August 25, 1995;
That the Golden Task Force consider similar boundary changes within the GTA, to both
area and regional municipal borders, to promote wholeness of communities, divisions
along natural and urban barriers, acceptable commercial / industrial to residential
assessment ratios and regularized service areas;
That the Golden Task Force consider the benefits of smaller-sized municipalities as it
develops options for the restructuring of government across the GTA;
That the current division of responsibilities between the area and regional level of
governments be reviewed and amended to improve service to the public, eliminate
duplication and strengthen accountability;
That, if the provincial government determines to eliminate the Metro Toronto level of
government, it be replaced with an over-arching authority accountable for certain cross-
municipal needs;
That, if the provincial government determines to eliminate the Metro Toronto level of
government and replace it with an over-arching authority, the elected representation be
by members of local area Councils;
That, if the provincial government determines to eliminate any special purpose bodies
within East York, the Borough Council assume direct responsibility for the functions and
services delivered; and
That having received public comment, the Council forward the aforementioned
recommendations to the Golden Task Force before the end of September, 1995.
Borough Clerk Wm. Alexander, Jr. Mayor M. Prue
Reform in the Greater Toronto Area:
The East York Proposal
Rational Reform in the Greater Toronto Area:
The East York Proposal
SUMMARY OF
RECOMMENDATIONS
Recommendations on
Boundary Redefinition
THAT the revised boundaries of the Borough of East York be:
B
on the south, Danforth Avenue;
B
on the west, the existing boundary of Bayview Exten-
sion, Moore Valley to Moore Avenue and BayviewAv-
enue;
B
on the north, the southern property line of Sunnybrook
Hospital, east to the Don River West Branch to the
northern boundary of Sunnybrook Park, east to the
CN Rail Line Leaside Branch, south-east to the CP
Cross Town Rail Line, north-east to the Don River East
Branch, south to Eglinton Avenue, east to the Hydro
Corridor and north-east to Warden Avenue;
B
on the east, Warden Avenue. (More particularly de-
scribed in Appendix A, and as shown on the map at-
tached as Appendix B.)
THAT the Golden Task Force consider similar boundary
changes within the GTA, to both area and regional municipal
borders, to promote wholeness of communities, divisions
along natural and urban barriers, acceptable commercial/ in-
dustrial to residential assessment ratios and regularized ser-
vice areas.
THAT the Golden Task Force consider the benefits of smaller-
sized municipalities as it develops options for the restructur-
ing of government across the GTA.
Reform in the GTA
The East York Proposal
Recommendations
THAT the current division of responsibilities between the area
on Region-Wide and regional level of governments be reviewed and amended
Gov er n men t
to improve service to the public, eliminate duplication and
strengthen accountability
THAT, if the provincial government determines to eliminate
the Metro Toronto level of government, it be replaced with an
over-arching authority accountable for certain cross-munici-
pal needs.
THAT, if the provincial government determines to eliminate
the Metro Toronto level of government and replace it with an
over-arching authority, the elected representation be by mem-
bers of local area Councils.
Recommendations on
THAT, if the provincial government determines to eliminate
Special Purpose Bodies
any special purpose bodies within East York, the Borough
Council assume direct responsibility for the functions and
services delivered.
Reform i n the GTA 2 . The East York Proposal
PART 1 : BACKGROUND
1.1 Why An East York
T
he existing state of municipal and government structure
Position on
as it impacts the Borough of East York is fundamentally
Governance
good for the residents and businesses of East York. The con-
cept, as realized within East York, has a strong area munici-
pality held accountable by its attentive ratepayers for the effi-
cient delivery of primary municipal programs and services.
A second-tier municipality assumes responsibility for munici-
pal requirements which cross boundaries or achieve large
economies of scale. The theory of municipal governance is
sound; its application from the East York perspective is ac-
ceptable.
East York believes that the primary problem which encum-
bers municipalities in the Greater Toronto Area is the struc-
ture of municipal financing. In particular, the current prop-
erty tax system, as implemented in the GTA, produces ineq-
uities among taxpayers within and between municipalities.
The Boroughs tax assessment base and its modest growth
has been sufficient for the prudent and responsible delivery
of local government in East York for 28 years. However, it has
been weakened in recent years by assessment appeals and
shifts in the non-residential base. If these trends continue un-
checked, if reform to the property tax system is not forthcom-
ing and if provincial grants are further reduced, the East York
assessment base could become inadequate. At its June 19,1995
meeting, Borough Council considered a report discussing the
issues of municipal finance and property tax reform. This re-
port was forwarded to the Golden Task Force.
Although the Borough can define the problem and seek a so-
lution on the narrow terms of municipal finance and prop-
erty taxation, we recognize that other municipal governments
in the GTA and the provincial government have different per-
spectives. As a result, other issues have been introduced by
them, particularly related to governance, and will be consid-
ered along with the municipal finance issues.
We have reviewed the proposals which various municipali-
ties have brought forward, and we have listened to a myriad
of opinions about change in the GTA. Some of these propos-
als, implicitly or explicitly call for the elimination of the Bor-
ough of East York. For this reason, East York is compelled to
describe a proposal for governance which serves the best in-
terests of the ratepayers of the Borough, but contains general
implications for good governance in the GTA.
Reform in the GTA
3 . The East York Proposal
1.2 Pri n ci p l es for
Change
This proposal not only promotes the survival of East York in
response to calls for elimination, but advocates East York as a
model of responsive, open and cost-efficient government able
to serve its citizens in a special way because of its smaller
size. Because of the uncertainty about action to resolve the
property taxation problems, we propose modest boundary
changes to ensure a viable assessment base. We recognize this
proposal results in minor encroachments on neighboring
municipalities, but we believe it is further justified by ben-
efits of rationalized communities and reasonable service ar-
eas.
This proposal is a modest one and specific to the circumstances
of East York. We do not presume to offer the solution to all
concerns of municipal governance, finance or values attrib-
uted to the GTA. Nevertheless, we suggest that the substance
of this specific proposal for rational reform may have value
for general application.
One should have regard to an acceptable framework of prin-
ciples in considering change to the municipal level of gover-
nment in the GTA. We propose the following principles which
are relevant to issues of function, form and financing.
A. Function
B Municipal services which are best defined by local
concerns and choice should be delivered by area mu-
nicipalities.
B Municipal services which benefit from economies of
scale or car r y pot ent ial spillover benefit s t o
neighboring municipalities should be delivered at a
regional level.
B The concept of redistribution of resources is valid at
the local level and is achieved through the appropri-
ate assignment of service responsibilities between the
province, the regional level and the area municipal-
ity.
B The sharing of services between tiers should be mini-
mized to avoid ratepayer confusion, conflicting poli-
cies and duplicate costs.
B. Form
B Municipalities within the GTA should contain well-
defined compact communities offering a variety of
employment opportunities and housing choices.
Reform i n the GTA 4 . The East York Proposal
c.
B Municipalities should not be so large that citizens are
not permitted adequate access to the political and ad-
ministrative systems or that the local government loses
sensitivity to its citizens issues and concerns.
B Municipalities should be both small enough to know
what services and amenities their ratepayers want,
and large enough to supply them cost-effectively.
B Boundaries of municipalities should align with natu-
ral geographic barriers or significant linear landmarks
such as highways or rail lines, respect historic com-
munities and neighbourhoods, and define proper ser-
vicing areas.
Financing
B Municipal finance and taxation policies should sup-
port strong local government and compact urban
form.
B Municipal finance, provincial transfer and taxation
policies should be developed and implemented SQ as
to ensure equity among municipalities and to avoid
artificial advantages in attracting local business.
of accountability of the municipal government to its
ratepayers and electors.
Reform in the GTA
5 . The East York Proposal
PART 2: PROPOSAL FOR
CHANGE IN THE GTA
2.1 Boundary
Redefinition w
e believe that some boundaries of the region currently
defined as Metropolitan Toronto and its encompassed
area municipalities are artificially drawn and have no rational
foundation. They do not accurately reflect identifiable com-
munities, natural topographic or urban features, or reason-
able service areas. The Steeles Avenue border of Metropolitan
Toronto (and Etobicoke, North York and Scarborough) does
not reflect the true commercial or residential community.
Within Metro, communities are fragmented by political bor-
ders. For example, the boundary between East York and the
City of Toronto near Danforth Avenue is convoluted and con-
fusing it does not align with the actual community of the
East Danforth.
In June of 1977, the Honorable John P. Robarts submitted his
report of the Royal Commission on Metropolitan Toronto which
made certain recommendations on the structure, organization
and operations of local government within the Metropolitan
Toronto area. The Commission noted that boundaries within
Met r opolit an Tor on t o weaved i r r egu l ar l y t h r ou gh
neighbourhoods and individual properties, often artificially
dissecting local streets. Robarts recommended a significant
realignment of boundaries of the area municipalities within
Metro which resulted in a more even distribution of popula-
tion among the six area municipalities while ensuring an ap-
propriate minimum population base. Specifically the recom-
mendations would have caused an increase in population of
East York and York by 130% and 600/ 0 respectively a decrease
in population for North York and Scarborough by 25% and
200/0 respectively and marginal or no change for Toronto and
Etobicoke. There would be corresponding shifts in the assess-
ment bases.
The boundaries chosen by the Robarts Commission aligned
along natural barriers. Further, they were consistent with
known community groupings, promoted an acceptable com-
mercial/ industrial assessment to residential assessment ratio,
and eliminated awkward servicing problems. The recom-
mended boundaries for the Borough of East York were Bayview
Avenue and Bayview Extension on the West, Danforth Avenue
on the South, Warden Avenue on the East, and York Mills Road
and Ellesmere Road on the North.
Reform i n the GTA 6 . The East York Proposal
Although these recommendations of the Robarts Commis-
sion were not implemented by the provincial government of
the day, we believe that the concept and rationale are cur-
rently valid. However, the boundary redefinition proposed
by East York is more restrained than that proposed by Robarts.
It results in an increase in population of East York by approxi-
mately 75%, and has a modest impact on the size of the cities
of North York (.5.4/0 decrease in population), Toronto (3.9%
decrease in population) and Scarborough (4.1% decrease in
population). We do not believe these adjustments would com-
promise the integrity or efficiency of our neighboring mu-
nicipalities. The Golden Task Force in any event should con-
sider other rational boundary changes which would affect the
size of these cities (such as the boundaries of Scarboroughs
Port Union Road, North Yorks and Scarboroughs Steeles
Avenue and Torontos Victoria Park Avenue).
The following discussion addresses the reasoning for the pro-
posed boundary redefinition for East York. The details of
boundary proposal are set out in Appendix A and shown on
the map attached as Appendix B. Appendix C presents the
specific rationale for the boundary changes proposed.
A: Alignment of Community
Local municipalities need rational definition so that commu-
nities, both residential and commercial, can be properly iden-
tified, represented and supported. The alignment of commun-
ities to develop common interests in the municipal context
should have geographical common sense. Reasonable physi-
cal boundaries will support communities in focusing their
demands for municipal services and their expectations for
responsible government. Sensible physical borders better de-
fine the service areas for such permanent facilities as commun-
ity centres, fire haIIs and operations yards, and thereby sup-
port effective and cost-efficient delivery of service. Under the
current municipal boundaries within Metro, basic services
such as garbage collection and snow clearing are impeded by
the awkward street borders. Even in terms of economic de-
velopment, the arbitrary boundaries cause difficulty. For ex-
ample, the OConnor industrial area is split between East York
and North York and as a result cohesive economic develop-
ment support systems depend upon a high level of effort be-
tween municipalities.
Reform in the GTA
7 . The East York Proposal
Therefore, the recommendations on boundary redefinition are
intended to resolve existing inadequacies as they affect East
York communities so as to realize the benefits of rationaliza-
tion.
B. Viable Assessment Base
The Borough of East York has the smallest ratio of industrial/
commercial assessment to residential assessment in Metro-
politan Toronto (220/ . industrial/ commercial to 78% residen-
tial). As indicated earlier, this base has been adequate to sus-
tain the delivery of municipal service in East York. However,
with the recession and aggressive competition from other GTA
municipalities for economic development, that tenuous tax
base has evolved to an uncomfortable level. The Robarts
Commission stated as an objective that any transfer of popu-
lation from one area municipality to another must be accom-
panied by a corresponding financial base.
The recommendations on boundary redefinition address both
the need to correct current inadequacies in the assessment
base, brought on by changes in the GTA economy and the
requirement to ensure a proper assessment base related to
proposed changes in the population. We estimate that the
implementation of the proposed boundary changes would
improve the Boroughs ratio of industrial/ commercial to resi-
dential assessment base from 22/ 78 to 31/ 69. This would
move East York closer to the current average ratio of 35/ 65
for Metropolitan Toronto municipalities.
C. Valued Characteristics of a
Smaller-scaled Municipality
The proposal on boundary redefinition is intended to enlarge
the area of the Borough of East York, but in modest propor-
tion. While we do not make specific recommendations on
other boundary changes to either area municipalities within
the current borders of Metropolitan Toronto or other area
municipalities within the GTA, we do promote the notion of
smaller scaled municipalities. We recommend that the task
force consider the special values of the smaller size as it con-
siders options for boundary restructuring.
The municipal level of government is closest to and most ac-
cessible by the citizens it serves. The dominant reason for
this is the comparative smaller size of the jurisdiction which
permits simpler and more streamlined administrations and
decision-making processes. The provincial and federal levels
of government typically have more costly and complex bu-
Reform i n the GTA
8 . The East York Proposal
reaucracies primarily because of the breadth of the public
which they serve. If municipal governments have responsi-
bility for too large a jurisdiction, the administration and deci-
sion-making processes will also become bureaucratic and com-
plex. The traditional value of the municipality as being most
accountable to its public is then jeopardized.
At a population of 102,000, East York is the 35th largest mu-
nicipality in Canada, although the smallest of the Metro area
municipalities. Because of its relatively small size, the Bor-
ough benefits in ways that the larger scale municipalities can-
not:
. Council is truly accessible and is noted for the fact
that it welcomes public deputations at all Committee
and Council meetings with no requirement for prior
notice or related agenda items. In addition, ratepayers
groups and known interested parties are given prior
notice of issues coming to Committee and Council.
We are aware of no other municipality which has a
similar level of community accessibility to the deci-
sion-making process.
B The Borough enjoys the demonstrable corporate val-
ues of a small-town public service, but with the pro-
fessionalism and sophistication of concern required
of an urban centre.
B Because of the compact geographical size of the mu-
nicipality, the connections between Council members
and the community are enhanced as they meet each
other in the daily life of the Borough.
. We benefit from a highly developed community in-
terest and willingness to participate in municipal con-
cerns, as evidenced both by the level of participation
at Committee and Council meetings and the intense
voluntary involvement of the communities on com-
mittees and at events.
B Because of the spirit of community involvement, the
commitment of Borough staff to consult with the pub-
lic and identified stakeholders is reinforced.
. Because of the closeness of the community staff are
non-bureaucratic, enthusiastic, accessible and in-
volved in their community.
Reform in the GTA
9 . The East York Proposal
B The administration is cost-efficient. The Borough has
the lowest ratio of staff to population in Metropoli-
tan Toronto. It has minimal overhead and support
structures as it is able to rely upon personal contacts
within a small and simple organization and is gov-
erned by the need to be flexible and self-sufficient.
B The Borough has a cost-efficient, yet accessible, part-
time Council whose eight members receive the small-
est salary and office budgets in Metro Toronto and
who collectively share one support staff person.
B East York has a cost-efficient, yet accessible, Mayors
office with a total staff complement of one adminis-
trative assistant.
B Because both the administration and the Council body
are supported by only modest and essential resources,
there are few unwanted and unwarranted interven-
tions by the municipal government in the affairs of
the Borough.
B Because of the streamlined administration and the
demand for self-sufficiency, there is significant reli-
ance upon shared arrangements with the Board of
Education, the Hydro Commission, Health Unit, Pub-
lic Library, and other business and community
groups.
B We are governed by a Council which is co-operative,
non-fragmented and acutely attentive to the needs
of the citizens of the Borough. In a public opinion
poll commissioned by Metropolitan Toronto a few
years ago, East York showed the highest voter satis-
faction for service delivery and political accountabil-
ity of all Metro area municipalities.
We believe that these real benefits are possible because of the
manageable size of the municipality, and that other munici-
palities within the GTA could realize the benefits if they were
structured in a similar size range. The recommendations on
boundary redefinition are intended to limit the size of East
York to a population of no greater than 180,000 so as to pre-
serve these special characteristics of a smaller municipality
which we know are particularly valued by our citizens.
In an age of diminishing tax resources, East York is the his-
toric model of urban efficiency and right-sizing. Out of ne-
cessity, we have always managed to achieve very high
ratepayer satisfaction with our services. It would be a tragic
Reform i n the GTA
10 . The East York Proposal
irony if the government were to dismantle the very model
which works so well out of a mistaken assumption that larger
units of local government are more efficient. In fact, East York
is proof to the contrary.
D. Internal Political Structure
The Borough of East York as enlarged by the proposed bound-
ary redefinition must also have its wards restructured. The
internal ward boundaries should be redrawn to coincide with
communities and neighbourhoods.
The current representation in East York is two Councillors
elected for each of four wards, and the Mayor elected Bor-
ough-wide. The structure of two Councillors per ward has
allowed for appropriate coverage of constituent concerns with-
out requiring a full-time commitment (and the naturally
associated administrative costs) by the Councillor. It has also
resulted in a Council with nine members which allowed for a
broader perspective of opinion in dealing with Borough-wide
concerns. The ward structure would be re-drawn with the
change of Borough boundaries, but in a manner which would
not increase the number of elected representatives for East
York.
RECOMMENDATIONS ON BOUNDARY REDEFINITION:
1. Thai the revised boundaries of the Borough of East York
be: on the south, Danforth Avenue; on the west, the
existing boundary of Bayview Extension, Moore Valley
to Moore Avenue and Bayview Avenue; on the north, the
southern property line of Sunnybrook Hospital, east to
the Don River West Branch to the northern boundary of
Sunnybrook Park, east to the CN Rail Line L.easide
Branch, south-east to the CP Cross Town Rail Line,
north-east to the Don River East Branch, south to
Eglinton Avenue, east to the Hydro Corridor and north-
east to Warden Avenue; on the east, Warden Avenue.
(More particularly described in Appendix A, and as
shown on the map attached as Appendix B.)
2. That the Golden Task Force consider similar boundary
changes within the GTA, to both area and regional
municipal borders, to promote wholeness of communities,
divisions along natural and urban barriers, acceptable
commercial/industrial to residential assessment ratios
and regularized service areas.
Reform in the GTA
11 . The East York Proposal
2.2 Region-Wide
Government
3. That the Golden Task Force consider the benefits of
smaller-sized municipalities as it develops options for the
restructuring of government across the GTA.
The two-tier structure of municipal government allows for a
proper assignment of responsibility for delivery of municipal
services between the local area municipality and a region-wide
authority. Although the area municipality should be the pri-
mary governing body and provider of services, there are is-
sues of municipal concern that can not be contained within
the boundaries of any single area municipality. Services such
as public transit, policing, water purification and regional road
systems are best provided on a region-wide basis to ensure
proper co-ordination, standardization and economies of scale,
and are best funded from a larger pool of municipal taxation.
Some form and breadth of region-wide authority should be
the single authority for these services.
There are other functions, such as economic development and
fire services, which do not require delivery under the direc-
tion of a region-wide authority but do require co-ordination
among the area municipalities in the region to achieve syner-
gies and mutual benefits. This co-ordination is occurring and
is realized through formal associations of the affected mu-
nicipalities such as the existing Metro Fire Chiefs Committee
and the GTA Economic Development Officers Committee.
We do not believe that a critical need exists to undertake ma-
jor restructuring of regional municipalities in the Greater
Toronto Area, although we acknowledge that the provincial
government and other municipalities in the GTA advocate
otherwise. We suggest that the effectiveness of regional gov-
ernment can be improved by revising the current boundary
definition of Metropolitan Toronto and other regions within
the GTA to ensure wholeness of communities and sensible
service areas. As well, the method and cost of representation
at the regional level could be reviewed to promote better ac-
countability and efficiencies.
The major need for reform at the regional level is the revision
of the current division of responsibilities between the regional
and area municipalities so as to improve service to the public,
eliminate duplication and strengthen accountability (for ex-
ample, the consolidation of responsibility for parking policy
and parking control).
Reform in the GTA 12 . The East York Proposal
The following recommendations represent East Yorks posi-
tion on matters of regional government under consideration
by the Golden Task Force.
RECOMMENDATIONS ON REGION-WIDE GOVERNMENT:
1. That the current division of responsibilities between the
area and regional level of governments be reviewed and
amended to improve service to the public, eliminate
duplication and strengthen accountability.
2, That, if the provincial government determines to elimi-
nate the Metro Toronto level of government, it be replaced
with an over-arching authority accountable for certain
cross-municipal needs.
3. That, if the provincial government determines to elimi-
nate the Metro Toronto level of government and replace it
with an over-arching authority, the elected representation
be by members of local area Councils.
2.3 Sp eci al Pu rp ose The Borough of East York does not have as many special pur-
Bodies pose bodies to administer special functions as do other mun-
icipalities in the GTA. Those that do exist seem to achieve
the various benefits intended for special purpose bodies in-
cluding operational flexibility direct and focused participa-
tion in decision-making, and independence from broader po-
litical influence. The agencies have varying measures of ac-
countability - the Hydro Commission is directly elected; the
Library Board is appointed by Council; and the Public Health
Board has both municipal and provincial appointees.
Nevertheless, proposals and opinions have been expressed
by other municipalities which endorse the reduction of spe-
cial purpose bodies. If the provincial government decides on
a general policy of severely reducing the numbers of special
purpose bodies, then East York recommends that the relative
functions be assigned directly to the area municipality. The
services provided by the library board, health unit and hydro
commission should be subject to local concerns and choice. If
there is an intent to achieve cost savings by eliminating the
independent agencies, then there is a greater potential to real-
ize efficiencies through the area municipality with associated
municipal responsibilities.
Reform in the GTA 13 . The East York Proposal
R E C O M M E N D A T I O N O N S P Ec I AL P U R P O S E Bo d i e s :
1. That, if the provincial government determines to elimi-
nate any special purpose bodies within East York, the
Borough Council assume direct responsibility for the
functions and services delivered.
Reform i n the GTA
14 . The East York Proposal
PART 3: CONCLUSIONS
T
he character of municipal government in East York is de-
fined by the size of the Borough and the spirit of its citi-
zens. We believe the special value of this smaller urban mu-
nicipality is worth preserving, if not emulating. Modest re-
finements to our boundaries are proposed to solidify the com-
munities and the supporting assessment base. Although we
identify specific border changes, we welcome discussion on
viable alternatives.
The East York proposal is specific to our circumstances. How-
ever, we suggest that the principles and values represented
have potential for general application in the Greater Toronto
Area to promote accessible, responsive and cost-effective
municipal government.
Virginia M. West
Chief Administrative Officer
Borough of East York
August 25, 1995
Reform in the GTA 15 . The East York Proposal
APPENDIX A: PROPOSED
EAST YORK BOUNDARIES
Northern Boundary
Southern Boundary
Eastern Boundary
Western Boundary
B As far north as the valley defining Sunnybrook
Hospitals southern property line at Bayview Avenue
running east to the Don River West Branch, then north,
to the northern boundary of Sunnybrook Park, then
east along the parks northern border to the CN Rail
Line Leaside Branch, then south-south-east to the CP
CrossTown Rail Line, then north-east along this rail
line to the Don River East Branch, then south follow-
ing the west side of this river to the south side of
Eglinton Avenue East, then east along the centre line
of Eglinton Avenue to the southerly limit of the
Ontario Hydro Public Utility Corridor and then north-
easterly along the southern side of this utility corri-
dor to Warden Avenue.
Viaduct and Warden Avenue.
B Centre line of Warden Avenue from the southerly limit
of the Ontario Hydro Public Utility Corridor to
Danforth Avenue.
B Centre line of Bayview Avenue between Sunnybrook
Hospitals southern property line and Moore Avenue,
then west on Moore Avenue to the Moore Valley just
before Hudson Avenue, then south-easterly follow-
ing the east side of the Moore Valley to the Bayview
Extension.
Reform in the GTA
16 . The East York Proposal
APPENDIX C: RATIONALE
FOR PROPOSED
BOUNDARY CHANGES
Northern Boundary
E
ast Yorks location within Metropolitan Toronto offers
unique geographic, transportation, and cultural advan-
tages. The centre of East York lies at the confluence of three
river systems (West Don River Branch, East Don River Branch,
and Taylor Creek). East Yorks communities straddle these
natural dominant topographic features. East York also pos-
sesses certain unique economic and transportation benefits
within Metropolitan Toronto. The municipality is bisected by
the Don Valley Parkway and is also located at the point where
CP and CNS railway systems converge to cross the Don Val-
ley. East York is the staging area to cross the Don and Taylor
Creek Valleys. As a result, East York is dotted with and sur-
rounded by bridges (Leaside Bridge, Bloor Viaduct, Wood-
bine Bridge, Governors Bridge to name a few). To a great
extent, EastYorks linkage to the valley lands unites the people
of East York, whether they are from Leaside, Bennington
Heights, Governors Bridge, Thorncliffe Park or Old EastYork.
The proposed boundary changes reflect East Yorks natural
linkages to the valley lands to the north and to the east.
East York also has a strong cultural linkage to Danforth Av-
enue. The present geographic configuration of the Boroughs
southern boundary, which lies mainly north of Danforth Av-
enue (except at the Shoppers World area near Victoria Park
Avenue), is both confusing to residents and is difficult to ser-
vice. It is apparent that Danforth Avenue is the most logical
boundary between the City of Toronto and the Borough of
East York.
In general, the proposed boundary changes take in more pla-
teau areas which abut the Don and Taylor Creek Valleys. The
proposed boundary changes will serve to unite communities
physically to establish a healthy business/ residential ratio, to
create an efficient service area which suits the topography,
and to maintain East York as a relatively small-sized popula-
tion base of 179,000 within the Metropolitan Toronto context.
East Yorks current northern boundary which lies along
Glenvale Boulevard, Overlea Boulevard, Sunrise/ Northline
Road, and Holland Avenue, does not make efficient servicing
sense. The proposed new northern boundary will provide bet-
ter and more efficient servicing for the institutions on the north
side of Glenvale Boulevard which are already serviced (wa-
Reform in the GTA 17 . The East York Proposal
Southern Boundary
Eastern Boundary
Western Boundary
ter, sewage and hydro-electricity) by the Borough of East York.
It is also more efficient to service the plateau of land (com-
prising Sunnybrook Park, the commercial portion of Leslie
Street, Wynford Heights, Don Mills-Eglinton area, and
Flemingdon Park) located between the West and East Don
River Branches, as far north as the CN Leaside Branch and
CP Cross Town railway corridors from the south (Borough of
East York). These areas are currently isolated from the City of
North York as a result of these natural and man-made barri-
ers.
Thus, the natural northernboundary of East York encompasses
the parks, rail lines, hydro corridors and, in one small loca-
tion, Eglinton Avenue East. Eglinton Avenue bridges the area
between the rail lines and the hydro corridor. From that junc-
ture the hydro corridor provides a clear man-made demarca-
tion of area over to Warden Avenue and ensures that the com-
munities of Victoria Village and Wexford remain intact within
their existing municipalities.
East York has a strong cultural tie to the Danforth. The cur-
rent southern boundary separating East York and the City of
Toronto is awkward and inefficient for public servicing. The
boundary line literally runs between houses, often bisecting
individual houses and backyards which result in straddling
two municipalities. The line along Danforth Avenue would
end this confusion. It would also transfer to the City of Toronto
the large Shoppers World Danforth facility which is pres-
ently part of East York.
The Robarts Commission recommended Warden Avenue as
East Yorks eastern boundary and the rationale is apparent.
Warden Avenue makes a natural eastern border due to Taylor
Creek Park. The Clairlea Community which would be added
to the Borough, shares the values of the Taylor Creek Valley
lands with the residents of East York. The road configuration
facilitates East York in servicing this new area.
There are minor changes proposed to extend the western
boundary south on the Bayview Extension to meet with the
Bloor Viaduct and north on Bayview Avenue to intersect the
southern boundary of Sunnybrook Hospital.
Reform i n the GTA 18 . The East York Proposal
Facsimile Cover Sheet
To:
company:
Phone:
Fax:
From:
Company:
Phone:
Fax:
Date:
Pages lncluding t his
cover page:
Comments:
Dear Ms. Golden ,
Arm Golden
GTA Task force
476-327-1515
476-327-1516
Krystyne Engel
22 Blueberry Lane,
905-833-0964
King City, Ont. L7B-IC5
RECOMMENDATIONS TO THE GTA TASK FORCE
REGARDING
TRANSPORTATION AND THE ENVIRONMENT
PRESENTED BY
EPT
(ENVIRONMENTALISTS PLAN TRANSPORTATION)
August 25,1995
Joan Doiron, Co-Chair
Prepared by Udo Stillich
I NTRODUCTI ON
Residents of the Greater Toronto Area are very concerned about the quality of the natural
environment which supports them. They are not so overwhelmed with the issues of public
finance or overlapping levels of government that they have lost a sense of how important it is to
have clean air, land and water, not only for themselves but for their children and grandchildren.
EPT believes that proposed changes to the governing structure of the GTA and its
financing mechanisms must include full consideration of impacts on the natural
environment.
The GTA Task Forces approach to planning for the future must be truly strategic, which means
dealing with issues on a long term basis, taking into account foreseeable external trends and
pressures on the region, and developing strategies which support the three cornerstones of the
ecosystem approach - community, economy and environment. This means developing strategies
and structures which do not resolve one set of problems at the expense of creating others.
The transportation system and land use practices of the GTA are critical elements of a healthy and
sustainable environment. Unless current trends are changed, rapid environmental damage will
continue.
In this regard, the following sequence of discussion presents the concerns and recommendations
of EPT to the Greater Toronto Area Task Force:
1. AREAS OF CONCERN Page 3
2. PROSPECTS FOR THE GTA Page 11
3. VISIONS AND STRATEGIES Page12
4. RECOMMENDATIONS Page 13
2
1. AREAS OF CONCERN
Governing systems for the Greater Toronto Area must address a range of issues affecting the
daily lives of its residents. EPT feels that a number of important issues do not appear to have
been clearly identified in the terms of reference of the task force. Nevertheless, a governing
structure which fails to adequately address them risks contributing to a continuing decline in the
quality of lifee in the GTA.
The major concerns related to transportation and the environment areas follows:
1.1 The GTA transportation is severely imbalance.
Of over 10,000,000 daily trips in the GTA about 75% are by auto;
only 14/0 are by public transit, and 11/0 are by walking and cycling.
The GTA road system is continually being expanded to handle more
cars. In suburban areas, there is often no reasonable public transit
alternative to driving to most destinations, and the use of transit is
largely limited to the economically disadvantaged.
Planning for automobile use has been well funded and extremely
effective in ensuring the maximum comfort and convenience of the
driving public. Public transit planning has been piece-meal, poorly
thought out, under funded and inadequate. The value of walking
and cycling have been ignored to the point of making these modes
of travel downright unpleasant in much of the GTA.
The result has been a set of hidden economic costs to residents of the
GTA including a loss of $3 billion annually for auto and fuel imports, high
personal costs to often struggling households ($7,000 per year for a small
new car, per CM), and the cost of policing, accidents, and the inefficient
use of land.
1.2 The implications of the GTAs transportation system
on the natural environment are not recognized or taken
seriously by GTA decision-makers.
The warnings of the scientific community about the risks of global
climate change and the impacts of major ecosystem collapse beyond
3
the year 2000 have been ignored, or have been given lip service
only. Global warming has been identified as likely the most serious
threat to mankind -it will affect food production, the survival of
forests and other plant ecosystems, marine environments, and
influence the spread of diseases. (Refer to Attachment 1)
Regional and municipal governments environmental planning is
largely limited to policies on the management of open space,
watersheds, noise from industrial and aircraft sources, and waste
management. The impact of the automobile on the environment is
largely ignored.
The use of the automobile is the single most important contributor
to the risks of rapid atmospheric change. It is the single most
important emitter of toxic gases in urban areas. The destruction of
natural areas and agricultural lands bordering the GTA is the result
of the extensive use of the automobile brought about by poor land
use policies.
1.3 The magnitude of change in the transportation
required for the 21st century is generally not
recognized.
system
North American culture is proportionately the most damaging to
the earths natural life support systems. Per capita emissions of
greenhouse gases, a key determinant of environmental quality, are
about five times that of the rest of the world. The generally-
accepted target of a global 20/0 reduction in C0
2
emissions will not
be met by the developing world -as its governments strive to
improve standards of living for their people, emissions in Asian,
African and South American countries will increase. If the 20%
reduction target for CO* is to be met, emissions from North
American sources will have to decline dramatically. Based on
estimates of population growth and per capita increases in energy
use outside of North America, Canada and the USA will have to
reduce emissions by 8(9% by 2010 AD, and more thereafter (See
Attachment 2).
Meeting this level of reduction in order to stabilize global life
support system means a complete reversal in transportation
modal shares in the GTA within about twenty years. It means
creating transportation alternatives to the use of the personal car for
commuting, inter-municipal travel, and for most other local trips in
4
1.4
the GTA where the potentials for public transportation and
non-motorized travel are greatest. It means a virtual halt to
urban sprawl and the road-building which supports it. EPT
feels strongly that the end result would be a very livable, convenient
and affordable GTA environment.
There will be another energy crisis beyond the year 2000.
Global population growth and per capita consumption of energy
will increase dramatically over the next few decades, particularly in
Asia. Current North American crude oil reserves will be exhausted
soon after the year 2000, and GTA residents will become
dependent on more expensive imported oil, and on dirtier oils such
as those from the Alberta tar sands.
Subsequent transitions to natural gas and then possibly to solar
hydrogen will be costly, as Ontario will remain almost totally
dependent on imports of those fuels. People will be looking for
public transit alternatives as the cost of conversions and fuels rise.
1.5 Pre-occupation with the public costs of infrastructure
planning prevent timely solutions to problems caused
by transportation.
It has largely been assumed that the GTA taxpayer will not support
infrastructure initiatives which involve tax increases. If this attitude
holds, the quality of life in the GTA will continue to decline.
The critical issue of the public versus private costs has been
overlooked by public decision-makers. A fill cost accounting of
public transit systems and private automobile-based transportation
systems reveals that public transit is far less expensive to the
taxpayer as a whole. The GTA Urban Structure Concepts Study, in
its 1990 report on transportation, projected the private and public
operating costs of the road system and the public transit system for
the year 2021. Based on that information, EPT has estimated that a
public transit system carrying the same number of daily riders as the
private automobile would cost about 60% less to operate than an
auto-based system (See Attachment 3).
1.5
In this light, public decision-making which considers only the public
costs of transit infrastructure and operating systems is flawed, and
needs to be revised.
Agricultural lands and natural areas at the fringes of
the GTA are rapidly being lost to suburbanization.
The GTA Urban Concepts Study of 1990 reported that, by the year
2021 AD, an additional 350 s qu a re m i l es of non-urban land could
be consumed for suburban development, compared to 1986 (see
Attachment 8). This is a dramatic decline, particularly given that
much of this area is prime agricultural land. By 2031 AD, the l0SS
could reach 450 square miles.
For all intents and purposes, the compact, pedestrian-oriented
urban forms which existed earlier in the 20th century have been
legislated out of existence by suburban municipalities, replaced by
development rules which promote an extreme consumption of land
and energy. Official plans in the regions surrounding Metro
Toronto have taken to heart the American cultural icons of a
detached house on a piece of land in the country for the average
citizen, and which is conveniently accessible by personal car. Public
transportation exists as an afterthought for the few unfortunate
individuals who cannot drive.
Daily destinations which are located in suburban GTA
municipalities, such as shops and workplaces, are not integrated
into local communities in ways which would minimize the need to
travel. Almost no destination is within walking distance from
homes. Instead of being close to streets and intersections,
commercial (and residential) destinations are centred in the interior
of relatively large properties, making access to and from public
transit difficult. At the same time, a vast road ifrastructure in
support of auto travel has been created in order to access those
distance locations. Cycling for other than recreational purposes is
generally considered a nuisance.
Subdivisions are ill-designed to permit public efficient public
transportation, because of poor street layout, lack of pedestrian
access to main roads, and the lack of higher density commercial and
residential areas.
6
Single detached housing dominates, generating energy waste from
space heating and consuming vast tracts of natural areas and
agricultural land.
1.6 The financing system for GTA-administered services
does not support sustainable development.
The property tax system currently in place in the GTA is a
narrowly-defined value system which excludes any consideration of
environmental and social values. There is no apparent evidence that
it is based on any rational analysis of the needs of the GTA other
than perhaps a need for administrative expediency. By all accounts,
it is administered inequitably from municipality to municipality.
Property tax rates are one of the key drivers of economic
development. Mainly because Metro is burdened with higher
welfare and education costs, property taxes in municipalities on the
fringes of the GTA tend to be considerably lower, and attract
development away from Metro into municipalities whose official
plans encourage urban sprawl and auto-oriented transportation
systems.
Tax systems should support an ecosystem approach to
development, which means fostering economy, environment and
community in an integrated manner.
Municipalities do not have authority to levy sales taxes on energy
use, which limits their ability to encourage modal shifts to transit
and to reduce the loss of dollars from the economy caused by
importation of fuels of all types.
1.7 There is no strategic plan for the GTA to deal effectively
with the issues of transportation, environment and economy.
The ecosystem approach to planning recognizes that seemingly
disparate issues are interrelated - decisions in one area affect others.
This is particularly true of the linkages between transportation,
environment and economy. The ecosystem approach can also be
applied to intergovernment relationships, which means that different
levels of government should be working towards the same
integrated goals, and not be in conflict with them in day-to-day
decision making.
7
Issues related to environment, economy, and transportation are
clearly larger than the confines of local municipalities. In fact, some
of the determinants of economic and environmental well- being
involve national and international policies. However, there is
considerable latitude for jurisdictions such as the GTA to deal with
the effects of those issues; in fact, success in containing global
environmental damage cannot be achieved unless all levels of
government take aggressive action to reduce the damage caused by
the activities of its citizens and leaders..
Planning in the GTA is currently piece-meal and without reference
to the totality of the GTA and with little consideration of larger
provincial, national and global issues which will affect GTA
residents, and their children, over the long term.
Plans often include contradictions: stated goals of supporting a
healthy natural environment are undermined in other parts of the
same plans, or by other plans. For example, municipal official
development plans in suburban municipalities include statements in
support of a healthy natural environment, but they also include
major expansions of the road system and greenfield development,
even though that path of development is extremely detrimental to
the environment.
Infilling / reurbanization is largely an afterthought, even though it
has the potential to comfortably and pleasantly accommodate most
of the population growth anticipated for the GTA in the next two
decades (see Attachment 4).
The links between economy and environment are not well
understood. For example, municipal plans assume economic
development requires expanded road systems, when in fact the use
of cars is a net drain on the GTA economy: 100/0 of auto fuels and
80% of all cars used in the GTA are imported, at a cost of $3
billion per annum. Reducing dependence on auto travel would
invigorate local sectors of the economy currently constrained by
the need of household to purchase and maintain cars.
GTA plans should clearly and definitively lay out annual and
multi-year targets for such things as modal splits for transportation
population density increases, and energy consumption/import
reduction targets.
8
1.8 Transportation policies and land use practices are
systematically destroying a sense of local place and
community.
Particularly in the suburban areas of the greater Toronto area, the
auto-based urban environment conflicts with concepts of healthy
communities. Traffic volume, vehicle speeds, and excessive road
widths work to divide communities: Adults and children are
discouraged from meeting neighbors across the street, and noise
levels and vehicle exhausts assault the senses. 40,000 traffic
accidents in the GTA traumatize individuals and families yearly; the
incidence of asthma in children is epidemic, caused in large part by
vehicle emissions.
In the suburbs of the GTA the typical street is not a meeting or
shopping place. It is built as a mere conduit to anonymous shopping
malls all filled with the same chain stores. The need to pay for two
or three cars in most family households has contributed to the need
for both parents to be gainfully employed, negatively affecting the
effectiveness of the family in providing supports to children.
Distant schools, arenas and fiends have reduced many parents to
the role of chauffer.
Today governments plan subdivisions instead of communities. In
places like Mississauga, community is nothing more than a private
backyard, a choice of shopping malls to drive to, and the distant
GO station to take you into Toronto. The rich variety, sense of
place and closeness one found in many neighborhoods in the City
of Toronto, particularly where residential streets and shopping
streets are knitted together, are virtually absent in places like
Mississauga.
The concept of community has suffered because government has
planned suburban areas around traffic flows and space requirements
for automobiles. Proximity planning, planning for walkability,
cycling and public transit and not by cars, has been beyond the
scope of thinking in those very areas where the future growth of the
GTA will be greatest.
9
2. PROSPECTS
Current and foreseeable trends, if not altered significantly, foreshadow
a decline in the quality of life for GTA residents:
2.1
2.2
2.3
2.4
2.5
Urban development will not appreciably change its wasteful
focus: relatively low density greenfield development will take precedence over
infill, and over 250 square miles of agricultural lands and natural areas will become
suburbanized by 2021 AD, and almost 350 by 2031 AD. Excessive and extremely
valuable urban space will continue to be wasted to accommodate the needs of the
automobile.
The health and sense of community will continue to decline in
the suburbs as planners continue to assume that getting there is more important
than being there. Compared to locaI variety and activity in the older communities
in the City of Toronto, life in the suburbs will be lifeless. Auto-related injuries,
respiratory illnesses and isolation will be more widespread.
Thousands of GTA households will continue to struggle
economically as a result of rapid technological change, global competition,
and the costs of car ownership.
Transit integration strategies will not produce significant
modal shifts to public transit, without being accompanied by major capital
finding increases.
Increased GO Transit services will not have a significant
impact in slowing down the growth in the number of automobile trips in the
GTA. GO ridership may increase to take 3% of all daily trips (from 1% today),
based on suggested expansions currently contemplated.
10
2.6 Environmental damage will increase as road expansion continues, on
the assumption by planners that increased auto traffic is unavoidable. As a result,
technological improvements to auto efficiency will be offset by growth in car
numbers, and environmental goals will become harder to reach.
2.7 Constraints on transit funding will create demand for more
Cars, as 2,000,000 more people are added to the GTAs population by the year
2021. Road building will not keep up with car sales, and road congestion will
worsen. Accidents will increase, as will driver frustration. The benefits of efficient
and available public transit on the local economy will be unrealized.
2.8 The economy will suffer increased annual losses as car use
increases and energy prices increase beyond the year 2000. The current $3 billion
annual loss, equivalent to a job loss of 50,000 a year, will increase.
3. VISIONS AND STRATEGIES
Although numerous strategic plans have been created by individual GTA governments, there is
currently no common vision of the kind of community the GTA should be, or a set of
societal values which would guide visions and strategies for the future.
Generally speaking, existing plans are projections of current trends, such as demand for
transportation based on population forecasts, plus statements supporting efficient administrative
systems. Regional and local municipal plans are not able to adequately plan to change trends given
their narrow jurisdiction and the much broader scope of the issues they face.
GTA governments can no longer afford to implement policies and spend public finds in ways
which result in negative side effects, or in wasteful competition with adjacent municipalities, or in
ways which do not support an integrated approach to a healthy sustainable future.
An overall GTA strategic plan is required which clearIy sets out a broad long term vision.
The plan should require that all ongoing day-to-day decision-making be based on the
ecosystem approach. This means that decisions must conform to all primary strategies and
visions collectively, and not adversely affect any of them. If day-to-day proposals do not meet this
criteria, then alternative courses of action should be sought.
11
In its presentation to the GTA Transportation Plan Working group in September 1994, EPT
suggested that a clear planning hierarchy be established to accomplish this. Attachments 5 and 6
illustrate.
4. RECOMMENDATIONS
General recommendations:
4.1 Do not compromise the long term health and
well-being of the people of the GTA by the political
fashion and fiscal constraints of 1995.
Given the long term planning horizon of the task force (thirty or more
years), the well-being of the people of the GTA should not be defined or
limited by the current political climate or the existing public financial
situation. Structures and systems recommended by the GTA Task Force
should reflect long term needs, and should recognize that political and
financial structures will often change over the next few decades.
4.2 Recognize that there is an environmental crisis which
will significantly affect Toronto area residents in the
future, and that substantial actions need to be taken by
the GTA in order to help prevent the collapse of
natural life support systems.
The scientific community has clearly and often voiced concern about the
rapid deterioration in natural systems as a result of human activity. Given
the rapid growth in human population and industrialization, many scientists
have suggested that if dramatic action to reverse the human assault on the
environment is not taken by the end of the 20th century, it maybe too late
to stop the collapse of major ecological systems.
12
4.3 Recognize that planning for the long term health of the
Greater Toronto Area means establishing structures
and policies which improve the environmental,
economic and community health of the GTA as an
integral whole.
It is not enough to reduce the number of political and administrative
structures in the GTA or to work towards reducing inequities in the tax
system which serves the GTA. The tax system and the governing system
must promote and reflect broader long term goals.
EPT feels that the following objectives stated in the task forces terms of
reference are a critical guide to the development of recommendations: The
Task Force must define a system and a style of governance, appropriate to
the Toronto of the next century, that promotes economic health and
competitiveness, community well-being and a high quality urban
environment.
The ecosystem approach to planning for the future is essential if a high
quality of life for GTA residents is to be assured. It is no longer appropriate
to make recommendations without regard to possible negative side effects.
For example, recommendations to improve the GTA economy should not
beat the expense of the environment or non-economic community values.
As shown by example in Attachments 5 and 6, progress in improving the
quality of life for GTA residents requires that decision-making at all levels
of government support a broad set of agreed-to common values and
visions. Strategies and short term actions, as part of the integrated whole,
should not conflict with any of the visions and values.
4.4 Recognize that the people of the Toronto Area are
concerned about their quality of life and that of their
descendants, and are willing to invest to ensure a clean,
sustainable natural environment.
Although the public has voiced its concern over overall public spending,
EPT feels that the importance of environmental issues is recognized by the
public. People do not want to see a decline in environmental quality.
13
EPT also recommends that the Greater Toronto Area Task Force, in its report to the
Premier of Ontario, include the following recommendations in the areas of transportation,
finance, and governance:
TRANSPORTATION SYSTEMS -
4.5 Recognize the need to move rapidly towards an
environmentally sustainable transportation system.
Sustainability means moving away from an auto-based system to one which
is almost wholly oriented towards public transportation and non-motorized
forms of travel, within about twenty-five years. PI
arming a gradual decrease
in auto-dependency, particularly in urban areas, will reduce the impacts of
future environmental shocks and energy crises.
Major expansions of public transit and non-motorized travel modes are
both economically affordable and environmentally essential. Together with
better urban land use, these forms of transportation are far less
consumptive of energy, produce far fewer emissions of toxins and
greenhouse gases per trip, and take up far less valuable urban space, than
auto-based travel.
As shown in Attachment 2, avoiding the risks associated with rapid climate
change means reducing North American emissions of greenhouse gases by
about 80A within a very short time frame. This magnitude of change
requires that specific annual and multi-year modal shift targets should
be set, reaching at least a 60% modal share for public transit by 2020.
Unless that target is reached, the GTAs share of global greenhouse gas
emission reductions from transportation sources will not be met.
Emission reductions also apply to trucks and other commercial vehicles.
Systems which minimize vehicle trips through better coordination, and the
increased use of rail for intermunicipal freight, need to be developed.
4.6 Recognize that transforming the GTAs transportation
system is economically sound and is essential to an
ecosystem approach to urban development.
The use of the automobile in the GTA costs its economy about $1 billion
annually for petroleum imports and about $2 billion annually for auto
imports. 80/0 of cars purchased by GTA residents are imported from
14
outside the province. According to the Canadian Automobile Association,
the average small new car (Cavalier or Tempo) costs about $7,000 per year
to own and operate. This level of expenditure is a serious financial burden
to many GTA households, particularly given that many suburban
households need to own two cars and are facing harsh economic realities.
In comparison to the cost of owning a car, a transit pass will soon cost
about $900 per year in Metro Toronto.
Money not spent by consumers on upkeep and operation of cars is not lost
to the economy but recirculated by consumers towards other sectors of the
economy.
Reductions in auto use over a 20 to 25 year period would result in
employment reductions in the auto industry in Ontario at a rate less than
the annual natural attrition rate from retirements.
FIANCIAL SYSTEMS -
4.7 Shift the basis of calculating property taxes away from
market value and towards a land utilization model
which recognizes the need to control urban sprawl and
which supports reurbanization/ infill development.
Phase this system in over a relatively short multi-year
period.
Until now, the municipal tax system has not been used strategically to
shape the behaviour of the housing and construction marketplace, or the
urban form. Market value assessment (MVA) does nothing to assist the
residents of the GTA to improve the state of the natural environment. The
inequitable application of the current assessment system has fostered urban
sprawl and increased dependency on auto-based transportation.
The use of MVA as a revenue-generation mechanism is arbitrary. Any
number of other tax systems could be used, such as income taxes, per
capita taxes, wealth taxes, etc. At a time when the Toronto area is faced
with multiple problems of considerable magnitude, it is appropriate to use
the tax system as a strategic tool to foster development in ways which
support a healthier environment, less wasteful land use, less energy use,
and improve the viability of an expanded public transit system.
A land utilization property tax system would accomplish all of those things.
By basing taxes on lot size, building floor space, and the ratio of floor
15
4.8
space to lot size, the property tax system can be a finely tuned incentive to
ensure that greenfield development is relatively high density. It can ensure
that multi-unit buildings which reflect changing demographics become
more available relative to new detached and semi-detached housing. It can
foster higher density infill development in all GTA municipalities, and can
discourage underutilization of industrial and commercial sites. Additional
provisions should be made to preserve agricultural land and natural areas,
over and above the disincentives which a reformed property tax system
may create.
A land utilization system is easier to manage than MVA because
adjustments to market values are avoided, as are tax appeals by residents
who perceive inequities.
A land utilization system is similar to the unit-based proposal of North
York and the City of Toronto of 1989.
Establish a GTA-wide energy tax at the retail level,
covering space heating, motor fuels and electricity
utilization. The energy tax should phased in to levels
high enough to result in a dramatic reductions of
energy use and multiple increases in the use of public
transit.
One of the most powerful ways to influence consumer behaviour is through
price mechanisms. In addition to raising taxes for municipal services, an
energy tax will serve additional purposes well suited to meet the pressures
to be faced by GTA residents in the 21st century.
Behaviorally, an energy tax would create demand for better insulated
housing, streamline travel habits, reduce wasteful household/dustrial
utilization, spur the use of (and demand for better) public transportation
systems, increase walking and cycling as transportation modes, generate
more efficient freight movement, and improve the market for efficient
appliances and machinery. Over time, a significant energy tax may create a
new export industry in Ontario related to energy-efficient practices and
products.
The proposed energy tax can be relatively easily collected by the province
(and Ontario Hydro) on behalf of the GTA.
16
A substantial energy tax would be a partially avoidable tax for those
individuals and enterprises which conserve energy use.
Offset the increase in revenues from energy taxes by
reducing property tax rates.
It is important that en energy tax be seen publicly not as a tax grab,
partially avoidable tax and one which is offset by reductions in the
but as a
traditional property tax system. For government: the combination of energy
tax and property tax should be revenue neutral. However, in the face of
provincial cuts to municipal grants, municipalities may consider using the
energy tax as a way of replacing some lost provincial transfer payments.
4.9 Phase out capital funding for roads in the GTA and
re-direct those funds towards building new public
transit infrastructure and improving facilities for
cycling and walking.
If the critical goal of environmental sustainability is to be met, the
magnitude of modal shift away from the use of automobiles in the GTA is
such that an absolute decrease in the number of cars overtime is necessary,
even in the face of anticipated population growth. The adoption of an
energy tax and the strengthening of policies and directions away from
relatively low density suburban development means that road expansions
should become very exceptional occurrences. As a result, the strategic
opportunity exists to redirect capital finds towards long term public transit
expansion programs. The use of finding levers by the province would
assist municipalities in their efforts to affect targeted modal shifts.
4.10 Recognize that public decision-making for new public
transportation services should consider both private
and public costs of both infrastructure development
and operating costs. In this regard, government should
not assume an unwillingness for additional taxpayer
investment in infrastructure or operating costs.
17
The unffordable label applied to some public transit infrastructure
projects fails to take into account the private costs of scenarios based on
the status quo.
As indicated in Attachment 3, the aggregate of private costs of expanding
the auto-based transportation system are substantially higher than for
public transportation. Over the short term, the monetary benefit of new
public transit facilities is largely reaped by those who would be able to use
the system, but as public transit takes an increasing share of trips in the
GTA, the benefit becomes more and more universal. The issue is one of
public recognition that short term costs are a worthwhile investment which
will result in long term benefits. Even over the short term, however, the per
capita additional public cost is relatively small, and a return on investment
exists in terms of cleaner air, a stronger economy, and reduced road
congestion.
In EPTs 1994 report The Livable Toronto Area, the capital cost of
completely reversing the current modal shares of auto and transit modes
was estimated. After expenditure offsets and savings, the net additional
cost to the GTA taxpayer was estimated at less than $150 per year, over a
25 year period. This compares to private costs of $7,000 per year for a
small new car, perhaps $4,000 annually for an older car, and substantial
non-monetary costs of pollution, lost time and frustrations associated with
driving.
GOVERNANCE-
4.11 Establish a single GTA-wide level of government,
replacing the current regional governments of York,
Peel, Halton, Durham and Metro Toronto.
Functions currently administered by regional
governments should be reallocated to local
municipalities, the GTA government, or to the
province.
The current public debate over transportation planning, and other concerns
facing the GTA, indicates that it is most effective and administratively
simpler for a single GTA-wide government/administration to handle certain
common cross-boundary issues.
18
Because it is too cumbersome merely to add another level of government
to deal with GTA-wide issues, EPT suggests that the five existing regional
governments comprising the GTA be abolished. Downloading some of the
existing regional functions to the local municipal level would be facilitated
by amalgamating some smaller municipalities, to create workable
economies of scale. Most GTA public services should be delivered by local
municipalities.
4.12 Recommend that the provincial level of government
.
Amend legislation to protect non-urbanized land
in GTA municipalities from relatively low-density
development, including setting a minimum
overall rate of population density for greenfield
development of 20 persons per gross acre (i.e.
including public and non-residential space).
EPT agrees with the predominant view of progressive urban
planners and architects that the land use policies followed by most
North American municipalities - including those in York, Peel,
Halton and Durham - are grossly inefficient and are poorly suited to
meet the needs of the future.
EPT feels that if strong policies to stop urban sprawl do not exist,
there will be no progress towards resolving environmental issues, or
in affecting the magnitude of change in the transportation system
which would benefit all residents of the GTA. A density of 20
persons per gross acre would support the demographic and
household mix of the future, as well as a more balanced housing
stock. It would also foster more compact and efficient use of land
for commercial purposes, and support/reinforce incentives created
by an energy tax and land utilization tax..
Setting a minimum of 20 persons per gross acre for greenfield
development is an overall population density about halfway
between the current density of the City of Toronto and the planned
density of the City of Mississauga. It is a comfortable density
which, with a small measure of architectural creativity, can be very
pleasant.
19
Make transit-supportive land use guidelines
enforceable public policy.
Transit-supportive guidelines published by the Ministry of
Municipal Affairs have existed for some years. They support not
only transit, but a more efficient and convenient urban landscape.
Establish aggressive annual and multi-year
targets for increasing the use of public transit,
walking and cycling, and decreasing the use of
automobiles, and linking the provision of annual
provincial grants to achievement of those targets.
As indicated earlier, the magnitude of change needed is substantial,
if critical goals are to be met. EPT has estimated in its report The
Livable Toronto Area that reversing the auto/transit modal shares
means an average annual increase in transit ridership of 5.7% and a
corresponding decrease of 3.5% in auto trips. The actual setting of
annual targets would need to reflect a comprehensive transit
expansion plan for the GTA.
Allocate all annual funding to GTA
municipalities to a GTA-wide authority, on a
block funding basis.
It is assumed by EPT that with the establishment of supports to
foster movement to sustainable transportation land use and other
environmental policies, the province would prefer not to further
identify specific local spending priorities.
4.13 Recommend that the GTA-wide government
Be comprised of a chairperson and members
directly elected by the public in municipal
elections
EPT feels that the responsibilities of a GTA-wide government
would be very complex and high profile, and too important to be
20
left to appointed officials. EPT does not feel that a membership
comprised of appointed local politicians would be able to divorce
itself from local views sufficiently to be able to work in the best
interests of the broader concerns of the GTA.
Establish and maintain the official strategic plan
and the official urban structural/development
plan for the GTA, to which local municipalities
must conform
Plan, maintain and operate the public
transportation system of the GTA
Care needs to be taken that an single transit authority is also
responsive to the requests from local/community sources are
recognized and respectfully addressed.
P1an, maintain and operate the GTAs
intermunicipal road transportation, including
arterial roads and limited-access highways
Administer the revenue function for the whole of
the GTA, including
Planning financing requirements for the
whole of the GTA,
Setting GTA property tax and energy tax
rates,
Allocating funds to local municipalities, on
a per capita block funding basis to be
phased in over five years, and augmented
by short term special needs funding to
specific municipalities
4.14 Recommend that local municipal government -
21
Approve subdivision plans and adjustments, in
adherence to the GTA urban development plan
and strategic plan
Prepare and present to the GTA authority
requests for budgetary requirements, and for
changes to the official plan
Manage the local road traffic system
(maintenance, signage/signaling, traffic calmong,
cleaning, and the planning and development of
new local roads)
Allocate GTA budget allocation towards
road/traffic issues (and other issues) as locally
determined.
22
We are not going to solve todays
problems with the kind of thinking that
got us into them.
- Albert Einstein
Todays problems are yesterday%
solutions.
23
Attachment 1
ENVIRONMENTAL PROSPECTS:
LIFE SUPPORT SYSTEMS AT RISK
Global climate change
Erratic weather patterns - droughts, heat waves,
Storms, floods
Die-off of forests and plant ecosystems on a large
scare - rapidity of change too stressful
Death of lake ecosystems
Risk of runaway warming - thawing of tundra
Collapse of global fisheries
Foodland disappearing as population increases
Potential loss of 20% of all plant species by 2030 AD
Damage to biota from ozone depletion
e.g. ocean plankton
Increasing toxicity in all species
Severe economic dislocation
Environmental refugees
Costs of repair and restoration
Rate of deterioration is rapid
Attachment 2
A SCENARIO FOR
ACHIEVING 20% GLOBAL REDUCTION IN C02 EMISSIONS
The calculations below indicate approximate reductions in carbon dioxide emissions required by 2010 by groups of
nations, if a 200A global reduction is to be achieved. It is assumed that population growth remains unchecked, and that
all groups achieve a much closer level of equity in per capita emissions by 2010 AD. N.B. population growth beyond
2010 will require further per capita reductions, including in Asia,
1988 Emissions Millions Targetted Emissions Cumulative
- - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Total Per Per Cap %
Carbon Per Global Global Emissions Capita change in,
Emissions Capita Populn Populn by 2010 2010 emissions
Mil Tons (tons) 1988 2010 Mil Tons (Tons) by 2010
- - - - - - - - - - - - - - - - - - - - - - - - - - - . - - - - - - - - - - - - - - - - - - - -
Communist Asia 774 0.66 1,173 1,482 1,174 0.79 20%
Other Asia 833 0.55 1,515 2,227 1,653 0.74 35%
Africa 534 0.86 621 1,170 1,006 0.86 o%
Middle East 187 1.14 164 293 217 0.74 - 35%
Latin America 910 2.09 435 647 541 0.84 - 60%
Western Europe 774 2.03 381 398 323 0.81 - 60%
Oceania 336 2.27 148 164 130 0.79 - 65%
Former Soviet Union &
Eastern Europe 1,428 3.55 402 457 389 0.85 - 76%
North America 1,379 5.07 272 311 2 9 3 0.94 - 8 1 %
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
GLOBAL TOTALS
[
1.40 5,111 0.80
Attachment 3
COMPARISON OF TOTAL ANNUAL OPERATING COSTS IF TRANSIT REPLACED ALL AUTO TRIPS:
(iNCLUDING USER COSTS)
TRAL
FORECASTED TRANSIT SHARE 2021 (24 HR EST) 19,5% 26.2% 21 .7%
ESTIMATED WALKING/CYCLING SHARE 12.0% 16.0% 14.0%
ESTIMATED AUTO SHARE 68.5% 57.8% 64.3%
TOTAL FORECASTED ANN TRANSIT OPERATING
COST $1,127 M $1,371 M $1,319 M
EST, OPERATING COST OF TRANSIT IF TRIPS
EXTRAPOLATED TO LEVEL OF AUTO SHARE $3,962 M $3,016 M $3,900 M
AUTO COST AT SAME LEVEL
PUBLIC ROAD MAINTENANCE COST $239 m $211 m $231 m
USER COSTS $10,147
$7,977m
$9,151 m
$10,386 m $8,188 m $9,382 m
TRANSIT COST AS A % OF AUTO COST 38.2% 36.8% 41.6%
TRANSIT COST AS A % OF USER ROAD COSTS
ONLY 39,0% 37.8% 42.6%
N.B. Reference documents: GTA Urban Structure Concepts Study, 1990; Transportation Tomorrow Survey, 1986.
Attachment 4
POPULATION AND DENSITY ALTERNATIVES
1991
APPROX.
URBANIZED
POPULATION SQ. Ml.
DURHAM 405,000 95.0
HALTON 316,000 82.0
METRO 2,256,200 236.9
PEEL 725,000 142.0
YORK 490,000 120.0
TOTAL 4,192,200 677.9
POPULATION
DENSITY
PER SQ. Ml.
4,263
3,854
9,444
5,106
4,083
6,184
2021 AD
CENTRAL
CONCEPT
APPROX.
URBANIZED
POPULATION SQ. Ml.
DURHAM 475,000 110.6
HALTON 378,000 96.4
METRO 3,800,000 239.0
PEEL 828,000 153.6
YORK 540,000 125.2
TOTAL 6,021,000 724.8
B Per 1990 GTA Urban St r u ct u r e Con ccpt s St u dv
POPULATION
DENSITY
PER SQ. Ml.
4,295
3,921
15,900
5,391
4,313
8,307
2021 AD
SUSTAINABILITY
CONCEPT
POPULATION
DURHAM 700,000
HALTON 610,000
METRO 3,000,000
PEEL 1,000,000
YORK 800,000
TOTAL 6,110,000
APPROX.
URBANIZED
SQ. Ml.
110.6
96.4
239.0
153.6
125.2
724.8
POPULATION
DENSITY
PER SQ. Ml.
6,329
6,328
12,552
.6,510
6.390
B Population based on modified Spread concept. urbanized sq. mi.
based on Central concept. Densities outside Metro are generally
8,430
file: DENSITY
Attachment 5
A PLANNING HIERARCHY
E
A l
Basic human needs, e.g.
Security, Health, Integrity
Desired final end result of activities;
the ultimata goal or final state
Timeless; societal level
Long Term in nature
Non-sector/department Spceific
Action statements
Long term or medium term
SpcifIc by sector/department
Action statemants
Short Term actions (One to two years)
STRATEGIC
PLANS
MISSION STATEMENTS:
OFFICIAL
PLANS
A mission statement is a simple generic statements which should be the same
throughout the organization. They a re
almost timeless in scope, and should not be specific sectoral strategy statements. A basic mission statement
would be
To implement the vision of the organization.
PRIMARY SECONDARY
VISION STRATEGIES STRATEGIES
(NON-SECTOR-SPECI FI C) (SECTOR-SPECI FI C)
PROMOTE FAVORABLE
PROVINCIAL TRADE o Minimize need for transportation-
BALANCE related imports
PROMOTE FULL o Provide appropriate access
EMPLOYMENT
ECONOMIC
between residential, recreational
and commercial destinations
PROSPERITY
AND STABILITY
REDUCE FINANCIAL o Reduce the cost of travel for
PRESSURES ON individual and households
ONTARIANS
PROMOTE NET INCREASES
IN EMPLOYMENT
o Promote use of cleaner
transportation fuels
REDUCE OVERALL o Reduce the need to travel
EMISSIONS OF TOXINS (passenger- kms.)
AND GREENHOUSE GASES
o Promote vehicle fuel B fficiency
o lmrpove/enforce vehicle B mission
standards
A HEALTHY
AND STABLE
NATURAL o
ENVIRONMENT
Increase relative us. of public transit
REDUCE ENERGY AND o Relative use of non-motorized
RESOURCE CONSUMPTION travel modes
o Decrease use of automobiles
o Promote/support compact
MINIMIZE DESTRUCTION/ urban/suburban development
CONSUMPTION OF NATURAL
AND AGRICULTURAL LANDS o Promote use of existing
transportation rights-of-way
o Effective regulation and enforcement
REDUCE INCIDENCES OF of transportation safety standards
A PHYSICALLY AND lLLNESS/DlSABILITY DUE TO
PSYCHOLOGICALLY INJURY AND STRESS o Reduce stresses of road congestion
HEALTHY POPULATION and costs of travel
PROVIDE EFFECTIVE
TREATMENT SYSTEM
o Discourage roadways and new
transportation rights-of-way which
PROMOTE INCREASED divide communities
LOCAL INTERACTION &
SOCIALLY SUPPORTIVE LOCAL IDENTITY o Promote traffic calming and
AND EF F ECT I VE pedestrianism
COMMUNITIES
PROMOTE INTEGRATED
COMMUNITIES (i.e. MIXED
USE URBAN DEVELOPMENT
., \ r
YORK
PEEL
Hi A L T O N
2
METRO TORONTO
I
ADDITIONAL LAND SUBURBANIZED BY 2021 AD
For Spread (l), Central (2), and Nodal (3) Concepts
Attachment 7
APPLICATION OF LAND UTILIZATION BASED PROPERTY TAX SYSTEM
SIX ILLUSTRATIVE EXAMPLES
1 2 3 4 5 6
TRADITNL 3-STOREY
SHOPPING MIXED HIGH-RISE
VACANT 2-STOREY 2-STOREY PLAZA RETAIL/ CONDO
LOT HOME HOME (1-STORY) RESIDENL (20-STOREY
LOT DIMENSIONS 25X 100 25X 100 50x 120 400 x 700 400 x 700
A
400 x 700
LOT SQ. FT. 2,500 2,500 6,000 280,000 280,000 280,000
B BLDG FLOOR SPACE o 1,800 1,800 50,000 150,000 360,000
RATIO B TO A 0.00 0.72 0.30 0.18 0.54 1.29
APPLICA770N OF TAX:
.
LOT SIZE - SQ. FT X RATE
RATE = 0. 3 $750 $750 $1,800 $84,000 $84,000 $84,000
FLOOR SPACE X RATE
RATE = 0.5 $800 $25,000 $75,000 $180,000
(Option exists to differentiate commercial from residential rates)
BASIC TAX $750 - $109,000 $159,000
ADD RATE TO REFLECT B:A RATIO
RATE = 0.25 X (1 / B:A) X BASIC TAX
$0 $297 $203 $4,866 $21,295 $64,667
TOTAL PROPERTY TAX
I I I
1 1 1 10 50 320
AVG. TAX PER UNIT
I
Rates among the 3 factors could be adjusted to reflect desired emphasis and/or result. Separate tax mechanisms maybe
set up to apply to agricultural and natural areas.
it IS assumed that a land utilization tax system would be phased into cushion changes in tax rates to individual owners
of relatively underutilized properties.
N.B. If accompanied by transfer of education and welfare COStS to income taX, overall property taxes for most people would be
IMPACT OF ENVIRONMENTALLY-APPROPRIATE TAXES
Land Utilization Tax
system
Energy
Tax
Reduced
energy
use
Healthier
natural
environment
Reduced traffic congestion
Reduced energy & auto imports
Healthier
economy
A
Environmentalists Plan Transportation.
c/o 229 Brunswick Ave., Tor. ON M5S 2M6
SUBMISSION TO THE GTA TASK FORCE
REGARDING TRANSPORTATION AND THE ENVIRONMENT
EPT believes strongly that changes to be proposed by the GTA Task Force concerning
governance and the financing of services in the GTA should reflect an ecosystem approach. This
means putting in place a system or set of measures which will result in improvements to the
environment, economy and community as an integrated whole.
The recommendations of EPT reflect a set of significant concerns:
That the extent and rate of forecasted environmental damage and decline in the
next several decades is being seriously underestimated by decision-makers, and
will adversely affect the daily lives of GTA residents;
That the impact of todays GTA transportation system, with its growing
dependence on automobile travel, is a serious economic, environmental and
social threat to the long term well-being of GTA residents;
That the market-value-based property tax system of financing GTA public
services is obsolete and does not support a sustainable natural environment;
That the current governing structure is unable to adequately meet the
challenges presented by the deteriorating global environmental situation.
As a result, EPT recommends to the GTA Task Force
That it recognize that planning for the long term health of the Greater Toronto
Area means establishing structures and policies which improve the
environmental, economic and community health of the GTA as an integral
whole;
That the planning, implementation and operation of the GTA public
transportation system be the responsibility of a single GTA-wide level of
government which is directly elected by the public;
That property taxes in the GTA be significantly reduced;
That, to replace revenues lost through reducing property taxes, a GTA energy
tax at the retail level be established to create an incentive to create demand for
better insulated housing, streamline travel habits, reduce wasteful
household/industrial utilization, spur the use of (and demand for better) public
transportation, increase walking and cycling as transportation modes, generate
more efficient freight movement, and improve the market for efficient
appliances and machinery;
That the remaining property taxes be based not on market value concepts but
on the basis of how the land is used, and oriented so that taxes are calculated
based on lot size, building floor space, and the ratio of floor space to lot size.
The effect of such a tax should be to reduce suburban sprawl, improve to
potential for reurbanization and infill of existing built-up areas, and to enhance
prospects for improvements to the public transit system.
Details of EPTs concerns and proposals are attached, entitled Governing For
Sustainability.
EPT contacts: Joan Doiron Co-Chair 416-929-5483
Udo Stillich, 905-820-4110
Michael Johnston, 416-486-7110
EPT
The Transportation Caucus of Toronto Environmental Alliance -348-0660
401 Richmond St. W. (at Spadina) Suite 104, Toronto, Ont. M5V3A8 - Fax. 596-1374
August 25, 1995
Anne Golden, Chairperson
Greater Toronto Area Task Force.
Dear Anne,
Thank you for providing EPT with an opportunity to present its concerns and
recommendations with regard to the critical work of your Task Force.
Our presentation to you today arises from the general concerns which we
expressed to you in our letter of May 2, 1995. In that letter, we explained how we
must ensure that transit is planned and provided prior to the funding of roads; how
the proliferation of roads and highways within and beyond the GTA is generating
urban sprawl, auto and truck dependence, pollution and unhealthy living conditions.
Metros economic decline is inexorably connected to this massive road construction
leading companies to move to areas with low taxes in the GTA and beyond.
We share the hope (stated in your NOWletter) that the GTA can become one
of the worlds preeminent urban centres in which to live, work, invest,and visit. We,
of course, equally strongly support your vision of a healthy, dynamic urban core pivotal
to the quality of life and social stability of the entire region with a high-quality urban
environment through more compact, transit-supportive development. We see the return
to walking and cycling as essential parts of this high quality.
But, as our presentation will make clear, we have great fears that time is
running out for realizing this vision. We are warned by the Ontario Environment
Ministry that Ontario has the dirtiest air in Canada; that there is a dramatic increase in
asthma (particularly among children); that more and more summer days arrive with
health warnings; that modern cars are cleaner but a dramatic increase in their numbers
and use has cancelled out any benefit from this advance.
We, nonetheless, anticipate reports such as that of your Task Force with the hope
that it will stimulate the political will to make the critically necessary changes in tax
policies to realize sustainability in our urban centre.
Thanks for your interest in our efforts to help build a liveable Toronto Area.
(Joan oiron) Co-Chair ~PT - 929-5483
t
ETOBICOKE
THE BOARD OF HEALTH
FOR THE CITY OF ETOBICOKE HEALTH DEPARTMENT
ETOBICOKE CITY HALL, 399 THE WEST MALL, ETOBICOKE, ONTARIO M9C 2Y2
OFFICE OF THE SECRETARY
(416) 394-8265
FAX NO. (416) 394-8893
27 September 1995
Dr. Anne Golden
Chair
Greater Toronto Area Task Force
393 University Avenue
20th Floor -2001
TORONTO, Ontario
M5G 1E6
Dear Dr. Golden
The Etobicoke Board of Health at its meeting of 21 September 1995, passed the
following resolution whereby it outlines the Boards concerns with respect to
inequities being experienced amongst municipalities:
THAT, the Board of Health make a submission to the Golden Task
Force to advise them of the issues identified by the Board at its meeting
of 21 September 1995 which are as follows:
Respectfully submitted,
Carmelita Zaccaria
Secretary, Board of Health
ETOBI COK E
July 17th, 1995
Ms. Anne Golden,
Chair,
Greater Toronto Area Task Force,
393 University Avenue, 20th Floor
Suite 2001,
Toronto, Ontario. M5G 1E6
Dear Ms. Golden:
Re: Reform of the Greater Toronto Area
City of Etobicokes Brief to the Golden Task Force
For your attention and review, enclosed please find a copy of the City of Etobicokes Brief and
preferred approach on the reform of the Greater Toronto Area, as adopted by Council, at its
meeting held on July 14th, 1995. Etobicoke is recommending a downsizing of Metros powers
and responsibilities, with transfer of functions either to the local municipalities or to the
Province. Council supports the idea of a loose GTA structure which would co-ordinate
boundaryless services such as transportation, conservation and environment management.
Council is extending an invitation to your Task Force to meet to discuss Etobicokes Brief.
Council is also willing to appear before the Task Force to elaborate on its position with regard
to the GTA Reform.
For your information, Council has not finalized its position on Education Funding and will
forward its comments at a later date. If you have any questions or require further information,
please do not hesitate to contact me at 394-8080.
Cathie L. Best,
Director, Council Support,
Administrative Services.
/pt
encl.
Administrative Services Department - Council Support Division
399 The West Mall, Etobicoke, Ontario, M9C 2Y2 TEL (41.6) 394-8101 FAX (416) 394-8895
THAT Etobicokes Brief to the Golden Task Force on the Reform of the Greater Toronto Area,
be endorsed by Council for immediate submission to the Task Force; and
THAT Council issue an invitation to the Golden Task Force to meet with Etobicoke Council to
discuss the Brief and that Council confirm its willingness to appear before the Golden Task Force
to elaborate on its position with respect to the Greater Toronto Area Reform, all in accordance
with the report from the City Manager, dated July 14th, 1995.
Carried
D. C. Holyday
Mayor
THE CITY OF ETOBICOKE COUNCIL
BRIEF TO THE GOLDEN TASK FORCE
On REFORM OF THE GREATER TORONTO AREA
Introduction
The City of Etobicoke is on the western boundary of Metropolitan Toronto. With a 1991
population of 310,000 residents and over 9,500 businesses, it is the fourth largest
municipality in the Metro region. Largely developed, it has a mixture of both mature and
growing residential communities.
The recession has taken an immense toll on the Citys industrial areas, principally
located in the Lakeshore Area, as many businesses have either gone out of business
or moved to more financially viable areas. There is a surplus of 12 million square feet
of commercial and industrial space.
Etobicokes focus has been on re-development of various nodes within the City. The
most notable is the City Centre area which, when built out, is estimated to bring about
a population increase of 11,000 persons and 25,000 jobs. This, combined with a
forecasted ten year net increase in population, will expand the Citys population to
335,000. Over the next ten years, it is estimated that almost 27 million square feet of
non-residential development will occur.
Etobicoke is known for its proximity to four major highways and to the Lester B. Pearson
International Airport. This makes it an ideal location for business who rely on strategic
transportation routes for its products and services. It is truly a gateway for the Greater
Toronto Area.
Etobicokes Vision - The Leading Edge of Metro
In 1993 Etobicoke Council published its strategic plan, Etobicoke 2010. This plan
addresses the individual, social, economic and environment issues facing the
municipality and provides a mechanism to manage these issues. The document
presents the vision and future direction for the municipality.
Ratepayers, businesses, education and social agencies, other levels of government and
the general public had a say in the development of the Strategic Plan. Together, we
built a vision of Etobicoke as the Leading Edge of Metro - The Place to Live, Work and
Play,
The Goals of the Strategic Plan respond to concerns expressed by its citizens and
businesses. They include efficient, effective and accessible municipal services, business
development, public safety, healthy lifestyles and the environment.
THE CITY OF ETOBICOKE COUNCIL
BRIEF - REFORM OF THE GTA 2.
Etobicokes Role in the Future of the Greater Toronto Area
Politicians, municipal staff and the public have participated in many forums which
discussed the future of the Metropolitan Toronto Area and the Greater Toronto Area.
Etobicoke Council has long recognized the need for a review of the governance structure
in Metropolitan Toronto and has called upon the Provincial Government numerous times
to undertake financial reform of the taxation and grant systems.
Etobicokes citizens are feeling over-governed and over-taxed. Public confidence in the
political system is dwindling. Appeals for reform are being unheeded. Businesses are
feeling burdened by the high level of taxation in the Metropolitan Toronto Area and,
despite having to leave a prime location, are relocating to areas outside of Metro.
It is for these reasons that Etobicoke Council is presenting its views to the Greater
Toronto Area Task Force. Rather than becoming entrenched in any one position on
governance, principles of approach are offered. Having considered these principles,
Council has suggested one approach to service delivery and management which it feels
would benefit Etobicokes citizens and businesses.
First Principles
Etobicoke is committed to the principle that Form Follows Function. The structure of the
government in Metropolitan Toronto and the Greater Toronto Area must be developed
as a result of and in response to the needs of the residents and businesses. That is,
once decisions are made with respect to what needs to be done, the most appropriate
structure -- who will provide what needs to be done-- can be designed.
Assuming that the same type and level of municipal and regional services are to be
continued, Etobicoke Council offers the basic First Principles of any discussion with
respect to structure:
(1) Services must be delivered at the level of government which is most effective and
cost efficient.
(2) Services which can be delivered more effectively and with less cost by the private
sector should be privatized, as long as policy and community interest issues are
not diminished by the use of such alternative service delivery mechanisms.
(3) Services which respond to social equity issues should be delivered at the level
which has the authority to formulate the policy decisions.
.
(4) The public must understand the structure and must perceive the value which is
provided by their tax dollars.
(5)
(6)
(7)
(8)
(9)
(lo)
THE CITY OF ETOBICOKE COUNCIL
BRIEF - REFORM OF THE GTA 3.
The public must have direct and immediate access to elected officials and the
government administration.
Clear lines of responsibility must be set in order to guarantee public
accountability.
The structure must be flexible and dynamic, capable of responding to changing
service demands, fiscal pressures, innovations and community interests.
The form of governance must be capable financially and administratively to
respond to service and policy-driven demands.
Services which are, in the publics eyes,
seamlessiy.
The governance structure must permit
performance of responsibilities relating to
funding.
boundary-less should be delivered
discretion and autonomy in the
service development, delivery and
Etobicokes Response to other Governance and Funding Initiatives
As mentioned earlier in this brief, Etobicoke Council and staff participated in many other
governance and funding initiatives undertaken by the provincial or municipal sector. For
the sake of brevity, only the highlights of Etobicokes position are included here:
(1)
(2)
(3)
(4)
(5)
Disentanglement - Etobicoke agreed, except for transfer of assessment to
municipality. Such transfer must include authority to change to a fairer
assessment system.
Fair Tax Commission - Etobicoke agreed with most recommendations. Several
recommendations, significantly those relating to education funding, require further
study.
Report of the Provincial-Municipal Task Force under the Municipal Sectoral
Agreement - Social Contract Act - Etobicoke agreed with all recommendations.
Discussion Paper prepared by COMLAC - Government in Metropolitan Toronto:
The Local-Regional-Provincial Relationship - endorsed by Etobicoke Council.
Delegation of Planning Approvals to Metropolitan Toronto - New Planning Act -
Etobicoke opposed delegation, with support of all other local municipalities in
Metro.
EFRRA
August 24, 1995
GTA TASK FORCE
3 9 3 Un i ve r s i t y Av e. Su i t e 2 0 0 1
Toronto, Ontario
M5G 1E6
ATT Dr. Anne Golden Chair and Task Force members.
Dear Dr. Golden
In response to your GTA task force study we submit the following
comments for your consideration.
Please keep us advised of any
future meetings or information regarding the GTA.
In brief. we are pleased to see this issue being reviewed as we
are long time advocates of same. The following summary comments
are submitted on behalf of ou r 30 Etobicoke affiliated Ratepayers
Associations.
Thank you.
we look forward to communicating in future and remain
Yours truly
Bob Gull ins
President of EFRRA
CC:EFRRA Members
. . . comments
EFRRA PROFILE
EFRRA is comprised of 30 ratepayers associations throughout
Etobicoke. Their individual sizes and jurisdictions vary and
collectively we represent about 3000 households in Etobicoke. As
President of EFRRA I have been directed to submit this report for
your consideration-
Please note that the comments have been kept brief and direct.
COMMENTS
We can only scratch the surface of this complexed matter and do
not profess to having all the answers. Our prime objective is to
present our views from a ratepayers perspective with the hope we
can work towards a better, more effient and expanded GTA.
First and foremost on our list is that Etobicoke retain their
local autonomy, as should the other existing cities. Decisions
made locally but requiring additional infrastructure or common
service, can be brought to a differently structured Metro
government for incorporation into a master plan. It is paramount
that each City in the GTA maintain its own planning decisions and
identity.
Secondly, the GTA must be expanded to include the surrounding
cities as the existing tax structure is unfair to the Metro
taxpayers. Cost of services now being paid for by Metro such as
roads are used extensively by those living outside the area. The
costs have to be shared more equitably.
On a larger scale, our battle in todays economy is not competing
with other Canadians but to work together toward a renewed
country.
In addition to the foregoing we support;
a) The amalgamation of fire department-s administrative
services, but stop short. in that each municipality maintain
their traditional identity.
b) The amalgamation of the public and separate schools
administration systems to reduce the tremendous duplication
of services and capital costs for administration buildings,
staff, etc.
c) A major overhaul of the Metro housing system for the
purpose of minimizing its quantity and associated costs.
d) Eliminate the multicultural programs as most cultures
have always provided for their own and prefere it that way.
To the best of our knowledge there is no discrimination
against any groups for holding ethnic events.
e) The cost of the ESL program is a direct expense to the
Metro population and as such is unfair. Feds should pay.
e) Gay rights issues should not be in the school system.
Most of the forego items have, or should be handled either
under the provincial or federal jurisdictions.
And, as it is the
federal level that controls immigration, they should bare a]]
costs associated with settlement. why should the taxpayers in an
area like Metro foot the costs for the ESL? Any individual could
easily move out of our city or province to work thereby loosing
our education investment, The expense must be borne at the
federal level.
While we must considered what is best for the majority we should
not loose the original direction which gained Metro Toronto world
status, Our focus must return to what will stimulate the people
that developed the GTA as it is their efforts and energies that
gained Toronto its recognition. They must reap the fruits of
their labour and no doubt will continue to contribute to the
GTAs appeal and growth. This is a much better alternative t.
what is already happening.
Most of EFRRAs representatives have also been part of the cities
development and feel Metro is being damaged by catering to
special interest groups and unfair tax laws, not ignoring of
course, the impact of free trade.
While politicians gloat about what a melting pot our society has
become they fail to see that it is becoming increasingly
polarized. The job market in Metro is seriously aggravating our
problems and demoralizing many of our youth.
Metro Toronto is still among the better places to live. We have
many highly skilled but unemployed people in our labour pool that
need to be mobilized by providing good paying jobs, The unemploy-
ment figures and most of the other statistics available do not
begin to reflect the reality of the problem in the GTA let alone
Canada.
In conclusion EFRRA have been advocating changes for several
years which would have minimized some of todays problems. The net
result is we are now in a crisis state and while many people need
to be shocked into realization, we do not believe the required
changes need turn our world upside down. Changes needed should
get back to basics.
Thank you again for your time and best wishes in future.
Bob Gull ins
END.
cc: EFRRA members
FEDERATION OF CANADIAN MUNICIPALITIES
&
CANADIAN ASSOCIATION OF MUNICIPAL ADMINISTRATORS
SUMMARY OF THE DELIBERATIONS
OF THE
JOINT TASK FORCE ON MUNICIPAL GOVERNMENT
A FCM POLICY WORKSHOP - JUNE 11, 1995
Michael H. Boggs
Chief Administrative Officer
of the Regional Municipality of Niagara, Ontario,
and Member of the Task Force
The Federation of Canadian Municipalities (FCM) and the Canadian Association of Municipal
Administrators (CAMA) have co-ordinated a joint Task Force to advance their common interests
as stated in their respective Mission and Policy Statements. In its Mission Statement, FCM is
committed to enhancing the Role of Municipal Governments through the following statement:
Community governments are the primary administrative units of Canadian society
and, as such, are ideally situated to deliver public services effectively and
efficiently. As Canadian society grows and becomes more complex, the roles and
responsibilities of local governments expand to meet new needs.
FCM
participates in this evolutionary process by drawing upon the richness and
diversity of the Canadian municipal experience, by acting as a medium of
communication among municipal governments, by sharing ideas and information,
and by positioning itself at the forefront of innovation in municipal operations.
The Canadian Association of Municipal Administrators (CAMA) echoes that sentiment in the
following Mission Statement:
To develop and promote excellence in municipal administration and the role of
municipal management in order to enhance the quality of municipal government
in Canada.
The Joint Task Force on the Role of Municipal Government has been pursuing this mandate
through a review of the FCM Policy Statement and Recommendation (attached), which were
approved at the 1994 Annual Conference. Also, the debate will be continued at a National
Seminar which is being co-sponsored by FCM and CAMA in the fall of 1995.
In order to ensure that the Seminar, which will be attended by invited academics and
practitioners from all three orders of government, will be focussed on municipal government
issues, there is a need to identify major themes. Participants will be invited to prepare
submissions on these themes for debate at the Seminar. The published results will be the basis
for a further presentation at the FCM and CAMA 1996 Annual Conferences. Four possible
themes were presented and others were proposed from the floor at the June 11, 1995, Policy
Session. The following is a summary of the proposed themes:
1. GOVERNANCE
This topic was investigated thoroughly by the Association of Municipalities of Ontario
in three papers published in 1994 and 1995. The first of these papers was a background
research document entitled Local Government in the Future: Issues & Trends. This
document concluded that municipal governments are an order of government and serve
as a significant foundation of our democratic system. As the public is demanding a
rationalization and revitalization of political institutions, it is essential that the provincial
and municipal governments commit to reform towards ensuring that local governments
are part of this process. The second paper was a statement of the policies and principles
that should apply and was entitled The Ontario Charter: A Proposed Bill of Rights for
Local Government. This document identified the four cornerstones of a new and
improved role for municipalities.
. . . .contd
page 2
. LEGAL FRAMEWORK - There is a range of alternative courses of action from the
status quo to full constitutional recognition of local government. Between these two
extremes are options such as a charter, a bill of rights, a mandate, a partnership,
and an agreement. It is clear that the status quo is not an acceptable course of
action to address the current strained relationship between the provinces and
municipalities. However, the constitutional alternative has not received any support
from either the provincial or the federal government. We need to develop a viable
alternative which will be acceptable to all orders of government. This alternative
must, at a minimum, include the establishment of local autonomy, provide access
to provincial decision-making, and embrace the concept of local self-government.
. LEGISLATION - Currently, in Ontario there are at least 150 Acts that dictate the
operations of municipalities in a prescriptive and restrictive fashion. All other
provinces, with the exception of Alberta, are faced with the same dilemma. To
address this concern, some provinces have agreed to develop permissive and
enabling legislation that defines both the provincial and municipal role. The Alberta
Municipal Government Act is based on the principles of enabling municipalities to
act with the authority of a natural person, albeit with some restrictions; of dedicating
property taxation to meet local government needs; of accepting that income
redistribution programs are to be funded from less regressive forms of taxation (i.e.,
income and sales); and of the requirement that the level of government that requires
and sets standards must pay for the cost of these standards. Further, that Provincial
Government has realigned its ministerial functions in a manner consistent with these
principles and in a more business-like fashion, rather than on the traditional
government departmental alignments. The Province of Ontario, in its 1994 Planning
Act, followed this Alberta model to a certain degree in incorporating the require-
ments for Provincial Policy Statements with which municipal plans must be
consistent. However, in both Alberta and Ontario, the positive effect of rewriting
legislation to permit and enable municipalities to act within a policy framework has
been considerably diminished by subsequent regulations that reintroduce the
restrictive and prescriptive requirements. This is seen by municipalities as an
attempt by provincial bureaucrats to retain power, notwithstanding the actions of the
legislature to delegate this power.
. RELATIONSHIP - Municipalities have been working in the legislative regime
described above for many years, and have made the relationship with the provinces
work in spite of being treated as children of the provinces. The most recent
recession and the fact that the federal government and most provincial governments
are, for all practical purposes, bankrupt, has resulted in increased downloading,
transfer payment reductions, and a less tolerant parent. Of the total public sector
debt in Canada, which is approaching one trillion dollars, only three billion is debt
of municipalities and that debt has financed capital infrastructure with a future life,
as opposed to the debt of other levels of government, which, to a great extent,
finances current operations. The current overlap of services and responsibilities
between municipal government and the federal and provincial governments must be
. ...contd
page 3
clarified and redefined. In order to promote accountability to the public, they must
know which order of government is responsible for which program from a policy,
service delivery, and funding perspective. The relationship between orders of
government must be disentangled with the authority and responsibility for a function
following mutually agreed principles that will provide the framework for an
improved and logical relationship. An example of these principles is included in the
unsuccessful attempt by Ontario municipalities in 1993 to re-establish a good
working relationship with the province. These principles were:
a)
b)
c)
d)
e)
f)
To the extent that income redistribution is a program or service objective,
policy/service management and program financing should be a provincial
responsibility.
The degree of involvement in policy/service management for each level of
government should be determined by the type and level of spillovers.
Services should
economically.
Services should
effectively.
be provided at the level of government that can do so most
be delivered by the level of government that can do so most
The degree of involvement in policy/service management for each level of
government should be dictated by the level of interest or the need for standards.
The allocation of policy/service management, financing and delivery responsi-
bilities should be based on promoting accountability.
-
. .
An improved provincial-municipal relationship would result in enhanced citizen
understanding, improved accountability, realization of cost savings and revenue
enhancements, and the provision of more effective services. These potential results
underscore the importance of pursuing the initiative from the perspective of our
common taxpayer.
. RE-ENGINEERING - As municipalities face, and meet, the challenges of the 90s,
they must have the authority to initiate a radical and fundamental redesign and the
creation of new processes to become more efficient in the management and operation
of programs and services. This fundamental change will require an entrepreneurial
spirit as proposed by David Osborne and Ted Gaebler in their book Re-inventing
Government. They must focus on the outputs or the value added services of the
organization, while holding managers accountable for utilizing the inputs/resources
to meet the municipalities goals. This will require new management systems that
incorporate strategic planning, organizational alignment, performance management,
and employee involvement.recognition. The tools that are available to assist with
the enhancement of organizational performance include Continuous Quality
. . . .contd
page4
Improvement, Activity-based Cost Management, Benchmarking, and others.
Changes to the way they do business are inevitable. Those in the public sector who
ignore these changes will fall by the wayside. Those who accept and tolerate these
changes will survive. Those who promote and celebrate these changes will succeed
beyond expectations.
The third AMO paper, entitled Better Government, Lower Cost: A New Municipal
Mandate was prepared to elicit a commitment from the three major provincial parties
to change the provincial-municipal relationship. That paper summarized the initiatives
identified in the second paper and challenged the province to co-operate, legislate,
delineate, rejuvenate, integrate, and facilitate. The municipal model in Ontario is in need
of reform, and AMO has provided a framework for fundamental change designed to end
duplication, to ensure equitable and accountable funding, to negotiate a partnership
agreement and to replace the Municipal Act. The final step is provincial action to
implement significant municipal reform.
2. PUBLIC PARTICIPATION
Katherine Graham and Susan Phillips of the School of Public Administration at Carleton
University are preparing, in conjunction with a study team of academics and
practitioners, a paper on making public participation more effective. The study team will
examine public participation with regard to the major issues facing local government in
Canada today. They have defined these issues to be:
.
economical development;
changes in the patterns of where and how people live in cities;
the fiscal squeeze and entanglement/disentanglement of municipal finances with the
financial systems of other orders of government; and
pressures for enhanced political representation and accountability.
In addressing each of these issues, the study team will be cognizant of the hard policy
choices to be made by municipal governments and the increasing evidence that
municipalities in Canada are being called upon to deal in a proactive way with issues of
community development.
The study team leaders will prepare an initial conceptual paper on public participation.
This paper will review the literature and will set out an agenda for case studies. Eight
case studies will be conducted. Each area of focus noted above will be the subject of
two case studies. One will be done by an academic, the other by a practitioner. They
will be drawn from a variety of cities across the country. The case studies will then be
synthesized with a view of developing a set of concluding lessons to be learned.
3. ABORIGINAL SELF-GOVERNMENT
The FCM, in co-operation with CAMA, submitted a paper entitled Municipalities and
Aboriginal Peoples in Canada to the Royal Commission on Aboriginal Peoples in
August 1993. That paper and subsequent initiatives, will form the focus for a discussion
on the topic. The FCM paper concludes as follows:
. . . .contd
page 5
The nature of municipal/Aboriginal relations stretches the entire spectre
of attitudinal expressions, ranging from non-existent, to tentative, to
business-like, to excellent. The overall trend, however, is one of
improving communication and understanding. While we recognize the
unique parameters of each situation, and while the statistical data gleaned
from our survey cannot be conclusive, some general observations can be
made.
We can ascertain that some local governments are uncertain as to an
appropriate role with respect to Aboriginal peoples. Conversely, from
an Aboriginal viewpoint, the appropriateness of their involvement in
what constitute non-traditional styles and institutions of government is
questioned. At times, Aboriginal peoples show a reluctance to assert
themselves as distinct political communities. Alternatively, local
governments are not always aware of the distinct status of Aboriginal
peoples.
As a result, municipal/Aboriginal relations in Canada present a rich
kaleidoscope of unique historical, geographical and demographic
situations. This diversity does not lend itself easily to any ideal model,
but rather to certain principles underlying good relations. The
experience of municipal governments is of value to Aboriginal peoples
as they pursue their aspirations for local autonomy with larger political
structures supporting and representing their interests, but requiring co-
operation beyond the immediate boundaries of their community.
Government-to-government relations between municipalities and
Aboriginal peoples highlighted in our research are a pragmatic response
to the interface of municipal/Aboriginal interests and a testament to
Aboriginal self-government in practice.
No government can act in complete isolation from others. It is,
therefore, difficult to contemplate the successful implementation of
recommendations with respect to improving the relations between
Aboriginal and non-Aboriginal people without the approval and co-
operation of all governments, including local governments. Inter-
dependence and co-operation, the characteristics of a federal system,
must also be reflected in municipal/Aboriginal relations. Aboriginal
people, as other members of society, wish to have control over their
destinies. It is time to set aside stereotypes and recognize that
Aboriginal leaders have been trying to implement responsible
government for many years. Defining and implementing Aboriginal self-
government will require a great deal of understanding, co-operation and
goodwill.
. . ..contd
page 6
We do not need any more indicators of the marginalized position of
Aboriginal peoples in Canada. We do need a collaborative design
towards change. We must move beyond merely managing situations to
adopt a comprehensive plan which includes objectives and concrete
strategies. Municipal leaders must combine efforts with Aboriginal
leaders to identify and overcome barriers of mistrust, misperception,
racism and systemic discrimination. Practical solutions can be found at
the local, grass-roots level regardless of constitutional fiat: we can
commit to building better communities together.
In the past, agreements between the Haudenosaunee Confederacy and
Canada were governed by principles symbolized by the Two Row
Wampum: on the River of Life, Aboriginal and non-Aboriginal peoples
would navigate together, side by side, on parallel courses. Each boat
would be governed by its own laws, traditions and beliefs; neither people
would make laws over the other. While respecting the spirit of these
principles, FCM hopes that this brief will encourage a dialogue between
municipalities and Aboriginal peoples toward a common course to a
shared destination.
4. PUBLIC-PRIVATE PARTNERSHIPS
In February of 1995, Public Technology Canada (PTC)--a joint venture of FCM, CAMA
and Public Technology Inc.--undertook, with the sponsorship of Industry Canada, to
conduct a cross-Canada series of workshops in order to explore the challenges and
opportunities for public-private partnerships (PPPs) in the municipal environmental
infrastructure sector. The six workshops took place in April 1995.
It was recognized that growing fiscal constraints, the drive for greater operating
efficiency and technology acquisition might force municipal administrators to look to the
private sector for the provision of environmental infrastructure and services following the
trend in some European countries, but that the Canadian environmental industry might
be organizationally and financially unprepared to respond.
The primary objective of the workshops was to bring together municipal decision-makers
with manufacturing, construction and consulting engineering companies and financial
investors interested in municipal environmental infrastructure projects (MEIPs), in order
to:
B
B
B
B
discuss the opportunities and barriers related to this issue;
highlight successful models drawn from the participants own experiences;
assess the potential of PPPs as municipal strategic options; and
build awareness among industry participants of new business potential in this area.
. . . .contd
page 7
To summarize the main points which emerged from the workshop process:
5.
1. There is a significant unrealized Canadian demand for municipal environmental
infrastructure development and renewal.
2. It is predicted that fiscal challenges facing local governments will soon render it
imperative to create innovative solutions involving partnerships with the private
sector.
3. The Canadian environmental industry is structurally (as opposed to technologically)
underdeveloped in comparison with some of its foreign rivals in an increasingly
global market, which means that these foreign firms are in a position to gain a
significant market share in Canada. The reality of foreign competition should act
as a stimulus for Canadian municipal environmental, construction and consulting
engineering companies to meet this challenge.
4. It is in the common interest of Canadian municipalities and the environmental
industry to develop strong Public-Private Partnerships in order to meet domestic
needs and build a base for support. However, numerous steps need to be taken
by the industry, its associations, municipalities and senior governments in order
to increase awareness, develop trust and create mechanisms for the development
of such partnerships.
The paper and recommendations from the Workshops will be presented at the National
Seminar to initiate the debate.
FRAMEWORK FOR DECISION-MAKING--A BUSINESS MODEL
This possible theme was proposed from the floor at the Policy Workshop. Assuming that
municipalities are successful in obtaining additional authority and responsibility from the
other orders of government, they collectively need to know that they are making
decisions in the best interests of their citizens and ratepayers. The federal and provincial
governments have a parliamentary form incorporating party politics, caucus and cabinet
process and the constitutional mandate to make decisions. Municipalities do not have
these mechanisms available to them and thus need to develop a framework for decision-
making. The processes utilized in the private sector appear to be more efficient and
include a Board of Directors, Corporate Management, Shareholders Meetings, Audited
Financial Statements, and Annual Reports. Local government may benefit from a
Business Model; however, it is clear that the public will demand an open and accessible
process of decision-making. With closed-door caucus and cabinet meetings at the federal
and provincial levels, and private executive and board meetings in the private sector, we
should not try to duplicate either model totally. The National Seminar could pursue this
discussion and formulate a model that meets the needs of the public, while learning from
the other private and public sector models.
. . . .contd
page 8
6. ENTERPRI SING COMMUNITIES AND MANAGERS
This theme was utilized by both FCM and CAMA as the focal point of their 1995 Annual
Conferences. Many papers on practical examples of innovations and entrepreneurial
achievements were presented by practitioners and invited guests. These papers, which
explored issues such as Benchmarking, The Electronic Community, Infrastructure,
Partnerships, Community Economic Development, Activity-based Cost Management, and
Leadership, will be utilized to advance the discussion on the emergence of enterprising
municipal government.
CONCLUSION
Over the last few years, municipal governments across Canada have been demanding significant
change in their relationship with the provincial and federal governments. Some provinces have
been more responsive to the municipal point of view. However, municipalities need to continue
this initiative to ensure that there are clear lines of authority and responsibility for programs and
services. The public needs to know whom to hold accountable for the policy development,
service delivery, and funding of a myriad of federal, provincial and municipal functions. Orders
of government have an obligation to their customers, residents, and taxpayers, to provide
efficient and effective services. A restructuring of the relationship between the orders of
government is critical to the economic, environmental and social health of our country and its
communities.
THE RECOGNITION OF MUNICIPAL GOVERNMENT
For decades the Federation of
Canadian Municipalities (FCM) has sought a
better understanding of the role municipal
governments play in the nations political and
economic development. In part, because of poor
communications arising from the outdated status
of municipal governments, federal policies and
programs are often out of step with local realities
and needs, resulting in duplication, waste and
negative results for municipal governments and
taxpayers. Municipal governments are
challenged by the widening gap between the
recognition of their role and political and
economic realities. Canadians rightly expect all
orders of government to cooperate in the delivery
of public services.
Municipal government is the bedrock
upon which Canadian democracy rests. By being
closest to the people and representing a
geographically concentrated area, municipal
councils are able quickly to discern needs and
respond to them without delay. VVlth
responsiveness has come growing demands for
services, ranging from policing through housing to
recreation and, in some provinces, social
assistance. In addition, because of the scaling
down of federal and provincial programs, even
more responsibilities have been directly and
indirectly offloaded onto municipal governments.
The debate over the need for
recognition of the status of municipal
governments predates Confederation. Lord
Durham, in his 1839 report, argued in favour of
guaranteeing municipal institutions in the
Canadian Constitution. Lord Durhams
recommendations were never embodied in
Canadas constitutional law. The Constitution
Act, 1867, established the parameters of current
federal and provincial relationships with municipal
governments. Section 92 of the Act set out the
exclusive powers of provincial legislatures in 16
54
areas, with section 92(8) giving the legislature of
each province exclusive responsibility for making
laws relating to that provinces municipal
institutions.
For years municipal governments have
criticized the institutional restrictions on their
decision making powers and ability to raise
revenue. They have worked to simplify the
complex intergovernmental matrix of shared
responsibilities and resources in favour of
transparency and accountability. Throughout the
country, municipal. governments have tried to find
alternatives to the current system which would
provide greater autonomy. In a number of
provinces, municipal governments have engaged
in exercises aimed at disentangling municipal
responsibilities and revenue sources from the
provinces. Through FCM, municipal governments
have argued for explicit recognition of the
essential role of municipal governments in the
Canadian federal system.
In 1991 FCM informed the federal
government that the Charlottetown Accord, like
the Meech Lake Accord, was deficient because it
failed to acknowledge the existence and role of
municipal governments in Canadas political
system. In FCMS 1991 brief to the Special Joint
Committee on a Renewed Canada, FCM
advocated a two pronged approach to
recognition. First, municipalities would negotiate,
through their provincial/territorial associations, a
redefinition of their status under provincial law
with their respective provincial/territorial
governments. Second, the Canadian Constitution
would be amended to recognize the existence
and role of municipalities and to commit the
federal government to consider the impact on
municipalities of its policies. Though Prime
Minister Pierre Trudeau agreed in 1978 to
consider including municipal recognition in the
Constitution, in 1991, provincial and federal
governments refused to add FCMS proposals to
the already overcrowded constitutional agenda.
The Charlottetown Accord was defeated in a
national referendum.
Whatever debate may continue over
what municipal governments should be
responsible for and how much autonomy they
ought to have, it has become apparent that
municipal governments play an increasingly
important role in Canadas social, economic,
cultural and financial affairs. Though their legal
existence is dependent on provincial law, their
evolution into governments in their own right is a
practical reality. The challenge for Canadians is
to recognize this reality and grasp the
opportunities which it presents. The fundamental
premise upon which municipalities now rest their
case for municipal recognition is that proper
cooperation and consultation among ail orders of
government will enhance the efficiency and
quality of governance and will ensure greater
equity for taxpayers.
FCMS priority is to ensure day-today
recognition of the fundamental effect that federal
government initiatives and programs may have on
municipalities. Exclusive provincial jurisdiction
over municipalities should not render the federal
government indifferent to greater cooperation and
consultation among all orders of government.
Nor can the federal government behave
indifferently towards the scope and magnitude of
our urban problems. While Canada is one of the
most urbanized nations on Earth, the
constitutional gulf which separates our municipal
and federal orders of government is wider than
that of any other developed nation. The federal
presence is felt in municipalities through a
multitude of areas ranging from tax policy to
economic development to criminal law. The
federal government must acknowledge the effect
of its policies on municipal governments.
The provinces and territories have
frequently proven themselves unable or unwilling
to promote the i nterests of municipal
governments in intergovernmental processes. A
recent example is their unwillingness to allow
municipal government representatives to join as
full and equal partners on the management
committees overseeing the national municipal
infrastructure program. This occurred despite the
fact that municipal governments are paying one
third of the costs of the $6 billion program.
Another example of poor intergovernmental
cooperation is the federal and provincial practice
of excluding municipal governments when
discussing fiscal policies in the interest of the
overall Canadian economic performance. Despite
the compelling fact that the budgets of several of
our largest cities are greater than the budgets of
several provinces, not a word is mentioned of the
first order of government.
FCM bel i eves t he Canadi an
Constitution will never be complete without the
recognition of the essential role of municipal,
government in the Federation. Although
constitutional change has reduced significance on
the national agenda, municipal leaders are
resolved to seek practical steps towards a formal
recognition of the central role that local
governments play in the larger tapestry of civil
society and quality of life.
During the 1993
Federal Election, FCM and its member municipal
governments demonstrated their potential
strength when organization, focus and fairness
form the basis of their approach.
Canadians want governments to be
responsive and efficient and they want to control
their institutions. Canadians rightfully expect all
orders of government to cooperate in the delivery
of public services. Unless the role of
municipalities in the Canadian political system is
recognized, the quality of our democracy, the
efficiency of our public services and the equitable
treatment of taxpayers are all compromised.
Recommendations:
That FCM:
1. urge the federal government, and
through provincialterritorial municipal
associations the provincial/territorial
governments, to recognize the need
for an expanded partnership which
would include municipal government
as a full partner in intergovernmental
processes;
2. remind the federal government of the
effects of its actions on municipal
governments and urge the federal
government to recognize and consult
FCM as the vehicle through which
municipal government viewpoints are
expressed on national issues;
3. urge the federal government to consult
municipal governments direct on
federal policies and programs of local
significance;
4. urge the provi nci al / terri tori al
g o v e rn m e n ts, through the
provincial/territorial municipal
associations, t o negot i at e a
redefinition of the status of municipal
governments as requested by
provincial/territorial municipal
associations, and to recognize such
n ew a r ra n g e m e n ts in the
provincial/territorial constitutions:
5. urge the federal and provincial
governments to recognize municipal
government as an order of
government in the Constitution of
Canada; and
6. urge all Parliamentarians to recognize
the essential role municipal
governments play in the governance
of Canada and to accept that such
recognition is a prerequisite for the
efficient delivery of quality public
services and the equitable treatment
of Canadian taxpayers by the federal
government.
Adopted at the FCM 1994 Annual Conference
56
Tenants and Property Tax #1
What is property tax?
Property tax is just what it says it is - a tax on property, whether that property is a piece
of empty land or a building.
The buildings can be a single-family home, a triplex or a twelve story apartment building.
It can be a building used for a business, like an office or store, or it can be a factory.
It doesnt matter what the building is used for. Every building or piece of land in Ontario
has some sort of value and the provincial government uses different methods to calculate
its value.
How much the building is worth is the basis for calculating how much property taxis paid
by the owner, or by the tenant through their rents, But higher valued properties dont
necessarily pay more tax. There are many other factors that are taken into consideration,
When did
Property tax
years.
property tax begin?
has been used in Ontario to raise money for the government for almost 200
Who pays property tax?
Everybody! Tenants, homeowners, businesses,
But only tenants are not told about the tax they pay. Tenants dont get a bill for their
property tax. Tenants dont get a notice when the tax bill goes up. Only landlords get
this information, since they are the owners of the property.
But its tenants who pay the tax on the property - as part of our rent. Each month, each
year. And the tax is large, anywhere from 20- 30% of our monthly rent!
What do we get for our money?
Money from property tax helps to pay for the many services that our cities offer,
These services include: police and fire departments, roads and sewers, welfare
payments, public libraries, parks and recreation, childrens aid, public housing, boards of
health and schools. Over 50% of all property tax is spent on education.
Property tax also pays for city inspectors whose job is to make sure that tenants live in
safe apartments that are well maintained by their landlords. This service is very important
for tenants.
How much money is involved in property tax?
Across Ontario almost 12 Billion is paid in property tax by tenants, homeowners and
businesses each year. And tenants pay one in five of the residential tax dollars!
Produced by the Federation of Metro Tenants Associations May, 1993
Tenants and Property Tax #2
Property Tax is a Hidden Tax
Income Tax, sales tax and GST.... Every time we look at a pay cheque or sales slip we
are made aware of how much we are taxed.
But did you know that tenants pay
property tax, too?
Most tenants dont realize it. Why? Because this tax is hidden. Tenants dont get a bill
for property tax. We dont fill out forms to pay it. No one tells us when the tax goes up.
All this information goes to our landlords - the owners of the properties. But while
landlords are the ones who write out the cheques for property tax, we tenants are the
ones who pay the bill as part of our monthly rent.
Property Tax is a Large Tax
How large? For tenants in buildings with 7+ units, about 30% of your monthly rent
cheque goes to pay property tax. So if your rent is $650 per month, you are paying
about $2300 in property tax each year!
Property tax goes up every year - usually at a rate higher than inflation. This is one
reason why the annual guideline for rent increases is so high. It reflects, among other
costs, annual increases in property tax.
Property Tax is an Unfair Tax
You might think that any tax that is large and hidden is already unfair! But there is
another reason why property tax is particularly unfair to tenants.
Outdated assessment practices result in rental units being treated differently than owner
occupied units at taxation time, Taxes are supposed to be based on the value of the
property. Once they were, But the current tax assessments dont take into account that
the value of houses has gone up over the years much more than rental property.
The result? Tenants pay more than their fair share of property tax.
How Unfair is it?
A comparison of three actual properties - a single family home, a condo and an
apartment will show just how unfairly tenants are treated.
A three storey completely renovated Riverdale house with a front and back yard and
parking is charged $1,200 in property tax.
A 2 bedroom condo unit in a 1970s downtown highrise with a view of the lake and an
indoor pool/sauna/exercise area is charged $1,405 in property tax.
A one bedroom apartment in a 1950s downtown highrise with no view and no amenities
is charged $1,788 in property tax.
Remember - we tenants pay this property tax as part of our rent!
Produced by the Federation of Metro Tenants Associations May, 1993
Tenants and Property Tax #3
How Much Property Tax do You Pay?
You have probably heard that Ontario tenants pay more than their fair share of property
taxes. The Federation of Metro Tenants Associations estimates that about 1/3 of tenants
rents go to pay property tax.
Few tenants know exactly how much property tax they pay because they never get a tax
bill or notification. This information goes to their landlords, only. But you can find out the
property tax for your unit by contacting your municipality.
Who to Contact
Call the finance department of your municipal government.
What to Ask for
For East York: 778-2110
To calculate your property tax, you need two figures: the assessed value of your unit and
the mill rate (or tax rate) for the municipality where you live, There is a different mill rate
for public school supporters and separate school supporters. Make sure you get the
appropriate rate.
Assessed value for a unit rarely changes from year to year. If it does, you will get a
notice in your mail from the provincial government with your new assessed value for your
unit. Mill rates do change annually. The 1993 mill rate will be set by the middle of May.
How to Calculate Your Tax
Multiply the assessed value for your unit and divide by 1000. Example for Toronto:
Assessed value Mill Rate
$4,300 x 441,83
= $1,899,869/1,000
= $1,899,87 tax
Why do we divide by 1,000? Because the mill rate is the tax per thousand of assessed
value. In the above example, the apartment was assessed at $4,300, Therefore, the tax
was $441.83 for each $1,000 assessed value: 441.83 x 4,30 (thousand) = $1.899,87,
What if they wont give me information by phone?
Complain, Let your councillor know that we
units through our rents should be entitled
paying.
Then go down to 850 Coxwell Avenue
- the tenants who pay the tax bills on our
to information about the amounts we are
Ask to see the Assessment Roil for your building. It will have the assessed value for
each unit. Then you can multiply this by the mill rate to find out the hidden taxes you are
paying.
Produced by the Federation of Metro Tenants Associations May, 1993
Tenants and Property Tax #4
How are property taxes calculated?
Every year municipalities must budget how much revenue they need to provide municipal
services and meet education needs. Some of this revenue is raised through property
taxes. The tax is based on the assessed value of the property.
Municipalities calculate how many dollars of every $1000 of assessed value they have
to collect to meet their needs. This amount becomes the mill rate (tax rate), and every
property is taxed at this rate. Metro Torontos mill rate is 456; that is, $456 for
$1000 of assessed value.
assessed value of property/$1000 x mill rate = annual property
(in Metro, based on (set annually (paid by you)
1940s market value) by each city)
Why is the mill rate so high?
each
tax
This tax rate is very high because assessed values in Metro have not increased in 40
years, In the 40s and 50s, the assessed value of a property was the same as the
market value (what a property will sell for). But municipalities found it difficult to
constantly reassess properties and keep up with rising market values. For example,
when Metro did its last assessment in 1954, it was based on 1940s market values.
During the seventies, the province planned to carry out a provincewide reassessment
as a first step in establishing a uniform assessment system for Ontario. Unfortunately this
reassessment did not happen, so current assessed values are still equal to the properties
1940 market values, Instead, the mill rate must be raised each year to cover rising costs,
Is this way of calculating property tax fair to tenants?
No. Tenants today pay more than their fair share. Property taxes are supposed to be
based on the market value of the property. Yet many tenants living in small apartments
pay more property tax (through rents) than homeowners in larger, more valuable houses.
Why? Because the out-of date assessments no longer reflect the market value for Metro
properties. At one time, a single family home and an apartment unit (in a building with
7+ units) which were worth the same were taxed the same; simple and fair. But since
the 1940s, the market values of houses have increased much more than the value of
apartments - about 4 times as much.
So the single family home in our example, that used to be worth the same as the
apartment, is now worth four times as much. But because assessments havent been
updated, the house will be taxed the same as the apartment unit.
(see over)
Produced by the Federation of Metro Tenants Associations May, 1993
How can we make the current system fairer?
As long as property tax is based on the value of property, fairness demands that people
with more valuable property should pay higher municipal tax than people with less
valuable property. If home owners have enjoyed large increases in the value of their
properties, they should assume their true share of the tax burden. The only way to make
this will happen is if the government
a) reassesses all properties in Metro (which will relink assessed
values to market
values), and,
b) requires that the same tax rules apply to rental and non-rental residential property.
Isnt that what the MVA plan was all about?
Not really. The Market Value Assessment Plan would have determined the 1988 market
values of all properties. But it would not have created a fair tax system based directly on
these values. Instead, it would have entrenched the unfairness that already exists in the
current system.
Heres how. As we have seen, assessed values are now only a small fraction of todays
market values. The assessments for tenants homes are about 4% to 11% of their 1988
market value, while singlefamily homes are assessed at 1%3% of their worth,
MVA would have equalized these assessments. How? [t would have averaged out the
assessment range for apartments to 8%, and for single-family homes to 2%. These
average figures would then become official assessment levels for those classes of
property,
All single-family homes would then be re-assessed at 2% of their 1988 market value and
apartments (buildings with 7+ units) at 8% of their 1988 market value. For example
market value level of assessment assessed value
house $170, 000 x 2% = $3,400
apar t ment $50, 000 x 8 % = $4, 000
This home owner would pay taxes on a lower assessed value than the tenant, even
though the house was far more valuable.
Equalizing within each class of property is not the answer, It only treats homeowners
preferentially and officially entrenches the historical unfairness of our present tax system.
There must be equalization across the classes. Why should tenants be taxed on a higher
proportion of the value of their unit than are homeowners?
What must be done to make MVA fairer to tenants?
If Metro moves to MVA, tenants must demand that all classes of residential housing have
the same level of assessment applied to them. This is how condominium and co-op
units are assessed. Tenants should pay their fair share of taxes - but no more!
Market Value Assessment
Market value assessment would not have improved the situation for tenants. MVA
would have determined the 1988 market value of all properties, but it would not
have created a fair tax system based directly on these values. Instead, it would
have entrenched the unfairness that already exists in the current system.
Heres how. We have seen that under the current tax system, tenants homes are
assessed at anywhere from 4% to 11% of their market value, while single-family
homes are assessed at 1-3% of their market value. MVA would have taken the
average of the range for apartments (8%) and the average of the range for single-
family homes (2%) and made them into official assessment levels for those
classes of property. For example,
level of
market value assessment assessed value
Apartment $50,000 x 8% = $4,000
House $170,000
x 2% = $3,400
These different assessment levels for different kinds of housing arose because of
market forces and out-dated assessments, MVA would have made them a fixed
and official part of our tax system,
MVA was supposed to equalize taxes, but this equalization would only have
happened within each class of property. All single-family homes would be re-
assessed at 2% of their current worth, and all apartments (in 7+ unit buildings) at
8% of their current worth.
But there would have been no equalization across the classes. Why should tenants
be taxed on a higher proportion of the value of their unit than homeowners are?
Would you support a MVA system that equalized the level of assessment for
all residential properties, so that the homes of both homeowners and tenants
were assessed at the same percentage of their market values?
Current Tax System
We understand that every year municipalities must budget for the revenue they
need to provide municipal services and meet education needs. Some of this
revenue is raised through property taxes, which are based on the assessed value
of the property.
In the 1940s and 1950s, the assessed value of the property was the same as the
market value, that is, what a property will sell for on the market today. But
municipalities did not keep up with rising market values through regular
reassessments.
In Metro Toronto, the last re-assessment was done in 1954. It was based on
1940s market values, As all assessments in Metro are now frozen, the current
assessed values are still equal to the 1940 market values of these properties.
Incredible but true: the assessed value of every unit and home in Metro is roughly
equal to the market value that property had (or would have had) in 1940,
This is true even for a home or apartment unit which was not built in 1940. Heres
how the new home is assessed in 1940 terms. First, the new homes current worth
or market value is determined, so that the new home can be compared to similar
types of homes in the area that have the same market value. These other homes
(the comparison group) will already have been assessed at 1940 values. The new
home is then given an assessed value in line with the assessed values of these
similar homes.
Property taxes are supposed to be based on the market value of the property; those
people with more valuable property should be paying higher municipal tax than
people with less valuable property. But our out-of-date assessments no longer
reflect the present market values for Metro properties. Since the 1940s, the market
values of houses have increased much more than the value of apartments - about
4 times as much.
It is because of these two things -
1. assessments being out-of-date and frozen at 1940 figures, and
2. market values for houses increasing since the 1950s nearly 4 x faster than
the market values of apartment buildings (due to market forces),
that tenants pay more than their fair share of tax. Heres how the unfairness has
worked its way into our tax system and our tax bills.
In the 1950s, a single-family home and an apartment unit which were worth the
same were taxed the same; simple and fair. But now, the single family home that
used to be worth the same as the apartment is worth four times as much. But
because everyones taxes are based on the assessed value, and because the
assessed values havent changed in 40 years, the house is still taxed the same as
the apartment unit.
The result for tenants? We are taxed on (in buildings with 7+ units) assessed
values that are about 4-11% of the present worth or market value of our unit. But
homeowners are taxed on assessed values that are just 1 -3% of the current
market value of their property,
A comparison of 3 actual properties - a single family home, a condo and an
apartment will show just how unfairly tenants are treated,
A three storey completely renovated Riverdale house with a front and back yard
and parking is charged $1,200 in property tax.
A 2 bedroom condo unit in a 1970s downtown highrise with a view of the lake and
an indoor pool/sanua/exercise area is charged $1,405 in property tax.
A one bedroom apartment in a 1950s downtown highrise with no view and no
amenites is charged $1,788 in property tax.
This system treats tenants unfairly. Many tenants living in small apartments pay
more property tax (through their rents) than homeowners in larger, more valuable
houses.
Would you support a total reassessment of all properties in Metro, so that all
properties would be taxed on their real market value?
To make matters worse, most tenants dont even realize how unfair the current tax
system is. Why? Because the tax is hidden. Tenants dont get a bill for property
tax. No one tells us when the tax goes up. But while landlords are the ones who
write out the cheques for property tax, we tenants are the ones who pay the bill
as part of our monthly rent,
And its a large bill. About 30% of most tenants monthly rent cheque goes to pay
property tax. If we are paying $650.00 a month in rent, we are paying about
$2300.00 in property tax each year.
Would you bring before council a recommendation that tenants should receive
a notice of the assessment on their unit?
Results of FMTA
Municipal Lobby Day - 1993
Blank spaces indicate that
politician did not respond.
1
FEDERATION OF METRO TENANTS ASSOCIATIONS
SUBMISSION TO THE FAIR TAX COMMISSION
L Our property tax system: historical accident, deliberate inequity
At one time, a propertys assessed value was equal to the market value of that property.
Our property taxes are based on this assessed value. However, the assessed values of
property were frozen throughout the province for many years. In some places, Metro
Toronto for example, the assessed values have not changed in 40 years. Of course,
these out-dated assessed values have gradually become only a small fraction of the
properties current market values. The inequity here results from the fact that market
values for homes have increased much more dramatically than market values of rental
residential properties.
Lets take an example. If a home and an apartment in Metro Toronto were both worth
$4,000 in 1950, their assessed values were the same and so were their tax bills. Forty
years later, that same home is now worth about $200,000, while the apartments value
has only increased to about $50,000. Why? Because in Metro, houses have increased
in worth 4 times faster than rental residential properties have.
But, because the assessed values of these properties have not changed, they still pay
exactly the same tax bill.
In other words, homeowners in Metro pay tax based on an assessed value that ranges
from 1% to 3% of the current market value of their homes, while tenants in buildings with
more than 6 units pay tax on an assessed value that ranges from 4-11% of the current
market value of their apartments.
The inequity here is clear. Our property tax system is based on the premise that those
whose property is worth more should pay more in taxes, but the system is not functioning
according to the rules and principles in which it is grounded, This inequity exists
throughout the province. While the exact percentages vary from place to place,
homeowners generally are assessed at a lower proportion of the market value of their
homes than are tenants.
And market value assessment schemes, which have been put in place in most parts of
the province, do nothing to address this inequity. They do not equalize assessment
levels so that all residential properties are assessed at the same level (or percentage) of
market value.
Instead, these schemes only equalize the range of current assessment Ievels within each
class of residential property. For example, MVA equalization in Metro would mean that
all homes would be assessed at 2% (the average of 1 3%) of their market value, while
1
all apartments in buildings with more than 6 units would be assessed at 8% of their
market value. This would be the legislated average of the 4-11% range.
Although the only explanation for these assessment levels is the historical accident of
frozen assessments and specific market trends in different areas of Metro, MVA makes
these levels the basis of the tax system itself.
Wherever it has been put in place
throughout the province, the MVA system has deliberately entrenched and built on these
very disparities.
While there is no social policy to rationalize this unfairness to tenants, the province and
the municipalities have nonetheless seen fit to preserve the status quo. Perhaps they do
so because overtaxed tenants, silent and unknowing, have provided such a lucrative tax
base. No level of government even thought to inform tenants that they paid taxes.
Quite the opposite. Tenants have been told for years that they didnt pay taxes, that they
had no right to belong to ratepayers associations, that they had no right to make
demands of council because they contributed nothing to the municipal coffers.
Perhaps the province has been fearful that those who historically have benefited under
this property tax system will not willingly shoulder their fair share of the tax burden.
But there is absolutely no justification for preserving a system that burdens tenants with
much more than their fair share of the tax bill. When we look at who comprises the
tenant population, we see that almost all low and low-middle income people are tenants.
The average tenant income is at least $10,000 below the average homeowner income.
It must surely be embarrassing to all politicians and bureaucrats that it is these low-
income people whose modest homes are assessed at a level which, in many places such
as Metro, is 4 times higher than that used for houses and condominiums.
Tenants pay so much tax that it accounts for between 3 and 4 months rent per year. It
has been estimated that if the assessment levels in Metro were equalized, the rents of
tenants in Metro would be reduced by over $300 million dollars.
Lower-income people, who generally spend all that they earn, would be able to spend
more in the public market place if their housing costs were reduced. The ripple effects
of this savings to tenants might be substantial.
Recommendation s:
Apparently, the councillors of the Regional Municipality of Ottawa-Carlton were sufficiently
embarrassed to actually do something about this shameful situation. They decided to
respond to the FTC report and struck a committee to develop some recommendations.
On June 23, 1993 the Council passed the following recommendation to the FTC:
2
All residential properties,
including single family, condominium and rental
residential properties should be assessed at the same fair and consistent values.
Where necessary, transition measures should be implemented to accommodate
shifts in assessment as a result of this recommendation.
We demand that the province act immediately to implement this recommendation
tenants are taxed at the same level as homeowners.
Il. What do tenants get for the taxes we pay?
so that
Not only do tenants pay a disproportionate amount of tax, we also get much less for it.
First and foremost, tenants dont get a tax bill. They dont get a sense of how much they
are contributing to the operation of their neighborhood and city. Lets take an analogy:
imagine a restaurant where one group of people get to sit at the best tables, the best
service in the most comfortable surroundings, and are given a menu to read with all the
prices clearly marked. Other people are placed at small crowded tables in dark corners,
and if they even get a menu, their menu has no prices. They receive very poor service.
The irony here is that those people who are pampered actually pay much less for the
same food; alternatively, they get much more for the same price.
In many cities, tenants also dont get any notice of applications for minor variances or
site-specific rezoning. In other words, they dont have an opportunity to participate in
the process of deciding what is best for their neighborhood. Tenants live in the
community, they pay taxes, they are now allowed to vote, but they are still essentially
invisible and their voices are not heard or welcomed.
One of the services that is very important to tenants is inspections by property standards
department officials. Tenants rely on these inspectors to help them enforce their right to
a wellmaintained home that is healthy and safe. All too often, inspectors are reluctant
to make an inspection and/or to enforce the citys by-laws. Without this support from
the city, tenants find it very difficult to pursue their rights, take court action, and force the
landlord to comply.
What else dont tenants get? They dont get the same level of services with respect to
policing, garbage removal, or infrastructure maintenance. Considering that an apartment
building is much like a vertical community, it is clear that the police and the garbage
workers, the hydro and sewage workers must do much more to maintain and protect a
suburban subdivision of 300 homes, than they must do to service a building with 300
units.
These economies of scale associated with high-rising housing, e housing in which most
3
tenants live, save municipalities huge amounts of money.
I he Infrastructure-installation
costs for a vertical community are much less than for a subdivision suffering from urban
sprawl.
In addition, in high-rises, the landlord is responsible for many things (e.g., installing
sewage lines, garbage removal), and frequently provides many facilities (e.g., swimming
pools, parks) which further reduce the costs of the municipalities with respect to providing
basic services/facilities costs to their tenant population.
Recommendations
.
.
.
We demand that tenants get a notice of the tax bill for their unit. We want tenants to be
notified of all the meetings that are being held to decide the future of their community.
We want inspectors to do their jobs and enforce the standards set by their city to ensure
that everyone lives in adequate accommodation.
Ill. Passing on the savings to tenants
In December 1992 when the province introduced Bill 91, the legislation to enact MVA in
Metro Toronto, it contained amendments to the Rent Control Act which concerned us.
Under the RCA the province was to assist tenants in securing any rent reductions they
might be entitled to as a result of reductions of their landlords tax bill. The province was
to record all tax reductions in the Rent Registry, calculate the appropriate rent reduction,
and notify tenants of this reduction and their new, lower maximum rent.
The December, 1992 amendment specified that the province would not assume financial
responsibility for any of this process. If a municipality was not prepared to foot the bill,
tenants simply would not know that changes to the tax system might benefit them,
This was the position of the same government who wanted to ensure that tenants were
protected from the decimating effects of high rents, to empower tenants by informing
them of their rights: no lower rents, no information to tenants.
While the government said it could not afford the cost of such a process, it admitted that
if each tenants who was entitled to a reduction actually made an application under the
RCA for their rebate, processing these applications would cost the government about
twice the amount involved in automatically notifying tenants. IN other words, the province
was cynically relying on tenants not to enforce their rights under the law, as the financial
basis and rationale for their decision.
R e c o m m e n d -
.
.
.
We demand that any tax savings experienced by a landlord, whether it is an actual
4
reduction in their tax bill or a tax increase which is less than the percentage figured into
the annual guideline rent increase, must be passed directly on to the tenant. Tenants
should not have to pay the same rent when the landlords costs have gone down.
Tenants should not have to pay a full guideline increase when their landlords own costs
are less than the provincial average, especially as tenants always have to pay more than
the full guideline increase whenever their landlords costs are more than the provincial
average.
5
#1 Fairness in Taxation
Taxes are the price we pay for a civilized society.
Property taxes work for us
For 200 years in Ontario, there have been taxes on all kinds of property, from businesses
to factories to the bungalow down the street. Tenants are also property taxpayers, but
unlike other taxpayers, tenants dont get a municipal property tax bill. Instead, our
landlords receive the bill, and we pay it, through our rents.
The taxes we pay make our cities what they are.
We have good roads, safe streets
patrolled by police, an education system that offers us a chance at a better life, and
infrastructures that provide us with electrical, water and sewage services. We pay for
municipal governments that plan and preserve our cities.
Looking for fairness
As property taxpayers, tenants have the right to a tax system that works fairly for
everyone. Tenants are prepared to contribute their fair share towards the smooth
working of our communities. But what does fair share mean?
The Ontario Fair Tax Commission was created by the provincial government to study
taxation in the province, and to make recommendations for increasing fairness in our tax
systems, including the municipal tax system. The Commission published a Report
recommending several municipal tax reforms which would lead to greater tax fairness.
The Federation of Metro Tenants Associations is considering the Commissions
recommendations and has endorsed a number of them. In developing our policies, the
Federation needs to look at the principles that underlie fair taxation systems.
The Commission points out that common-sense notions of general fairness in taxation
are based on one of two principles: the ability to pay principle or the benefits received
for taxes paid principle,
1. "The ability to pay principle of fairness
This principle holds that it is fair to relate the taxes a person pays to their income. As
people earn more, they should pay an increasing percentage of their income towards
taxes. People with higher incomes are able to contribute more without suffering
financially. This principle also underlies our belief that those who earn the same, should
be taxed the same.
Our provincial and federal income tax systems are based on this progressive taxation
principle. It makes sense to use progressive taxation to pay for services which everyone
is entitled to use and which have broad social and economic benefits, such as the costs
of government, the justice system, education and social assistance. We dont distinguish
between those who may actually use some of these services directly and those who
enjoy the farreaching, spillover advantages of living in a just, educated and well
governed society.
Produced by the Federation of Metro Tenants Associations Sept.94 921-9494
Education/ Social Services -
How we pay for them
Currently, education and social assistance are financed through our municipal property
tax system. The Fair Tax Commission calls the municipal property tax system
regressive, because it has the opposite effect of a system based on ability to pay: as
we go down the income ladder, we find that people are paying an increasing percentage
of their income towards municipal taxes. While property taxes are not designed to have
this effect, census data clearly reveals this pattern.
This is unfair. Those who most benefit from education and social services, should not
bear the greatest tax burden for these services. As everyone is entitled to these services,
which are intended to distribute resources and opportunities more fairly across economic
classes, it is important that they be funded through taxes collected on the basis of an
ability to pay.
RECOMMENDATION OF THE FAIR TAX COMMISSION
THAT education and social assistance be funded through a progressive tax such
an the provincial income tax.
There is another strong reason for removing funding for education from the municipal tax
base. As education accounts for 53% of municipal taxes, municipal tax bills will plummet
with this reform. When this happens, and everyone is experiencing great tax savings, we
believe tenants will have a once-in-a-lifetime opportunity to press for another much-
needed reform. This second reform involves correcting a serious imbalance in how
tenants and homeowners are taxed (see Historical Inequalities). It would result in
homeowners picking up a much larger share of the municipal tax bill. It makes sense to
carry out these reforms together, so that shifting some of the tax burden to homeowners
will be less painful, as they can still expect their tax bill to be reduced by nearly 50%.
2. Benefits received principle of fairness
In other circumstances, it makes sense to test for fairness by looking at the specific
benefits which people receive for the taxes they pay, When we can estimate the amount
of service each household receives, this value for our money approach is useful.
Sometimes it is easy to measure exactly the services used by a household, such as
garbage collection and water use. By charging a user fee, people pay only for the
resources they use, or the work they create for the garbage collectors.
User fees often are designed to encourage people to limit their use of services.
Communities which want to reduce the careless overuse of resources, can discourage
wasteful kinds of behaviour by making people pay for it. User fees create an incentive
to people to exercise control over their consumption. The principle of fairness and the
method of taxation we use should be suitable to the kinds of services being funded,
RECOMMENDATION OF THE FAIR TAX COMMISSION
THAT user fees be applied to water, sewer and garbage (solid waste) services,
based on levels of consumption as well as the costs of providing the services.
#2 Historical Inequalities: Tenants are taxed unfairly
Tenants pay large amounts of property tax. Every year, three to four of our monthly rent
cheques are passed on by our landlords to the city, to cover the taxes on our unit. Most
Metro tenants pay well over $2,000 per year in tax.
The Fair Tax Commission concluded that tenants are overtaxed compared to single-
family homes. This overtaxing occurs because our municipal property tax system treats
tenants unfairly; our taxes are calculated differently than the taxes paid by homeowners,
condominium owners, or coop members. Lets look at the two important factors which
have created this inequality: frozen assessed values and spiraling market values.
Frozen assessed values
Property taxes are based on the assessed value of the property. This value is set by
an assessor. In 1953, assessed values were roughly equal to the 1940 market values of
the properties, that is, what the properties would have sold for in 1940:
1953 assessed values = 1940 market values
Incredible as it may seem, these 1953 assessments of Metro properties have not been
updated, They remain frozen, while debates rage about how to create a fair tax system.
Re-assessments of renovated buildings, or an assessment of a new building does not
result in these buildings getting assessed values equal to their current market values.
Instead, they are given assessed values roughly equal to the assessment they would
have been given in 1953, had they existed, or been in their current condition at that time.
so,
1994 assessed values = 1953 assessed values
Increasing market values
Along with frozen assessed values, the other important factor is that the market values
of all buildings have increased tremendously since 1953, but at different rates. In
particular, real estate trends have pushed up the market values of single-family homes
five times faster than the market values of multi-residential buildings.
The frozen assessed values for single-family homes now represent a very small portion
(about 2%) of the homes current market value, But the frozen assessed values of
apartments have not fallen quite so far behind the apartments market values. They equal
about 10% of the apartments worth,
Assessment levels
The problem is that we are taxed on the assessed value of our homes. So, homeowners
are taxed on a very small portion (2%) of their homes real worth, while tenants in larger
rental buildings are taxed on a much larger percentage (10%) of their homes market
value. These shifting relationships between frozen assessed values and current market
values are called assessment levels.
Produced by the Federation of Metro Tenants Associations Sept.94 921-9494
The resulting inequity to tenants, although not deliberate, is made worse by the fact that
cities must keep each buildings outdated assessment in line with assessments of other
similar buildings in the neighborhood. This creates classes of similar properties that
are similarly assessed, but widens the gap between the different classes.
The chart below shows these assessments levels, based on 1992 estimated market
values.
CLASS O 1 2
1-7 Units
.
3-6 Units
.
7+ Units
.
East York 2.27% 4.14% 10.28%
Etobicoke 2.71 % 4.5 % 10.73%
North York 2.62% 5.4 % 9.91%
Scarborough 2.84% 3.65% 9. 4%
Toronto 1.96% 2.9 % 9.71 %
York 2.41% 3.94% 10.09%
For example, the assessment for an East York unit in a large building (Class 2) is now
10.28% of its market value, but a single-family home (Class O) is assessed at just 2.27%
of its worth. If both properties were worth $100,000 in 1992, heres how theyd be taxed:
market value assessment level assessed value tax
house $100,000 2.27% $2,000 $ 900
apartment $100,000 10.28% $10,000 $4,500
As the assessed value of the apartment is 5 times the homes assessment, the tenant in
the apartment will pay 5 times as much in tax as the homeowner.
Another example: A single family home worth the same as an apartment unit in 1953,
is now worth nearly five times as much as the apartment. However, because
assessments havent been updated, the house is taxed the same as the apartment unit,
just as in 1953,
assessed values market values taxes
53 93 53 93 53 93
house $4,000 $4,000 $4,000 $200,000
$50 $900
apartment $4,000 $4,000 $4,000 $40,000 $50 $900
Fairness in property taxation
What is wrong with this picture? Property taxes are supposed to be based on the market
value of the property. Fairness demands that those with more valuable property pay
more tax than those whose properties are less valuable, and that those whose homes are
worth the same should pay the same tax. Instead, out-dated assessments do not reflect
the properties current market values, and so the properties cannot be not taxed fairly
relative to each other. While this inequity is an historical accident, a result of frozen
assessments and spiraling market values, Metro cities have made no move towards
treating tenants fairly.
RECOMMENDATION OF THE FAIR TAX COMMISSION
THAT all residential property be assessed on the same basis whether the property
is occupied by an owner or a tenant.
#3 Questions
If the assessments that our taxes
about taxes
are based on have been frozen,
how does the city manage to increase our tax bill every year?
Every year, the city decides how much money it must collect through property taxes to
meet its budget costs and provide all the services people want and are entitled to. As
property taxes are based on the assessed values of properties, the city totals all the
assessments within its borders. It then calculates the amount of tax it needs to collect
for each $1,000 of assessed value,
This amount of tax the city collects on each $1,000 of a propertys assessed value is
called the tax rate or mill rate. It is applied to every residential property.
Take for example, a mill rate of 450 applied to a property assessed at $5,000. The city
will collect $450 in taxes for every $1000 of the propertys assessment:
$5,000 = 5 X 450= $2250
$1,000
As the cost of providing all the services to which people are entitled increases over the
years, so does the mill rate. Here are the 1994 mill rates (for public and separate school
boards) for all the cities in Metro.
public separate
East York 460,55 462.66
Etobicoke 425.50 429.55
North York 428.34 432.14
public separate
Scarborough 442.64 444.75
Toronto 453.22 452.68
York 479.79 482,44
Weve heard for years about Market Value Assessment (MVA). Would
this create a fairer tax system for tenants?
MVA has not yet come to Metro Toronto. However, in areas of the province which have
adopted MVA, MVA has not abolished the historical unfairness of assessing tenants
homes at rates that are up to 5 times the rate used for single-family homes.
Despite its name, MVA does not mean that buildings are taxed based on their real market
value. Instead, MVA schemes simply average out inequalities within each residential
property class. Every home will then be assessed at the same percentage of its market
value, and every tenant in a multiresidential building will have their taxes calculated
according to the same formula used for every other tenant,
The result is equity within classes, but the inequitable differences between residential
classes remains untouched, In fact, MVA further entrenches the unfairness that already
exists in our current system. Tenants want equalized assessment across all residential
classes, so that all residential properties are taxed based on the same formula.
Produced by the Federation of Metro Tenants Associations Sept.94 921-9494
While this could be accomplished by simply taxing buildings on their real market value,
there are a number of other assessment methods (such as unit assessment) which also
apply a single assessment formula to all residential properties. Besides ensuring that
tenants are not overtaxed, such tax systems might also be generally fairer, as they may
be more understandable and appear more reasonable and stable. FMTA is reviewing
these systems to see which most benefits tenants.
If Metro assessed all residential buildings at the same rate, would
there be reductions in rent? And how would they be passed on to
tenants?
The provincial Rent Control Act already contains a procedure for automatically reducing
tenants rents when taxes are reduced. First, the municipality requests the provincial Rent
Registry to calculate the appropriate rent reduction. The Registry keeps computerized
public records of the maximum legal rents for all rental units in buildings with more than
3 units. It makes sense to use a system which is already in place and which has the
responsibility and the mandate to calculate and record legal rents and any changes to
them that can be justified and approved under the provisions of the Rent Control Act.
The reduced rent is then recorded in the Registry and the municipality sends out
notifications to tenants that their rents have been reduced.
This mechanism would be simple and expeditious. However, when MVA was being
considered, the province introduced amendments to this procedure. The amendments
stated that the province would not assume any financial responsibility for this automatic
pass-through of savings to tenants. Instead, it demanded that Metro Toronto pay all
administrative costs. As MVA died, this amendment was never enacted.
However, this amendment revealed a great deal of political cynicism. The government
knew that the only option for tenants was to make individual applications to get their rents
reduced. The province would have had to process these applications, and if all eligible
tenants had applied, the cost of processing these applications would have been much
higher than for passing-through automatic rent reductions. However, the province was
banking on the likelihood that most tenants would not apply and not receive the reduction
to which they were entitled,
The Federation believes the province should implement the mechanism they have already
legislated, and carry out the intent of their own rent control legislation - to keep rents
affordable and pass on to tenants all the savings to which they are entitled.
RECOMMENDATION OF THE FAIR TAX COMMISSION
THAT a system be created for passing on to tenants in the form of rent reductions
any savings in property taxes that result from tax reform, to be put in place at the
time reforms are made.
Produced by the Federation of Metro Tenants Associations Sept.94 921-9494
#4 No taxation without notification!
The phrase No taxation without representation was the battle-cry that triggered the
American revolution. Representatives must be accountable to us, and this means there
needs to be good communication.
We have to be able to talk to our councillors about
our concerns, and they have to let us know what the city is doing for us, and to us.
The problem is that many city councillors dont think of tenants as taxpayers or
ratepayers, even though we pay more than our fair share of their municipalitys tax bill,
and often make up 50% of their constituency. As a result, many councillors dont
represent our interests, and dont think we need to be informed about what is happening
at City Hall.
[n fact, tenants are not even notified of the tax contribution they make through their rents.
Only the landlord/owner gets a copy of the tax bill. Tenants can do their own calculation
of the taxes they pay, but the information needed to make this calculation will not be
given to tenants over the telephone. We must make a trip to our City Hall, during
business hours. Owners, on the other hand, can get the information from a phone call.
The right to be heard
There is something wrong with this picture. As taxpayers, tenants have the right to know
first, that we are paying taxes, and how much we are being taxed. We need to know
know that we are ratepayers like homeowners, and that our contribution gives us a
stake in the community and a right to have our interests represented.
We believe that tenants who are informed they are paying to keep city programs working,
will want to have a say in setting city priorities, and policies. We will want to make our tax
dollars work for us.
Cities claim it is expensive to notify all tenants in high-rise buildings. However, cities
send out tax bills to the many thousands of highrise condominium owners, plus a
separate tax bill for the condominium common area to the condo corporation. The Fair
Tax Commission says that public openness and the opportunity for public learning is an
important aspect of fairness, Isnt it only fair that some of our tax dollars be directed
towards informing all tenants that we have the right to be heard, just like homeowners?
Three cities support notification in principle
The cities of Scarborough, Toronto, and York have agreed, in principle, that notification
of tenants is an important step towards making the tax system fairer, and municipal
government more democratic. We need to work with them to ensure that their principles
are put into practice.
RECOMMENDATION OF THE FAIR TAX COMMISSION
THAT tenants be notified by the city through property tax notices of the taxes they
are paying through their rents.
Produced by the Federation of Metro Tenants Associations Sept.94 921-9494
#5 What do local governments do with our tax dollars?
The municipal taxes Metro tenants pay through their rents pay for three services from the
three levels of government in Metro:
1. Services provided by your city government to the residents of your city.
2. Services provided by the Metropolitan Toronto government to all of Metro.
3. Education services provided through your local school board to your city.
The six municipalities or cities in Metro Toronto (East York, Etobicoke, North York,
Scarborough, Toronto and York) each have their own City Council. As well, Metro
councillors are elected from large Metro wards to sit on Metro Council. School boards
for each city are also elected to administer the education budget. The funds needed by
school boards are collected through our municipal property taxes.
The city and Metro governments make decisions about many things that affect our daily
lives as tenants. This November, tenants have a chance to vote for a City councillor and
a Metro councillor to work for them at City Council and at Metro Council.
City government
City governments set housing standards to make our homes safe, healthy and well-
maintained. These standards are particularly important to tenants, for without inspections
and city work orders, it is very difficult for tenants to put pressure their landlords to do
the maintenance and repair work for which all landlords are responsible.
Unfortunately, many cities currently do not hire enough inspectors to meet the demand,
and some cities now refuse to make any residential health or property standards
inspections, As our taxes contribute a good chunk to the city coffers, we should demand
that safe and healthy environments be made a priority and that tenants tax dollars be put
towards city inspections and the enforcement of local housing requirements.
City governments are also responsible for fire protection, public health, electric utilities,
and the collection of taxes. With Metro, they share responsibilities for parks and roads,
sewage disposal and water supply, as well as planning policies,
Metro government
Metro government is responsible for public transportation and police and ambulance
services. The reason we are lobbying Metro is that Metro is the level of government
responsible for amending and reforming the current municipal tax system.
Tenants save their cities money
Hundreds of thousands of tenants in Metro live in high-rise buildings, a form of housing
which is much cheaper to service. Higher densities mean that many more people per
square mile benefit from (and pay for) infrastructures such as sewers, water lines and
roads. As well as these economies of scale, landlords of multi-residential complexes
often assume responsibility for garbage disposal and snow removal, sparing the city the
expense of providing these services to thousands of tenants,
As cost-effective
consumers, our taxes should be less, not more than those who add to urban sprawl.
Produced by the Federation of Metro Tenants Associations Sept.94 921-9494
QUESTIONS FOR COUNCILLORS
1. Education and Social Services -
How we pay for them
Our provincial and federal income tax systems are, based on the ability to pay principle
of fairness. This principle holds that as people earn more, they should pay an increasing
percentage of their income towards taxes. It makes sense to use progressive taxation
to pay for services which everyone is entitled to use and which have broad social and
economic benefits, such as the costs of government, the justice system, education and
social assistance. We dont distinguish between those who may actually use some of
these services directly and those who enjoy the far-reaching, spillover advantages of
living in a just, educated and well-governed society.
However, education and social assistance are financed through our municipal property
tax system. The Fair Tax Commission calls the municipal property tax system
regressive, because it has the opposite effect of a system based on ability to pay: as
we go down the income ladder, we find that people are paying an increasing percentage
of their income towards municipal taxes.
This is unfair. As everyone is entitled to these services, which are intended to distribute
resources and opportunities more fairly across economic classes, it is important that they
be funded through taxes collected on the basis of an ability to pay.
The Fair Commission recommends that education and social assistance be funded
through a progressive tax such an the provincial income tax.
There is another strong reason for removing funding for education from the municipal tax
base. As education accounts for 53% of municipal taxes, municipal tax bills will plummet
with this reform. When this happens, and everyone is experiencing great tax savings, we
believe tenants will have a once-in-a-lifetime opportunity to press for another much-
needed reform. This second reform involves correcting a serious imbalance in how
tenants and homeowners are taxed. It would result in homeowners picking up a much
larger share of the municipal tax bill. It makes sense to carry out these reforms together,
so that shifting some of the tax burden to homeowners will be less painful as their tax bill
will still be reduced by nearly 50%.
Will you support a proposal to have education and social services
financed through a progressive tax such as the provincial income tax
system?
2. Historical inequalities: tenants are taxed unfairly.
Tenants pay property tax through their rents.
Every year, 3 to 4 monthly rent cheques
go towards the landlords tax bill. This amount is not only large, it is also unfair. Many
tenants living in small apartments pay more property tax than homeowners in larger, more
valuable houses. On average, tenants in Metro Toronto buildings with more than 6 units
pay taxes based on a level of assessment that is nearly 5 times that applied to single-
family homes and homeowners.
How has this unfairness worked its way into our tax system and our tax bills?
Property taxes are suppose to be based on the market value of the property; those
people with more valuable property should be paying higher municipal tax than people
with less valuable property. In the 1950s, a single-family home and an apartment unit
which were worth the same were taxed the same; simple and fair.
Since the 1950s, the market values of houses have increased much faster than the value
of apartments about 5 times as fast. Now, the single family home that used to be worth
the same as the apartment is worth 5 times as much.
However, our taxes are still based on assessments that havent changed in 40 years. So,
the house in our example is still taxed the same amount as the apartment unit, even
though its value is 5 times greater. Clearly, the out-of-date assessments from the 1940s
no longer fairly reflect the present market values of Metro properties.
Market Value Assessment (MVA) would not put an end to this unfairness. In fact, it would
deliberately build these unequal assessment levels for homeowners and tenants into the
tax system. making tenants carry a disproportionate share of the tax burden.
A comparison of 3 actual properties, a single family home, a condo and an apartment
show how unfairly tenants are treated under our present system.
a. A three storey completely renovated Riverdale with a front and back yard and
parking is charged $1 ,200 in property tax per year.
b. A two bedroom condo unit in a 1970s downtown highrise with a view of the lake
and an indoor pool/sauna/exercise area is charged $1,405 in property tax.
c. A one bedroom rental apartment in a 1950s downtown highrise with no view and
no amenities is charged $1,788 in property tax per year.
Will you support the equalization of levels of assessment across all
residential property classes to ensure tenants are not burdened
disproportionately with more than their fair share of the tax bill?
3. No tax reform without abolition of tenant overtaxation
Tax reform has been a long time coming to Metro Toronto. Tenants
recognize that it is extremely difficult, almost impossible, to, get significant
changes made to the tax system, particularly if it means shifting a portion
of the tax burden. We believe that once a new system is put in place, it
will be many years before any further tax reform is possible no matter
how inequitable the new system may be.
Therefore, tenants will not support any tax reform until and unless that
reform puts an end to the overtaxation of tenants. We know the current
system is badly in need of reform and indefensibly unfair to tenants.
Nonetheless, preserving the status quo continues to give us the
opportunity to put together a tax proposal that embodies the principles of
fairness and puts an end to the injustices done to tenants. We want your
commitment that you too will not settle for anything less.
Will you agree to refuse to support any new tax system that does not
redress the inequities tenants face?
4. Passing municipal tax savings through to tenants in the form of
rent reductions
Tenants pay taxes, but this payment is buried in their rents, and in the annual guidelines
increases of our rents. Even the guideline increase is calculated to cover inflationary
increases in landlords operating costs, including his municipal taxes. While it appears
easy enough to include landlords taxes in our rent, the question is - how do we get
these taxes out of the rent once tax reform happens and landlords are paying less tax?
The Fair Tax Commission said it never intended that tax reform should result in increased
profits for landlords. it is only fair that the landlords tax savings be passed on to the
tenants who have paid the bill all along.
There needs to be a system for automatically passing through these tax savings to
tenants as rent reductions. The Federation of Metro Tenants believes tenants should not
have to apply for a reduction which has already been made to the tax bill, Tenants
should not be required to go through a time consuming process to secure their reduction
when owners receive an immediate benefit. This is procedurally unfair.
A second point is that the administrative costs of processing applications from all eligible
tenants would far outweigh the costs of creating an automatic pass through system.
When MVA was being considered, the provincial government was prepared to force
tenants to make applications. It was banking on the likelihood that most tenants would
not actually apply, and would not enforce the rights to which they are entitled. The
government anticipated saving millions. Such a cynical approach is unacceptable.
FMTA suggests that Metro work with the province to take advantage of the Rent Registry
system which is designed to calculate and record changes to tenants maximum legal
rents.
The province in the past has refused to fully finance the creation of
an administrative body to pass automatic rent reductions through to
tenants resulting from tax reform. Would you support Metro
contributing to the funding for such a body?
5. The tenant role in tax reform
The Federation of Metro Tenants Associations is currently receiving
$13,600 from Metro Toronto to cover the costs of operating our Tenant
Hotline for 1 hour per day. Only the province currently funds us to carry
out organizing and law reform activities.
The Federation believes that throughout this debate on municipal tax
reform, tenant concerns have not received sufficient attention, particularly
when we consider that tenants comprise nearly 50% of Metros population.
As well, Metros submission to the Fair Tax Commission acknowledged,
Not all classes of property are assessed at the same percentage of
market value, and municipalities have been implicitly subsidizing some
types of property at the expense of others. [This] has resulted in multi-
residential rental properties being assessed at a higher percentage of their
market value than other property classes.
In light of the fact that tenants have been so unjustly overtaxed under the
current municipal tax system, we think it is of paramount importance for
tenants to be directly involved and consulted in the development of any tax
reform proposal.
Will you support funding a FMTA staff person to work on the tax
issue together with all local governments in order to develop an
equitable tax structure which treats tenants fairly?
- -
Yes
FEDERATION OF METRO TENANTS ASSOCIATIONS
Annual General Meeting, October 24, 1992
Property Tax Workshop Resolutions
The Federation of Metro Tenants Associations:
1. Does not support any Assessment Plan which fails to address
the inequities between the property taxes paid (through their
rents) by tenants in buildings of over 2 units and the property
taxes paid by homeowners.
M/S/C Leslie Robinson/Elinor Mahoney
2. Resolved that residential rental units ought to be assessed
and taxed on the same basis as all other residential units.
M/S/C/ Leslie Robinson/Barb Hurd
3. Resolved that all municipalities should send annual notices to
tenants informing tenants of the property taxes assessed against
their units and thus paid through their rents. Municipalities
should also send to tenants any notices designed to explain the
breakdown of property tax collection and expenditures.
M/S/C Leslie Robinson/Anna Thacker
4. Resolved that tenants as taxpayers have rights to services
from municipalities, and in particular ought to receive notices
of zoning changes and variances in their neighbourhoods.
M/S/C Leslie Robinson/Jim Henderson
Annual General Meeting, October 30, 1993
Fair Taxes
As the FMTA understands that tenants are not taxed fairly under
the current tax system, and that the system itself is
contradictory and unfair, the FMTA resolves that:
1)
We will lobby all municipalities in Metro to send tenants
notifications of taxes paid on their behalf by their landlord.
2) We will demand a more fair tax system with a more stable
assessment base than market value
3) We will lobby to have the tax burden for education and
social assistance shifted to more progressive taxes which are
related to an ability-to-pay.
4) We will lobby to have assessments across all residential
categories equalized.
5) We will develop a position on current municipal government
structures, and, the need for further revenue sources for
municipal governments.
The above was moved to present to the Board.
M/S/C Howard Brown/Ray Gallagher
The Federation of Metro Tenants
Associations (FMTA) is Canadas
oldest and largest tenants federation.
We provide help to Metro
tenants in the form of information on their rights as
individuals; as members of tenants associations; and as
citizens. We operate the Tenants Hotline, a telephone line that
provides tenants with information on immediate questions/problems
they may have on issues covered by specific pieces of
legislation: the Landlord and Tenant Act, the Rent Control Act,
the Residents Rights Act, the Rental Housing Protection Act, as
well as the Ontario Human Rights Code and municipal housing
bylaws. In cases requiring legal advice, we refer tenants to
appropriate legal services.
In some cases referrals are given to
a municipal department or to a local politician.
The FMTA strongly believes that there is strength in unity and
that many housing problems can only be addressed by collective
action. To that end we encourage tenants to create tenants
associations in their apartment buildings. We provide groups with
organizing kits and free consultations with FMTA staff to help an
association to get off the ground. We have also received funding
for a two-year pilot project to hire an Associations Agent who
will be able to work with tenants associations on rent control
hearings. This is a unique project that will allow associations
to better argue their cases without resorting to hiring a lawyer.
The FMTA is recognized by political leaders as the voice of
tenants movement in the Greater Toronto Area (GTA) and has been
viewed as an important stakeholder in all matters relating to
that 51.9% of GTA residents who are tenants. We have been invited
to submit briefs and statements on potential pieces of
legislation such as Bill 121 (the Rent Control Act), and Bill 120
(the Residents Rights Act) as well as to commissions such as the
Fair Tax Commission and the Residential Retrofit Implementation
Task Force.
Since our founding in 1974 we have followed our mandate as a non-
partisan, non-profit information and advocacy centre. We have
also understood that issues affecting tenants often involve
actions and expertise outside our mandate and strengths. To
further the well-being of tenants, we have created organizations
that cater to particular areas beyond our immediate scope. The
Metro Tenants Legal Services was founded in 1979 as a legal aid
clinic that deals exclusively with tenants issues. We helped set
up the Tenants Non-profit Redevelopment Co-operative so tenants
could convert their buildings into non-profit co-operative
housing. In 1990 we joined with other tenants in founding United
Tenants of Ontario (UTOO/LUDO) as a province-wide organization
representing all of Ontarios tenants.
F E D E R A T I O N O F
344 BLOOR STREET WEST, SUITE 403,
TO G E T H E R W E A R E
M E T R O T E N A N T S
TORONTO , ONTARIO M5S 3A7
ST R O N G!
A S S O C I A T I O N S
TEL [416) 921-9494 FAX: (416)921-4177
Dear Dr Golden,
As the umbrella organization of all ratepayer groups in Oakville, and actively involved in
the political activity of the Town, the Region and the Board of Education, we are anxious
to submit our concerns over the potential creation of a super GTA concept of
Government.
In our view, any revision to government that adds to the overlapping functions of existing
government bodies can only be a detrimental development. Canada, and this province,
already have too many layers of bureaucracy and too much government. A GTA that
increases this, or encroaches on the autonomy and accountability of local municipal
government is not supportable, or even warranted.
Already the public suffers too much mindless regulation from excess duplication of
different jurisdictions - and bears the horrendous cost associated with such duplication
of effort. As Federal and Provincial governments proceed to implement some degree of
downloading of costs to the local level, there must also be a total disentanglement of
services. Those with the obligation to pay for services must have a direct say in how, or
even if, those services should be offered.
The new GTA is unlikely to encourage this, In all probability the GTA will evolve into yet
another layer of government, with all its inefficiencies, to create more politicians, more
public servants, more cost while providing the public at large with no apparent value.
Such an entity can all too readily become another vehicle to re-distribute wealth from one
sector of the Golden Horseshoe to another. We deplore such methods, but do subscribe
to the truism that no-one can multiply wealth by dividing it.,. We remain deeply concerned
a new GTA will permit Metro Toronto to fund its expansionist plans off the backs of the
suburban residents who will see little, if any, benefit from such expansion. Such
aspirations, should they exist, are NOT acceptable.
We understand you are in favour of having the Toronto property tax assessment process
fixed at an early date. We would endorse this as a necessity before any changes might
occur within the GTA, but would caution against an acceptance of MVA as the
appropriate way to go forward. This form of property taxation, like the system of
government we now enjoy, came into being in the mid 1850s when the social fabric of
southern Ontario was far different than to-day. In this respect, if you accept our present
style of government is in need of drastic change, then so is property taxation.
You will be aware Tom McCormack has built up an extensive knowledge of MVA, and its
detractions. As an active member of the Halton Citizens Committee on Property Tax
Reform, he was instrumental in preparing a report outlining a variety of options to the
current property tax procedures. That report agreed with the NDP Fair Tax Commission
conclusion that drastic amendment is called for, and that MVA is not an appropraite
model for the 1990s.
The Oakville Citizens Committee on Property Tax Reform (on which Tom also sits) has
studied alternatives to MVA, and has prepared a detailed report which supports Unit
Value Assessment as a real alternative to MVA, While more study is still required to
determine the value of such an alternative Province wide, we strongly urge your
committee consider this alternative, and to include it in your final recommendations to
Cabinet as a plausible way to fix the existing outmoded system in place to-day.
Our organization would prefer a significant reduction in the layers of government,
including the elimination of Regional Governments so that full local responsibility can rest
with the local municipalities.
Local government can be kept under the spotlight of local taxpayer scrutiny and will
accordingly be much more responsive and accountable to those that pay the bills, The
GTA cannot possibly display such attributes, and will consequently lack any form of real
accountability for its actions. Most probably it will quickly become almost as remote as
the Federal government, and as out of touch with its constituents.
If a new GTA is to exist at all, its purpose should be no more than that of a small co-
ordinating body whose sole rationale is to achieve true economies of scale in the
provision of essential services, using less staff and less cash than is now at the disposal
of all regional governments collectively. The elimination of regional governments can only
be a positive outcome. Their day has passed. Many of their functions can be assimilated
into the local government area of responsibility ( such as planning, roads, etc). Others,
such as police, fire and ambulance, or social services can be fused more effectively into
a provincial system of services to gain the benefit of critical mass. Another advantage of
such an amalgamation would be the elimination of duplication as individual, local
hierarchies of command are dismantled. There is no logic in having a Fire Chief in each
municipality, nor do we really see the need for all the senior support positions which
inevitably flourish when one local service provider competes with another in the
neighboring town. Similar comments can be applied to each police force. Why should
they not all be melded into the O. P. P.?
In Halton region our regional representatives find it difficult to act as a concerted regional
body with an interest in the larger issues affecting all parts of the region. In too many
instances, regional councillors vote for their own community in disregard for the impact
on the remainder. The continued inequitable representation does not make for a citizenry
that can be confident it will be properly considered. In Halton, the old maxim of no
taxation without representation is at odds with reality. Why would we expect a larger,
less responsive body of government to be any different?
At the end of any debate, our organization and its members will support responsible
change. But such change must require a tangible reduction in government and
interventionist activities, It must also accept the recognition that downsizing means a
sharp drop in spending, and that those persons wanting a service are the ones who
should pay for it. In other words, an increase in user fees should also reflect a
corresponding reduction in general taxation,
We appreciate the opportunity to express the views of a considerable portion of the
Oakville population, which has been gathered through regular annual surveys. We hope
our comments will be of interest and value to you as you conclude your analysis and
make your recommendations.
Yours sincerely, -
SEP 30 95 08: 57
905 827 1698 PAGE. 003
Christopher Gauer
2772 Guilford Crescent
Oakville, Ontario
L6J 6Z3
October 2, 1995
Golden Commission
393 University Avenue
20th Floor, Suite 2001
Toronto, Ontario
M5G IA6
Dear Ann Golden
I am writing this letter as a private citizen to comment on the future of the GTA,
not as a member of an interest group. Also, as a professional engineer with
experience working in transportation and environmental assessment with many
municipalities within the GTA, I believe I can contribute a unique insight into the
relevant issues. My main concern is that local political rivalries are dictating
the debate in the media on the future of the GTA. In my view, the purpose of the
GTA reform is to set out a coherent and effective means to allow the GTA to
grow and prosper. An objective perspective on the GTA issues is needed
outside of the political context. This is the only way we can generate real reform
and address the problems with the existing system. The current political insiders
have too much of a vested interest in the present organization and cannot
support any real change.
Reform in the GTA must address a complex set of factors. Each is
interdependent upon the other, as is the viability of each local area within the
GTA. Reform must address the following concerns:
. Less and More Effective Government
. Fair and Equitable Taxation
B The Environment
. Transportation
. Economic Growth
. Planning and Development
The reform of the GTA must create an overall means of government to
effectively address the above issues. I will focus my comments on the areas
where I have some expertise and comment on the other areas.
Submission to the Golden Commission
by Christopher Gauer
The Environment
Historically, North American cities continue to sprawl. In my view, this is the
greatest means of environmental degradation caused by man. We need to
stop the sprawl, put a boundary on growth outside the GTA area and set out
principles for limited growth in rural areas. We cannot continue to eat up
farmland and destroy natural areas. We need to encourage development and
intensification in the urban areas and protect our rural resources through
development in a sustainable manner. No matter how you look at it, a city
cannot be considered as a sustainable environment. Because of this, the rural
environment must be protected. Otherwise we will not be able to feed and
sustain the growing population on this planet. Read Earth by David Brin, for a
possible view of our worlds future in 2040, if we follow our present course of
action.
Therefore, a main consideration of the GTA policy is to set out limits for the
urban area, require intensification with its boundaries and create a sustainable
environment in the rural environs. This overall policy will also serve to support
many of the other fundamental initiatives in the GTA.
Transportation
Transportation within the GTA is subsidized by the taxpayer in many ways.
This includes direct subsidy like the Province or municipality paying for 50% to
75% of the cost of transit systems, to the indirect subsidy of government building
the road and highway infrastructure (although it can be argued that fuel taxes
more than cover the cost of road construction). We need to set out a course of
action to eliminate the subsidies and make our transportation infrastructure pay
for itself. If this is not possible, at least we can reduce the subsidy levels.
How is this done? The answer is intensification of development. Currently, our
transportation systems are run inefficiently. This is due to the peak nature of
rush hour travel and because of the great employment magnet called Downtown
Toronto. This means that the roads and transit systems are at capacity directed
towards downtown in the morning rush hour while the roads, trains and busses
are empty in the opposite direction. The reverse is true in the afternoon rush
hour. This is wasteful, resulting in infrastructure that is not fully utilized.
The solution to the above problems is two fold. First, intensification will allow us
to better use our existing transit and road infrastructure. We need to ensure that
roads, trains or busses do not operate empty or well below capacity, especially
as currently occurs in the suburbs. Secondly, travel to employment needs to be
in both directions, to fully use the transportation systems.
These two solutions can be realized by controlling development outside the GTA
and intensifying growth within its boundaries, Also, the development of regional
sub-centres (like the North York, Mississauga City Centres, etc) must be
Submission to the Golden Commission by Christopher Gauer
encouraged to support two way transportation growth. In this way, our
transportation systems will be better utilized and require less subsidy.
Planning and Development
The basic objectives for planning and development were touched upon in the
discussion of the Environmental and Transportation issues. Unfortunately, these
types of planning initiatives will cause a considerable amount of controversy
from local residents. This is due to the NIMBY attitude and the opinion of local
residents that any change is for the worse. However, to achieve the overall
environmental and transportation initiatives within the GTA, some sacrifices must
be made. Considering the existing urban environment is already degraded from
a natural environmental perspective, we need to focus development there while
restricting growth in the rural areas.
Development outside the GTA must be strictly limited in a sustainable context
(more work is needed to determine what sustainable development entails).
Development within the GTA must intensify, especially in the suburbs. Regional
sub centres must continue to grow to achieve a two way flow of transportation
within the GTA.
The general logic of this position makes sense. In creating an urban
environment, man has generally destroyed the natural condition (except for the
rare oasis of parkland). Therefore development should be focused in this area
at all costs. This also supports the initiative to make our transportation systems
more efficient.
In the rural areas, we need to preserve the low density character, farmland and
natural areas. Development may occur, but at a much reduced level. Farmland
which may not be considered productive today, may be priceless half a decade
from now (not for development but for food production). The natural areas serve
two functions, as a natural rejuvenator of the biosphere and as a recreational
outlet for the urban populace.
Economic Growth
Economic growth within the GTA must be viewed in an overall context, not as a
rivalry between local municipalities, such Vaughan and Toronto (as shown by
the infamous radio ads). In the short term, more growth will occur in the outer
areas of the GTA, as the opportunity for growth is greater (more land, less
density and available capacity within the transportation systems). However, this
growth must be consistent with the Environmental, Transportation and Planning
and Development policies discussed earlier. The difference in growth and the
resultant income in the form of taxation can be shared throughout the entire GTA
by an overall means of governance and through fair taxation. Large disparities
between the local area must be discouraged and eliminated.
Submission to the Go/den Commission by Christopher Gauer
Fair and Equitable Taxation
Each part of the overall GTA must be taxed on the same basis. I leave the
taxation mechanism to the experts. However, the inequities between the City of
Toronto and the suburbs and Metro Toronto and the outlying regions must be
addressed. Part of the problem is unequal provincial funding to the various local
municipalities. Therefore, any provincial funding needs to go into an overall
GTA budget. This would permit taxation in all areas on an equal basis and an
equitable sharing of the provincial funding by all the participant municipalities
within the GTA.
Inequities such as different base years for assessment purposes and varying tax
levels need to be resolved. Again, this requires some hard decisions and an
unyielding approach, as many special interests and those who have benefited
from the present system, will oppose any changes.
Tax rates for the residential and manufacturing/commercial/retail component
must be harmonized on a regional basis. Otherwise, this is just another weapon
for local areas to attract development at the expense of its neighbors.
Less and More Efficient Government
This is the political Pandoras Box.
Each region and local municipality is jockeying for position with the Golden
Commission to protect their political self interest. Wholesale change in the
areas governance structure must occur now, as happened in the 1950s, in order
to achieve the objectives outlined previously. Otherwise, we will be mired in the
same old cycle of local political infighting and posturing and no real reform will
occur, only minor tinkering with the status quo.
How do we reorganize? We need an overall GTA level of government to realize
the Environmental, Transportation, Planning and Development, Economic and
Taxation objectives set forth previously. These objectives are difficult to solve
on the local level, as individual local municipalities will be handcuffed by
residents objecting to traffic, land use, intensification and any other change. A
GTA government would be better able to manage the affairs of the entire area,
administer taxation on an equal basis, allocate funding fairly and address the
overall transportation needs.
The next question is: How do we deal with the current municipal structure? The
simplest and easiest way is to retain many of the existing political entities and
adsorb the remainder into the larger organizations. The proposals put forward
by the politicians are laughable and self serving. The simplest and most
pragmatic new government structure is to have an overall GTA Regional Council
made up of local municipalities which were the former regional municipalities:
Toronto, Durham, York, Peel, Halton and Hamilton-Wentworth. The local
municipalities that make up the existing regions would be adsorbed, as was
done in the 1950s.
Submission to the Golden Commission by Christopher Gauer
5
The net effect of this restructuring is less government, fewer politicians and
rationalization of the services now provided by the existing local and regional
municipalities. For example:
B
B
B
B
B
B
Transportation and Public Works would be a GTA Regional responsibility.
All roads, except for provincial highways, would be under the GTA authority.
Sewer, water and hydro services can be provided in the same manner
Planning and Development can be consolidated into a regional GTA planning
approval process with planning input on the local issues. Too much authority
cannot reside with the local municipalities, unless we want to be run by the
NIMBY residents or plan our city through lawyers at the OMB.
Parks and recreation can be a local responsibility
Economic development would be a GTA regional responsibility
Police and Fire Services should be a GTA regional responsibility
Housing should not reside with the municipalities, but be a Provincial
responsibility
I am sure that many of the other services provided by the existing local or
regional municipalities can be rationalized based on the need for local input and
the efficiency resulting from an overall management of the service.
Summary
Only a bold initiative by the Golden Commission can fix the problems in the
GTA. However, we cannot just put our finger into the dike, but we must
reorganize and repriortize to meet the challenges of the future. Unfortunately,
most of the rhetoric from the political side does not seem to appreciate the
higher, transportation, planning and environmental goals. They only recognize
the threat to their survival.
Therefore, the Golden Commission needs to rock the boat of municipal politics.
If our Provincial Government is committed to efficiency and cost savings, as
it appears it is, then these suggestions are the way to achieve these savings
while charting a course for the future growth and prosperity of the region.
Use of this opportunity to trim government, rationalize taxation and address the
future transportation, environmental and development needs will result in a
prosperous economy and a more sustainable living environment.
Sincerely,
Christopher B. Gauer, P. Eng.
Taxpayer
Submission to the Golden Commission by Christopher Gauer
Alison Gaul
16 Alder Rd.
East York, Ontario
M4B 2Y4
Thursday, September 28, 1995
Attention: Golden Task Force Commission,
Dear sir,
This letter is regarding the City of Torontos attempts to consume
the Borough of East York into its jurisdiction. This small, but
important area of Metro Toronto does not deserve this kind of
disrespect from the City.
East York has a large history and tradition that the City of
Toronto is seemingly thumbing their noses at. How can Metro let a
long lasting part of their community be disintegrated over a greedy
bureaucratic decision?
About 100,000 people populate the East York area; living in its
homes, working at its jobs, and attending its schools. By letting
our Borough be digested by the City of Toronto, many of these
citizens will be the victims of tax increases, job losses due to
the population explosion in one overcrowded jurisdiction, and most
worrisome of all in the point of view of a student, the consumption
of many thousands of school children into the underfunded,
seemingly rundown City of Toronto school. system. I look at the
dilapidated buildings of the Toronto schools and shudder to think
that the bright, clean, and well run institutions belonging to the
East York Board of Education may one day transform into those
decrepid structures if put into the hands of the City.
East York has an independent and unique personality and style. To
annihilate the Borough of East York would be to deny our future of
a truly great place to be. The City of Toronto can find another
part of Metro to swallow up. Try Scarborough, they always wanted to
be a part of us anyway.
Sincerely,
19950926
Ms. Anne Golden, Chairperson
GTA Task Force
393 University Avenue
20th Floor -2001
Toronto, Ontario M5G 1E6
Dear Ms. Golden:
Enclosed for your information is a copy of Georginas GTA Vision - Report No. CAO-95-21 of
the Chief Administrative Officer for the Town of Georgina.
This report was presented by Mr. Roman Martiuk, C. A. O., and the recommendations contained
within the document were approved by Town Council on Monday, September 25th, 1995.
(Mrs.) Martha Gibson, A.M.C.T.
Deputy Clerk
/mg
Encl.
cc -- Premier Mike Harris
-- Al Leach, Minister of Municipal Affairs
-- Julia Munro, Member of Provincial Parliament
-- All municipalities within the Greater Toronto Area
905-476-4301 905-722-6516 705-437-2210
Fax: 905-476-8100
TOWN OF GEORGINA
CHIEF ADMINISTRATIVE OFFICERS REPORT
TO COUNCIL
(1995 09 25)
REPORT NO. CAO-95-21
SUBJECT: GTA TASK FORCE
RECOMMENDATION
.
.
Whereas the Greater Toronto Task Force is currently reviewing the economic vitality of the
Greater Toronto Area and,
Whereas the Greater Toronto Task Force has requested comment from municipalities by
September 30, 1995.
Therefore, be it resolved that the commendations contained within Georginas GTA Vision be
approved and submitted by the Clerk of the Town of Georgina, by September 30, 1995, to:
a) Premier Mike Harris
b) Al Leach, Minister of Municipal Affairs
c) Julia Munro, Member of Provincial Parliament
d) Anne Golden, Chair, GTA Task Force
e) All municipalities within the GTA
REPORT:
The Greater Toronto Area Task Force has requested submissions by September 30, 1995. The
Task Force will use these submissions to
Government.
Attached is Georginas GTA Vision for
contained within Georginas GTA Vision
Council and staff of the Town of Georgina.
Respectfully submitted,
Roman Martiuk, P.Eng. CMA
Chief Administrative Officer
Attach.
/jl
help develop recommendations to the Provincial
Councils consideration
outline broad principles
The recommendations
developed by consulting
For f ur t her informationcontact:
Roman Martiuk, Chief Administrative Officer
(905) 476-4305 Ext. 247
Robert Grossi, Mayor
(905) 476-4305 Ext. 215
GEORGINAS GTA VISION
Production
The Town of Georgina is one of the northernmost municipalities considered to be a part of the
Greater Toronto Area(GTA). Our municipality is approximately 111 square miles in area, a total population
of 32,400 and contains three major population centres, Keswick, Sutton and Pefferlaw, and numerous
smaller communities. The three major population areas have recently had secondary plans completed and
are projected to double in population over the next 20 years. We feel that we are unique with our composite
blend of urban and rural lifestyles and our mix of residential, industrial and recreational opportunities.
We boast 32 miles of direct frontage on our most important natural resource, Lake Simcoe. A large
area of Georgina is dedicated to Class 1 to 3 wetlands. We are a mix of both urban and rural lifestyles. Our
residents have chosen to live in our community because of these amenities.
Major local employment includes retail trade (25%), accommodation (15940), agr icult ur e (10%) and
Education. Employment within Georgina is compr ised of small businesses with 86% having
under 10 employees. Over 70/0 of the working population commute south.
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1o
In 1993, our citizens identified the following strengths that make Georgina a desirable place to be:
Natural resources - near Lake Simcoe
Proximity to Toronto
Tourism and tourist attractions
Large ambitious skilled workforce
Good place to live and raise a family
Abundance of inexpensive land and commercial space
Inexpensive and affordable housing
Good transportation facilities
Good recreational facilities
Clean and unpolluted
In recent years, as provincial finding has become more scarce, we have embarked and continue upon
a path toward
maintaining our services at a level that meets or exceeds our citizens' needs. We provide these
services in the most economical method that we can. We constantly review our operations to ensure that
we are meet ing our Corporate Mission.
Georgina believes that we represent the practical implementation of common sense government every
day. We are not showered with developer money. Our commercial-industrial-residential mix is growing to
meet t he demands of our cit izens. We have developed our Strategic Plan, and we are progressing to meet
the goals defined We clearly understand that change will not occur quickly, rather that it is a progressive
road down which we must travel, implementing the pieces of our plans as we can afford to.
Georgina's GTA Vision 2
Georgina would not invite changes to our municipality that do not serve to strengthen our ability to
meet our communitys goals. We believe that the solutions developed for the GTA must consider the unique
character of municipalities like Georgina, and are not based exclusively on the framework of large urban
centres.
1. Whereas the Town of Georgina is a unique community with an urban and rural
mix, therefore, be it resolved that solutions developed for the GTA must
consider the unique character of communities like Georgina and not be based
solely on the needs of the large urban centres.
Governance Issues
Georgina feels that our relationship with the Region of York has been beneficial to our citizens. We
continue to see an important role for an upper-tier municipality in the provision of major infrastructure
programmes and region-wide common services, and would like to continue our association with the Region
of York.
2. Whereas the Town of Georgina has benefited by its association with York
Region, therefore, be it resolved that the Town of Georgina sees an important
role for an upper-tier municipality in the provision of major infrastructure and
wishes to continue its affiliation with York Region.
Georgina believes that we belong in the GTA Much of our population works and enjoys the
amenities the GTA has to offer, Georgina would not support any plans that exclude our municipality from
GTA-wide solutions.
3. Whereas the Town of Georgina has important links to the GTA therefore, be
it resolved that the Town of Georgina does not support any alternatives that
would not include the Town of Georgina as a member of the GTA.
Over the past number of years, Georgina has developed and strengthened the depth and abilities of
our staff. We believe that the fundamental abilities of our staff to cope with broader and more complex
issues are in place already. We therefore believe that the current Municipal Act and attendant legislation is
cumbersome and binding to both our staff and our Council, and does not enable us to be as creative as we
would like to solve the issues that confront us today. We, therefore, would ask the Provincial Government
to create and implement new governing legislation in the model of the new Alberta Municipal Act that would
empower the local municipality to meet these challenges.
4. Whereas the Provincial Government intends to review the Municipal Act,
therefore, be it resolved that the Town of Georgina supports a new Alberta-style
Municipal Act.
Georgina's GTA Vision 3
Georgina has a lower population density than many of the more urbanized municipalities in the GTA.
In or&r to meet the needs of our citizens through access to their elected representatives, we strongly believe
that any new legislation must consider the special geographic needs of rural municipalities. Simple
approaches to ward boundaries such as uniform population/councilor ratios should not be used,
5. Whereas the Town of Georgina supports a review of the number of Wards
within Georgina, and whereas Georgina has a low populationde~ity compared
to fully urbanized GTA municipalities, therefore, be it resolved that the
establishment of new municipal ward boundaries should consider the special
geographical needs of rural municipalities and that simple approaches such as
uniform population/councillor ratios should not be used.
In the past, the Province has handed down the responsibility for administration of many matters to
municipalities. This has often been accompanied with detailed regulations and little or no funding. We
therefore ask that when duties are to be conveyed upon municipalilities, that the Province provide broad
Say approach to governance.
Provision of Services
. .
Georgina believes that services with a very high citizen interest and involvement should be
administered at the local level staff and politicians can be most easily accessed. Although
small in population, the geographical separation in Georgina currently poses challenges. Transfer of
responsibilities to upper levels of government could greatly affect access.
7. Whereas the local level of government is the most accessible level and whereas
the public identify with the local, therefore, be it resolved that services with
high citizen interest and involvement should be delivered by the local
municipality, providing the services can be delivered locally at reasonable cost.
Municipalities are in the business of providing service. The shuffling of a citizen from one
government level or department to another is a frustrating and confusing process. Georgina believes that
a "one-stop shopping approach must be adopted by any initiative within the GTA. In this proposal, local
municipalities would provide complete service to the local community, and be responsible to the citizens that
it directly services.
Georgina's GTA Vision 4
8. Whereas municipalities are in the service business and whereas citizens should
not be shuffled between levels of government therefore, be it resolved that the
GTA Task Force embrace the concept of "one-stopop shopping whereby local
municipalities provide any services that directly impact on the citizens.
We believe that only one level of government should be involved with the provision of a specific
service, Duplication and overlap of services are unnecessary and wasteful. This kind of service distinction
will also assist the citizens unknowing which level of government provides specfic services, thus streamlining
their service delivery.
9. Whereas many services currently involve local, regional and provincial levels of
government, therefore, be it resolved that where practical, only one level of
government should provide a particular service.
In Georgina, we have examined the roles and duties of many special purpose bodies within our own
jurisdiction.Recently, we amalgamated our Library Services and our Recreation Division into a new, more
responsive Leisure Services Department. Georgina supports the ongoing quest to economize and provide
greater accountability by efficiently integrating special purpose bodies into the existing local or regional
municipal organizations.
The key connecting links among all of us is economics, the transportation infrastructure and
telecommunications. These are interjurisdictional issues that should be dealt with on a GTA-wide basis.
Economic survival is a by-product of these global issues. Business demands will not increase without
attention to these specific services.
Economic development could very well be dealt with throughout the GTA as a mutual cooperation
area but we believe that individual municipalities will want to determine their own future and the areas that
they wish to explore. They should be permitted to do so.
11. Whereas economic development, transportation infrastructure and
telecommunications are important issues for the GTA and whereas coordination
of these activities is important, therefore be it resolved that we support
coordination of economic development, transportation and telecommunications
on a GTA-wide basis.
Georgina's GTA Vision 5
Georgina believes that the planning process should be left entirely to the local municipality. The
current system involves provincial monitoring, approval and double checking. This activity provides little
value and results in significant time delays, With the flexibilityadopt and administer an Official Plan that
represents the wishes of the people through direct and political input, we can shape a community that meets
our residents vision, not the vision of some homogeneous body south of here.
Georgina has worked hard to keep its assessment base current. We believe this to be a necessary step
to ensure tax fairness to our citizens.
15. Whereas the assessment values used within Metro are out of date, therefore, be
it resolved that Metro municipalities should implement reassessment as an
integral part of the Task Force recommendations,
Georgina's GTA Vision 6
We believe that the education section of the tax levy should be removed. Local municipalities are
not in control of the priorities and spending of local school boards. We must make levy payments regardless
of the paid status of taxes issued. Some municipalities make decisions on local spending as a result of seeing
the educational levies. This can inpact on the accomplishing of local municipal goals.
16. Whereas the levying of education taxes through the property tax system
inherently unfair, therefore, be it resolved that granting systems be adjusted
remove education costs from the property tax base.
is
to
summary
GTA Network:
A Telecommunications Vision for the GTA
A Report by the GTCC Telecommunications Steering Committee
September 1995
GTA Network:
A Telecommunications Vision for the GTA
A Report by the GTCC Telecommunications Steering Committee
EXECUTI VE SUMMARY
Over the past few months, individuals
responsible for information systems, geo-
graphic information systems and communica-
tions, from various GreaterToronto Area (GTA)
municipalities and regions, worked to address
the basic principles of a comprehensive tel-
ecommunications plan for the GTA: to look at
what has been done so far, as well as to iden-
ti~ what needs to happen in order for a tel-
ecommunications strategy to be implemented.
Irrespective of the form and structure a GTA
Government may take, coordimting telecom-
munications initiatives should be an impor-
tant segment of the GTA governments man-
date. In an era of financial restraint the re-
engineering of government operations and
semice through the application of communi-
cations and information technology has be-
come a priority the world over. Changes in
telecommunications are closely tied to changes
in government st.mcture. The implementation
of a GTA Network should be a top priority of
a new GTA government because it would en-
hance communication across jurisdictional
boundaries and provide greatly improved serv-
ice delivexy to the community. More impor-
tantly, a GTA Network would provide an un-
rivaled economic development tool to ensure
the GTAs pre-eminence in a global market-
place representative of both the public and
private sectors.
Clearly, decisions about telecommuni-
cations should be made on an inter-jurisdic-
tional basis, in much the same way as deci-
sions about transportation and infrastructure.
Developing a telecommunications strategy fits
naturally into the mandate of a GTA gover-
nment, yet, the implications of implementing a
GTA Network reach far beyond government.
Among the fmt actions of a GTA government
should be to strike a Telecommunications
Forum with a directive to establish a GTA
Network. The GTA government will need to
identifi a group of people that will constitute
the Forum and assume responsibility for de-
veloping an implementation strategy for the
Network. This group will need to be repre-
sentative of both the private and public sec-
tors, since government alone cannot be re-
sponsible for implementing a real network
across the GTA. The Forum should be heavily
weighted toward local govemment since that
level represents the closest link to the com-
munity. The important players should prima-
rily be composed of municipal government
representatives; private sector representatives
from both the telephone and cable industries;
the public utilities and educational institutions.
The Forum will need to identi& the extent
and type of existing communications infra-
structure throughout the GTA in order to de-
termine gaps and assess priorities for devel-
opment. Coordinated Internet activities should
be implemented almost immediately to pro-
vide a common communications base and in-
ternational presence while the GTA Network
itself is under construction. And finally, the
Forum will need to ident.i@ the costs associ-
ated with the Network and address funding
issues.
It may take time to actually develop a
workable Telecommunications Strategy and
implement a GTA Network, but consensus was
reached during the visioning exercise, that
developing a unified telecommunications strat-
egy and implementation plan for the GTA was
extremely important and that no single organi-
zation can be responsible for the creation and
delivery of all the content and services on the
network. The Telecommunications Steering
Committee agreed on the following Vision and
Strategic Objectives as a basis from which to
develop a concrete plan of action for a GTA
Network.
Vi si on
To d evelop a wor ld cla ss t elecommu n i ca -
t i on s n et wor k a cr oss t h e GTA wh i ch wou ld
p r omot e t h e efi lci en cy, effect i ven ess a n d
wor ld -wi d e vi si bi li t y of t h e GTA a s a focu s
for gover n me n t ser vi ce, bu si n ess, t ou r i sm
a n d t h e a r t s.
3
4
St r at egi c Obj ec t i ves
B
Wor l d -Wi d e Vi si bi l i t y of t be (XCA i n
t be gl bba l m a r k et p l a ce.
.
Tbe GTA - a Vi r t u a l Gk wer n m en t
f m sed on S er v&e Del i ver y a n d
Com m u n i t y Devei h pm en t .
.
Tbe GT.A Cu m wct ed t br ou gb a S ea m
l k ss a n d Accessi bl e Net wor k
Although the group has been able to agree
on a joint Vision and Goals for establishing a
GTA Ne&vork, it is important to remember that
the recommendations contained in this report
represent a first-cut local government only
perspective. The group clearly recognizes t-he
shortcomings of developing a vision in isola-
tion from the private sector, other levels of
govemment, special purpose bodies and the
community who will be the ultimate user base.
This report should be considered a first step
for developing a GTA Telecommunications
Stmtegy in that it identifks key initiatives which
will need to be undertaken if a network is to
be successfully implemented. In summary, the
recommendations of the Telecommunications
Committee are as follows:
Rec ommendat i ons
Tm T.
1. Tbe GT.A gover n m en t (s) i a %?n t z ~y T el -
ecom m u n i ca t i on s a s a k ey a r ea of r espon -
si bi l i t y wi t bi n i t s m a n d a t e.
2. Tbe GTAgov er n m en t (s) st r z k e a For u m
on T ef ec om m u n i ca t i u n s wi t b st r on g r ep-
r esen t a t i on f r om i bca l gover n m en t , t be
pm -va l e sect or , pu bl i c u t i l i t i es, a n d ed u -
ca t i on a l i n st i t u t i on s t o d evel op a n d i m p l e-
n wn t a GTA Net wor k .
3.AI 1 m u n i ci p a l i t i es &bi n t be GT 4 com -
m i t t o t be cr ea t wn of a sea m l ess, ca r r i er
i n d epen d en t , GTA Net wor k ba sed on open
st a n d a r d s.
4.AU m u n i +a l i t i es wi t bi n t be GT ~ com -
m i t t o t be d k vei bpm en t of t be a p p l i ca t i on s
r equ i r ed t o d el i ver on e-st op gover n m en t
ser vi ce a n d ~xi bl e i n f ~i on a ccess.
5. A GZA I n t er n et pr esen ce wi t b con si st -
en t pr esen t a t i on a n d n a vi ga t i on pr oce-
d u r es sbou l d be d i wel op ed a s a f i r st or -
d er of p r i or i t y.
6. AU m u n i ci pa l i t i es wi t bi n t be GT A, r e-
st r u ct u r e ser vi ce d k l t ver y t o t a k e a d va n -
t a ge of t ek om m u n i Za t i on s, t opr ovi d k a c-
cessi bl e, on e-st op gover n m en t ser vi ce a t
t be l oca l l evel .
7. Al l m u n i ci ~a l i t i es wi t bi n t be GT ~ pa r -
t i ci p a t e i n t be co-or d i n a t ed p r ovi si on of
GT A-wi d e I n for m a t i on S er vi ces.
8. Econ on u k d evel opm en t st r a t egi es wi t bi n
t be GTA i n cl u d k t be pr om ot i u n of ex i st -
i n g t ek ?com m u n i ca t i on s ca pa bi l i t i es i n t be
GT A a n d u l t i m a t el y t be ca p a bi l i t i es of t be
GTA Net wor k .
9. Mu n h pa l pol i ci es be d evel oped on a
GT.A-wi d e ba si s t o en cou r a ge t ek om m u -
n i ca t i on s i n f r a st r u ct u r e d evel opm en t a n d
a n y i m ped i m en t s a n d ba r r i er s t o i t s d e-
vel op m en t sbou l d be i d en t z ~i ed a n d r e-
m oved .
10. Tbe GT A gover n m en t (s), i n cl u d i n g a l l
m u n i ci pa l i t i es &bi n t be GT A u m br el @
com m i t t o t be on -goi n g pr of esswn a l d e-
vet bpm en t of st a f i i n t be u se a n d a p p l i ca -
t i on of t el ecom m u n i ca t i on s t o i m p r ove
gover n m en t ser vi ce d el i ver y.
GTA Network:
A Telecommunications Vision for the GTA
A Report by the GTCC Telecommunications Steering Committee
I NTRODUCTI ON
Telecommunications refers to the tech-
nology that enables electronic transmission of
voice, video, data and multi-media. It encom-
P~
computer networks, telephone, cable,
satellites, wireless and mimowave.
Wbik we may n ot a gr ee on t be n a t u r e of
cba n ge - we ca n a gr ee t ba t soci et y a s we
ba ve k n own i t i n t be pa st f ew d eca d es -
wi U cba n ge beyon d r ecogn i t wn . I t i s be-
com i n g ch a r t ba t t ber e ba s a l r ea d y been
we cba n ge in t h e l a st f ew d eca d k s t ba n
i n a l l of pr eViOZ&y r ecor d k d bi st or y.
Th omas B. Riley livin g in t h e Heet r on ic Vie :
Movin g In t o a n t h xr t a m Wor ld.
Although the phrase Information High-
way originated in the United States of America,
governments around the world have taken
action to develop national telecommunications
stmtegies, in order to remain competitive in
the global marketplace. The Canadian Blue-
print for Renewing Government Service using
Information Technology appeared around the
same time as Washington released its National
Information Infrastructure (NII) initiative and
various European and Asian nations simulta-
neously issued their position papers, all en-
tering the race towards the Information Age.
Examining any
internationally
published gov-
ernment mate-
rial on telecom-
mu n i ca t i on s
since abou t
1993, it would
appear t hat
everyone had
come t o t h e
same conclusions about the expected magni-
tude of change in society that communications
technology will bring, as well as agree on the
basic principles of connectivity - equitable an
open access; seamless networks, security; and
economic positioning. In an era of continuing
fimncial restraint - the re-engineering of gov-
ernment operations through the application
of communications and information technol-
ogy has become a priority the world over.
Changes in telecommunications are
closely tied to changes in government struc-
ture. Re-engineering government is depend-
ant on advances in communications technol-
ogy. Soaring costs of delivering public serv-
ices such as health care, education and train-
ing, combined with pervasive government
defiats are stimulating interest in the electronic
delivery of public seMces.
I f i n f ~t i on i s t be cu r r en Cy of d em oc-
r a cy a n d gover m n en t a gen ci es a r e a m on g
t be m ost p r ol z f i c col l ect or s a n d gen er a -
t or s of i n f ~W% t ben i m pr ovi n g t be
n a t i on a l i n for m a t wn i n f r a st r u ct u r e pr -
ovi d es t r em en d ou s oppof l u n i t i es f or i m -
pr ova n g t be d el i ver y of gover n m en t i n f or -
m a t k m t o t be t a xpa yer s wbopa i d f or i t s
col l ect i t n q t opr ovi d e i t equ i t a bl y a t a f a i r
pr i ce, a s eni ci en t l y a s possi bl e. NI I
Tel ec ommuni c at i ons
St r at egy f or Canada
Given the transformative effects that ad-
vances in telecommunications will have across
the Canadian economy, the federal gover-
nment has tried to develop a national strategy
i n con s u l t a t i on wi t h a l l i ma g i n a bl e
stakeholders from the public and private sec-
tors by establishing an Adviso~ Council re-
porting to the Minister of Industry. Discussion
at the Advisory Council has contributed to-
ward a national strategy that is uniquely Ca-
nadian, respecting our regulatory history, eco-
nomic realities, market size, industry structures,
international context and unique cultural and
sovereignty requirements. It speaks to gover-
nment using new technologies to deliver serv-
ices more effectively and efficiently and creat-
ing a fiscal climate that encourages investment
and innovation.
The goal for Canada is to build the high-
est-quality, lowest-cost information network
in the world, in order to give all Canadians
access to the employment, educational, invest-
ment, entertainment, health care and wealth-
creating opportunities of the Information Age.
5
III short, the vision is to make Canada number
one in the world in the provision and utiliza-
tion of the information highway, creating sub-
stantial economic, social and cultural advan-
tages for all Canadians.
Because all levels of government are
major users of telecommunications and infor-
mation products/ services, very quickly, fed-
eml strategic initiatives have sparked provin-
cial and local governments, as well as special
purpose bodies to initiate their own stmtegies.
AN levels of government are becoming key
players,
Tel ec ommuni c at i ons
St r at egy f or t he Pr ovi nc e of
Ont ar i o
The Council for an Ontario Information
Infrastructure was formed on the recommend-
ation of Ontarios Telecom-
mu nicat ions St r at egy, an-
nounced Februa~ 1993. It re-
ports to the Minister of Eco-
n omic Develop men t an d
Trade. The Councils mandate
is to provide advice to the Pro-
vincial Government with re-
spect to implementing the Tel-
ecommunications Strategy for the Province of
Ontario and to fund various pilot projects
which fulfill its strategy.
Pr ovi nc i al Vi si on
The Vision for the Province of Ontario
is that, enabled by telecommunications, On-
tario and in return Canada, will be the best
place in the world to live, work, learn and do
business.
Pr ovi nc i al Goal
The goal of the Province is to create: a
telecommunications infrastructure which ena-
bles economic growth; a dynamic growing tel-
ecommunications sector enhancing quality of
life through telecommunications; and the stra-
tegic application of telecommunications by the
Ontario government.
6
GTCC
TELECOMMUNI CATI ONS
STEERI NG COMMI TTEE.
The Greater Toronto Co-ordinating
Committee (GTCC) was established by the
Province in 19S S to identify and examine i=
sues and trends that may have a major effect
on the quality of life, social equity and eco-
nomic vitality of the GTA and make recom-
mendations for action.
The GTCC through various Steering
Committees is investigating and reporting on:
municipal financing, economic development,
quality of life, infrastructure, municipal struc-
ture, assessment delivery and telecommuni-
cations.
The GTCC formed a Telecommunica-
tions Steering Committee with the purpose of
examining the potential for developing a Tel-
ecommunications Strategy for the GTA - one,
high speed integral communications ne~ork
which would ultimately promote the competi-
tive advantage of the GTA as a location for
business.
A Technical SubCommittee on Telecom-
munications was subsequently appointed to
examine the issue and to prepare a summary
report. Although the group has been able to
agree on a joint vision and goals, it is impor-
tant to remember that the recommendations
contained in this report represent a first-cut
local government only perspective. The group
clearly recognizes the shortcomings of devel-
oping a vision in isolation from the private
sector, other levels of government, special
purpose bodies and the community who will
be the ultimate user base. This report should
only be considered a ftit step for developing
a GTA Telecommunications Strategy in that it
identifies the goals to strive for.
The work of the Steering and Technical
Committees on Telecommunications is unique
in that a group of municipal information sys-
tems representatives met with the objective of
looking outward to address the issue of con-
nectivity rather than inward to improve day to
day technical requirements of their respective
municipalities. Over the past few months, in-
dividuals responsible for information systems,
geographic information systems and commun-
ications, from various GTA municipalities and
regions worked to address the basic princi-
ples of a comprehensive telecommunications
plan; to look at what has been done so far, as
well as, to identi& what needs to happen in
order for a telecommunications strategy to be
implemented. It may take time to actually de-
velop a workable telecommunications strat-
egy or implement a GTA Network, but con-
sensus was reached during the visioning ex-
ercise, that developing a unified telecommu-
nications strategy and implementation plan for
the GTA was extxemely important and that no
single organization can be responsible for the
creation and delivery of all the content and
services on the network. The Telecommuni-
cations Steering Committee agreed on a vi-
sion and strategic objectives.
Vi si on
To &velop a wor ld cla ss t elecommu n i ca -
t i on s n et wor k a cr oss t h e GTA, wh i ch
wou ld p r omot e t h e effi ci en cy, effect i ve-
n ess a n d wor ld -wi d e vi si bi li t y of t h e GTA
a s focu s for gover n men t ser vi ce, bu si n ess,
t ou r i sm a n d t h e a r t s.
St r at egi c Obj ec t i ves
.
Wm l d -wi d e Vi si bi l i t y of t be GTA i n
t be Gk bba l Ma r k et p l a ce.
.
Tbe GT A - a Vi r t u a l Gover n m eTI t f o-
cu sed on S er vi ce Del i ver y a n d
Cbm m u n i t y Devel opm en t
.
Zbe GZA Gn m ect ed t b?wu gb a S ea m -
l ess a n d Accessi bl e Net wor k
TELECOMMUNI CATI ONS,
GOVERNMENT SERVI CE AND
THE GTA
The GTA is Canadas largest and most
important City region, comprised of 35 juris-
dictional units. AS the engine for economic
growth in Ontario, the GTA is ideally suited
to be a leader in Information Highway devel-
opment because of the wealth of opportuni-
ties being developed here and because of the
public and private networks, research capa-
bilities, information technology and content
industries which have already located here.
Taking a lead role in network development
would mean increased economic applications
and improved services to GTA residents. Cur-
rently there is no comprehensive, strategic ef-
fort to co-ordinate network development
among public organizations, educational in-
stitutions and private firms in the GTA. Exist-
ing institutional and jurisdictional structures
are insufficient to deal with the GTAs telecom-
munications problems and opportunities. AI-
though individual Information Systems spe-
cialists do a good job at co-ordinating telecom-
munications networks locally, no one is ad-
dressing the connectivity of the broader re-
gion, either at a Local or Provincial gover-
nment level.
Private telecommunications service pr~
viders are responding to convergence changes
in technology by consolidating. Local gover-
nment, espeaally within the GTA must also look
for ways to consolidate - with a view to pr~
meting the competitive advantage of the GTA
to the world.
Convergence provides opportunities for
local muniapalities to move forward by facili-
tating public access to government informa-
tion at all levels, ( eg. council agendas, recrea-
tion programmed, GIS, public health, librar-
ies.) Local government can reach out to the
community and can promote community in-
volvement beginning with simple tools such
as electronic bulletin boards and moving to-
ward interactive town hall meetings and pro-
viding the ability to vote electronically.
These opportunities demand that local
government bring a unified and strong voice
7
to telecommunications policy makers at higher
levels of government. Cities need to monitor
telecommunications policies at the national
and international levels in order to maintain
their competitive position as centres for face
to face and electronic communications.
Private indust~, not government, is
playing the lead role in technological change.
Given the dynamic role of the private sector
in the development and merging of telecom-
munications infmstructure, it is essential for
local government to start looking for ways to
participate, especially given the enormous
quantity and variety of statistics and other land-
based information available at the local level.
Partnership with the private sector is
critical to success. Government and business
in the GTA could begin some joint network
development projects with government acting
as a catalyst. The joint goal could be the de-
velopment of a GTA
Network - an efficient
data system that pro-
vides more conven-
ient and less expen-
sive government serv-
ices for the public. As
the private sector con-
tinues to invest in
n ew t ech n ologies,
advanced networks,
innovative products
and services, govemment could begin to tackle
legislative policy and regulatory instruments.
The building blocks of a GTA Network
infrastructure are already in place but the roles
of the partners needs clearer definition. Build-
ing, running and developing innovative ap
placations for a GTA Network to meet the di-
verse needs of government and business com-
munities and individuals, is too large for any
one institution or company to undertake alone.
The formation of partnerships and alli-
ances with other municipalities and special
purpose bodies in a shared vision will not
come easily. To a large extent every munici-
pality has evolved their own service delivery
culture over many years of trial and error and
is not accustomed to consulting with neigh-
8
bouring jurisdictions on matters of informa-
tion systems. However, taxpayers do not per-
ceive jurisdictional boundaries when demand-
ing better government sem-ice.
Taxpayers want a more user-friendly
govemment, offering better services at less cost
and at times and in places more convenient to
them. Government departments and agenaes
process tremendous numbers of t.mnsactions
and information requests from their citizens.
With traditional methods of processing such
transactions and information requests are not
always easy or convenient and can result in
high administration and mailing costs. Creat-
ing easy to use access points for government
information services are critical.
Expanding and enhancing government
service delive~ by making it accessible directly
from the home or business is a key strategy.
People will use a GTA Network if it meets
their needs. Since the majority of people do
most of their government business at the lo-
cal level, it makes sense that local leaders have
a strong say in what applications are devel-
oped.
Partnerships with Provincial and Fed-
eral governments will further enhance the net-
work. From the point of view of the taxpayer
this makes sense. In the minds of the public,
government services tend to be similar and as
long as they have electricity, water, an upt~
date drivers license and tax refund when they
expect it - the customer does not care where
it comes from. Government seMces from any
level of government should be easily obtAn-
able and accessible.
Currently, to obtain commonly used
government services, taxpayers must contact
several agencies during office hours, at multi-
ple offices. The taxpayer sees a muddle of acts,
regulations, procedures, policies, forms, li-
censes and permits that are never obtainable
from one place. The problem is compounded
by red tape whereby inquiries can rarely be
answered by only one individual.
Government should offer its services in
places where people ~, not where it wants
them to be, and the service delivery must fit
the customers schedule instead of making the
customers schedule fit our traditional sched-
ule. Establishing one stop government shop
ping centres has implications for the way the
public receives services and how it interacts
with government. Municipal services, in par-
ticular, must change from the current busi-
ness day philosophy to providing service 7
days a week 24 hours per day. The technol-
ogy is there to supplement the change - but
most of the current applications are not de-
signed to provide that type of service. The
amount and detail of information is not avail-
able and neither are the delivexy or access
methods.
Rec ommendat i ons
.
Tba l t be GTAgover n m en t (s) i d en t z yy
T el ecom m u n i ca t i on s a s a k ey a r ea of r e-
spon si bi l i t y wi t h i n t bei r m a n d u t e.
.
Tba t t be GT A gover n m en t (s) st r i k e
a For u m on T el ecom m u n i ca t i on s wi t b
st r on g r epr esen t a t wn f =l oca l gover n -
m en t , t be pr i va t e sect or , pu bl i c u t i l i t k ?s,
a n d ed u ca t wn a l i n st i t u t wn s t o a %wel op
a n d i m pbn en t a GTA Net wor k .
WORLD WI DE VI SI BI LI TY
.
GTA I n f -m m a t wn S er vi ces
.
GTA Tel ecom m u n i ca t wn s I n f r a -
st r u ct u r e
.
GT-A a s a Cen t r e of Excel l en ce f or
T el k com m u n i ca t wn s
.
GT A Qu a l i t y of Lz ~e Com pet i t i ve
Ed ge i n a Wor l d Ma r k et p l a ce
.
We Wa n t T&m t o Ca l l Us t o Do
Bu si n ess
World-Wide Visibility of the GTA should be
the single most important objective of a GTA
Telecommunications Strategy. In a world of
global connectivity - We want them to call Us
to Do Business! We want them to call us to
do business, to locate their business here, to
study here, to visit here and to live here. The
GTA represents Canada and Canadian achieve-
ments on the global stage and the promotion
and celebration of the GTA as a World City is
essential from both an economic and cultural
perspective to gain a competitive edge in the
world marketplace.
Any economic development policies
that are developed for the GTA should pro-
mote the GTAs existing telecommunications
infrastructure and its numerous private sector
infmlructure providem and users. It should
promote the GTAs connectivity to the world.
At the same time, government commitment to
telecommunications can be demonstrated us-
ing examples of the various public/ private tel-
ecommunications initiatives such as those in
the health and education fields.
The GTA Network could provide an in-
ternational presence on the Internet which cel-
ebrates the cultural, multi-cultural and educa-
tional achievements whic:h make for the great
quality of life we experience in the GTA. The
GTA is already considered a Centre of Excel-
lence in Telecommunications considering the
skilled labour force and excellent reputation
as a world centre for training and education
promoting opportunities for technology trans-
9
fer between academia, the professions and
business could be an important role for gov-
ernment and be part of a long range GTA Tel-
ecommunications Strategy.
In the past, urban growth was linked to
the development of transportation infrastruc-
ture; now, telecommunications infmstructure
that allows information to flow in, through
and out of cities is just as vital, if not more so,
to urban growth.
The development of cities into World
SuperCities will increasingly be based on their
specific realm of influence, their ability to af-
fect world patterns of behaviour, world events,
global beliefs, and the global economy. One
of the cornerstones of an economic develop
ment strategy for the GTA must certainly be
its telecommunications strategy and network.
By establishing itself as a major international
telecommunications hub, with a wperior in-
ternal telecommunications network, the GTA
can posit ion it self t o become a Wor ld
SuperCity. Hand-in-hand with this initiative,
the GTA should strive to become host to major
centres of excellence in activities such as higher
learning, entertainment, the arts, fashion, and
multimedia publishing.
It is too soon to evaluate the impact of
telecommunications on cities, as technical ad-
vances require time to diffuse - (it took the
telephone more than 50 years to reach 30?? of
households) but it is safe to say that a GTA
Network will have tremendous economic po-
tential that all GTA municipalities could capi-
talize on, considedng the market potential and
resident expertise contained within the GTA
boundaries. The GTA provides a perfect test-
ing ground for new technology, The GTA
Network should strive to ensure that advanced,
competitive telecommunications services are
available to provide the GTA with a competi-
tive edge in a world
nornic activities.
of internationalized ec~
10
Rec ommendat i ons
.
mat econ om i c d evel opm en t st r a t e-
gi es wi t h i n t be GZA i n cl u & t bepm t n ot i on
of exi st i n g t el ecom m u n i ca t t i ca p a bi l i -
t k s i n t be GZA a n d z d t i m u t el y t be ca p a -
bi bl i es of t be GT A Net wor k .
.
Zba t a GT A I n t er n et pr esen ce wi t b
con si st en t pr esen t a t wn a n d n a m ga t wn
p r oced u r es sboa d d be d evel bped a s a f i r st
or d er of pr i or i t y.
THE GTA CONNECTED
THROUGH A SEAMLESS AND
ACCESSI BLE NETWORK
.
Op en Net wor k S t a n d a r d s
.
GTA Gover n m en t s Cbn n ect ed
.
Pu bl i c Access t o Net wor k
.
Accessi bl e
There are two main thrusts of a GTA
Network; to connect the 35 municipalities
within the GTA to each other with a compat-
ible communications system and to provide
common information content on the Network
to the community, from wherever they wish
to access the Nehvork.
Once the municipalities within the GTA
are connected with common basic services
such as E-mail and conferencing it will be-
come easier to discuss the provision of one-
Stop govemment service to tie community and
to integrate the GTA Network with other lev-
els of government. It will be most important
for the various municipalities to agree on the
type of information t-hey will be providing and
ensuring its availability 24 hours a day 7 days
per week. The municipalities will also, jointly,
need to address the issues of security, as well
as the accuracy and maintenance of records.
Finally, it is most important to ensure
that all levels of society, regardless of techni-
cal sophistication, have access to the GTA
Network.
A GTA Network has little chance of suc-
ceeding unless the participating municipal gov-
ernments adopt a compatible set of standards,
protocols and navigational tools for linking
service providers. To ensure that various mu-
nicipalities are connected, guidelines, policies
and standards will need to be developed. The
implementation framework will need to agree
on priorities, phasing, long and short term
action plans, assignment of responsibilities, fi-
nancial requirements, partnerships and fund-
ing sources. Security and monitoring issues
will need to be addressed. As networks be-
come more complex, so does their managem-
ent.
The GTA Network should be viewed as
a single and compatible collection of inter-
comected networks, content sources and selv-
ices governed by a consistent framework of
policies and regulations.
Although the user will treat the GTA Net-
work as a single system, the same type of tech-
nology does not have tc) be used throughout.
The network should recognize and build on
various infrastructure types (cable, telephone,
wireless and satellite). Similarly, as more and
more electrical appliances become intercon-
nected to extend the reach and range of the
consumer in the house (TV, VCR, computers,
CD players, personal communications devices.)
they should each be capable of hooking up
to the network.
The development of a GTA Network
should be promoted because it is a cost effec-
tive way to increase the qual-
ity of service and efficiency for
everyone in the GTA. A phi-
losophy of universal access
and low entry fees should be
fundamental to the develop
ment of the GTA Network.
Its overall goal should
be the provision of service and
outreach to the community.
Tbemoreinfbrmdionbigb wa y s conwintotbe
borne, tbe more likely tbe cost willgo h- becaase
of tbe compelitwe delivery a n d peopl e wi l l st a t t f o-
ca si n g on wba t i s reaUy important - tbe content and
services avaikbk ...
Mik e Bin de r ADM S
~ ~o~
. on Te e h n oIo-
gies an dTeleeommu n ieat ion s for t h eFeder al Depar t -
men t of In du s t r y (2 ma da .
11
Personal computers bave moved computer
science awayfmmlbepumly tecbnicalimperativeand
computing is mhgwtbeexchshm~ oj~a~,
government and big business. It is being cbannelled
directly intotbe bandk of veycreative in&idwaLs at
aillevek ofsociety, becowng tbe means fwcreatwe
expression in botbits aseanddiwelopment. tbemeans
and messages of multimedia will become a bknd of
tecbnicalandartistic achievement.
N. Negroponte.
Rec ommendat i ons
.
l %a t a l l m u n i ci pa l i t i es wi t h i n t be
GTA com m i t t o t be cr ea t i on of a sea m -
l ess, ca r r i er i n d epen d en t , GT A Net wor k
ba sed on open st a n d a r d s.
.
Tba t a l l m u n i ci pa l i t i es wi t bi n t be
GT A com m i t t o t be d evel opm en t of t be a p-
pl i ca t wn s r equ i r ed t o &l i ver on e-st op
gover n m en t s er vi ce a n d p xi bl e i n f or m a -
t i on a ccess.
.
Tba t a l l m u n i ci pa l i t i es wi t bi n t be
GT ~ p a r t i ci p a t e i n t be co-or d i n a t ed pr o-
vi si bn of GT A-wi & I n for m a t i on S er vi ces.
12
THE GTA - A VI RTUAL
GOVERNMENT FOCUSED ON
SERVI CE DELl VERY AND
COMMUNI TY DEVELOPMENT
.
.
.
.
.
.
.
.
GTA - Lea d &i n T el ecom m u n i ca t i on s
En u bl ed Appl i ca t i on s
Ef f ect we a n d Ef f i ci en t S er vw eDel i v-
er y Acr oss GTA
Com m i t t ed Pa r t n er sh i p Acr oss GT A
On e S t op Gover n m en t S er vi ce
Pol i ci es t o En cou r a ge Pr i va t e I n -
vest m en t a n d At t r a ct Kn owl ed ge
Ea sed Devel opm en t
GTA-wr d e R OW Ma n a gem en t S t r a t -
egy.
Tel ecom m u n i ca t i on s Tech n ol ogy i n
Pu bl i c Ad m i n i st r a t i on
En ba n cem en t of T el ecom m wd ca -
t i on s I n f r a st r u ct u r e (Pu bi 3c/Pr i va t e
Pa r t n er sh i ps]
I n an era of continued financial restraint - the
re-engineering of govemment operations and
services through the application of communi-
cations and information technology has be-
come a priority the world over. The GTA is
ideally suited to be a leader in Information
Highway development because of the wealth
of opportunities being developed here and be-
cause of the public and private networks, re-
search capabilities, information technology and
content industries which have already located
here. Taking a lead role in network develop
ment would mean increased economic appli-
cations and improved services to GTA resi-
dents. A comprehensive, strategic effort to co-
ordinate network development among public
organizations, educational institutions and pri-
vate firms in the GTA should be a top priority
of a GTA government in order to showcase
the GTA as a leader in telecommunications.
A GTA Network combined with the con-
cept of One Stop Government Sewice would
provide effective, and efficient service deliv-
ery across the GTA; ensure access to informa-
tion and increase participation in the political
process. Commitment to staff training and em-
ployee development would not only ensure
quality application and data base development
but increase the use of telecommunications
technology in public administration.
On the ground, land use policies which
encourage knowledge-based development
and public right-of-way (ROW) policies which
encourage private investment would enhance
the available infrastructure demonstrating suc-
cessful public/ private partnerships.
Local government is a major user of in-
formation and communications technology
and many public semices are information in-
tensive - taxation, finance administration, a%
sessment, land use, zoning, tourism info, li-
braries, etc. Public sector organizations con-
tribute a significant market for telecommuni-
cations and information equipment yet rarely
use their market power to achieve economic
development objectives. Cities should moni-
tor development in the telecommunications
industry giving special attention to the impact
of new technology on their locational advan-
tages and assets. Municipalities within the GTA
must develop ways to draw upon private sec-
tor innovations to improve the performance
of govemment operations and to attract new
economic development opportunities.
Public records are an asset held in pub-
lic trust, and represent a unique and valuable
resource - local governments must ensure ac-
cess, security accuracy and maintenance of
these records. AS more information becomes
computerized, face to face information ex-
change so common to the local level of gov-
ernment, will become increasingly more valu-
able.
There are endless opportunities for uti-
lizing a GTA Network in health care, educa-
tion and business - tying the local level to
upper levels of government.
Ed u ca t i on . With an integmted network, local
education becomes more effective, equitable
and economical. Students at small schools
share the classes and teachem of larger schools.
Teachers get advanced tmining without travel
expense. Schools, community colleges, uni-
versities and libraries gain instant access to
each other and the world around them.
Hea lt h Se r vi ce s - e xp e r t physicians and ex-
pensive medical equipment are no longer con-
fined to one hospital, but are available to all.
Doctors are connected to new treatments such
as high speed computer imaging. Health care
professionals learn new techniques more
quickly. Insurance claims and patient records
are handled faster with reduced cost. The
power of connecting numerous and varied
resources enables local health care providem
to do their jobs better.
Bu si n ess. Workforce ret.mining and basic skills
training become more efficient through the
connection to local and regional education re-
sources. Businesses have access to previously
unavailable collections of data sources which
can merge to bring new insights and solutions.
Working at home via telec:ommuting helps the
environment and productivity. Communities
all attract new companies with this state of
the art system creating customers and jobs.
Gover n men t Town Hall meetings take on
new meaning when anyone can join without
traveling all the way to city hall. Each citizen
can access public records, job info, and tax
records, avoiding de-
lays and reducing
gover nment ex-
p e n s e s .
Tel econ fer en ci n g
shrinks government
travel expenses and
emergency personnel
are able to communi-
cate more quickly in
times of crisis.
Although, telecommunications infra-
structure of the future will likely be built largely
by private sector firms, local government can
encourage investment in this infrastructure by
making public rights-of-way available for pri-
13
14
vate fibre optic systems and by providing in-
centives to ensure that this infrastructure serves
all points of the community; in short, identify-
ing opportunities for public/ private coopera-
tion. Telecommunications infrastructure is
currently tied to existing local infrastructure -
especially utilities, water, sewer, all located
within the public ROW, over which the local
government has significant authority and con-
trol. Local government should retain that con-
trol and take an active role in promoting a
GTA-wide ROW Network management strat-
egy.
Without a doubt, the sharing of GTA
infrastructure could accelemte the evolution
of a GTA Network and prevent unnecessary
cost duplication. However, in an environment
where the telephone, cable companies, pub-
lic utilities and government are competing for
the same business, sharing will be difficult.
Government can act as a catalyst and where
the public sector is considering building their
own telecommunications systems, public/ pxi-
vate joint ventures could be used to stimulate
private sector initiatives.
Municipal employees should be edu-
cated about how to use the Info Highway and
informed about its potential for soaal and eco-
nomic development and job creation. Com-
munity networks appear to be good starting
points for information and service delivery
mechanism for municipal government. Organi-
zations must turn from technology per se to
examining the information process and the
value of the information.
To apply technology to public services
not only improves the skills of municipal em-
ployees - but by utilizing telecommunications
information technology in their own organi-
zations, cities are able to develop/ provide
more flexible service and to ensure efficient
functioning of the urban administration. Cit-
ies are natural laboratories for technological
innovation. Policies which encourage new
uses of technology at the local level are es-
sential.
Rec ommendat i ons
.
Tbat a l l m u n i ci pa l i t i es wi t bi n t be
GT A, r est r u ct u r e Service d el i ver y t o t a be
a d va n t a ge of t el ecom m u n i ca t i on s, t op t w-
vi & a ccessi bl e, on e-st op goven m z en t ser v-
i ce a t t be l oca l l evel .
.
Tba t m u n i ci >a l i n f r a st r u ct u r e a n d
R OWp ol i ci es be d evel bped on a GTA-wi d e
ba si s t o en cou r a ge t el ecom m Un i ca t i on s i n -
f r a st r u ct u r e d i wel bpm en t a n d a n y i m p eh -
m en t s a n d ba r r i er s t o i t s d evel opm en t
sbou l d be i d en t z j ?ed a n d r em oved .
B
Zba t t be GZAgover n t n en t (s], i n cl u d -
i n g a l l m u n i ci >a l i t i es wi t bi n t be GT A, com -
m i t t o t be on -goi n g pr of ess i u n a l d evel op-
m en t of st a f f i n t be u se a n d a p p l i i x z l i on
of t eh com m u n i ca t i on s t o i m pr ove gover n -
m en t ser vi c e &l i ver y.
15
GTA Network:
A Telecommunications Vision for the GTA
A Report by the GTCC Telecommunications Steering Committee
APPENDIX
GO Net and t he Ont ar i o
Net w or k I nf r ast r uc t ur e
Pr ogr am me
The Canadian Radio Television and Tel-
ecommunications Commission (CRTC) has
made recommendations on the Information
Policy Framework which affect all levels of
government as well as the private sector. The
Province of Ontario has produced a position
paper on telecommunications - Enabling On-
tarios Future Aug 92 and is implementing their
recommendations through the ONJP office -
Ontario Network Infrastructure Program.
ONIPS Full Speed Ahead report was written
June 94 and can be considered an Annual
Report documenting their activities in the first
year of operation. ONIP has earmarked $20
million toward the implementation of various
networks in the Province (including Toronto
Freenet, National Capital Freenet, Ontario
Learning and Technology Exchange Consor-
tium, Environmental InterNetwork and others).
The Province is also constructing its own in-
ternal network - GO Net, whose primary aim
is to interconnect the 24 provincial govern-
ment Ministries which, over time, will be ex-
panded to include special purpose bodies and
the broader public service.
Ont ar i o Mi ni st r y of
Tr anspor t at i on
The Provincial Ministry of Transportation is
heavily involved in developing Intelligent
Transportation Systems (ITS) and assessing
how these technologies could be deployed to
allow the public to use Ontarios highway in-
frastructure more efficiently and to conserve
energy and time by making more effective
choices about travel and route alternatives.
Successful deployment of ITS sexvices and
systems will achieve significant improvements
in safety, mobility, productivity and reduce
harmful environmental impacts, particularly
those attributed to traffic congestion known
as Transportation Corridor Management. Col-
laboration with the Ministry in the area of mu-
nicipal telecommunications can be foreseen
in two ways; use of the highway rights-of-way
for telecommunications infrastructure and the
incorporation of municipal GIS data into the
travel and traffic management programmed as
well as the public transportation management
initiatives.
Assoc i at i on of
Muni c i pal i t i es i n Ont ar i o
AMO is proposing a single network connect-
ing all Ontario municipalities over telephone
lines in order to facilitate communication - such
as E-mail, fax, messaging and file transfer
throughout the Province. There will be a cost
associated to being connected to this network,
but the cost will be dependant on the net-
work level already in place within the munici-
pality and region. Since this network will be
provided by a commercial carrier over tel-
ephone lines. Future economic progress in
municipalities will depend on a
large extent on interaci.ive access
to large data bases and special-
ized information. The munia-
pal network will allow Ontario
municipalities to exchange ideas
and innovations and undertake
more sophisticated collaborative
economic development activi-
ties. Municipalities will be inte-
grated with Provincial telecom-
munications infrastructure programs by inter-
connecting to other public netxvorks in On-
tario. Prior to commencing construction of a
Province-wide network, AMO is considering
a number of municipalities in which to run
pilot projects.
Pr ovi nc e of New Br unsw i c k
and Ser vi c e New Br unsw i c k
In September 1993, Premier McKenna ap
pointed a Steering Committee of Deputy Min-
isters, with a mandate to develop a strategy
for government to accelerate evolution of the
information highway in New Bnmswick. (The
Information Highway Secretariat). A Task Force
representing government, industry and
academia prepared a background report out-
lining the current situation and future poten-
tial. New Brunswick provides digital commu-
nications service to almost all its inhabitants
17
and already using the information highway to
deliver education, health and other services.
The potential exists for New Brunswick gov-
ernment to stimulate private sector develop
ment by acting as a model user/ customer. Eco-
nomic benefits from the strategic exploitation
of the info highway will include an increasing
competitive advantage for New Brunswick
enterprise and opportunity for specific new
industry to develop. Social benefits will in-
clude better, more effective and cost-efficient
provision of government services and infor-
mation and an improved quality of life.
The Service New Brunswick project is a
pilot project of the Ministry of Finance and
represents a major reform in the delivery of
government services. It focuses on customer
service and reducing costs by moving from
the present inefficient service delivery infra-
structure to a one-stop for-
tation, and the result is a
modernized service delive~ system that pro-
vides more convenient and less expensive gov-
ernment seMces for the public. The two pilot
SNB centres provide over 60 services and are
representative of 16 government departments,
under one roof and behind a single counter.
The public can pay a number of taxes and
fees, obtain licenses and permits, process
documents and get information on gover-
nment business. It is anticipated that the same
type of service will be provided by electronic
kiosk within a 30 minute drive - from every
resident in the Province - replacing the exist-
ing duplication of service.
Met r opol i t an Tor ont o and
Ar ea
Met r o Ut i li t i es Ta sk For ce
Th e Metro Utilities Task Force on the Evalua-
tion of the Fibre Optics Service (MUTF) was
formed in Januaxy 1 9 9 3 to investigate the fea-
sibility of the member municipal electrical utili-
ties installing a fibre optic communications
network to cover the Metro area (MAN). The
feasibility report was completed in January
1994, concluding that the provision of fibre
optic based services was a feasible business
undertaking, as a cooperative venture among
the utilities. The results and recommendations
of the study were presented to the Geneml
Managers and Cornrnissionem of the Utilities
in February 1 9 9 4 . Th e City of North York re-
viewed the report and recommended proceed-
ing with a Fibre Optic progmm as a joint co-
opemtive effort with North York Hydro, fur-
ther recommending that the Counals of the
other Metro area municipalities be requested
to do the same.
The electric utilities in the Metro area
recognize the benefits of a Metro-wide net-
work for electric utilities, but have not been
able to reach agreement to construct a joint
nemork, at this time, due to the vaxying lev-
els of computerization among the individual
municipalities. The Task Force continues to
meet and discuss standards and communicat-
ions protocol, while the individual utilities of
North York, Toronto and Scarborough are ac-
tively establishing fibre optic networks. Simi-
larly, the Public Utilities Commissions in North
York, Etobicoke and Scarborough are attempt-
ing to establish joint working relationships witA
their municipal counterparts. These initiatives
could form the fmt links in a Metro-wide net-
work of public utilities.
Met r o I nf or mat i on Syst ems
St r eaml i ni ng Commi t t ee
The Political Steering Committee for the
Review of Governance of Metropolitan To-
ronto directed in 1994 that the senior admini-
strative officials from the six municipalities
and Metro form a Inter-Municipal Streamlini-
ng Committee. The objective of the group is
to identify and implement opportunities for
inter-muniapal collaboration and streamhning.
The Committee will be addressing duplication
and opportunities to rationalize services to
reduce costs through enhanced municipal co-
operation.
The Inter-municipal Streamlining Com-
mittee has identified a number of priority ar-
eas within which to develop specific plans of
action and pilot projects: Human Resources,
Waste Management, Emergency SemiCes, Parks
and Information services. The mandate of the
Information Systems Sub-Committee is:
To extdore OD Dortunities to stream-line exist-
ing Dromams to achieve cost savinm and to
consider future DaItIHShiDS in the develop
ment of new technolow
which would DOSi-
tion Metropolitan Toronto commxitivelv.
The Committees workplan, concen-
trates on technical issues and includes: docu-
menting current information systems activities
of the individual member municipalities in Met-
r opolit an Tor ont o, as well as, exist ing
int er cor por at e net wor ks, joint pr oject s,
taskforces, and committees in the area of in-
formation systems and telecommunications.
The Committee is currently identifying
specific telecommunications projects in Metro
Toronto that address common needs and op
portunities, such as Internet, joint training, joint
purchasing etc.
Tel ec ommuni c at i ons Sub
Commi t t ee- Met r opol i t an
Tor ont o
I n February 1995, Metro established a
new Telecommunications Sub committee
which is an amalgamation of two former sub-
committees - The Special Committee on Cable
Television (which was authorized to meet with
representatives of the federal and provincial
governments to discuss cable television is-
sues and to enter into negotiations with the
cable industry) and the Telecommunications
Sub-Committee whose aim was to: promote
the intelligent aty; co-operate with the telecom
industry; showcase telecommunications; and
assist industrial growth. The new Telecom-
munications Committee shall continue with its
former mandates and in addition, will con-
sider matters regarding the installation of tel-
ecommunications infrastructure utilizing Met-
ropolitan road rights-of-way and associated
properties and economic development issues
pertaining to promotion and support of the
telecommunications industry. Recommendat-
ions of the Metro &ea Works Commission-
ers, with respect to fibre optic+ will report to
this Committee.
Met r o Net
Metro Net is the internal communicat-
ions network of the Municipality of Metr@
politan Toronto connecting some 4,000 indi-
vidual work stations in 3 major se-vice areas,
through a fibre optic backbone. Metro owns
some of the fibre optics in the network, for
example lines running along the Don Valley
Parkway, and leases the remainder from a
commercial carrier. With the exception of the
City of Toronto and several individual GIS di-
visions, including the City of Scarborough GIS,
none of the area municipalities are comected
to Metro Net. The potential connection of the
area municipalities, through their respective
City Halls, is currently being considered by
the GTA Telecommunications Committee who
are examining the potential of installing an
ISDN line to Metro Net a!! well as examining
connection through Internet.
Metro-wide Policy for Cable Installation
developed by Metro and Area Works Com-
missioners.
Cable companies cur-
rently apply to municipalities
to install cable (a large per-
centage are fibre) within road
rights-of-way and on other
municipal property, but there
is no consistent policy within
Metropolitan Toronto with re-
spect to addressing these ap
placations. h light of increasing numbers of
applications by various telecommunications
carriers, the six muniapal Work Commissione-
rs, along with the Metro Commissioner of
Tmnsportation, have started meeting regularly
to discuss the issues of telecommunications
and to develop a co-ordinated municipal com-
munications plan and a consistent policy with
respect to the accommodation of fibre optic
installations within municipal rights-of-way.
The objectives of a co-ordinated policy are to 19
promote equitable access to rights of way for
all potential licensed telecommunications pro-
viders; to ensure minimum disruption to
streets; to ensure compensation to municipali-
ties; and to promote competition and imova-
tion which will help ensure that Metro busi-
nesses will have the telecommunications serv-
ices they require.
The application of the Metro-wide policy
will result in the construction of a Metro Net-
work, connecting all municipal governments
within Metro. In addition to increased com-
munication capability, a Metro Network would
have immediate applications for the synchr~
nized traffic signals and unified mapping ca-
pabilities. A Metro network would also a.sist
with the implementation of the AMO provin-
cial network and will further the goals of the
GTCC Technology Sub-committee which
hopes to connect all municipalities within the
GTA.
Publ i c Sec t or
Tel ec ommuni c at i ons
I nf r ast r uc t ur e
The first Public Sector Telecommunica-
tions Infrastructure was proposed within the
region of P&l The Region and
the City of Mississauga issued
a proposal which envisioned
construction of a 300 km pri-
vate ATM network to serve
local and regional gover-
nments, police, fire, libraries,
hospitals and schools, among
other public sector organiza-
tions. The return on invest-
ment, primarily through cost avoidance had
estimated a 5 yea r pay back period. The result
would be a drastically improved network of
communications, 24 Hour City Hall capability
and a community wide network with a de-
creased dependence on private carriers. The
project was tendered but is currently on hold
pending evaluation of a strategic initiative of
Hydro Mississauga, to offer telecommunica-
tions services in conjunction with Ontario
Public Network.
20
Cent enni al Col l ege
The Bell Centre for Creative Communi-
cations at Centennial College opened in Au-
gust of 1994: Th e Centre represents an invest-
ment of more than 25 million dollars, applied
to the tmining and development of techno-
logically literate content creator in all Com-
munications AI-E disciplines. The facilities, in-
frastructure and curriculum of the Centre have
been carefully designed and integrated to
embrace the advances made possible by dig-
ital technology. The Centre is open to stu-
dents, working professionals and corporate
training groups.
The centre represents a significant alli-
ance between Centennial College and key in-
formation technology organizations in the pr-
ivate sector including Bell Canada, Silicon
Graphics, Alias Research and Sony of Canada.
Course enrolment at the Bell Centre is only
one route for corporations which need to train
and retrain their people. The Centre is also
interested in pursuing partnerships with vari-
ous groups to further develop their curricu-
lum and to meet the needs of the outside cor-
porations and government departments. Vari-
ous projects are being considered, including
the development of an information data base
for 24 Hour City Hall kiosks, as well as the
development and maintenance of Internet
HomePages.
SMART Tor ont o
SMART Toronto is a newly-formed, non-
profit organization dedicated to providing
support and awareness for all information
super highway initiatives and applications.
SMART Torontos goal is to position the Greater
Toronto Area (GTA) as a leading centre for
the development of commercial applications
for the information super highway by the year
2000. SMART Torontos Steering Committee in-
cludes: Ted Rogers, CEO Rogers Communica-
tions Inc., Silicon Graphics President, David
Black; Elizabeth McLaren, Assistant Deputy
Minister, GTA, among others. SMART Toronto
is hoping to increase current participation of
40 organizations to 100. Other major cities and
information hubs such as Californias Silicon
Valley and Singapore have similar initiatives.
SMART Toronto organizers plan to offer a tan-
gible, broadband network using ATM tech-
nology, which will link various centres around
the Toronto area, including the planned trade
centre and the existing Metro Toronto Con-
vention Centre, hotels, schools and others.
Smar t 95
I n September, 1995 the World Teleport
Association will be holding its Annual Gen-
eral Assembly in Toronto - entitled Smart 95.
Th e World Teleport Associations mission is
to promote the imovative and creative use of
telecommunications both globally and locally.
Teleports are integrated telecommunications
centres which are being developed all over
the world. k many cases, teleports merge
communications, real estate, economic devel-
opment and urban plaming to create intelli-
gent buildings, or even intelligent cities of the
future. Most of the world leading cities have
teleports which can act as catalysts for growth.
The international conference will have three
days of seminars and workshops as well as a
demonstration of the smart city of the future.
Tor ont o Regi on Li nk age
St udy
The goal of the Toronto Information
Linkage Study has been to review the infor-
mation infrastructure in the Greater Toronto
Area (GTA), to compare progress and use of
information technology with international
competitors and to identify specific strategic
initiatives that can be taken to accelerate the
use, diffusion and benefit of the new tech-
nologies. The report concludes that much of
the basic infrastructure is already in place in-
cluding significant fibre optic, cellular, satel-
lite and the necessa~ digital and switching
technologies to integrate into a comprehen-
sive system with a pervasive local coverage
and a strong global reach. However, the re-
port also indicates that the GTA is not on the
forefront in the development and use of com-
munication and information technologies with
the exception of multimedia and animation
software; that there are relatively few experi-
mental trials of new communications technolo-
gies as compared to other countries and that
our competitors have undertaken large scale
projects to showcase new technologies as part
of an urban-economic strategy. The report
proposes four goals to improve connectivity
in the GTA: To provide seamless connectivity
among people, institutions, government and
business; to maximize gov-
ernment use and access; to
maximize community use;
to develop a GTA Informa-
tion Linkage Strategic Plan.
For more information con-
tact the OGTA.
21
Metro Hall
55 John Street, Suite 202
Toronto, Ontario
M5V 3C6
September 28, 1995
Dr. Anne Golden
Chair
Greater Toronto Area Task Force
393 University Avenue
20th Floor -2001
Toronto, Ontario
M5G 1E6
Dear Dr. Golden:
I have taken the liberty of providing you with some of my thoughts on the issues with
which you are dealing. I have served as a municipal politician for 23 years; first as an
alderman in Etobicoke, then on the Etobicoke Board of Control and therefore automatically
a member of Metro Council, and finally as a directly-elected Metro Councillor.
I have seen a significant change in the role of municipal government over those years, and
in particular an increase in the complexity of the issues facing municipal governments.
Since being directly elected, I have served in a variety of roles including chair of the TTC, a
member of the Police Services Board, a member of the Metro Toronto and Region
Conservation Authority and a member of Metros budget committee (now referred to as the
Financial Priorities Committee).
I have remained in politics at the municipal level all these years because I care passionately
about local government issues. The current review of governance in the GTA could have
wide-ranging ramifications for the future of Metro Toronto (as opposed to the Metro
government). It is so important that the decisions taken are the right ones, and not just the
expedient ones.
I attach my comments and hope you give them your due consideration.
...
LG/lkm
cc: The Honorable Allan Leach
Minister of Municipal Affairs and Housing
SUBMISSION TO THE GOLDEN TASK FORCE
FROM
LOIS GRIFFIN
METRO COUNCILLOR
REXDALE-THISTLETOWN
1 ) The municipal tax and assessment systems must be reformed. No matter
what new structure is proposed, unless the issue of municipal tax
reform is dealt with, municipal government in the GTA will not work
effective y.
There are really two problems. The first is the assessment inequities within Metro. There
must be reform to remove this inequity. I note the City of Toronto proposal tends to sweep
this issue under the carpet. It suggests that the funding of regional services should retain
the existing Metro assessment formula (see page 22 of the City of Toronto proposal where
they advocate the status quo for funding regional services). This approach is certainly
unacceptable to my constituents, who for many years now have shouldered an unfair
proportion of the tax burden because of the outdated assessment system. Reform is needed
and it is needed now.
The second problem is a tax problem, partly the result of the outdated Metro assessment
system, but more related to inequitable government subsidies, and Metro services used by
the residents beyond Metro but not supported by them through their property taxes. This
has caused the problem of Metro businesses being unable to compete with the rest of the
GTA. There are many ways to resolve this issue. The main thing is to resolve it and
resolve it now.
2 ) Some form of regional government is necessary.
The existing regional services are by and large the services that form the back bone for any
large urban area. They are the services that should have uniformity across the region, not
handled by each individual municipality. The suggestion that things such as transit and
police can be run by a committee of Mayors is a suggestion that I just cant buy. Having
served on both the TTC and the Police Services Board, I know how much time must be
devoted to properly oversee those operations. It is not the sort of time commitment that
Mayors can provide. 1 also suggest that this approach might well cost more money.
Mayors are elected to represent their municipalities and by definition to be advocates for
making sure that their municipalities are well-served and get their fair share. It has in
the past fostered the approach of 111 support your subway extension, if you support
mine. (Just check the recorded votes on this issue to see what I mean.)
3) A regional council should have legislative authority to govern. And it
cannot just be an advisory board (as some have suggested).
Regional governments need to be given the authority to govern and make decisions. Right
now, regions have their hands tied by excessive Provincial legislation and cost-sharing
arrangements. As an example, there is something wrong with a system of government that
requires regional governments to go through an extended process of public hearings and
debate before arriving at a decision on subway extensions, and then allows a handful of
provincial politicians to overturn that decision without any public debate whatsoever.
Municipalities must have the tools, both legislative and financial, to make decisions. This
should be a fundamental premise of any reform. The current system makes a mockery of
accountability.
4) Regional councillors should be directly elected so that people know who
is responsible for making the decisions and so that councillors can
focus on regional issues. The system under which I served prior to
1988, where members were elected to the local council and only served
part-time on Metro, did not work well. Far-reaching decisions were
often made without proper consideration or public accountability. The
system fostered parochialism and did not allow a proper focus on
regional issues.
It is interesting to look back at the reasons the Robarts Commission recommended direct
election. It was to let the voter choose who would be responsible for regional issues, to
allow politicians a greater focus on regional issues, and to raise the publics awareness of
regional issues. Certainly the newspapers have done an admirable job of the la t t er s in ce
direct election to Metro. I served as a local Councillor, then as a member of the Board of
Control and hence a Metro Councillor, and finally as a directly-elected Metro Councillor.
I am sure that it will be very tempting to return to a form of indirect election, or serving on
both a local and a regional Council. I would implore you to resist the temptation. First of
all, the time requirements are such that you cant do both jobs the justice they deserve. The
public expects that if you serve on the local council you will spend the time required on
local issues. Regional matters will again become secondary. Some have urged this
approach because they feel that the regional representatives should be delegates of the
local municipality, representing the views as established by the local Council. The fact is,
that on regional issues, the concerns of my constituents may be more closely aligned to
those in the abutting ward of an adjacent municipality rather than in another ward of my
own municipality. A return to indirect election will be a return to the parochialism of the
past. The biggest complaint that 1 get from local Councillors is that we at Metro spend all
our time talking about regional issues! To me that is proof that Metro works.
5 ) Regional government structure in the GTA should ideally cover a large
enough geographical area so that the current inter-regional issues can be
dealt with properly,
I have left this point to the last because it is probably the most difficult to accomplish in a
short time. Boundaries are always a problem, because no matter where you draw them,
someone can always argue that they should be extended farther. The issue of inter-regional
planning, while important, is not as critical as some of the other issues in the sense that
there are other mechanisms to deal with the problem. The Province for example could
decide to provide a larger role in facilitating inter-regional planning. What should not be
done is to fill the gap with more special purpose bodies, agencies or commissions, that are
unelected and therefore not accountable.
CONSERVATI ON AUTHORI TI ES
BRI EF
TO THE
GREATER TORONTO AREA TASK FORCE
SUBMITTED BY THE CHAIRS OF THE
HALTON REGION CONSERVATION AUTHORITY
CREDIT VALLEY CONSERVATION AUTHORITY
METROPOLITAN TORONTO AND REGION
CONSERVATION AUTHORITY
LAKE SIMCOE REGION CONSERVATION AUTHORITY
CENTRAL LAKE ONTARIO CONSERVATION AUTHORITY
GANARASKA REGION CONSERVATION AUTHORITY
August 17, 1995
TABLE OF CONTENTS
CONSERVATION AUTHORITIES BRIEF TO THE GREATER TORONTO AREA TASK FORCE
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
CONSERVATION AUTHORITIES AND WATERSHED MANAGEMENT I N THEGTA
Who AreWe? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Community Based . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Figure 1Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Our Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
The Principles of Watershed Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
.. .. .. .. ..
ROOM
Tne watersned unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Watershed Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Watershed Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Our Changing Role . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Watershed Planning and Municipal Land Use Planning . . . . . . . . . . . . . . . . . . . . . . . . 9
Conservation Lands-A Public Resource . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Figure 2 Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Accountability and Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
FOR IMPROVEMENT
Eliminating Duplication . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Table 1 -Local CA/Provincial Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Improving Service Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Budgets and Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
CONCLUSIONS AND RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21-22
CONSERVATION AUTHORITIES
BRI EF TO THE GREATER TORONTO AREA TASK FORCE
OVERVI EW
Within the Greater Toronto Area (GTA) the population has grown from 1.5 million
in 1958 to over 4 million in 1995. This growth is projected to continue into the
future. To house and employ this growth will result in continuing land use change
and development.
The GTA Task Force is charged with making recommendations that will guide the
GTA into the 21st century. The focus of this work is on economic health and
competitiveness, infrastructure, municipal management, urban form and municipal
finance.
The GTA needs a growth management strategy that will not only accommodate
the anticipated population growth, but will also maintain its green infrastructure,
the natural web on which the GTA develops and grows. The protection of the
form, features and functions of these important natural resources which include
the valley and stream corridors, the Lake Ontario and Simcoe shorelines, the Oak
Ridges Moraine, the Niagara Escarpment and other headwater areas is key to the
environmental health of the GTA and must be recognized in any future growth
scenario.
Identifying the features, functions and Iandforms that are the components of the
green infrastructure is accomplished on a watershed basis by the conservation
authorities within the GTA. The watershed is the logical, common sense, unit on
which to base ecosystem management, it is water that supports and sustains life.
Within the watershed everything is connected to everything else.
The conservation authorities within the GTA are making this submission to the
Task Force to ensure that the natural environment is on the agenda in any
discussion relating to the future of the GTA.
We recommend to the Task Force that:
B the protection of our environment and the effective management of our
natural resources within the GTA must be part of your decision making
process,
1
B the watershed must be the basic management unit for environme
protection and natural resource management,
B watershed based planning andl management must be a component
planned growth management and human health,
B conservation authorities must be confirmed as the agencies respo
for watershed management,
B
in order to achieve streamlining and to eliminate duplication of s
a comprehensive approach to the delivery of natural resource mana
and environmental protection programs must utilize conservation au
as the locally based one-window agency, as proposed in a brief p
by the Association of Conservation Authorities of Ontario, for prese
to the Province of Ontario, Restructuring Resource in O n t a r i o
B the provincial government must rationalize its water management
strategies, with a much greater emphasis on groundwater protection
management ,
B there must be a rationalization of the financing of all aspects of
watershed management carried out through the conservation autho
B the headwaters, valley and stream corridors, the Oak Ridges Mor
Niagara Escarpment and the Lake Ontario and Simcoe waterfronts m
the green infrastructure of the GTA and their features, functions a
Iandforms must be protected,
B the conservation authorities within the GTA are flexible and willin
embrace change for the betterment of their watersheds and recogni
as the structure and governance of the GTA evolves, we must chan
meet the demands of the future in a renewed and revitalized GTA.
This brief is respectfully submitted on behalf of the Chairs of the conserv
authorities within the GTA. We hope that it will assist the Task Force in
deliberations.
We look forward to playing a continuing role in the GTA reform process.
2
CONSERVATION AUTHORITIES AND WATERSHED MANAGEMENT IN THE GTA
Who Are We?
Conservation authorities are community based environmental organizations
responsible for managing natural resources on a watershed basis. There are seven
conservation authorities whose combined areas of jurisdiction cover the GTA and
beyond, From west to east, we are the Halton Region, Credit Valley, Lake Simcoe
Region, Metropolitan Toronto & Region, Central Lake Ontario, Ganaraska Region
and the Kawartha Region Conservation Authorities.
Because our area of jurisdiction is based on the physical limits of the watersheds,
as opposed to a political boundary, our jurisdictional limits do not coincide directly
with the GTA boundary, as presently defined. Figure 1 illustrates the relationship
between physical and political boundaries and those areas where watersheds
extend outside the GTA.
The preparation of this brief has been a joint effort of six of the conservation
authorities within the GTA. The seventh, the Kawartha Region, has a very small
part of its watershed within the Region of Durham as illustrated in Figure 1 and,
therefore, it is only partially within the GTA. Due to the relatively small area within
the GTA and the fact that the Kawartha Authoritys interests are centred more to
the north, they did not participate in the preparation of this Brief, They have,
however, reviewed the brief and have indicated their support for the
recommendations.
Community Based
The concept of community based watershed management is unique to Ontario. In
1946, the Province of Ontario enacted The Conservation Authorities Act (CAA)
permitting municipalities within a watershed, or group of watersheds, to form a
conservation authority to conserve and manage natural resources. A watershed,
under the CAA, includes all of the lands draining into a river system.
A conservation authority can be formed only by petition of the municipalities in a
watershed; i.e., the local people must initiate the authority. This local initiative
ensures local involvement and perspective in the development and implementation
of authority programs and projects as well as a willingness to share in the cost at
the municipal level.
3
\
\
\
\
Lake Ontario
FIGURE 1
The principles of local initiative and cost sharing partnerships remain valid and have
been expanded. Local initiative now encompasses hands on participation by
Iocal groups. Over the last five years, conservation authorities have returned to
basics to involve the community, directly, in the work of conservation. This has
had a tremendous, positive impact on how we deliver our programs and has
brought us closer to the communities we serve. Our cost sharing partnerships now
include local and community groups, many providing in kind contributions of time
and Iabour, corporations, and committed individuals.
We also provide an opportunity for the public and business to support our
programs financially through our Conservation Foundations which have raised over
$3,800,000 within the GTA over the last five years,
Our Vision
Each conservation authority within the GTA has developed its own vision or
mission statement that reflects the above sentiments as well as their own specific
desires based on the needs, objectives and individual characteristics of their
watersheds.
We share the same vision for the future GTA recognizing that one of the major
problems facing us is the issue of growth management and all of the pressures
that come with providing for an additional two million people. We understand the
need to balance the economic and environmental health of the region and the
problems of financing the infrastructure necessary to accommodate the projected
growth.
Our vision for the GTA is one where:
B
the watershed is the basic unit for natural resource management;
B
the green infrastructure is maintained, expanded and, where
necessary. regenerated;
B
urban growth is achieved in a sustainable way with clean water,
linked green spaces, and healthy communities.
We believe this vision is attainable and that, no matter what the GTA ultimately
looks like, the achievement of this vision must be a basic building block for the
future. We believe that the conservation authorities within the GTA, offer an
effective and efficient mechanism to achieve this vision by working with the
province, the municipalities and the community.
5
Natural resource management and environmental protection must be done on a
watershed basis and conservation authorities, no matter what their size, provide
the mechanism that brings all stakeholders together to achieve a common goal
and allow for the coordination, linking and facilitation that is essential to the
management of water and our other natural systems.
The Principles of Watershed Management
In order to deliver effective watershed management it is necessary:
B to conserve ecosystems in a sustainable manner or, where degraded, to
regenerate;
B to consider the entire ecosystem and all interrelationships amongst
components in a comprehensive way;
B to effectively incorporate community interest in any watershed
management decision;
. to ensure management decisions that are consistent with matters of
provincial policy and direction;
B to ensure simplicity, efficiency and cost-effectiveness; and
B to develop and maintain intermunicipal and interagency coordination and
cooperation.
The Watershed Unit
Managing on a watershed basis is fundamental and has become broadly accepted.
The management of natural resources takes place most effectively within the
context of a natural resource system, an ecosystem. A watershed provides an
ecosystem wherein everything is connected to everything else; where activities
upstream impact on conditions downstream.
The authorities work in conservation and stewardship of renewable natural
resources on a watershed basis puts them in the position of technical expert on
land-water issues. Because of our unique area of jurisdiction, and recognizing that
6
natural systems do not follow political boundaries, conservation authorities
work across jurisdictional boundaries and require an understanding of the
complexities of ecosystem management. The management of our natural
resources on a watershed basis lends itself to the opportunity to address
jurisdictional gridlock by enabling one agency to develop and implement
resource management throughout the watershed. This not only supports a
ecosystem approach based on the input of the community, but is more cos
effective, accountable and consistent.
Watershed Management
Loss of life and property due to flooding, erosion or slope instability results
poor management of the watershed, particularly from a lack of understand
the impacts of human use on natural functions and relationships within the
In the past, our efforts were directed at assuring our own convenience and
i.e., moving rain waters off the streets as quickly as possible and utilizing
valley lands and lakeshores for development to maximize our developable l
These proved to be costly practices which not only directly affected the p
involved, but also degraded our natural resource systems, Dams, channels
erosion control structures provided protection, but continued to alter wate
systems and to affect natural processes within watersheds,
We have considerably increased our knowledge and understanding of the w
which natural systems function and of the potential impacts that can occu
these systems when interfered with by human activity. Just as the smoke
billowing over a community once represented economic prosperity and wo
be viewed as pollution; so too must we realize that the current measure of
economic growth - housing starts - means a continuing loss of greenfields and
continuing pressure on the health of our natural resource systems.
The GTA is recognized worldwide for its green resources. Economic gr
must be balanced with environmental protection to maintain our quality of
Watershed Strategies
A key initiative necessary to move toward a watershed based ecosystem
is the development and implementation of individual watershed strategies
strategies involve all stakeholders including municipalities, interested citize
7
ministries and other public agencies; identify the characteristics and condition of
the natural heritage system within the watershed; establish a vision for the
watershed; identify the protection, management and restoration requirements and
the programs necessary for their achievement; and agree upon the responsibilities
for, phasing and funding of implementation.
The Waterfront Regeneration Trust in its recent, Lake O
ntario Greenway Strategy,
states that:
Over the past several years, watershed strategies of varying kinds have
been prepared for several tributary rivers (i.e., to the Greenway] including
the Credit, Don, and Lynde Creek...ln most cases, strategy development is
led by the local conservation authority, in partnership with municipalities and
local interest groups....
Watershed strategies are intended to outline how characteristics of the
watershed (including water, land, and habitat) can be protected and
enhanced as land uses change. They also set the stage for the preparation
of subwatershed plans, which include further details on water resource
management strategies. Sub watershed plans address issues such as
storm water management, and have most frequently been used in association
with rapidly developing areas....
Both of these mechanisms have the potential to maintain water flow regimes
and significantly improve water quality and habitat connections in waterfront
tributaries, and they should be regarded as important planning tools in all
watersheds feeding into the Green way.
With a watershed/subwatershed strategy in place, all stakeholders, including the
municipality (ies) within the watershed, will have agreed upon which lands are
suitable for development and on the performance standards necessary for
protection, enhancement and/or restoration of the natural heritage system. The
core areas, corridors and connecting links of the natural heritage system are
identified as part of the development of the strategy.
Maintaining the source areas for the GTA watersheds is a significant component of
any watershed strategy. The conservation authorities in the GTA have been strong
advocates for the protection of the headwaters of their watersheds in the Oak
Ridges Moraine and the Niagara Escarpment. We are partners in the development
8
and implementation of strategies to ensure these vital resource areas cont
provide base flow for healthy watersheds, areas of critical recharge for
groundwater, and opportunities for the public to experience and enjoy the
and diversity of the natural environment.
The establishment of the Don Watershed Task Force, in 1992, by The Me
Toronto and Region Conservation Authority, and the work of The Credit V
Conservation Authority, on a sub-watershed basis, are proving that a
watershed/subwatershed approach can work and can build the type of
relationships and partnerships required to move beyond planning and into
implementation. As a result of this work, local communities are realizing the
importance of good land management to ensure watershed health and that
protection of the renewable resource base is less costly than future remed
restoration measures.
Our Changing Role
The role of conservation authorities over the past fifty years has been to p
and implement plans, on a watershed basis, to address local natural resou
management issues. The range of initiatives and their focus varies in respons
the natural conditions within the watershed and to the interests and needs
local community, Within the Greater Toronto Area, a particular challenge is t
address the issues associated with the impact of potential land use change
watershed systems and to ensure that ecosystem values are protected. G
management is a critical component of effective watershed management.
Just as our understanding of watershed management has evolved over the
fifty years, so too has the way in which conservation authorities deliver w
management . The concentration of the early days on remedial measures sp
to solving individual resource management problems; e.g., flooding, erosio
soil loss, has been replaced by a broader, holistic approach. Conservation
authorities do not deliver only floodplain management but rather, an integ
community based approach to watershed management.
Watershed Planning and Municipal Land Use Planning
Within the municipal planning process, natural resource features such as,
valleys, stream corridors, wetlands, and shorelines have traditionally been
considered constraints to development. The approach taken has been to
establish technical conditions that must be met in order to achieve develo
9
The objective has not been to protect our resources but rather to accommodate
development, generally at the expense of environmental quality.
We acknowledge and support the responsibilities of municipalities with respect to
land use planning decisions and the primacy of their Official Plans as foundations
for growth and development. Conservation authorities provide valuable input to
and comment on municipal planning proposals and provide the environmental
component necessary to maintain balance within the future GTA. The lands
recognized as natural areas, within the policies of the new Planning Act, are those
lands which authorities have historically restored, protected and conserved, and
advocated the protection of through the planning process.
Conservation authorities have recognized and documented the need to streamline
the commenting and approvals process and have been active in developing
solutions to serve their municipal and provincial partners and the community in a
professional and timely way. The Memorandum of Agreement (MOA) is one
mechanism being used to achieve streamlining whereby a conservation authority
provides comments on planning proposals on behalf of The Ministry of Natural
Resources and other ministries. There are many examples of such MOAS within
the GTA and throughout the province, MOAS are seen by conservation authorities
as an interim measure to a more comprehensive approach to natural resource
management reform being advocated by The Association of Conservation
Authorities of Ontario. This approach is discussed further on in this brief.
Conservation Lands - A Public Resource
The resource lands that form part of the linked ecosystem include the waterfronts,
the river valleys, the Oak Ridges Moraine, the Niagara Escarpment and other
headwater areas. Figure 2 depicts these resources and their relationships very
well. These lands form the green infrastructure of the GTA. They provide the
natural web on which the GTA develops and grows. The protection of the form,
features and functions of these important natural resources is a major component
of watershed management. Our ability or inability to protect these resources, will
determine the environmental health of the GTA.
Conservation authorities in partnership with the community, the municipalities and
the province, provide an important mechanism for the protection and management
of these important natural features, Iandforms and functions.
10
o 10 20
Conservation authorities have protected valuable natural resources through
acquisition. Public ownership has been important where the nature of the resource
is such that its use would create a risk to life or property or where it is critical to
the ecosystem and must remain unaltered to perform its natural functions. Public
ownership is also appropriate where public use and appreciation of the resource is
an objective. Public ownership has ensured effective resource management and
provided benefits of public access and use. Through access to and enjoyment of
these lands, the public develops an awareness, appreciation and respect for
ecological values.
These publicly owned lands provide the valuable greenspace component of the
open space system for the GTA, the most populous area in Ontario. Within the
built-up area these greenspace lands may be limited to the waterfront and to valley
and stream corridors; however, across the GTA they serve as both the Provincial
Park and Regional Park systems. As change continues in the GTA, the existing
green infrastructure must be maintained and expanded to ensure the balance
between economic growth and quality of life.
Conservation authorities within the GTA have acquired 24,933 ha {61 ,565 acres)
of land. Our management of these lands is carried out in a manner that values,
respects and enhances their natural and heritage resources. We encourage uses
that are compatible with healthy ecosystems, respectful of the unique character of
the lands and sustainable in environmental, financial and physical terms,
Accountability and Governance
Conservation authorities are established as corporate bodies, to assure their
autonomy in making decisions on a watershed basis; however, an authoritys
members are appointed by its member municipalities and by the province, giving
them the ability and responsibility to represent those interests. At present,
membership on the six conservation authorities within the GTA is comprised of the
following:
82 municipal politicians
21 municipally appointed citizens
13 provincially appointed citizens
12
As in municipalities, authority decisions are made in meetings which are open to
the public and members of the public can easily access the authority member(s)
representing their municipality. Members of the authority who do not fulfil their
responsibilities to the satisfaction of the appointing body, can be removed from the
authority and replaced.
There are adequate mechanisms in place for the accountability of authority
members and their decisions, although they may not have been effectively used in
the past. Municipalities and the province can ensure the publics interest in the
work of the authority by giving their appointees a clear job description prior to
making appointments and by giving them clear direction of what is expected of
them. Further, appointing bodies should require appointees to provide regular,
comprehensive reports.
There are a number of improvements to be made in the current system for
delivering watershed management. There are both overlaps and gaps that need to
be addressed to ensure an ecosystem approach is being taken. There must be,
B a review and rationalization of natural resource management programs
between the province and conservation authorities,
B an Overall provincial water management strategy, as well as
B rationalization of funding arrangements.
Eliminating Duplication
Conservation authorities have, over the past year, been active in discussing the
above issues with the Association of Municipalities of Ontario, both specific to the
GTA and province-wide. The duplication in program interests exists between
conservation authorities and provincial ministries not with our regional or local
municipalities.
The Conservation Authorities of Ontario have prepared and circulated two
documents Blueprint for Success and Documenting the Opportunity
recommending improvements to the delivery of natural resource management
services to reduce duplication. As indicated earlier, there are many areas where
one window approaches have already been put in place to streamline the plan
input and review responsibilities of the conservation authorities and provincial
ministries. There are also one window agreements in place that deal with many
other natural resource management and environmental protection regulatory
functions. Table 1 provides details on the type and extent of these agreements.
An analysis of pilot projects from these examples has demonstrated that, through
consolidating approvals at the conservation authority level, there has been a 40
percent saving on the processing costs and a 35 percent reduction in approval
times,
There is clearly a need for a more streamlined and cost effective approach to the
delivery of resource management and environmental protection and to reduce
overlap and duplication. Based on the demonstrated success of the pilot projects,
The Association of Conservation Authorities of Ontario (ACAO) is preparing a
14
TABLE 1 - LOCAL CA/PROVINCIAL AGREEMENTS
PARTNERS PURPOSE SI GNED UNDER
NEGOTI ATI ON
CA-MNR Plan Review 17 8
Transferred to CA
CA-MNR Public Lands Act 9 5
Permits Transferred to CA
CA-MNR Stormwater Management 12 5
Transferred to CA
CA-MNR CA Coordinates Lakes and 6 7
Rivers Improvement Act
Permits
CA-MOEE Stormwater Management 7 2
Review Transferred to CA
CA-MOEE Water Resources Act 11 0
Permit to take Surface Water
Transferred to CA
CA-MOEE Part Vlll 8 1
Environmental Protection Act
Permits (Septic Systems)
Transferred to CA
CA-MOEE CA Implements Clean Up 29 0
Rural Beaches Program
15
proposal to the Minister of Natural Resources, Restructu
ring Resource Management
in Ontario, which provides a framework for the change that was advocated in the
Blueprint document and outlines a comprehensive approach to the rationalization of
natural resource management and environmental protection through a concept
defined as Community Based Watershed Conservation.
Conservation authorities are cost-effective and efficient organizations well suited to
provide a one-window approach. The proposed restructuring of natural resource
management delivery systems will enhance our ability to manage and protect vital
natural resources within a growing GTA.
There continues to be a lack of coordination between those issues associated with
surface water and with groundwater. The interrelationship between these systems
and their interdependence have become issues in the discussion of the impacts of
new development and, also, solid waste management. Contamination of
groundwater is not only a serious concern for community water supplies but also
for the integrity and health of our surface watershed systems which are fed by
groundwater. Current provincial policies and responsibilities for water-related
issues are spread across a number of ministries and the new government needs to
review how it is organized to ensure water quality and quantity requirements into
the future.
Improving Service Delivery
The brief Reforming the GTA, presented to the Task Force by the Regional Chairs
of Durham, Halton, Peel and York, looks at service delivery and states:
Some services (e.g. parks and recreation) are amenable to significant
diversity and local variation. Other services (e.g. welfare, policing) lend
themselves to broader standardization... the degree of diversity or
standardization simply depends on the nature of the particular service being
considered. The size of appropriate catchment areas is a function of this
diversity/standardiza tion...
Achieving optimal service delivery and management economies also
requires an institutional form that features differing catchment areas.
Economies of scale may suggest that a given service should be delivered at
a regional or GTA-wide catchment are, in order to limit unit costs.
Diseconomies of scale associated with too large a catchment area... may
suggest service delivery via a Iocal...catchment area.
16
Conservation authorities are continually reviewing their organization and structure
to ensure the effective and efficient delivery of watershed management programs.
Recent initiatives have identified opportunities to share certain common functions,
particularly in the area of administrative services, which are not watershed-specific.
Since the passing of The Conservation Authorities Act in 1946, there have been a
number of authorities formed and, as a result of changing community needs and
interests, reorganized. The Metropolitan Toronto and Region Conservation
Authority was formed in 1957, replacing four smaller authorities: the Etobicoke
(1 946), later including the Mimico; the Humber (1 948); the Don (1948); and the
Rouge-Duff in-Highland-Petticoat (1 954). This union permitted a broader
perspective to renewable resource management and a more substantial financial
base. In 1963, the Sixteen Mile Creek CA(1956), Twelve Mile Creek CA (1958),
Grindstone Creek, Joshuas Creek and thirteen other watercourses within Oakville
and Burlington joined together to form the Halton Region Conservation Authority.
These are only two examples of the type of boundary and jurisdictional changes
that conservation authorities have undertaken and that will be considered to
continue to improve the delivery of watershed management.
What is critical is that watersheds be managed on a watershed basis. The
grouping together of watersheds to achieve administrative efficiencies can be
achieved in any number of ways. The Conservation Authorities Act contains
provisions to accomplish changes in grouping and it has been used, as
demonstrated above, for this purpose. The municipalities within the watershed, or
group of watersheds, have the ability to determine and implement the most
appropriate administrative delivery system.
Budgets and Financing
Conservation authorities were formed on the basis of the user/beneficiary pays
principle, The management of renewable natural resources on a watershed basis
benefits the residents of the local community by their protection from the risks of
flood, erosion or slope instability and by the quality of life which they enjoy. Good
management of individual watersheds, cumulatively, contributes to provincial and
federal objectives and commitments for protecting, maintaining and improving the
Great Lakes system. Where goods or services are provided to individuals, user
fees are charged.
17
For the six conservation authorities within the GTA, the 1994 total operating budget was
approximately $38,000,000. This funding was raised as shown in Figure 3.
SOURCES OF FUNDING
1994 OPERATING $38,000,000
L
39.0%
Figure 3
There has been a significant shift in the proportion of conservation authorities
funding derived from the province, the municipalities and individual fees over the
past fifteen years reflecting substantial reductions in provincial grants and, as a
result, a corresponding reduction in municipal contributions.
Conservation authorities rely more and more on the generation of revenues from
the sale of goods and services. As you can see from Figure 3, these revenues now
constitute over 30 percent of our total funding.
Municipal funding for conservation authorities is based on the use of discounted
equalized assessment, calculated by the province. This is used in conjunction with
a calculation determining the percentage of the specific watershed(s) within the
municipality and an assumption on the population within that area. The total
municipal funding for the operating budgets of the six conservation authorities
within the GTA is approximately one percent of the municipal property tax base.
Based on the population within the GTA this amounts to a municipal levy of $3.50
per capita spending on watershed management but excludes individual tax payer
contributions through their provincial taxes which are spread over the entire
province.
The current use of watershed area, population and some measure of municipal
assessment, to determine the municipal financial commitment to watershed
management is a fair measure of the benefit to the local community and should be
continued. The current use of discounted equalized assessment should be
reviewed to make sure that it is the most appropriate measure of municipal
assessment for the distribution of operating costs. This review would have to take
into account any proposed revisions to the municipal property tax/assessment
system.
In terms of provincial support, there has been a shift from grant supported
programs, through the Ministry of Natural Resources, to funding of the direct
delivery of programs, on behalf of a number of provincial ministries, by authorities.
This has often skewed authorities budgets towards provincial priorities, rather
than the local perspective that was intended.
There is a need to maintain provincial funding but to make it more flexible to
ensure that local community resource management needs can be addressed.
Greater flexibility in the use of provincial grants will ensure that local watershed
community needs can be addressed while still ensuring that provincial interests are
achieved.
19
Funding is a critical issue not only in terms of providing good watershed
management but in all public services. We recognize that seeking more money on
the basis of existing roles, responsibilities and funding arrangements, is not the
way to deal with these issues, but rather that we need to look for opportunities to
simplify service delivery, reduce overlaps and duplication and make sure that we
are providing a value added service.
We believe that through the much needed rationalization of natural resource
management delivery and through the elimination of duplication in the existing
systems, substantial savings to the overall level of public expenditure can be
achieved.
We strongly support the concept of user/beneficiary pays. We have, and will
continue to, identify where costs for service delivery should be bourn by an
individual user/beneficiary. The main beneficiaries of watershed management,
however, continue to be the residents within the watershed and those within the
Great Lakes basin. A cost sharing partnership between provincial and municipal
governments, based on this concept, is an appropriate mechanism by which to
determine funding support.
20
CONCLUSIONS AND RECOMMENDATIONS
We believe that, to achieve the stated objectives of the Task Force, it is essential
that the management of our natural resources and the protection of our
environment not be lost in the discussion of municipal structure, financing and
community involvement, for they are inextricably linked.
No agency or group can accomplish its objectives in isolation. Contemporary
watershed management involves many people. This is particularly true if we are to
achieve the strategies which are, and will be, developed to protect the watershed
ecosystems that we envision shaping the future management of the natural
heritage resources of the GTA.
Conservation authorities have the watershed jurisdiction, local involvement and
cost sharing partnerships to develop and implement an ecosystem approach to the
management of the natural environment. We have the experience of past
management practices and have gained in our understanding of the natural
processes, functions and interrelationships to guide our future decisions. We have
made a direct contribution to the quality of the environment in the GTA and look
forward to contributing our expertise to ensuring that our quality of urban life
continues to be ranked amongst the highest in the world.
The purpose of this brief and our presentation is to bring to the attention of the
Task Force the importance of the natural environment and its management to the
future of the GTA.
We have identified areas for improvement and the key role that conservation
authorities play in managing and protecting our natural resources. We have
discussed how conservation authorities provide a unique mechanism for bringing
together the province, the municipalities and the community, regardless of the
ultimate political configuration of the GTA, to achieve a common goal, the
protection, management and, where appropriate, regeneration of our natural
resources on a watershed basis.
To achieve our vision of the GTA and to assist the Task Force in its deliberation,
we make the following recommendations on behalf of the Chairs and members of
the Halton Region, Credit Valley, Lake Simcoe Region, Metropolitan Toronto &
Region, Central Lake Ontario and Ganaraska Region Conservation Authorities.
21
WE RECOMMEND TO THE TASK FORCE THAT:
B the protection of our environment and the effective management of our
natural resources within the GTA must be part of your decision making
process,
. the watershed must be the basic management unit for environmental
protection and natural resource management,
B watershed based planning and management must be a component of
planned growth management and human health,
B conservation authorities must be confirmed as the agencies responsible
for watershed management,
B
in order to achieve streamlining and to eliminate duplication of services,
a comprehensive approach to the delivery of natural resource management
and environmental protection programs must utilize conservation authorities
as the locally based one-window agency, as proposed in a brief prepared
by the Association of Conservation Authorities of Ontario for presentation to
the Province of Ontario, Restructuring Resource Management in Ontario,
B the provincial government must rationalize its water management
strategies, with a much greater emphasis on groundwater protection and
management,
B there must be a rationalization of the financing of all aspects of
watershed management carried out through the conservation authorities;
B the headwaters, valley and stream corridors, the Oak Ridges Moraine,
the Niagara Escarpment and the Lake Ontario and Simcoe waterfronts must
form the green infrastructure of the GTA and their features, functions and
Iandforms must be protected,
. the conservation authorities within the GTA are flexible and willing to
embrace change for the betterment of their watersheds and recognize that,
as the structure and governance of the GTA evolves, we must change to
meet the demands of the future in a renewed and revitalized GTA.
22
Tel. (416)-961-4384 x.224 (B) Stefan E. Gutkowski, Esq., A.R.C.T.
(416)-769-3947 (R) 65 Windermere Ave., Apt. 406,
Toronto, Ont., M6S 334
Ms. Anne Golden,
Chair, Tack Force on the GTA
Dear Me. Golden,
the tremendous task of seeking optimum solutions to GTA area taxes. Forgive me for not
having your address above, for I lack those details, and in any case this presentation
is being faxed.
My proposal is made in light of the recent mailout by Toronto City Council to its
167,000 tenants, myself included, regarding their property taxes, which are hidden
in the rent they pay. The prior absence of such information has surely influenced
tenant apathy viz. tax burden, and especially participation in local elections.
Numerous representation, such as the recent one by the City of Toronto to which I
contributed, acknowledge this, and the unfair tax burden borne by tenants, but no
solution proposed to date guarantees that a reduced tax burden on rental buildings
will be passed on to their occupants, hence my proposal below.
Proposal:- 1 hereby propose that property taxes on rental buildings be replaced by a
Rental Tax, which would be a set percentage of the net rent, added to it.
What are Net Rent and Gross Rent?:- Gross Rent is the total rent tenants pay now,
including their share of property taxes. Net Rent Is the rent payable after ones
share of property taxes has been deducted. I will be using these terms throughout.
HOW Do You Convert?:- Landlords would be requited to deduct a tenants share of taxes
from his gross rent. He does that by dividing the aggregate property tax paid on the
building, by the aggregate annual rent on all the buildings units, and multiplying
the result by 100 to get the percentage of the gross rent he must reduce it by. The
result is the net rent, the benchmark for advertising rents and calculating rental tax.
How Do You Calculate Rental TAX?:- Assume an apartment renting for $1000 where the tax
share Is the current Metro average of 30%. The net rent would be $700, and, to get the
came tax revenue from this unit, $300, the Rental Tax would be 42.857X.
But Dont You Want To Cut Tenants Taxes?:- Exactly. But even if we were to seek the
same revenue level, tenants paying over 30X in taxes would get a break in total payments.
It then becomes a political/economic question, of how much one can reduce the rental
property tax share without incurring a backlash elsewhere. A 10.17% cut would allow the
Rental Tax rate to be set at 38.5%, yielding an average saving per tenant of 3.05Z.
The tenants of the above $1000 unit would see their $700 net rent incur a rental tax
of 38.5% or $269.50, totalling $969.50, a caving of $30.50 per month.
Wouldnt Landlords Be Hurt By The Change? :- No. The change would require them to deduct
a cost that they are already paying: property tax to City Hall. They wont gain in the
pocketbook,but theyll have lees paperwork; theyll simply have to add Rental Tax to rents.
Wouldnt Some Tenants Be Hurt?:- it depends on how much Councils could afford to cut th
e
more, depending on the circumstances; if so, increases could be capped to avoid hardship,
Right now, tenants pay an average of 30% of their rent in property taxes: come pa
y
more
than others. A rental tax would see all tenants across Town pay the came rate.
- 2 -
Wouldnt Councils & School Boards Be Hurt?:- There is going to be a major shake-up in
Municipal taxation anyways, sO the upheaval is arguably going to hurt. It therefore is
a political-cum-economic question; regardless of what system is ultimately arrived at:-
what percentage of the overall tenant tax burden can councils/boards afford to reduce
without incurring a backlash elsewhere? Its important to realize that a feature of the
Rental Tax, is that its rate would be set by Councils, in consultation with School Boards,
And they would have the right to alter that rate, provided they accept the consequences
politically of so doing. Remember, rents will still go up to meet costs borne by the
landlords, rent controls or no rent controls. When the net rent goes up, the Rental
Taxes collected go up too, so its a blessing in disguise for local authorities! Thats
the attraction of an ad valorem tax, which is what the Rental Tax would be.
But the Rental Tax Seems Needlessly Complicated:- Every tax is somewhat complicated, and
the Rental Tax is no different there. Switching from type of tax to another is more
complicated, witness moving from the Manufacturers Sales Tax to the GST! The purpose
for the switch is fairness. To provide a benchmark from which to reduce the tenants
tax burden, to ensure tenants know how much local tax they pay, to equalize the ratio
of taxes all tenants pay, to simplify calculation for landlords and collection pro-
cedures for councils and boards. It could also provide a benchmark from which to
consider rebates for needy tenants, especially those on welfare who are not living
in assisted accommodation.
Whats Wrong With The Other Proposals?:- All of the other proposals have great merit.
Indeed a lot of effort has gone into each. A broad consensus realizes that the current
tax system is unsustainable, and that one of its biggest faults is the unfair burden
imposed on tenants. However no other proposal guarantee that a reduced tax load on
rental properties will be passed onto their occupants. By replacing property taxes on
rental properties with a rental tax, and by doing so by a means which requires landlords
to deduct current tax shares from current rent, it guarantee that lower taxes will be
passed on to the tenants, by assessing rents rather than property values. With the
Rental Tax, tenants see up front how much local. authorities cost them, landlords
headaches are eased, as its a simple task to add the tax as a specified percentage
of net rent. Its good for City Hall, for as rent rise, so do rental taxes. Its better
all round, and is a solution whose time has come.
I feel the Rental Tax is an essential component of Munictpal Tax Reform, and I urge
you to include it in your recommendations. T. welcome your comments.
Yours Faithfully,
THE REGIONAL MUNICIPALITY OF HALTON n .
1151 BRONTE ROAD
OAKVILLE, ONTAR1O, CANADA L6M 3L1
.
OFFICE OF THE CHAIRMAN
TEL: 905/825-6115 FAX: 905/825-8839
September 28, 1995
Dr. Anne Golden, Chair
Greater Toronto Area Task Force
20th Floor -2001
393 University Avenue
Toronto, ON M5G 1E6
Re: Region of Halton Position on GTA Reform
I am pleased to submit for the consideration of the Task Force, the attached report which presents the
position of the Regional Municipality of Halton on the issue of GTA reform. This Report was adopted
by Regional Council on September 27, 1995.
I would like to confirm that the position presented in this report is consistent with the Seven Point Plan
articulated in the paper, The Seven Point Plan to Reform the GTA - Leading by Example with
Meaningful Change, submitted by the Regional Chairs of Peel, York, Durham and Halton, as well as
with the position prepared by Mayor Robertson and the Steering Committee for the GTA Mayors.
Should you wish to discuss further any aspect of this position, I would be pleased to meet with you.
I wish you every success as you enter the final stage of your task and look forward to the release of the
final report.
cc The Honorable Mike Harris, Premier of Ontario
The Honorable Al Leach, Minister of Municipal Affairs & Housing
THE REGIONAL MUNICLPALITY OF HALTON
RECOMMENDATION
THAT the Region of Halton support the position on GTA Reform: A
Seven Point Action Plan, attached as Appendix A to CH-05-95, and that
this position be forwarded to the Golden Task Force and to the Premier
of Ontario.
REPORT
Background
On September 13, 1995, Regional Council received a presentation on a paper entitled Leading
by Example, which had been prepared by a sub-Committee of the GTA Mayors and Chairs
group, in the hope of providing the basis for a broad municipal consensus on G.T.A. reform.
A number of changes to the paper were proposed to more clearly reflect a Halton position on
the issues. Regional Council voted to support a consensus position along the lines of the Halton
presentation and directed that the Regional Chairman convey that position to the meeting of the
GTA Mayors and Regional Chairs.
I attended the meeting of the GTA Mayors and Chairs hoping that we would achieve a consensus
on a position to present to the Golden Task Force. Regrettably, most of the meeting time was
devoted to hearing presentations from the Hospitals Alliance, The Institute of Municipal
Assessors, Metro Toronto, the City of North York and the City of Mississauga. Following the
presentation of the Seven Point Consensus Paper prepared by the Steering Committee chaired
by Mayor Robertson, the remaining discussion time was largely given over to procedural issues,
rather than a substantive discussion of the paper. As a result, although many of the Mayors
present supported this position, there was no formal opportunity to express that support.
A commitment was made to engage in a full discussion of the proposed position following the
GTA Mayors and Chairs session and to confirm a final Halton position on this topic, to be
- 2 -
presented to the Golden Task Group by September 30, 1995. This report outlines the issues
underlying the pressures for reform in the GTA and presents the proposed Halton position on
GTA reform.
Finally, many position papers have already been presented to the Golden Task Force. For your
information, Appendix B presents a comparison of the key elements of some of the major
submissions to the Task Force. The submissions
are included in Appendix C. I understand the
proposal on local government reform.
GTA Reform: The Issues .
made by Milton, Halton Hills and Burlington
Town of Oakville is currently finalizing its
Over the past several years, there has been a growing pressure for change in government.
This widely-held sense that change of some sort is necessary is in large part a direct result of
the current financially constrained environment. The fiscal problems of the Federal and
Provincial Governments have reached the point where they can no longer be ignored. As the
senior governments have begun to implement measures to bring their deficits under control, the
impacts have been felt by local governments in terms of reduced grants and increased program
or funding responsibility. Taxpayers have also felt the impact through increased levels of
taxation and reductions in services or benefits. There is a strong public sentiment that the cost
of all government is too high and an increased willingness on the part of the public to accept the
consequences of change. Government as we have come to know it can no longer be sustained
in its present form, and as a result, we are now in a major transition period in the evolution of
government.
This situation is not unique to Ontario or the GTA. Governments in some other provinces have
been working through the same adjustments for several years now and are beginning to see
positive results. What is significant for Ontario, and particularly for the GTA, is that the timing
of this financial restructuring has coincided with the major economic downturn of the 1990s.
The rapid growth and buoyant economic conditions of the late 80s and early 1990s ended
abruptly, and the economy in this area has not yet recovered. This has raised concerns about
the erosion of the economic base in the GTA. The loss of local revenues, in part due to broad
economic restructuring, has brought to the forefront some long-standing issues which need to
be resolved. Foremost among these issues, is the matter of different assessment practices within
the GTA and the implications for revenue generation, economic competitiveness and tax equity.
From a Halton Region perspective, the issues which must be addressed by local government
reform are as follows:
1. Growth Management and Economic Development
Current development forecasts for the GTA project an increase in population from
4.4 million in 1991 to 6.9 million by 2021. Over the same period, employment is
expected to increase from 2.3 million jobs to 3.8 million jobs. The majority of the
- 3 -
2.
long term population and employment growth is forecast to occur in the four Regions
on the perimeter of the GTA.
For Halton, the major challenge is to provide the infrastructure and manage this
growth in a way to preserve the distinct communities and environment of the Region.
From a GTA-wide perspective, the challenge is to enhance the long-term global
economic competitiveness of the GTA which will require sound infrastructure, a
strong central core in Metro Toronto in an economically vibrant area, and healthy,
diverse communities throughout the GTA.
In Halton, we are attempting to meet the fiscal challenges of funding growth through
Partnerships with the private sector and other governments.
Financing Local Government Services
There are two fundamental issues which must be addressed: the first is property tax
reform, and the second is the realignment of financing and program responsibilities.
The issue of property tax reform is particularly serious within the GTA. The present
variations in property assessment across the GTA result in significant differences in
the tax burden carried by different classes of properties across the GTA. This raises
equity issues and assessment appeals are eroding the municipal revenue base in
Metro Toronto. The difference in assessment rates also affects the economic
competitiveness of Metro Toronto.
It is essential that this problem be correctly identified. The issue is not that the
assessment practices of the 905 Regions are unifair to Metro Toronto, but that there
is a serious need for property tax reform within Metro Toronto. The greatest
imbalance in taxation levels on different classes of taxpayers exists in Metro. High
density residential properties and commercial and industrial taxpayers bear a
disproportionate tax burden, compared to single family residences. Single family
residences pay a lower share of the taxes in Metropolitan Toronto relative to their
market value than they do in the 905 Regions. As a result, other classes of
properties, eg. commercial and industrial, pay more relative to their market value
than in the 905 Region. The inequities within Metro need to be addressed through
vigorous assessment reform.
The second aspect of municipal finance reform which must be addressed is the
realignment of financing and program responsibilities. Municipalities derive their
revenues from two main sources - assessment-based local property taxes and grants
from senior levels of government, primarily the Province. Over the past years, as
financial constraints have become more severe, grants from the Province have been
reduced. Municipalities increasingly find a shortfall between the cost of the services
- 4 -
they are expected to provide and the revenues raised through property taxes. In
Halton, we have increasingly resorted to some form of user fee to bridge the gap.
Municipalities need a better fit between the services they are required to provide and
their ability to finance thos se services. There is a growing sense that municipalities
must have greater responsibility for the planning and delivery of municipal services,
along with greater say in how those se services are financed.
Finally, the issue of accountability for the property tax bill needs to be addressed.
Local governments are charged with raising the funds required by other public
organizations, such as Police Services Boards, Conservation Authorities and Boards
of Education, without any control over the budgets of these organizations. There
should be greater direct accountability by local governments for the services they
provide and the taxes they levy.
3. Rationalizing and Streamlining Government Services
The subject of rationalizing the responsibilities for government services has been the
subject of much discussion. The disentanglement process between the Province and
AMO several years ago was a major effort to redefine and reassign funding and
service delivery responsibilities for various programs, between the Province and
local governments. While the disentanglement exercise did not succeed in redefining
responsibilities for even limited program areas, the need to-review and rationalize
government services is more critical than ever.
It is time to untangle the web of responsibilities for government services in order to
clarify accountabilities and simplify administrative processes. Split responsibilities
may lead to duplication and often requires substantial resources to manage and
monitor activities. As much as possible, service responsibilities should be assigned
to one level of government only. The Province should establish the framework
within which municipalities operate, but maximize municipal flexibility to operate
in accordance with local needs, practices and priorities. Regulations should be kept
to the minimum level required to ensure that the public interest is met; but where
one government imposes service or performance standards on another government,
it provide funding support consistent with the level of control exercised.
There is also room for streamlining government services at the local level. In
Halton, we have been working with the area municipalities and boards of education
to streamline services within the Region. We believe there is scope for much more
of this type of initiative, with the end result of reducing the overall cost of
government to the taxpayer. Streamlining initiatives should be locally-driven, in
order to find solutions which best meet local needs and circumstances.
- 5 -
4. Municipal Governance
Much of the public debate about local government reform has focused on changes
to governance structures; however, governance structures as structures are not the
root cause of the problems in local government. Changes to municipal boundaries
for the levels of local government will not resolve the issues mentioned above,
without the more fundamental changes associated with tax and assessment reform and
clearer service and funding responsibilities.
Local government reform must respect the diversity among the communities in the
GTA, avoiding a one-size fits all solution and allowing for easy access by our
citizens to all levels of government. In the end, municipal reform must be
accessible, affordable, cost-effective, customer-oriented and easily understood by the
public. For this reason, a single, GTA-wide government is not an acceptable
solution.
The popularity of governance options ignores the substantial strengths of the system
which is already in place. While there are existing mechanisms in place to enable
cooperation and coordination across the GTA, this could be strengthened with a
couple of significant additions. First, it would be useful to establish a coordinating
Forum of the Mayors and Regional Chairs to address cross-boundary planning and
coordination issues on a formal and regular basis. This GTA Forum of Mayors and
Chairs would be a consultative, non-executive body, working with the Provincial
Office of the GTA.
Provincial involvement and commitment to this coordinated approach is essential,
since the resolution of many of the cross-boundary issues ( such as sewer and water
capacity) is critical to the development of the entire GTA and the Provincial growth
objectives. Therefore, we propose that the Province establish a GTA Cabinet
Committee, with a mandate to address GTA issues and work with the GTA Mayors
and Chairs Forum in a coordinated manner. When disputes cannot be resolved
voluntarily, there should be an accepted dispute resolution process to which these
issues can be referred.
GTA Reform: A Seven Point Action Plan
Given the issues outlined above, it is proposed that the Region of Halton present the seven point
plan for GTA Reform attached as Appendix A to the Golden Task Force.
NOTE : Subsequent t o t he wr i t i ng of
t hi s r e por t , f ur t her cor r espondence
from the Town of Halton Hills , and
the submission of the Town of Oakville
have been received and are attached
hereto.
GTA Reform: A Seven
APPENDIX A
to REPORT CH-05 -95
Point
Action Plan
GTA Regions and Municipalities will work with the Province to implement an inter-
related reform program consisting of:
B
Assessment/property tax reform
B
Provincial/municipal financing realignment (SWAP)
B
Permissive Municipal Act
B
A locally-driven and initiated review of services, representation and boundaries
B
Review of Special Purpose Bodies
B
GTA Coordinating Forum (Mayors, Chairs, GTA Cabinet Committee)
B
Significant Education Reform
GTA Assessment/Property Tax Reform
B
Province to implement a fair and equitable assessment system FOR EACH
REGION within the GTA, which:
B
achieves tax fairness within and between classes
B
attains the benefits of an optimal residential to non-residential assessment
mix across each Region
B
utilizes variable mill rates to control/phase tax burden shifts between
property classes (within limits to avoid bonusing)
B
Shift assessment function from Province to the Regions
B
Utilize improved technologies to update and maintain assessment records
B
Continue to investigate the range of assessment methodologies
SWAP Specifics
Revenue Neutral
Municipalities to finance hard services Province to finance soft services and municipalities
deliver the services
Roads Welfare
Transit (cost sharing) Child care (Includes CAS)
Waste Management Public Health
Sewer & Water Homes for Aged
Storm Sewer Policing Grant (pay for say)
Eliminate all Unconditional Grants
Health Inspection
Property Assessment
Education capital and Education operating costs as balancer
physical plant maintenance*
The SWAP = Revenue neutral formula, no provincial or municipal tax increases.
maintenance of physical plant.
Treatment of Special Purpose Bodies
The Challenge of Accountability
Review:
B
District Health Councils
B
Childrens Aid Society (CAS)
B
Ontario Housing Corporation
B
Police Service Boards
B
Conservation Authorities
B
Library Boards
B
Hydro Commissions
Education Option
The largest portion of the property tax bill is education.
Significant reform is required:
B
to make education governance more accountable
B
the need to discuss the 905 Regions or cities within Metro assuming full
responsibility for all aspects of building and maintenance of schools and busing
Province (not Boards) responsible for curriculum
B
Province funds a portion of teaching operations, possibly through a per pupil
block grant
B
Province set the terms for Provincial bargaining with teachers
Municipal Services/
Representation/Boundaries
A locally driven AND INITIATED process within each Region to:
B
review municipal boundaries and structures
B
commit to rationalize and streamline programs/services
B
review representation and size of Councils
B
Province to set timeline and establish broad guidelines
B
recommendations from municipalities in time for 1997
elections
B
Provincial commitment to implement municipally achieved
solutions
PERMISSIVE MUNICIPAL ACT
B
Improved Municipal Act
B
With permissive authority
B
With enhanced range of revenue generating options
B
Full and ongoing consultation with AMO and GTA Mayors and
Regional Chairs
B
Review appropriate Provincial ministry functions with a view
to eliminating duplication with municipal regulatory
functions by 1997
GTA LIAISON COMMITTEE
B
Create GTA Forum of Mayors and Chairs to address cross-boundary
planning/coordination issues on regular basis (eg. economic development, waste
management, sewer/water, transit, environmental standards, large-scale
infrastructure management, etc.)
B
together with the new GTA Cabinet Co-ordinating Committee
B
supported by a small secretariat
B
consultative, non-executive powers (no taxing authority)
B
Province creates GTA Cabinet Co-ordinating Committee
B
involving key Provincial Ministries to deal with GTA issues in a co-
ordinated, ongoing fashion
B
Dispute resolution mechanism necessary where there is no consensus
Potential Savings In The Plan
FINANCING SWAP will eliminate duplication in the administration of cost-shared grants
TO EXAMINE SPECIAL PURPOSE BODIES to improve
efficiencies
EDUCATION administration and board costs significantly
GTA FORUM will facilitate partnerships/collabortion,
futher savings
accountability and operating
reduced
opportunities for producing
GREATER MUNICIPAL CONTROL over service levels, resulting in
B
permissive municipal authority
B
reduced Provincial regulationpolicies
SELF I NI TI ATED AND
service/representation/boundaries
RESTRUCTURE PROVINCIAL
reform
DRIVEN MUNICIPAL
to generate further savings
significant savings
REVI EWS of
MINISTRIES to be in synch with local government
The Benefits of Consensus
On the Seven Point Plan
CONCRETELY ADDRESS THE REAL PROBLEMS FACING THE GTA
Improves Provincial/Municipal accountability by clarifying roles and
responsibilities
Responds to Taxpayers concerns by reducing property tax burden and
generates savings for the Province/Municipalities
Demonstrates a willingness and ability to further improve municipal government
within the GTA
Demonstrates leadership by municipal politicians as agents of positive change
Ensures Revitalization of GTA by addressing immediate threats/challenges
Allows for individuality and diversity of needs
Ensures future economic vitality and quality of life across the GTA
APPENDIX B
TO REPORT CH-05-95
coMPARISON OF GTA REFORM PROPOSALS
SUMMARY ONL
Y
TO SEPTEMBER. 1995
(Prepared by City of Mississauga and used with permission)
i !
APPENDIX C TO REPORT CH-05-95
Facilitated by:
Lifetime Consulting Services
Prepared for:
Burlington City Council
September 25,1995
Gr eat er Tor ont o Ar ea Gover nanc e
This brief to the Province of Ontario and the GTA Task Force has
been prepared by the City of Burlington Council. The brief was
developed with the assistance of a professional facilitator working
with Council through individual interviews, a special half day meeting
of the Committee of the Whole and final review by the Community &
Corporate Services Committee and Council.
City of Burlington Council have developed and adopted the following
5 principles for reform.
Pr i nc i pl e 1:
Pr i nc i pl e 2:
Pr i nc i pl e 3:
Pr i nc i pl e 4:
Pr i nc i pl e 5:
The Ci t y of Bur l i ngt ons uni que geogr aphi c
posi t i on, i dent i t y and qual i f i es shoul d be
pr eser ved. The Ci t y must mai nt ai n
r el at i onshi ps not onl y east t o t he GTA, but al so
w est t o t he Hami l t on-Ni agar a Ar ea.
The Ci t y of Bur l i ngt on must be abl e t o c ont i nue
t o at t r ac t i nvest ment s and j obs. Bur l i ngt on
shoul d mai nt ai n a r el at i onshi p w i t h t he
ec onomi c ar eas of t he GTA and Hami l t on-
Ni agar a Ar ea.
Ther e shoul d be hands-on i nf l uenc e by l oc al
gover nment over t he use of pr oper t y t ax money
f or I oc al benef i t s. Ther e shoul d be no i nc r ease
i n pr oper t y t ax es.
Ther e shoul d be f ew er l evel s of gover nanc e.
Gover nment shoul d be si mpl er , mor e
ac c ount abl e, and mor e I oc al l y assessabl e so
t hat l oc al gover nment i s bet t er abl e t o i nf l uenc e
out c omes.
Non-i nst i t ut i onal i zed par t ner shi ps shoul d be
bui l d onl y t o ac hi eve mut ual benef i t s and be
di sbanded w hen t he goal s ar e ac hi eved.
Gr eat er Toronto Ar ea Gover nanc e
Main Messages from Bur l i ngt on Ci t y Counc i l
1. The Uni que Br i dge Posi t i on of Bur l i ngt on bet w een t he
Gr eat er Tor ont o Ar ea and t he Hami l t on Ni agar a Ar ea.
Burlington is on the western edge of an area defined by the
Provincial Government as Greater Toronto Area (GTA), an area that
works as an economic area. Burlington is also on the edge of
another important economic area to the west. In essence, to be
successful in the future, Burlington must bridge both ways, to the
east and to the west.
The people of Burlington benefit from being located as a bridge
between the GTA and the Hamilton Niagara Area. They have both
the benefits of being a part of Burlington, a developing community,
and of being in the middle of the Golden Horseshoe. The pay to use
facilities in Toronto - universities, cultural centers, entertainment
facilities - as they do in Hamilton and elsewhere. Burlington
residents are willing to pay user fees to support the facilities in
nearby centers but expect their property tax money to support
services in their own community.
Burlington would contribute political and staff resources as part
of coordinating committees. Burlingtons objectives for participating
in such committees are: (i) to achieve the benefit of being part of the
GTA or the Hamilton Niagara Area and, (ii) to protect Burlingtons
unique identity. Members of Council would participate in
coordinating activities and Burlington staff would contribute to
committees and provide information and analysis where appropriate.
Burlington wants to utilize existing political and staff resources rather
than create any other levels of government or other bodies with .
decision-making powers.
- 2 -
Burlingtons unique br idge position linking the GTA and
Hamilton-Niagara Area has implications for its role. The
purpose of this position paper is to define Burlingtons role in any
new structure.
Rec ommendat i on #1
Shoul d t he Pr ovi nc e of Ont ar i o c onsi der a formal pol i t i c al t i e f or
t he Ci t y of Bur l i ngt on w i t h ei t her t he GTA or any ot her pol i t i c al
ar ea, Bur l i ngt on Ci t y Counc i l r equest t he r i ght t o mak e t hat
dec i si on.
2. BURLI NGTONS ROLE RELATI VE TO THE GTA
Members of Council believe that Burlingtons role as t he l oc al
level of government in governance should be strengthened. As the
government closest to the people, Burlington Council can provide
services with the greatest accountability to the electorate.
Rec ommendat i on #2
Bur l i ngt on Ci t y Counc i l shoul d be r esponsi bl e f or ai l muni c i pal
pl anni ng, al l r oads w i t hi n t he muni c i pal i t y ex c ept pr ovi nc i al
hi ghw ays, and c ommuni t y-based ec onomi c and busi ness
devel opment . These ar e I oc al i ssues, not r egi onal i ssues.
Rec ommendat i on #3
Bur l i ngt on Ci t y Counc i l r equest Legi sl at i ve c hanges t o al l ow f or
t he el i mi nat i on of spec i al pur pose bodi es at t he sol e di sc r et i on
of t he Bur l i ngt on Counc i l . Spec i al pur pose bodi es i nc l ude t he
Bur l i ngt on Hydr o Commi ssi on and t he Bur l i ngt on Li br ar y Boar d.
- 3 -
3. THE ROLE OF MUNI CI PALI TY OF HALTON
Members of Burlington Council see the need for change of
governance in Halton Region.
Rec ommendat i on #4
The Hal t on Regi on shoul d be a non-t ax i ng ut i l i t y gover ned by a
c oal i t i on of f undi ng par t ner s pr ovi di ng w ast e management ,
w at er and sew er s, pol i c e and ot her ser vi c es as needed t o
Bur l i ngt on and ot her par t i c i pat i ng muni c i pal i t i es.
4. THE ROLE OF THE GREATER TORONTO AREA
Burlington Council wishes to explore the benefits of being
associated with the GTA.
Rec ommendat i on #5
The GTA agenda shoul d be managed by an i nf or mal assoc i at i on
of par t i c i pat i ng muni c i pal i t i es w i t h a w el l -def i ned r el at i onshi p
w i t h t he Pr ovi nc e of Ont ar i o.
Rec ommendat i on #6
The GTA shoul d have a f or um f or maj or i ssues and ac t i vi t i es
suc h as i nt ended ur ban st r uc t ur e, l ar ge-sc al e i nf r ast r uc t ur e
pl anni ng, envi r onment enhanc ement and ec onomi c
devel opment t hat benef i t al l pat i c i pat i ng muni c i pal i t i es. The
ar ea t o t he w est of Bur l i ngt on shoul d al so have a f or um f or
same. Her e, f or um i s t ak en t o mean f or mal assoc i at i on of
muni c i pal i t i es and not a dec i si on-mak i ng gover nment body.
----
-.
5. THE ROLE OF THE PROVI NCI AL GOVERNMENT
Members of Council believe that the provincial government can
facilitate the operation of local governments by reducing and
eliminating interference in local matters while taking on full
responsibility for truly provincial issues.
Rec ommendat i on #7
The Pr ovi nc e of Ont ar i o shoul d be f ul l y r esponsi bl e f or t he
f undi ng and pr ovi si on of heal t h and soc i al ser vi c es i n c o-
oper at i on w i t h c ommuni t y-based or gani zat i ons t hr ough I oc al
of f i c es.
Rec ommendat i on #8
The Pr ovi nc e of Ont ar i o shoul d w her ever possi bl e el i mi nat e
i nt er f er enc e i n l oc al gover nment by al l ow i ng per mi ssi ve
l egi sl at i on under a new Muni c i pal Ac t . The Pr ovi nc e shoul d
mak e c hanges t o l egi sl at i on w hi c h w oul d el i mi nat e t he
Pr ovi nc i al r ol e i n ar eas suc h as br i dge, sew er and t r af f i c si gnal
desi gns, numer ous devel opment c ont r ol s, I oc al pl anni ng i ssues
and muni c i pal el ec t i on pr oc edur es. The Pr ovi nc e shoul d be
pr epar ed t o ac t on r ec ommendat i ons f r om l oc al muni c i pal i t i es
on a w i de r angi ng l i st of t hese i ssues.
Rec ommendat i on #9
Unt i l a bet t er syst em i s adopt ed by t he Pr ovi nc e, t he Ci t y of
Bur l i ngt on suppor t s t he c ont i nued i mpl ement at i on of r egi on-
w i de mar k et val ue assessment (unt i l t he Regi on bec omes a non-
t ax suppor t ed ut i l i t y), and does not suppor t t he pool i ng of
busi ness assessment i n any ec onomi c ar ea.
- 5 -
Rec ommendat i on #1O
The Ci t y of Bur l i ngt on r equest s t hat t he i mpl ement at i on of
pr ovi nc i al pl anni ng pol i c i es be done t hr ough t he muni c i pal
pl anni ng pr ogr ams, and t hat , spec i f i c al l y i n Bur l i ngt on, t he Ci t y
be t he l ead pl anni ng agenc y, and t hat t he Ni agar a Esc ar pment
Commi ssi on Pl an, t he Par k w ay Bel t Pl an and t he pol i c i es of t he
Hal t on Regi on Conser vat i on Aut hor i t y al l be admi ni st er ed by
means of t he Ci t y of Bur l i ngt on Of f i c i al Pl an, zoni ng by-l aw s and
ot her pl anni ng i mpl ement at i on i nst r ument s.
Rec ommendat i on #11
Bur l i ngt on Ci t y Counc i l enc our ages t he Pr ovi nc e of Ont ar i o and
t he GTA Task For c e t o br oaden its per spec t i ve i n t he c ur r ent
GTA Revi ew t ak i ng i nt o c onsi der at i on w i der ec onomi c ar eas
i nc l udi ng t he Hami l t on Ni agar a Ar ea.
APPENDIX
ATTENDEES
SPECI AL COUNCI L MEETI NG
GTA GOVERNANCE
SEPTEMBER 9,1995
COUNCIL MEMBERS: Mayor Mul k ew i c h
Al der man Br ec hi n
Al der man Bul l oc k
Al der man Car r
Al der man DAmel i o
Al der man Denni son
Al der man Lee
Al der man Lougheed
Al der man Qui nn
Al der man Tayl or
Al der man Tr ueman
Al der man Wal l ac e
Al der man Wood
CI TY OF BURLINGTON
STAFF: Mr . T. Debbi e
Mr . G. Goodman
Mr . R. Lat han
SPECI AL GUEST:
Mr . T. Mc Cor mac k (Member of
t he Gol den Task For e on t he
GTA).
ABSENT:
Al der man Edw ar ds
Al der man Mac I saac
Al der man Sc hol t ens
THE CORPORATION OF THE
Town of Ha lt on Hills
1995 09 2 6
Chairman Joyce Savoline
Regional Municipality of Halton
Box 7000
1151 Bronte Road
Oakville, Ontario L6M 3LI
Dear Chairman Savoline:
Re: Reform in the Greater Toronto Area
file: Ao2/GR
Please be advised that the Council for the Town of Halton Hi l l s at
their meeting on 1995 09 25 enacted the following resolution:
THAT the amended resolution attached as Appendix A to
this Mayors Report dated 1995 09 25 be endorsed;
AND FURTHER THAT this resolution be forwarded to Dr. Anne
Golden, the GTA Task Force, Premier Mike Harris, Ted
Chudleigh, M.P.P., Al Leach, Minister of Municipal
Affairs and Housing and Chairman Savoline, Region of
Halton as this Councils position on the matter of reform
in the Greater Toronto Area.
Accordingly, please consider this correspondence to be Councils
official position on the matter of reform in the Greater Toronto
Ar e a .
Respectfully, your attention to this Council resolution is
requested. Thank you.
Stewart,
Serjeantson
King, Town
Administrator
APPENDIX A
THE CORPORATION
OF
THE TOWN OF HALTON HILLS
Moved by:
Seconded by :
Date: 19950925
Re s ol ut i on No.
-2-
Second Preference That failing the Government of Ontarios endorsement of our first preference, the Town
of Halton Hills herewith reiterates and expands upon its earlier recommendations to the GTA Taskforce as
follows:
a)
b)
c}
d)
e)
i)
9)
h)
AND
that assesment reform be undertaken for the City of Toronto and Metropolitan Toronto before any
further consideration of GTA reform be undertaken.
that the Province and the members of the Greater Toronto Area pursue with diligence the
disentanglement of responsibilities between them.
that the usefulness and necessity of special purpose bodies be evaluated and recommendations be
made.
that new criteria for allocating provincial moneys to all municipalities in Ontario be established to
ensure a fairer allocation.
that the Municipal Act be revised to give municipalities more autonomy and subsequently more
responsibility in decision making.
that strong autonomous local government be identified as the norm and assured and maintained.
that a review of education funding be undertaken with the intent of removing this burden from the
property tax base.
that municipal boundaries remain unchanged until all the above necessary reviews have been
completed.
FURTHER that this Council respectfully requests the GTA Task Force to consider these
recommendations.
May 25, 1995
Dr. Anne Golden
Greater Toronto Area Task Force
393 University Avenue
20th Floor - 2001
Toronto, Ontario
M5G 1E6
Dear Dr. Golden:
Thank you for meeting with Mayor Gord
office. Obviously the time allotted
want to refresh your memory about the
you with some input.
The Town of Halton Hills is over 106
Krantz and myself in Gord's
was too short.
H o w e v e r , I
Town I represent and provide
sq. miles, with a population
of 38,444 people. We have two distinct urban centres, Georgetown,
(22, 000) , Acton, (7000), as well as the Hamlets of Norval,
Stewarttown and Glen Williams and numerous small settlement areas
such as Hornby, Silvercreek, Limehouse, Ballinafad and Terra Cotta.
We are fortunate to have the picturesque Niagara Escarpment run
through our rural area. Our employment base is centred primarily
in our existing urban centres, however, commuting to surrounding
areas still dominate our life style. In the rural area, the
farming sector remains a viable entity, consistent with the
character of the Region of Halton. New, planned, industrial
opportunities are emerging in Halton Hi l l s in Georgetown (400
acres) and 401 Corridor Industrial area (1000 acres). However, we
are constrained by servicing limitations which in time I am hopeful
will be resolved.
We have managed to maintain a zero increase in our local property
taxes over the past four years. Our growth has increased in the
Georgetown area over the past five years by 5,000 people, with a
projected increase of 16,000 over the next 15 to 20 years, if
Halton Region can resolve our water source concerns.
Acton has
finally received permission to add 3,000 people with an
infrastructure cost of at least two million dollars for sewage,
water and stormwater management.
,,, / 2
- 2 -
We are somewhat restricted in the cultural, social and recreation
amenities that we can provide as a result of our commitment to a
zero tax impact and the high cost of two urban centres,
10 km.
apart. As a Town, we are consciously cost cutting and continuously
streamlining in order to stretch our resources . For example, we do
not provide a transit system to our residents as it would be too
costly .
I do not want to leave the impression that our quality of life
which we enjoy is lacking. In fact, the opposite is true. Most
people remain or move to Halton Hills because of its beauty, charm,
preserved natural environment, rural areas and open spaces. Halton
Hills is a Town of Communities that treasures and preserves its
hi. storical past and builds on this uniqueness for its future.
As Mayor, I feel that it is essential for
history and community situation in order
community would find it difficult to be part
The feeling here is that the Metro problem
you to understand our
to realize that this
of the Metro solution.
is being forced on the
rest of the Greater Toronto Area when in reality, we are not in a
position to financially help when we have continuously sought to
conscientiously utilize our limited resources to promote harmony
and attempt to fulfil community expectations.
In assessing the current situation, we fully recognize the
importance of the city of Toronto and the Metro area as a prime
economic engine of Ontario
c
We also understand that it is
important to all of the Municipalities for this area to remain
vibrant and competitive in the future. The question then becomes
how does one achieve that goal? Outlined below are my observations
and recommendations for your consideration:
1, The very first step should be to overhaul the property
assessment situations within the Metro area. I realize that
attempts have been made in the past and have failed but, it is
totally unrealistic to look to other Municipalities for any
f or m of assistance when the main system of revenue generation
is in such disarray. While the assessment situation in the
Region of Halton may have been less confusing than the Metro
situation, nevertheless, difficult decisions surrounded by
much controversy had to be made.
The net result is that a
system considered to be more equitable will be implemented for
the 1996 tax year.
2. The City has not appeared to streamline their internal system
of government and service provisions.
Looking in from the
outside, provision Of services, transit, recreation and
cultural opportunities are plentiful.
As well, the education
and employment opportunities, are both varied and appreciated.
.../3
- 3 -
Under the circumstances,
or Metro is a hard sell
should do a comprehensive
a financial contribution to Toronto
in Halton Hills.
Perhaps the City
review and implement the more with
l e s s philosophy respecting their corporate structure and
service delivery. This would provide a level of comfort for
the other GTA communities that they have already sought some
solutions to the problems and in fact,
have their own house
in order.
3. If some form of financial assistance is considered necessary
for the City and Metro area,
it would seem to make a great
deal more sense that it be provided directly by the Province
rather than requesting the GTA municipalities to contribute
directly. This approach would be more appropriate,
particularly if it can be demonstrated that the revenues
generated by the Metro area and contributed to the Province
exceed the Provincial contribution to the Metro area.
4. The GTA community does have common needs.
We need a broader
interconnecting transit system. We could look at
infrastructure, water and sewer. We dont need a large super
city to solve this. Common problems can be negotiated via the
Mayor's committee or through Region to Region or City to City
negotiations. Also, there is too much power at the Province.
Some of the Provincial responsibilities should be handed down.
The simple requests should be closer to the people and more
accessible. This would reduce cumbersome bureaucratic avenues
that people have to take to get things done.
5. I do believe that special purpose bodies are not the answer.
M.S.A. S , District Health Councils, Police Services Board and
other proposed Provincial Authorities that have none or
partial accountability to the public through an elected
official, flies in the face of democracy. The taxpayer finds
this type of process frustrating and confusing.
these agencies
or questions.
SUMMARY
are usually remote and unresponsive
No sense of accountability exists.
Typically,
to concerns
I realize that I have not addressed all of the issues that You are
looking at. However, it is important that you know that we do have
faith in the importance of the Toronto area and understand its
contribution in the area of economic activity,
educational,
cultural and social opportunities.
However, we simply are not in
a Position to finance another community when we know there are high
profile and credible needs in our own community which we have had
to delay in order to control local taxes.
.../4
My Vision for my Community" includes:
THE CORPORATION OF THE
Town of Ha lt on Hills
P-O. 60X 128
1 Halton Hills Drive
HALTON HILLS (Georgetown)
Ontario
L7G SG2
May 25, 1995
Dr. Anne Golden
Greater Toronto Area Task Force
Office of The Mayor
393 University Avenue
20th Floor - 2001
Toronto, Ontario
M5G 1E6
Dear Dr. Golden:
Thank you for meeting with Mayor Gord Krantz and myself in Gords
office. Obviously the time allotted was too short. However, I
want to refresh your memory about the Town I represent and provide
you with some input.
The Town of Halton Hills is over 106 sq. miles~ with a population
of 38,444 people. We have two distinct urban centres, Georgetown,
(22,000), Acton, (7000), as well as the Hamlets of Norval,
Stewarttown and Glen Williams and numerous small settlement areas
such as Hornby, Silvercreek~ Limehouse, Ballinafad and Terra Cotta.
We are fortunate to have the picturesque Niagara Escarpment run
through our rural area. Ou r employment base is centred primarily
in our existing urban centres, however, commuting to surrounding
areas still dominate our life style. In the rural area, the
farming sector remains a viable entity, consistent with the
character of the Region of Halton. New, planned, industrial
opportunities are emerging in Halton Hills in Georgetown (400
acres) and 401 Corridor Industrial area (1000 acres). However, we
are constrained by servicing limitations which in time I am hopeful
will be resolved.
We have managed to maintain a zero increase in our local property
taxes over the past four years. Our growth has increased in the
Georgetown area over the past five years by 5,000 people, with a
projected increase of 16,000 over the next 15 to 20 years, if
Halton Region can resolve our water source concerns.
Acton has
finally received permission to add 3,000 people with a
infrastructure cost of at least two million dollars for sewage,
water and stormwater management.
. . . / 2
Telephone:(416)873-2600 Toronto: (416)798-4730 Fax No:(416)873-2347
- 2 -
We are somewhat restricted in the cultural, social and recreation
amenities that we can provide as a result of our commitment to a
zero tax impact and the high cost of two urban centres,
10 km.
apart. As a Town, we are consciously cost cutting and continuously
streamlining in order to stretch our resources. For example, we do
not provide a transit system to our residents as it would be too
costly.
I do not want to leave the impression that our quality of life
which we enjoy is lacking. In fact, the opposite is true. Most
people remain or move to Halton Hills because of its beauty, charm,
preserved natural environment, rural areas and open spaces. Halton
Hills is a Town of Communities' that treasures and preserves its
historical past and builds on this uniqueness for its future.
As Mayor, I feel that it is essential for you to understand our
history and community situation in order to realize that this
community would find it difficult to be part of the Metro solution.
The feeling here is that the Metro problem is being forced on the
rest of the Greater Toronto Area when in reality, we are not in a
position to financially help when we have continuously sought to
conscientiously utilize our limited resources to promote harmony
and attempt to fulfil community expectations.
In assessing the current situation, we fully recognize the
importance of the city of Toronto and the Metro area as a prime
economic engine of Ontario. We also understand that it is
important to all of the Municipalities for this area to remain
vibrant and competitive in the future. The question then becomes
how does one achieve that goal? outlined below are my observations
and recommendations for your consideration:
1
0
The very first step should be to overhaul the property
assessment situations within the Metro area. I realize that
attempts have been made in the past and have failed but, it is
totally unrealistic to look to other Municipalities for any
form of assistance when the main system of revenue generation
is in such disarray. While the assessment situation in the
Region of Halton may have been less confusing than the Metro
situation, nevertheless, difficult decisions surrounded by
much controversy had to be made. The net result is that a
system considered to be more equitable will be implemented for
the 1996 tax year.
2. The City has not appeared to streamline their internal system
of government and service provisions. Looking in from the
outside, provision of services, transit, recreation and
cultural opportunities are plentiful. As well, the education
and employment opportunities, are both varied and appreciated.
.../3
- 3 -
Under the circumstances, a financial contribution to Toronto
or Metro is a hard sell in Halton Hills. Perhaps the City
should do a comprehensive review and implement the more with
less philosophy respecting their corporate structure and
service delivery. This would provide a level of comfort for
the other GTA communities that they have already sought some
solutions to the problems and in fact, have their own house
in order.
3. If some form of financial assistance is considered necessary
for the City and Metro area, it would seem to make a great
deal more sense that it be provided directly by the Province
rather than requesting the GTA municipalities to contribute
directly. This approach would be more appropriate,
particularly if it can be demonstrated that the revenues
generated by the Metro area and contributed to the Province
exceed the Provincial contribution to the Metro area.
4. The GTA community does have common needs. We need a broader
interconnecting transit system. We could look at
infrastructure, water and sewer. We dont need a large super
city to solve this. Common problems can be negotiated via the
Mayors committee or through Region to Region or City to City
negotiations. Also, there is too much power at the Province.
Some of the Provincial responsibilities should be handed down.
The simple requests should be closer to the people and more
accessible. This would reduce cumbersome bureaucratic avenues
that people have to take to get things done.
5 . I do believe that special purpose bodies are not the answer.
M.S.A. S , District Health Councils, Conservation Authorities,
the N.E.C., Interim Waste Authority, Police Services Board and
other proposed Provincial Authorities
that have none or
partial accountability to the public through an elected
official, flies in the face of democracy. The taxpayer finds
this type of process frustrating and c&fusing.
-
these agencies are usually remote and unresponsive
or questions. No sense of accountability exists.
Typically,
to concerns
SUMMARY
I realize that I have not addressed all of the issues that you are
looking at. However, it is important that you know that we do have
faith in the importance of the Toronto area and understand its
contribution in the area of economic activity, educational,
cultural and social opportunities. However, we simply are not in
a position to finance another community when we know there are high
profile and credible needs in our own community which we have had
to delay in order to control local taxes.
.../4
- 4 -
My Vision for my Community includes:
B
controlled growth with urban separators, a managed
tax base, autonomous control over decisions and
lifestyle, secured and manageable infrastructure
and better choices of employment opportunities.
B
the preservation of historical settlement areas with
their prominent reminders of the past.
B
farming to remain a viable contributor to our economic
base.
B
transportational opportunities throughout Halton will be
available and transportation flows East will be enhanced
both ways. All day transit will be here and utilized.
Toronto will be a viable and accessible destination for
education, employment and fun. Toronto has the
opportunity to remain the Economic Engine of Ontario
a
,
in fact a leader in the World.
In closing, I would be please to discuss these thoughts further
with you.
Sincerely,
Mayor Marilyn Serjeantson
Ms/ sc
REPORT TO:
FROM:
DATE:
REPORT NO.
SUBJECT:
. .
Members of Council
Mayor G. Kranz, Chair, Ad-Hoc Governance Committee
July 4,1995
Milton's Vision for the Greater Toronto Area
RECOMMENDATION:
That the paper entitled Miltons Vision for the GTA, be forwarded to the
Greater Toronto Area Task Force as Milton Councils submission to the ,
Task Force;
And t hat the af orementioned paper be sent to the Governance Committee
for the Region of Halton and other appropriate bodies, agencies and individuals
deemed appropriate by Mayor Krantz and/or Council.
REPORT\
The attached paper represents a consensus position of the Ad-Hoc Committee on
Governance and submissions received from individual Members of Milton Council and
Department Heads. The Greater Toronto Area Task Force is still accepting position
papers on the GTA and it is recommended that the paper be submitted to the Task
Force as Miltons input to the process.
In addition, the paper should be submitted to the Region of Halton Committee on
Governance and any other bodies and agencies deemed appropriate by Mayor Krantz
and/or Council.
Respectfully submitted
G.A
Mayor
GAk/dd
attachments: -Miltons Vision for the GTA;
-
-Proposed Report entitled Reforming the GTA Retooling to Manage
Growth, Ensure Tax Fairness and Improve Local Accountability, by the
Regional Chairs of Durham, Halton, Peel, York;
-Discussion Paper entitled Running the GTA Like a Business, by the
City of Mississauga Senior Management Team
- GTA Fax News - Bulletin Nos. 1 and 2
MI LTONS VI SI ON FOR THE G.T.A.
Mayor G. Krantz,
Members of Council
Town of Milton
July, 1995
Miltons Vision for the G.T.A.
The purpose of this discussion paper is to put forward a Town of Milton Vision on the
Future of the Greater Toronto Area (GTA). This paper includes a vision for the GTA, a
Statement of Values, and Miltons position in the areas of Governance
and Urban Form,
and, Finance and Taxation.
The request from the GTA Task Force comas at an opportune
time for Milton in that Milton
has just completed an eighteen month planning process which has seen Milton develop
a Strategic Plan and four specific action plans in the following areas:
B Economic Development and Tourism
B Environment and Land Use (a new Official Plan)
. Leisure and Library Services
B Management Information Systems
Milton believes that the vision developed as part of its Strategic Plan can be extrapolated
to the GTA as we believe the Vision and Statement of Values that we have adopted are
fundamental to the well being and success of not only Milton but the GTA ar ea as a w hol e.
As the diagram on the opposite page, shows many factors are currently at work to impose
change on the GTA Municipalities.
Economic Development initiatives have bean carried out on a GTA wide co-operative
basis as municipalities have recognized that attracting investors to the GTA is the top
priority. Every municipality in the GTA will banefit to some extent regardless of where
an industry locates.
The Provincial/Municipal Relationship is under increased scrutiny. With the failure of
the disentanglement exercise there is an increased initial need to address the tangled
web that is the Provincial/Municipal Relationship.
Major Population Growth is forecasted for the four regions surrounding Metro, while
Metro itself will remain static in terms of its population. Over the next fifteen years almost
two million people (another Metro), will be added to Peel, York, Durham and Halton
Regions. Most of these will be from other countries and people leaving Metro itself.
Miltons Vi si on for the GTA
The GTA Mayors Committee was initially formed to focus on Economic Development
issues but has lately broadened its mandate to include other major issues such as
governance, finance and taxation, infrastructure, ate. and has become a major voice in
advocating the Iocal municipal position in the GTA
With the outcome of the recent Provincial election changes will be made to legislation
affecting municipalities (ie: employment equity, Iabour, etc.)
There is no doubt about the need for new and the replacement of deteriorating
Infrastructure across the GTA With the fiscal constraints that exist at all levels of
Government unique and different funding approaches are evolving.
The trickle down theory of public finance will surely see munlclpal transfer payments
continue to dwindle, if not totally disappear. Municipalities are at the bottom of the fiscal
pyramid. As the feds and the province in turn have turned off the tap. Municipalities will
have to continue to assume increased funding responsibilities or cancel programs and
services.
The property tax system in Ontario continues to be in chaos. Assessment bases are not
consistent among regions and individual.municipalities within regions. Metropolitan
Torontos base has not bean updated in over 40 years and the situation continues to
deteriorate. Continuing inequity and appeals are eroding the Metro system to the point
where Metro is losing assessment at the rate of 3- 4% par year. The system has been
under reveiw since the early 1970s but little has changed. The property tax system has
contributed to Ontarios increasingly uncompetitive situation when it comes to attracting
industry and jobs.
Governance of public services is becoming the issue of the 90s. The Provincial Tories
were brought to power with duplication, blurred roles and responsibilities and over-
government as one of their major campaign issues. Municipalities will have to revise the
way services are delivered or it will be forced upon us.
The GTA Task Force has been struck to deal with many of the issues highlighted above.
They must be dealt with in an expedient and decisive way and the newly elected
government is strongly urged to continue the work of the GTA Task Force.
Miltons Vision Statement for the GTA
In July, 1994 Milton Town Council adopted a Strategic Plan for the Town. Community wide
consultation played a major role in the development of the vision, goals and strategies of
the plan. In all, over 1500 community contacts were made. These were accomplished
through surveys, briefs, workshops, interviews and focus groups were made.
Miltons Vision for the GTA
We believe that the Vision adopted for the Town of Milton should be extrapolated for the
GTA and as such we have prepared the Statement that follows as our Vision end
Statement of Values for the GTA
We do not wish to impose our view of the world on others but we believe in our community
and we believe that the community has articulated a well thought out and balanced view,
one that is often heard throughout the GTA
The Vision Statement describes the Vision and Values as follows:
The Vision: To be the Best of City, Town and Country ln North America
The Statement
Of val ues: For Living: A Well-planned Area with a High Quality of Life,
which
. .
For Business:
A Dynamic and Prosperous Economy,
For Leisure: Natural Amenities and Lifestyle Choices,
which
Miltons Vision for the GTA
Page 5
B Major infrastructure needs should increasingly be funded on a fee for service basis.
Governance and Urban Form
. Municipal Welfare should be totally integrated with the Provincial program, and be
delivered by the Province and funded from the Income Tax base.
Page 7
B The number of Local Boards and Commissions should be reduced and these special
purpose bodies should report directly to local Councils where overall program
responsibility and funding exists.
B planning responsibilty for the Niagara Escarpment should be assumed by municipal
governments and the Ministry of Natural Resources and/or the Ministry of Environment
should continue with the legal and administrative responsibilities.
September 29, 1995
Ms. Anne Golden
Chair, Greater Toronto Area Task Force
393 University Avenue
20th Floor - 2001
Toronto, Ontario
M5G 1E6
Dear Ms. Golden:
Attached is a report approved unanimously by the Halton Board
of Education at its regular meeting on September 28, 1995. It
represents our Boards input and advice.
Should you have any questions about our report, please give
us a call.
Yours very sincerely,
Bob Williams
Director of Education
and
Secretary of the Board
bw:ld
Attachment
THE HALTON
O F F I C E O F
BOARD OF EDUCATION
T H E D I R E C T OR OF E D U C A T I O N
1995 09 28
Rpt. # 2200
TO THE CHAIR AND MEMBERS OF
THE HALTON BOARD OF EDUCATION
RE: SUBMISSION TO THE GREATER TORONTO
AREA TASK FORCE (GOLDEN COMMISSION)
Background
In February 1995, the Provincial Government established a Task Force
chaired by Anne Golden (popularly referred to as the Golden Commission
or Task Force) to study issues pertaining to the Greater Toronto Area
comprising the Regions of Durham
j
Halton, Metropolitan Toronto, Peel
and York. According to the terms of reference the objective is to
provide direction for the future governance of the GTA, including the
potential restructuring of the responsibilities and practices of
municipal and provincial governments. The Task Force must define a
system and a style of governance, appropriate to the Toronto of the
next century, that promotes economic health and competitiveness,
community well-being and a high quality urban environment. The first
concern of the Task Force is that of developing Confidence in the
Central City. (Appendix A)
To date, the Task Force has received many reports and submissions,
including submissions from Mayors, Regional Chairpersons and cities in
the GTA. The Task Force will continue to receive submissions to
September 30, 1995.
Services, Assessment and Funding Issues
In June 1995, the Chairs and Directors of the four Regional Public
School Boards in the GTA met with Anne Golden and conveyed the
following concerns.
I.
II.
III.
IV.
Metropolitan Toronto Boards because of their pooled tax base
currently have the capacity to provide levels of services and
administration well beyond what the Regional Boards can provide
for comparable needs.
There is no agreed base level of services and, therefore, no
ability to determine appropriate expenditure levels.
In any arrangement that brought Regional and Metropolitan funding
together, the Regional Boards of Education could not/would not
raise their per pupil expenditure levels to those of the Boards
in Metro.
Regional School Boards, given that there is no agreed base level
of services, are not prepared to raise taxes in order to allow
Boards in Metro to maintain their current levels of expenditures.
v. Metro Toronto must be urged to revise its valuation methodolog
for assessment to bring it in line with the rest of the provinc
At the June meeting with Anne Golden, the Chairs and Directors agreed
to provide some details of comparative expenditures. Subsequently,
Barbara Moore, formerly Superintendent of Business and Finance with
the Halton Board and recently retired Superintendent of Business an
Finance in the Central Ontario Regional Office of the Ministry of
Education and Training, prepared a draft paper on behalf of the fou
Regional GTA Boards (Appendix B).
Barbara Moores draft paper provides useful information in gross te
of the relative wealth and expenditures of the Regional and Metro
Boards. On page 6 under Financial Information, she states It is
extremely difficult to draw conclusions when comparing the financia
operation of School Boards unless an indepth analysis of their
expenditures is performed.This caution is particularly relevant
when, for example,administrative and classroom costs are examined.
The data (based on the 1994 MET statistics) are not readily compara
because different Boards group expenditures differently, e.g. Human
Resources, Academic Computing are categorized under Instruction in
some Boards and under Administration in others. What is significant
in this report, however, arethe differences in assessment base, mill
rate effort and per pupil operating costs.In the case of per pupil
expenditure for example, the average of the GTA Regional Boards is
$6,804 versus $8,674 for the Metro Boards.
The draft paper also raises the issue of the potential benefits of
pooling of industrial/commercial assessment within the GTA. The
suggestion that this could be to the benefit of the GTA Regional
Boards is based on the assumption that, in a reconfigured GTA
arrangement, assessment ratios in Metro (i.e. industrial/commercial
residential) would remain at their current levels. It iS highly
unlikely that in a pooled GTA environment, the assessment rates in
Metro would remain at their present levels. The lowering of
industrial/commercial levels in Metro, coupled with successful appeals
could lead to a significant reduction in assessment, unless it was
offset by market valuation on residential property, It is debatable,
therefore, whether the GTA Regional Boards have anything to gain fro
the pooling of assessment. In any event, arational valuation and
assessment methodology in Metro should precede any structural chang
to the GTA.
The quality of education and the knowledge and skills of Ontarios
workforce are seen by government and business as major factors in
Ontarios strategic competitive advantage, as well as in human
development planning. The Ontario Government has recognized that
these factors will be even more critical in the future.
The Ontario
Ministry of Finances Ontario Economic Outlook. 1994-1998 states W
population growing by 1.6 percent a year, the need for public sector
services will continue to expand.The demand for education is
increasing even faster,as students seek to upgrade their
qualifications to ensure good jobs in a more competitive world.
Given this prognostication, it is imperative that the Ontario
Government demonstrate its commitment in a tangible fashion. The
Provincial share of funding for School Boards went from 61 percent in
1975 to 34 percent in 1993. In spite of the best efforts of this
Board to be financially responsible, growth and reduced provincial
grants result annually in local tax increases.
Governance and Planning Issues
In reviewing some of the submissions to the Golden Task Force from
Municipalities and Mayors, senior staff have noted recommendations
that either Municipalities take over responsibility for education from
Boards of Education or that education funding be removed from property
tax and become a direct responsibility of the province.
Recommendation #3 states the consensus position of the Chairs and
Directors on the issue of School Board jurisdiction.
It is worth repeating that School Boards are among the earliest forms
of democratic local government in this province, preceding the
establishment of Regional and Municipal Boards. There is a long
history and tradition of elected trustees sensitive to the educational
needs of young people, as well as the concerns and interests of the
local community. The Halton Board does not believe that the interests
and expertise of Regional and Municipal Councils, as well as their
other competing responsibilities, would allow them to offer the
quality of service and accountability that School Boards currently
provide.
Proposals that the Regions take over responsibility for building
schools and capital projects are predicated in most instances on the
jurisdiction for education passing to the Municipalities and Regions.
Not only does the Halton Board reaffirm its position that School
Boards retain jurisdiction for facilities, it believes that many of
the issues that relate to the acquisition of school sites and the
building of schools can be addressed in a timely fashion if School
Boards were legislated partners in the planning of land use
development. Currently, School Boards usually only become aware when
plans are already well developed. This does not allow School Boards
to plan, and imposes a hardship on growing Boards to provide schools
at significant cost.
The phasing of development, legislated School Board participation in
land use development planning and the potential use of Educational
Development Charges (EDCs) may facilitate the total planning process,
provide revenues to assist the acquisition of school facilities and
eliminate much of the frustration felt by developers, home buyers and
School Boards.
The Chairs and Directors of the GTA Regional Public School Boards are
united in the view that School Boards are prepared to work
co-operatively with Municipalities and developers to achieve rational,
fiscally equitable and responsible development plans.
It is recommended:
THAT the Halton Board of Education support the following
positions.
1) THAT Provincial Pooling is not deemed as an appropriate
direction for education finance since direct responsibility
and accountability would be lost.
2 ) THAT a rational assessment and valuation methodology be
implemented in Metro Toronto as a precondition to any
pooling of assessment within the GTA.
3) THAT Boards of Education continue to maintain
responsibility for local school governance, finance and
facilities.
4) THAT prior to any final report on Educational Finance
Reform, the Government of Ontario, through the Ministry of
Education and Training, define the specific roles and
responsibilities of Boards of Education vis-a-vis primary
providers in such areas as social services, day care,
health care.
5) THAT prior to any final report on Educational Finance
Reform, the Government of Ontario consult with School
Boards to determine appropriate expenditure levels that
reflect an agreed range of services required to meet
students* needs.
6) THAT the Planning Act be amended to (i) require
consultation with School Boards in the planning of land use
development and (ii) contain a provision to require the
phasing in of new development in accordance with the
availability of adequate school accommodation, as with
other necessary infrastructure.
Respectfully submitted,
Director of Education
APPENDIX A
TERMS OF REFERENCE
2
3
*
4
P
P
.
APPENDIX B
DRAFT PAPER
PROPOSED DATA
FOR SUBMISSION TO
THE G.T.A. TASK FORCE
BY THE REGIONAL BOARDS OF
DURHAM, HALTON, PEEL
Prepared by:
Barbara Moore
August 25, 1995
AND YORK
1.
OVERVIEW OF EDUCATION FUNDING IN ONTARIO
Elementary and secondary education in Ontario is a shared responsibility between the
province and local school boards. The province establishes objectives, standards and
guidelines through the Education Act, policy memoranda, and regulations. School boards
determine how education programs and services are delivered, and the resources
required to carry out their responsibilities.
School board expenditures are funded from two major sources - property taxes and
provincial grants.
THE FUNDING MECHANISM
The funding mechanism for elementary and secondary education is embodied in a set of
legal documents known as the General Legislative Grants (GLG) regulations. Through
a combination of operating and capital assistance programs, the GLG Regulation attempts
to mitigate inequities in financial resources among school boards across the province.
These assistance programs can be referred to as equalization payments since they
attempt to equalize the financial resources among school boards by taking into account
the size of the local tax base (i.e., resources available) and the resources required by a
school board to provide the base level of education service.
Two principles guide the determination of the level of provincial support available to a
school board:
(1) All school boards must have equitable financial resources to provide a base
level of education.
(2) All property ratepayers must make the same tax effort to raise the Iocal share
of the costs of providing the base level of education.
Recognized Expenditures
Each year the province establishes a dollar amount per pupil which is intended to
represent the cost of providing a base level of education to a student. The recognized
expenditure level of a board is established by applying the basic per pupil grant amount
to the boards enrolment. (Principle number 1)
In most cases, the recognized expenditure is funded through a combination of property
tax revenue and provincial grants. School board expenditures that exceed the recognized
amount are funded 100% by property taxes.
,.
Property Taxes
Property taxes for recognized expenditures are determined by applying a provincially
determined Standard Mill Rate to the local property assessment in each school board.
The application of a provincially uniform tax rate ensures that all property ratepayers
make the same effort to fund recognized expenditures. (Principle number 2)
Assessment Equal i zat i on
The assessment base of a school board is calculated as the value of all property in the
municipality or municipalities it serves. This is its rateable assessment. For some
municipalities, rateable assessment is at recent market value, while other municipalities
have rateable assessments that are only a portion of market value.
Since it is necessary in the grant mechanism to have a common measure of school board
assessment, assessment equalization factors are applied to convert the local rateable
assessment base to a common level of equalized assessment or adjusted market value.
Assessment wealth is not evenly distributed throughout the province. Some communities
have high-value residential properties or large commercial or industrial complexes that
contribute more to the total wealth in the community. School boards in such communities
have access to a Iarge amount of tax revenue from the property tax base.
Grants From the Province
Grants are provided to school boards to make up the difference between the total
recognized expenditure of a board and the amount of property tax revenues raised
through the application.of the provincial uniform tax rate for recognized expenditures. The
provincial grant ensures that the basic amount per pupil is available to all school boards
using the same tax effort,
The funding principles behind this calculation ensure equality of resources for all school
boards and equality of tax burden for all ratepayers for a base level of education.
Unrecognized Expenditure
School boards can raise additional property taxes to cover expenditures in excess of
amounts recognized by the province. There is no provincial support for unrecognized
expenditures. Therefore, unrecognized expenditures are funded 100% from local taxation.
Local boards are totally dependent on their local assessment base to make up this
excess. Because of the large differences in local wealth of school boards across the
province, the impact of exceeding the recognized expenditure amount causes a greater
tax burden on the less wealthy boards as opposed to the wealthier school boards. This
is the area where major inequities in funding exist.
IMPACT OF FUNDING MECHANISM
The results of the current funding model
3.
on the four regional public boards of the G.T.A.
and the Metro Toronto School Board are outlined below. The data used to prepare this
information has been extracted from the Ministry of Education and Trainings publication
Education Funding in Ontario, 1994.
Assessment Wealth
Diagram 1 indicates the differences in the size of the per pupil equalized assessment
base available to the regional public boards of Durham, Halton, Peel and York and the
Metro Toronto School Board at the elementary panel, The Metro Board has an
assessment wealth which is 2.6 times greater than the Durham Board and 1.5 times more
than York Region Board.
In addition, Appendix A provides the amount of rateable assessment available to each
board for 1994 taxation purposes. This data is from the 1994 financial statements of the
boards.
DIAGRAM 1
4
ASSESSMENT WEALTH COMPARISON
(1993 per pupil equalized assessment by board)
810,739
4.
.-
Provincial Grants
A graphic illustration of the current funding model as it applies to the five boards is shown
in Diagram 2 and the actual per pupil amounts are detailed in Diagram 3.
DIAGRAM 2
THE CURRENT FUNDING MODEL
3
2
I
O
DIAGRAM 3
Peel 5,464
1
York
I
5,186
Recognized Provincial Provincial
Ordinary Tax Grant
Expenditure Yield
4,134 1,763 2,371
4,134 2,651 1,483
4.134 I 2.987 I 1.147
4,134
4,134 4,624 (490)
Over-Ceiling
Expenditure
802
1,004
1.330
1,052
5.
As shown above, Durham Board being the least wealthy receives the largest grant per
pupil from the province, On the other hand, the provincial tax yield for Metro is greater
than the provincially recognized ordinary expenditure by $490. This situation disqualifies
Metro from receiving any provincial grants toward their recognized expenditures.
Unrecognized Expenditures
Two comparisons for the elementary panel showing the impact of the inequities on over-
calling expenditures among the boards are contained in Diagram 4. The mill rate
calculations are based on the equalized assessment wealth figures from Diagram 1. The
first comparison shows the mill rate impact of raising $100 per pupil over the provincially
recognized per pupil amount. The impact directly reflects the individual wealth of each
board compared to Metro; i.e., the mill rate required by Durham to raise $100 per pupil
is 2.6 times greater than Metro.
The second comparison shows the mill rate impact of the estimated 1994 over-ceiling
expenditure for each board. The over-ceiling expenditure for Durham is approximately
one-third of Metros over-ceiling expenditure, however, the mill-rate effort required to raise
the $802 per pupil is 82.5% of Metros required mill-rate effort to raise $2,549 per pupil.
DIAGRAM 4
York
Metro
Appendix B provides the estimated 1994 over-ceiling expenditures of the five boards in
graphic format for both the elementary and secondary panels.
ENROLMENT AND FINANCIAL INFORMATION
The data contained in this section is based on the school boards 1994 Estimates
extracted from the Per Pupil Survey published by the Ministry of Education and Training.
. . .
Enrolment
The student population in the regional boards of Durham, Peel and York has been
growing steadily since 1981. York Region Board, being the fastest growing board, has
increased by more than 66% between 1981 and 1994. Halton, on the other hand,
declined by 11% during 1981 to 1990 and has since Ievelled off. Metros student
population also declined during the years 1981 to 1990 by 21% but by 1994 it had
increased by 18/0. However, the 1994 total enrolment for Metro Toronto School Board
is still below the 1981 level by 6%. Diagram 5 provides total student enrolment in the five
boards, as well as the total enrolment of the four regional boards for the years 1981, 1989
and 1994.
Appendix C provides further details of the enrolment history for the five school boards for
the period 1988-1994.
DIAGRAM 5
York 42,386 57,090
Total for
Regions 217,745 . 232,245
Metro 300,364 237,237
34.69 70,455 23.41 66.22
6.66 260,945 12.36 19.84
-21.02 281,638 18.72 -6.27
Financial Information
It is extremely difficult to draw conclusions when comparing the financial operation of
school boards unless an indepth analysis of their expenditures are performed. Even
though the five boards are similar in many ways, they differ in their resource needs due
to geographic, demographic and socio-economic conditions. Therefore, the comparisons
which follow do not take into account any of these factors.
1 0 0
Elementary
Secondary
INSTRUCTION
Metro Toronto, being the largest of the five school boards, is also the most costly to
operate. The current cost of operating on a per pupil basis for 1994 (elementary) ranges
from Durhams low of $5,006 to a high of $7,042 for Metro with the variance being
$2,036. The secondary figures range from $6,475 to $8,574 for Durham and Metro
respectively with the difference being $2,099. Appendix D details the cost of operating
for all five boards for both panels.
The two areas of expenditure which are constantly being referred to or highlighted for
discussion are the cost of administration and the amount spent on the pupil in the
classroom. The per pupil expenditures for the two areas, as a percentage of the boards
total cost of operating, are compared in Diagram 6.
DIAGRAM 6
Elementary
Durham
Halton
Peel
York
Metro
Secondary
Durham
Halton
Peel
York
Metro
Current Cost Ratio as a Classroom Ratio as a
of Operating Administration % of CCO Instruction % of CCO
5,688 202 3.55 5,098 89.63
5,390 146 2.71 4,767 88.44
7,042 229 3 . 2 5 5,832 82.82
6,475 162 2.50 5,353 82.67
6,981 164 2.35 6,009 86.08
7,097 313 4.41 5,624 79.24
6,653 178 2.68 5,464 82.13
8,674 416 4.85 6,285 73.30
The amount per pupil for administration includes the costs of Business Administration,
General Administration and Computer Services. The percentages for the elementary
panel range from a low of 2.06 in Halton to a high of 3.55 in Peel. At the secondary
panel the range is from 2.35 in Halton to 4.85 in Metro. The dollar variance per
elementary pupil between Metro and the four regional boards ranges from $27 to $125,
and at the secondary panel ranges from $103 to $254.
Per pupil expenditure for classroom instruction shows Metro directs the Iowest percentage
of total dollars spent of all five boards into the classroom, even though their actual dollars
spent are higher than the regional boards.
8.
If the regional boards were to increase their per pupil classroom expenditure to the same
dollar level as Metro, an additional $225 million would have to be raised through the local
mill rate. The dollar amount and the mill rate impact for each of the regional boards is
contained in Diagram 7.
DIAGRAM 7
1994 A.D.E. $ PER PUPIL
TOTAL DOLLARS IMPACT
ESTIMATES
MILL %
RATE INC.
Elementary
Durham 35,766 1,332 47,640,312 25.487 45.02
Halton 25,099 1,023 25,676,277 25.395 22.38
Peel 56,466 734 41,446,044 4.559 13.42
York 4 3 , 8 4 2 1,065 46,691,730 8.353 19.96
Sub-Total 161,454,363
Secondary
Durham 18,386 932 17,135,752 9.167 18.45
Halton 14,813 276 4,088,388 4.044 4.16
Peel 33,987 661 22,465,407 2.471 9.54
York 24,618 821 20,211,378 3.616 10.95
Sub-Total 63,900,925
Grand Total 225,355,288
Appendix E provides in graphic format a comparison of the expenditures for
Administration and Instruction, as well as Pupil Transportation, Plant Operation and
Maintenance, and Capital and Debt Charges.
Expenditures for Pupil Transportation at the elementary level are fairly even for all boards
except York Region which spends approximately $100 per pupil more. At the secondary
panel, Metros expense is very low, while Durham and York are significantly higher.
Plant Operation and Maintenance at both panels for all the regional boards are similar.
However, Metros per pupil costs exceed the regional boards by approximately $500
elementary and $450 secondary.
9.
The per pupil expenditures for Capital and Debt Charges appear to have the greatest
variance among the boards. This is one area where Metros expenditures are very low
compared to the regional boards.
POOLING OF COMMERCIAL ASSESSMENT
One area that could be considered to improve equity to the boards in the G.T.A. would
be the pooling of the commercial tax base. Appendix F shows the effect of pooling
commercial assessment on the basis of resident pupils and the impact pooling would
have on the equalized mill rate. Pooling in the G.T.A. would decrease Metros equalized
tax base by $19.4 billion and increase the base for the four regional G.T.A. boards. The
impact on the equalized mill rate for the regional boards is a fairly significant reduction.
This reduction would improve the regional boards ability to increase expenditures to a
level similar to Metro.
Diagram 8 compares the equalized assessment per pupil (elementary) for 1994 to the per
pupil amount if pooling were to be implemented.
DIAGRAM 8
1994
Resident
Pupils
Durham 35,824
Halton 25,129
Peel ] 56,526
York 43,897
Metro 153,258
1994 Metros Pooled Metros
Equalized Ratio to Equalized Ratio to
Assessment Board Assessment Board
Per Pupil Per Pupil
354,858 2.51 554,871 1.38
547,424 1.63 691,659 1.11
598,070
I
1.49 ] 672,072 I 1.14
II
623,677 1.43 724,660 1.06
892,020 1.00 765,400 1.00
As shown above, the gap in the ratio of Metros per pupil assessment compared to the
regional boards decreases substantially with the pooling of the commercial assessment
base.
YEAR
1988
1989
1990
\
1992
!
1993
1994
50,411
51,640
53,076
54,611
55,534
56,149
2,790
1,983
3,518
2,750
2,863
2,251
16,155
METRO
APPENDIX D
Elementary
ELEMENTARY PANEL
Residential
Assessment
10,404,276,444
1,869,206,891
1,011,059,598
9,090,436,208
5,590,142,868
17,560,845,565
253,417,697
1,079,217,603
1,891,290,053
1,307,355,063
3,529,768,944
246,722,720
8,307,772,080
25,868,617,645 1,933,814,101
APPENDIX B
1 0 0 0
500
0
PLANT OPERATION AND MAINTENANCE
CAPITAL & DEBT CHARGES
Secondary
APPENDIX F
EFFECT OF POOLING COMMERCIAL ASSESSMENT
FOR G. T. A. ON BASIS OF RESIDENT PUPILS
ELEMENTARY
7,165,271,017
3,624,473,423
4,182,994,913
4,432,872,251
19,405,611,603
IMPACT OF POOLING COMMERCIAL ASSESSMENT
6.602
8.131
7.354
9.978
-3.209
-1.889
-1.122
-1.316
0.327
Submission to GTA Task Force
Prepared by:
Halton Hills Corridor Development Association
The Association
The Halton Hills Corridor Development Association (the Association)
consists of 86 members each of whom owns land in the corridor between
Steeles Avenue and the 401, east of the City of Mississauga and west of the
Town of Milton. The land is located in the Town of Halton Hills and is known as
the 401 Industrial Corridor. It consists of approximately 1,000 acres and, was
identified by the Town of Halton Hills as a 401 Corridor Industrial Area in the
Towns Official Plan in the early 1980s. Unfortunately, there was no Ministerial
approval of the Towns Official Plan which would have designated the lands for
industrial use, therefore the lands remain with an underlying designation of
rural under the Oakville Official Plan.
The Planning Process
In 1986, the Regional Municipality of Halton commenced its Halton
Urban Structure Review and prepared the Halton Urban Structural Plan
together with a Halton Regional Official Plan. The Association was involved
extensively in this planning process. The Official Plan for Halton adopted by
Regional Council on March 30, 1994, designated the lands agricultural, rural
area. This was despite all the Associations input. The Association has asked
the Minister to refer this designation to the Ontario Municipal Board and, have
recently been advised that the Minister is preparing to defer the designation
which means that the lands will continue with the designation set out in the old
Oakville Plan.
The Association has spent a great deal of time, effort and money towards
representation of their interest in the planning process undertaken by the
Regional Municipality of Halton. The Region currently takes the position that
these lands cannot be designated for industrial use until full services are
available and the means for payment for the services has been determined. It is
very obvious to the members of the Association today that the Region of Halton
will be unable to supply services to the lands for many years to come.
The Submission
As indicated, the Associations members lands abut the City of
Mississauga. Water and sewer services are almost at the border of the corridor
lands and, it is our opinion that it would make good sense for lands in this
corridor to be transferred from the Town of Halton Hills to the City of
Mississauga. Without this transfer, the lands will remain unserviced and
undeveloped for many years and will lose their potential to attract business and
employment to this portion of Ontario. The lands are highly attractive due to
- 2-
their accessibility to United States destinations, the proximity to the 401, 403
and 407 corridors and Pearson International Airport. In our opinion, it makes
good planning and good economic sense to have these lands removed from
the jurisdiction of the Town of Halton Hills and transferred to the City of
Mississauga.
In addition to the economic and planning reasons, there are legal
reasons for the proposed transfer. The Association members for legal reasons
involving litigation cannot deal effectively with the Council of the Town of Halton
Hills on planning for the lands. The Municipal Conflict of Interest Act has left
only three Council members available to consider planning in the corridor. We
are dealing with a Council which cannot and seems reluctant to make proper
planning decisions with respect to these lands.
We would further suggest that development could proceed more
expeditiously on these lands if the extra tier of Regional government were
removed and all powers given to that government were transferred to the area
municipalities.
Conclusion
In conclusion therefore, we support the following:
1. A transfer of the lands within the 401 Corridor to the Corporation of the
City of Mississauga.
2. The disbanding of the Regional Municipality of Peel and the Regional
Municipality of Halton and the transfer of its powers to the area municipality.
Submitted by the
Halton Hills Corridor Development Association
Norbert J. Pike, Vice-President
Address all correspondence to the
Chair of the Board
Box 2700, 1151 Bronte Road
Oakville, Ontario L6J 5C7
Board Office (905) 825-4816
Fax Number (905) 825-9417
Milton/Halton Hills (905) 878-5511
HALTON REGIONAL POLICE SERVICES BOARD
September 5, 1995
Dr. Anne Golden, Chair
GTA Task Force
Dear Dr. Golden:
Reforming the GTA - Discussion Paper submitted by Regional Chairs of Durham, Halton,
Peel & York:
At the Halton Regional Police Services Board meeting held on August 24, 1995, the Board
considered the above-noted discussion paper submitted by the Regional Chairs of Durham,
Halton, Peel & York.
A lengthy discussion concerning this report and impact upon policing in Halton took place. As a
result of that discussion the Board endorsed the following resolution:
WHEREAS the Halton Regional Police Service was established in 1974
through the amalgamation of Burlington, Oakville, Milton and Georgetown Police
Services;
AND WHEREAS the Halton Regional Police Service is an extremely
effective, efficient community based organization, as is borne out by the attached
information;
AND WHEREAS the Halton Regional Police Services Board believes it to be in
the best interest of Halton residents to have the Halton Regional Police Service to remain
intact as an entity;
THEREFORE BE IT RESOLVED that the Halton Regional Police Services Board
advise the Golden Commission and the Solicitor General that it is in the best interest of
Halton residents for the Halton Regional Police Service to continue to provide
policing services for Halton.
Page Two
August 28, 1995
This resolution expresses the Boards serious concerns about the possible implication this may
have on Regional Policing in Halton in particular to the services provided to Halton residents.
If you have any questions concerning this resolution, please do not hesitate to contact me,
Richard Szymczyk
.
Chair
RS:apk
Cc. Chief Campbell
Sandi Humphrey, OAPSB
Paul LaCourse, HRPA
MEDIA
INFORMATION
HALTON REGIONAL POLICE SERVICE
ORGANIZATIONAL REVIEW PROJECT
22 JUNE 1995
HALTON REGI0NAL POLiCE SERVICE
NEWS R ELEAS E
Box 2700, Oakville, Ontario L6J 5C7
ORIGINATOR: Sergeant Joseph M. Martin
Media Relations Bureau
(905) 825-4899 or 878-5511, Ext. 5039
CONTACT: As above
FOR RELEASE: UPON RECEIPT -21 JUNE 1995
HALTON REGIONAL POLICE RESTRUCTURE
On Thursday, 22 June 1995 at 9:00 am, Chief of Police, Peter J. Campbell will present,
for the Police Services Board approval, a proposal for a restructured and cost efficient
Halton Regional Police Service. The focus of the reorganization was to advance
community policing concepts and principles and to reduce operating costs while delivering
quality police service to the citizens of Halton Region.
For the past nine months over 100 members of the Halton Regional Police have been
involved in a organizational review project. The Police Services Board directed that a
comprehensive review of the Police Service be undertaken in response to the 1993
provincial reductions of transfer payments (Expenditure Control Program) and social
contract legislation. The theme of the Organization Review Project was to eliminate,
combine or automate.
As 84% of the Police operating budget is personnel costs the Project Teams had to look
for ways of reducing the staffing budget in order to meet the more than 1.5 million dollar
reduction target. This huge task was accomplished with the elimination of many middle
management positions through early retirement incentives. No jobs have been lost
through the process and in fact a small increase in constables will be realized if the
proposal is accepted by the Board. The community policing concept will remain intact.
The media is invited to attend the proposal presentation at HRPS Headquarters, 1151
Bronte Rd., Oakville, Thursday, 22 June 1995 at 9:00 am. The proposal will dramatically
change the organizational structure of the Halton Regional Police Service. Members of
the Police Service Board and Senior officers will be available for comment. Media
packages outlining the entire project will be available at the meeting.
MEDIA
The Organizational Review Project report is the result of a great deal of dedicated effort
by many people who devoted much time to help the organization plan for the future. During
the past nine months of active participation we have learned and grown together. Perhaps
the ancient Chinese proverb states it best:
I f you wa n t on e yea r of pr osper i t y, gr ow gr a i n .
I f you wa n t t en yea r s of pr osper i t y, gr ow t r ees.
I f you wa n t on e h u n d r ed yea r s of pr osper i t y, gr ow peopl e.
Although there have been growing pains, largely we have jointly designed an organization
that we feel will help us meet the challenges of growth in Halton for many years to come.
We also believe that some skills have been developed which will allow us to meet similar
challenges, if necessary, in the future. This has been done through a Team effort involving
over one hundred participants.
Our next challenge is that of carrying out the ideas and recommendations and sustaining
the motivation for ongoing analysis of our processes and reporting requirements. Last
year, the Police Services Board approved in principle a Technology plan to help guide the
organization into the 21st century. This along with our current automation efforts will help
facilitate this analysis.
The recommendations to cut management and staff positions have not been easy. Without
restructuring, Halton Police Service measures very favorable on all productivity and
costing measurements used by the Canadian policing community. But the financial
imperative and public attitudes to tax increases are realities that cannot be ignored. We
have responded accordingly.
We sincerely believe we are at ground zero, having reduced and refocused our resources
to the maximum extent possible. We also believe we have demonstrated responsibility,
we have thinned management and supervisory positions, while zealously guarding our
Constable complement.
Peter J. Campbell, Chief of Police
June 15, 1995
ORGANIZATIONAL REVIEW PROJECT REPORT
EXECUTIVE SUMMARY
INTRODUCTION AND BACKGROUND
A.
8.
c.
o.
E.
F.
Background - Halton Regional Police Service had significant cuts to
approved budget levels in 1993 through provincial reductions of transfer
payments, (Expenditure Control Program - ECP), and social contract
legislation. As 84A of the Police budget is personnel costs, permanent
savings in salaries can only be generated by reducing positions. In 1994
and 1995, some organizational changes were initiated. There was a
reduction of seven c!erical positions due to the reduction of public office
hours in our stations and reductions in the levels of supervision in
Communications. As it was unlikely that provincial reductions would be
returned to budget, the Police Services Board directed that a comprehensive
review of the organization should be undertaken. As a starting point a draft
Mission statement was established in August. This report represents the
second phase of our formal review of the organization.
Theme - The main theme of the Organizational Review Project, (ORP), is to
eliminate, combine or automate those activities which take away from
our ability to effectively deliver services or which mean more paperwork and
bureaucracy.
The Objectives of the Organizational Review are primarily to build an
organization to meet future growth and to meet financial constraints.
Project Teams - Several Task Forces were set up involving over 100
members. In guiding our review we established certain guidelines which
along with the Mission Statement and terms of reference helped guide our
activities over the last nine months.
Analysis of Other Police Services - Documentation was received from
other police services in Canada to review reporting relationships,
productivity and staffing issues. In most cases Halton continues to compare
very favorably being close to the best ranking for most comparative
measurements.
Public/Employee Perceptions on Service - Public Survey - Although a
survey was initiated last Fall, the results had little impact on the
Organizational Review Project discussions. We expect to integrate the
findings through the implementation plan to support the proposed TEAM
Concept of Community Policing.
ORP Executive Summary Page 1
2
PROJECT TEAM RECOMMENDATIONS
The following are highlights of the major structural recommendations.
Additional procedural recommendations are attached as Appendix A. Over
170 total recommendations for change have come from ORP. The major
recommendations for change are outlined as follows:
COMMUNITY POLICING:
1. Develop an inter-platoon team approach for policing services
utilizing larger geographic areas (four recommended per district, but
to be determined given the varied characteristic and needs. )
2. Continue the concept of Resource Officers and review present and
future relationship between the concept and the role in community
policing.
CIB OPERATIONS:
3.
4.
5.
6.
7.
8.
9.
10.
11.
Add one Detecive rank to #l District CIB from existing complement.
Maintain the Detective Inspector in command of RCID that would
now include Intelligence and Surveillance.
Maintain the Detective Sergeants position in the Intelligence
Bureau reporting to the Detective Inspector in RCID.
Eliminate the Defective Sergeants position in the Identification
Bureau which is presently vacant.
The Detective Sergeant in Major Crime assumes supervisory
responsibility for the Identification Bureau.
The Defective Sergeant in Intelligence assumes supervisory
responsibility for the Drug Bureau.
Eliminate the Stenographer position in the Identification Bureau.
Replace the present darkroom printing function with an Electronic
Imaging System.
Create a Civilian Drug Exhibit Person in the Drug and Morality
Bureau under the supervision of a Detective or Detective Sergeant.
ORP Execulive Summa ry Page 2
12. Upgrade a Detective constable position in the Major Crime Unit
tO Detective.
13 Determine the need for a Street Crime Unit to deal with youth crime
and staffed by each interplatoon team.
14 Retain Crime Stoppers and Alarm Coordinator with Major Crime
FACILITIES:
15. Relocate 20 Division to Headquarters building based upon no cost
to the Service.
16. Central Lockup will be continued with monitoring.
17. Continue Fingerprint processing of accused persons from the
Identification Bureau in Headquarlers.
18. Typing of Court Briefs remain in the District to be reviewed as
technology advances.
COMMUNITY SUPPORT SERVICES:
19.
20
21.
22.
23.
Establish Education Services Unit consisting of a Sergeant (new),
D.A. R E. officers, School Resource Officers Safety Village staff.
Create a Community Policing Coordinator Sergeant (new) who is
responsible for coordinating, developing and maintaining central
depository for community programs.
Expand to Full time Victim Services Coordinator, (Civilian), to
coordinate VSU, help with program support and development of
complete guidelines
f or vol unt eer recrui t ment , st andards,
programming and training.
Move Media Sergeant to Community Support to enhance support
of public relations activities within Supped Services. Rename the
function as Public Affairs Unit
Maintain Centralized Traffic, Marine Unit and Auxiliary to be known
as Public Safety Unit. Staff the Marine Unit over the summer months,
with officers returning to District or other Service duties for the winter.
ORP Executive Summary Page 3
24. All of these units be grouped as the Community Supporl Unit to be
managed by a Staff Sergeant reporting to a senior officer
responsible for direction of Community Policlng programming and
deveIopment
25. Maintain Emergency Services at current strength with Canine
and eventually. E D. U. responsibilitie S. reporting to the Community
Policing Support senior officer.
UNIFORM OPERATIONS:
26.
27.
28.
29.
30.
31.
Remove the positions of Superintendent from the districts.
Reduce the Uniform Staff Sergeant positions in the Districts to
t wo.
Retain four Uniform Staff Sergeants (one per platoon) in District
Two during the monitoring of central Lock up and ORP transition.
Eliminate the position of crime Prevention Sergeant from each
district.
Retain the district Crime Prevention Constable in the district with
the ro!e to be redefined in support of the new community policing
model.
Maintain the principle of Community Directed Patrol and/or Village
Constables who will become part of the teams.
INFORMATION SERVICES:
32. Eliminate the position of the Director of Information Services.
33. Determine staffing needs in Computer Services subject to review
by consultants.
RECORDS:
34. Develop a strategic implementation plan for a direct entry system
to be implemented within two years.
35, Eliminate two records supervisor positions contingent upon the
results of the direct entry project.
ORP Executive Summary Page 4
36
COURTS:
37
38
39
40
41
Convert the Position of a records clerk to a full-time Validator.
Court Services report to the operational support section of the
Service
Fill the vacant Summons Servers positicn Summons department
shall have backup responsibility for Prisoner Escort in future
The Court Bureau operate with one Staff Sergeant, one Sergeant
and seven Constables.
Maintain Court Officer positions as Constable rank.
Eliminate two vacant full-time court brief clerk typists and provide
support through continuing par?-time staff in district #3 and #l.
COMMUNICATIONS:
4 2 Communications Bureau report to the operational support
portion of the Service.
43. Continue the management of the Bureau with a Staff Sergeant
rank.
44. Determine the need for switchboard after 11:00 pm. following the
move to Headquarters by Communications. with the possible
elimination of two positions that are now filled by contract.
HEADQUARTERS AND ADMINISTRATION:
45.
46.
47.
48.
49.
Assign an Inspector as the head of Professional Standards and
include a Detective Sergeant and a Detective. Public complaints
and the Police Services Act prosecution function is the
responsibility of the expanded unit.
Professional Standards continues to report to the Chief,
Eliminate the Executive Officer position.
Eliminate the Staff Superintendent position
Change the name Media Relations to Public Affairs. Move position
to new Community Support Services Bureau.
ORP Executive Summar Y Page 6
50
Assign the current secretarial supporl for the Chiefs staff to the
Community Support Services Bureau who wiII also assist with the
work of the chiefs staff.
51.
Amalgamate Planning/Audi/Evaluation Research function in a
single unit to report to the Chief and be augmented by a planning
analyst.
52. Not replace one of the Executive Secretaries. Some support is
necessary. This position wiII continue to be monitored and part-tree
help should be provided as required.
TRAINING & DEVELOPMENT:
53. Continue to explore Video unit evolving to Training Technology
Support for computer based learning.
ADMINISTRATIVE SERVICES:
5 4 Further review the Finance managers role. The present Ievel of
supervision in place does not appear to be required.
ORGANIZATION STRUCTURE:
55. Change organization to three tiered structure consisting of
operations, community support and administration. Optional models
are suggested rolling for one to three senior positions reporting to the
Chief.
3 PROPOSED ORGANIZATIONAL STRUCTURE:
A. Management - Three overall structures are offered for Board review - the
current model and two options. We are recommending Option#2, (Three
Tiered Model -Exhibit K-1 attached) as the structure that best meets the
need of the new organization and offers the maximum cost savings. This
model groups the organization under the Community Policing banner as:
B
Community Policing - Operations
B
Community Policing - Support
B
Community Policing - Administration
B. District Structure - The proposed structure is set out in Exhibit J and
includes no Superintendents and less Staff-Sergeants. The senior
command is an Inspector rank.
ORP Executivc Summary Page 6
4 FINANCIAL IMPACT
A. ORP Savings - Organizational review at HRPS essentially began with the
1994 budget when reduction in staff salaries was effected with having fewer
station duty clerks with shorter office hours for public access to our district
offices. Thi s al ong wi th restructuri ng l evel s of supervi si on i n
Communications saved about $320,000. The suggested position reductions
and structural changes recommended above will generate eventual
permanent savings of close to a $1,000,000. There are also future savings
of $213,000 to be potentially realized through our ongoing process
evaluation and streamlining. In summary, our efforts in 1994 and 1995 have
brought us close to our targeted savings of $1,500,000.
B. Staffing Levels - 8esides the seven civilian positions reduced in 1994 and
1995, we expect t o reduce another fourteen uniform
management /supervisory and civilian clerical positions from our complement.
We expect that this will be accomplished without layoffs of staff. We
recommend the following:
1. Maintain the total uniform complement to include the redundant
management positions as constables.
2. Hire constables to increase front line service as finances permits in
the future,
3. Upon completion of Organizational Review, develop a Human
Resources forecasting model that will validate future HRPS staffing
needs.
c . Financial Projections - With the current attrition and that expected through
another early retirement program, we are confident in meeting regional
budget objectives in 1996. Analysis of the impact on future years is ongoing.
5 ACTIONS REQUIRED
A. The Police Services Board is asked to approve:
1. The recommendations contained in this Executive Summary
2. The Organization Chart indicated as Option 2- Three Tier model
3. The Implementation plan
4. This report as the continuing document for change and our
organizational plan.
ORP Executive SUmma ry Page 7
M
District Commander
Inspector
I
C. LB. Duty Office
(part time
I I I
Admin/Opns Support
Staff Sergeant -2
Problem Analysis Community Policing
Coordinator
, r 1
Sergeant
(2)
1
Uniform Patrol
1
Sergeant Sergeant Sergeant
(2) (2) (2)
I
Uniform Patrol Uniform Patrol Uniform Patrol
Inter Platoon Team Concept
Larger Geographic Sectors
Village Constables Part of Team
.
Box 2700,1151 Bronte Road
Address all correspondence to the
Oakville, Ontario L6J 5C7
&
Chair of the Board
Board Office (905) 825-4818
Fax Number (905) 625-9417
Milton/Halton Hills (905) 878-5511
HALTON REGIONAL POLICE SERVICES BOARD
POLICING IN THE G.T.A.:
A POSITION PAPER OF
THE HALTON REGIONAL POLICE SERVICE
As the Golden Task Force nears the end of its examination of issues of government
structure and servicing the Greater Toronto Region, policing and governance of
policing have been identified as elements to be considered. This paper will discuss
some of the options being offered.
A variety of policing models have been proposed:
(1) A supercity G.T.A. police service containing the current Metro force and the
four 905'' Regional police services.
(2) A two tiered model consisting of local, city-based community police services
and an upper G.T.A. -wide tier of specialists.
(3) City-based, full-service police organizations. The number of cities in the
G. T.A., in this model, has not been finalized.
Ominously, and curiously, the status quo has not attracted much attention outside
the 905 regions.
Discussion on the three models listed above have all focused on economics of scale,
internal command and control, exchange of information, levels of expertise,
community policing applicability and external control of the police. In sum, it is
hypothesized that bigger is cheaper and better. In support of this position, some hard
data can be put foward relating to elimination of middle management and support
positions and economies relating, in particular, to combining specialized units and
functions (i.e. tactical, marine, identification, etc.).
Nevertheless, intuition - at least intuition - says this mega-force of almost 12,000
employees is too big. Arguing against it are the following factors:
Local input and priority setting will be more difficult to achieve through a
centralized distant (Metro Toronto?) Headquarters function.
Local ownership of the police and of the community by the police will be
difficult to achieve.
Civilian control of any sort, over such a large body, would be made more
difficult.
Managerial control of a large agency could be difficult.
Application of community policing principles, which means local policing,
would be more difficult
Intra-force communication would be impeded by size.
A tendency to increase policing resources in the core of the G.T.A. by
diverting people from the outlying regions seems inevitable,
POI.lCING THE G.T.A
Position Paper of the Halton Regional Police Service
Page 2
b
Coordination of current recordkeeping systems, computer systems,
communication systems and collective agreements would be a huge task.
There would be huge conversion costs related to
uniforms
signage on buildings, cars, stationery
policing procedures and training
forms
>
systems
computers
communication systems
The combined force size is estimated at almost 12,000 employees. With
expected growth in the G.T.A., its size in 2011 would be more than 15,000
and over 18,000 by 2036. Some organizational theorists believe that 15.000
is the ceiling number, above which diseconomics of scale will be found.
THE STATUS QUO
It is clear that some change in governmental structure is inevitable and, in fact, likely
necessary, But, given that policing is a creature of government, it can be created in
any form and need not parallel the structure of the government. The government can
dictate the shape and size of all its services. Therefore, it is not impossible to ignore
the issue of government structure and concentrate exclusively on the form of
policing.
POLICING THE G.T.A
Position Paper of the Halton Regional Police Service Page 3
Regional municipalities with their attendant police agencies came into being about
1974. Now, 21 years later, these regional police agencies have surpassed the age of
majority and are exhibiting significant maturity, These regional police services are
working well and in cooperation with one another. Many joint forces operations are
undertaken throughout the G.T.A. and emergency response in one region is
supported by members of another regional police service on many occasions.
There has been no case made for change for the 905 regions. The only case is for
help for Metro Toronto. The regions should not be victimized by problems which are
not of their making. Their citizens should not pay for the debts of others.
Halton Region enjoys good financial and social health. Its not in trouble. The
Halton RegionaI PoIice Service, while threatened with others by the impact of the
new financial reality, is also healthy.
Many factors, such as the ones set out below, argue for the continuation of the
Halton Regional Police Service.
Halton Region enjoys a low crime rate, particularly compared to Metro.
Halton Region experiences low cost-per-capita policing, marginally second to
York of the 905 regions.
The Halton Regional Police Service, as evidenced by a recent public survey,
enjoys excellent acceptance from the public.
POLICING THE G.T.A.
Position Paper of the Halton Regional Police Service Page 4
The Halton Regional Police Service is well known and respected by the citizens
of the Region.
The Halton Regional Police Service is among the leaders in the application of
community policing principles.
The Halton Regional Police Service is under the direction and control of a
Police Services Board comprised of local citizens (as opposed to citizens from
throughout the G.T.A.).
The Halton Regional Police Service is a manageable size (535 members),
permitting good intra-service communication and rapid adjustment to local
needs.
Halton is geographically compact, permitting rapid response to any area.
Halton Region, as yet not as populated as Metro or Peel, has a
characteristically different feel than its neighbors. A concomitant police
agency (H. R. P.S.) can shape itself to match.
The current Halton police agency has local identity, accountability and
consultation, which contribute to community based policing.
POLICE GOVERNANCE
The G.T.A. discussions have also touched on Special Purpose Bodies (S. P.B.)
including police Services Boards (P. S.B. ). The accountability of the Board to the
POLICING THE G.T.A.
Position Paper of thc Halton Regional Police Service Page 5
local council, because a majority of its members are appointed by the Province, is at
dispute, Municipal councillors argue that local taxes revenues, for which they are
accountable, fund policing and therefore council should control the Board. The
counter argument stresses the need for the independence of the police from the
political arm,
The current system is meant to ensure an objective body of people who will make
good choices for all citizens, recognizing policing needs and fiscal realities. There are,
however, variants which might provide a similar balance.
(1) A P.S.B. comprised of citizens elected for that purpose alone in the municipal
elections.
(2) A P.S.B. in which the majority are appointed by municipal council from the
citizens at large and not from council,
Any model which places a majority position in the hands of citizens-at-large is
preferable over majority control by councillors. In this way, police independence
from the political process is ensured.
CONCLUSIONS
1. The demand to examine and change governmental structures in the G.T.A. is
evident and justified. Policing cannot and should not escape that review,
However, Halton is best served by the maintenance of the Halton Regional
Police Service.
POLICING THE G.T.A.
Position Paper of the Halton Regional Police Service Page 6
2. A police governance body to ensure the police are appropriately carrying out
their mandate for the good of the community should exist. However, the
majority should not be elected councillors.
POLICING THE G.T.A,
Position Paper of the Halton Rcgional Police Servlce Pagc 7
THE REGIONAL MUNICIPALITY
OF HAMILTON - WENTWORTH
office Of the Chairman
Dr. Anne Golden
Chair
GTA Task Force
393 University Avenue
Suite 2001, 20th Floor
Toronto, Ontario
M5G 1E6
Dear Dr. Golden
:
Subject: GTA Task Force Report
At its meeting in late August, Hamilton-Wentworth Regional Council requested me to
prepare a position paper on the relationship between Hamilton-Wentworth Region and the
GTA. Leaving aside the ongoing discussions about the future boundaries of the GTA and
Halton/Burlington, this report outlines a proposed relationship between this Region and its
neighbors (both in the GTA and elsewhere).
While the report has yet to receive consideration by Regional Council, I am aware that
you have established a report deadline of September 30 for written submissions to your Task
Force. I am therefore providing you with an outline of my views, and in due course, I will
forward the official position adopted by Hamilton-Wentworth Regional Council.
cc: - Chairman & Members of the
Administrative Services Committee
- W. M. Fenn, C.A.O.
P.O. Box 910, Hamilton, Ontario L8N 3V9
Tel: (905) 546-4200 Fax: (905) 546-2340
DATE:
REPORT TO:
FROM:
SUBJECT:
REGI ON OF HAMI LTON-WENTWORTH
- RECOMMENDATI ON -
1995 September 29
Chairman and Members
Administrative Services Committee
Terry Cooke
Regional Chairman
Michael Fenn
Chief Administrative Officer
Hamilton-Wentworth/GTA Relationship (CAO-95-014)
RECOMMENDATION:
1.
2.
3.
4.
That the Regional Chairman write to the Premier of Ontario and to Dr. Anne Golden,
Chair of the GTA Task Force, advising that Hamilton-Wentworth is opposed to being
included in the GTA governance structure/geographic boundary; and
That the Regional Chairman write to the Minister of Transportation confirm this
Regions desire to continue to be represented on the Board of GO Transit, or any
successor special-purpose body dealing with transit and transportation issues affecting
Hamilton-Wentworth and the GTA; and
That the Regional Chairman write to the Minister of Municipal Affairs, requesting that
the Office of the Greater Toronto Area (OGTA) be directed to include the Regional
Municipality of Hamilton-Wentworth, and its constituent municipalities, as voluntary
observers in activities affecting the regional and area municipalities within the Greater
Toronto Area; and
That the Regional Chairman write to the Mayor of Mississauga, as the Chair of the
Greater Toronto Area Mayors Committee, requesting that an invitation to participate
as observers in the GTA Mayors Committee be issued to the Heads of Council of the
regional and area municipalities within the Region of Hamilton-Wentworth; and
2
5. That the Regional Chairman write to the Minister of Municipal Affairs, requesting that
the Chief Administrative Officers of the regional and area municipalities within
Hamilton-Wentworth, be appointed to the Greater Toronto Co-ordinating Committee
as observers; and,
6. That the Regional Chairman invite the Chairmen of the Regions of Niagara, Halton,
Haldimand-Norfolk and Waterloo, and the Mayors of municipalities such as
Burlington, Grimsby, Haldimand, St. Catharines, Niagara Falls and Brantford, to meet
to discuss the potential for improved co-operation on matters of economic development,
transportation, conventions, tourism and the delivery of municipal services.
BACKGROUND:
At its meeting of August 22, 1995, Regional Council adopted the following recommendation
of its Administrative Services Committee:
That the Regional Chairman and Chief Administrative Officer, in consultation with all
members of Regional Council, prepare a response to the Greater Toronto Area Task
Force with respect to Hamilton- WentWorth preferred governance relationship with the
Greater Toronto Area Task Force, and report back to the Administrative Services
Committee in 30 days.
Although it was not possible to report within thirty days (in light of your Committees decision
not to schedule a meeting for late September), this report responds to that Regional Council
direction, and it is still possible to convey Regional Councils position to the Greater Toronto
Area Task Force before its early November reporting deadline.
Analysis:
The Golden Task Force:
This Spring, the Rae Government appointed a Task Force, headed by Dr. Anne Golden, to
study the Greater Toronto Area (GTA), based on concerns related to land-use planning,
municipal governance, economic performance and real property assessment and taxation. The
3
Golden Task Force was asked to find ways to solve Metro Torontos long-standing and
worsening property assessment problem, to preserve the vitality and quality of life in the
core of the Greater Toronto Area, and to find better ways to govern and to deliver services
to the citizens in the GTAs 30 area municipalities and five regional municipalities.
After its election, the new Harris Government revised the reporting timetable for the Golden
Task Force, indicating a deadline for verbal reporting of the Task Forces final
recommendations in early November. The Task Force recently established September 30 as
the target date for written submissions, and submissions have been flowing in from a number
of sources, including most of the municipalities within the GTA. The four GTA Regional
Chairs outside of Metro (Durham, York, Peel and Halton) have presented a comprehensive
brief. The Greater Toronto Co-ordinating Committee, on behalf of the GTA Mayors and
Regional Chairs, has also produced an extensive analysis of the fiscal and economic
competitiveness position of the GTA and its constituent municipalities.
Hamilton-Wentworth and the GTA
Since the external boundaries of the GTA are part of the discussion initiated by the Golden
Task Force, governmental, business and media leaders in the Hamilton-Wentworth have posed
the question of possible Hamilton-Wentworth membership in the GTA. In response, Regional
Council directed the Regional Chairman and CAO to outline a possible response to the Golden
Task Force and to the Province, dealing with the relationship between this region and the
Greater Toronto Area. This report generally responds to that Regional Council direction.
Solving Metro Torontos Problems
It is quite clear that the genesis of the GTA Task Force was a concern over two primary
issues: a perception of uncompetitive property taxation rates in Metro Toronto, and a desire
to avoid the urban decay that has been seen elsewhere in North America. As a result, the
proposed solutions to the problems tend to focus on finance and on municipal structure,
including a reallocation of municipal responsibilities and changes to municipal boundaries.
The submissions to the Task Force generally propose reduced numbers of municipal
governments and assessment reform, including some form of sharing of assessment across the
GTA. It seems evident that the results of many of these recommendations would be a shift
of financial burden to non-Metro GTA municipalities, and a reduction in the number of
municipalities and elected municipal representatives.
4
Hamilton-Wentworths Role in GTA reforms
Given our close economic and transportation relationship with the GTA, should this region
seek a formal relationship with the GTA, perhaps in the hope of benefiting from GTA
reforms of municipal services and taxation?
Hamilton-Wentworth shares the GTAs need for assessment reform. But it is far from clear
that our task would be made easier by linking our efforts with those aimed at solving Metro
Torontos huge assessment problems. It is also not clear how the effort to downsize the
number and size of municipal councils in the GTA would assist this region in its ongoing
reform efforts through the Constituent Assembly.
The case for economic co-operation with the GTA
While close involvement with municipal reform and assessment reform within the GTA may
have little to recommend it to this region, there are clear opportunities for a closer relationship
with our neighbors in the GTA. We have common objectives, particularly in areas such as
transportation improvements (403, GO Transit, Hamilton airport, Highway 6). In the
economic development field, our environmental and advanced manufacturing businesses
straddle the Hamilton-Wentworth/Halton boundary, and we should co-operate more effectively
in economic development activities that support these dynamic sectors. There are similar
opportunities in the area of tourism.
Greater Bay Area Economic Region
Having seen a major restructuring of our regional economy, which is ongoing, Hamilton-
Wentworth is in a position to undergo an economic renaissance. To a great extent, the GTA
is still adjusting to the impact of economic restructuring, as is evident from the continuing
pattern of business relocations within the GTA and the commercial out-migration from Metro.
This region should be charting its own course, building on the assets of the economic region
centred on the Hamilton-Wentworth area, and extending from Niagara to Burlington and
Brantford. As with London and Waterloo regions, the impact of Toronto is strongly felt in
this region, but simple commuter patterns and trading relationships should not be confused
with a need to have this region become an adjunct or the sixth regional municipality in the
GTA.
This course is not one of insularity. The various economic regions in South-Central Ontario
could and should co-operate on air transportation and related economic activity, on
transportation networks (403/407/Highway 6; air; commuter rail), and on other items of
mutual benefit. There are important opportunities to co-operate with our neighbors in
Burlington, in Niagara Region and elsewhere. But too close an association with the GTA has
evident disadvantages for our residents and businesses. As part of the GTA, we inevitably
5
lose much of the potential to set our own course. We also become vulnerable to contributing
to the solution of the fiscal and infrastructure problems facing Metro and the rest of the GTA.
The pattern through which GTA residents pay nearly 50% more for automobile registrations
each year could be
Specific Responses
applied elsewhere.
The Office of the Greater Toronto Area (OGTA) was originally headed by a Deputy Minister
reporting to the Minister Responsible for the Greater Toronto Area (former Environment
& Energy Minister Ruth Grier). More recently, the OGTA has been downgraded to a division
of the Municipal Affairs Ministry, headed by an Assistant Deputy Minister. In general, it falls
to the OGTA to define issues and organize initiatives to meet the needs and requests of the
GTA municipalities and Provincial ministries.
The Greater Toronto Area Mayors Committee, an informal group organized by Mayor
McCallion of Mississauga and Mayor Lastman of North York, has gradually assumed some
prominence in the GTA, and has latterly included periodic observer status for the Chairmen
of the five regional municipalities, including Metro Chairman Tonks. The Mayors
Committee is not related to the Office of the Greater Toronto Area in any formal sense, but
it does have considerable impact on its activities. While the GTA Mayors Committee is a
group with considerable media profile, its record on the development of a consistent,
consensus-based approach is uneven.
Despite the limitations of the GTA Mayors Committee, it may prove useful for Hamilton-
Wentworth Heads of Council to attend periodically, if only to be aware of the activities of our
neighbors to the east, and the substantial Toronto media attention that this forum affords
them. Some of its subcommittees have also done interesting work, although several of the
major initiatives have failed to generate consensus.
The Greater Toronto Co-ordinating Committee (GTCC) is appointed by the Minister of
Municipal Affairs, consisting of the chief administrative officers or other chief officers of the
municipalities within the GTA. Administrative support has, in the past, been provided
through a combination of staff and funding from the Office of the Greater Toronto Area, and
through resources donated by the participating municipalities. There is an inner group or
Core Committee, drawn from the full GTCC.
The GTCC Core Committee originally was chaired by a senior Provincial civil servant
(although this has subsequently been altered to co-chair status with the CAO of
Scarborough), and it was made up of the chief officers of the municipalities on either side of
the borders of Metro Toronto, together with the Regional CAOs of all five regions. Later
each region was asked to add further area municipality CAOs to the Core Committee, so that
it now comprises the CAOs from Metro, all the Regions and all of the urban area
6
municipalities.
The most interesting work of the GTCC (which generally meets quarterly as the full
committee and more frequently as a Core Committee) has been in studies of the fiscal,
economic, quality of life and economic development issues facing the GTA. Earlier studies
also attempted to develop a strategic plan for development models for the GTA, which were
then presented to a Committee of Heads of Council convened by the Minister of the day, and
then referred to the individual municipal councils for consideration and formal response.
Conclusions:
Based on the foregoing analysis, it is recommended that Regional Council lend its support to
the concept of municipalities within this region co-operating more closely with the GTA, short
of becoming part of the GTA. We should do this, however, without losing our right to
participate as full members of the body that governs inter-regional public transit (GO Transit)
in the Hamilton-Wentworth/GTA area. At the same time, we should explore the merits of
improving the level of co-operation among the municipalities west of the GTA, and including
municipalities within the GTA with whom we share the Bay Area economy. In this way, the
municipalities within this region can have the best of both worlds: close co-operation with the
GTA on matters of economic development and interregional services, but also devoting
attention to building the supporting infrastructure for more intermunicipal co-operation in the
economic region centred on Hamilton-Wentworth, which extends from Niagara to Burlington
and Brantford.
Project Report
ECONOMIC IMPACT OF
HARBOURFRONT CENTRE
FINAL REPORT
APRIL 12, 1993
Contents
Executive Summary . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .1
I
II
Ill
A. Introduction 1
B. Profile of Harbourfront Centre 2
C. Economic impact of Harbourfront Centre
2
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
A. Background 4
B. Study objective 4
C. Definition of economic impact 5
D. Approach 6
Profile Of Harbourfront Centre ..........................................................7
A.
B.
c.
D.
E.
F.
G.
Mission 7
Activities on the Harbourfront Centre site 7
Operating expenditures 8
Capital expenditures 11
Staffing 11
Events held 12
Attendance 12
Contents (Centd)
C. Impacts of combined operating and capital expenditures
on site 17
IV Other Aspects Of Harbourfront Centres Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
A. Harbourfront Centres contribution to Tourism in Toronto 18
B. Economic importance of Harbourfront Centre to the
cultural community 20
APPENDICES
A Distribution Of Visitors By Trip Purpose
B Visitor Volume And Expenditures To Toronto
22
23
Executive Summary
A. Introduction
1. Harbourfront Centre
Harbourfront Centre, a non-profit charitable organization, was formed to continue
the public programming activities of the former Harbourfront Corporation. It has a
mandate to organize and present public activities and events, and to operate a 10
acre site along Torontos lakefront on the South side of Queens Quay West,
extending from Queens Quay Terminal on the East to the Nautical Centre on Maple
Leaf Quay to the West.
Harbourfront Centre is one of Canadas largest cultural centres, presenting hundreds
of cultural, educational and recreational events for the public annually. In 1991/92,
Harbourfront Centre attracted about 3 million visitors.
2. Study objective
The objective of this study is to assess the economic impact of the activities related
to Harbourfront Centre. Specifically, we focus on quantifying the economic
impacts of the programming and other services provided to visitors to the
Harbourfront Centre site.
Economic impacts are analyzed separately for activities that are ongoing in nature
and capital projects underway in the base year. Fiscal year 1991/92 has been
chosen as the base year for analysis, due to data availability.
In the conduct of this study, relevant revenue and expenditure data were collected
from Harbourfront Centre and other operators on site. The TEAM model developed
by the Canadian Tourism Research Institute was used to translate the data into
estimates of economic impact.
3. Definition of economic impact
Economic impact is a term generally used to characterize the employment and
value-added accruing to the residents of the geographic regions studied.
Employment impacts are measured in person-years. Value-added is one of the most
commonly used indicators of economic activity, and measures the economic value
created through the production of goods and services. Value added impacts are
composed of labour income, business income and government income.
1
B. Profile of Harbourfront Centre
The funded activities carried out by Harbourfront Centre range from providing
maintenance and upgrading for its buildings and land area on site, to promoting and
organizing cultural events.
In addition to programming activities produced directly by Harbourfront Centre, it also
provides facilities and expertise for a number of shows and events produced by outside
participating organizations, working closely with Harbourfront Centre.
The operations and programming of Harbourfront Centre itself, and events produced by
outside participating groups, draw a number of visitors to the site, and effectively support
a number of independent operators on-site. These include:
Marine operators.
> Independent food and retail operators.
> Parking operators.
> Pier 4 Restaurants.
C. Economic impact of Harbourfront Centre
All results are for fiscal year 1991/92.
1. Expenditures
Total on-site expenditures were as follows:
Operating expenditures by Harbourfront Centre of $16.7 million.
>
Operating expenditures by independent operators on-site of $44.8
million.
>
Total operating expenditure by all operators on-site of $61.5 million.
>
On-site capital expenditure by Harbourfront Centre of $6.2 million.
2. Employment impacts
Total on-site expenditures had the following employment impacts:
> 1,240 person-years of employment in Ontario.
Of this, 1,070 person-years were in the Toronto Census Metropolitan
Area.
Of the employment generated in Toronto:
>
260 person-years were directly employed in the operations of
Harbourfront Centre.
>
510 person-yearn were directly employed by other independent operators
on-site.
> Most of the 70 person-years associated with capital expenditures were
on-site construction work.
3. Other impacts
The total on-site operating and capital expenditure of $67.7 million also generated
value-added impacts of $58.9 million in Ontario and $46.6 million in Toronto. The
distribution of value-added in Ontario is as follows:
>
$39.2 million of labour income.
>
$14.7 million of business income.
>
$5.0 million of government income.
Harbourfront Centre is one of the most popular attractions in Toronto and, together
with other attractions, contributes significantly to tourism activities in Toronto.
Introduction
A. Background
Harbourfront Centre, a non-profit charitable organization, was formed on January 1,
1991, to continue the public programming activities of the former Harbourfront
Corporation. It has a mandate to organize and present public activities and events, and to
operate a 10 acre site along Torontos lakefront, on the South side of Queens Quay West
extending from Queens Quay Terminal on the East to the Nautical Centre on Maple Leaf
Quay to the West (The Harbourfront Centre site).
Harbourfront Centre is one of Canadas largest cultural centres, presenting hundreds of
cultural, educational and recreational events for the public annually.
B. Study objective
The objective of this study is to assess the economic impact of the activities related
directly to Harbourfront Centre. Specifically, we focus on quantifying the economic
impacts of the programming and other services provided to visitors to the Harbourfront
Centre site. At the time of this study, the most reliable data available are for the fiscal
year 1991/92. We have therefore used 1991/92 as the base year for analysis.
Economic impacts are analyzed separately for:
>
Capital projects underway in the base year.
In addition to the activities of Harbourfront Centre itself, there are a number of other
operators at the Harbourfront Centre site providing services to visitors to the site (e.g.,
marine operators) and they are integrally linked to the operations of Harbourfront Centre.
We have included these operators in our study. We have excluded residential and office
activities on the site. A more detailed discussion on the activities included is provided in
the next chapter.
4
In addition to the more quantifiable impacts discussed above, the study also explores two
other aspects of Harbourfront Centres activities:
>
Harbourfront Centres role in generating tourism activity in Toronto, and the
economic dimensions of such activity.
>
The economic significance to the cultural community of support by
Harbourfront Centre.
C. Definition of economic impact
Economic impact is a term generally used to characterize the employment and value-
-added accruing to the residents of the geographic regions studied. Employment impacts
are measured in person-years. Value-added is one of the most commonly used indicators
of economic activity, and measures the economic value created through the production of
goods and services. (The total value-added produced in the country is known as the
Gross Domestic Product.) Value-added impacts are composed of the following
categories:
>
Labour income, which includes wages and salaries and benefits
(supplementary labour income) of workers, calculated before taxes.
>
Government income, which consists of indirect taxes as well as revenues from
goods and services purchased from the government. Indirect taxes include
taxes such as sales taxes and property taxes, but exclude personal income
taxes and corporate income taxes, which are included in the above categories.
The economic impacts presented in this study include both the direct and indirect
impacts. Direct impacts are the effects associated with the fret round of expenditures
related to the activities under study. Both Harbourfront Centre and the independent
operators on the site generate direct impacts. Using Harbourfront Centres operations as
an example, the first round expenditures include:
> Taxes paid to governments in conjunction with the above expenditures.
Indirect impacts represent the effect of the second and subsequent rounds of expenditure
by suppliers to Harbourfront Centre. Suppliers to Harbourfront Centre generate demand
for labour and goods and services produced by other industries, and earn business
income. This pattern of expenditure flow continues in the economy. Goods and services
purchased in the first round ultimately become labour income, business income and
indirect taxes to government, or leak out of the economy as imports.
In accordance with prevailing practice in economic impact studies, we have not included
induced impacts in our study. Induced impacts are impacts associated with the re-
sending of the direct and indirect labour income generated (e.g., impacts associated with
goods and services purchased by Harbourfront Centres employees using their wages and
salaries earned).
D. Approach
We have collected the relevant information from Harbourfront Centre and prepared a
profile of its operations, including operating budget, staffing, and the nature and number
of events and cultural activities supported.
For other operators on site, we have collected the available revenue and expenditure data
from Harbourfront Centre and Queens Quay West Land Corporation (which holds the
land lease on the Harbourfront site). Where detailed actual data were not available, we
have made our own estimates based on our experience with similar facilities. We have
also reviewed the results from earlier visitor surveys conducted for Harbourfront Centre
on the spending pattern of visitors.
Using the expenditure data for Harbourfront Centre and other operators as the basis, we
applied standard economic impact methodologies to develop estimates of the direct and
indirect impacts. We have used the TEAM model developed by the Canadian Tourism
Research Institute for the Metropolitan Toronto Convention and Visitors Association
(MTCVA). Impacts are determined separately at the level of the Province of Ontario
and of the Toronto Census Metropolitan Area (Toronto CMA). The Toronto CMA
includes Metro Toronto and much of the Regional Municipalities of Durham, Halton,
Peel and York. Although the model generates results for the Toronto CMA, it is expected
that most of the impacts occur in Metro Toronto.
In assessing the economic impacts associated with tourism generated by Harbourfront
Centre, we have relied on a separate tourism strategy study that we conducted for
Metropolitan Toronto.
Profile Of Harbourfront Centre
A. Mission
Harbourfront Centre is a non-profit Canadian charitable organization that supports a wide
range of cultural, educational, and recreational activities. Its mandate is as follows:
Harbourfront Centre, on Torontos waterfront, is an innovative non-profit cultural
organization which creates, for a diverse public, events and activities of excellence that
enliven, educate and entertain. Working in partnership with various communities,
Harbourfront Centre nurtures and supports educational and recreational activity, as well
as contemporary artistic creation, through showcasing Canadian and international
talent.
B. Activities on the Harbourfront Centre site
The programming activities presented by Harbourfront Centre occur on the Harbourfront
Centre site. Harbourfront Centre has overall responsibility for the operations of the
cultural facilities and the programming within the site. Activities that Harbourfront
Centre carries out in accordance with its mandate range from providing maintenance and
upgrading for its buildings and land area on site to promoting and organizing cultural
events.
In addition to programming activities produced directly by Harbourfront Centre, it also
provides facilities and expertise for a number of shows and events produced by outside
participating organizations, working closely with Harbourfront Centre. The expenditures
related to the production of these shows and events are included in this study.
Besides the programming provided on site, there are a number of independent
commercial operators on site. These operators are:
>
Marine operators.
>
Independent food and retail operators.
>
Parking operators (some are adjacent to the site).
> Queens Quay Terminal (retail operations).
>
Pier 4 Restaurants.
>
Metro Police Marine Headquarters.
We have included all of the above operators in our analysis, with the exception of the
Admiral Hotel and the Metro Police Marine Headquarters. We consider the Admiral
Hotel to be serving the Toronto market as a whole, but not specifically visitors to the
Harbourfront Centre site. We have therefore excluded it from our analysis. We have also
excluded the retail activities in that building. We have excluded the Metro Police Marine
Headquarters as we do not consider the facility to be providing services to visitors to the
site directly.
In the category parking operators, in addition to parking lots on the south side of
Queens Quay West, we have included certain parking facilities on the north side of
Queens Quay West. Although the facilities are technically outside the site, they clearly
provide services primarily to visitors to the site.
We have included all retail activities in the Queens Quay Terminal in our analysis. In
doing so, we may have overstated the retail activities related to visitors by including the
retail activities related to office workers and residents of the building. We have no
practical way to isolate those activities.
In addition to the operators on site, there area number of operators in related areas which
also serve visitors to the site, such as the retailers in the HarbourPoint buildings. We
have not included these operators in our study.
C. Operating expenditures
1. Harbourfront Centres operations
Total operating expenditures by Harbourfront Centre for the fiscal year 1991/92
were $16.7 million.
A detailed breakdown of these 1991/92 expenditures is shown in Exhibit H-1. As
shown in the Exhibit, about $8.0 million was expended on wages and benefits.
Harbourfront Centre also provides considerable support to artists and the
advertising industry.
8
Exhibit 11-1
Harbourfront Centre -1991/92 operating expenditures
$ millions
Salaries and benefits
Artists fees
Travel and accommodations
Advertising services
Financial services
Business and other services
Rent and utilities
Supplies and repairs
Costs of goods
Other
Business income
Total
8.0
1.1
0.8
1.7
1.2
1.4
1.0
1.0
0.1
0.4
2. Other operations
We have collected revenue and expenditure data from the independent operators
described previously. Where data were not available, we have made our own
estimates based on our experience with similar operations. The result of our
analysis is presented in Exhibit II-2. In order to protect the confidentiality of
individual operators, we have presented aggregated results only.
Exhibit II-2
Operating expenditures of independent operations at Harbourfront
Centre-1991/92
$ millions
Total estimated expenditures of the following operators:
44.8
Events produced by outside participating groups
Marine operators
Independent food and retail operators
Parking operators
Queens Quay Terminal
Pier 4 Restaurants
Estimated expenditure breakdown:
Salaries and benefits
Artists fees
Travel and accommodations
Advertising services
Financial services
Business and other services
Rent and utilities
Supplies and repairs
Costs of goods
Other
Business income
Total
13.3
0.0
0.1
1.4
0.4
3.3
1.8
1.0
18.2
1.3
Combining the expenditures by Harbourfront Centre and those by independent
operators, the total expenditures related to the ongoing activities at the Harbourfront
Centre site are presented in Exhibit II-3.
10
Exhibit II-3
Combined operating expenditures by Harbourfront
Centre and lndependent Operators1991/92
$ millions
Salaries and benefits
Artists fees
Travel and accommodations
Advertising services
Financial services
Business and other services
Rent and utilities
Supplies and repairs
Cost s of goods
Other
Business income
Total
21.3
1.1
0.9
3.1
1.6
4.7
2.8
2.0
18.3
1.7
4 . 0
61. 5
D. Capital expenditures
For the fiscal year 1991/92, Harbourfront Centre spent a total of about $6 million on
capital expenditures, as shown in Exhibit H-4.
Exhibit II-4
Capital Expenditures by Harbourfront Centre-1991/92
$ million
Total capital expenditures for renovation of
duMaurier Theatre Centre and construction of
Molson Place 6.2
E. Staffing
Harbourfront Centre employs 150 full-time staff and up to 350 part-time and seasonal
workers during the summer. The part-time staff corresponds to 70 person-years of
employment.
11
In addition, Harbourfront Centres spending on artists fees provided the equivalent of 40
person-years of employment to performers.
F. Events held
Harbourfront Centre provides a wide variety of cultural, educational and recreational
events to the public. The events range from special one-day festivals to public galleries
open to the public throughout the year. In the year 1991/92, over 5,000 events were
presented. A breakdown of the events by category is provided in Exhibit II-5.
Exhibit II-5
Harbourfront Centre Events1991/92
Category Number of Events
168
143
27
164
72
66
155
294
24
47
32
1,589
1,866
1,115
5,762
G. Attendance
Based on surveys conducted by management, Harbourfront Centre attracted about 3.0
million visitors in 1991/92.
12
I l l
Results
Our estimates of the economic impacts of Harbourfront Centre are presented in this
chapter.
A. Impacts of ongoing activities at Harbourfront Centre
The ongoing activities on the Harbourfront Centre site in 1991/92 are estimated to have
generated 1,160 person-years of employment in Ontario, of which 1,000 were in the
Toronto CMA. Of the total employment generated, 260 person-years (including
artists/performers) were directly employed by Harbourfront Centre, and 510 person-years
were directly employed on site by independent operators, for a total on-site employment
of 770 person-years. A detailed breakdown of the employment impacts is provided in
Exhibit HI-1.
Total expenditures of $61.5 million by Harbourfront Centre and independent operators
generated value-added impacts of $54.1 million in Ontario and $42.7 million in the
Toronto CMA. Value-added measures the economic value generated through production
of goods and services. The distribution of value-added in Ontario is as follows:
is provided in Exhibit III-2.
B. Impacts of capital expenditures by Harbourfront Centre
In the year 1991/92, Harbourfront Centre made capital expenditures of $6.2 million. This
generated 80 person-years of employment and $4.8 million of value-added in Ontario. A
breakdown of these impacts is provided in Exhibit III-3.
13
Exhibit Ill-1
Employment generated by ongoing operations of Harbourfront Centre-
1991/92
1 -
1992
6
Because the situation in Metro Toronto is so serious, we are pleased by recent indications that the
Government of Ontario is moving to address the issues of the GTA. Even though there has been
no formal announcement of a GTA Commission or Task Force, we are encouraged by media
reports that the government is looking to find solutions to those aspects of economic and social
life in the GTA that militate against a level playing field and an efficient and competitive business
environment. In our view, property tax reform should be fundamental to such an initiative.
From our perspective, the root of the problem is an entrenched system of property assessment
which is skewed in favour of homeowners. The established inequities contribute to a willingness
to continue to exact additional taxes from non-residential property owners. At the same time,
they also make the search for solutions very difficult. The reluctance to consider change is rooted
in opposition to increasing the share of property tax liability borne by residential taxpayers. As
any elected official will tell you, the political reality is that commercial and industrial tax payers
dont vote. They do, however, create jobs.
Two additional contributors to out-of-control municipal taxes are municipal education and social
assistance costs. Again, while Metro Toronto reflects the worst case, these aspects of the
problem are replicated province-wide. For purposes of illustration and brevity, detail is provided
here for Metro Toronto.
In Metro, education accounts for more than half of the property tax mill rate. In addition, Ontario
municipalities pay 15-20 per cent of social assistance costs, which have increased astronomically
in the 1990s, and to a disproportionate extent in the Toronto region. In our view, any long-term
resolution of the property tax problem will have to include educational finance reform and moving
responsibility for social assistance to the province.
(a) Provincial Assessment Policy Chaos
As set out in provincial statute, there is a fixed relationship between residential and business
property tax [mill] rates. Business mill rates are fixed at a level 17.6% above residential mill rates.
As tax revenues are the product of the assessment base and the applicable mill rate, tax
assessment is critical.
7
As a share of total real estate values, Metro Toronto business properties have increased much
more slowly than residential properties. However, this has not been reflected in relative shares of
taxes paid, because the last overall reassessment was done in 1953. Residential properties in
Toronto, for example, are assessed at less than 2% of their market value, whereas commercial
businesses are assessed at almost 6% three times higher. The result of this property tax
assessment chaos is clear: commercial and industrial properties comprise less than one-third of
the total assessment base but pay 57% of property tax. Another way of describing how the
assessment system is skewed in favour of homeowners: single and duplex residential units
represent 62/0 of provincially-assessed real estate values in Metro Toronto, but pay only 29/0 of
property tax.
The table below shows in dramatic form the relationship between residential and commercial mill
rates, the level of assessment relative to market value, and business occupancy tax.
Property Market Value Assessment as
Proportion of
Market Value
Residential $250,000 2%
Commercial $250, 000 6%
Bus. Tax @ 50%
Taxable 1994 Mill 1994 Taxes
Assessment Rate
$5,000. : 454.22 $2,266.10
$15,000 533.2 $7,998.00
$7,500 533.2 $3,999.00
$11 ,997.09.
Because Metro Torontos property tax assessment base is so skewed in favour of residential tax
payers and has become so over a long period, there are several, reinforcing pressures on business
assessments. This is particularly the case in tough economic times when elected officials are
reluctant to introduce any form of property tax reform which would adversely affect residential
tax payers.
8
(b)
Property Tax Assessment Methodology
Shopping centres are the only form of real estate in which the owners ability to generate revenue
is directly related to a tenants business operations. In essence, owners and tenants form an
economic partnership unlike that experienced in other types of real estate. Typically, shopping
centre tenants pay rent in two ways. They pay a base rent calculated with regard to anticipated
sales levels and an additional amount, calculated as a percentage of sales above this base level. It
is normal for property tax assessors to increase property tax liability on successful tenants who
exceed base sales expectations. These successful tenants contribute a participation rent in
addition to the base rent contracted in the lease. It is this total revenue stream which the
assessors use as a basis for their valuation of the shopping centre.
This unique characteristic means that a profound inequity is built into the taxation of shopping
centres. Consider a downtown office building say, a bank tower containing the same leasable
area as a downtown shopping centre. The bank tower currently is assessed based on the base
rental income obtained from the various tenants. Imagine what would happen to the property tax
assessment of the bank tower if assessors took into account the business performance of each of
the lessees i.e., the banks corporate offices, lawyers, accountants, investment companies, real
estate firms, etc. And yet this is exactly what happens in the valuation of shopping centres for
property tax.
Successful retailers therefore provide an income stream beyond that which is necessary to support
the real estate investment. This excess value is in essence a business, as opposed to a real estate,
value and should not be assessed for property tax purposes.
Unanticipated success therefore comes at a government-imposed cost. However, if a tenant fails
to achieve the sales built into the base rent calculation, there is no parallel interest on the part of
assessors to reduce the assessment to reflect an appropriate attainable rent based on sales
performance.
Because shopping centre property tax assessments look to sales activity, shopping centres are
disadvantaged relative to the so-called big box retail superstores that increasingly are located in
suburban locations and operate warehouse-style. Located in comparable locations in the same
Y
community, competing for the same shopping dollar and relying on identical consumer appeals
(large volume and selection, ease of access, easy parking, etc.), the big box retailer pays
property tax based solely on real estate value, whereas its shopping centre neighbour pays a
premium. This reflects a basic lack of fairness.
(c) Skyrocketing Education Costs
In Metro Toronto, public education costs are about 55% of the property tax bill. The business
share of the total is higher in Metro Toronto than in neighboring municipalities for two principal
reasons. The first is the skewed relationship between residential and non-residential property tax
payers already mentioned. Second, per-pupil education spending is higher in Metro Toronto than
in neighbouring municipalities. According to a recent study by The Board of Trade, this year,
Metros per-pupil spending is about $8,130. This is between 10% and 27% higher than for the
other four GTA regional municipalities (Killing the Golden Goose: How High Property Trees
are Suppressing Metros Economic Recovery -- and What Needs to be Done About It, October,
1994, page 8).
School board staffing across Metro Toronto is one disturbing aspect of education costs. Recent
figures suggest that this dimension of the property tax problem is at its worst in the city of
Toronto. There are almost 29,000 employees of Metro Torontos public school boards, both
teachers and non-teachers. 32% work for the City of Toronto. Across Metro Toronto, non-
teaching staff add up to 61% of the number of teachers.
But in the city of Toronto, of the 9,300 men and women who work for the public school board,
there are 4800 teachers and 4500 non-teaching staff (janitors, secretaries, teaching assistants,
school superintendents, directors, curriculum consultants and coordinators, accounting, personnel
and computer services departments). I n ot h e r words, for every 100 t ea ch er s working for the
Toronto public school board, there are 93 other, non-teaching staff (Toronto Star, Oct. 27,
1994).
Our members have expressed considerable frustration with a related dimension of education costs
- that is, the large number of school boards and the overhead and personnel costs they represent.
We note the public commitment of both the Premier and the Minister of Education and Training
10
to reducing the number of school boards, but are disappointed in the glacial pace of change.
Premier Ralph Kleins government reduced the number of school boards from 141 to 60 in 19
Education spending is 40% provincial. Education finance reform is at the heart of two major
provincially-mandated investigations the Fair Tax Commission and the Royal Commission on
Learning. Both included proposals for reform of the property tax and educational finance sys
principally, removing school board funding from local taxes.
(d) Social Assistance Costs
Two factors are significant here. The first is the loss of jobs associated with the recession. T
second is the explosion in social assistance costs. Despite a provincial cushion for municipalities
with high unemployment rates, the impact on municipal costs and taxes has been enormous.
(e) Municipal Services
Shopping centres in Ontario pay municipal property taxes but do not receive a number of
significant and expensive municipal services. One of our member companies pays roughly
$150,000 of its property tax bill for garbage removal, but then has to arrange and pay for private
service. They find it particularly galling that its privately-provided service costs $16,000 less tha
the service the Company pays for and does not receive municipally. Street-front retailers have
municipal garbage collection and municipally-provided parking and police protection. Shopping
centres do not receive municipal services including police, traffic control, and snow removal.
DIRECTIONS FOR RELIEF
The provincial government is central to any initiative to reduce the burden of property taxes on
our industry. Our experience and that of many other business sectors indicates that to meet these
objectives will involve three areas of provincial action:
B
education finance reform;
B reform of provincial property tax assessment policy; and
B transferring local responsibility for social assistance finding to the province.
11
In 1990-93, the provincial government and the municipalities attempted, through a so-called
disentanglement exercise, to reallocate responsibilities and revenues. In our view, the failure of
disentanglement is attributable to two principal factors. The first is that reform was almost totally
a zero-sum bargaining exercise between the participants; the second is that the provinces fiscal
situation worsened steadily, eventually foreclosing its policy and fiscal flexibility.
It is important to understand that property tax reform doesnt have to be a zero-sum exercise.
Removing at least some of the burden of education and social assistance costs from property taxes
would allow a redistribution of shares at the same time as tax payments are reduced. This doesnt
mean that the current tax bill would simply disappear; at the same time, it recognizes that property
tax reform is part of a huger process of re-balancing governments responsibilities and tax powers
to increase efficiency and reduce waste and duplication.
We believe that systemic reform will not occur before the next provincial election. We also
believe that a provincial government willing to reform these structures must move aggressively
early in its mandate. In doing so, there are two necessary objectives: property tax relief, and
predictability and control.
We believe that these problems should be situated in the context of re-drawing the pattern of
fiscal responsibilities and that the 1995 Ontario Budget should address these issues and indicate
short-term relief measures the government of Ontario is taking pending a systemic solution. The
Budget is more than symbolic in this case: it is the central statement of the governments
intentions in dealing with what must be seen as a core set of economic issues.
There are a number of ways in which the province could act to provide property tax relief One
approach, suggested here, leads to a conclusion that de-linking education and social assistance
finding from property taxation is the answer. It is clear that any long-term solution will have to
deal with two generations of inequities reflected in provincial property tax assessment policy.
Thus, it would include more frequent assessments to reduce volatility in mill rates resulting from
ups and downs in the overall economy, a more equitable relationship between residential and
commercial tax liability and equality among all forms of commercial tax liability, as well as
automatic provision for phasing in large changes. These are all intriguing possibilities.
12
Overall, we believe that high levels of local taxation reflect debt and deficit problems provincially
and that these, in turn, reflect problems in the federal-provincial division of responsibilities and tax
powers and revenues. Thus, one can say confidently that the definitive solution will reflect
comprehensively re-drawn public sector finances.
The final details of how we will get from point A to point B are not yet clear. Property tax
relief is a key step in the right direction. Our industry is anxious to make our experience and
expertise available to the province and to participate in efforts to address and resolve the issues
we have outlined here. Part of working through these problems is to develop awareness that goes
beyond individual homeowners and companies property tax bills and to build consensus around a
solution that advances the interests of all Ontarians. ICSC is working to help create that solution.
-30-
F or fu r t h er information:
Mr. Gordon S. Peck
Chairman, Canadian Committee
International Council of Shopping Centers
(416) 863-1215
November 14, 1995
Ms. Anne Golden
Chairperson for the Greater Toronto Area Task Force
Dear Ms. Golden:
Your task forces work is nearing its end. In the newspapers, it was reported that the 4 central
themes of your task force are tax, government, accountability, coordination. I believe the
common denominator is a highly segmented government structure (city and regional). My
brief suggestions follow.
Let us try to keep in mind that the goal is not to create a government empire in the G.T.A., but
instead to create an efficient. compac
service and support the community it represents.
The idea of a single Greater Toronto Area regional government with considerable relevant
powers would resolve some of the problems experienced today which exist in part due to a lack
of coordination and vision between the existing regional governments. Each region seems to
have its own agenda, with a lack of concern for their neighbors. Each region seems to be intent
of draining the economic value of the whole G.T.A. in their favour by attracting as much
industrial, commercial and residential dollars as possible. Pooling of resources, and merging
overlapping and often contradictory efforts will eliminate problems too numerous to mention.
More than regional consolidation, the issue of too many cities in the G.T.A. should considered
quite seriously. It is my belief that Metro Toronto has too many municipalities. Why do 2.3
mi l l i o n p e o p l e n e e d 6municipal governments? The two that stick out like a sore thumbs are
East York and York each governing populations less than 250,000. Get rid of them altogether,
and merge them into neighboring municipalities. I believe one reason York did not get the
Eglinton subway line is because they do not have a loud enough political voice. Compare this to
North Yorks Mayor Lastman who has nearly 600,000 strong voices to back him up. Even
outside Metro Toronto there are too many cities, again each with their own agenda that they
would bring to the proposed G.T,A regional government. Brampton, Bramalea, Malton....and so
forth. Too many govenments, Merge them to reduce costs and make coordination amoung
them easier. The day for numerous municipalities has come and passed when the farmland in the
area was developed many years ago.
In Metropolitan Toronto, I think the better idea is to create 4 compact borough governments
(Scarborough, Etobicoke, North York and Toronto) with limited powers and administrative
NOV 15 95 09 : 02
duties, and create a new City of Toronto to cover the entire area of Metro Toronto as it exists
today with only one mayor and the final word and control over the development and
administration of the area. Too much time is spent arguing who should get what and pay for
what in the Metro region today. Each Metro councilor has their own agenda of representing their
own little part of the region. If an idea is not favourable to their little city, they vote against or
slow down the process of implementing it. In creating only 4 larger boroughs, less political
competition and less quarreling will be the result. There would be an elected representation by
population in the new City of Toronto government. This area is the hub of the entire G.T.A. and
things need to change within this region more than simply getting rid of the Region of
Metropolitan Toronto and creating a super G.T.A. regional government to replace it and the other
surrounding regional governments. Each city in the existing Metro Toronto region must
understand that creating city centres of their own (as North York, Scarborough and Etobicoke
seem hell bent on doing) is competing with Torontos urban development plan.
However competing and often contradicting plans and agendas are not a problem which exists
solely between the cities in Metropolitan Toronto. Mississauga definitely has drained a lot of
commercial and industrial business away from Metro Toronto. Now Vaughan and other cities
are starting down the same path. Creating a G.T.A. government with a plan a direction for the
whole area which respects new city of Toronto as the central core of social and economic activity
will focus politicians attention where it belongs. I believe it belongs on the City of Toronto ( or
borough of Toronto as I outlined above in my proposition for a new City of Toronto). I read an
article in the Mississauga News several months ago which explained the idea that the concept of
a downtown which is generally refined to as downtown Toronto and how this concept is
slowly, and rightfully so according to the author of the article, diminishing. Is this the plans
politicians have for Toronto? If it is not, this is not the way it appears. All surrounding cities
and regions should come in line with a common vision for the G.T.A. and specifically Toronto.
I could discuss many issues which you are faced with but I would like to highlight one. The area
is spreading too fast. Do we want Toronto to resemble the face of New York (at one extreme) or
Los Angeles (at the other extreme)? The reason I focus on this issue is as follows. As the area
spreads, more cities come into the picture. When 1 first moved here 16 years ago, it used to be
Metropolitan Toronto and Mississauga which were the major players in the area. Now others are
coming into line. It is not enough to eliminate city and regional governments and create new
ones which cover larger areas. New cities will appear at some point down the line. Ten, twenty
five even fifty years in the future, the next generation will be faced with the same issues. We
must slow dowm the urban Spr a w l b y c r e a t i n g a n
. .
increased density in the areas which have
already been swept by our advance outwards from Toronto. Somehow the changes you propose
must allow the new powers to be to have the political necessary to influence this. Personally I
feel a lack of sense of community when we are all so spread away from each other. Having
grown up in Montreal where typically people live in duplex style homes and streets are lined
with cafes, restaurants, cinemas, clubs, bars, and so on, I feel urban sprawl needs to slow down
and the density needs to increase in the area. This would obviously be short of going overboard
which would in turn create more problems. Nonetheless, land must be treated as more than just a
commodity which is in abundance. Costs increase significantly with urban sprawl. More
NOV 15 95 09 : 03
infrastructure (roads, highways, etc.), an increase in the number of social services centres (rather
than increasing the number of employees at existing locations to serve the increased number of
people living in the area), transit services, and so forth. People are taxed to the hilt. Maintaining
and even decreasing taxes cannot by achieved by budding new infrastructure for a thinly spread
population. It is not cost effective. In twenty-five years, we may need to build a subway line
through Mississauga. How can we expect to do that when we are having problems today
building the Sheppard line? Politicians and T.T.C. representatives claim ridership did not
warrant the construction of the Eglinton subway line. This is expected when the population in
spread as thinly as it is over the Metro region. Pooling tax dollars is not enough. Land should be
treated as all other resources; Reduce, Reuse, Recycle. First, we must reduce the amount we use
by creating greater density of the land we have already used and will use.
A lack of social and economic vibrancy exists in the City of Toronto today. The City has
potential for more and your task force is at a crucial point in the development of the area. The
time your task force has been given has been shortened to (I believe) half of the time allotted by
the late premier Bob Rae. I trust this has not effected your considerations. Your deliberations
should be guided by the fact that you too live in the area and hope for a better tomorrow. We
will all be affected by your suggestions. Make them powerful and radical if you feel they will
serve us all better in the future. I hope they are balanced and not affected by any partisan
affiliation.
Sincerely,
Copy
Ms. Barbara Hall, Mayor of the City of Toronto
Mr. Mike Harris, Premier of Ontario
Ms. Hazel McCallion, Mayor of Mississauga
Mr. Al Leach, Minister of Municipal Affairs
Ms. Elizabeth McLaren, Deputy Assistant Minister (Office for the G.T.A.)
Mr. Alan Tonks, Chairperson for the Municipality of Metropolitan Toronto
NOV 15 95 09 : 03
Maria Karmiris
134 Milverton Blvd.
Toronto, Ontario
M4J 1V1
Thursday, September 28, 1995
Attention: Golden Task Force Commission
Dear Sir or Madame,
This letter is in regards to the proposal which would make East
York part of the city of Toronto. While I do not live in the
borough, I believe that creating a larger city will create more
problems than it will solve.
It may appear to be an economic
benefit; along with this one benefit come many problems.
The people of East York are used to the laws and bylaws that are
governed by their borough.
Trying to force a group of over 100 000
to suddenly accept the dictation of the city of Toronto would be
difficult to achieve.
Asking East York citizens to conform to
different building codes, pay different property taxes and place
their jobs with the borough in jeopardy is to large of sacrifice.
While during hard economic times money should be a major concern,
it should also be considered
that there are 200 years of history
and community that make Canadas only borough unique. Money is not
a good enough reason to take away the feelings of pride and
security that are associated with the citizens of East York.
I sincerely hope that this proposal will be reconsidered due to the
overall negative
impact it will have on East York as well as
Toronto. Im sure that there are other alternatives to sustaining
the expenses of the city and the borough separately.
Finding
alternatives will serve the purpose of keeping everyone happy
without threatening to change the lives of many East York citizens.
Sincerely,
Maria Karmiris
Jeffrey Kay
360 Ridelle Ave. Apt914
Toronto Ontari o M6B IK1
Tel : (416) 782-9252
September 18th 1995
Anne Golden, Chair
Greater Toronto Area Task Force
393 University Avenue
20t h Fl oor-2001
Toronto Ontario M5G 1E6
SEP 19 1995
9 5 , 2 5 1
(GTA TASK FORCE
Deer Ms. Golden,
In response to your letter of August 10th, here is my vision of a more integrated public
transit network for the Greater Toronto Area.
My comments come from the perspective of transit patron who has used the system on a daily
basis for over 15 years. In that time I have gained an appreciation for the complexities that go
into running a transit system that carries well over a million people a day. The city has grown
beyond the Metro Toronto boundary, but this arbitrary line separates the frequent service and
extensive route network of the TTC, from areas with little or no service outside the rush hour. In
these outlying areas many routes do not follow a direct line, An even worse problem confronts a
prospective transit user who wishes to cross the Metro boundary and must pay two fares.
Over the past two years the Transit Integration Task Force of the Ministry of Transportation
made a detailed study of problems of providing public transit in the GTA. A review of their work is
important, as they made a number of valuable suggestions in creating a seamless and more cost
effective network. An important point made by the Task Force is that currently public transit is a
purely municipal service. Efforts to run buses across municipal boundaries are currently faced
with numerous bureaucratic obstacles ranging from closed door operation to the requirement of
*full cost recovery . Changes must be implemented quickly to ensure that public transit is a
viable transportation opt ion for trips between different municipalities within the GTA
A regional body is required to guide transit agencies in the GTA, in their delivery of transit
services. A degree of local input is still required for bus route changes since the type of customer
that uses transit differs across the GTA. In the high density downtown core, traveling distances
are less, headways are much shorter and ridership is much higher. People will choose to travel
by transit to and from the core even if they already own a car. In the new suburbs where
population densities are much lower, the road pattern inhibits the operation of well patronized
routes that have a high cost recovery. Here the private automobile is a much more attractive
method of getting around. We cannot simply rebuild the road network and expect transit to have
the same level of ridership as in the downtown arm. But there is no clear boundary between these
two types of urban landscape. Drawing the line between these areas is thus virtually impossible.
Within the region of each transit operator, a flat fare (and free transfers between routes) is
now being charged for a ride of any distance, at any hour. Rules similar to this have been in effect
since the days of horsecars. This type of fare structure has a long history, and will be very
difficult to change. Even though most transit users who travel further would agree to paying a
greater fare, there is no consensus as to how different amount should be calculated and how these
different fares should be collected. Toronto has no major natural features, such as a large river or
escarpment, that can be used as a boundary for transit zones. Therefore I suggest a variation on
fare by distance. The charging of a second fare at the Metro boundary, be done away wi t h, and
transfers would only be valid for a specified time period, such as two hours. For trips longer than
two hours an additional cost is incurred. (If such a system is to be introduced, two aspects of the
TTCS operation must be examined. Some subway stations have fare paid platforms, where it is not
necessary to show a transfers when moving between the Subway and surface routes. Secondly,
subway transfers are dispensed from automatic machines, and are available to anyone, not only
those people who paid a fare at that location.) I briefly considered the use of a substantially
reduced fare where the rider would not be entitled to transfer privileges, but due to significantly
different distances covered by the various routes now operating in the city. A fare valid for only a
short time period e.g. 30 minutes would only be practical if the Proof of Payment system, with
roving ticket inspectors is expanded to the entire system. I do not see happening in the near
future.
I also encourage the introduction of other initiatives to provide the people of the GTA with a
more unified public transit network. The same tickets and tokens should be used across the GTA, A
single telephone information service must be formed that can guide riders through their enti re
t r i p.
Budgets for transit capital projects must be examined as part of an overall transportation
infrastructure. Highways and rail lines are alternate methods of moving people, Rapid Transit
routes can move more people, take up less space and are much lass damaging to the environment
than our rapidly growing highway system. Some cities in the United States have recognized these
facts and reallocated funds for highway projects to new passenger rail routes.
A wider GTA vision is required for planning and construction of Rapid Transit and GO Train
lines. Recent discussion of the TTCs RTEP program appeared to be carried on independent of the
plans to upgrade the GO system. Greater coordination can be obtained through a transit agency that
is responsible for al I forms of public transit in this area.
A trip on public transit must be viewed in its entirety from local bus to express bus to rapid
transit to commuter train. A new public transit agency must have a vision wide enough to include
all these modes of travel. A look at our highways will show the current volume of cross boundary
traffic. If a fraction of the this traffic can be diverted to transit every resident of the GTA will
benefit.
Changi ng l ocal boundari es or reorgani zi ng the responsi bi l i ti es of regi onal and l ocal
government will not change the demands placed on public transit. Changes should be made with a
view towards simplifying the transit network to attract new users, I look foward to hearing the
results of your work, especially as they relate to public transit.
Yours truly,
BLAKE F. KINAHAN
METRO COUNCI LLOR
LAKESHORE- QUEENSWAY
August 16, 1995
Dr. Anne Golden
393 University Avenue
20th Floor - Suite 2001
Toronto, Ontario
M5G 1 E6
Dear Dr. Golden:
Re: Metros Input Into the Greater Toronto Area Task Force
As you may know, Metro Toronto Council will be forwarding to you its final
submission to your task force before the deadline of September 30, 1995. I do not
support the Council position. Instead, my position is outlined in the attached
memorandum dated June 28, 1995, which I presented to the Members of Council
at the Council meeting of that day. It contemplates, in effect, one municipal
government for the entire region and accessing the income tax base of the region
to fund its operations.
During the debate at Council on June 28, 1995, Mayor Michael Prue of the
Borough of East York made an interesting comment, He indicated that urban
planners had told him that, to determine where a city ends, one simply goes up in
an airplane at night over the area and notes that the city ends where the lights end.
Mayor Prue was in favour of the preservation of his borough and the elected
representatives who sit on its Council. It was interesting to note that in Mayor
Prues approval of the framework for Metros submission to you, he did not
advocate the establishment of 28 boroughs for the Municipality of Metropolitan
Toronto, each borough having its own municipal government exactly like the
Borough of East York. If its the best way to govern East York, why wouldnt it be
the best way to govern my ward which has a population of 77,855 (as at 1991)
compared to the population of the Borough of East York of 102,696 (as at 1991)?
In reflecting further upon the comments of the urban planner who spoke with
Mayor Prue, I would submit that such an airplane flight at night would, in fact, make
it obvious that the idea of one municipal government for the the entire area is the
correct approach. If one goes up in an airplane at night, one does not see different
coloured lights in the City of Etobicoke which are different from those of the City of
North York. Similarly, one does not see any difference in the lights between the
City of Mississauga and the City of Etobicoke, or the Municipality of Metropolitan
Toronto and the Region of Peel. i n fact, all one sees is a continuous display of
lights. The metropolis of the Greater Toronto Area does indeed end where the
lights end, but one only sees one metropolis.
Accordingly, I hope you
as you take an airplane ride up
will seriously consider this submissionespecially
at night over our metropolis.
Yours very truly,
Blake F. Kinahan
BFK/cdr/799
cc: Members of Council
(without enclosure)
BLAKE F. KINAHAN
\ lETRO COUNCILLOR
L.AKESHORE-QUEENSWAY
METRO
MEMORANDUM
Date: June 28, 1995
To: Members of Council
Re: Metros Input to the Greater Toronto Area Task Force
Recommendations:
It is recommended that Council adopt as Metro Councils collective vision for
the Toronto Region and preliminary framework for reform of municipal government in
Greater Toronto:
(1)
(2)
(3)
(4)
(5)
(6)
The creation of a new level of government, the Greater Toronto Area
Council (the GTA Council), which would assume all of the powers of the
current upper and lower tier municipalities in the GTA.
The elimination of the Area Municipalities, Metro and the other
Regional Councils which make up the Greater Toronto Area.
The GTA Council would be directly elected with each Councillor
representing 40,000-50,000 residents.
The resulting GTA Council would have upwards of 100 Councillors and
it may be appropriate that it be modeled on the Legislative Assembly
with political parties and with the selection of the Chair of the GTA
Council being the leader of the party with the most seats. (The difficulty
with this suggestion is whether the party system is more democratic
than the way our Council currently operatesespecially after direct
election was instituted. )
The exact boundary of the area over which the GTA Council would
have jurisdiction would be based on the projections of population in the
region as of 2020 or thereabouts.
Ward boundaries could simply be based on the Provincial riding
boundaries except that they are divided in two so that there are double
(7)
(8)
(9)
(lo)
the number of local representatives to the GTA Council as there are
representatives to the Legislative Assembly.
Elections for the GTA Council could take place on the same day as a
Provincial election.
Financing of the operations of the GTA Council would be through a
combination of property tax, user fees and income tax on persons
working or living or doing both in the GTA (the proposal would simply
be a percentage of the provincial income tax; the income tax on
persons who work in the GTA could simply be based on a payroll type
of tax which the employer could keep track of and remit to the GTA
Council at the same time that remissions are made to the Provincial
Government. The payroll tax would be a deduction from employees
salaries and would be specifically noted on pay stubs). Provincial
grants and subsidies would be eliminated since they would in effect be
replaced by the income tax on persons working or living or doing both
in the GTA. The disentanglement process that was started would be, in
effect, achieved at least in so far as financing arrangements.
Property Tax could either be based on market value assessments or
simply unit assessments based on the size of house or lot being
serviced (the current location premium which is part of market value
assessment would not be needed because of the tax on income).
Councillors on the GTA Council could do double duty and could be the
public school trustees for the area they represent. The powers of the
school boards could be transferred to the GTA Council.
Submissions:
Introduct ion:
The Rae Government created the GTA Task Force whose terms of reference
indicate that its objective is to provide direction for the future governance of the GTA,
including the potential restructuring of the responsibilities and practices of municipal
and provincial governments. The Task Force must define a system and a style of
governance, appropriate to the Toronto of the next century. initially, the mandate of
the GTA Task Force was to be completed no more than 18 months from its initiation.
The Harris Government has now indicated that it expects, apparently, a final report
some time in October. This new compressed time frame has resulted in the CAO
coming forth with his report of June 26, 1995, which indicates his vision for the reform
of municipal government in Greater Toronto. In effect, our Council meeting today has
changed from a preliminary assessment of the process to achieve our final
recommendations to, in fact, an initial declaration of our preliminary recommendations.
As a r esul t , I have suggest ed t he above bei ng our pr el i mi nar y
recommendations and do apologize to my fellow Councillors for not bringing this
forward earlier. Once again, the compressed time frame has made it more relevent to
put it forward immediately. I had hoped to work on this matter during the summer.
Instead, the summer can now be devoted to flushing out the ideas presented above if
they have any semblance of support by Metro Council.
The ProbIem;
The terms of reference of the GTA Task Force suggests that the system of
managing our cities at both the municipal and provincial levels is under extraordinary
financial strain and is no longer matched to the tasks it faces. I dont believe that we
are currently in a crisis state. Yes, our region has been deeply affected by the
recession, but our region is still one of the most successful regions in the country and
in the world, and is still one of the best places to live.
There is a general perception by the public that there are massive amounts of
duplication of government and that massive amounts of money would be saved if we
eliminated one or more levels of government. So how much duplication is there?
Metros big three are Police (the cities do not do police), welfare (the cities do not do
welfare) and the T.T.C. (the cities making up Metro do not provide transit). Similarly,
the cities making up Metro provide services like fire (Metro does not provide fire
service), etc. Attached as Exhibit 1 is the page of what services are delivered by the
two levels of government as noted in the brochure called Metro and You. It would be
my submission that even if you eliminated all of the duplication, the savings would not
be substantial.
In any event, our region is one of the most successful regions in the world and
the four levels of government, which have jurisdiction in it, have not interfered with our
ability to be successful; it probably has enhanced it.
We Are One City:
Attached as Exhibit 2 is a map of the GTA showing the 1991 population
distribution in which one dot represents 25 persons (source - Metropolitan Toronto and
Greater Toronto Area, 1991 Census Atlas, Series A Data, produced by Metro
Planning). The phrase, a picture is worth a thousand words, is fitting. The heavily
blackened area in Exhibit 2 is continuous. It is one giant metropolis.
Attached as Exhibit 3 is a map showing the political boundaries for the map in
Exhibit 2.
Exhibit 4 shows the Employment incommuting to Metro Toronto and the
Employment outcommuting from Metro Toronto both for 1986 and estimates for 2011.
This exhibit was first published in the Metro Planning document The GTA: Concepts
for the Future (published November 1990). It seems to me that if you work in one area
and live in another, commuting each day, both areas are part of that individuals city.
METRO
B Met r o Pol i ce
B T T C
B Met r o Am bu l a n ce
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
wh eel -Tr a n s
soci a l ser vi ces
t r a f f i c con t r ol
m a j or r oa d s
r egi on a l pa r k s
wel f a r e a ssi st a n ce
sewer a n d wa t er ser vi ce
ch i l d ca r e
r ef er en ce l i br a r i es
h om es f or t h e a ged
ga r ba ge d i sposa l
p r ocessi n
g
of r ecycl a bl e
Met r o Zoo
bu si n ess l i cen si n g
m u n i ci pa l gol f cou r ses
expr esswa y
s
a n d t h ei r
l i gh t i n g
Exh i bi t i on pl a ce
T or on t o I sl a n d s/f er r y
ser vi ce
OKeef e Cen t r e
CI TI ES/BOROUGH
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
r
c
f i r e p r ot ect i on
h yd r o
h ea l t h ser vi ces
m a r r i a ge l i cen ses
l oca l l i br a r i es
col l ect i on of ga r ba ge a n d
r ecycl a bl es
d og l i cen si n
g
a n d pou n d
S er vi ces
z on i n g
si d ewa l k s
st r eet l i gh t i n
g
h a r bou r
pa r k i n
g
l ot s a n d p em i t s
t r a f f i c r egu l a t i on s
ped est r i a n cr ossover s
l oca l pa r k s
r ecr ea t i on a n d com m u n i t
y
:en t r es
a x col l ect i on
bu i l d i n g byl a ws
evi d en t i a l st r eet s
ol l ect i on of wa t er bi l l s
pa r k s
pl a n n i n g
r oa d s
sewa ge disposal
water supply
solid waste management
libraries
licensing and inspection
economic development
snow removal
non-profit housing
t r a f f i c si gn s
collation of fines
Storm drainage
8
property management
74.67
165,1
39,5
Toronto (City)
655.3
A
i
29.74
Provincial Total
10,818,000 5268.00 48.70 315,822,163 29.19 82.86 17.14
(1) Includes all Public Health Branch funded programs (cost shared and 100%)
(2) Costs other than salaries and benefits
B Population statistics are based on information from Statistics Canada
See notes at the beginning of the book for more information.
APPENDIX B
Table 2
(1) Indi vi dual program budget s i ncl ude al l ocat ed admi ni st rat i ve cost s.
(2) I n cl u d es Teac hi ng Heal t h Uni t ; CI NOT; Unor gani zed Ter r i t or y; Loc al Pr ear m
such as Speech and Audi ol ogy, Genetics, etc.
(3) Allocated administrative cost s are r ef l ec t ed pr ogr am budget s.
APPENDIX C
Table 4
1994 Board of Heal t h (BOH) Budget Information by Program
Halton Region
APPENDIX C
Table 5
1994 Boar d of Heal t h (BoH) Budget f nf or mat i on by Pr ogr am
Pe e l Re g i o n
FTE Bu d g e t ( 1 ) Per Capi t a $
To t a l Pe r c a n t o f To t a l Pe r c e n t o f To t a l
BoH FTE BoH Budget
Heal t hy Gr owt h and Devel opment
He a l t h y Ch i l d r e n 55. 85 19. 8 4 , 2 8 6 , 1 7 5 2 6 . 2
He a l t h y Ad o l e s c e n t s
5 . 1 4
2 1 . 5 7 7 . 7 1, 645, 628 10.1 1.97
He a l t h y Ad u l t s 22. 00 7 . 8 1, 656, 081
10. 1 _ 1. 99
He a l t h y El d e r l y 21. 40 7 . 6 1, 664, 937 10. 2 2 . 0 0
Re p r o d u c t i v e He a l t h . 85 200, 330
. 24
Se x u a l He a l t h 14. 40 5 . 1 1, 234, 829 7 . 6 1. 48
Su b t o t a l 136. 07 4 8 . 3 10, 687, 980 6 5 . 4 12. 82
He a l t h y Li f e s t y l e s
Tobac c o Use Pr event i on - Cost Shar ed 3 . 7 9 1. 3 290, 129
. 35
Tobac c o Use Pr event i on - 100% 4 . 5 0 1. 6 371, 215 2 . 3 . 4 5
Subst anc e Abuse Pr event i on .
Nu t r i t i o n Pr o mo t i o n . 6 1 2 6 , 0 0 ; . 8 . 15
P h y s i c a l A c t i v i t y P r o m o t i o n 1 . 1 0 . 4 79, 350 . 5 . 10
Su b t o t a l 11. 09 3 . 9 866, 699 5 . 3 1. 04
Communi c abl e Di sease Cont r ol
STD - AI DS 6 . 8 0 2 . 4 5 4 6
8
4 2 4 3 . 3 . 66
STD - Ot h e r 148, 216
5 . 8 0
. 18
Va c c i n e Pr e v e n t a b l e Di s e a s e s 2 . 1 431, 832 2 . 6 . 52
Tu b e r c u l o s i s Co n t r o l
1. 50 118, 350 . 14
Ou t b r e a k Co n t r o l 2 . 5 6 . 9 199, 962 1 . 2 . 24
I n f e c t i o n Co n t r o l i n i n s t i t u t i o n s
-
1 . 1 2 . 87, 625 . 11
Fo o d Sa f e t y
19. 67 7 . 0 1, 509, 989 9 . 2 1. 81
Wa t e r Qu a l i t y
2 . 7 9 1. 0 214, 268 1. 3 . 26
Ra b i e s Co n t r o l 1. 55 . 5 119, 027 . 7 . 14
Su b t o t a l 4 3 . 6 9 15. 5 3 , 3 7 5 , 6 7 3 2 0 . 7 4 . 0 5
Emer genc y Response . 31 . 1 23, 805 . 1 . 03
1. 31 . 5 9 9 , 1 0 6 . 6 . 12
Su b t o t a l 1. 62 . 6 122, 911 . 8 . 15
Gener al St andar ds
Equal Ac c ess
5.20 1. 8 368, 007 2 . 3 . 44
1. 43 . 5 109, 706 . 7 . 13
Su b t o t a l 6 . 6 3 2. 4 477, 713 2 . 9 . 57
Ot her
Ot her Programs(2)
-
706, 913 4 . 3
7 3 . 1 3 2 5 . 9
. 85
No n - a l l o c a t e d a d m i n i s t r a t i o n
6 . 0 0 2. 1 1, 216, 831 7 . i 1 . 4 6
Budget Adj ust ment . 00 . 0 - 1, 112, 545 - 6 . 8 .
Su b t o t a l
8 2 . 8 3 29. 4 811, 199 5 . 0 2. 31
Grand Tot al 281. 93 100. 0 1 6, 342, 175 100. 0 20. 94
I
APPENDIX C
Table 6
1994 Boar d of Heal t h (BOH) Budget I nf or mat i on by Pr ogr am
York Region
FTE Budget(1) Per Capita $
Total Percent of Total Percent of Total
BoH FTE BoH Budget
Heal t hy Gr owt h and Devel opment
He a l t h y Ch i l d r e n 3 0 . 4 7 17. 8 2, 351, 732 2 1 . 9 4 . 0 9
He a l t h y Ad o l e s c e n t s 14. 65 8 . 6 1, 144, 175 1 0 . 7 I . 9 9
He a l t h y Ad u l t s 9. 14 5. 3 748, 971 7 . 0 1. 30
He a l t h y El d e r l y 8. 00 4 . 7 648, 383 6 . 0 1. 13
Re p r o d u c t i v e He a l t h 2. 25 182, 337 1. 7 . 32
Se x u a l He a l t h 8 . 1 7 4 . 8 651, 858 6. 1 1. 13
Su b t o t a l 72. 68 42. 5 5, 727, 456 53. 4 9. 95
He a l t h y Li f e s t y l e s
Tobac c o Use Pr event i on - Cost Shar ed
Tobac c o Use Pr event i on - 100% 2. 00 l . 2 2 5 3 , 3 6 ; 2 . 4 . 44
Subst anc e Abuse Pr event i on 1. 10 . 6 8 9 , 6 3 7 . 8 . 16
Nu t r i t i o n Pr o mo t i o n 1. 65 1. 0 144, 833 1. 4 . 25
Ph y s i c a l Ac t i v i t y Pr o mo t i o n . 60 . 4 4 9 , 5 9 7 . 5 . 09
s u b t o t a l 5. 35 3. 1 537, 432 5 . 0 . 93
Commmi c abl e Di sease Cont r ol
STD - AI DS 5.00 2.9 409,195 3.8 .71
STD - Ot h e r 2. 65 227, 991 . 40
Vac c i ne Pr event abl e Di seases 7. 95 4 . 6 580, 885 5 . 4 1. 01
Tu b e r c u l o s i s Co n t r o l 2. 50 1. 5 193, 017 . 34
Ou t b r e a k Co n t r o l 3. 85 2 . 2 320, 560 3 . 0 . 56
I n f e c t i o n Co n t r o l i n I n s t i t u t i o n s 2. 63 1. 5 222, 719 2. 1 . 39
Food Saf et y 1 2 . 2 7 7 . 2 1, 015, 391 9 . 5 1. 76
Wa t e r Qu a l i t y 2. 72 1. 6 228, 249 2. 1 . 40
Ra b i e s Co n t r o l 1. 82 1. 1 151, 697 1. 4 . 26
Su b t o t a l 41. 39 2 4 . 2 3 , 3 4 9 , 7 0 4 3 1 . 2 5 . 8 2
Heal t hy Envi r onment s
Emer genc y Response . 49 . 3 39, 032 . 4 . 07
Non-Commun i c a b l e Di s e a s e I n v e s t i g a t i o n . 30 . 2 27, 084 . 3 . 05
Su b t o t a l . 79 . 5 66, 116 . 6 . 11
Gener al St andar ds
Equal Ac c ess . 32 . 2 30, 127 . 3 . 05
. . . . .
Su b t o t a l . 32 . 2 3 0 , 1 2 7 . 3 . 05
Ot her
Ot h e r P r o g r a m s . 00 276, 677 2 . 6 . 48
Al l o c a t e d Ad mi n i s t r a t i o n ( 3 ) 42. 62 2 4 . 9
No n - a l l o c a t e d Ad mi n i s t r a t i o n 8. 00 4 . 7 773, 937 7 . 2 1. 34
Budget Adj ust ment . 00 . 0 36, 000 - . 3 .
Su b t o t a l 50. 62 2 9 . 6 1, 014, 614 9. 5 1. 83
Gr and Tot al 171. 15 100. 0 10, 725, 449 100. 0 18. 70
APPENDIX D pg. 1 of 5
1994 FUNDING AND STAFFING REPORT FOR
ONTARIO BOARDS OF HEALTH
PREFACE
OVERVIEW OF PUBLIC HEALTH PROGRAMS AND FUNDING
The Health Protection and Promotion Act (HPPA) requires that all boards of health provide a
basic minimum level of public health service to all Ontarians, as described in the Mandatory
Health Programs and Services Guidelines. In addition to mandatory programs, boards of health
may deliver optional programs and services that respond to local needs.
Most public health programs and services are cost-shared between the Ministry of Health and
local municipalities, 40% provincial/60% municipal in the six boards in Metro Toronto and
75%/25% in the remaining
36 boards of health. The following programs are funded 100% by
the Province: Dental Program for Children in Need, Dental Coaches, Family Planning/Sexual
Health, the Teaching Health Unit Program, Speech and Audiology, AIDS Prevention and
Control, Tobacco Use Prevention, Genetics and Unorganized Territories.
In 1989, the Guidelines for Mandatory Programs and Services were revised, resulting in twenty
mandatory programs and two general standards being identified. The budgeting system was
subsequently also revised, in order to reflect resource allocation to programs.
PURPOSE OF REPORT
The Funding and Staffing Report is prepared by the Public Health Branch (PHB), and uses
information from the Program-based Planning and Budgeting (PPB) system. The information
has been extracted from the 1994 budgets as submitted by boards of health to the Ministry of
Health and reflects subsequent budget approvals from the Ministry. The budget amounts shown
in this report are total public health funding, i.e. combined provincial and municipal funding.
i
APPENDIX D
The purpose of this report is to provide a provincial picture of how
pg. 2 of 5
the financial and staffing
resources allotted to Public Health Programs have been allocated across boards of health in
relation to the four public health goals and their respective mandatory programs.
This report may generate questions, discussion and challenges about the current and future focus
of resource allocation in public health and mandatory program implementation. It may raise
more questions than it answers, and the Branch would consider this to be a positive outcome.
This document is not intended to establish resource allocation targets or standards for the various
mandatory programs.
Setting budgeting and staffing standards has been deliberately avoided
because local differences and needs require variation in program resource allocations amongst
boards of health.
FORMAT
The financial and staffing information contained in this document is organized as follows:
provincial summary by individual boards of health, provincial summary by programs, board of
health information by program and program information by board of health. Funding for Home
Care is excluded from all these tables.
The budget and staffing information shown by program is aggregated data that falls under six
categories - the four mandatory program goals, general standards and other. Data about the
twenty mandatory program standards are summarized according to the four goals that they fall
within - Healthy Growth and Development, Healthy Lifestyles, Communicable Disease Control
and Healthy Environments. Aggregating the data according to these goals has been done to
minimize inconsistencies between individual programs because programs are based on different
local needs. As such, in some cases, it may be more relevant and meaningful to look at the
resources allocated to the entire goal rather than to individual programs.
A category of Other shows resources allocated to all programs and expenditures other than
those that fall within one of the four mandatory program goals or general standards. These
include local optional programs, provincial programs that are specific to only some boards of
health (e.g. Dental Coach, Teaching Health Unit Program) and administration costs.
ii
APPENDIX D Pg. 3 of 5
POPULATION FIGURES
B
Statistics Canada preliminary post censual estimates for 1994 were used as the
denominator of some of the columns in this report(Statistics Canada, Catalogue No. 91-
213). These figures are only available at the Census Division level (i.e. County/District
or Regional Municipality). This means that some of the boards of health jurisdictional
boundaries do not match the boundaries used in the population estimates. In most cases,
the difference is less than 2.5 percent and is ignored.
B
In two cases (Metropolitan Toronto; Muskoka-Parry Sound/North Bay) adjustments have
been made to the population base to more closely match boards of health jurisdictional
boundaries.
B
In the case of Metropolitan Toronto, 1992 estimate figures for each municipality (1994
estimates are not available) was used. This provides a good population base for each of
the boards of health within Metropolitan Toronto, but it may be somewhat low for the
City of Scarborough.
B
In the case of Muskoka-Parry Sound and North Bay Boards of Health, we went back to
the 1991 Census The populations for each of the Census Divisions in
question (i.e. Muskoka, Parry Sound, Nipissing) were added together and then
redistributed to either the North Bay or Muskoka-Parry Sound Boards of Health based
on Census Sub-division (municipality) figures. The same percentage breakdown between
the two boards of health was then applied to the 1994 combined populations estimates of
the Districts of Muskoka, Parry Sound and Nipissing. This hybrid figure was the
population base used in the report. The underlying assumption is that the proportion of
population in the two boards of health remained constant from 1991 to 1994.
DATA USE LIMITATIONS
Caution must be exercised when using the data to make comparisons or draw firm conclusions.
A variety of factors may influence the apparent diversities and inequities that would be noticed
when comparing one board of health to another or one program across boards of health.
The following are some factors to be considered when using this data:
B
- information contained in this report is budgeting and staffing data that has been
extracted from the 1994 budgets as submitted by boards of health to the Ministry of
Health and subsequent budget approvals from the Ministry. Actual in-year expenditures
and allocations may vary from budgeted and approved amounts.
111
APPENDIX D pg. 4 of 5
B
Information reported in these tables does not reflect reductions in budgets due to social
contract requirements, nor does it include the one time funding for the Hepatitis B
immunization project.
B
In some programs, especially the Healthy Growth and Development and Healthy
Lifestyle programs, staffing allocations may be reported inconsistently among boards of
health because these programs are usually integrated for program delivery, with cross-
-referencing of several activities.
B
Information reported through PPB is usually based on activity tracking systems used by
boards of health. As there are differences in tracking policies and systems in individual
boards, this could be reflected in the reported full-time equivalent numbers (FTEs)
allocated to a program. The reported FTEs may be an inaccurate account of actual
staffing resources by program.
B
Boards of health are at various stages of implementation of mandatory programs, and
individual programs are also at different stages. Hence some boards of health with full
implementation may appear proportionately high in resources against boards of health
with minimal implementation to date.
B
Boards of health are required to deliver mandatory programs based on the needs of the
local population that they serve. Diverse demographics and community needs require
different levels of programming.
iv
APPENDIX D Pg. 5 of 5
1994 FUNDING & STAFFING REPORT
FOR
ONTARIO BOARDS OF HEALTH
Glossarv of Terms
Allocated Administration Costs
Costs that are deemed to vary based on the number of program FTES (for example, supervisory
staff, clerical support, office supplies, rent, travel, etc.) and which are allocated out to
programs.
Budget Adjustment
Includes such costs as offset revenue, salary gapping, and in-year enhancement approvals for
administration costs to be allocated into programs the following year.
Full-time equivalent staff.
Non-Allocated Administration Costs
Costs that are deemed not to vary based on program FTEs (for example, selected staff such as
Medical Officer of Health and Business Administrator, boards of health member honoraria,
accounting fees, etc.) and which are not allocated out to programs.
vi
[
APPENDIX E
Table 7
905 Regional Public Health Departments
(Based on 1994 data)
August 1995
Th e Re g i o n a l
M u n i c i p a l i t y
o f Du r h a m
HEALTH
DEPARTMENT
Head Office
1615 Dundas Street East
Suite 210
Whitby, Ontario
Canada L1N 2L1
(905) 723-8521
Fax: (905) 723- 6026
Tor : (905) 686- 2740
September 1, 1995
Dr. Anne Golden
Chair
GTA Task Force
393 University Avenue, Suite 2001
Toronto, Ontario
M5G 1E6
Dr. Golden:
Please add the attached Appendix C, Table 6 to the submission that was
sent to you from Drs. Peter Cole, Helena Jaczek, Robert Kyle, and Robert
Nosal on August 30,.1995. Unfortunately, the appendix was inadvertently
omitted from the submission.
Thank you for your cooperation and assistance with this request.
Yours sincerely,
cc. Dr. Peter Cole
Dr. Helena Jaczek
Dr. Robert Nosal
100% Post Consumer
President: LINDA TORNEY
15 Gervais Drive, #407
Vice-Pres: PAT CLANCY
Don Mills, Ontario
Secretary: HORACE SINGH
M3C 1Y8
Treasurer: SHANNON HALL
Phone: (41 6) 441-3663
Fax: (416) 445-8405
September 20, 1995
Taskforce on the GTA
393 University Avenue
Suite 2001
Toronto, Ontario
M5G 1E6
Attention: Anne Golden
Dear Ms. Golden:
Attached is a copy of our brief to the GTA Taskforce. Please note that our brief is
compatible with that of CUPE Ontario, which has already been submitted to you. A copy
of the CUPE brief is appended to our document.
We also would like to note that this is not our final comment on the GTA and we reserve
the right to develop our positions further.
We look forward to meeting with you on
October 10th, and to participating in further discussions in the future.
Yours truly,
Linda Torney
on behalf of the signatories
of attached brief
Attachment
opeiu 343
Ont ari o Federat i on of Labour
President: LINDA TORNEY
Vice-Pres: PAT CLANCY
Secretary: HORACE SINGH
Treasurer: SHANNON HALL
SUBMISSION
TO THE
PROVINCIAL TASKFORCE
ON THE
GREATER TORONTO AREA
BY
Brampton-Mississauga & District Labour Council
Oakville & District Labour Council
Durham Regional Labour Council
Labour Council of Metropolitan Toronto & York Region
Toronto-Central Ontario Construction & Building Trades Council
Canadian Union of Public Employees District Councils of
Metro Toronto, Peel, York Region & Durham
September 19, 1995
opeiu 343
13 Canadi an Labour Congr ess
15 Gervais Drive, #407
Don Mills, Ontario
M3C 1Y8
Phone: (41 6) 441-3663
Fax: (41 6) 445-8405
Ont ari o Federat i on of Labour
SUBMISSION ON THE G.T.A.
PREAMBLE
This submission is made on behalf of Brampton-Mississauga and District Labour Council,
the Oakville and District Labour Council, the Durham Regional Labour Council, the
Labour Council of Metropolitan Toronto and York Region, the Toronto-Central Ontario
Construction and Building Trades Council, and the Canadian Union of Public Employees
District Councils of Metro Toronto, Peel, York Region and Durham. Together we
represent over 300,000 members in the Greater Toronto Area. You have already received
a submission from CUPE Ontario. The two drafts are compatible, and a copy of the CUPE
brief is appended to this document.
The debate thus far on the GTA has consisted mainly of conflicting, and sometimes self-
serving, submissions by municipalities within the Greater Toronto Area. Most of these
submissions have discussed structural changes with little or no analysis of the impact on
services and on jobs in our regional area.
It is impossible for us to respond to each of these submissions. None of us have the time
or resources for the extensive analysis required to determine whether Politician As plan is
better than Politician B. Rather than attempt this exercise, we have chosen to focus our
submission on some basic principles which should govern any structural changes to the GTA
governance and which, we fear, are being lost in the shuffle.
1) Quality of Urban Life
The GTA is unique. Despite its size, it is still a livable city. We enjoy a vibrant downtown
core, standards of safety and cleanliness well above those of most urban centres, a rich and
diverse cultural life and good public services. Greater Toronto is a long way from perfect,
and much could be done to improve our quality of life, but in comparison with other urban
centres, it has been enormously successful.
This is reflected in the remarks of visitors to the GTA in particular, those from the United
States. In addition to creating an urban environment of which we as residents can be proud,
the GTAs livability is a major factor in one of our local economys main components -
tourism.
Maintaining and improving our quality of life must be the major emphasis of any changes
to the GTAs governance and service delivery.
2) Maintenance and Improvement of Public Service
A livable city is made up of many things. Parks, schools, roads, transit, social services,
health care and a vast array of hard and soft infrastructure make our region one in which
we choose to live and in which we can enjoy our lives.
Good public services is an
investment in community and a major incentive to business to locate in our region. While
there is always room for improvement, services in the GTA are a primary factor in the
economic health of the region in comparison to other urban centres worldwide. Any
restructuring plan must focus on maintenance and improvement of public services as a
major priority.
. . . 2
- 2 -
3) Full Employment
Quality of life has much to do with the economic health of a region. The GTA has suffered
dramatic job loss in recent years. In addition to eroding the tax base for all levels of
government unemployment places a serious strain on municipal and community services as
cities and agencies struggle to meet the needs of increasing numbers of residents without
adequate income. The loss of purchasing power created through massive unemployment has
caused unprecedented bankruptcies in the retail and service sector, causing yet more erosion
of municipal tax base. GTA municipalities therefore experience rising costs and falling
revenues.
Job retention and creation must be of primary concern for a healthy community. Public
sector employment is a major component in the regions economy. Not only do public
service workers provide the very services that make the GTA livable and attractive to
tourists and business, they provide a stable tax and disposable income base for the regions
municipalities and retail/service industries.
Plans for the GTA should not be governed by spending reductions and tax cuts designed
to achieve the lowest common denominator in competitiveness. Rather, they should focus
on developing and marketing the regions considerable strengths.
4) Public Control and Accountability
There are good reasons for maintaining services under public control. First and foremost,
it provides for accountability. No other delivery mechanism can ensure that citizens have
a voice in the services which are so important to their quality of life. Second, good
infrastructure planning cannot be achieved if delivery is splintered into a variety of private
sector deliverers. Nor is there any incentive for improvement, or even retention, of services
if they are in the hands of the private sector. Third, private deliverers will be governed by
profit. This will remove access from many GTA residents, and in many cases these will be
the people most in need of the services. There is a fourth and very important reason for
public control in the delivery of GTA services, and that is accessibility. While many argue
that GTA municipalities have a long way to go in this area, many municipalities within the
region have expressed a commitment to fully accessible service delivery. This is especially
important in an area as culturally diverse as the GTA. The private sector is unlikely to have
either the will or the capacity for a commitment to accessibility.
5) Where do we go from here? - Public Access
To date, there has been little process in the GTA discussions. Some individual
municipalities have heard deputations on their own submissions to the taskforce, but there
has been no comprehensive overview to place before residents for their comments.
. . . 3
- 3 -
Before any restructuring is undertaken, there must be adequate opportunity for informed
public input. Any major change in delivery of service will have major impact on the
recipients of these services. The recommendations of your taskforce need to be
accompanied by analyses of the impact on quality of service and on jobs, and should be
followed by a campaign to raise public awareness and seek input in a meaningful way. The
municipal level of government is the most important level to most of us. Municipalities
make decisions which impact directly on peoples lives. In a time when many residents
believe they have no access or control over provincial or federal decisions, these same
residents believe their voices count at the municipal level. This is a trust which must not
be destroyed. Decisions facing us regarding the GTA are far too important to be rushed
through, or introduced in a vacuum.
SUMMARY
In conclusion, we believe the principles of quality of life, maintenance and improvement of
public service, full employment, and public control and accountability must govern your
taskforces recommendations. We also urge that you recommend a fully informed public
discussion of your recommendations, and we look forward to participating in that process.
opeiu 343
APPENDIX A
BUI LDI NG A SUSTAINABLE COMMUNITY:
CUP E ONTARIO's VI SI ON FOR THE GREATER ToRoNTO AREA
P r esen t ed t o the GTA Task Force
May 1995
Preamble
It is incumbent upon all
Greater Toronto Area
stakeholder groups to ensure that citizens of the 21st century in the
will live and work in a sustainable community, one that is safe,
healthy and economically viable. Local government structures must be both democratically
elected and held accountable for actions to achieve that goal.
Quality public services are integral to the sustainability of any community and to the quality
of life in the community. Social and physical infrastructure are twin pillars supporting the
quality of life for individuals, families and the economic health of the community.
Accessibility, equity, justice and excellence are all important features of the community.
And developing quality public services is fundamental to building strong social and physical
infrastructure.
Care must be taken in the creation and maintenance of a sustainable community not to
diminish these pillars which support economic development and social security. Attention
must be paid to the fact that quality of life does not come for free.
Quality of life in any community is conditional upon the economy being able to sustain
superior working conditions, wages and benefits in our workplaces. Our objective should
be workplaces with upper end jobs requiring high levels of skill and compensated
accordingly. And we should strive for safe, secure and healthy work environments.
Successful planning for the 21st century requires that we incorporate each of these elements
in a meaningful way. We should strive for an evenness in community and economic
development which does not allow for a single-minded focus on one aspect of economic life
(e.g., low-wage competitiveness) to diminish the quality of life for all.
The following are principles which CUPE Ontario believes will ensure the well-being of our
community into the 21st century:
Principles
Full employment. It is critical that there be an adequate number of full-time, well-
paying jobs for those who need or desire work. There must be an increase in
employment opportunities. Low-wage options which industrial and public sector
restructuring has unleashed on our economy must be eschewed.
Building A Sustainable Community
CUPE Ontarios Vision for the Greater Toronto Area.
Page 2
B
Safe, productive work. The production process and the workplace must be safe and
healthy for both workers and the community. Health and safety, and environmental
regulation do not destroy jobs, rather they guarantee that business modernizes to
comply with regulations, and that our communities are made safe from toxins and
other pollution.
.
An environmentally-sensitive economy. Environmental-sensitivity makes good
economic sense. The pursuit of environmentally-sensitive goods and processes is
consistent with the pursuit of new market opportunities and new job opportunities.
The existing public sector infrastructure and workforce should be approached as
precious resources to maximize and facilitate the creation of green communities.
B
Highly-developed public infrastructure. The GTA has already a highly-developed
public infrastructure (physical, institutional and social). Transportation networks and
skilled labour pools have been identified as critical factors (far greater than tax
competitiveness) in the decision for business to locate in any metropolitan area. Our
public transportation systems, and educational and training facilities, for example, will
require strengthening over the next decades.
B
Superior human resource development. Human resources need to be protected and
expanded to ensure a highly-trained and skilled workforce integral to the
development of a high wage economy. Employment security and advancement will
need to be promoted and supported. The development of the human capital in the
GTA will require training and skills development, as well as redeployment
mechanisms and protocols to ensure that the disjunction between employment
opportunities and workers skills is minimized.
B
No privatization of public services. Services provided in a 21st century GTAwould
not be commercialized, privatized or contracted out. A process for examining
services already contracted out would be established to determine the feasibility of
bringing that work back in-house.
A sustainable economy cannot be built on privatization downsizing and irresponsible
homage to the rhetoric of competitiveness. The objective of proper planning for
economic and community development is to attract industry and to retain industry
in high wage, high skill sectors.
The commitment of industry to the values and goals of the community are every bit
as important as the commitment of the community to industry. Economic
development premised on narrow profit-maximization objectives does not form the
basis for a continuing partnership between industry and the community.
For example, irresponsible competitiveness can lead decision-makers to conclude that
taxes must be lowered in order to attract business. Studies indicate that business and
Building A Sustainable Community
CUPE Ontarios Vision for the Greater Toronto Area.
Page 3
property taxes are not a major factor in the decision to locate in one metropolitan
area over another. Creating conditions which foster a weak tax base is detrimental
to the provision of public services which are so essential to healthy communities.
Cutbacks to public employment inevitably impact negatively on local consumer-based
businesses.
.
Public accountability, consultation and control. There must be broad-based public
and employee involvement in sharing municipal and regional planning. The rights
of unions to organize and defend its members must be a given. Unions must be
accorded a role as an EQUAL and knowledgeable partner with politicians, users of
services, and community groups in an open government process. The GTA must be
accountable to the citizens who live within its boundaries, not only at election time
every three years, but every day in between in a process which is equitable, fair and
progressive.
For example, unions representing workers of the GTA should be involved at every
step of the decision-making process. They should be consulted and accorded
standing in deliberations around budgets, and other finance matters such as work
organization job design, and contracting in.
Greater cooperation between the municipal and provincial levels of government is
essential if(a) common problems are to be resolved in a timely and efficient manner,
and (b) decisions which contribute to constructive change are to be made
expeditiously.
.
Planning. Planning for todays and tomorrows needs must be consistent and
integrated into the change process. All stakeholders must be part of this process.
In particular, community and labour participation in planning is essential to assure
long-term economic development.
B
Excellence. The development of excellence in a community is dependent upon every
level of that community working toward a common goal. Unions, user groups,
community groups, and business must all share a responsibility for making a
community a sustainable one. The economic vision must be one of a high wage
sustainable community, not one of a low-wage, lowest common denominator, attract
business at any cost vision. We must ensure that public administrators and managers
are committed and appropriately trained to achieve this vision.
Our community should strive not only for excellence in business, but excellence in
the living standards for its citizens. The opportunity for an enjoyable life should not
be sacrificed for the narrow interests of those who wish only to reap profits.
Businesses who support the goal of excellence in the quality of life in the community
should be encouraged. Those who do not support these goals should be discouraged
and denied public support for their ventures.
Building A Sustainable Community
CUPE Ontarios Vision for the Greater Toronto Area.
Page 4
The creation of excellence should not be confused with the creation of a low-wage
economy through competition. A downward spiral on wages only results in an
erosion of the overall tax base. The erosion of the tax base will result in cutbacks
to public services, ironically at the very time there will be, by necessity, a greater
demand on public services. Tax abatements and fiscal give-aways do not attract
businesses with a commitment to economic development for the benefit of the entire
community.
Sustainable economic development is possible when the community establishes basic
standards of employment (working conditions, wages, benefits, pollution, business
practice, etc.) and proceeds to cultivate employment that meets or betters those
standards.
Our community must be prepared to attract good employers and to discourage
bad employers. More importantly, our community must be prepared to cultivate
economic activity through the retention and renewal of existing jobs. Communities
thrive when their core economies are upgraded and positioned for expansion. Public
sector infrastructure (technical assistance, training, skills development) are essential
to that renewal.
Public services are integral to a healthy economy. The GTA in the 21st century must
strive to attract business and economic ventures which incorporate progressive
community and workplace values into their corporate cultures.
Economies which are built upon a good foundation (good schools, universities and
colleges with a commitment to life long learning, superior roads, highways and public
transportation systems, social services which contribute to the well-being of those in
need, public waste management systems which accentuate waste reduction through
3 Rs, public health services which ensure that citizens receive a superior level of
health care so that our population is healthy and active.
These features attract business to a community not drive it away. A healthy, vibrant
community with a correspondingly healthy workforce is vital for economic
development.
Public services must be adequately funded. All levels of government must shoulder
the responsibility to ensure that public services are properly funded. The GTA will
have the public mandate to develop mutually agreed-upon systems for sharing the
cost of public services with other levels of government. Tax reforms which generate
new revenues should be used to fund quality public services.
The introduction of user fees should not be used to replace progressive forms of
revenue generation. Public services must be accessible to all groups in the
community irrespective of their ability to pay.
.
Building A Sustainable Community
CUPE Ontarios Vision for the Greater Toronto Area. Page 5
B
Public services must be easily and fully accessible. Access to public services must
be equitable across the entire spectrum of the community. Differential access on the
basis of any individual characteristic (e.g., culture, race, gender, geographic location
disability) to services should be eliminated.
.
Public services must be comprehensive. Public services are delivered by all levels of
govemrnent community boards, agencies and utilities. In every community, a
network of services has developed over time. Gaps and inequities in services
sometimes occur. It is important to have a proper process for analysis and reform
of services to re-establish a comprehensive delivery of services.
B
Clear standards are essential. Clear standards must be established and retained for
the delivery of public services. The local government of the GTA would work to
ensure that reform of both national and provincial standards are informed by the
local experience and that the quality of life in local communities is both protected
and enhanced by reforms.
.
Effective use of resources. Delivery of services by the not-for-profit sector ensures
that all available resources are directed to the provision of that service.
Co
nclusion
The people of the Greater Toronto Area have a right to a sustainable community complete
with a full-range of quality public services and infrastructure.
They have a right to
participate in decision-making about what the goals of economic development should be.
They have a right to participate in the administration of the economy itself to ensure that
economic objectives are consistent with community objectives.
Our democratic processes for public control and accountability must reflect as closely as
possible the wishes of the community and decision-making bodies must be reflective of the
composition of the community. Labour must play a key role in both shaping the direction
of the GTA economy and building a sustainable community into the 21st century.
opeiu 491/343
Nick Lavalle
73 Brownlee Ave.
Woodbridge, Ont.
L4L 8H4
Ms. Anne Golden
Chairperson, GTA Task Force
393 University Avenue
Toronto, Ontario
M5G 1E6
Dear Ms. Golden:
November 22, 1995.
I would like to express my strong concern regarding the use of
property taxes as the ma-j or source of funding for our education
system. This is a concern that has been expressed by many in the
City of Vaughan, as well as elsewhere.
In Vaughan, approximately 72% of our property taxes goes to the
local school board. This year I am paying more than $4,000
simply for my education portion. I think this is outrageous.
It is particularly hard to take when fellow co-workers, friends
etc, who make the same wage that I do, pay about half (some pay
closer to one-third) of what I do simply because they live in
Toronto, i.e. assessment rich areas.
For many years I have been telling anyone that would listen that
there is no correlation between the value of a persons home and
the ability of that person to pay the associated property taxes.
Some people have all their wealth tied up in a home, while for
others their home represents only a small. portion of their
wealth.
Some have large mortgages, which reduces their wealth, while
others have no mortgages at all. Some people are on fixed
incomes due to age, injury or unemployment and yet these people
are expected to contribute the same amount towards the cost of
schooling children, regardless of their other assets or income
levels.
Of course the problem has grown worse,
as Ontario's dependence on
property tax for the funding of education has grown from just
over 40% in 1974 to more than 60% in 1992.
In fact, Ontario is
far more dependent on property taxes than any other province in
Canada.
The sad part is that the politicians have known this all along
and did not have to wait until December of 1993, to find out from
the Fair Tax Commission that:
1. Residential property taxes are regressive. Lower income
families pay a higher proportion of their income in property
taxes than higher income families.
and
2. Households in similar financial circumstances pay very differ-
ent amounts of property tax.
Indeed the relationship between
the amount of property taxes that you pay and your household
income is nearly random.
You might be interested to know that in May of 1991, Premier
Harris wrote in a response to a letter from me, "... local
ratepayers have assumed a larger portion of education costs. I
agree that this is an unfair burden,
since property taxes are not
based on the ability to pay.
Young couples purchasing their
first home and seniors on fixed incomes are particularly hard hit
by this trend. Our party is committed to a full review of the
education finance system. We will be developing a position in
conjunction with the work of the Fair Tax Commission on this
issue.
U
Given that the Fair Tax Commission has now reported, I would hope
that the present government is working to incorporate its recom-
mendations as they relate to education funding.
While I understand the difficulties in net using property taxes
as a source of funding, I suggest that it is more difficult to
stick with something that is wrong and unfair.
I encourage you to do what is right and fair and promote the
significant reduction and the eventual elimination of property
taxes as the basis for funding our education system.
In this
regard I would be pleased to meet with you to discuss my ideas in
greater detail.
Yours very truly,
Nick Lavalle
(905)856-9040
Marie Leone Valerie Plunkett Wanda Halliday Robert Coaten
90 Burnt Bark Drive 127 Montezuma Trail 17 Obris Crescent 503-1095 Neilson Road
Scarborough Ontario Scarborough, Ontario Scarborough, Ontario Scarborough, Ontario
MIV 2J8 Ml V 1 K4 MIS 3G6 Ml B 5K5
November 21, 19 9 5
Greater Toronto Area Task Force
393 University Avenue, 20th Floor
Toronto, Ontario M5G 1E6
Dear Madam Chairman and Task Force Members:
After reading about the input from the GTA Mayors, GTA Regions,
individual Cities, individual School Boards we are fed up. The only
jurisdiction that has knowingly eliminated their own positions is
Metropolitan Toronto. All other jurisdictions have proposed that we are
over taxed and over governed but always by someone else.
This letter comes to you from a group of taxpayers,
who have
fought with the Metropolitan Toronto School Board (Scarborough School
Board) for a number of years, having had some wins, we feel that the
bureaucrats have taken control and some of our elected officials have
been manipulated by the system.
We are over governed, we are over taxed and we feel like our tax
dollars go into a deep dark hole with only dribbles going to the areas
that are necessary. The areas we expect to fund include Police,
Education, Transportation and limited Social Services.
Every report that has gone to the Golden Commission says eliminate
them not me. This is our opinion and we believe that we are supported
by a majority of residents.
ELIMINATE THE SCHOOL BOARDS. They are a waste of tax
dollars. We want to educate children and. we are NOT doing that.
Provide each child with a certificate that can be taken to any
Provincially approved school. The Provincial Government should set the
curriculum (the same across the province) and monitor the accreditation.
This system should satisfy the Constitutional requirements for the
Separate School. All schools would then be forced to be competitive and
fight for the dollars to stay open. Each school should be run by a
volunteer board setup with taxpayers and teachers. Capital
expenditures and salaries would be managed by a single tier government.
In Metro, the city councillors should be eliminated and the Metro
Councillors will handle all issues. It has to be cheaper to have 1
level of government in Metro than to have SIX. All departments will be
amalgamated with the 6 city centres meeting the needs of specific local
problems. (This could be a standard set up through out the GTA.)
- 2 -
Special Boards and Commissions, e.g. Police Services, T.T.C.,
Library Boards, should be abolished and made departments of the single
tier government. This would allow public participation in decisions
made by these bodies, accountability to the public by elected officials
and some form of control which does not now exist.
M E M O R A N D U M
To: Anne Golden
Chair
Greater Toronto Area Task Force
From: W. A. Liczyk
Commissioner of Finance and Treasurer
RE: MUNI CI PAL FI NANCI NG
Date: May 15, 1995
Further to the meeting on Monday, I jotted down some questions and financial options
that could be considered,
Can disentanglement be re-invented for municipalities?
. Consider the issues of transfer payment equality, assessment reform
(residential with commercial & industrial) and service funding to create a net
zero sum package.
We need to consider Provincial programs that can be more effectively delivered by
the municipalities. Funding of such programs would become an issue in the
disentanglement exercise.
How politically acceptable are any solutions to either one of the three political
parties? Should we beconsidering/influencing their proposals/getting commitment
that they will seriously consider and/or accept taskforce recommendations.
What financial options are possible? Politically acceptable? We need to
concentrate on implementable solutions and hopefully come up with
recommendations like the Royal Commission on Learning - recommendations that
any political party can accept, otherwise we will become yet another report on the
shelf.
GREATER TORONTO AREA TASK FORCE
. What does GTA pooling of commercial and industrial assessment do to
municipalities? What about pooling Vaughan, Markham and Mississauga
commercial and industrial assessment with Metro municipalities?
. What does an expansion of Metro borders to include Vaughan, Markham and
Mississauga do the tax problem (Particularly if combined with equalized
assessment which Metro tried to bring in
This may relieve the issue.
B Will consideration of variable mill rates
after the Province didnt approve
-
MVA)?
create a competitive environment that
replicates/further exercabates the current crisis situation?
(s this concept inconsistent with a level playing field concept and minimizing
the flight of business to municipalities with lower tax rates?
. Because education is about 55% of the tax bill, it is the single largest issue for
taxpayers - with respect to value. If funding by the income taxis not possible, how
can education financing be more accountable to our taxpayers? Taxpayers want
to see accountability improved.
NOTE: Would education financing by the income tax only increase the
amount of GTA dollars that are redistributed out to the rest of the
Province? My guess is yes since GTA urban incomes are higher on
average than the rest of the Province,
.
Commissioner of Finance and Treasurer
:js/maja
J.J.Long
92 King St.E.Unit 404
Toronto, Ontario
M5C 2V8
Municipal Reform Commission
Sept. 29,1995
Dear Members:
To summarize my proposals regarding reforming municipal government
Toronto once again. I believe that the following reforms should take
There should not be one large Toronto region
{
instead there should
current Metro Toronto boundaries surrounded by an inner rinq
in the
place.
be the
region
containing the southern parts of the present Peel and York reagions and
southwestern portion of Durham region.
The number of municipalities in the
core and ring regions should be reduced with more logical boundary lines
implemented as in my previous letter.
The province should take over the management of all rail rapid transit
lines (GO and subways) and divided highways in the inner and ring regions.
Since the province provides the major funding for the construction of such
rail lines and roads it should decide where they should go best on a
regional basis.
I have provided copies with maps with my previous letters. This is just a
final reminder submission.
Yours truly
John
Cc.
J.Long
Hon. Al Leach M.P.P.
Minister of Municipal Affairs
Queens Park
Toronto, Ontario
Lon gwood s
September 15, 1995
Greater Toronto Area Task Force
339 University Avenue, 20th Floor
Toronto, Ontario
M5G 1E6
Attention: Dr. Anne Golden, Chair
Dear Dr. Golden:
The publisher and editors of Focus on Canadian Municipal Assessment and Taxation (FOCUS)
feel that the review of property assessment and taxation by the Greater Toronto Area Task Force is
the most important review undertaken since 1904. Therefore it is important that a submission
limited to the subject of assessment matters be prepared and extensively circulated and approved.
Since November 1986 FOCUS has produced a monthly newsletter directed to individuals and
organizations interested in or involved in municipal assessment and taxation. It is the only
national monthly newsletter in existence dealing with assessment and taxation.
Focus was initially published by CCH Canadian Limited and was succeeded in February of 1994
by Longwoods Publishing Corporation. Subscribers vary from provincial governments, school
boards and municipalities to consulting, law and accounting firms, and industrial and commercial
corporations across the country.
There is a conscious effort on behalf of the publisher and the editors to ensure that the
commentary is objective and consistent. To that end a Publications Board is in place consisting of
rcprcsentativcs from assessment tribunals, assessors across Canada and legal and consulting firms.
Two weeks ago a draft submission to the Task Force was circulated to more than 700 recipients.
The positive response to this draft submission has been extensive. Supporting comments came from:
The Canadian Bankers Association and its member banks;
Major retail department and food stores;
Major automobile manufacturers;
Large property owners and managers;
The legal profession;
The accounting profession;
All IeveIS of government, including the federal government,
school boards, municipalities and townships;
Tribunals; and
The consulting industry.
Negative responses were very limited and generally felt that the submission was too narrow and
should include items of taxation policy such as variable mill rates. The full particulars of
responses are available upon request.
On behalf of our editorial advisors, our subscribers and our readers I am pleased to make these
submissions to the Greater Toronto Area Task Force.
Yours respectfully,
Focus on Canadian Municipal
Assessment and Taxation
Publisher
Longwoods Publishing Corporation
264 Adelaide Street West, Toronto, Ontario M5A 1N1 B Tel (416) 864-9667/ Fax (416) 661-9530
Spec i al I ssue
SEPTEMBER 15, 1995
The publisher and editors of Focus on
Canadian Municipal Assessment and
Taxation arc pleased to make this
submission to the Greater Toronto
Area Task Force.
On August 31, 1995 a draft submission
to the Task Force was circulated to
more than 700 recipients including
subscribers, property owners,
municipalities, school boards, boards
of trade and industry advisors.
We were pleased to receive a positive
response to this submission by:
The Canadian Bankers Association
and its mcmber banks;
Major retail department and food
stores;
Major automobile manufacturers;
Large property owners and
managers;
The legal profession;
The accounting profession;
All levels of government, including
the federal government, school
boards, municipalities and
townships;
Tribunals; and
The consulting industry.
Their agreement with the substance
and details of our comments arc
reflected in this submission.
1. There should be a distinct
separation of Assessment
Policy and Taxation Policy.
Historically, in the public eye
assessment is synonymous with
taxation. This has lead parties
opposing tax increases for their
respective properties, to rally
against market value re-assessment
when, in fact, their objections
should have been in respect to the
changes in taxation. The method
of assessment should stand on its
own merit, how it translates into
taxes is another issue.
The publics lack of differentiation
between taxation and assessment
arises in part as a result of current
restrictions on how mill rates are
set. Under this perception a
change in assessment auto-
matically meant a change in
taxation. Municipalities in
Ontario should have both the
freedom and responsibility of
setting their own taxation policies.
This notion requires some
flexibilit
y
in the setting of mill
rates, i.e., a variable mill rate
system. Ontario should have a
system of assessment which:
B
B
B
B
provides across the province
B
B
B
B
Planning and zoning;
Building standards compliance;
Local by-law enforcement (parking,
animal control, property standards,
signs);
Local storm sewers;
Water distribution;
Roads;
Waste collection;
Parks and recreation;
Cultural activities;
Social housing;
Day care;
B
B
what kind of
Escarpment
this area
planning program is most appropriate for the
what should be the priorities for government acquisition of lands
what further
planning and
area
- what further
operation of
Obviously
was fully cognizant
such as these could
interim measures are necessary to ensure that good
landuse control become a reality for the Escarpment
measures, if any, are
pits and quarries?
these are fundamental
needed to regulate the
questions. The Government
of
do
the fact that snap
more harm than good.
4
answers to questions
At the same time, the
Government was aware that early action was needed if key portions of
the Escarpment were not to be overwhelmed by competing development
pressures.
To aid in formulating a practical and realistic policy for
the Escarpment, the Government announced the appointment of a Niagara
Escarpment Task Force in May 1972. This Task Force, consisting of
senior representatives from those Ministries most directly associated
with Escarpment programs, had the following terms of reference:
1. To develop overall priorities to be used in the acquisition of
land by the Province and its agencies
2. To advise on all proposed land acquisitions by the Province and
its agencies
3. To establish land-use and development standards and to examine
methods of land-use control and to recommend a system to ensure
the appropriate use of lands
4. To advise upon all proposals which would result in major
changes in existing landuse patterns.
The Task Force began
submit its final report to the
examining the substance of the
its work immediately, and was able to
Government in December 1972. Before
Task Force Report, and the Governments
response to it, a word should be said about how the Task Force operated,
The Niagara Escarpment Task Force set out to find
out how the people most concerned actually felt about the preservation
of the Escarpment. How did the public feel about what had been
done? About what remained to be done? To provide for this public
5
discussion, the Task Force held open meetings in seven communities alo
the Escarpment: St. Catharines, Hamilton, Milton, Orangeville,
Collingwood, Owen Sound and Lions Head.The meetings were well
attended and proved to be forums for spirited debate. As well as the
public meetings, the Task Force maintained extensive contact with local
authorities and concerned citizens through personal interviews, meetin
with municipal councils, ratepayers groups, conservation-oriented
organizations and businessmen, and through hundreds of briefs and
letters. In total, the Task Force has estimated that it had direct
contact with more than 3,500 people.
The Task Force reported in late 1972.The intervening
months have been spent in a careful analysis of the report, and the
formulation of a definitive Government policy for the Escarpment.
While this policy will vary from some of the recommendations of the Ta
Force, the Government wishes to emphasize that a comprehensive policy
would not now be possible without the work performed by the Niagara
Escarpment Task Force. The report of the Task Force is being released
today as a supplement to this Statement of Government policy.
GOAL AND OBJECTIVES FOR THE NIAGARA ESCARPMENT
To provide the framework for an Escarpment policy the Task Force
recommended that the fundamental goal, or purpose, of any policy for th
Escarpment should be:
To maintain the Niagara Escarpment as a continuous
natural environment while seeking to accommodate
6
demands compatible with that environment.
The Government accepts this recommendation. This means
that all Government actions in the Escarpment area will be directed
toward the preservation of the unique natural environment of the
Escarpment. It is important to note, however, that this goal recognizes
that preservation of the natural environment should not be the sole
purpose of all government activity related to the Escarpment.
Acceptance of the goal means that the Government will pursue policies
which also accommodate other demands-- such as urban and recreation
development which are compatible with the goal of Escarpment
preservation.
To attain this goal, the Task Force set out six objectives.
The Government accepts these objectives and will use them as guidelines
for its own programs,and for the activities of the municipal and
private sectors. These objectives are:
1. To protect unique ecologic and historic areas
2. To maintain and enhance the quality and character of natural
streams and water supplies
3. To provide adequate opportunities for outdoor recreation,
through the public and private sectors
4. To maintain and enhance the open landscape character of the
Escarpment by such means as compatible farming or forestry and
by preserving the natural scenery
7
5. To ensure that all new development is compatible with the goal
for the Escarpment
6. To provide adequate access to the Escarpment.
To ensure that all policies and programs for the Escarpment
will be framed with the basic goal and six objectives in mind, these
have been incorporated in new legislation introduced today.
TO ACHIEVE OUR PURPOSE
To carry out a program designed to realize the goal and objectives
outlined above, two differing approaches or alternatives could have
been used.
The Acquisition Approach
The first alternative is a massive program of land acquisition. Using
this approach, the Government of Ontario would have ended up owning the
Escarpment and associated landsan area of approximately 1.3 million
acres. This approach has been rejected by the Government.
Many activities in the Escarpment area can, most
appropriately, be left to the private sector. Examples of these
activities are agriculture, and some forms of recreation, quarrying and
urban development. To the extent that these activities do not
conflict with the accepted goal and are, in the words of the goal
demands compatible with that environment, they are acceptable.
We must also consider costs. The Government estimates that
the cost of purchasing all lands associated with the Escarpment would
8
be in excess of $3 billion. If public purchases were necessary in
order to achieve our purposes in the Niagara Escarpment area, it could
be done although the cost would be high.However, in most parts of
the Escarpment such purchases would be to ensure that present land
uses will continue, Therefore, it is appropriate that the land
remain in private hands and present uses remain undisturbed.
For these reasons, the Government has rejected total
acquisition of the Escarpment area.
The Planning Approach
The second alternativeis to create a planning system
provinciallydirected land-use regulation plus public
necessary. This approach is the method chosen by the
This has been done for several reasons.
featuring strong,
ownership where
Government.
First, this approach permits a variety of land ownership and
uses in the Escarpment area.This in turn means that we can harness
the strengths and initiatives of the private sector in helping us to
achieve our purposes. It is generally agreed that continued private
ownership in agriculture and some forms of recreation facilities,
for example, is desirable and necessary to our policies.
Second, we must recognize that the Escarpment has both
provincial and local significance. By using a planning framework to
achieve our purposes we will be able to provide for a strong local
contribution to land-use decisions affecting the Escarpment area.
9
Third, this technique will enable the Government to concen-
trate its land acquisition funds on those key areas of the Escarpment
where public ownership is most desirable. It must be emphasized, how-
ever, that such an acquisition program will still be expensive.
For these reasons, the Government has decided to preserve
the Niagara Escarpment through a new and innovative planning framework
which marks a significant departure from past practices. Again, it
should be noted that this conclusion is supported by the findings of
the Niagara Escarpment Task Force.
10
THE NEW PLANNING FRAMEWORK
The planning framework exhibits three new major features: a new
organization to do the planning, a new process whereby the planning
will be done, and new legislation to embody these changes.
The Niagara Escarpment Commission
The Niagara Escarpment Task Force recommended the establishment of a
Niagara Escarpment Secretariat to prepare a plan for the Escarpment,
to co-ordinate and monitor government programs, and to serve as the
source of public contact on Escarpment issues. The proposed
Secretariat was not seen by the Task Force as a part of a regular formal
Ministry structure.
After careful consideration, the Government has adopted a
slightly different approach. In the Governments view, the body charged
with planning for the Escarpment area must exhibit three essential
features.
First, this body should have a large degree of flexibility
in setting out its own administrative arrangements and in securing
the best staff support possiblewhether inside or outside government.
Innovative planning requires innovative structures.
Second, there must be direct local participation in such a
planning program. As noted before, the Escarpment is vitally significant
to those local communities directly influenced by its presence.
Third, the body directing such an important and new planning
program should be directly accountable to a member of Cabinet-
11
because Cabinet is the final policymaking body within our system
of government.
For these reasons, the Government has decided to establish a
Niagara Escarpment Commission. This Commission will report to the
Treasurer of Ontario because the Ministry of Treasury, Economics and
Intergovernmental Affairs now has the responsibility for guiding
provincial and local planning in Ontario.
Membership in the Niagara Escarpment Commission will be
secured on the following basis:
(a) eight members will represent local government. These will be
appointed by the Provincial Government following nomination
by the eight Counties and Regions within the Niagara
Escarpment Planning Area. In making nominations, it is
expected that the Counties and Regions will consider
individuals from those local municipalities through which the
Escarpment runs. The Counties and Regions which will be asked
to nominate representatives are: The Regional Municipality of
Niagara and the Counties of Wentworth, Halton, Peel, Dufferin,
Simcoe, Grey and Bruce;
(b) nine members, one of whom will be the Chairman, will be
appointed by the Government as Provincial representatives.
Thus, the Niagara Escarpment Commission will have a total
of seventeen members.
To enable it to carry out its duties effectively, the Niagara
Escarpment Commission will have the power to hire such staff as it
12
feels appropriate, and will also be able to request the services of key
personnel within any government ministry.
The Government does not view the Commission as a permanent
feature of the Provinces organization structure. As has been noted,
the Commissions main task is to prepare a plan for the Niagara
Escarpment area. When this job has been substantially completed-
probably not later than 1976the Government intends to transfer to
local government many of the responsibilities initially carried out by
the Commission.
The Planning Process
The Commission has been charged with the responsibility of preparing
a master plan for an area to be known as the Niagara Escarpment
Planning Area. This Area is similar to the study area used by the
Gertler Report with two important differences:
- the boundaries of the original study area have
off to follow lots, concessions and municipal
wherever possible.
- the entire Bruce Peninsula has been included.
been squared
boundaries
A map of the Niagara Escarpment Planning area is attached to
this Policy Statement.
In setting out a planning framework the Task Force noted that
if the stated purpose of Escarpment protection is to be achieved,
provincial policies and plans must be pre-eminent in the control and
13
development of the Escarpment. The Government accepts this premise
and has, therefore, authorized the Niagara Escarpment Commission to
prepare a master plan for the Escarpment area,
The Master Plan
In the preparation of this master plan the Commission will
be directed to work closely with local government. As will be seen
throughout this Policy Statement, the Government does not view the
Commission-or its planning program-as a substitute for direct local
decisionmaking. Municipalities will be full participants in the
Commission, in the plan preparation and ultimately in much of its
execution.
The Niagara Escarpment plan may contain guidelines covering
any or all of the following:
- policies for the economic, social and physical development
of the planning area, including land and water management,
population distribution and density, pollution control,
the designation of major land uses, provision of parks and
major servicing, transportation and communication systems;
policies relating to the financing and scheduling of public
worksprovincial or municipal;
provision for the co-ordination of provincial and local
planning and development activities;
policies designed to ensure that private development will be
compatible with the plan.
14
This must not be taken to mean that the
will be responsible for all planning in
the guidelines of the provincial master
Niagara Escarpment Commission
the affected area. Within
plan, there will still be many
significant planning decisions which can be made most effectively by
local government.
In recognition of this continuing role for local government,
and to ensure that local government accepted this responsibility, the
Task Force recommended that official plans be made mandatory for all
municipalities having jurisdiction within the Escarpment planning area.
In slightly modified form this recommendation has been accepted by
the Government. Under the new Niagara Escarpment Act, the Province may
require any municipality to prepare and adopt an official plan and
submit the plan for approval within a specified period of time.
In order to be effective, any plan prepared by the Niagara
Escarpment Commission and adopted by the Province must have clear legal
status. To achieve this, the Task Force recommended that any such plans
must be legally binding on all governments-provincial and municipal.
The Government endorses this approach. Once the master plan has been
approved by the Government, the plan will take precedence over local
plans. This means that no works can be undertaken which do not
conform to the plan. In addition, all existing official plans will be
modified to bring them into conformity with the overall plan.
The Government recognizes that the obligation to modify
existing official plans and, in some cases, to prepare new official
plans, will mean significant expenditures for many municipalities.
15
Because of this, funds will be made available to assist those
municipalities obliged to undertake such activities.
In a planning program as far-reaching as this, provision must
be made to enable changes in the plan after its initial adoption.
The Task Force recommended two ways of doing this: clear provision
for amendments, and periodic reviews of the entire plan. The
Government has accepted both of these recommendations, and appropriate
provisions are included in the new Niagara Escarpment Act.
Participation in the Planning Process
In a key set of recommendations relating to the planning process,
the Niagara Escarpment Task Force recommended that municipalities,
individual citizens and provincial agencies should be able to
contribute to the development of provincial and local plans
covering the Escarpment. These recommendations are entirely in keeping
with this Governments view of the planning process as an open system
where all can contribute. Because of this, the recommendations have
been accepted by the Government
is contained in the new Niagara
The Act provides that
and a detailed system of participation
Escarpment Act.
the Niagara Escarpment Commission
must ensure that copies of the proposed plan or any subsequent
amendments are supplied to municipalities, advisory bodies and
provincial agencies. In addition, copies of the proposed plan
amendments will be available
examination. After a stated
to any member of the public for
period of time has passed, during
16
or
which the
plan will have been evaluated by the general public and official
bodies, and comments will have been received by the Commission, the
Commission will appoint an impatial person to conduct a hearing or
series of hearings and to report back. This will provide a further
opportunity for any municipality or member of the public to state
a view on the proposed plan or amendment. The report of the hearing
officer, together with briefs and other comments, will be submitted
to the Treasurer along with the Commissions draft master plan. All
these documents will also be made public at the same time. Only after
this process has been completed would the Province proceed with
approval of the plan or amendment.
The Local Role in Planning for the Escarpment
The Task
outlined
if local
program.
that the
Force points out, quite correctly, that the planning framework
above will truly be a joint provincial-local effort only
governments are strong enough to carry their share of the
To accelerate the process, the Task Force recommended
system of local government in the Escarpment area
restructured immediately. The Government has not accepted
recommendation.
should be
this
One part of the Niagara Escarpment area is already operating
under a system of regional government. The Regional Municipality of
Niagara covers the southernmost portion of the Escarpment. Three
regional governments have been proposed for the segment of the
Escarpment running from Hamilton to OrangevilleHamiltonWentworth,
17
Halton and Peel. Some of these areas may be operating under a
form of regional government as early as the beginning of next
year. In the remaining section of the Escarpment, from Orangeville to
Tobermory, no proposals have been made for regional government. In
these areas, the Government will move to enable the existing counties
to set up effective planning mechanisms.
The Government of Ontario will take several steps to ensure
that the planning process makes adequate provision for local
concerns in all areas of the Escarpment.
In the Regional Municipality of Niagara, the new Niagara
Escarpment Commission will be directed to work closely with the Region,
The Government policy being announced today will assist the Regional
Municipality of Niagara in its planning program. Regional Niagara can
only frame detailed planning policies for its area of the Escarpment
when definitive statements of overall Provincial policy and guidelines
are available. The formation of the Niagara Escarpment Commission
and the planning program set out in The Niagara Escarpment Act will
make these policies and guidelines available. From the beginning,
we expect that the level of planning undertaken by the Niagara
Escarpment Commission within the Regional Niagara area can be
more generalized and less specific than will be the case elsewhere
since many decisions can and will be made at the regional government
level. The Commission will be expected
draft regional plan for Niagara as part
18
to use
of its
much of the existing
own guidelines.
The Niagara Escarpment Commission will be developing the
Escarpment master plan at the same time that the Hamilton-Wentworth,
Halton and Peel areas are working on their official plans and the
time-lag noted in the case of Niagara will not recur.With the
Provincial and local governments developing their plans concurrently
a fully integrated plan will be a reality.
In the
restructuring of
must be taken to
remaining section of the Escarpment, where no
local government will occur, a different approach
ensure effective local participation.
This section
Simcoe, Grey and Bruce
covers parts of the counties of Dufferin,
In each of these counties, the Government
will continue to encourage the establishment of county planning boar
to prepare county-wide official plans in close association with the
Niagara Escarpment Commission.
The working relationship between the Niagara Escarpment
Commission and local government is important. As suggested
above, this relationship will vary considerably from one part of the
Escarpment to another. In the Niagara Region, the entire Provincial
planning program will be less detailed than elsewhere, perhaps being
confined to a set of guidelines which the Region can use in defining
its own planning program. While the master plan will be more detailed
in other parts of the Escarpment, it must not become so specific as to
frustrate local decision-making. The Government will monitor the
work of the Commission carefully to ensure that the master plan does
not become a substitute for local plans and local decision-making.
19
As the planning program of the Commission evolves, the
provincial-local relationship will change. The bulk of the work to
be done by the Niagara Escarpment Commission will be completed by 1976.
At that time it is the intention of the Government that as many
functions of the Commission as possible will be transferred to local
government.
In addition to the responsibilities they will exercise as
planning authorities, local government on the Escarpment will have
role within the provincial planning process itself. Each regional
government and county will be directly represented on the Niagara
Escarpment Commissionthe body responsible for the preparation of
a
the provincial master plan. Also, during the period when the public
response is being solicited to the proposed plan or amendments, the
new legislation gives a clear advisory role to local government,
For example: counties and regions will be asked to receive any
submissions, comments or proposals from constituent municipalities,
and then to prepare a consolidated statement of views for submission
to the Commission.
Finally, provision is made for some of the detailed planning
powers of the Treasurer to be delegated to local governments along
the Escarpment when they have the necessary experience and
planning staff.
20
New Legislation
Today the Government has introduced new legislationThe Niagara
Escarpment Act. This Act will establish the Niagara Escarpment
Commission and initiate the planning process outlined above. Specific
features of the Act will be referred to in subsequent sections of
this Policy Statement.
In order to implement the policy of Escarpment preservation
through rational land use, the Government assigns a high priority to
this legislation and expects early passage during the current session
of the Legislature.
The Planning Framework: Summary
To summarize, the Government is introducing a new system of planning
for the Niagara Escarpment area. This new system has the following
basic features:
(a)
(b)
establishment of a Niagara Escarpment
the master plan. The Commission will
provincial-municipal body
Commission to draft
be a joint
establishment of a planning process in which:
- provincial policies will be stated in a master plan
official plans will be mandatory
- both the provincial plan and municipal official plans, will
be legally binding on provincial and local governments
all existing official plans will be modified to reflect
the approved provincial master plan
21
B
B
the City of Burlington;
the City of Oakville;
the City of Brampton;
the City of Vaughan;
the City of Markham;
the City of Richmond Hill;
a new combined city of the current towns of Pickering and Ajax;
and
a new combined city of the current Town of Whitby, the current City
of Oshawa and the current urban area of the Town of Clarington,
known locally as Courtice.
THEA. C. E. CONCEPT
The establishment of the five Core Cities and the Eight Edge Cities would
be with the consent of their residents. A binding plebiscite must confirm
or defeat any proposed amalgamation Initiative. Towns or cities refusing
to join the amalgamation would continue to operate as separate enclaves
within the Core and Edge City System. Each community must review
amalgamation on a case by case basis, although clear advantages exist for
the suggested outline of cities.
The Five Core Cities represent comparable population bases and
scales of development Each has a clear historical and cultural basis for
existence. The challenges each will face in the future will be comparable in
the areas of taxation, growth and intensification, social responsibilities,
cultural activities, and economic initiatives. Pooling of local assessment
should only occur among those Core Cities and not between the Core
and Edge Cities. This limited pooling recognizes the clear differences
between the Core and the Edge Cities. It creates a level playing field for
cities of comparable status.
10
THE A. C. E. CONCEPT
The Eight Edge Cities also represent comparable population bases
and scales of development While the historical and cultural basis for
existence varies greatly among the group, each has demonstrated strong
local development and has established a clear identity for Its residents.
These edge cities are self-sufficient in all categories and are active partners
in the municipal fabric of our province. Pooling of assessment among
the edge cities as a single entity creates a level playing field for future
growth and development. The creation of the Edge Cities within this
system would allow them to meet the challenges that confront them within
the parameters established by societal demands and under accountable
supervision by the taxpayer. A compact and understandable municipal unit
enhances accessibility and accountability.
Cooper a t ive
Currently, the multi-tiered system of municipal government sets a
competitive process amongst the tiers and special purpose bodies. The
result is confusion run amok. The A.C.E Vision establishes a system that
eliminates competition between tiers within a municipal boundary. One
Ievel, the local government, is responsible for the policies,
administration and service delivery within the municipal border.
This principle of separated municipalities being responsible for activities
within their respective municipal boundaries guarantees effective
government through increased accountability and basic self interest. It is in
the interest of the municipality to function efficiently as there is only one
level to held accountable by the taxpayers, This eliminates the long
treasured pastime of blaming the other guy, the other tiers, for all
problems or tax Increases. With the transfer of all the responsibility and
ability to the local level, the system ensures that the local government will
have the necessary tools to meet the needs of their community. The
taxpayers will hold accountable any failure to meet their needs. No
excuses will be acceptable as only results will count.
10
11
The role of policy making will fall to the local elected representatives. This
will result in the subsequent elimination of the other elected
representatives. Each local council will ensure that they meet the needs of
the local community or risk being held accountable. In Oshawa, the
current sixteen local representatives will replace the current forty-two
elected representatives In the five tiers. Reducing these sixteen to a
lower amount is conceivable. Other area municipalities will achieve a
comparable reduction In the number of representatives.
Corresponding reductions In support services will also result. As the
general responsibilities for the local level increase, there will be a need for
a system of advisory bodies to assist in the formulation of policy. The direct
responsibility of policy making wiII remain with elected
representatives but the advisory levels review and recommend
alternatives. After receiving considerable input from those with specialized
skills, the political representative act as a final decision maker. The
politician is then the generalist manager reviewing the submissions of the
specialist through the staff and advisory levels. A clear comparison
would be that of a medical general practitioner and medical
specialists. The practitioner would take initial inquiries, perform
primary analysis and if the complexity is beyond his or her ability
seeks addition assistance from the specialists. This is very similar to
the current role of federal or provincial representatives.
Having dealt with the advantages of Separate, H is important to note that
the A.C.E. Vision also believes that the separation will foster cooperation
between communities. it is the self interest of each community to have
the most efficlent and cost effective system of service delivery. If
another community develops a better system, it will be in the self interest of
others to access that system and use it to their communitys benefit.
Municipal organizations such as the Association of Municipalities of
Ontario could contribute a greater effort toward improving municipal
systems and information exchange and less on intergovernmental affairs
and jurisdictional matters. The private sector would also have a larger role
in developing systems to benefit municipalities as the clearer mandate of
each municipality would allow them to address solutions to municipal
needs,
12
As well as improving internally through information exchange with the
public and private sector, it will also be in the self interest of the municipality
to work cooperatively with other communities. By pooling their efforts to
provide batter service delivery, each municipality wiII reduce Its costs
to provide that service. The need to reduce costs drives the self-interest.
Communities will have to cooperate or be held accountable by the
taxpayer. The taxpayer will benefit through better services and lower
costs.
The Provincial - Municipal Partnership
n
It is essential to strengthen the partnership between the municipalities and
the provincial government. We must review the current partnership with
greater emphasis on service provision and create a clearer delineation
between the role of the province and that of municipalities.
Too much time and effort has been spent on trying to modify the cost-
sharing formulas on services funded by both parties. It is time to clearly
define areas of provincial jurisdiction and that of the local community, We
must minimize jointly admlnistered or funded programs and if
possible eliminate them. The vision limits the provinces role in the
partnership to determining the parameters of the municipal role in providing
services to the community. Each municipality must have the ability to move
within those established parameters according to its own needs and
desires. Provincial Iegislation should be permissive In character and
allow the municipality the right to operate within clear and
understandable limitations.
12
We must limit provincial involvement to that of an honest broker
developing partnership agreements, and to the arbiter of disputes between
municipalities, The province must undertake services that am not
reasonably the role of the local government The vision also limits the
local role in these areas to that of an agent providing a service for a fee.
Services where the needs are identifiable and universal across the
entire province should remaln at the provincial level. Examples of
these are Housing, Social Assistance, Public Health, etc.
The vision limits the Provincial role in taxation assessment to ensuring a
level playing field amongst comparable municipalities and sectors. We
must ensure that no municipality subsidizes another through pooled
assessment or other taxation measures unless they consent to the
action. if the situation requires subsidy, then the province should assume
that role. Each municipality in a unique situation that requires taxation
assistance must make the case to the province for its assistance. It must
not seek to grab revenues from its neighbours or others in the municipal
sector.
Municipalities must make all efforts to ensure financial self-sufficiency and
stability and discourage dependence on grants from senior levels of
government, Equally so, the Province must accept its responsibilities
as a municipal taxpayer and eliminate the grant in lieu policies that
prevent the province from paying its fair share of municipal tax.
The Province must provide municipalities with the ability to develop new
sources of revenue or negotiate for a fixed percentage of provincial tax
revenues from areas such as gas taxes, lotteries, sales tax, etc. These
additional revenues would allow for the elimination of economically
regressive taxes such as business tax.
14
b) Education reform.
Education is a prime example of how the A. C. E, Concept in partnership
with the Provincial Government can remodel local government along more
efficient and effective lines. The current system of elected trustees and
school boards Is a product of the 1800's. Established to give a
measure of local control to small communities, this system has grown
Into an unaccountable quagmire of competing boards and special
interests. The system is no longer effective in teaching our children nor is
It accountable to the taxpayers who fund it.
The A.C.E. Vision would replace the current system with one that
would see the administration of policy and curriculum be undertaken
at the provincial level. This would ensure that a common base curriculum
would be available at all schools in the province while allowing local input.
The local community through its local council would retain the
administration of service delivery. The growth of the concept of parent
councils at each school creates the realistic and effective alternative t to the
school board. A strong parental voice in the administration of their
local schools is necessary but clearly within the parameters
established by the policies of the Ministry of Education.
The Province must provide funding for the Education system
through its progressive income tax not through the regressive
property tax system. The Provines would grant funds to Local
Councils to administer within established parameters.
Those who wish to have their children educated in Catholic or other
religious denomination can do in this system but as an adjunct to the
base curriculum. The vast majority of the curriculum in both systems is
identical and established by the Ministry of Education. The establishment
of specialized advisory panels would ensure the maintenance of
denominational standards at individual schools. The parent council at each
school can ensure that the school follows parental wishes.
The A, C. E. Vision would eliminate the systems of parallel school boards,
administration, and service delivery through the schools. It would also
eliminate the current duplication caused by these competing boards. The
replacement of two virtually identical systems with parallel
bureaucracies give tremendous cost savings to the taxpayers. This
cost saving is available to enhance services to the students or to
provide tax relief.
One of the frequent complaints about local government is that the actions
taken by elected councils are often contrary to the wishes of the electorate.
Although the voters may replace unaccountable representatives at the tri-
annual election, actions between elections are harmful to the community.
When the actions are financial in nature, irreparable harm could occur to
the future of the community, The A.C.E. vision addresses this problem
through a system of direct democracy that would allow the electorate
an opportunity to override or veto actions taken by their councils. The
vision would limit the appeal to those areas that cause significant financial
hardship to the taxpayer. We must set the parameters in the empowering
legislation or by-laws.
A group of citizens may deem that a financial action taken by its
council to be contrary to the wishes of the majority of the electorate. It
can challenge the decision by means of a binding plebiscite. The
empowering legislation or by-law would establish the necessary level of
support to activate the appeal. This level must allow a reasonable appeal
but ensure it is high enough to back frivolous or vexatious petitions. The
A.C.E. vision would recommend a petition of no less than ten percent
of the eligible electors In the community.
15
THEA, C
. E, CONCEPT
conclusion
Continued dependence on old ideas and outmoded solutions will not result
in a municipal system that will meet the needs of the urbanized
communities. As tax dollars dwindle, new solutions must deal with the
challenges that will face us in the near future. We must work to eliminate
the problems that confront us not postpone them until the next generation.
Repeating past mistakes by simply adding additional levels of
government or administration wiII not solve the existing problems nor
allow for the necessary tools to deal with upcoming challenges.
Continuing to adhere to levels created as simplistic solutions to
pressures of growth will not achieve the desired changes to the
municipal system,
Our municipal system of government does not need a simple transfusion
nor a special elixir that purports to cure ail ills. Our system needs a vision
that will allow for the future well-being of municipal government. The
A.C.E. Vision provides the remedy to the existing problems and allows all
municipalities an opportunity to prepare for and deal with the challenges of
the future.
All that Is missing is the political will to establish the vision. These
actions require courage but to do less is to fall our citizens when they
need us most
THE A. C. E. CONCEPT
Summary of Principles
1.
A greater and more complex system of government
will not solve the problems of municipal
government
20 Government must be accountable therefore it must
be understandable and accessible.
3. Regardless of how efficient cooperative measures
are at any level of municipal government, they
cannot be as efficient as that achieved by a single
decision maker.
A superior level of government develops clear
decision-making coupled with a compact delivery
system and an accountable management process.
5. The A. C. E. Concept represents a clear alternative
to the bigger is better" approach.
6. Local government is best able to provide seamless
and efficient service delivery.
7. The changing economic and political climate
demands a redefinition of the boundaries of
municipalities.
8. The establishment of a Core and Edge System
represents the best option for sustainable
development, but this system must be established
only with the consent of its citizens.
THE A. C. E. CONCEPT
9. Pooling of assessment should only occur between
Core Cities as an entity and between Edge Cities as
a separate entity.
10. The multi-tiered system of municipal government
must be replaced with a single tier in each municipal
boundary.
11. The direct responsibility for policy making must
remain with directly elected representatives.
12. The self-interest of each community will ensure the
most efficient and cost effective system of service
delivery.
13. We must review the current provincial-municipal
partnership with greater emphasis on service
provision and with a clear delineation between the
roles of the province and that of municipalities.
14. Provincial legislation should be permissive in
character and allow municipalities the right to
operate within clear and understandable limitations.
15. We should minimize jointly funded or administered
programs and if possible eliminate them.
16. The province must undertake services that are not
reasonably the role of the local government.
THE A.
C. E, CONCEPT
17.
18.
19.
No municipality should be required to subsidize
another through pooled assessment or other taxation
measures without their consent.
The Province must accept its responsibilities as a
municipal taxpayer and eliminate the grant in lieu
policies that prevent the province from paying its
fair share of municipal tax.
The Province must allow municipalities the right to
develop new sources of revenue or negotiate for a
share of provincial tax revenues.
20. The administration and curriculum of the education
system would be undertaken at the provincial level.
21. The Province must provide funding for the
education system from its progressive income tax
system not through the regressive property tax.
22. Local municipalities must administer the education
system as an agent of the province and funded by
grants for administration.
23. A system of direct democracy should be established
to allow the electorate an opportunity to override or
veto actions of their councils.
24. Binding plebiscites must be allowed to facilitate
direct democracy. Limitations must be set by
legislation or by-law.
CITY OF NORTH YORK
CITY CLERKS DEPARTMENT
R E P O R T
July 10, 1995
TO: Mayor and Members of Council
FROM: Wanda Liczyk
Commissioner of Finance and Treasurer
Gayla McDonald
Deputy City Clerk
RE:
GTA - DO I T RI GHT, DO I T Now
A VI SI ON OF THE FUTURE OF THE GREATER TORONTO AREA
In April of this year, Council adopted Mayor Lastmans motion referring this matter to the
Committee of Department Heads. The task was to develop a vision statement for
Councils consideration that would form our submission to the Golden Task Force and
recommend changes for governance in the GTA.
We have worked with a sub-committee of department heads; Josephine Bryant, Chief
Executive Officer, North York Public Library, Paula Dill, Commissioner of Planning; George
Dixon, City Solicitor; Joe Halstead, Commissioner of Parks and Recreation; Al Speed, Fire
Chief and Barbara Yaffe, Medical Officer of Health. This group has worked together over
the past two months to develop the report you see before you today.
We would also like to thank all the other department heads who worked with us and
whose input has been invaluable in developing our final submission. Special thanks as
well to Alan Slobodsky of Mayor Lastmans office who undertook a large portion of the
research work involved.
Our group does not purport to have all the answers. What we have prepared forms a
framework for change and a basic statement of philosophy and principles. We believe
we have developed a good jumping off point.
You should be aware that, in the case of other municipalities, the numbers we have used
have been gleaned from available budget documents, containing little detailed information.
We are therefore, unable at this time, to talk in terms of definite numbers or potential cost
savings.
EXTRACT FROM THE MINUTES OF THE MEETING OF
NORTH YORK COUNCIL HELD ON
JULY 12, 1995
300. METROPOLITAN GOVERNMENT - STREAMLINING. (GB38)
In considering this matter, Council had before it the following:
Joint report (July 10, 1995) from the Commissioner of Finance and
Treasurer and the Deputy City Clerk; and
Extract from the minutes of the meeting of North York Council held on April
12, 1995.
It was moved by Mayor Lastman, seconded by Councillor Feldman, that the
recommendations as contained in the joint report (July 10, 1995) from the
Commissioner of Commissioner of Finance and Treasurer and the Deputy City
Clerk, be adopted; and that:
a) the document attached to the joint report (July 10, 1995) from the
Commissioner of Finance and Treasurer and the Deputy City Clerk, be
adopted as Councils framework for further development and discussion;
b) the joint report (July 10, 1995) from the Commissioner of Finance and
Treasurer and the Deputy City Clerk, be submitted to the Golden Task
Force as North Yorks preliminary submission on the issue of governance
in the GTA;
c) the joint report (July 10, 1995) from the Commissioner of Finance and
Treasurer and the Deputy City Clerk, be forwarded to:
1. the Premier of Ontario and the Minister of Municipal Affairs for their
information and consideration; and
2. COMLAC (Committee of Metro Local Area Councils) to work with the
municipalities to develop a consensus position wherever possible;
and
3. all area municipalities within the proposed Greater Municipal
Federation;
d) Mayor Lastman be requested to meet with the appropriate North York
MPPs to put forward North Yorks position in this matter.
It was moved in amendment by Councillor Shiner, seconded by Councillor
Sutherland, that the Mayors and interested Councillors from the proposed Greater
Municipal Federation be invited to the City of North York for a presentation of the
subject document.
A recorded vote on the amendment moved by Councillor Shiner, seconded by
Councillor Sutherland, to invite the Mayors and interested Councillors from the
proposed Greater Municipal Federation to North York for a presentation, was as
follows:
FOR: Severino, Li Preti, Di Giorgio, Rizzo, Berger, Feldman, Lastman, Flint,
Yuill, Filion, Minnan-Wong, Shiner, Sutherland
AGAINST: NIL
ABSENT: Summers
Carried
- 2 -
Council approved a request from Councillor Filion that for the purpose of voting,
the matter of direct election be voted on separately.
A recorded vote on the recommendation that there be no direct election to the
Greater Municipal Federation, was as follows:
FOR: Berger, Feldman, Lastman, Flint, Yuill, Minnan-Wong, Shiner,
Sutherland
AGAINST: Severino, Li Preti, Di Giorgio, Rizzo, Filion
ABSENT: Summers
Carried
A recorded vote on the main motion moved by Mayor Lastman, seconded by
Councillor Feldman, as amended, was as follows:
FOR: Severino, Di Giorgio, Berger, Feldman, Lastman, Flint, Yuill, Filion,
Minnan-Wong, Shiner
j
Sutherland
AGAINST: Li Preti, Rizzo
ABSENT: Summers
Carried
Do It Right, Do It Now
Do It Right, Do It Now
Introduction
Maps
1
2
3
4
5
5
6
7
8
8
9
9
10
11
12
13
Background
Highlights
Our Vision
Principles
Greater Municipal Federation
Who Is Included?
What It Would Do
What It Would Not Do
Policing
Attractions
Licencing
Metro Reference Library
Special Purpose Bodies
The Provincial Role
Division of Responsibilities
Taxation Reform & Revenue Sharing
H
alf a century ago our provincial and civic leaders rose to the
challenge of creating a system of municipal government that
resulted in a vibrant and prosperous metropolitan region that is
the envy of the world. Today we need an equally bold vision to ensure our
continued vitality for the next fifty years.
By the late 1940s the growth of Toronto had stabilized, while
development in the suburban regions, such as North York, was explosive,
unprecedented and unstoppable. The demand for schools, roads, water and
sewers overwhelmed our financial ability to provide them; and there arose
a pressing need to co-ordinate common services throughout the wider area,
such as public transit and policing.
Now the growth of Metropolitan Toronto has stabilized, while the
regions surrounding Metro, from Oakville to Oshawa, are expected to
continue growing until the population of the Greater Toronto Area (GTA)
exceeds six million by the year 2015.
The challenge today is not unlike it was more than four decades ago
-- to find a system of governance that accommodates growth outside of the
core without encouraging sprawl, that co-ordinates common services over a
wider area, that is accountable to and understandable by the taxpayer, and
that is efficient and affordable.
North York Council, long a critic of the present system within and
surrounding Metro Toronto, welcomes the prospect of change. In the
following pages we present our vision of the future and we urge all citizens
to take part in the debate to ensure that whatever reform is imposed by the
provincial government is adequate to the task and in the interests of North
York.
he newly-elected provincial government has asked the Golden Task
Force to report earlier than expected, so that changes within the
GTA might be initiated well before the next municipal elections.
The last formal review of Metropolitan Toronto took place almost
two decades ago. Dramatic economic and demographic changes have
occurred since then, resulting in inequity, inefficiency, waste, duplication,
diminished accountability, and increased public confusion.
Successive provincial governments have failed to remedy unfair
levels of business and residential property taxation within Metro or among
adjacent regions. The arbitrary creation of non-elected special purpose
bodies to address regional issues has eroded the publics ability to
understand who is responsible for individual local services.
The Metro level of government has outlived its usefulness. Today
Metro is too small to solve problems that affect the GTA and too large to
provide cost-effective or flexible neighbourhood services. Direct election
to Metro Council, initiated in 1988, has been a disappointment, resulting
in turf wars, not responsive government.
North York has been providing high-quality services to its residents
since 1922 and is firmly of the view that local municipal government is best
suited to provide services, is most responsive to residents needs, and is the
only level of government with the ability to resist tax increases and debt.
Our recommendations for change, therefore, grow out of almost 75
years of experience and are rooted in the belief that new structures can be
devised to provide regional co-ordination while at the same time
strengthening local municipalities and guaranteeing residents superior
services that they can afford.
o
ur vision for good government within the GTA involves
strengthening the major urban municipalities, providing one-stop
government services at local city halls, eliminating all of the
existing regional governments and creating a single GTA-wide regional
body made up of representatives from the local councils.
We want to streamline government, cut costs and provide
convenience to the residents of the GTA.
The heart of our proposal is to strengthen local municipal
government, with the city halls of North York and the other urban centres
within the GTA serving as accessible points of service delivery for all levels
of government -- one stop for everything from birth certificates to
passports.
We want to eliminate existing regional governments, including
Metro, that are too small to address truly regional issues, and replace them
all with one 36-member body based on representation by population.
The role of the Greater Municipal Federation would not be to
provide services directly to citizens but to co-ordinate a limited number of
regional issues. It would be composed of elected members of the local
councils, a true federation of local municipalities. Because members would
not be elected directly, the federation would not be a separate, independent
level of government.
Most services now delivered directly to residents by regional
governments would be taken over by the local municipalities.
service centres
contain sprawl, protect agricultural land and green
space and encourage economic vitality
services
3
1. CUSTOMER SERVICE AND ONE-STOP SHOPPING
I
Local government should be the source of services to residents. We are
accessible, accountable, capable of responding to changing needs, and
keenly aware of the need to control costs. Taxpayers should be able to
obtain birth certificates, marriage licences, passports and any other
government documents at their local city hall, whether the services are
municipal, provincial or federal. There really is no reason why our
residents should have to go to several locations, some of them outside of
North York, for government services.
2. LOCAL GOVERNMENT IS THE CORNERSTONE
. seamless service delivery
. accessibility
. eliminate duplication
3. ENHANCE ECONOMIC VITALITY
B new boundaries
. contain growth in urbanized areas
B revitalize economy
. protect green space
4. ACCOUNTABILITY
. full accountability rests with local councils
. no direct election to the Greater Municipal Federation
. Greater Municipal Federation to manage not govern
4
Who Is Included?
The yet-to-be-named Greater Municipal Federation would include
all municipalities within the present GTA which have populations
exceeding 50,000. It would comprise an area of approximately 2,700 square
kilometres and have a population of 3.9 million.
Large urban centres include Ajax, Brampton, Burlington, Markham,
Mississauga, Oakville, Oshawa, Pickering, Richmond Hill, Vaughan,
Whitby, and the six Metro municipalities -- East York, Etobicoke, North
York, Scarborough, Toronto and York.
Local councils would appoint one or more of their own members to
represent local interests, on the basis of one representative for
municipalities between 50,000 and 200,000, plus one representative for
each 100,000 in additional population.
At this
federation:
time, the formula would result in the following 36-member
What It Would Do I
Local assessment would be pooled to provide high-quality services
throughout the region. Local municipalities would need to co-ordinate
action on issues that cross boundaries.
The Greater Municipal Federation could achieve these goals without
being a separate level of government; and therefore does not need to be
elected directly.
Specific functions to be carried out by the regional level:
. water treatment, sewers, pollution control
. garbage disposal
B public transit, expressways
. conservation and floodplain control
. economic development
. debenturing
The federation would be about the same size as the current Metro
Council. The chair would be appointed by the members, but should not be
a mayor. Representatives would be appointed for three years, but reviewed
annually by their local councils to ensure superior representation.
What It Would Not Do
I
Direct service to residents would be provided by local municipalities,
not the regional federation, whenever possible.
Local municipalities would take over regional parks within their
boundaries, including programs, operations and maintenance, just as they
already do for their own parks.
They would assume responsibility for constructing, maintaining and
plowing arterial roads that pass through their jurisdiction, just as they
already do for their own roads.
Recycling would be operated by the larger municipalities on behalf
of themselves and neighboring municipalities. North York already
recycles its own waste more cost effectively than Metro.
The co-ordination of major infrastructure and traffic signals would
be a joint effort by the local municipalities.
All planning, including official plan and zoning amendments, would
be determined by the local municipalities, just as they do now, without the
duplication of a regional planning process. The Ontario Municipal Board
would act as a mediator in the case of disputes.
Ambulance service would be merged with local fire departments to
provide a more co-ordinated response and improved response time.
Transfers of patients from hospital to hospital would become the
responsibility of hospitals.
Today the province pays 80% of the cost of community services, such
as welfare, day care, homes for the aged and hostels. Metro pays the rest --
an extremely large burden in providing for the needy of the region. We
believe the province should assume the full cost of community services,
with delivery contracted to the local municipalities.
I Policing
I
We would like to see a new police system throughout the GTA that
could be a model for the rest of the province. Our proposal is to have local
police personnel under a local chief responding to the local councils, not
appointed police services boards; but specialized support units and services
provided by the province.
This would require the province to become more involved in the
areas of setting standards, communications and technology; and the
provision of all the higher-level police services, such as an area-wide
emergency task force and major crime investigation unit. The roles of the
Ontario Provincial Police and the specialized support units would be
restructured to ensure there is no duplication.
At the local level, we see police personnel specializing in crime
prevention, community policing including emergency response, as well as
detective and traffic functions.
We believe a system along these lines would serve citizens better,
give local municipalities autonomy to set their own local policing priorities
and save money.
I Attractions
Metro presently oversees or operates cultural, recreational and
educational facilities that serve audiences far beyond the confines of Metro
Toronto. The Metro Zoo, the Canadian National Exhibition and the
OKeefe Centre are truly provincial attractions.
We would like to see these major facilities taken over by the
province, and operated as provincial attractions just like the Ontario
Science Centre and Ontario Place, or privatized. Consideration might be
given to offering the OKeefe Centre to the city of Toronto and the Guild
Inn to the city of Scarborough.
8
Licencing
The Metropolitan Licensing Commission currently licences a
myriad of businesses and trades. The entire subject warrants a full review
to eliminate duplication between provincial and municipal bodies and to
eliminate unnecessary regulation.
Where regulation is required, licencing authority should rest with
the local councils for businesses that operate from fixed locations (such as
adult entertainment parlours, bowling alleys, dry cleaners, movie theatres).
Those not carried on at fixed locations (such as plumbers, electricians,
drain repairers, chimney repairers, renovation contractors, driving schools
and the taxi industry) should be licenced on a wider geographic area.
Wider area regulation could be a function of the Greater Municipal
Federation or the province.
We would like to see licencing turned over to the local municipalities,
except those services such as taxis where careful consideration must be
given to consistent standards and protecting the economic value of existing
licences. A full review should be undertaken before such changes are
imposed.
Metro Reference Library
The Metro Reference Library was relinquished by the city of
Toronto in the 1960s to act as the main reference facility for the Metro
Toronto area. At that time local library systems were not fully developed.
Now that local library systems are mature, they provide this service
within their local municipalities. As a result, it makes sense to return the
Metro Reference Library to Toronto to act as its central branch.
Special Purpose Bodies
Citizens are constantly confused by the number of special purpose
bodies. Some are appointed by the province, making it difficult to hold
them accountable for their decisions or spending. Others are fully elected,
like hydro commissions and school boards, making it difficult to
understand who is responsible for local service delivery and taxation. For
instance, only 16 cents of every tax dollar levied in North York is required
by the city.
At North York, we have already integrated certain administrative
functions, such as the parking authority, library board and our performing
arts centre. We believe special purpose bodies should be eliminated to the
greatest extent possible, turning over management and operations to local
municipalities or the province.
10
T
he province should be in the business of setting uniform policies
and standards across the region and ensuring fair and equal
treatment in taxation and provincial transfer payments.
Whenever possible, the province should limit its role as a direct
service provider. It should establish the rules, provide financing where
appropriate, and leave the local municipalities to provide the services to
their residents.
We believe the province should also set its own house in order, with
a view to improving co-ordination among its more than 20 ministries. It
should also make an effort to consult with civic staff before imposing
legislation that affect municipalities.
Provincial legislation should be permissive, as it is in Alberta.
Today more than 100 provincial acts spell out what cities can do -- and if it
isnt spelled out we cant do it. North York firmly believes that major
urban municipalities across this province no longer need to be told how to
serve their taxpayers.
There are certain services we believe are not the responsibility of
local government:
. housing -- if the province chooses to stay in the business,
policy and funding for socially assisted housing should be
uniform across the province
B community services, particularly welfare -- funded by the
province but provided by the municipalities
. public health services -- funded by the province but
provided by the municipalities
11
I
I
I Division of Responsibilities
PROVINCE
. housi ng
. community services
GREATER MUNICIPAL FEDERATION
water treatment, sewers, pollution control
garbage disposal
public transit, expressways
conservation and floodplain control
economic development
debenturing
LOCAL MUNICIPALITIES
B
B
B
B
B
B
B
B
existing local services
local policing
regional parks within their jurisdiction
arterial roads within their jurisdiction
recycling
planning
ambulance service
public health (100% funded by the province)
T
he present property tax assessment system in the GTA is an
acknowledged mess.
We look forward to the up-coming recommendations of the Golden
Task Force with respect to reform of the assessment system. In the
meantime, North York endorses the following actions:
. assessment should continue to be pooled for those services
co-ordinated or integrated under the new Greater Municipal
Federation
. municipalities should strive to reduce or eliminate their
dependence on provincial grants, because they limit municipal
autonomy and prevent cities from setting their own priorities
. where grants are necessary, such as for education or public
health, they should be allocated equitably so that no member
of the federation is disadvantaged
. new sources of revenue should be made available to
municipalities, such as a share of the provincial sales tax,
lottery sales, hotel or gasoline taxes, so that the confusing
business occupancy tax can be eliminated
Property tax is the major source of funding for municipal
government. Yet it is stretched to the limit, is being called on to pay for
programs that are not related to property, and it is a regressive form of
taxation.
Do It Right, Do It Now
Wanda Liczyk
Commissioner of Finance and Treasurer
Gayla McDonald
Deputy City Clerk
TABLE OF CONTENTS
One Stop Shopping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Local Government is the Cornerstone . . . . . . . . . . . . . . . . . . . 4
The New Boundaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Managing Within the New Boundaries . . . . . . . . . . . . .......10
Special Purpose Bodies . . . . . . . . . . . . . . . . . . . . . . . .......16
Parks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .18
Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .21
Planning/Transportation/Infrastructure . . . . . . . . . . . .......24
Ambulance - Emergency Response . . . . . . . . . . . . . . . . . . . . ..28
Police . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .34
Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
- 1 -
Customer service is our focus. Service delivery should be at the
level closest to the people wherever possible. In most cases this
means at the local level.
Residents should be able to access a multitude of government
services at their City Hall.
.
Marriage Licences, Birth Certificates
Government Forms for Passports and Other Documents
Business Licences
Right now many similar services are spread across numerous
locations.
- 2 -
For example, birth certificates can only be obtained in person at one
location in downtown Toronto. The alternative is to write away to
Thunder Bay and wait 6 weeks. Long line ups force people to wait
hours to receive service. Yet every City Hall issues other provincial
documents such as marriage licences and some lottery licences. It
would be a simple matter, with todays technology for local
municipalities to issue all these documents.
Much confusion is caused by two bodies delivering similar services.
A good example of this is Earl Bales Park in North York. Although
it is a Metro park, a portion of the park itself, the community
centre and the ski hill are operated and maintained by North York.
Another large portion is operated and maintained by the Metro
Parks Department. This is very confusing to residents. Who do
they call when they have a problem?
Arterial roads are another example. If you live in a home on York
Mills Road, you may have no idea that your home is on a Metro-
owned road. Metro clears the snow but North York clears the
sidewalks. You may have a very different standard of service from
your neighbors a block away whose home is on a North York-
owned local road.
- 3 -
Under our proposal, all these services would be delivered locally to
provide coordinated one-stop shopping for taxpayers.
- 4 -
.
People identify with their communities - the towns and cities where
they live. They expect the body that provides and governs the
services and programs which affect them to be close and accessible to
them.
It is important for residents to know where to go when they have a
problem. It doesnt matter to them that a service is provided locally
or regionally. They want to look to the body closest to them - their
City Hall - to solve their problem or as a forum to voice their
concerns.
The regional level was never envisaged to act as or to replace City
Hall. It was first established to provide coordinated services to local
municipalities for those things that crossed municipal boundaries
like transit, police, garbage disposal, water treatment and major
infrastructure. It was governed by representatives from local
councils who worked together to ensure that services were delivered
as fairly and cost effectively as possible. It acted as a mechanism to
pool tax dollars to share the cost of these services.
- 5 -
The representatives, who also sat on the local Councils, were able to
reflect the viewpoint of their municipalities. Regional governments
provided a seamless service to taxpayers in that they were able to
deal with both local and regional issues on behalf of the taxpayers
who elected them.
With the onset of direct election in 1988, the ability for local
municipalities to provide this seamless service was lost. Now, with a
separate set of directly-elected politicians who no longer sit on the
local Council, taxpayers have two very distinct bodies to deal with.
They are faced with jurisdictional problems that did not previously
exist. With the stroke of a pen, another level of government was
created.
The role of local government must be strengthened. It should be
once again empowered to provide seamless service to its taxpayers.
That doesnt mean we dont need some things coordinated across the
region - we do. Things like transit and water treatment and garbage
disposal still need to be shared among us. But we believe that if the
regional level is truly doing its job, no one should know it exists. It
should simply act as an arm of the local municipality to once again
provide fair and cost effective service to the taxpayers.
- 6 -
Local councils have a proven track record as efficient managers of
tax dollars. They are close enough to recognize the needs of the
communities they service . Local government is small enough to
have the flexibility to adjust priorities to suit the demand. It can
respond to the uniqueness of its population in a manner no
enormous, region-wide bureaucracy ever could.
We believe the Province needs to recognize the capabilities of local
municipalities to self-govern. While the provincial government is
well suited to provide broad policy direction and clear funding
formulas across the region, it must provide new legislation to permit
municipalities to have autonomy over how programs and services
are administered. We welcome the opportunity to work closely with
the Province to develop new legislation in accordance with any new
framework.
- 7 -
,
In their reports, Metropolitan Toronto and the City of Mississauga
have presumed that the existing five regions should be rolled into
one large region. We are suggesting a slightly different approach.
In our proposal the boundaries include only the truly urban
portions of the existing regions.
These are: Burlington, Oakville,
Mississauga, Brampton, Vaughan, Markham, Richmond Hill,
Pickering, Ajax, Whitby and Oshawa as well as the six Metro
municipalities -- for a total of 17 municipalities forming the new
region.
The reason is this. We believe that a number of objectives should
govern the future growth of the region:
B
B
B
contain future growth to within the already urbanized
region
confine the provision of future infrastructure within a
manageable area
protect green space and agricultural lands
- 8 -
Regionalism encourages sprawl. It pools assessment dollars to fund
major infrastructure anywhere within its boundaries. This funding
ability accounts for much of the growth to date in the GTA. Where
land was cheap, development occurred. Infrastructure was built to
support the development. Cheaper land, lower rents and taxes
lured businesses away from the core resulting in decline and slowing
recovery. The Metropolitan Toronto Area is suffering from the
slowest economic recovery of any city or region in Canada.
If we truly want to see the new region flourish, growth must be
encouraged within sensibly defined boundaries. We believe that by
drawing a line around the already urbanized areas of the region and
helping growth
It is interesting
to occur there, economic regeneration will result.
to note that our boundary proposal encompasses
2,668 sq. km. of the existing five regions.
slightly more than one third of the entire
930/o, 3.9 million people, live in the region
This represents only
7,059 sq. km. area. Over
we are proposing. This
demonstrates that we have identified the truly urbanized areas and
also the vast amount of rural or undeveloped land that can be
protected by the proposed boundaries.
- 9 -
We recognize that further study must be given to future structure
for those more rural municipalities not included within the new
boundaries. We have not examined whether regional services could
continue to be sustained by this second region on its own. It may
necessitate including these smaller towns within the county
frameworks that abut them to the north.
-10-
The basis of our proposal embraces the elimination of a level of
government. We feel that the coordination of region-wide services
is an extension of local services and therefore does not require
directly-elected politicians. A coordinating body would exist to
service the local municipalities for those functions that require cross
boundary cooperation. All other services would be provided by the
local level. The role of the
manage not to govern.
coordinating body would be to
We have considered the proposal of Metropolitan Toronto
suggesting the regional level be directly-elected. We can find no
persuasive reason why. Only Metro Council has full-time, directly-
elected councillors. In the other four regions, regional councillors
sit on the local Council as well.
- 1 1 -
The experience in the Metropolitan area has not been a positive one.
In an effort to remain close to their constituency, the new, full-time
Metro politicians involved themselves in local issues resulting in
unnecessary and costly turf wars with their local counterparts.
Frustrated with Metros failure to fairly reflect the local perspective,
the local municipalities in Metro finally resorted to establishing a
committee of local area councillors to develop common positions on
important issues. It was through the efforts of this committee
(COMLAC) and the Metro Mayors that the issue of governance was
finally brought to a head in the Metropolitan Toronto area.
As budgets grew and taxes continued to rise, the public initial
apathy grew to anger with the perception of duplication and waste.
The City of Toronto held a referendum during the last municipal
election, asking its voters if they favoured the elimination of the
Metro level of government.
61% of City of Toronto voters said
yes We believe that in North York that number would have
been even higher.
- 12-
The make-up of the existing regional Councils and their direct
support staff is as follows:
Metro 34 No 68
Toronto
Durham
I
32
I
Yes
I
3
York
I
20
I
Yes
I
o
Peel
I
24
I
Yes
I
o
Halton
I
21
I
Yes
I
o
This totals 131 politicians elected specifically to deal with regional
issues along with 71 direct. support staff. Our proposal would have
regional functions coordinated by existing local politicians and
should require no further support staff.
-13-
The City of Mississauga, in its report, proposes that the
coordinating body be governed by the Mayors of the GTA. We do
not support this position. Representation by population is our
.
preference as the fairest means to manage the new region. Our
proposal is as follows:
Population
# of Repesentatives
50,000-199,999 1
200,000-299,999 2
300,000-399,999 3
400,000-499,999 4
500,000-599,999 5
600,000-699,999 6
-14-
This would provide for a 36 member committee - similar in size to
the present Metro Council.
Using the 1991 Census data, the
representation would be as follows:
.
Municipality
Burlington
Oakville
Mississauga
Brampton
Etobicoke
York
East York
Toronto
North York
Scarborough
Vaughan
Markham
Richmond Hill
Pickering
Ajax
Whitby
Oshawa
Population
129,575
114,670
463,388
234,445
309,993
140,525
102,696
635,395
562,564
524,598
111,359
153,811
80,142
68,631
57,350
61,281
129,344
# of Representatives
1
1
4
2
3
1
1
6
5
5
1
1
1
1
1
1
1
-15-
We recommend that these representatives be appointed by each local
Council and that the Chair be appointed by the federation from its
own membership but should not be a mayor. The term would be
for three years but could be reviewed annually by each Council to
ensure the best possible representation.
-16-
CURRENT PROBLEMS:
.
Too many and not accountable to councils. Taxpayers are
constantly confused, frustrated and disappointed that education,
hydro commissions and Metro, are not under the direct control of
the local Council.
A Special Purpose Body is...
a separately elected/appointed board or commission that operates
independently of the municipality. Such body if it reports to the
municipality, does so for budget and/or legislative requirements but
the-municipality may/may not have a say in budget or operational
matters.
Integration works. Consider in North York, the Parking Authority,
the North York Public Library and the North York Performing
Arts Centre voluntarily have the Citys administration fulfil the
major administrative functions for these separate boards/authorities.
-17-
-18-
CURRENT PROBLEMS:
,
There is public confusion over why one park has two governmen
bodies with jurisdiction, e.g. Earl Bales Park.
There are differing maintenance standards in parks. Grass cutting
functions, done at a local level for large and small parks, are
duplicated at the Metro level.
Recreation programming units, done at the local level at a variety of
facilities, are duplicated at the Metro level.
Community groups applying for North York grants also have to
apply to Metro for grants - this duplicates the process in place at the
local level.
-19-
RATIONALE:
To the taxpayer, this proposal
red-tape in the administration
eliminates confusion and government
of parkland maintenance and
recreation activities. One accessible level of government will be
responsible for the same types of activities. Services are for the
direct benefit of taxpayers and should be delivered as close to the
taxpayer as possible.
The new additional responsibilities for parkland and facilities can
be efficiently integrated within the existing local structures.
-20-
To our community groups, the rationalization of grant
administration will eliminate duplication of functions for grant
programs.
.
-21-
CURRENT PROBLEMS: .
.
Taxpayers are confused and perceive duplication in government
when told that certain roads are local and others are Metro roads.
Taxpayers get different levels of service - snowclearing, sand and
salting, windrow clearing, streetcleaning depending on what road
they live on resulting in significant complaints to the local
councillors. Complaints are received about poor service resulting
from red-tape and bureaucratic run-around as taxpayers get
routed from one government to another.
Local municipalities already provide a majority of services on
Metro roads. The taxpayers are further confused when they see
the local municipality takes care of sidewalk clearing and cleaning,
streetlighting, bus shelters and boulevard permitting but not snow
clearing and road maintenance.
-22-
RATIONALE:
Road systems between municipalities in the current Metro
boundaries are mature with normal maintenance and reconstruction
required. Most work is contracted out in sections similar to local
practices.
Local municipalities already do the work on the local roads. In
North York, we take care of a 1150 km network of roads. Metro
takes care of 740 km for all of the Metropolitan
roads were transferred to North York, only 212
added to our present workload.
area. If the Metro
km more would be
Coordination of different utilities (gas, hydro, water) will be
simplified with only one government body responsible for road
work.
Taxpayers will be able to call one level of government with
complaints and get them resolved quickly.
Uniform standards can be set by the Province and then be
coordinated between officials of local area municipalities.
-23-
Road design and land use planning can be coordinated easier when
one level of government is involved.
- 24-
CURRENT PROBLEMS:
.
There is a duplication with local municipalities initiatives
particularly in research and policy analysis,
urban design and capital planning.
development approval,
There is a duplication of Metro environment programmed with the
Metro Toronto Conservation Authority and the Ministry of Natural
Resources.
Disagreements, delay and confusion occur between Metro and local
municipalities in the area of site plan approvals on Metro roads.
Public meetings that are now required at the Metro level for
subdivision and condominium approvals which are clearly
community oriented lengthen the development process by holding
meetings after development decisions have already been made.
-25-
RATIONALE:
Lands along arterial roads are the most intensely developed, are the
redevelopment areas for future growth and are the service areas for
adjoining industrial or residential neighbourhoods. Consolidating
all planning approvals at the local level, which has long experience
at public participation, would allow better decision making and
implementation.
Since it is proposed that local municipalities assume responsibility
for arterial roads, site plan authority at the GMF level should be
eliminated.
-26-
Urban design relates most directly to actual developments (site plan
approval) and development regulations and control (zoning,
condominiums, plans of subdivision) and this should be at a local
level.
Subdivision and condominium approvals are largely technical
exercises ensuring that all requirements of the Planning and
Condominium Acts are fulfilled. With the addition in the new
Planning Act of public meeting requirements, these activities make
most sense
with other
familiarity
processes.
consolidated at the local level where they can be linked
related approvals and where there is expertise and
in running public meetings and other consultative
Road allowance control - the same services are provided by local
public works and transportation departments requiring several levels
of approval. Duplication will be eliminated with local responsibility
only.
Corridor traffic control and traffic management - in some instances,
traffic control measures on arterial roads are implemented without
regard for their impact on adjacent local streets and
neighbourhoods.
Accident
program
exists.
-27-
data collection and analysis as well as the traffic count
at the local level would avoid duplication that currently
Local governments are capable of ensuring conformity with
regional interests, policies and standards if they are explicitly
stated in an Official Plan.
There is a need for regional scale planning, particularly for trunk
and regional hard services such as transit, major expressways, sewage
treatment, piped water, watercourses and similar features.
-28-
CURRENT PROBLEMS:
.
Ambulance response times for medical emergencies are not as good
as local fire departments. Yet, only ambulance crews have the
equipment, vehicle and personnel to effectively administer
emergency medical treatment.
Average Road Response
Ambulance -
North York Fire -
The public and other regional
high administrative costs with
as fire and ambulance.
6-7 minutes
4 minutes
governments perceive that there are
emergency response departments such
The public perceives a duplication in communications
functions between ambulance and fire departments.
and dispatch
-29-
RATIONALE:
Emergency response services at a local level will be designed to meet
the needs of the local community, established by the local Council
in accordance with the local tax base.
-30-
The taxpayers primary expectation with ambulance services is fast
emergency response. Based on an example month (October 1994),
an ambulance in North York only arrived first at an emergency
medical call 0.8% of the time. Firefighting personnel usually
arriving first (56.770) cannot provide emergency treatment nor
transport taxpayers to the hospital and must stand by waiting for
the ambulance. Although during the day there are more available
ambulances, many of these ambulances are providing non-emergency
transport services - taking taxpayers from one hospital to another,
from a hospital to another destination - and are therefore not
available for emergency purposes. By separating out these two very
different functions (transport and emergency response), effective
services can be delivered to the taxpayer. The Province can establish
a provincially run or privatized transportation function. Current
municipal grants to Metro could be kept by the Province to fund
the new transport service. The current Provincially run ambulance
services outside the Metro area can also be transferred to the local
municipalities.
This model (separating out emergency response from hospital
transport) is consistent with how other major cities like Phoenix,
Indianapolis, San Antonio and Boston are providing these services.
-31-
Response times for ambulances will be improved by limiting
municipal responsibility to emergency response and by placing
ambulance vehicles in fire stations. Currently in North York, 4
ambulances are already located in fire stations. If one ambulance was
located to cover the area of two fire stations (daytime and evening),
an effective 24 hour service to the community would be provided.
The City of Calgary has implemented this model for its ambulance
service. It is proposed that a total of 10 ambulance locations and 2
paramedic locations would adequately cover the needs of North
York taxpayers.
Since Metro was formed in 1954, the ambulance service was made
up of ambulances owned by Metro, the Province and the private
sector. Almost 100% of the funding was provided by the Province.
In 1976, when the Metro ambulance service was created, 70/0 of
funding was provided by the Province. At present, the Metro
ambulance service only has 48% of funding provided by the
Province. The Province currently pays almost 100% of other
regions ambulance services. Its time for action today to prepare
for the expected impacts of the Federal budget in the health area.
The latest Federal budget targets cuts to the National Health
programme and ambulance costs are mentioned as one benefit to be
borne by the user or by the municipality.
-32-
In reviewing the available preliminary 1995 Metro budget
information, the following demonstrates the administrative staffing
for both Metro Ambulance versus North York Fire.
Metro Ambulance - 19%
North York Fire - 6.4%
The administrative staff of each of the other area municipalities in
Metro is consistent with the above comparison. The total number
of administrative staff in each of the local municipalities does not
even come close to the number of current Metro ambulance
administrative staff. Integrating ambulance into fire departments
will mean lowering administrative staff across the existing Metro
area.
Within
are the
costs:
the administration percentages noted above, the following
communications/dispatch staffing as a percentage of total
Metro Ambulance - 10.4%
North York Fire - 2.6%
-33-
Again, it is obvious that the efficiencies in dispatch are at the local
level, and that the integration of ambulance into fire dispatch
systems will lead to savings.
.
-34-
CURRENT PROBLEMS:
.
The new decentralized organizational structure as outlined in the
recent Beyond 2000 report focuses on communities. There is no
accountability to local municipalities Councils and Mayors on
community issues. Local elected officials represent the smallest
number of taxpayers and know the community best, yet do not
have accountability links.
With a larger area of cooperation as proposed in this report, the size
of the police force would be huge -- almost 10,000 in strength. It is
difficult to imagine how an efficient and accessible police force can
be provided to the public while minimizing administrative costs.
The public perceives that there are not enough uniformed constables
in cars and on the street because administrative costs are too high.
Communications and other technology between the existing regions
could be better coordinated and integrated.
-35-
The taxpayer sees a duplication of functions between Metro Police,
the other regional police and the Ontario Provincial Police (e.g.
OPP response to 401 traffic accidents).
.
There are a multitude of Police Service Boards across the Province
that do not always reflect the wishes of the local community.
Parking enforcement on Metro roads varies from parking
enforcement on local roads. The taxpayer sees two different levels
of government and depending on what road the parking violation
occurs, the taxpayer needs to really pay close attention to who issued
the ticket. As a result, the taxpayer assumes that duplicate services
exist at each level of government.
- 36
OUR PROPOSAL:
Create local police services where local police divisions would report to
local Chief of Police. The Province would govern and/or oversee
specialized support units that require a larger operating size to be
efficient, e.g. training, technology,
detective support and
communications. The Province should also consider integration with
streamlining the OPP.
This proposed model is similar to the
Home Office" system successful:
employed in Great Britain for many years.
In the new defined urban area, eliminate the traffic response of OPP on
provincial highways.
e.g. an accident on the 401 at Bayview could and
should be handled by the local police service.
Create local boards or committees of Council where representation
s
similar to Library Boards - community and elected officials. The need
for Police Service Boards may be eliminated.
-37-
RATIONALE:
The recently adopted Beyond 2000 report of the Metro Police
outlines a plan to decentralize services and reallocate resources to
.
the front line in the Metro area. The goals are to create a structure
that will support neighborhood policing without jeopardizing
response to emergencies and investigative needs.
The Force must ensure that to the extent possible, front /ine policing
functions are fully staffed and are carried out at the divisiona/ /eve/.
Officers will be decentralized to divisions from areas of the Force where
they are not direct/y involved with, and accountable to, local
communities. (Beyond 2000- Page 37)
By establishing local community links, the Force will assure the public
that it is an integral part of the community, and will exercise powers and
spend money responsibly. This will lead to enhanced satisfaction with
police service. (Beyond 2000- Page 42)
The Beyond 2000 strategic p/an calls for a significant/y changed focus for
the delivery of policing services. Far from being simply reactive, engaging
in random patrols, and intervening in crises as they occur, the Force is
committed to adopting a focus on proactive, preventive initiatives, and on
the development of effective community patnerships. (Beyond 2000-
Page 45)
-38-
The Beyond 2000 report already supports community as a prime
focus of operations. What is still necessary is accountability to the
local municipality - the level of government that is most directly
associated with the community. Great steps have been taken to date
.
closing the loop is now necessary.
Why look at policing?
To implement the
necessary to build
new boundaries as proposed in this report, it is
upon the concepts of the Beyond 2000 report-- in
essence to go beyond Beyond 2000 and see how policing might
work best. Given that our principles suggest that services for the
taxpayer should be delivered by the level of government that is
closest to the taxpayer, and that local divisions in the Beyond 2000
report are to be community responsive and deliver a full service
from the division, it is felt that consideration be given to creating
local police forces and specialized support services. Separating out
local policing from specialized support operations is a model
successfully employed in London, England where the
provides the necessary administrative and operational
Home Office
support to
local police.
-39-
The Beyond 2000 report itself also suggests that certain functions
could be delivered across a broader area more efficiently and
recognizes that support services can and should be coordinated for
,
the benefit of local divisions.
While centralized policy will continue to guide response to emergency calls,
the local unit commander will establish priorities for the allocation of time and
resources to solve less urgent problems, ensuring that corporate response
standards are met. (Beyond 2000- Page 48)
Training is an example of a function which might be shared among the police
services of the Greater Toronto Area. (Beyond 2000- Page 102)
Sharing of resources or services is another option which can prove cost-
effective for the Force. For example, the Forces marine unit currently works
with the Coast Guard to provide services to Torontos waterfront. Similarly,
the Force is able to borrow aircraft from the OPP, the RCMP, the DND, and
others. (Beyond 2000- Page 101)
The plan puts the main focus of service on the front line officer in a decentralized
organization. Specialist and support units must facilitate the work of the front line
officer in emergency, short term and long term problem solving for public safety.
(Beyond 2000- Page 107)
In North York, there are 3 divisions located in the west, east and
central portions of the City. These divisions and their new
responsibilities would function like our parks districts, works yards
and fire stations -- where each carries out a full service delivery.
-40-
It is accepted that divisions will have different priorities in the selection of
local strategies depending on local needs and problems. Nevertheless, the
Task Force has concluded that each division should have a structure which
dedicates officers to fulfil each role: emergency response, short term or.
alternate response; and long term problem solving or community response.
This organization will require the unit commander to maintain service delivery
with a better balance of uniform platoon operations, community response
operations and detective operations, a Neighborhood liaison committee
comprising members of the community who assist the unit commander identify
policing problems and problems within their local areas; dedicated traffic services
organized to address local traffic problems; and, detective functions designed to
address police street level crime. (Beyond 2000- Page 708)
What is community/neighbourhood?
Neighbourhoods are defined as areas associated by geography in which
there exist concerns based on the area, mutual community concerns or
common interests shared by the people who live and/or work there.
They were identified using a set of criteria which include historic
neighborhoods, demographic considerations, levels of crime and
demand for service, existing police facilities and boundaries, geographic
barriers, municipal boundaries, and input from within and outside the
Force. (Beyond 2000 -Page 145)
It is interesting to note that local municipalities define communities
and neighborhoods in much the same manner.
-41-
Ability to respond and be consistent with the strategic directions of
the local municipality is another reason to localize policing. This
function of protecting persons and property significantly adds to the
fabric of the municipality. Meaningful strategic planning requires
integration of this critical function with other municipal services
involved with persons and property. The City of London, Ontario,
population 315,000, has its Police Force reporting directly to the
local Council and actively involved with community issues.
On the issue of parking enforcement, The Beyond 2000 Task Force
sees that this function is best decentralized.
Centralized parking enforcement has been a controversial issue, and the
Task Force believes it is contrary to the philosophy of Neighbourhood
Policing. /fit is to remain centralized, there fen?, the parking enforcement
function must be accountable to local unit commanders in addressing local
community parking problems. (Beyond 2000- Page 190)
If parking enforcement becomes a local responsibility, existing local
parking authorities could streamline and eliminate duplication. To
the taxpayer, duplication would be eliminated.
The concept of creating local police may lead people to believe that
administrative costs would be increased. However, consider the
administrative staffing outlined in the Beyond 2000 report.
Certain
-42-
#Staff
% of Total Staff
Chiefs Staff 46 0.6
Executive Support 240 3.3
.
Administrative Support 627 8. 6
913 12.5
staff noted above could be decentralized to the local police
chiefs. Local municipalities can also integrate certain police
administrative functions with existing local administrative functions,
as well as maintaining clerical support for divisional administrative
functions.
-43-
Metro police are developing the technology to improve information
sharing and communications. This state-of-the-art system
implemented across the new GMF area would enhance policing
across the urban area thus ensuring that within the urban area that
crooks who dont recognize municipal boundaries would be caught
more efficiently. Other regional police forces currently have their
own systems that are not compatible or currently integrated.
Unlike fire and ambulance where an emergency call involves a
stationary person or property, an integrated communications system
across the new GMF area will be more efficient at tracking the
moving criminal. Likewise, 911 response handling by each region
today could be integrated for the benefit of the taxpayer. This is
particularly important with the growing number of cellular phones
that are used across current regional boundaries each with their own
911 functions.
-44-
If the existing Police Service Boards are eliminated and local
boards/committees of council are created to deal with local policing
issues (by definition, local police forces will have a local focus thus
.
fulfilling the Provinces interest in community policing), the
Province can also still exercise its interests through the centralized
support force or Home Office. Integration/duplication reduction
opportunities with the OPP exist for the Province under this
proposal.
An obvious area is traffic response on provincial highways - Yonge
Street (Highway 11) in York Region, the 401, etc.
- 45 -
Present Policing Structure Metro Toronto
Chief
Restructuring, Internal Affairs
Employee Assistance Plan
Legal Services,Trials Office
Staff: 46
3 Deputies
CAO Deputy
Deputy
Deputy
Field Administrative
Detective Operational
Executive
Command Support Support Support
Support
Staff: 4,576 Staff: 627 Staff: 516 Staff: 1,324
Staff: 240
I
- 46-
PAYING FOR GMF AND NEW LOCAL SERVICES
The redistribution of services as outlined in this report will result in
changes in the relative split on the property tax bill between the
local and federation (regional/Metro) share. Those services that
are simply a transfer between the former region and local
municipality will result in no tax increase to the taxpayer.
Because the scope of proposed service delivery functions that would
be delivered on an coordinated/integrated basis by the new
federation would be reduced, the current regional portion of the
tax bill to pay for these GMF services would be reduced. The
current method of pooling assessed values across a broad area can
be maintained. Alternatively, an equalized assessment system could
be implemented where the 15% residential/commercial differential is
eliminated in the calculation. An equalized assessment system
would gross up the assessed values of each municipality by an
equalization factor, then combine/pool quasi-market values of each
municipality for the purposes of paying for these GMF services.
-47-
It is recognized that certain services we are recommending be
delivered locally will mean higher net taxes for certain
municipalities. For example, ambulance services outside Metro are
currently paid by the Province through the Ministry of Health. We
are recommending they redelivered and paid for by the local
municipalities.
It is obvious that the Province is under tremendous financial
pressure and, as a result, will likely transfer funding of ambulances
to the municipal sector in the near future anyway.
If the Province chooses to continue paying for certain
as ambulance and public health, it should do so on an
for each local municipality in the federation.
services such
equal basis
Where a local municipality cannot afford to
we recommend be new local responsibilities,
given to several different forms of funding.
pay for the services that
consideration can be
-48-
Larger municipalities can contract certain services to other
municipalities who dont have the infrastructure or resources to
deliver desired levels of service. For example, the larger Cleveland
Public Library contracts out cataloging, database management and
computer support to smaller municipalities and counties
surrounding Cleveland. The advantage of this approach is that
these smaller centres get a level of service they couldnt provide
themselves without a huge investment and, for the larger centre
providing the service, there is an incoming revenue to further
enhance and develop their service and infrastructure.
This kind of model could apply to many other service areas. In the
example of a park extending over two or more municipalities, it
would be more cost effective and efficient administratively to have
one municipality provide the service maintenance and charge back
proportionate costs to the other parties in a cost sharing
arrangement.
Intermunicipal agreement and
The Metro local municipalities
-49-
cooperation is already taking place.
are participating in a cooperative
purchasing process for certain commodities. The book borrowing
policy between libraries of the Metro local municipalities is another
great example of inter-municipal facilitation for the benefit of the
taxpayer.
Consideration can also be
across the new federation
the local school boards in
would submit its funding
given to funding these new local services
area in a manner that is similar to how
Metro are funded - each municipality
requirement for the particular service and
the federation would pool the assessment base of the new urban area
for funding all the local needs. As much as possible, however, the
for
eds
-50-
TAX REFORM
Taxes are higher in the Metro local municipalities than in the other
surrounding regions which has resulted in a steady decline in the
assessment base in the Metro area. For example, businesses of
similar sizes pay different taxes on either side of Steeles Avenue.
Real estate brokers and economic development officers find that the
issue of taxes is the foremost perceived problem that outweighs the
benefits of locating in Metro. Metro and its area municipalities
have been perceived as fat cat spenders - providing higher levels of
service than other municipalities and Metro and its area
municipalities have also been perceived to be not as efficient as other
municipalities.
A Metro staff report in May 1994 analyzed the nature of the tax
difference in North York against certain cities in the surrounding
regions. The factors causing the differences are:
.
current provincial grants and funding formulas are not
equitable across the GTA in the areas of transit, ambulance,
public health and education
-51-
.
municipalities are partly paying (20%) from the property tax (a
regressive form of tax) for programs like welfare, homes for
the aged, hostels and daycare that have income redistributive
effects. When one area like Metro has more volume in welfare
caseloads than others, municipal costs on the property tax are
higher even though the funding formula is the same.
.
other factors - the property tax assessment system, capital
financing, and differences in area municipalities expenditures,
ie. higher service levels. Every municipality in the new urban
area uses a different base with the current assessment system.
For property taxes, some municipalities residents pay less than
businesses and some municipalities residents pay close to what
businesses pay. On top of this, the business occupancy tax
(business tax) is archaic, confusing and not perceived as fair to
business.
.
unique factors - services such as MTCVA, Metro Zoo,
Exhibition Place, OKeefe Centre, Grants, and the Metro
Reference Library - service a wider area of taxpayers than
Metro because of their uniqueness. At present, Metro is the
only region that pays for ambulance services. The province
pays the full cost in all other regions.
-52-
Lets look at how North York taxes fare against the City of
Markham. The Metro staff report identified that on average North
Yorks taxes are $2.40/ sq. ft. more than Markhams. Heres the
amount (in percentage terms) of the difference in commercial taxes
per square foot by each contributing factor.
NORTH YORK VS MARKHAM
VARIATION
IN COMMERCIAL TAXATION
Other Factors
13.8%
Unique Services
ransfers
Volume of Service
42.3%
fers
25.2%
Source: Metro CAO May2, 1994 Report Graph 2
(Note: The percentages against cities in other regions differs from
the above.)
-53-
How can the Province immediately help fix this tax differential?
1. Equalize Education Grant Transfers - because the education
portion of the property tax bill is so large, action on this item
is important. An equalizing of education transfers per pupil
across the Province will significantly eliminate about 25/0 of
the tax differential. Although there has been discussion on
the transfer of education costs to the income tax, it is widely
recognized that this would create an uncompetitive provincial
income tax.
2. Equalize Municipal Grant Transfers - given that transit,
ambulance and public health services are all provided to
taxpayer, it would make sense to equalize the Provincial
contribution to all taxpayers across the new urban area.
would eliminate about 7% of the tax differential.
the
This
-54-
3. The Province should pay 100% for income redistributive
programs such as welfare, homes for the aged, hostels and
daycare.
This would eliminate about 42 % of the tax ,
differential. Local municipalities can,
the Province,
be privatized.
These three actions
to deliver these services
of
or
course, contract
else the services
should be done in conjunction with an
with
can
exchange program where municipalities would pay 100/0 for
services currently paid for by the Province, e.g. ambulance, roads,
library services (conditional and unconditional grants) while the
Province would pay 100/0 for other services eg. welfare, daycare,
homes for the aged and public health. In light of future Provincial
expenditure pressures, the time is now to do this exchange.
Further, a plan should be developed to generally eliminate cost
shared programs altogether. The Province has historically been
unable to sustain paying its fair share of funding in such
relationships. A key objective in this
effect, i.e. grants lost in total across all
equal the new expenditures being paid
exercise is a neutral net
the municipalities would
for by the Province. If the
Province takes
tax differential
eliminated.
action on the above three items, about 75% of the
between North York and Markham would be
-55-
How can the other components of the tax differential be handled?
.
other factors (excluding the assessment system) are described
as capital financing policies and area municipalities
expenditures (i.e. higher and wider service levels). These are
deliberate decisions taken by the municipalities that are a
result of financial strategies and the needs and desires of local
communities. Residents are willing to pay for some cadillac
services. This would remain as the truly defensible tax
differentiation between municipalities.
.
Unique factors are about 12 % of the existing tax differential.
This report recommends the transfer of the funding and
responsibility for delivery of several of the unique factors to
either the Province or a local municipality.
- Ambulance - all local municipalities to pay with no
provincial grants
.
Exhibition Place - to be funded by the Province
.
Metro Zoo - to be funded by the Province
- OKeefe Centre - to be financed locally by the City of
Toronto/privatized by the City of Toronto
.
Metro Reference Library - to be financed locally by the City
of Toronto
-56-
When you look at the new funding sources, almost half of the above
services would be paid for by the Province and eliminated as a
problem.
.
Whats left?
The property tax system problem - or otherwise described as the
uneven property class tax burden under the assessment system.
Fixing this problem is the most difficult of all. Market value
appears to be the tried and true system for assessment across North
America. The ideal model for assessment reform across the new
GMF would see each local municipality with the same market value
assessment base for funding federation and education services.
Practically speaking, property tax reform of the kind needed would
require a phasing in over a number years.
-57-
What is the outcome?
On an individual basis, the implementation by the Province of
1evelling/equalizing grants will cause taxes to increase in the local
municipalities currently outside Metro; The Province paying for
welfare and other community services 100% will benefit Metro
municipalities more than other local municipalities; Fixing the tax
assessment system will cause taxes to increase for the resident in
Metro. If all the fixes were implemented at once, then there is an
opportunity for the entire fix to be implemented across the new
GMF in one fell swoop. Taxpayers
generally be impacted the same.
across the new GMF could
-58-
THE BUSINESS OCCUPANCY TAX
The business tax, as it is commonly called, with its varying rate
structure is perceived as confusing, archaic and unfair to the .
business community. It is also difficult for municipalities to collect.
It has not been a stable revenue source for municipalities.
NorthYork
C I T Y C L E R K S D E P A R T M E N T
5100 Yonge Street
North York, Ontario
M2N 5V7
September 27, 1995
Dr. Anne Golden,
Chair, GTA Task Force,
393 University Avenue
Suite 2001
Toronto, Ontario
M5G
Dear
RE:
2E5
Dr. Golden:
AMALGAMATION OF SCHOOL BOARDS.
RECEIVED
At its meeting held on September 20, 1995, Council gave consideration to the matter of
amalgamation of school boards.
The City of North York requests that the Province consider establishing a school board
as an adjunct to City government (possibly in a similar way to which the Public Library
Boards and Health Boards currently operate).
A copy of the extract relating to this matter is enclosed for your information.
Yours truly,
Denis Kelly
CITY CLERK
BL:ay
Encl.
EXTRACT FROM THE MINUTES OFTHE MEETING OF
NORTH YORK COUNCIL HELD ON
EPTEMBER 20.1995
334. Leave having been granted for the introduction of an additional item by Councillor
Sutherland, Council considered the following:
AMALGAMATION OF SCHOOL BOARDS. (GB42)
It was moved by Councillor Sutherland, seconded by Councillor Shiner, that:
WHEREAS there are currently nine school boards in Metropolitan Toronto;
AND WHEREAS considerable savings can be achieved by reducing the amount
of government administration at the local level;
AND WHEREAS the new Harris government has stated that its priority is to
emphasize classroom-based educational funding;
AND WHEREAS the Councillors of the City of North York could take on the
for School Board Trustee positions;
Part 1
THEREFORE BE IT RESOLVED that the appropriate City departments report on
the best approach to allow for the seamless merger of the City and PubIic School
Board administrative functions;
AND BE IT FURTHER RESOLVED that North York request that the Province
consider establishing a school board as an adjunct to City government (possibly
in a similar way to which the Public Library Boards and Health Boards currently
operate);
AND BE IT FURTHER RESOLVED that this resolution be forwarded to the
Provincial Minister of Municipal Affairs and Housing.
It was moved in amendment by Councillor Shiner, seconded by Councillor Li Preti,
that consideration be given to funding being provided to a school board, if it
becomes a board of the City, in the same manner as the Board of Health, i.e. 75%
provincial funding and 25% being funded from property taxes.
A recorded vote on the amendment moved by Councillor Shiner, seconded by
.
Councillor Li Preti, that in the event a school board becomes a board of the City
that consideration be given to the provision of 75% of the funding from the
Province and 25% from property taxes, was as follows:
FOR: Severino, Li Preti, Di Giorgio, Rizzo, Feldman, Lastman, Summers,
Filion, Minnan-Wong, Shiner, Sutherland
AGAINST: Flint, Yuill
ABSENT: Berger
The amendment moved by Councillor Shiner, seconded by Councillor Li Preti,
carried.
- 2 -
A recorded vote on Part 2 of the main motion moved by Councillor Sutherland,
seconded by Councillor Shiner, was as follows:
FOR: Severino, Li Preti, Feldman, Yuill, Minnan-Wong, Shiner, Sutherland
AGAINST: Di Giorgio, Rizzo, Flint, Summers, Filion,
ABSENT: Berger
Part 2 of the motion carried.
A recorded vote on Part 1 of the motion moved by Councillor Sutherland,
seconded by Councillor Shiner, was as follows:
FOR: Severino, Li Preti, Feldman, Lastman, Flint, Yuill, Minnan-Wong,
Shiner, Sutherland
AGAINST: Di Giorgio, Rizzo, Summers, Filion
ABSENT: Berger
Part 1 of the motion carried.
Part 3 of the motion carried.
The motion moved by Councillor Sutherland, seconded by Councillor Shiner,
carried, as amended.
Office of the Chair
6 October 1995
Anne Golden
Chair
Greater Toronto Area Task Force
393 University Avenue
20th Floor, Suite 2001
Toronto, Ontario
M5G 1E6
Further to our meeting, 19 September 1995, I am sending you copies of the North York
Board of Educations submission and the brief of the Metropolitan Toronto School Boards
to the Commission on Planning and Development Reform in Ontario which outlines a number
of concerns that we have around planning issues.
Please do not hesitate to contact me, at 395-8409, if I can provide any further assistance.
Yours truly,
Shelley Stillman
Chair
Ss:cs
BOARD OF
EDUCATION
SUBMISSION TO THE
COMMISSION ON PLANNING
AND DEVELOPMENT REFORM IN ONTARIO
1 June 1992
NORTH YORK BOARD OF EDUCATION
M2N 5N8
To the Chair and Members
COMMISSION ON PLANNING
AND DEVELOPMENT REFORM IN ONTARIO
I would like to thank the Commission for the opportunity to express the position of the North
York Board of Education with respect to the planning process in Ontario. We welcome the open
process and the forthright manner in which the members seek the opinions of the community
and the institutions which are vitally affected by the planning process.
The North York Board of Education has had an active and deliberate involvement in the
planning process for many years but particularly in the past ten years where our involvement
has extended considerably beyond that of simply commenting on our ability to accommodate
students. As one of the largest landowners in North York, we continue to be involved directly in
official plans, zoning regulations and site plan approval where it is in the interests of the
Board. Increasingly we find that our Boards interests are directly affected.
GOOD COMMUNITY DEVELOPMENT
To be clear we should remind the members that we are a form of government with elected
representatives, taxing authority and expropriation authority. We are given certain tools to
carry out our statutory responsibility. This is not only to provide education in a fiscally
responsible manner to the residents within our community, but also to ensure that our school
sites and other property assets maintain their utility and value.
The Board wishes to impress upon the Commission the fact that the neighbourhood and
community which functions well socially and economically is in the direct interest of the school
board. We have learned that the school and education in general are often the first to be
negatively impacted when communities suffer from social and economic adversity or when
extreme rapid growth forces us to deliver proper educational services much later than when
required. These difficulties are often reflected by the many problems which surface in the
neighborhood school. This could range from tensions within the school culture which are
exacerbated by economic and social difficulties at home to inadequate teaching facilities due to
overcrowding as we witness portable classrooms becoming almost permanent fixtures on school
sites.
In addition, it should be pointed out that our school buildings and yards provide a focus for
community and neighbourhood activity. After school hours our facilities are available for
community use ranging from recreational use of our gymnasiums and pools to meeting rooms for
community groups.
In essence we suggest that good planning and development provides the basis in a community or
neighbourhood for the provision and maintenance of schools and programs which provide
quality learning environments.
2
ROLE OF THE EDUCATIONAL AUTHORITY
It is considered that the vrevision of education a nd the schools in which they are provided
form an intcgral Dart of the fundamental infrastructure of a community. In addition, the non-
educational opportunities of a social and recreational nature which the boards facilities often
provide enhance the quality of living in the neighborhood and community. It is not uncommon
therefore, that decisions on where to purchase a home are made primarily on the basis of the
the neighbourhood school.
The Board is concerned that boards of education or schools are not specifically mentioned in the
Commissions current initiatives notwithstanding the vital educational, social, and community
role which our schools play in the fabric of the local neighbourhood and the City as a whole.
THE ISSUE FOR EDUCATION
If the objective is to transfer greater decision making authority to the local municipalities we
are concerned that the new proposals do not give school boards solid safeguards at the
provincial level (Planning Act, Education Act etc.) against unwarranted local planning
initiatives which would adversely impact not only the school boards operational flexibility
but also negatively affect the utility and value of their school sites.
Without appropriate safeguards in provincial legislation or in local planning policies and
regulations our Board will find it increasing difficult to carry out its statutory educational and
fiscal responsibilities. It is our opinion that if the Commission continues to pursue its current
direction school boards would be affected in the following areas:
a).
b).
c).
d).
e).
The relationship of development to the provision of education will vary
from municipality to municipality depending on the relationship of the
individual school board with the municipality.
The ability to use schools for school purposes maybe adversely affected by
official plans, zoning, and other regulations.
The utility and value of school properties could be adversely affected.
The ability to utilize or lease surplus school space for other purposes could
become difficult forcing school boards to maintain at great expense vacant
space rather than generate revenue to reduce the impact on the local
taxpayer.
Capital planning for school facilities could become burdensome, inefficient
and cause financial strain to school boards, the province and to taxpayers
due to planning policies and development approvals having no requirement
to synchronize development with existing and planned school facilities.
3
SCHOOL BOARDS OBJECTIVES
In conclusion, the North York Board of Education suggests that the Commission seriously
consider the following points:
1. Provincial Goals and Policies
2.
3.
4.
Provincial Goals and policies should be established to ensure that a school
boards mandate to ensure the delivery of quality education in a fiscally
responsible manner is not constrained by restrictive local planning policies,
Municipal Official Plans and Zoning Bylaws
Municipal planning should require meaningful consultation and official plans
should include planning policies which co-ordinate and allow development in
relation to the timely delivery of education. Planning policies should also
protect the value and utility of school sites, including the ability to lease out
surplus space for a reasonable range of uses.
Appeals
Boards of education should continue to maintain and possibly expand their
appeal powers when referring matters to the Ontario Municipal Board.
Fair Market Value
The Boards ability to obtain fair market value for permanently declared
surplus school sites should be ensured by provincial policy or legislation in
order not to be diminished by local official plans and zoning bylaws.
CONCLUSION
In conclusion it should be emphasized that sound planning, including the process which leads up
to it, is not only in our Boards interest but also in the the local communitvs and provinces
interest.
We will be subsequently submitting a more comprehensive submission elaborating in greater
detail how we believe our concerns can be met while being consistent with good community
planning.
May, 1992
BRIEF TO THE
COMMISSION ON PLANNING
AND DEVELOPMENT REFORM
IN ONTARIO
The Public School Boards in Metropolitan Toronto
1.
2 .
3 .
4 .
5 .
6 .
7 .
8.
BRIEF FROM THE METROPOLITAN TORONTO SCHOOL BOARD
ON BEHALF OF TEE EIGHT PUBLIC SCHOOL BOARDS
TO THE COMMISSION ON PLANNING AND DEVELOPMENT REFORM
IN ONTARIO
INDEX
Introduction
Mandate of the Commission
Summar y of Pr opos al s
P r e s e n t Le g a l Ob l i g a t i o n s o f t h e S c h o o l Bo a r d
Pr e s e nt Powe r s of t he Sc hool Boa r d
St a t e me nt of Pr obl e ms
( a ) Adequat e Si t es and Accommodat i on
(b) Need for Consultation and par t i ci pat i on
(c) Notice Provi si ons
Proposals for Change
(a) Legislative Changes
( b) Review of Official Plan -
Municipal Coordination and
Cooperation
(c) Provincial Policy Statement
Conclusion
APPENDIX
Considerations Regarding The Development Charges Act
- 1 -
1 . INTRODUCTION
The Metropol
itan Toronto School Board (the "School Board"
welcomes this opportunity to make known to the Commission its
concerns regarding the development process as it affects the
school Board and the seven public Area Boards of Education in
Metropolitan Toronto.
The public Area Boards within
Metropolitan Toronto include the East York Board of Education,
the Etobicoke Board of Education,
the North York Board of
Education, the Scarborough Board of Education, the Toronto
Board of Education,
the French Language
the City of York Board of Education and
School Council (the Area Boards).
This brief was developed in consultation with the Area Boards.
The brief sets out those general concerns common to the eight
public School Boards in Metropolitan
Toronto and makes
proposals for legislative changes which will enable the School
Board and the Area Boards to fulfill more effectively their
obligations with respect to the provision of
student
accommodation.
The School Board asks that the Commission give the Area Boards
the opportunity to be heard with respect to planning concerns
which are specific
to each Area Board.
Those particular
problems will demonstrate the application in practice in a
variety of different situations of the general principles
formulated in this brief.
MANDATE OF THE COMMISSION
The terms of reference of the Commission are set out in Order
in Council No. 1355/91.
The Commission was,
in part,
established to
inquire into, report
upon and make
recommendations on legislative change or other actions or
- 2 -
both, needed to restore confidence in the integrity of the
land use planning system. The Commission is to make
recommendations on improvements to the integrity, efficiency,
openness, accountability and goals of the land use planning
and development review process and on the protection of the
public interest in planning and land development.
SUMMARY OF PROPOSALS
Within these terms of reference, the School Board proposes for
the consideration of the Commission the following general
principles and legislative changes to the Planning Act, R.S.O.
1990 (the Planning Act) .
( a) The availability of educational facilities is an
important factor in good planning, just as the
availability of municipal services such as roads, water
and sewers are important factors. The Planning Act
should ensure that all approval authorities, in
considering development applications of a residential
nature, give consideration to the availability of school
sites and student accommodation as important criteria in
reviewing those applications.
(b) The extent of residential development
in urban areas often necessitates the
the addition to, existing schools.
a nd r e de ve l opme nt
renovation of, or
The costs arising
from such renovations and/or expansions cannot be covered
by existing funding sources. A mechanism must therefore
be provided under the Planning Act whereby the School
Board may raise school renovation and/or expansion funds
needed as a result of residential developments or
redevelopments. A requirement or charge similar to the
provisions with respect to parkland dedication under
- 3 -
Section 42 of the Planning Act, may be an appropriate
means by which to collect a school renovation and/or
expansion contribution on a comprehensive basis from all
residential development or redevelopment.
(c) Formal notice should be given to the Area Board and the
School Board of all proposed residential developments
which either by themselves or cumulatively impact upon
the Area Board's ability to fulfill its duty to provide
adequate student accommodation.
(d) In order to plan for adequate student accommodation, the
Area Boards require notification, throughout the
planning, construction and marketing stages of a
residential development, of any changes which may alter
the demographic makeup of the proposed population of the
development. For example, the Area Board must be
notified of any increase or decrease in the bedroom count
and of any change in occupancy from senior citizen or
adult lifestyle accommodation to family accommodation.
The use, by the municipality, of the Holding By-law
provisions of Section 36 of the Planning Act would, under
certain circumstances , be of assistance to the School
Board and the Area Boards in ensuring that demographic
factors which determine pupil yield have not changed
significantly prior to the removal of the "Holding
designation and the issuance of the building permit.
Present Legal Obligations of the School Board
Under the Municipality of Metropolitan Toronto Act (Section
155) , the School Board must endeavour to provide to all of the
Area Boards the funds necessary for student accommodation and
educational programs throughout Metropolitan Toronto.
- 4 -
Under the Education Act, the Area Boards have a duty to
determine the number and kind of schools to be established and
maintained in
accordance with policies and procedures
established by the Area Boards and the Minister of Education.
It is also the duty of each Area Board to provide instruction
and adequate accommodation during each school year for the
pupils who have a right to attend a school under the
jurisdiction of the Area Board.
The Area Boards must submit to the School Board annually for
approval their estimates, for elementary and secondary
education, of the monies required for the purposes of the Area
Board. In considering the estimates, the School Board must
endeavour to provide for all the Area Boards, having regard to
their varying needs,
the funds necessary for an educational
program throughout Metropolitan Toronto.
present powers of the School Board
The School Board and the Area Boards have the authority under
the Education Act to select and acquire, by purchase, lease,
or expropriation,
school sites that are within their areas of
jurisdiction. The School Board and the Area Boards may also
purchase or lease lands that are outside their areas of
jurisdiction. These are effectively the only express powers
of acquisition of land available to the School Board and the
Area Boards. The School Board and the Area Boards have
accordingly no right to claim an allocation of land for a
school site within a development of land by subdivision or
otherwise, either from the developer or the Municipality.
The means at the School Boards and the Area Boards disposal
to acquire a school site by purchase, lease or expropriation,
- 5 -
can only be used by paying a fair market value. There are no
sure means under the Planning Act for the acquisition of
school sites and the provision of adequate student
accommodation. Educational considerations and school sites
are referred to in the Planning Act in a limited context.
In considering a draft plan of subdivision, the Minister of
Municipal Affairs must have regard to a number of
considerations, including the effect of the development of the
proposed subdivision on matters of Provincial interest. One
matter of Provincial interest, as specified under the Planning
Act, is the equitable distribution of educational, health and
other social facilities. The Minister must also have regard
to the adequacy of school sites. The same considerations are
relevant in land severance applications.
The official plan, zoning and minor variance provisions of the
Planning Act do not contain specific references to the
adequacy of school sites and student accommodation.
While Area Boards have every right to participate in the
planning process with respect to official plan amendments,
zoning by-laws, subdivision approval, and minor variance and
severance applications, and to make their needs known to
developers, municipal planners and Councils, they have no
autonomous power to obtain satisfaction of their asserted or
established needs for school sites and student accommodation.
The School Board and the Area Boards are dependent upon the
decisions or agreements of others and upon their bargaining
strength to secure favorable land allocation in new
developments.
It is wrong to assume that the Area Boards, through the School
Board, have access to adequate funds for the purpose of school
site acquisition and the provision of student accommodation.
- 6 -
Traditionally,
school Board funding is only through property
taxes, a source of funding that is
and will remain under
severe constraint.
The School Board has the power to borrow money through the
issuance of debentures,
but this method of financing capital
projects has not been used since 1980.
Provincial grants for capital expenditures cannot
o n a s a s t a b l e s o u r c e o f r e v e n u e .
Fu r t h e r mo r e ,
be counted
the amount
received in grants is negligible.
In 1991 the School Board
had a budget of $87,200,000.00 for capital expenditures, while
less than $2,000,000.00 was received in grants for capital
expenditures.
The School Board
the Development
is currently
Charges Act,
reviewing its options regarding
So. 1989, however, it would
appear that there are some shortfalls in the use of education
development charges (see Appendix).
STATEMENT OF PROBLEMS
(a) Provision of Adequate School Sites and Student
Accommodation
The dilemma of the Area Boards
broad duty to provide accommodate
is simple; they have a
ion to students entitled
to attend school, but their means of accomplishing that
end are limited to acquiring property in the marketplace
through lease or by purchase or by expropriation at fair
market value. Alternatively, agreements may be reached
with developers which, depending on the particular
context, may accomplish some modification of market
forces.
- 7 -
In the past, when land was readily available and
developers profits more easily obtainable, the system of
negotiation with developers for school sites was easier.
Developers saw the political and marketing advantages of
ensuring easy access to schools for children of the
families which were their main market.
Both the
economics and the demographics have changed.
Developers
and sometimes municipalities see little need to ensure
the construction of school facilities.
The change of circumstances requires both a fresh
approach by Area Boards to the acquisition of sites and
the construction of schools and a new legislative
framework which will ensure easier and more affordable
access to school sites and the provision of student
accommodation.
Another problem being faced by the Area Boards is the
change in the demographic composition of the population
of residential developments which results in a
significant increase or decrease in the number of school
age children. A change in the type of occupancy of a
building from what was originally proposed, and upon
which the Area Boards have based their forecasts,
can
have a drastic impact on the Area Boards ability to
provide adequate student accommodation. For example, due
to a downturn in the economy, a building which was
originally planned as a luxury, adult lifestyle
condominium may ultimately be used as affordable or non-
profit housing to accommodate families, with the result
that there would be a greater demand on the school
facilities in the area.
With the cooperation of the local municipality, the
Holding By-law provisions of section 36 of the Planning
- 8 -
Act may be used to control changes to the proposed
occupancy of a building prior to construction. As a
condition to removing the holding symbol, the municipal
council could require the developer to reaffirm to the
Area Board the proposed use and occupancy of the project
and obtain from the Area Board confirmation that adequate
student accommodation still exists to serve the project.
(b) Need for Consultation with and Participation by
the
School Board and the Area Boards in the Planning
Process
A further problem faced by some of the Area Boards is the
inadequacy of notice to the Area Boards of proposed
residential developments,
resulting in the Area Boards
being unable to properly accommodate students in a timely
fashion.
Without formal notice of applications, Area Boards may
not become aware of such development proposals until the
applications are well into the planning process.
By that
time, the Area Boards are often at a disadvantage in
having their concerns considered through amendments to
the proposal without the expense of an appeal to the
Ontario Municipal Board.
With proper formal notice, the
Area Boards would be in a far better position to take
development proposals into consideration in their long-
term plans for student accommodation.
The School Board
and the Area Boards should be included and consulted at
the beginning of the development process.
Ideally, they
should be consulted by both the developer and the
Municipality during the preliminary discussions, even
before a formal submission or application is submitted.
Adequate notice will also permit the Area Boards to match
potential need with existing supply.
This will assist
- 9 -
the Area Boards in determining whether or not school
openings or closures should or should not take place in
certain catchment areas. It may also assist the Area
Boards in advising the local municipalities as to the
areas in which growth should occur in order to fully
utilize the existing school facilities, and thereby avoid
or at least minimize the use of portable classrooms and
busing.
(c) Notice Provisions
The notice provisions under the Planning Act for the
major development processes are as follows:
Official Plan and Official Plan Amendments (Includinq
Part II or Secondary Plans)
Ontario Regulation 402/83 only requires notice of a
public meeting, for the purpose of informing the public
of a proposed Official Plan or a proposed amendment to an
Official Plan, be given either by publication in a
newspaper of general circulation or by personal service
or by prepaid first-class mail to every landowner in the
area to which the proposed Official Plan or Official Plan
Amendment would apply and to all landowners within 120
metres of that area. Furthermore, notice of the public
meeting must be given to every person and agency that has
given the clerk of the municipality a written request for
such notice in respect of the proposed official plan or
plan amendment.
There is no specific requirement that the School Board or
an Area Board be given notice of any application to amend
the Official Plan.
- 10 -
Sections 17(9) and 22(3) of the Planning Act only provide
t h a t t h e Mi n i s t e r may c o n f e r wi t h o f f i c i a l s o f
c o mmi s s i o n s , a u t h o r i t i e s o r c o r p o r a t i o n s a n d o t h e r s u c h
bodies or persons as the Minister considers may have an
interest in the approval of the Official Plan or the
Amendment of the Official Plan. There are no guarantees
that amendments pertaining to either general residential
policies or site specific official plan amendments
relating to residential developments will be brought to
the attention of the Area Board.
Local municipalities must be aware that even small
residential developments will ultimately have a
cumulative effect on the Area Boards ability to provide
student accommodation.
Zoning Bv-laws and Zoning By-law Amendments
Section 34(12) of the Planning Act requires a
municipality to hold at least one public meeting before
Municipal Council passes the Zoning By-law or any
amendment thereto. Regulation 404/83 contains the notice
provisions for the public meeting. Notice of a public
meeting for the purpose of informing the public in
respect of a proposed Zoning By-law must be given by
publication in a newspaper of general circulation or by
personal service or prepaid first-class mail to every
landowner or assessed person in the area to which the
proposed By-law would apply and within 120 metres of that
area. Where notice is by personal service or prepaid
first-class mail to a landowner only, notice of the
public meeting must also be
Under Section 34(15) of the
Council must forward to
posted on the property.
Planning Act, the Municipal
such boards, commissions,
- 11 -
a u t h o r i t i e s o r o t h e r a g e n c i e s a s t h e Co u n c i l c o n s i d e r s
ma y h a v e a n i n t e r e s t i n t h e z o n i n g p r o p o s a l s u f f i c i e n t
i n f o r ma t i o n t o e n a b l e t h e m t o u n d e r s t a n d t h e a p p l i c a t i o n
ge ne r a l l y a nd s uc h i nf or ma t i on mus t be f or wa r de d not l e s s
t h a n 2 0 d a y s b e f o r e p a s s i n g a By - l a w i mp l e me n t i n g t h e
p r o p o s a l .
Once again, n e i t h e r t h e r e g u l a t i o n s n o r t h e P l a n n i n g Ac t
speci fi cal l y requlre notice to be given to the Area
Board. The Regulations only require notice of the
passage of the By-law to be sent to the Secretary of
every school board having jurisdiction within the area to
which the By-law applies. Such notice after the fact,
may often come too late for the Area Board to have any
practical input into the proposal without an expensive
appeal to the Ontario Municipal Board. There must be
consultation with the School Board and the Area Board at
the earliest possible opportunity.
Plans of Subdivision
Under subsection 51(3) of the Planning Act, the Minister
of Municipal Affairs may confer with officials of
commissions, authorities or corporations and with such
other bodies or persons as the Minister considers may
have an interest in the approval of the proposed
subdivision. The Area Board is not specifically listed
as an entity to be consulted. There are no other
provisions or regulations requiring that notice be given
to the Area Board, although in considering the approval
of the draft plan of subdivision, regard must be had to,
including other matters, the health, safety, convenience
and welfare of the present and future inhabitants of the
local Municipality and to the effect of the proposed
subdivision on matters of Provincial interest.
- 12 -
One matter of
Provincial interest is the equitable
distribution of educational, health and other social
facilities. Regard must also be had to the adequacy of
school sites. These provisions do not go far enough in
encouraging early consultation with the Area Board or in
establishing criteria that goes beyond simply considering
t h e a d e q u a c y o f s c h o o l s i t e s .
T h e a c t u a l e x i s t e n c e o f
s t udent accommodat i on mus t be exami ned.
Consents to Sever
The approval authority,
in determining whether a consent
to sever is to be given,
must confer with such agencies
or persons as are prescribed under the regulations.
However, Ontario Regulation 406/83 does not list an Area
Board as one of the agencies
to which the approval
authority must, at least fourteen (14) days prior to the
Hearing, provide a copy of the application and a request
for written comments. The approval authority must give
notice of the application only to those local boards,
commissions or persons that the approval authority
determines should receive notice.
In determining whether a
consent is to be given, the
approval authority must only have regard to the same
matters that must be considered in approving a plan of
subdivision. Such criteria includes the adequacy of
school sites as well as the equitable distribution of
educational, health and other social facilities.
Minor Variance App lications
The approval authority must give notice of the Hearing of
the application to the persons and agencies prescribed by
- 13 -
regulation. However, the Area Boards are not
specifically listed in Ontario Regulation 447/83.
The
approval authority must give notice of the application
only to those local boards,
commissions or persons that
the approval authority determines should receive notice.
7 . PROPOSALS FOR CHANGE
( a) Legislative Proposals
The School Board respectfully requests that consideration
be given to the following amendments to the Planning Act,
R.S.O. 1990, Chap.
P.13 (underlining indicates proposed
amendment) :
(i) Section 2 - Reqarding the Responsibilities of the
Minister of Municipal Affairs
Add paragraph (k) as follows:
2. The Minister, in carrying out his or her
responsibilities
under this Act, will have
regard to, among other matters,
matters of
provincial interest such as,
(ii)
- 14 -
(k) the adeaqacy of school sites and student
accommodation to service residential
development.
Section 3 - Regarding Provincial Policy Statements
Amend subsection 3(4) as follows:
3(4) Each municipality that receives notice of a
policy statement under subsection (3) shall in turn
given notice of the statement to each local board
of the municipality that it considers has an
interest in the statement, including notice to the
local school board.
(iii) Section 6 - Regarding Consultation
Revise subsection 6(2) as follows:
6(2) A ministry, before carrying out or
authorizing any undertaking that the ministry
considers will directly affect any municipalillty or
school board, shall consult with, and have regard
for, the established planning policies of the
municipality and the school board.
(iv) Section 17 - Regarding Official Plans
Amend subsection 17(5) as follows:
17(5) The council shall provide to the school
boards having jurisdiction within the municipality,
- 15 -
and to such other boards, commissions, authorities
or other agencies as the council considers may have
an interest in
the proposed
plan, adequate
information, a n d b e f o r e
a d o p t i n g t h e p l a n t h e
c o u n c i l s h a l l a f f o r d t h e m a n o p p o r t u n i t y t o s u b mi t
c omme nt s i n r e s pe c t of t he pl a n up t o s uc h t i me a s
i s s p e c i f i e d b y t h e c o u n c i l .
Amend subsection 17(9) as follows:
17(9) The Minister may confer with school board,
municipal, provincial or federal officials, with
officials of commissions,
authorities or
corporations and with such other bodies or persons
as the Minister considers may have an interest in
the approval of the plan and, subject to subsection
(11) , may then approve, or, after consultation with
the council, refuse to approve
the plan or, if
modifications appear desirable to the Minister, he
or she may, after consultation with the council,
make the modifications to the plan and approve the
plan as modified.
(v) Section 19 -
Regarding
Official
plans in
Unorganized Territories
Although this section does not apply to the School
Board and Area Boards,
the Commission may also wish
to consider the following amendment to paragraph
19(b):
19. Before adopting a plan for a planning area
consisting solely of territory without municipal
organization, the planning board,
- 16 -
(b) shall provide to any
school boards having
jurisdiction or an
interest within the
territory and to such other boards,
commissions, authorities or other agencies as
the planning board considers may have an
interest in the proposed plan, adequate
information, and shall afford them an
opportunity to submit comments in respect of
the plan up to such time as is specified by
the planning board,
and thereafter subsections 17 (6) to (18) apply,
with necessary modifications, as
though the
planning board were the council of a municipality
a n d t h e s e c r e t a r y - t r e a s u r e r we r e t h e c l e r k
mu n i c i p a l i t y .
(vi) Section 26 - Regarding Revision of Official
o f t h e
Plans
Amend subsection 26(2) as follows:
26(1) The council of every municipality that has
adopted and had approved an
official plan shall
from time to time, and not less frequently than
every five years, hold a special meeting of
council, open to the public,
for
determining the need for a revision
plan.
the purpose of
of the official
(2) Notice of every special meeting held under
subsection (1) shall be
given to every school board
with jurisdiction within the municipality
and shall
be published at least once a week in each of two
separate weeks, such publication to be completed
not later than thirty days before the date of the
meeting, and the council shall afford any person
- 17 -
who a t t e nds t he me e t i ng a n oppor t uni t y t o be he a r d
i n r e s p e c t o f t h e n e e d f o r a r e v i s i o n o f t h e p l a n .
(vii) Section 34 - Regarding Zoning By-laws
Amend subsection 34(5) as follows:
34(5) A by-law passed under paragraph 1 or 2 of
subsection (1) or a predecessor of that paragraph
may prohibit the use of land or the erection or use
of buildings or structures unless such municipal
services and school facilities as may be set out in
the by-law are available to
service the land,
buildings or structures, as the case may be.
Amend subsection 34(15) as follows:
34(15) The council shall forward to the school
boards having jurisdiction within the municipalitv
and to such other boards, commissions, authorities
or other agencies as the council considers may have
an interest in the zoning proposal, sufficient
information to enable them to understand it
generally and such information shall be forwarded
not less than twenty days before passing a by-law
implementing the proposal.
Amend subsection 34(16) as follows:
34(16) Where a school board,
board, commission,
authority or other agency receives information
under subsection (15), such school board,
board,
commission, authority or agency may
in writing
notify the clerk of the municipality at any time
- 18 -
before the expiry of the twenty-day period
mentioned in subsection (15) that a further period
of time is required to submit comments in respect
of the zoning proposal and, where notice is so
given, a by-law implementing the proposal may not
be passed until either the comments have been
received by the council or thirty days have elapsed
f r o m t h e d a t e t h a t t h e i n f o r ma t i o n wa s f o r wa r d e d
u n d e r s u b s e c t i o n ( 1 5 ) , whichever first occurs.
(viii) Section 51 - Regarding Approval of Plans of
Subdivision
Amend subsection 51(2) (k) as follows:
51(2) An applicant under subsection (1) shall
provide as many copies as may be required by the
Minister of a draft plan of the proposed
subdivision drawn to scale and showing,
(k) the municipal services and school
facilities available or to be available to the
land proposed to be subdivided; and
Amend subsection 51(3) as follows:
51(3) The Minister may confer with school board,
municipal, provincial or federal officials, with
officials of commissions, authorities or
corporations and with such other bodies or persons
as the Minister considers may have an interest in
the approval of the proposed subdivision.
Amend subsection 51(4) (j) as follows:
- 19 -
51(4) In considering a draft plan of subdivision,
regard shall be had, among other matters, to the
health, safety, convenience and welfare of the
present and future inhabitants of the local
municipality and to the following,
(j )
the adequacy of s chool s i t es and s t udent
accommodation;
(ix) Section 53 - Regarding Consents
Amend subsection 53(10) as follows:
53(10) The Minister in determining whether a
consent is to be given shall confer with such
school boards, officials, authorities,
corporations, bodies or persons as the Minister
considers may have an interest
and thereafter may, subject to
(19), give, or refuse to give,
(x) Regulations
The School Board also requests
in the application
subsections (11) to
the consent.
that amendments be
made to Regulations 402/83 and 404/83 to ensure
that notice of all official plan and zoning
applications pertaining to residential developments
be given to the Secretary of the Area Board which
has jurisdiction over the lands in the application.
With respect to severance and minor variance
applications, it is the request of the School Board
and the Area Boards that they be given
formal
notice of only those applications which would
- 20 -
(xi)
result in an increase in the number of residential
dwelling units.
Other Matters
As n o t e d a b o v e , any s i g n i f i c a n t c h a n g e t o t h e
d e mo g r a p h i c c o mp o s i t i o n o f t h e p o p u l a t i o n o f a
building may either increase or decrease the number
of school age children in the building,
thereby
affecting the Area Boards ability to efficiently
provide adequate student accommodation. Therefore,
consideration should be given to an amendment to
the Planning Act or the regulations thereunder,
which would ensure that,
during the planning and
development process, the School Board and the Area
Board are notified by the municipality of any
proposed physical changes to the building itself or
of any proposed changes to the use and occupancy of
the building which may significantly change the
pupil yield.
Review of Official Plans - Municipal Coordination and
Cooperation
Section 26 of the Planning Act requires a municipality,
not less frequently than every five years, to hold a
special meeting of Council, open to the public, for the
p u r p o s e o f d e t e r mi n i n g t h e n e e d f o r a r e v i s i o n t o i t s
Of f i c i a l P l a n .
Since the budgets of the Area Boards play a major role in
determining the annual mill rates, long-term land use
planning goals and the provision of student accommodation
- 21 -
must be coordinated between the municipality and the Area
Boards.
The School Board requests that both the School Board and
Area Boards be formally included in a municipality's
periodic review of its Official Plan Policies pursuant to
Section 26. It is through the general policy provisions
of the Official Plan that the direction of growth and the
long-term planning of student accommodation should be
coordinated. All Official Plans should contain a policy
statement recognizing the importance of adequate school
sites and student accommodation.
(c) Provincial Policy Statement
Under Section 3 of the Planning Act, the Minister of
Municipal Affairs and any other Minister of the Crown,
may from time to time issue Policy Statements that-have
been approved by the Lieutenant Governor in Council on
matters
relating to municipal planning
that in the
opinion of the Minister of Municipal Affairs
are of
Provincial interest.
In exercising any authority that
affects
any planning matter,
the council of every
municipality,
every local board,
every minister of the
Crown and every ministry, board,
commission or agency of
the government,
including the Ontario Municipal Board and
Ontario Hydro,
shall have regard to any Policy Statement
issued under Section 3.
The School Board requests the Commission to recommend to
the Minister of Municipal
of Affairs that a Policy
Statement be issued identifying the provision of adequate
school sites and student accommodation as a matter of
Provincial
interest
and encouraging all local
- 22 -
municipalities and government agencies and Ministries to
consult with the local school boards on any land use
decisions, issues or programs which may impact upon the
provision of student accommodation.
B
Such a policy would help to ensure the creation of a day-
to-day working relationship between the school boards and
the local municipalities and ensure early-notification to
the school boards of development proposals.
Early
notification of development proposals permits an Area
Board to formulate its position and
increases the
likelihood that the concerns of the Area Board may be
resolved early in the development
process. The
development proposal should be discussed with the Area
Board during its formative stages and even before a
formal development application is submitted.
The development of a close working relationship between
the local municipality and the Area Board would also
facilitate the sharing of existing data bases and the
collection and analysis of new data.
The issuance of a Provincial Policy Statement regarding
educational facilities should result in the setting up of
a mechanism whereby the Ministries of Education and
Housing would have preliminary discussions with the
School Board and the Area Boards prior to implementing
any new incentives that may
exacerbate the student
accommodation problem. For example, any major
intensification program supported by the Ministry of
Housing could have a substantial impact on the demand for
student accommodation within
existing schools.
Similarly, programming changes initiated by the Ministry
of Education may reduce class sizes and increase space
needs, thereby decreasing the Area Boards ability to
- 23 -
provide student accommodation.
Early
consultation
between these Ministries and the Area Boards may help to
avoid any sudden increases in the demand for student
accommodation.
Conclusion
It is hoped that the considerations raised in this brief will
be of
assistance to the Commission
in formulating its
recommendations for amendments to the Planning Act.
The
School Board would be pleased to expand on any
matters
contained
in this brief,
and supply supporting
detailed
information.
THE METROPOLITAN TORONTO SCHOOL BOARD
on behalf of the eight public School
Boards in Metropolitan Toronto.
- 2 4 -
APPENDIX
It may be suggested that a funding alternative may be the
enactment of an Education Development Charge By-law pursuant
to the Development Charges Act, S.0. 1989.
The School Board
has declined, to
date, to
proceed with an
Education
Development Charge By-law for a variety of philosophical and
practical reasons.
Among the reasons are the following:
(a) the Development Charges Act does not address financing
for non growth-related capital needs such as renovation
and replacement,
nor does it
provide funding
for
additional classroom space relating to various government
mandates such as the reduction in pupil/teacher ratios.
The Development Charges Act is based on the principal
that growth-related education capital costs (i.e. the
provision of new pupil places) should be paid for by all
development which
is generating the need
for that
expenditure.
Such a funding source is totally inadequate
for the School
Boards
needs.
Development or
redevelopment in an
urban
context like Metropolitan
Toronto does not generate the same demand for new schools
or school additions as
greenfield development" in more
rural areas.
Rather, greater demand is placed on the
School Board to upgrade,
renew and renovate its existing
stock of schools,
costs which are not recoverable under
the Development Charges Act.
(b) the continued availability of this funding source may be
uncertain as a result of constitutional challenges.
The
development industry is
largely in opposition to the
imposition of Education Development Charges;
.
- 25 -
(c)
(d)
the Development Charges Act represents a further shift in
responsibility for education funding from the provincial
government to a local user-pay system that in itself may
not be an appropriate source of funding for an education
system that is regarded as benefiting not only the user
but society as a whole; and
pursuant to Ontario Regulation 722/89 an education
development charge cannot be imposed with respect to the
creation of one or two additional dwelling units in an
existing single detached dwelling or with respect to one
additional dwelling unit in any other existing
residential building.
While this exemption may seem
insignificant, the cumulative impact of housing
intensification on
the need for additional school
facilities in a large urban area can be significant.
5100 Yonge Street
North York. Ontario
M2N 5V7
Tel: (416) 395-7617
Fax: (416) 395-7691
NorthYork
B O A R D O F H E A L T H
September 22, 1995
Ms. Anne Golden, Chair
Premiers Task Force on the Future of GTA
393 University Avenue, Suite 2021
Toronto, Ontario
M5G 1E6
Dear Ms. Golden:
I am pleased to send you a copy of a paper prepared by the City of North York Public Health
Department on the municipal positioning of public health departments in Metropolitan Toronto.
As you deliberate on the future structure of the GTA, I encourage you and your task force to
consider the contents of this paper in the context of the important role that public health units
play in maintaining and improving the health of the population.
Public health units are unique in the health system because of our population health approach,
our focus on prevention and health promotion, and our municipal perspective. Public health is
relatively small in comparison to other sectors of the health system. While hospitals and
physicians mainly focus on the treatment of illness, public health focuses on prevention of illness
and promotion of well-being. Public health programs target the entire community (or large
subgroups thereof), as well as providing some services to individuals. Community health centres
provide a broad range of services but to a specific segment of the population, covering only
approximately 4/0 of the population.
Local planning and better delivery of programs are reinforced by accountability to the community
and municipal City Council through the Board of Health structure which requires municipal and
citizen representation. The world health promotion literature and major reform documents in
Ontario signal the importance of local community involvement. The current system enables
strong linkages with municipal structures, which are crucial as we advocate for healthy public
policy/legislation, e.g. municipal alcohol policy. We place a strong emphasis on local inter-
agency cooperation and collaboration to minimize duplication and share resources in a synergistic
fashion. We are providing customized service to meet the unique needs of our local community.
,../2
Page 2
Amalgamation into a super health unit for all the GTA would create a massive bureaucracy
with many layers. Management costs would likely increase, while responsiveness to local
community needs would definitely suffer. Note that the Metro Toronto District Health Councils
Action Plan 7 literature review has indicated that an area with greater than 700,000 population
does not work well with respect to governance for health care. On the other hand, splitting
public health into an increased number of smaller units would make the delivery of integrated
population health programs harder. There is thus a need for balance and flexibility in the
delivery of such services, and intentional collaboration between health units on selected
policies/programs, e.g. ongoing work to create level playing field with respect to smoking by-
laws.
The discussions of your task force are of critical importance to public health services. I am thus
asking you and your task force to consider the impact on public health services as part of your
deliberations.
I hope that the attached document will provide additional information for such discussions. Staff
of the Department would be happy to provide more information or attend your task force to assist
you in your deliberations if you so wish.
Yours sincerely,
Ms. Viki Scott
Chairman
City of North York Board of Health
Commissioner and Medical Officer of Health
City of North York Public Health Department
Encl.
/ww
EXTRACT FROM MINUTES OF THE MEETING OF THE CITY OF NORTH YORK
BOARD OF HEALTH HELD ON FRIDAY, APRIL 21, 1995
1 0 0 . PUBLIC HEALTH IN METROPOLITAN TORONTO
The Board had before it Report No. 061-95 (April 11, 1995)
from the Commissioner and Medical Officer of Health respecting
public health in Metropolitan
Toronto and recommending the
following:
1. That the Board of Health endorse the following
recommendations contained in Appendix A of Report No.
061-95 re: Public Health in Metropolitan Toronto:
1. That public health departments in Metropolitan
Toronto remain at the local area municipal level;
and,
2. The six public health departments strengthen and
expand mechanisms to effect intentional
collaboration across Metro;
and further,
2. That the Board of Health send Report No. 061-95 to the
Boards of Health for the other municipalities in
Metropolitan Toronto and the Liaison Committee of Boards
of Health of Metropolitan Toronto, requesting their
endorsement.
Dr. Yaffe assisted the Board in its deliberation of this
matter.
It was moved by Ms. Pepe-Incerto, seconded by Dr. Reynolds,
that the recommendations contained in the foregoing report be
approved.
Carried
April 1995
PUBLIC HEALTH IN METROPOLITAN TORONTO
The purpose of this paper is to review the municipal positioning of Public Health
Departments in Metropolitan Toronto and to make recommendations thereon.
Background
A push to review the levels of government in Metro Toronto is coming from many
directions. Many people feel that the Metro level is redundant, an unnecessary layer of
bureaucracy. On the other hand, there is concern about duplication, inefficiency, and
lack of co-ordination across local municipalities. With on-going budget restrictions,
reducing the number of levels of government and increasing efficiency have become high
priorities.
There are a number of initiatives underway which have raised the issue of position,
governance and co-ordination of municipal services in Metropolitan Toronto. Among
these are:
1. A Committee of Local Area Councils (COMLAC) (Councillors from six local area
Municipalities in Metro)
2. Greater Toronto Co-ordinating Committee (a committee of Mayors from the
GTA municipalities).
3. The Premiers GTA task force on the future structure of the Greater Toronto
Area, to report on tax issues by the end of 1995 and on the restructuring of local
government within 18 months.
As well, the Metropolitan Toronto District Health Council (MTDHC) has struck a task
force to make recommendations on health system governance, in accordance with Action
Plan #7 under the MTDHC Strategic Plan. A preliminary review of the literature for
this committee has indicated that an area larger than about 700,000 population does not
work well with respect to governance for health care.
Given the level of activity concerning governance and co-ordination of efforts across
Metropolitan Toronto, it is necessary to be proactive regarding the positioning of public
health to best meet the needs of the citizens. Taking the old axiom that form follows
2
function, this paper reviews the role of public health and describes its local nature as a
fundamental characteristic. It goes on to delineate the need for collaboration among
public health departments in Metro and then makes the case that amalgamation is not
the preferred option.
The Role of Public Health
Traditionally the goal of public health has been to reduce premature deaths as well as
the prevalence of disease in the population -- in other words, to protect and promote
health and to prevent illness. While other health care professionals treat individuals with
problems in order to obtain immediate or short-term results, public health practitioners
plan and deliver services for the long-range improvement in the health of the population
as a whole. The greatest health benefits historically have been achieved through
improvements in the determinants of health through a population health approach to
disease prevention, health protection and health promotion.
The distinguishing characteristics of Public Health are its population health approach and
its focus on prevention and health promotion.
Major differences among the acute care sector; community health centres and Public
Health are found in the concentration of resources allocated to different points on the
health/illness continuum and in the proportion of the population served. Unlike the
acute care sector which is most involved at the illness end of the continuum, and
community health centres which provide a broad range of services but to a specific
segment of the community, Public Health concentrates on health-related programs
targeted to the entire community (or large sub-groups), with minimal allocation of staff
and programs at the illness end of the continuum.
COMPARISON OF SELECTED SERVICES
ALONG THE HEALTH-ILLNESS CONTINUUM
PERCENT
OF
POPULATION
PUBLIC HEALTH
HOSPITAL/ACUTE CARE
-----
------
.
.
.
.
.
.
.
.
.
.
.
,
,
.
.
.
.
HEALTH CENTRES
.
.
..-
A- - - - -
.
.
.
.
- - -
HEALTH
ILLNESS
The Public Health model of service began and continues as a community-based
movement to address public health needs. It evolved in early settlements in Ontario
continues to change as communities re-define their needs and priorities. Consistent
3
and
throughout its entire history have been a number of features
practice:
which define Public Health
1. a focus on the health of the entire community
2. public funding
3. a belief in equity of health opportunity
4. a focus on health protection
5. a focus on disease prevention.
6. a focus on health promotion
7. a multi-disciplinary approach to service delivery
8. a commitment to advocacy for healthy public policy
9. a recognition of the broad determinants of health.
Under the authority of the provincial Health Protection and Promotion Act, 1990, public
health departments in the province are mandated to provide or ensure the provision of
a minimum level of public health programs and services. These programs and services
are delineated in the Mandatory Programs and Services Guidelines under four major
Health Goals: Healthy Growth and Development, Healthy Lifestyles, Communicable
Disease Control and Healthy Environments. Some of the specific programs and services
which are provided are listed in Attachment I.
The Local Nature of Public Health
Having a local structure means we are closer to the community. This enables better
input and involvement to meet community needs in the best way. Local planning and
better local delivery of programs are reinforced by the accountability to the community
and Council by the Board of Health structure which requires municipal and citizen
representation. The world health promotion literature and all the important reform
documents in Ontario signal the importance of local community involvement.
The current system enables strong linkages with municipal structures. This is extremely
important as Public Health increasingly engages in the health promotion strategies of
advocacy and healthy public policy development to impact on the determinants of health.
4
In many ways, the status quo is working and working well. We are providing customized
service to meet the unique needs of our respective communities within each municipality.
In addition, in the current climate of financial constraints, we are finding ways to work
smarter and to benefit from the experience from our sister municipalities in Metro and
from others.
In the Status Report of the Political Steering Committee for the Review of Government
in Metropolitan Toronto, there is a set of Principles to Guide a Review of Governance in
the GTA. Included in the principles are the following:
3. Municipal governments must serve their communities. They must:
B
reflect the local sense of place and history;
B
be sensitive to local needs;
B
be able to respond to the local needs;
B
have sufficient flexibility to determine priorities that meet the needs
of their citizens;
B
have sufficient autonomy to meet the needs of their citizens;
B
have sufficient resources to meet the needs of their citizens;
5. Government services, functions, and programs should be provided and paid
for by the jurisdiction or community which benefits from them.
6. Government services, functions and programs should be provided and
delivered by the level of government which is closest to the people and
willing and able to do so competently.
Public Health is a good example of a set of services which meet these requirements. As
indicated above, the current structure of the Public Health system in Metro enables
sensitivity and response to local needs. Similarly, being part of the six municipal
governments allows the flexibility to determine local priorities and the autonomy required
to meet the local needs without approval from higher authorities. It is currently the case
that public health services are provided and paid for (60% of total cost) by the
communities i.e. the six municipalities which benefit from them. And finally, the
positioning of Public Health in the local governments also meets the requirement of
services/functions/programs being provided and delivered by the level closest to the
people.
The Need to Increase and Improve Collaboration
There are functions which could likely be performed more efficiently and effectively if
the Metro health departments collaborated. More administrative-type functions such as
purchasing could be considered. Existing purchasing arrangements may be satisfactory for
routine supplies but additional efficiencies may be achieved through bulk purchasing of
resources specific to Public Health e.g. condoms, syringes.
5
As well, services which are somewhat concrete and amenable to the development of
standards could perhaps be organized so that all departments operate on the basis of
such standards.
Could we create a process for public health planning in Metro? What about Metro
standards for health protection, communicable disease control, dental education, lifestyle
policy development, etc.? Standards would help address the frustration on the part of the
public (e.g. restaurant chains) regarding lack of uniformity in by-laws, etc. across Metro.
It will be difficult and time-consuming to collaborate in some areas/issues. But it is
becoming increasingly imperative that this occur. A strong recommendation out of North
York Health Departments community consultation process of 1994 is to collaborate
with other organizations, agencies and Greater Toronto Area public health units at all
levels (senior to frontline staff in a structured way, i.e. as part of an intentional and
strategic process that requires development and maintenance. Similar themes are being
echoed in many forums and forms across Metro.
There is definitely a need to maximize resources likely across Metro. High level
commitment is essential. There will have to be a strong commitment on the part of
senior management in each of the Metro health departments and likely at the level of
the boards of health, to ensure that collaboration, co-ordination, and co-operation occur.
That is, a mechanism to ensure intentional collaboration among the six departments is
required. The alternative is statutory or financial incentives which would be imposed on
the public health system from the outside.
One way to commence is to identify the many issues which cross municipal boundaries.
A recent review of existing joint initiatives across the six Metro health departments
identified about 25 groups which meet together to discuss and/or plan service delivery
issues. The Metro Medical Officers of Health have begun to meet to discuss avenues
for intentional collaboration.
What About Amalgamation?
Some people wonder why there need to be six health departments in Metro.
Given the nature of Public Healths involvement in communities, amalgamation is not the
preferred option. Some specific reasons against amalgamation of the public health
departments across Metro into one massive bureaucracy include the following:
1. An agency this size, serving a population of 2-3 million people, would be difficult
to administer. It would require, at least in the short-term as the system moved
from municipal to Metro service delivery, a de-centralized structure. There would
be many layers of bureaucracy, with all the myriad of problems associated with
that. One public health department in Metro which had a fully de-centralized
structure, is now slowly re-centralizing as a result of budget cuts.
6
2. While it would appear that management costs might be decreased in an
amalgamated public health department, in fact they would not. As well, other
costs such as those to ensure communications and effective administration, might
in fact increase. Otherwise it would not be possible to maintain responsiveness to
the local community. Note that the District Health Councils review of the
literature has indicated that an area larger than 700,000 population does not work
well with respect to governance for health care.
3. An agency of the size required to serve all of Metro would likely allow for little
customization of public health service to unique and/or distinct communities. A
bureaucracy this large would have difficulty responding to the needs of the diverse
local populations. The resulting level of service could be mandatory programs
only.
4. It is harder to be connected to, and in partnership with, the community, from the
perspective of a large bureaucracy. It will be even more difficult to consult the
community and work with the many groups than it is now with six health
departments, each dealing with the unique flavour of its respective municipality.
5. An amalgamated department would lose its strong links to local government which
are necessary for effective advocacy and policy/legislation development such as
smoking and rabies vaccination by-laws and municipal alcohol policies.
6. An amalgamated structure would also lose the opportunity to obtain local funding
to address local concerns.
7. In the current financial climate, the province is unlikely to increase its cost-sharing
for public health services, and certainly not to a 75/25 split with Metro. The
overall effect will be reduced per capita funding for some municipalities and
therefore a drop in program and service delivery.
Conclusion
The very nature of Public Health is community involvement. In order to have any
impact on the determinants of health and to meet the needs of the many small
communities which comprise Metro, public health services need to be delivered at the
local level where the necessary two-way dialogue between citizens and health
professionals can occur. The current health department bureaucracies are already large
enough; formation of an expanded agency which would serve all of Metro would be
counter-productive in terms of community consultation, involvement and tailored service.
Recommendations
It is recommended that:
1. Public health departments in Metropolitan Toronto remain at the local area
municipal level; and
2. The six public health departments strengthen and expand mechanisms to effect
intentional collaboration across Metro.
8
Bibliography
1. Status Report of the Political Steering Committee for the Review of Government
in Metropolitan Toronto, September 1994
2. North York Public Health Department. Public Health Goals for the City of North
York Public Health Department, September 1994
3. Liaison Committee of Boards of Health for Metropolitan Toronto. Funding for
Public Health Units in Metropolitan Toronto, January 26, 1990
4. Federal/Provincial/Territorial Advisory Committee on Population Health: Investing
in the Health of Canadians. Strategies for Population Health, September 1994
5. Association of Local Official Health Agencies. Population Health: The Role of
Public Health Units in Ontario (February 2, 1995 draft)
ATTACHMENT
Following is a brief description of programs and services offered by the City of North
York Public Health department.
These programs are mandated under the authority of the Health Protection and
Promotion Act, 1990:
Healthy Children
This involves community and home-centered health services to promote raising of
healthy children for families with new babies, and with thousands of preschool
children. Ensuring licensed preschools have healthy and safe environments.
Prevention of child and family abuse and child development delays. Parenting
education and support with emphasis on low literacy and English as a Second
Language (ESL). Parent/child centres in high risk localities.
Healthy Adolescents
School and community health services which give children and adolescents skills
and knowledge to make healthy choices regarding tobacco use, substance abuse,
healthy nutrition, sexual health and self-esteem, Coalition-building and working
with youth for adolescent suicide prevention. Promoting mental health,
preventing suicide, AIDS and sexually transmitted diseases. Promoting a healthy
school and community environment with students, teachers, parents, community
groups and high risk teens.
Healthy Adult/Elderly
Community-based health programs focusing on promotion of healthy lifestyles and
prevention of illness, workplace health promotion, womens health and breast
screening awareness, personal health counseling and prevention regarding cancer,
heart disease, coping with disability and illness, healthy aging, caregiver support
and counseling, home and community work with seniors who are frail and at risk
in their homes, coordination of services for seniors, and response to seniors found
at risk in the community by Fire Department, etc.
Dental Education (A component of Healthy Children, Healthy Adolescents, and
Healthy Elderly Programs)
Dental education and oral hygiene instruction are provided to the community as a
whole and to the following groups: staff and parents of daycare and nurseries;
students and staff at schools; adult (ESL) students; seniors and seniors
careproviders and dental professionals in training.
Dental Prevention (A component of Healthy Children & Healthy Adolescent
Programs)
A dental screening program is offered to all students from birth to Grade 8. This
screening is the entry point to the dental treatment programs offered by several
health departments, and to the CINOT program. Prevention services, based on
individual need, include cleaning, sealants and fluoride treatment.
Reproductive Health
This program encompasses group education and prenatal support; program
outreach to high risk pregnancies, such as teen parents; and programs to increase
health habits preconceptually and to prevent problems with birth and infant
health. Support group to young mothers and prenatal fitness classes. Healthy
Beginnings prenatal program to reduce low birth weight babies; community
awareness of preconceptual health.
Sexual Health
This program includes sexual health clinics in high schools and other settings for
birth control and pregnancy counseling; prevention of sexually transmitted
diseases; community-wide education for healthy family planning and sexual health
for all ages of the population. It also provides consultation to the community
regarding healthy sexuality as well as in-services to teachers and day care
operators.
Tobacco Use Prevention
Components of the Tobacco Use Prevention program include strategies with all
age groups to reduce and eliminate the use of tobacco. There is also the
integration of several peer support anti-smoking programs in schools.
The Environmental Health component of this program is primarily public policy
and advocacy with the goal of achieving smoke-free communities. Much of the
work pertains to statutory requirements (by-laws) aimed at preventing exposure to
second-hand smoke in public places.
Substance Abuse Prevention
The Substance Abuse Prevention program provides education and counseling for
prevention of substance abuse with all ages of the population. It includes support
of anti-drug coalitions; as well as policy development and advocacy through
coalition building (e.g. Mayors Task Forces on Substance Abuse in North York
and Toronto); Municipal Alcohol Policy development; and involvement with a
coalition to prevent alcohol advertising. Typical initiatives include raising
awareness through poster campaigns in schools, workplaces, recreational settings.
3
Nutrition Promotion
This program promotes healthy eating, healthy body weight and access to
sufficient nutritious and personally acceptable foods through consultation with
public health staff and community professionals, dissemination of accurate
nutrition information and policy development.
Vaccine Preventable Program
Registered nurses assess the immunization histories of students in accordance with
the Immunization of School Pupils Act and immunize children at school and
community clinics. Hundreds of thousands of records are assessed annually.
Staff are also required to assess the records of children attending licensed child
care centres. Educational activities include promotion of flu vaccine for seniors.
Disease Surveillance
The mandatory programs of Infection Control in Institutions and Outbreak
Control, are closely related to each other and to communicable disease
surveillance and control activities included in the Health Protection and Promotion
Act. Liaison is established with institutions such as hospitals, nursing homes, rest
homes, schools, child care centres, etc. to ensure that staff are aware of the need
for infection control programs and the legal obligation to report communicable
diseases. Disease surveillance reports are received not only from institutions, but
also laboratories and community practitioners. There continues to be a need for
expansion of educational activities to meet mandatory program requirements.
Rabies Control
Rabies Control has two main components: education about prevention of rabies
and investigation of exposures to potentially rabid animals, including provision of
rabies vaccine and immune globulin as appropriate.
Sexually Transmitted Diseases Program
This program has four main components: surveillance; public education; case
management and partner follow-up for sexually transmitted diseases (gonorrhea
and chlamydia); and, education, counseling and case and contact management for
AIDS.
4
T.B. Control
The components of the tuberculosis control program are management of cases of
TB, including counseling, provision of free drugs and ensuring compliance with
treatment, and identification and management of contacts of cases. Follow-up of
cases and contacts may be in the home, in institutions or in workplaces.
Educational programs are also provided for staff of institutions. The number of
cases of tuberculosis has risen significantly in Metro in the past year. Treatment
of TB requires drugs for nine to twelve months. Compliance is not always good
and public health supervision is necessary. Cases have become very complex over
the past two to three years and orders under the Health Protection and Promotion
Act have sometimes been necessary to ensure compliance.
Food Safety
The main components of the Food Safety program are routine inspection of food
establishments, including institutions, to ensure compliance with legislation and
good food handling practices. Staff also respond to food complaints, including
food poisoning/outbreak control; and they respond to Federal/Provincial Food
Recalls to stop the sale of unsafe food. They conduct food handler education
programs.
Healthy Environments Program
This program creates awareness about the quality of our physical environment:
air, soil and water. Staff monitor and investigate conditions and facilities which
are potentially hazardous to human health and take remedial action to reduce
risk. Staff in this program respond to and investigate all citizen complaints
ascertain health hazards (i.e. refuse and garbage, chemicals and pesticides,
cockroaches, rodents and sewage).
to
Water Quality
Staff provide routine inspections of public swimming pools for water chemistry,
bacteriology, safety equipment and other facilities relating to patron and public
safety. As well, they facilitate the testing of water for bacteriological assessment
on demand and investigate other water-related complaints.
In addition to the mandated programs listed above , there are a number of other services
offered by some or all of the Metro health departments. Among these are included the
following:
Local By-Laws
Staff respond to and investigate complaints made under local by-laws including:
Smoking, Infested Premises, Heat, and Sewer Connection.
Education and Research
All Metro public health departments provide student education and participate in
applied research in public health. Consultation with other programs leads to the
development of new and innovative public health programs.
Three of the departments (North York, East York and Toronto) have 100%
provincially funded programs for student education and research. The program
receives recognition from the University of Toronto since it has allowed for more
training of students in the community (as opposed to classroom settings). Two
positions (Environmental Specialist and Dental Health Specialist) are shared
across the North York, the East York and the Toronto Teaching Health Units.
Children in Need of Treatment (C.I.N.O.T.)
C.I.N.O.T. provides treatment for thousands of Metro children identified annually
as having urgent dental needs and declared financial hardship. C. I.N.O.T. is
funded 100% by the Ministry of Health. The Community Dental Divisions in the
health departments act as administrator for this provincial program and are
reimbursed for these costs.
NORTH YORK HYDRO
5800 Yonge Street
North York, Ontario
FAX TRANSMITTAL FORM
To:
Dr. Anne Golden
Company:
Fax No.:
327-1516
From;
Susan Pollock
Department:
Administration
Voice No.:
( 416) 229-5133
Fax No.:
( 416) 229-5121
Date:
19 September 1995
No. of pages including this page: 4
BRINGING COMMON SENSE TO METRO
Submission on Behalf of North York Hydro
Pr esent ed By: Mr. D.C. Anderson
Vice-Chairman
Mr. M.W. Butler
General Manager
Thank you for the opportunity to contribute to your examination of local
government and delivery of local services within Metropolitan Toronto. Unfortunately,
we were unable to attend the meeting in North York but are pleased you could
accommodate our request to be heard along with our friends from Scarborough this
evening.
We concur with your observation that taxpayers and ratepayers are
looking to optimize the efficiency, effectiveness and control over government and the
public services they receive. We believe this is happening at all 1evels of government as
witnessed by the pending referendum in Quebec. Metropolitan Toronto is no exception.
We would like to address individuality the four points outlined in your
mandate. As Hydro Commissioners, elected by the electrical consumers of North York,
we will focus primarily on hydro issues as they relate to your mandate,
1.
Some City services such as roads and traffic, water supply and waste
disposal do have a counterpart at the Metropolitan level which leads to the perception;
rightly or wrongly, that there is duplication of services. Hydro service is fundamentally
different. Each of the six cities or borough that you are visiting has a Hydro
Commission that operates independently. There is no counterpart at the Metropolitan
level. If there is any perception of duplication or confusion with consumers as to who
their electrical supplier is, that confusion would be between Ontario Hydro and the local
utility. In fact, Ontario Hydro is the generation and transmission authority while the
local utility looks after distribution. It is because Ontario Hydro is so large and often
attracts bad press about their large debt and high rate increases that many consumers
assume they are direct customers. When this confusion arises we are quick to point out
that North York Hydro, as their supplier, is debt free and has reduced rates for the past
two years. We have recently launched a public education campaign called Your local
power people to reduce the confusion between the provincial and local authorities.
- 2 -
2.
We strongly urge you to consider the benefits of local Hydro
Commissions. Local control means we tailor the services to our customers
requirements. The major variables in our industry are price, reliability, accessibility,
aesthetes and customer service, A good example of local influence is a study we
recently completed on the use of surface mounted vs. below grade transformers in
residential underground areas. We could save $5 million dollars over the next fifteen
years by changing to surface mounted transformers as we rebuild our underground
system. Most neighboring utilities have standardized on surface mounted transformers.
Our customers have responded very clearly to us that they will not accept surface
mounted transformers even if it means higher costs. What is acceptable in some utilities
is obviously not acceptable in all, In our business, one size does not fit all. The present
system of municipal utilities allows for local differences and local input.
As elected Commissioners we are accessible. When a customer calls our
switchboard and asks for me, the phone on my desk rings and I answer it. If Im not
there, I personally return the call.
-
Have you ever tried to reach the Chairman of
Hydro?
3. Services Which Should be Coordinated Regionally and the Most
Effilcient and Accountable Method of Delivering These Services
Ontario
The question here is, would one Metropolitan Toronto Hydro utility
replacing the six municipal utilities be more efficient, effective and accountable? We
believe the answer is no. What is the optimal size for a distribution utility? In terms of
accountability it is obviously the smallest possible. The fewer customers we serve the
better we can target their needs.
When we consider efficiency and effectiveness, however, the answer is
not so obvious. Most people would use low rates as a proxy for efficiency, If we do
that and look at the 300 municipal utilities in Ontario we get some interesting yet
conflicting results. The largest utilities have some of the lowest and some of the highest
rates in the Province. Conversely the smallest utilities also have some of the lowest and
some of highest rates in the province. There does not appear to be significant economies
of scale. In fact, there is a slow but growing worldwide trend to breakup large utilities
that are seen as inefficient, uncontrollable and unresponsive into smaller more
manageable and accountable utilities. If there is any cluster of low rate utilities in
Ontario it would appear to be in the medium size utilities. In Metropolitan Toronto the
two smallest utilities have significantly lower than average residential rates.
There is no evidence that a Metropolitan Toronto utility would result in
lower overall rates, In fact, it is more likely that everyones rates would increase except
in the City of Toronto where rates would probably go down. I visualize a situation
similar to market value tax assessment, only in reverse.
- 3 -
4. Best e
In Ontario, each Hydro Commission is solely responsible for its own costs
subsidies. Hydro receives no tax subsidies and in fact pays taxes to the Province through
water rentals and Ontario Hydro debt guarantee fees (not to mention collecting GST for
the Federal Government), Most municipal utilities are debt free and all are non-profit.
We collect just enough revenue to cover our costs. Any surpluses or deficits are
refunded to customers or collected from customers the following year when rates are
adjusted.
In summary, we hope our comments will help you reach the right
conclusion, We urge you to study closely the benefits of local Hydro Commissions
particularly with respect to accountability, accessibility, local control and efficiency.
Thank you for the opportunity to be heard, If you have any questions we would be
pleased to respond.
THE CORPORATION OF THE
TOWN OF OAKVILLE
OFFI CE OF THE
MAYOR
September 27, 1995
VIA COURIER
1225 TRAFALGAR ROAD
P.O. BOX 310
OAKVI LLE, ONTARI O
L6J 5A6
TELEPHONE: (905) 338-4173
FACSI MI LE: (905) 815-2001
Dr. Anne Golden
Chair
The Greater Toronto Area Task Force
393 University Avenue
20th Floor -2001
Toronto, Ontario
M5G 1E6
Subject: Submission by the Town of Oakville
Enclosed are ten copies of the Submission by the Town of Oakville for review
and consideration by you and your Task Force colleagues.
The Submission was approved by the Oakville Council at is meeting on
September 25, 1995.
I have greatly appreciated the opportunity to meet with you on numerous
occasions to discuss the issues and challenges that we are facing in the GTA. I
hope that our exchange of views has been helpful to you in the preparation of
the Task Forces report to the Provincial Government which I am looking
forward to reading when it is released later this Fall.
All the best to you and the other Task Force members as you move into the
final critical weeks of your very important assignment. Please be assured of
the willingness and interest of the people resources in Oakville in providing any
additional information you may require.
Ann Mulvale
Mayor
Town of Oakville
ks
Encl.
lgold
SUBMISSION TO:
THE GREATER TORONTO AREA
TASK FORCE
SEPTEMBER 25,1995
TABLE OF CONTENTS
PAGE
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
KEY ISSUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.
2.
3.
4.
5.
6.
7.
8.
9.
Strengthen and Focus on Local Municipalities . . . . . . . . . . . . . . . . . . . . . . 1
Self-Determination Through Permissive Powers . . . . . . . . . . . . . . . . . . . . 2
Overhaul Existing Property Tax and Assessment System . . . . . . . . . . . 2
Province to Develop Policy for Consistent Taxation Throughout
the GTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Eliminate Business Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Revise Provincial Legislation to Permit innovative Financing and
Permissive Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Province to Assist Metro and its 6 Area Municipalities in Meeting
Their Financial Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
A NewGTA Level of Government Should Not be Created . . . . . . . . . . . 6
10, Allocation of Service Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
11. Review of Size of Councils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
12. Roles and Responsibilities of Separate and Public School Boards . 10
CONCLUSI ON . . . . , , . . . . , . . , . , . . . , . , . . , . . , . . , . . . . . . . , . . . , . , . , . . . 10
APPENDIX A Property Class Factor Index
:
(._A . . . . . . . . . . . . . . . . . . . . . . 11
APPENDIX B Enterprise Fund Case Study, Building Department
Clark County, Nevada ,.,.,, . . . . . . . . . . . . . . . . . . . . . . . . . . 12
SUBMISSION BY
THE CORPORATION OF THE TOWN OF OAKVILLE
TO
THE GREATER TORONTO AREA TASK FORCE
INTRODUCTION
The Council of the Town of Oakville appreciates the invitation to submit its comments
to the Greater Toronto Area Task Force in its examination of the economic viability and
competitiveness of Metro Toronto and governance in the Greater Toronto Area.
The objective of the Task Force is to provide recommendations to reform the future
direction of governance in the GTA. This no doubt will involve the restructuring of
responsibilities and practices of the municipal, regional and provincial governments to
promote accountability, improve effectiveness and cost efficiency of services to citizens
and relieve pressure on taxation.
This is the first major review of local government in the Greater Toronto Area in well
over 20 years. Over that time, the local governments in the GTA have developed an
enviable performance record of delivering services to their communities. However,
rapid growth, major economic and technological changes and concerns about levels of
taxation have contributed to the need to re-examine the major governance issues to
ensure the continuing viability and quality of life of the GTA.
In this submission which was approved by the Oakville Council on September 25, 1995,
the emphasis is on identifying key areas where change needs to be considered. it
does not dwell on the many notable successes that do not require reform. Rather, we
have chosen mainly to provide succinct comment of key issues that the Task Force
should address.
KEY ISSUES
1. Strengthen and Focus on Local Municipalities
The local municipal role must be strengthened to maximize efficiency, effectiveness
and maintain fiscal accountability.
The organization of the GTA should reflect the individuality and diversity of the lower
tier municipalities. They have strong community identities which is evident from the
development of their own community specific standards and facilities, and particular
style of government.
Local government is the level of government nearest to the people and therefore is the
most responsive and receptive to individual community needs. For this reason, local
municipalities should be given more control over how programs and services are
administered within their communities.
The clarification and clear delineation of service responsibilities, and the incorporation
of a co-ordinated one stop shopping approach wherever possible will improve
customer service and enhance local governments role within the community.
2. Self -Determination Through Permissive Powers
There is a critical requirement for the Province to recognize the need for, and
implement means to achieve permissive power in legislation affecting municipalities
such as the Municipal Act and other statutes. Permissive power would enable the
municipalities themselves to determine the most effective and responsive means to
deliver services and exercise responsibilities at the municipal level.
The move to permissive power within municipal legislation would be a positive
undertaking from both a Provincial and municipal perspective. It would lessen or
remove the friction between the Province and municipalities because it would, by
extending flexibility within permissive legislation, remove the imposition of
Province-wide solutions when, in fact, Province-wide problems do not necessarily or
generally exist.
Permissive power would assist the taxpayers in holding the municipal service providers
more accountable for efficient and effective service delivery. Municipalities would have
responsibilities to fulfill and would have the opportunities to meet their obligations via a
flexible spectrum of action.
Municipalities are able and willing to be in the forefront to take on strengthened
responsibility and accountability rather than hide behind the lack of responsibility that
results from being a creature of the Province.
It is time for a fundamental redefinition of the Provincial-Municipal relationship to take
place. It is now readily apparent that the mature capabilities of local governments in
the GTA must be recognized. Municipalities are actively seeking to be empowered to
carry out their purposes within broadly defined spheres of jurisdiction rather than to be
shackled by a myriad of Provincial legislative requirements. This approach has been
modelled by the Province of Alberta in its relationship with its municipalities and should
be pursued by the Ontario Government in consultation with its municipal constituency.
3. Overhaul Existing Property Tax and Assessment System
There has already been extensive research and discussion on the need for major
revisions to the existing property tax and assessment system including the recent
report of the Fair Tax Commission. The concerns about the system have been
articulated for several decades but little headway has been made to effect progressive
Page 2
change. The seriousness of the situation is currently exemplified by the economic and
fiscal crisis that is facing Metropolitan Toronto. However, it is also having a serious
impact throughout a much wider area,
Issues surrounding the assessment system have been studied extensively for the past
few years at the local and regional levels in Halton. In February, 1995, the Oakville
Council established the Oakville Citizens Committee on Property Tax Reform which
has been diligently studying the region-wide market value assessment (MVA) issue and
examining alternatives. A detailed study of the unit value assessment (UVA) method
has been completed utilizing sample assessments from across Halton Region and the
results will be forwarded to the Provincial Government.
At the beginning of 1996, region-wide MVA is scheduled to be implemented in the
Region of Halton. It will impose an assessment system which compares property
values across Halton Region rather than the current system of comparing values within
each municipality,
The Oakville Council in June, 1995, formally requested the Province to impose an
immediate moratorium on the implementation of any region/county/municipal market
value reassessments pending the Provinces review and consideration of the issue of
municipal property tax reform.
Any new assessment system should result in a region-wide tax base which eliminates
inequities among taxpayers with similar types of properties within municipalities and
should be fair, accountable and economically competitive, In addition, the new system
should:
B be simple and be understandable by the property ratepayers;
B eliminate wide fluctuations;
B be easy to phase-in over a period of time;
B be less costly to administer than the current MVA system; and
. not be required to be updated every four (4) years.
4. Province to Develop Policy for Consistent Taxation Throughout the GTA
Currently, the property assessment of municipalities within the GTA is based on a
variety of market value years, from the 1940s to 1984. In addition, the effective tax
rates applied against properties, i.e. residential, multi-residential, commercial and
industrial, is different within every municipality and varies substantially between
municipalities. This is especially evident in Metro Toronto where the tax rates on
multi-residential and non-residential property owners are substantially higher than other
municipalities within the GTA, as shown on the Property Class Factor Index table which
is attached as Appendix A. As a result, businesses are moving to take advantage of
lower property and business tax rates. It is, therefore, important that a consistent
Page 3
taxation policy be developed to ensure the continued economic viability of the
downtown core and of the GTA as a whole.
The Town of Oakville Council believes that this issue is one of the GTA Task Forces
greatest challenges.
5. Eliminate Business Tax
The existing business tax is a costly one to administer as it requires its own billing and
assessment and is often difficult to collect. It results in substantial tax losses to
municipalities, especially during difficult economic times.
The same revenues could be obtained by incorporating this tax within the
non-residential realty tax base. By doing so, unpaid taxes would be a lien on the land
and could be recovered by municipalities through tax sales,
The merits of restructuring the business tax have been fully addressed in the report of
the Fair Tax Commission,
6. Revise Provincial Legislation to Permit innovative Financing
and Permissive Taxation
A fundamental requirement for municipalities to be able to exercise their
responsibilities and to be held accountable is to have unfettered and clearly defined
access to adequate revenue sources.
A restructuring of the financial mechanisms to sustain strong local government is
clearly overdue.
From international experience, a number of financing options are achievable and
workable such as municipalities receiving a percentage of corporations taxation,
income tax, sales tax or lottery proceeds, As well, municipalities need the ability to
make their own determination of the appropriate services where user fees would be
applied to cover all or part of the costs.
By operating within permissive legislation, which directs that certain services must be
provided or that specific mandates must be executed, with enhanced financial
resources, it would allow municipalities to have access to an adequate funding pool to
determine their priorities within the overall legislative framework,
Municipalities must also be given new freedom to become more financially innovative
and flexible. New opportunities to provide services are emerging through such
mechanisms as public/private funding partnerships.
position to move forward with these opportunities in
citizens.
Page 4
Municipalities must be in a strong
order to meet the needs of their
This approach would ensure that municipal Councils can be held fully accountable for
their priorities and investment decisions when they have adequate financial resources.
7. Province to Assist Metro and its 6 Area Municipalities in Meeting
Their Financial Problems
The Oakville Council clearly recognizes the paramount importance of sustaining the
political, financial, economic, social, cultural and recreational health of the communities
of Metropolitan Toronto. The fundamental need to support that position has been well
documented in many submissions and other research activities.
However, many of the financial and economic challenges that are confronting Metro
Toronto are a reflection of leadership and decisions that have been made within Metro.
The perception exists that Metro Toronto has enhanced by its own choice certain
services beyond the levels that are mandated by the Province. There is also an
impression that Metro has higher staffing levels than other municipalities for some other
services and that the differential may not be particularly justified.
There is a willingness to understand that Metro may face some different issues and
challenges due to its urban diversity and complexity. However, as long as questions
remain about service and staffing levels, there should be no transfer of funds from
other municipal jurisdictions to assist Metro. This is particularly critical as other
municipalities are already operating at lower service levels and any transfer of funds
would unacceptably penalize these municipalities. The responsibility to resolve the
situation clearly lies with Metro with any extra financial assistance being provided
directly by the Provincial Government.
The other municipalities in the GTA should not be held financially accountable for the
problems that exist within the Metro Area and should not be required to shoulder any of
Metros financial burden. The solid financial management practices which have been
carefully nurtured by communities like Oakville must not be jeopardized.
8. Revise Form and Function of Regional Government
Since the creation of regional government in Ontario, there have been over 50
individual initiatives across the Province to review it. However, the results of these
efforts have produced minimal change,
Too many layers of government are costly and create duplication and loss of
accountability to the taxpayer. The structure of regional government in the GTA
should be reviewed and revised to eliminate any areas of duplication or redundancy
currently existing between the regional and local governments,
Page 5
In addressing this concern, Oakville has been an active participant for the past few
years in a project initiated in Halton involving the Chief Officers of the four area
municipalities, the Region and two School Boards to identify areas for streamlining
operations. The project produced combined cost savings approaching $3 million in
several areas and established the foundation for a broader self-initiated review to
address the fundamental reform of local government service delivery within Halton. In
addition, the Regional Council has recently approved the transfer of solid waste
collection from the 4 area municipalities to the Region. It is anticipated that this
initiative will result in a further savings in the range of $500,000 to $1 million per year.
As part of its review of regional government functions, the Task Force should give
serious consideration to the creation of a utility type of board or commission. Under
this form, there may be a strong future for each Region to co-ordinate and deliver
cross-municipal types of service such as garbage pick-up and waste management,
water purification and distribution, sanitary sewage collection and treatment, and
perhaps hydro services.
A potential model for the Task Force to consider is presented in Appendix B which
outlines the Enterprise Fund Program utilized by the Building Department in Clark
County, Nevada. The principles utilized in this model merit serious consideration in
moving to a utility type of structure.
9. A New GTA Level of Government Should Not Be Created
A new GTA level of government should not be created as it would only serve to
exemplify the many difficulties the GTA is currently experiencing with duplication and
loss of accountability.
It is not appropriate to establish an additional governmental structure and
administration at a time when the Province, municipalities and the private sector are
trying to reduce staff due to financial pressures.
The GTA Mayors Committee should continue to be a forum for the discussion of issues
that arise from time to time that are of common interest to the constituent municipalities,
The focus should be on developing policy statements and recommendations for
consideration by the municipal councils in the GTA,
To effectively address the various issues pertaining to the GTA, it is imperative that the
Provincial Government establish a single point of contact within the Cabinet for regular
dialogue with the GTA Mayors Committee, There must be a Cabinet Minister or
Cabinet Committee assigned and dedicated to this vital function with full authority to
coordinate and act on cross-Ministry issues affecting g the municipalities in the GTA,
An improved interface between the GTA Mayors Committee and the Provincial
Government would provide an enhanced opportunity to regularly discuss and address
Page 6
critical issues facing the GTA municipalities. From Oakvilles own experience, this new
approach must be instituted to expedite issues relating particularly to economic
development where short timelines are critical.
10. Allocation of Service Responsibilities
It has been widely recognized that a rationalization of some services needs to occur to
optimize service delivery in an effective, efficient and accountable manner. Despite
several attempts to move forward in this area, such as the discussion and negotiations
centred on disentanglement and the review undertaken in the Hopcroft Report, reform
efforts at the Provincial level have been stalled.
As outlined in Section 8 of this submission, Oakville is actively involved with its local
government partners in Halton in a further service streamlining and restructuring
project. Oakville is proud of the service improvements that have been made through its
own corporate reorganization in 1992 and the additional achievements that have
occurred subsequently. The Town is committed to continuous improvement of its
services with an emphasis on providing quality service.
The Towns experience in the delivery of a wide range of services provides a strong
background for putting forward suggestions for reform in the delivery of some services.
The following changes at the local, regional and provincial levels of government are
recommended for consideration by the Task Force.
a) Local Level
Planning Services
More land use planning authority needs to be delegated to the local level from the
regional level in recognition of the strong capabilities and expertise that area
municipalities have. The current division of responsibilities for planning administration
at the municipal level leads to frustration and delays in the policy development and
approval processes. Local municipalities should be empowered to take on more
responsibility for land use planning, The fragmentation of the function weakens the
accountability of the decision making process and gives rise to a needlessly
complicated system which is often difficult for citizens to understand.
If local municipalities were given enhanced planning responsibilities and the regions
were responsible for utility type functions, there would still need to be a coordinating
mechanism for planning at a regional level or a GTA level. A strong planning focus
would continue to be required to deal with the allocation of various infrastructure
services and the planning of major service extensions,
Page 7
Economic Development
The economic development function should be maintained at the local level, with a
concentration on retaining existing business and attracting new ones. By having this
function at the local level, municipalities are able to provide one stop shopping for
business clients in terms of co-ordinating business development processes and readily
providing information on such issues as land use planning, zoning, building
regulations, transportation, financial requirements, etc.
On a larger scale, there is a need to develop a marketing strategy for the GTA to
enhance its competitive edge in the global market place. The strategy should be jointly
formulated by a GTA co-ordinating group in concert with the Provincial Government.
The GTA Mayors Committee and the Greater Toronto Co-ordinating Committee have
demonstrated that through co-operative efforts, the municipalities are able to
co-ordinate and contribute significantly to the economic growth and prosperity of the
GTA.
Public Transit
A mechanism needs to be developed to improve integration among the transit systems
in the GTA to facilitate the movement of citizens across the area. Consideration also
needs to be given to establishing a GTA based transit system such as the
amalgamation of the Government of Ontario Transit and the Toronto Transit
Commission. The local municipalities could continue to provide their own transit
system to permit intra-municipal movement and to feed the larger system.
If the regions become responsible for utility type functions, there is merit in considering
the transfer of transit service to it and determining if that approach will enhance
co-ordination and integration while recognizing the role of transit in overall
transportation planning,
Emergency Services
Emergency response to medical calls is frequently duplicated by the Fire Department
and the Ambulance Service. Realignment of this function needs to be examined to
achieve optimum service in a more cost effective manner. Consideration should be
given to developing an effective means of integrating fire and ambulance services at
the local level to produce greater service efficiencies. As well, reciprocal service
arrangements should be developed among municipalities to ensure that municipal
boundaries do not impede economies and efficiencies for these emergency services.
Page 8
b) Regional Level
Section 8 of this submission puts forward suggestions for a revised form and function of
the regional level of government.
c) Provincial Level
The principle of pay for say, whereby the government body which sets program policy
should also be responsible for the full funding requirements associated with each
policy, must be fully adopted. This would ensure complete accountability for each
program and reduce confusion for the same taxpayers that all levels of government
serve.
Public Health, Social Services, Education and Policing are some of the key areas
where this principle must be applied in the Provincial-Municipal relationship,
The actual delivery of a service, however, should be undertaken by the most
appropriate level of government in the most effective and cost efficient manner.
Therefore, some fully funded Provincial services could be delivered under a contractual
agreement with municipalities. It is also recognized that careful review of private/public
service delivery options will likely become increasingly important.
Special Purpose Bodies
The role of special service bodies needs to be examined to strengthen their
accountability and ensure that they are the most efficient and effective means in
delivering services.
When municipalities are mandated to provide a level of funding for special purpose
bodies, there is often little opportunity to have a meaningful review of the funding
request. Municipalities are accountable for providing the funding but have restricted
discretion in adjusting it. Therefore, the funding arrangement between municipalities
and special purpose bodies must be re-examined and clarified.
11. Review of Size of Councils
Regional and local councils are in the best position to undertake any review of their
political structures to reflect the needs of their constituents. Self-determination of the
composition of elected bodies is a clear reflection of the ability that municipalities have
to provide effective political representation in their communities. By way of examples of
effective local leadership in this area, the Town of Oakville revised its ward system in
time for the 1991 municipal election to meet the needs of its rapidly growing
community. At the regional level, the Halton Council has initiated a review of its
Page 9
structure involving issues related to the method of selecting of the Regional Chair,
composition of the Council and the method of electing the Councillors,
12. Roles and Responsibilities of Separate and Public School Boards
School Boards are an integral component of the local government system and are
supported by over half of the property taxes that are collected. The Sweeney Task
Force has recently completed its interim report on the education system which has
been circulated for comments, A strong and prosperous future for the GTA is vitally
dependent upon a first class education system for the youth of its communities.
Therefore, it is incumbent upon the Provincial Government to focus any changes in the
education system on achieving optimum value for the investment that is made in our
schools.
The funding of education is an issue that has been the subject of considerable review
and study by others. It is not appropriate for the property tax to be a funding
mechanism for education and the Province should take action to give much greater
financial support to education.
CONCLUSION
The Town of Oakville recognizes that change must take place in order to meet the
current and future challenges that the GTA will face.
In this submission, the Town has commented on a number of key changes and issues
that it commends to the Task Force for consideration in its review of governance
issues.
The Town of Oakville has already established a proud record of progress and
innovation in meeting the challenges of a rapidly growing community. It looks forward
to building on its successes, but in order to do so, further changes must occur to
strengthen local government and redefine the Provincial-Municipal relationship.
The Oakville Council trusts that its comments will be carefully considered and that the
Task Forces recommendations will reflect the change imperatives that are set out in
this submission.
* * *
Page 10
APPENDIX A
PROPERTY CLASS FACTOR INDEX
GREATER TORONTO AREA
m u l t i
municipality
residential residential commercial industrial
Metropolitan Toronto
Toronto C 100 497 300 239
Etobicoke C 100
396
194 314
Scarborough C 100 331 187 298
North York C 100 378 2 2 3 314
York C 100 421 208 .359
East York B 100
452
238 388
Durham Region
Oshawa C 100, 246 173 286
Ajax T 1001 233 118 149
Clarington T 100 267 114 176
Pickering T 100 187 113 131
Whitby T l00 185 119 151
Brock Tp 100 116 163 220
Scugog Tp 100 176 136 189
Uxbridge Tp 100 249 167 270
Halton Region
Burlington C 100 235 120 194
Halton Hills T 100 187 114 182
Milton T 100 267 134 162
Oakville T 100 260 113 199
Peel Region
Brampton C 100 159 107 155
Mississauga C 100 174 118 133
Caledon T 100 162 84 153
York Region
Vaughan C 100
158
91 153
Aurora T 100 219
99
199
Markham T 100 226 154
163
Newmarket T 100 162 114
168
Richmond Hill T
100 219 112
158
Whitchurch - Stouffville T
100 278 93
185
East Gwillimbury T
100 182 101
163
Georgina T
100 161 140 179
King Tp
100 169 153
206
Note: Residential Class Factor = 100
Source: Ministry of Municipal Affairs, MARS database; April, 1995.
Page 11
APPENDIX B
Enterprise Fund Case Study
Building Department
Clark County, Nevada
The workload of building departments is driven by the construction industry. The construction
industry workload is driven by the whims, wishes, and wants of an incredible diverse, complex,
and always changing clientele--everyday ordinary people. TO satisfy the unpredictable demands
and desires of their clientele, the construction industry has been forced to be extremely flexible
and responsive. They cannot simply build and sell. The build it and they will come
philosophy might work in movies about building baseball diamonds in corn fields, but not in the
highly competitive free enterprise world of building houses and buildings. Builders have
learned that in order to survive, they must build what their clients demand. And that all their
demands, except for doing perfect work for a less than perfect fee, change costantly. Trying to
satisfy constantly changing demands is like hitting a moving target. It can be done, But it is
very difficult and requires the agility and flexibility to respond to every unanticipated move the
target makes. Builders can do it, but they feel extremely hampered by the inflexibility of the
rules, regulations, and especially the slow procedures of the local governments and the building
departments. Unfortunately, the wheels of government grind slowly for anticipated problems,
and virtually freeze in response to unanticipated problems. Too often, when builders are asked
to build something different or unusual they feel like they are in between the proverbial rock
and a hard place. A hard place because they need to make a living and satisfy their clients
demands, and a rock because the local governments move so slow in approving land uses,
reviewing plans, issuing permits, and inspecting construction. However, as true as this is,
builders often fail to realize that building departments are also in between a rock and hard
place.
Building Officials and their staffs in the building departments want to see builders succeed.
They want local voters and consumers to get what they want and pay for from the construction
industry. Building Officials do not enjoy hindering or slowing construction projects.
However, Building Officials do not have the latitude of movement that builders do. Building
Officials cannot hire and fire overnight. They cannot decide to purchase a piece of equipment
and then do it the next day. Building Officials are bound to follow the same slow due processes
as every other department in the local government. Thus, similar to builders, Building Officials
have a hard place in the form of builders that are clamoring for action and results for the lowest
possible costs, and a rock in the form of government roles, regulations, and procedures which
make responding to their builders demands very difficult. Consequently, Building Officials
have been traditionally limited in their ability to meet the needs of the construction industry.
These limitations are even more pronounced when there are wild swings in the construction
industry. Though all industries are susceptible to the Boom/Bust business cycle swings of free
enterprise, the construction industry is arguably the most volatile, In a matter of months the
construction industry can fall from a very high, high to a very low, low. Because of this,
builders have become very flexible and fluid. They respond quickly to the dynamics of their
industry.
Page 12
AS a r ul e, gover nment s do not par t i ci pat e i n t he busi ness cycl es of f r ee
bus i nes s es come and go, gover nment s j us t gr ow. As a r es ul t , gover nmen
t hei r cl i ent s t hat are fi ght i ng for survi val i n t he fast and fl ui d worl d of f
i s t hi s mor e appar ent t han wi t h bui l di ng depar t ment s. When a bust t ur ns t
qui ckl y hi r e mor e empl oyees t o do t he addi t i onal wor k. Thi s i n t ur n dr am
wor k of t he l ocal bui l di ng depar t ment . Unf or t unat el y, bui l di ng depar t men
gover nment envi r onment , cannot qui ckl y add new empl oyees. I n t he l ong
cont i nues, t hey can hi r e mor e empl oyees, but i n t he shor t t er m, t he bui l d
caught f l at f oot ed and cannot r espond t o dr amat i cal l y i ncr eased wor k. Th
d e l a y s , f r u s t r a t i o n , a n g e r , a n d l o s t p r o f i t s b y t h e c o n s t r u c t i o n
. . .
v
. .
Though we have not
compl et el y sol ved t hi s pr obl em, t he Cl ar k Count y Bui l di ng Depar t ment , a
number of j ur i sdi ct i ons, has f ound a sol ut i on by i nt r oduci ng t he pr of i t a
f r om f r ee ent er pr i se i nt o a gover nment agency. Thi s i s done by t r ansf or m
depar t ment f r om bei ng a t ypi cal gover nment agency whi ch dr aws i t s f i na
t he t ax suppor t ed Count y Gener al Fund, t o an Ent er pr i se Fund depar t ment
f undi ng i s der i ved f r om t he ser vi ces i t r ender s.
By def i ni t i on, an Ent er pr i se Fund means:
a f und est abl i shed t o account f or oper at i ons:
1. Whi ch ar e f i nanced and conduct ed i n a manner si mi l ar t o t h
oper at i ons pr i vat e busi ness ent er pr i ses, wher e t he i nt ent of t he
gover ni ng body i s t o have t he expenses ( i ncl udi ng depr eci at i o
pr ovi di ng goods or ser vi ces on a cont i nuat i on basi s t o t he gen
publ i c, f i nanced or r ecover ed pr i mar i l y t hr ough char ges t o t he
us er s ; or
2. For whi ch t he gover ni ng body has deci ded t hat a per i odi c
det er mi nat i on of r evenues ear ned, expens es i ncur r ed and net
i ncome i s consi st ent wi t h publ i c pol i cy and i s appr opr i at e f or
capi t al mai nt enance, management cont r ol , account abi l i t y or o
p u r p o s e s . 1
Li ke pr i vat e ent er pr i se, Ent er pr i se Fund depar t ment s must oper at e sol el y
pr oduce. Thei r expendi t ur es cannot exceed t hei r r evenues. Thi s f act pl ace
bui l di ng depar t ment st af f t o vi gi l ant l y moni t or t hei r expenses and t hei r r
businesses, when revenues appear to be short, and a deficit is looming in the future, the building
department must reduce its expenses and increase its productivity, or increase its revenues. This
focus on the bottom line is clearly different than typical government operations where there is no
bottom line. Generally; government agencies develop their budgets based on forecasts and
estimates of workload and needs six months to a year before the fiscal year begins. Then, during
the fiscal year, the agencies spend the budgeted appropriations whether or not the forecasted
needs ever materialize. There is a use or lose it motivation in traditional government
budgeting. In an Enterprise Fund department the use it or lose it motive is replaced with the
save it today, because we may need it tomorrow belief found in private enterprise.
Perhaps the most important benefit derived from being an Enterprise Fund is the flexibility it
allows the building department. In traditional budgeting, building departments are part of the
jurisdictions General Fund and must compete with all the other departments for the limited
General Fund money. Because there are so many needs to be funded in all the departments,
building departments are not permitted to budget for contingencies such as dramatic upswings or
down turns in their workload caused by the volatile boom/bust cycles of the construction
Fi gur e 1
(Multiply Valuation by 1,000)
industry. When that happens, the building department is either over staffed with nothing to do,
or under staffed and causing builders to lose tremendous amounts of money while their projects
are being reviewed. By being an Enterprise Fund, building departments are able to plan and
prepare for workload upswings and down turns by budgeting for contingency overtime, out
source plan review services, or adding temporary staff. The past five fiscal years of the Clark
County Building Department dramatically demonstrate this flexibility. (See Figure 1.)
During the past five fiscal years, the construction industry in Clark County experienced a
substantial boom. The valuation of construction in Clark County increased from $646,940,219
during fiscal year 1990-91 to $1,142,322,052 during FY 1994-95. This boom in turn caused a
Page 14
corresponding increase in the building department workload as measured by the number of
permits issued and inspections. The number of permits issued increased from 32,664 to 42,746
while the number of inspections more than doubled from 103,789 to 278,322 during the same
time period.
During this five year boom, there were substantial peaks and valleys in which the amount of
construction and department workload varied from year to year. The department attempts to
forecast the peaks and valleys to be prepared to quickly and accurately process the workload for
the coming year. However, since the construction industry is one of the most dynamic and
volatile industries in the free market, it is also one of the most unpredictable. Unfortunately,
neither the building departments, the banks, the state governments or the federal governments
forecast have been consistently accurate enough to be reliable. Therefore, in order to meet the
unanticipated peaks and valleys, the building department needed a flexible response that
allowed it to expand to meet the construction industrys expansion, and then to contract when the
industry slowed. The department was able to do this by having the ability to budget
contingency funds for overtime and outside plan review services.
During fiscal year 1991-92, the construction industry produced over $300,000,000 more in
construction valuation then in the previous fiscal year. This translated to a corresponding
increase in planschecking and other building department services. In order to review all the
plans for the new construction projects, the building department needed more planscheckers.
However, the department had a dilemma in that if it hired more planscheckers and the increased
workload was just a momentary spike, then the new employees would need to be laid off in the
very near future, Fortunately, the department had budgeted a contingency fund of $600,000 for
outside planschecking. Thus, when the 1991-92 surge hit the building department, the
department was able to channel the increased workload to a contracted planschecking firm
named Willdan. In fiscal year 1990-91, the department payed Willdan $186,549. With the
The following year 1992-93, the surge subsided. The department met the contraction of the
construction industry by reducing the amount of work it sent to Willdan. This is reflected in the
amount paid to Willdan during that year -$357,932.
Then during fiscal year 1993-94 the construction valuation soared to $1, 029, 859, 301 causing
the departments workload to explode. Over 45,000 permits were issued and 269,303 inspection
were performed. The department met the increased workload by increasing the work sent to
Willdan and by increasing the amount of overtime worked by the departments employees to
$428,431
The construction boom continued through fiscal year 1994-95. In that year, over
$1,142,322,052 in construction valuation was permitted. The department issued 42,746 permits
and completed 278,322 inspections. The department took a different approach to meeting its
workload. Rather than increasing the amount of work sent to Willdan, the department kept the
Page 15
. is looming in the future, the building
activity, or increase its revenues. This
government operations where there is no
air budgets based on forecasts and
are the fiscal year begins. Then, during
ions whether or not the forecasted
tion in traditional government
r lose it motive is replaced with the
.tund in private enterprise.
Enterprise Fund is the flexibility it
building departments are part of the
. other departments for the limited
.: be funded in all the departments,
.ingencies such as dramatic upswings or
bust cycles of the construction
NDs
1
I
is either over staffed with nothing to do,
is amounts of money while their projects
ing departments are able to plan and
geting for contingency overtime, out
The past five fiscal years of the Clark
e this flexibility. (See Figure 1.)
stry in Clark County experienced a
ark County increased from $646,940,219
:Y 1994-95. This boom in turn caused a
corresponding inc
permits issued and
while the number
time period.
During this five y.
construction and d
forecast the peaks
the coming year.
volatile industries
neither the buildin
forecast have been
unanticipated per
allowed it to expa
industry slowed.
contingency fund
During fiscal year
construction valu
increase in plans
plans for the new
However, the dep
workload was jus
very near future.
outside planschec
department was a
named Willdan.
1991-92 surge,
The following t
construction ind
amount paid to
Then during fisc
the department:
were performed
Willdan and by
:
$428,431.
The construction
$1,142,322,052
and completed:-
workload. Rath
ease in the building department workload as measured by the number of
, inspections. The number of permits issued increased from 32,664 to 42,746
of inspections more than doubled from 103,789 to 278,322 during the same
ar boom, there were substantial peaks and valleys in which the amount of
partment workload varied from year to year. The department attempts to
and valleys to be prepared to quickly and accurately process the workload for
However, since the construction industry is one of the most dynamic and
m the free market, it is also one of the most unpredictable. Unfortunately,
g departments, the banks, the state governments or the federal governments
t consistently accurate enough to be reliable. Therefore, in order to meet the
ks and valleys, the building department needed a flexible response that
nd to meet the construction industrys expansion, and then to contract when the
The department was able to do this by having the ability to budget
for overtime and outside plan review services.
: 1991-92, the construction industry produced over $300,000,000 more in
tion then in the previous fiscal year. This translated to a corresponding
hecking and other building department services. In order to review all the
construction projects, the building department needed more planscheckers.
artrnent had a dilemma in that if it hired more planscheckers and the increased
a momentary spike, then the new employees would need to be laid off in the
Fortunately, the department had budgeted a contingency fired of $600,000 for
king. Thus, when the 1991 -92 surge hit the building department, the
ble to channel the increased workload to a contracted planschecking firm
In fiscal year 1990-91, the department payed Willdan $186,549, With the
the department paid Willdan $525,926 for planschecking services.
ar 1992-93, the surge subsided. The department met the contraction of the
istry by reducing the amount of work it sent to Willdan. This is reflected in the
Willdan during that year -$357,932.
a1 year 1993 -94 the construction valuation soared to $1, 029, 859, 301 causi ng
workload to explode. Over 45,000 permits were issued and 269,303 inspection
The department met the increased workload by increasing the work sent to
increasing the amount of overtime worked by the departments employees to
boom continued through fiscal year 1994-95. In that year, over
in construction valuation was permitted. The department issued 42,746 permits
78,322 inspections. The department took a different approach to meeting its
er than increasing the amount of work sent to Willdan, the department kept the
Page 15
work in-house and increased the amount of overtime allowed its employees. By doing this, the
department was able to decrease the combined over-time/Willdan cost from $757,586 during
1993-94 to $696,592 for fiscal year 1994-95.
Over the past five fiscal years, the building department has been able to meet the unanticipated
and volatile changes in the construction industry by budgetting for contingencies. Typically,
General Fund departments are not permitted to encumber such large amounts ($500,000 to
$800,000) of the jurisdictions revenues because of the other competing and important needs of
all the other jurisdictions departments. By being an Enterpise Fund department, the Clark
County Building Department has been able to raise its own revenues by charging its clientele for
the services it renders and budget appropriately for the dynamic industry it seines.
Page 16
OFFICE OF THE
MAYOR
September 27, 1995
Dr. Anne Golden
Chair
The Greater Toronto
THE CORPORATI ON OF THE
TOWN OF OAKVILLE
Area Task Force
393 University Avenue
2Oth Floor . 2001
Toronto, ON M5G 1E6
Dear Dr. Golden:
Subiect: Case Studies of Provincial-Municipal Interface
As a follow-up to our meeting on September 14, 1995, I have requested staff
to prepare a few case studies of roadblocks that have been encountered due to
the Provincial-Municipal Interface.
Attached are three (3) case studies which are examples of the delays and
frustrations that regularly confront us in processing municipal business.
Clearly these examples pinpoint the need for charges at the Provincial level to
enable municipalities to fulfill their responsibilities expeditiously and to meet
the expectations of our community.
The Province must remove itself from overregulating municipalities. If the
Province must maintain a role in certain issues, it must have the ability to
respond quickly to its customers: the municipalities. At the same time, the
Province must respect the capabilities and expertise of municipalities in dealing
with issues. If roadblocks are still encountered at the Provincial level,
municipalities must have a well defined mechanism to deal directly with high
level Provincial authority to expedite matters. The Office of the Provincial
Facilitator, as cited in case study no. 3, is an example of what is required.
I hope that the information in the case studies that I have provided will be
helpful to you.
Kindest regards,
Ann Mulvale
MAYOR
TOWN OF OAKVILLE
mkwcorr\lgo1927
TOWN OF OAKVILLE
PROVINCIAL INTERVENTIONS
THAT IMPEDE
MUNICIPAL
EFFEcTIvEness AND Efficiency
I
CASE STUDY NO. 1
ROADWAY CONSTRUCTION
ROADWAY CONSTRUCTION
Background
The Town of Oakville is constructing Neyagawa Boulevard between Upper Middle
Road and River Oaks Boulevard. The work includes construction of a new four lane
roadway, a bridge crossing the Shannons Creek and a pedestrian underpass. In order
to avoid having the contractors equipment and trucks access the site via residential
streets (including streets with elementary schools), the Town provided for the
construction of a temporary haul road between the north limit of our construction site
and Hwy. #5. The approximate cost of the haul road was $100,000. The haul road in
addition to accessing the current phase of construction would also serve the next two
phases of Neyagawa Boulevard construction.
In order to connect the access road to Hwy. #5, a permit from the Ministry of
Transportation( MTO) was required.
Provincial Permit
In applying to MTO for the necessary permit, we encountered a number of difficulties.
First, to ensure that the haul road could be completed in July to accommodate the start
up of our project, we initiated discussions in March, 1995 with the MTO. Without
providing all the details, we did not receive a permit until the end of August 1995. This
timeframe was only met with the assistance of the local ward councillor and local MPP.
Therefore our access road sat for almost a full month without use because of the delay
in providing the permit.
When the permit was issued, the access to Hwy. #5 was denied between 7:00 a.m. and
9:00 a.m. weekdays because of potential conflicts with the morning peak traffic on Hwy.
#5. Alternatively, the Town could route the construction traffic across River Glen
Boulevard to Towne Boulevard where unsignalized access to Hwy. #5 for all moves
could be made. In our view, the access at Towne Boulevard onto Hwy. #5 is no more
safe than our construction access. To route the traffic in the morning across River
Glen Boulevard was not considered desirable during the morning peak because of
potential safety concerns for school children going to the elementary school on River
Glen Boulevard.
Because of the restriction by MTO and our concern for school children in the area, the
contractor has been very limited in what work they can perform between 7:00 a.m. and
9:00 a.m. This is certainly affecting their efficiency on site. The effective use of the
haul road that was constructed has been reduced, therefore, the full benefit in our
investment in its construction has not been fully realized.
CASE STUDY NO. 2
ECONOMIC DEVELOPMENT
ECONOMIC DEVELOPMENT
In March of 1994, Ford commenced a construction program to build a
1.1 million sq. ft.
Paint Shop for its existing Truck Plant, which would improve its production capability
and quality. The total investment, including equipment and structures, is estimated to
be $400 million dollars.
one of the many items to be resolved prior to the releasing of the Building Permit was
the location and design of storm drainage ponds, and the overall design of the storm
water treatment system for this part of the Joshua Creek.
After extensive review with our Development Engineering staff, and staff of the Halton
Region Conservation Authority, we were in a position to release the approval for the
design of this system, but were prevented from doing so by the Ministry of the
Environment, who at a very late stage required six weeks to provide final clearance.
With the direct help of Mayor Mulvale, we were able to find a contact in the office of the
Ministry of the Environment who was able to expedite this approval in a matter of a few
days.
The design approval was a final step prior to the issuance of the full Building Permit for
the Paint Shop. Application for the Building Permit had been made on May 11, 1994;
and Ford was anxious to commence construction prior to the first of October in order to
have an opportunity of closing in the building, therefore allowing for the installation of
equipment and the preparation of the building for production in the fail of 1995. The
final Building Permit was issued on September 21, 1994.
The issue, however, is, given the guidelines which the Ministry has clearly set out for
the treatment of storm water, and which is followed by both the Conservation Authority
and our staff, whether it was necessary for the Ministry to be involved at all.
CASE STUDY NO. 3
coMMUNITY PLANNING
COMMUNITY PLANNING
The Town of Oakville is currently in the process of implementing plans for its Uptown
Core, a major mixed use district at the intersection of Dundas Street and Trafalgar
Road. Dundas Street (Kings Highway #5) is still under provincial jurisdiction. At the
south east corner of the intersection, there is an existing grocery store with an entrance
and exit onto Dundas Street. It is our understanding that this entrance has status
because of the length of time it has been in existence.
Substantial redevelopment is about to occur around this grocery store (Longos) and
shall involve the construction of more than 400,000 square feet of additional retail
services. The municipality had requested that the developer co-ordinate a plan with
the existing grocery store to ensure safe vehicular movements along the Dundas Street
corridor.
The traffic engineers have reviewed all of the plans and elected to relocate the existing
entrance to Longos as a right-in, right-out only. This is commonly done to eliminate
crossover traffic on high volume roads, This was agreeable to Longos because they
have come to agreement with the development company which surrounds them and will
co-ordinate design, parking and layout such that this entrance to the consolidated
commercial block shall be at a safe distance from the Dundas Street/Trafalgar Road
intersection. The principal entrance to the development shall be located on a ring road
which shall intersect Dundas Street at an approved location. It is the position of the
Ministry of Transportation of Ontario that the existing entrance to the Longos Grocery
Store should remain as is, notwithstanding our assertions that it is sub-standard and
should be closed and relocated a greater distance away from the intersection. We
have agreement between the Town of Oakville, the grocery store owner and the major
developer in the area, however, we may have to change what we consider to be the
best plan to one which is definitely sub-standard due to the Ministrys historical position
on jurisdiction and entrances.
SOLUTIONS
This type of occurrence is not an isolated incident. Not less than six months have
passed since this same Ministry requested road widenings on development land to the
west to ensure a full highway cross section. This was done in light of the fact that the
municipality was implementing its approved Official Plan which had been in place for a
number of years and had been prepared in consultation with the Ministry of
Transportation.
The impact on two major subdividers would have been significant had the matter not
found its way to the Office of the Provincial Facilitator. Dale Martin succeeded in
tempering the request of the Ministry on the basis that their ultimate requirement
request was not in any provincial plan or budget. In addition, there has been
considerable discussion for a number of years dealing with the potential transfer of
jurisdiction of Highway #5 to the Region of Halton.
In this particular case, the MTO seemed to be bound by standards of the right-of-way.
In the main case (Longos) the existing entrance doesnt meet approved standards but
because of tenure, it is what the Ministry wishes to remain. From the municipal
perspective, we get mixed messages and inflexible positions.
An ultimate resolution to this dilemma has to deal with the jurisdiction of the
right-of-way. Within an urban area the needs of local municipalities best represent the
consumers of the service. Our goals for Highway #5, certainly reflect a far more urban
type of roadway and will change the highway characteristics which have existed in the
past. This is not to say that it is at all inappropriate for a Provincial Ministry to ensure
appropriate standards for its highways, however, as growth occurs, perhaps the
jurisdiction should change and the Province should divest itself of these rights-of-way
which are not a part of the major system such as the 4 series highways, Q. E. W., etc.
Our experience with the Office of the Provincial Facilitator in this example was more
than satisfactory and to solve our latest dispute, we may seek assistance again. The
advantage in using the Office of the Provincial Facilitator was the speed at which
parties could be assembled and a decision made, quite unlike the formal process
where objections and referrals are placed before the Ontario Municipal Board. This
type of an example may demonstrate the potential for alternative dispute resolution and
perhaps a greater role the Province could play in defining these gray areas between
jurisdictions.
To
Members of Regional Council
From
Chair Emil Kolb
I have been following the progress (or lack thereof) on the cleanup of a
management site on Cadetta Road in Brampton. Recently, the matter
Date
October 6, 1995
Subject
AC. Valley
Cadetta Road
recycling/waste
was before the
courts and I thought I would share the information I received from staff on this matter. It
is quite illuminating and very disturbing because, after all is said and done, we still do not
have a start date for the cleanup of the site.
The owners of A.C. Valley on Cadetta Road in Brampton were charged with contempt of
court after failing to comply with a court injunction to clean up the above mentioned
property. The court injunction was issued after the issuance of numerous warnings, an
order and charges by the MOEE to have the property cleaned up were ignored. A
considerable amount of construction and demolition waste was deposited on this property
since the early 1990s until as recently as May of this year. The owners, Marisa and
Giovanni Ravallese declared bankruptcy on May 1, 1995.
Essentially the contempt proceedings were carried forward as the Ministry of Environment
and Energy felt that the bankruptcy was not legitimate. The MOEE felt that the Ravalleses
did have funds to clean up the site.
AC. Valley had its assets seized which included heavy equipment and vehicles. The seized
property has been assessed and will be auctioned off to pay for clean-up costs. The
bankruptcy seizures are expected to raise $283,000. It is not clear at this point the exact
amount of waste on site or the cost of clean-up but estimates range from $300,000 to
$2,000,000. These estimates were based on private consultants and the MOEE.
The MOEE attorney asked that the Ravalleses be sentenced based on the seriousness of
their disregard for the- court and the environment. It was asked that Mr. Giovanni
Ravallese be sentenced to serve 1 year in jail and his wife Marisa Ravallese be sentenced
to serve one month in jail. The court found the Ravalleses to be in contempt of court.
Giovanni Revallese was sentenced to 90 days in jail to be served intermittently (on
weekends) and Marisa Ravallese was fined $2,000.00, a fine that will survive their
bankruptcy. The proceeds of the respondents will be used towards the clean-up of the site.
The applicants (Attorney General and the MOEE) shall be granted their costs of the
motion on a party by party basis as assessed.
- 2 -
As for the start of clean-up, there have been no announced plans to date. The property still
has a large pile of waste material on it. There is no fence around the site and there is no
gate at the front entrance. The roadway entering onto the site has been blocked off with
large stones but this site is still accessible to anyone who wanted to dump waste. Most of
the debris is wood material.
Needless to say, this is not good news, especially if the site takes considerably more money
to clean up than resources available.
EVK:lS
The Town of Richmond Hill
P,O, Box 300
225 East Beaver Creek Road
Richmond Hill, Ontario
Canada L4C 4Y5
(905) 771-8800)
OFFICE OF THE MAYOR
William F. Bell
Fax (905) 771-2500
VIA FAX
October 10, 1995
Mayor Robertson
Town of Brampton
Im attaching a draft response prepared by our staff It admittedly rambles a bit but it was
thrown together quickly and I simply ran out of time to try to condense it and make it a
1ittle more punchy.
There was an episode mid way through the page 1 #l situation where a planner at
Municipal Affairs took it upon herself to advise us in writing that Municipal Affairs would
do our planning for us, It led me to say publicly that we didnt need a bunch of Provincial
bureaucrats Iiving on one acre lots in Oakville doing our planning.
What really happened with the page 3 #4 situation is that Ministry of the Environment told
us our studies were inadequate while admitting that they had never been read, The gall!
Aurora says it best, Get rid of Provincial Checkers.
Regards,
/
William F. Bell
Mayor
attach.
w
DRAF T
Mayor Peter Robertson
Chair, GTAMayors Sub-Committee
on Local Government
City of Brampton
2 Wellington Street
Brampton Ontario
L6Y 4RZ
West
Dear Mayor Robertson:
Further to your fax of October 4, 1995, the following are several areas of provincial municipal
interface that we feel require streamlining.
In the area of detailed case studies that illustrate provincial intervention that impedes the
effectiveness and efficiency of municipalities properly carrying aut their mandate, the following
are several:
1. In the recent approval of Official Plan Amendments and implementing zoning by-laws and
Plans of Subdivision for the 1,000 acre concession block bounded by Major Mackenzie
Drive, Bayview Avenue, Leslie Street and Elgin Mills Road, we endured an excessively
long OMB Hearing, The Chairman of the Hearing sat for only a few hours every day and
what was to be a six week hearing dragged on over a year. In that process, the Chair of
the Hearing, on several occasions made comments that his job was to "finish the planning
for the area. With that thought in mind, subdivisions and zoning by-laws were
consolidated before the Chair, making it impossible for municipal staff to negotiate
appropriate conditions for Draft Plans of Subdivision. Plans that were submitted to the
Town less than a week prior to being scheduled to be heard, were dealt with by the Board
without the municipality having the necessary time to review them. In this specific case, if
the Board Member had dealt with the Official Plan in a timely fashion at, the beginning of
the Hearing instead of dragging it out the municipality would have been able to comment
effectively on the various draft plans that were then submitted and could have been in a
position to have those draft plans approved without the necessity to be before the OMB
and with the municipal approval being given before the date that it was issued by the
Board.
...2f
in other words, more effective time management of the OMB process to approve the
Official Plan Amendments and then letting the municipality get on with its business, after
the Official Plan had been approved would have benefited all - the developers could have
had their approvals sooner, the municipality would have been able to negotiate more
effective conditions of draft approval, and the Board Chairman could have been better
utilized on other cases elsewhere.
2. A similar situation existed in the North Urban Area of the Town of Richmond Hill, where
a large pan of the Town was subject to being designated as an urban area and a very
lengthy OMB Hearing ensured. At the end of the Hearing the Board Chairman indicated
that he would be releasing his decision in writing at a later date and dates were set aside to
deal with functional servicing plans and Plans of Subdivision within the new urban area.
Some months later, at the time scheduled for a pre-Hearing conference on the various
plans of subdivision the Board issued its decision. This left the municipality and the
landowners in a position where they had to review the modifications made to the official
Plan by the Board and understand the implications of those modifications on the various
plans submitted. Where necessary, significant revisions to the already subrnitted plans had
to be made. With Hearing dates already scheduled for various Plans of Subdivision
neither the developers, nor the municipality had adequate time to do justice to the
revisions and to come up implementing zoning by-laws and conditions of draft
approval for the various Plans of Subdivision. Ministry comments on functional servicing
plans were not and still are not available.
Again more effective scheduling and better use of the Boards time could have benefited
ail.
3. Current Health and Safety legislation requires committees made up equally of management
and employee representatives to review safety in the workplace, to review and recommend
the implementation of policies and practices to make the workplace a safer one, and to
inspect various work stations from time to time. In the Fire Service, with only two
management personnel allowed under the Fire Departments Act (the Chief and Deputy
Chief being the only management personnel allowed) and with the interpretation of the
Provincial Ministries that a separate health and safety committee is required for each fire
station; if the Joint Health& Safety Committees are to do justice, the management
representation could end up doing nothing but health and safety work. In fact union
members who hold senior ranks in the Fire Departmrnt, have been designated as
management representatives on the Joint Health & Safety Committees. Either less
stringent interpretations of the number of committees that are required is necessary, or
additional management employees should be allowed in the `Fire Service; or both.
,..3/
-3-
4. In preparing technical studies done to determine the impact of development on the
environment in the Lake Wilcox/Oak Ridges area the municipality asked various
provincial ministries to provide their comments on the adequacy of terms of reference
developed and to participate in the technical steering committee that would review the
work being done as it progressed. At the time, the Ministry of the Environment indicated
to the Town that it was too busy to assign appropriate staff the task.
Subsequently, when the final work was completed, it was referred by residents to the
Environmental Assessment Advisory Board to determine whether a full Environmental
Assessment was required, the Ministry of the Envioronment then indicated that the studies
undertaken by the Town were inadequate. One of the results of that determination was
the establishment of a group to review development guidelines in the Oak Ridges Moraine
and the assignment of appropriate Ministry of Environment staff to that task.
We submit that if the Ministry had been exercising its mandate at the beginning, it would
have commented on the terms of reference and would have been involved in monitoring
the ongoing studies thereby negating the need for additional expensive studies that added
several years to the process`.
Turning to areas where the provincial/municipal interface needs to be streamlined, the following
are several suggestions as to how this could be accomplished:
1. In Planning matters, the various provincial ministries `.should either define what kinds of
items are those of provincial significance and keep its comments to those items. Those
comments should be made at the Official Plan stage and then once local OfficiaI Plans have
been adopted, the municipality should be able to process planning applications without the
necessity of referring back to the various ministries.
If the Province is unable or unwilling to state its concerns in a policy format up front and
then rely on the technical expertise of local municipalities to ensure chat various provincial
policies are complied with, then a second option exists.
The Province could modify the Planning Act to indicate that if Provincial Ministries do not
comment on local planning matters within a specific time frame (I would suggest 6 weeks)
and if comments were not received by that time, then the municipalities could take the lack
of comments to mean concurrence with the application and the municipalities could
proceed without Provincial comment.
The latter option would allow the Province to determine which applications it felt were
important and to comment on them. It could staff up to whatever level it felt was
appropriate to deal with the matters it w anted to comment on. While the latter would
work I favour the former.
..4/
.4-
2. We have all seen audit teams from the Ministry of Transportation in our municipal offices.
Their role is to audit the various matters that are subject to provincial subsidy to determine
whether or not municipalities subsidy applications conform with the Regulations in that
regard.
All of our financial transactions are subject to audit by our external auditors, Most
municipalities in the GTA no longer receive the maximum subsidies that are allowable by
the MTO, since the MTO has capped subsidy payments. Therefore, it would seem that
the MTO audit staff is no longer required, By ceasing to provide MTO auditors, the
Province could save considerable money in staffing and municipalities could save a
considerable amount of staff time reviewing matters that are currently subject to provincial
audit.
3. While the Province has made a step in having the MTRCA be the commencing agent for a
number of matters that used to also be the jurisdiction for the Ministry of Natural
Resources, I would suggest that the Conservation Authority be given authorization to be
the commenting agency for all MNR matters. This could eliminate considerable
duplication.
While I could go on with a number of other instances, time precludes that. I hope that the above
is of assistance.
Yours very truly,
W, F, Bell
Mayor
/ ss
September 28, 1995
Dr. Anne Golden
Chair
Greater Toronto Area Task Force
393 University Avenue, 20th Floor-2001
Toronto, Ontario
M5G 1 E6
Dear Dr. Golden:
151 Bloor Street West
Toronto, Ontario M5S lT6
Telephone (416) 961-1660
Fax (416) 961-7796
Toll-Free 1-800-387-0058
151, rue Bloor ouest
Toronto (Ontario) M5S 1T6
Telephone (416) 961-1660
Telecopier (416) 961-7796
Saris frais 1-800-387-0058
ONTARIO ARTS
COUNCIL
CONSElL DES ARTS
DE LONTARIO
page 2 of 3
1. Regional Responsibility for Arts and Cultural Development and Support in
the City Core
You have flagged the prospect of a downward spiral in the central city as
one of the key issues for the whole GTA -- and an issue that must be
addressed through reform in the area of municipal finance.
Torontos healthy city core depends on the presence and vitality of a
concentration of major arts and cultural activities whose positive economic
and social impact is felt throughout the region. And it is the very presence
of this concentration of arts activities and facilities that creates the critical
mass required to achieve international cultural prominence and to act as a
major tourist destination.
The large organizations in the core serve a community that extends beyond
the City of Toronto and Metro. As other submissions to the Task Force have
shown, significant proportions of the audiences and attendees of these arts
organizations live outside of the city and regions boundaries. In addition,
many have education programs that reach across the province.
We believe that all jurisdictions that benefit from the major arts organizations
and activities in the Toronto core should share in their funding. For its part,
the Ontario Arts Council recognizes that the presence of local and regional
arts organizations benefit the larger community, and fulfills its responsibility
for sharing in their support as a major funder of these organizations. In
1993/94, OAC provided $20.8 million in grants to over 1,100 artists and
430 organizations in the Greater Toronto Area.
At the municipal level, the regional arts organizations and activities located
in the city of Toronto are currently funded by both the city (through the
Toronto Arts Council) and by Metropolitan Toronto. If the Metro Toronto
government is eliminated, its $6.6 million in cultural funding must be
maintained. To eliminate the government of Metropolitan Toronto without a
regional mechanism to replace this cultural funding would place the full
burden of support on City of Toronto taxpayers for major cultural amenities
that clearly serve the metropolitan and GTA regions.
The regional government approach has generally worked well in providing a
mechanism for planned development and shared responsibility for arts across
Metro. Whether or not the government of Metro Toronto continues to exist,
there is a need for some form of regional cultural development planning and
funding (e.g. taxation) that extends across the Greater Toronto Area. A co-
ordinated regional approach is essential to maximize the benefits derived
from the arts and culture sector and to ensure that those who enjoy the
benefits of these activities contribute appropriately.
ONTARIO ARTS
COUNCIL
CONSElL DES ARTS
DE LONTARIO
page 3 of 3
2. Local Arts and Culture Development and Support in Area Municipalities
Hand-in-hand with the need for regional responsibility for a healthy city core is
the need for development and support of the arts in the local municipalities
throughout the Greater Toronto Area.
The arts and culture sector has the potential to contribute to the economic
development and quality of life of each area municipality. To reach this
potential, the arts and culture must be recognized as a viable economic sector
and must be included as a matter of course in local economic planning.
Specifically, culture should be incorporated into local economic development
plans, and taken into account in such areas as core improvement, local facilities
development, transportation planning and service to new communities. Area
municipalities must maintain and augment their funding of arts within their own
boundaries and adopt a co-ordinated approach to local cultural development.
This approach garners social benefits to the community as well as economic
dividends. A full range of cultural groups in GTA communities express and
share their culture through the arts. In this way, the arts serve as a unifying
force in the community.
To sum up, your Terms of Reference identified several fundamental questions
Paul Hoffert
Chair
Introduction
OCCSPA/APECCO, the Ontario Community College Student Parliamentary
communautaires de lOntario, is a bilingual lobbying and networking group
for st ud ent s of Ont ar ios Colleges of Applied Ar t s and Technology. The
Association represents over 138,000 college students in Ontario.
OCCSPA/APECCO is a unique organization which focuses on educational
issues.
The mandate of OCCSPA/ APECCO is to represent Ontario college students
on mat t er s of common concer n. The Associat ion also gat her s per t inent
information regarding issues, problems and/ or solutions concerning college
students.
The Association has a strong commitment to information sharing and meets
regularly with other provincial associations such as the Student Board of
Gover nor s, t he St ud ent Life Gr oup, t he Ont ar io Und er gr ad uat e St ud ent
Alliance and OCCSPA/ APECCOs counterparts in both Alberta and British
Columbia.
The 25 colleges offer t r aining at 900 sit es in 200 communit ies and have
approximately 700,000 registrations annually.
OCCSPA/ APECCO Submission to Golden Task Force, 1995
1
790 Bay St., 11th Floor, Toronto, ON M5G 1N8
Tel.: (416) 325-2195 B Fax: (416) 325-1792
The Golden Task Force has the mandate to make recommendations to the
gover nment on issues in t he Gr eat er Tor ont o Ar ea (GTA) and wit h six
colleges in the area, we must make recommendations regarding possible
comments regarding the colleges. College students would be in favour of
eliminating some of the red tape that currently wraps itself around the college
system.
Ontarios 25 colleges of applied arts and technology should be flexible in
management and leadership, They should take the initiative in program
design and delivery, there should be effective support, continuous planning
and assessment. Currently our colleges are capable of this, however, some
action must be taken to ensure that the colleges remain competitive and
student focused. The real test of Ontarios education system will be how well
it pr epar es st udent for t he new wor ld of wor k. OCCSPA/ APECCO is
concerned about our Toronto colleges and want to ensure that Ontarios
commitment to education is maintained in the Greater Toronto Area.
In light of the current economic situation, the trend in the nineties is to do
more with less. This type of forced belt tightening has resulted in sometimes
short sighted cuts to education. There are hidden costs to underfunding.
Fiscal r est r aint s have pr ohibit ed colleges fr om making need ed changes,
sp ecifically imp r oving comp u t er syst ems, bu ild ing maint enance and
initiatives such as mediated technologies that could save dollars in the long
term. Students are losing support services, borrowing more, paying more but
are they getting more?
As students, we urge that all changes to education be done with some thought
and consid er at ion given t o t he long t er m implicat ions for t he syst ems
clients.
It has been said that there is not a need for six colleges in the GTA. The
questions of quality, access and accountability must be closely examined before
any adjustments are made to the colleges.
OCCSPA/ APECCO Submission to Golden Task Force, 1995
2
Recommendations
Administration Reduction
Any dollars saved through the reduction of administration should remain
within the college system. System savings should be directly focused on
improving the classroom. College students fall behind highschool students
in terms of state of the art computer facilities. This does nothing to encourage
high school students to attend our institutions. College students through
their identified elected student union, government or association should
have direct input on the allocation of these new funds, (direct input could
be defined as requiring mut ual approval by t he college board and t he local
st udent associat ion before t he designat ed funds are spent . ) Th i s t yp e of
agreement echoes an earlier precedent set by the Ministry of Education and
Training in regards to compulsory tuition related ancillary fees.
The funds should be directed at, but not limited to:
B
increasing the acquisition of library materials and expanding the hours
of operation of libraries,
B
increasing the acquisition of computers for student use,
B
improving campus security
B
providing more information to students on job prospects related to
their program of study.
The Premiers Council on Economic Renewal noted that lifelong learning
should be the foundation for the provinces economic renewal. Most people
will change career directions several times over the course of their working
lives. As a result, our education and training systems need to change if they
are to meet the needs of the lifelong learner. Learning will be the cornerstone
of Ontarios future. In order for our colleges to realize the philosophy of
lifelong learning, our system must not be bound by normal time boundaries,
singular intake and traditional modes of delivery.
OCCSPA/ APECCO Submission to Golden Task Force, 1995
3
In 1994, t he Council of Regent s (t he ad visor y bod y t o t he Minist r y of
Education and Training on colleges) headed up a multi-partner stakeholder
commi t t e e t o e xa mi n e a l t e r n a t i v e mod e s of d e l i v e r y a s we l l a s
technologically mediated instruction.
Alternative modes of delivery
t he cr eat ion of pr ogr ams for
scheduling. Technologically
examined compressed and flexible delivery,
specific t ypes of st ud ent s and year r ound
med iat ed inst r uct ions includ ed comput er
simulat ions, comput er upgr ad ing, and vid eo confer encing. Should t he
Commi ssi on r ecommen d a sa vi n gs in ad minist r at ion amalgamat ion,
moneys could be focused on pilot projects of these types of deliveries before
they are implemented system-wide.
The College of Metro Toronto
Much has been
however, serious
college from the
said about the benefits of an amalgamation of colleges,
consideration should be given to the implications of a super
student perspective. For example, a single parent with a
college one half hour from home will likely attend and have some comfort
knowing his/ her childs daycare is nearby in the event of an emergency.
However, if that same parents program was to be transferred to a college two
hours away, that parent would have to face moving or significant travel and
time away from their child. The parent would likely have to add another
year of study to accommodate the travel and would miss the eight oclock and
six oclock classes. This could have implications for access, student debt load
and student attrition.
Program Rationalization
The notion of program rationalization has been bantered about for a number
of years as an effective cost saving measure in the college system. This has
imp licat ions for s t u d en t a cces s , s u cces s a n d cl a s s s i z e. Pr ogr am
rationalization may not be an effective tool for cost savings due to the transfer
OCCSPA/ APECCO Submission to Golden Task Force, 1995
4
of increased costs to the student and to the college that receives the larger
program.
Programs that are considered community programs (programs in applied
arts, technology, business and health sciences) and available at all colleges
should not be rationalized. Programs that may be unique to some colleges
should be examined. It may be beneficial to reduce programs (for example,
post diploma programs) that occur in numerous GTA colleges. However,
befor e pr ogr am r at ionalizat ion is ut ilized as an oppor t unit y t o impr ove
cu r r ent p r ogr ams, cer t ain measu r able st and ar d s of su ccess mu st be
incorporated into any new, amalgamated program.
Students would require guarantees regarding the number of available seats in
a particular rationalized program. Students who are currently enrolled in the
program at their original college should be entitled to complete the program
at the original site. Students would not support program rationalization
where student access is compromised.
The theory of program rationalization has to be examined with all students in
mind, both part time and full time. Part time students would suffer as a
result of program rationalization if the number of spaces in the program was
not a combination of the seats in existing programs.
Business and Industrv Partnerships
Colleges have been exploring business and industry partnerships as a method
of improving facilities and obtaining direct access to equipment and students.
Cur r ent ly, t hr ee colleges in t he GTA st and out as lead er s in t his ar ea;
Geor gian has a st r at egic alliance wit h Canad ian Aut omot ive Inst it ut e,
Humber has the open learning center and Centennial has worked with Bell
Canada to create the Bell Centre for Creative Communications. The partners
in the Bell Centre have invested large amounts of money for both student
education and employee training. Any changes to the Toronto colleges will
have to be made with these sensitive partnerships in mind.
OCCSPA/ APECCO Submission to Golden Task Force, 1995
5
Conclusion
Our Association, OCCSPA/ APECCO, wants to be part of the process in any
discussions with regard to the 25 colleges of applied arts and technology.
OCCSPA/ APECCO has a history of working with the provincial government
to find solutions to the problems that face college students and the college
system. It is vital that college students actively participate in the challenges
that face the system.
OCCSPA/ APECCO Submission to Golden Task Force, 1995
6
OAKVILLE CITIZENS COMMITTEE
ON PROPERTY TAX REFORM
UVA IMPACT STUDY
Report and Recommendations
Technical Report
September, 1995
Oakville Citizens Working for Equitable Regional Taxation
Table of Contents
Report Summary
Purpose
Introduction
The Oakville Committees View on Property Taxation
The Case Against Market Value Assessment
What We Are Recommending
Appendix
UVA Impact Study
Description of UVA Alternatives Tested
Chronology of MVA Reassessment in Halton
i
1
1
2
3
5
A-1
A-4
A-6
Oakville Citizens Committee on Property Tax Reform
Report Summary
The Oakville Citizens Committee on Property Tax Reform has undertaken a preliminary
review of the impacts of a unit value assessment (UVA) based property tax system on
residential properties throughout the Region of Halton. This note summarizes the key
points raised in its more detailed report.
The Findings of Our Study
A unit value based system is one which taxes the size of a property rather than its value.
A UVA system takes into account the size of land and the size of building describing the
property. The rates applied against each of these tax bases may differ.
Our statistical investigation of the current market value assessment based system
(MVA) revealed the following:
residential property tax differentials across Halton reflect different building sizes,
different area municipal locations, different neighborhood locations within each area
municipality and, to a far lesser extent, different land size
a simple, straight forward, understandable property tax system consisting of one tax
rate applied to each square foot of building, and a separate tax rate applied to each
square foot of land, can be developed
implementation of a unit based property tax system would eliminate the type of wide
swings in the relative property tax base inherent in the proposed MVA based system
unit based factors can be phased in over any period of time considered appropriate
the relative factors on buildings and land -- and any flat rate per unit that might be
charged -- can be altered overtime as considered appropriate
initial unit based tax rates can be developed which have little more impact on the
current levels of residential property taxes throughout Halton Region than the
impacts expected as a result of the proposed region-wide MVA reassessment
The Committee recognizes a more detailed study of UVA is required, but is encouraged
that these preliminary results suggest a simple UVA formulation which minimizes tax
shifts can be devised,
What Is Wrong With MVA?
The Oakville Citizens Committee on Property Tax Reform objects to the current MVA
based property tax system on the following grounds:
B
B
B
B
B
B
B
B
B
the MVA basis for taxation is inherently unstable overtime and across geographic
areas
the current system in Ontario requires arbitrary updates to a common base year
every four years
the use of moving averages of relative property values overtime does not eliminate
the random impacts of shifting relative values on taxes paid
intermittent updates to the tax base, therefore, will always foster divisiveness among
area municipalities within commonly assessed geographic areas
the acceptable margin of error of provincial assessors in assessing relative
property values within the same neighbourhood is an incredible plus or minus 25
percent
because property values tend to fall as distance from the urban core increases, MVA
tends to encourage urban sprawl (all other things being equal)
within the current system it is very difficult to determine the true burden of property
taxation across different property types as the current system does not assess all
property classes at full market values
the current MVA system is expensive to administer
the Fair Tax Commission has raised significant doubts about the presumed
correlation between incomes and residential property values, thus casting
considerable doubt on the justification of MVA on the basis of ability to pay
What We Are Recommending
Given the drawbacks of the current MVA system, and given the inherent strengths of a
UVA based system -- its greater stability, simplicity, visibility and accountability, and that
such a system will reduce the costs of government at a time when the province is
seeking ways to do so - the Oakville Citizens Committee on Property Tax Reform
recommends The Town of Oakville should petition the Province of Ontario:
B
B
B
B
to declare a moratorium on market value reassessments throughout the province
to reiterate its request for a detailed review of the impact of UVA on property taxes in
Halton Region and several other areas of the province (the Oakville Citizens
Committee study described above and in the attached Appendix strongly supports
the Town of Oakvilles original position that such a study should be undertaken)
to permit The Town of Oakville and other municipalities to implement property tax
systems within their jurisdictions, irrespective of the property tax base used in other
communities
to liaise with the growing number of communities throughout Ontario of like mind on
the issue of property taxation
I l l
Oakville Citizens Committee on Property Tax Reform
UVA Impact Study
Report and Recommendations
Purpose
This is a technical paper prepared by the OakVille Citizens Cornmittee on Property Tax
Reform aimed at supporting the need for a Province of Ontario initiated Unit Value
Assessment (UVA) study and supporting the Town of Oakvilles request for a
moratorium on MVA reassessments.
Introduction
In the fall of 1993 Oakvilles members of Halton Region Council supported
implementation on January 1, 1996 of a region-wide reassessment of property taxes
based on 1992 property values. This supporl was provided on the understanding that
the Province of Ontario would initiate a study of the impacts of a Unit Value Assessment
(UVA) property tax system in Halton Region, a key recommendation of the Halton
Citizens Committee on Property Tax Reform.
No such study was ever initiated by the Province.
Over the course of the last six months the Oakville Citizens Committee on Property Tax
Reform has carried out its own study of the impacts of a UVA based system on
residential properties. The Committee began its research by developing residential
property impact estimates on a sample of data for Oakville provided to the Committee by
The Town of Oakvilles Finance Department. The analysis was extended to include
region-wide data compiled by the Regions Finance Department for the Halton Citizens
Committee.
On the basis of this region-wide analysis -- the details of the Cornmittees research
appear in the accompanying Appendix - the Oakville Citizens Committee on Property
Tax Reform concludes the following:
B
a simple, straight forward, understandable property tax system consisting of one tax
rate applied to each square foot of building, and a separate tax rate applied to each
square foot of land, can be developed
. implementation of a unit based property tax system would eliminate the type of wide
swings in the relative property tax base inherent in the proposed MVA based system
Oakville Citizens Committiee on Property Tax Reform
Page 2
B unit based factors can be phased in over any period of time that may be considered
appropriate
. the relative factors on buildings and land and any flat rate per unit that might be
charged - can be altered overtime as may be considered appropriate
. initial unit based tax rates can be developed which have little more impact on the
current levels of residential property taxes throughout Halton Region than the
impacts expected as a result of the proposed region-wide MVA reassessment
These points are substantiated in the attached Appendix.
In view of these findings the Oakville Citizens Committee recommends that:
B
a unit-based property tax system -- one taking into account the relative size of
properties, rather than the relative value -- should be considered for the Region of
Halton
. the unit based system chosen should be as pure as possible (that is, it should take
into account a minimum number of factors)
. if Halton Region is not prepared to go along with a unit-based system, the Town of
Oakville Council should seek the legislative means to implement a unit based
assessment system on its own for the purpose of collecting regional, town and
school boards levies in Oakville; these efforts should include working with other
municipalities of like mind in petitioning the province to obtain this right
This report summarizes the research undertaken by the Oakville Committee on a unit
based assessment system and describes the basis on which it reached its conclusions.
The Oakville Committees View on Property Taxation
At the outset of this report the Oakville Citizens Committee on Property Tax Reform
wishes to make clear the following:
. the best taxation relief that can be provided to taxpayers is that obtained through
reducing government spending at all levels
. government spending can be reduced through:
a combination of contracting-out to -- or partnering-with -- the private sector for
services currently provided exclusively by governments
Oakville Citizens Committee on Property Tax Reform Page 3
the increased use of user fees, where feasible, to bring a degree of market
discipline to the provision of government services; and
the obtaining of greater control over the budgets of special purpose bodies
B
where government services are deemed essential from the point of view of income
redistribution (such as welfare), or where the benefits spill-over from one area of the
province to another (such as education), such services should not be financed on
the basis of property taxes; income or sales provide a more appropriate tax base in
such cases
. we support the complete disentanglement of provincial and municipal expenditures
and revenues
The Oakville Citizens Committee on Property Tax Reform agrees with the Ha/ton
Citizens Committee and the many others who have concluded that:
. property taxes of any kind are inherently regressive
. property taxes, however based, can never be considered fair on the basis of the
ability to pay criteria of fairness
B
unit based property taxes, however, when used to finance property related services,
can be considered fair when judged on the basis of the benefits received criteria
of fairness
The Oakville Committee is aware that critics of UVA often point to the almost universal
use of MVA as justification for MVAS use in Ontario. The Committee notes, however,
that the bleeding of patients and the incarceration of the mentally handicapped received
widespread support not all that long ago. Widespread use of MVA is no justification for
its continued use, especially when many Oakville property tax payers believe MVA is
both bleeding and incarcerating the taxpayer at the same time, and particularly when an
easy to understand, administratively cheaper alternative is available.
The Case Against Market Value Assessment
The Oakville Citizens Committee on Property Tax Reform believes market value
assessment is an inappropriate basis for property taxation for the following reasons:
. the MVA basis for taxation is inherently unstable overtime and across geographic
areas (see Chart 1 which reveals average resale house prices on an annual basis
over the period 1984 to 1994 throughout the GTA, relative to the GTA average)
Oakville Citizens Committee on Property Tax Reform
Page 4
B
B
B
B
B
B
B
B
if Halton goes through with the Region-wide reassessment slated for January 1,
1996 the new system will require updates every four years to a common base year;
there is no guarantee the base years so randomly chosen in the future will represent
a fair basis for comparison of market values across geographic areas; the
arbitrariness of this new base year selection puts relative property taxation on a
random footing and guarantees no standard base year will ever prevail across the
province
even the use of moving (rolling) averages of relative property values overtime does
not eliminate the random nature of this footing; such averages only smooth them out
intermittent updates to the tax base, therefore, will always foster divisiveness among
area municipalities within commonly assessed geographic areas (e.g., Scarborough
vs. Toronto in Metro, Oakville vs. Burlington in Halton, Kanata vs. Ottawa in Ottawa-
Carleton, etc.)
provincial assessors admit the acceptable margin of error in assessing relative
property values within any given neighborhood is plus or minus 25 percent, a range
that should be unacceptable to taxpayers and a practice illustrating the arbitrariness
of the current system
because property values tend to fall as distance from the urban core increases, MVA
systems tend to encourage urban sprawl (all other things being equal)
within the current system it is very difficult to determine the true burden of property
taxation across different property types because the current system does not assess
all property classes at full market values; the current system hides the fact that multi-
residential properties are taxed more heavily than other residential properties, that
residential properties are taxed less than commercial or industrial properties, etc.
the current MVA system is expensive to administer (the recent region-wide
reassessment in Halton alone cost about $3 million, a cost recurring every 4 years
and which does not include the ongoing need for obtaining assessment values for
new properties or for administering the appeals system)
the Fair Tax Commission raised significant doubts about the presumed correlation
between incomes and residential property values, thus casting considerable doubt
on the justification of MVA on the basis of ability to pay
Oakville Citizens Committee on Property Tax Reform
Page 5
What We Are Recommending
Given the drawbacks of the current MVA system, and given the inherent strengths of a
UVA based system -- its greater stability, simplicity, visibility and accountability, and its
potential to reduce costs at a time when the province is seeking ways to do so -- the
Oakville Citizens Committee on Property Tax Reform recommends The Town of
Oakville should petition the Province of Ontario:
. to declare a moratorium on market value reassessments throughout the province
. to reiterate its request for a detailed review of the impact of UVA on property taxes in
Halton Region and several other areas of the province (the Oakville Citizens
Cornrnittee study described above and in the attached Appendix strongly supports
the Town of Oakvilles original position that such a study should be undertaken)
. to permit The Town of Oakville and other municipalities to implement property tax
systems within their jurisdictions, irrespective of the base used elsewhere
. to liaise with the growing number of communities throughout Ontario of like mind on
the issue of property taxation
Councillor Kevin Flynn, Co-Chair
Sheila Biggers
Robert Higgins
Rick Kedzior
Stewart Lovie
David Porteous
Councillor Ralph Robinson
Councillor Stephen Sparling
John Hogg, Co-Chair
Ian Croskell
David Johnstone
Michael Lansdown
Tom McCormack
Bruce Rae
Alan Short
John Vail
Oakville Citizens Committee on Property Tax Reform Page 6
Chart 1
Average House Prices Within the Greater Toronto Area
Average Price by Area Municipality Compared to the GTA Average
Annual Data 1984 to 1994
T o r o n t o East York Y o r k
150-
9 0 - - - - - - - - - - - - - - - - - - - -
8 0 - - -
7 0 - - - -
6 0 -
.
84 85 86 87 86 89 90 91 92 93 94
S c a r b o r o u g h North York Etobicoke
150
140
130
120
110
100
90
80
70
60
- .
84 85 88 87 88 89 90 91 92 93 94
Note: The charts above illustrate the relative resale price of a house in each municipality compared to the GTA average. The
GTA average in each year is equal to 100. In 1994 the average resale price of a home in the City of Toronto was $282,670
compared to an average price throughout the GTA of $204,207. Thus the relative price of a home in the City of Toronto,
expressed in index form, was 138 in 1994. Relative prices are shown as the MVA based system taxes properties on the
basis of relative values.
Oakville Citizens Commitee on Property Tax Reform Page 7
Chart 1 (Continued)
Average House Prices Within the Greater Toronto Area
Average Price by Area Municipality Compared to the GTA Average
Annual Data 1984 to 1994
Mi s s i s s a u g a Other Peel Region Oakville-Milton
150
1 4 0 - - - - - - - - - - - - - - - - - -
1 3 0
1 2 0 - - - - - - - - - - - - - - - - - - - - - -
1 0 0 - - - - - -
8 0 - - - - - - - - - - - - - - - - - - - - - - - -
7 0 - -
Du r h a m Re g i o n York Region
150 -
1 4 0 - - - - - - - - - - - - ~ - - - - - - - - - - - - -
8 0
70 ---- .- -- . . . . . . . .
60 - - - - - - - - - - - - - - - - - - - - - - . . - - - - . . - - . . . - . . - - - - - - - . . - . . . -
84 85 66 87 88 89 90 91 92 93 94
Note: The charts above illustrate the relative resale price of a house in each municipality compared to the GTA average. The
GTA average in each year is equal to 100. In 1994 the average resale price of a home in Oakville-Milton was $225,824
compared to an average price throughout the GTA of $204,207. Thus the relative price of a home in Oakville-Milton,
expressed in index form. was 111 in 1994. Relative prices are shown as the MVA based system taxes properties on the
basis of relative values.
Appendix
Oakville Citizens Committee on Property Tax Reform
UVA Impact Study
Oakville Citizens Committee on Property Tax Reform
UVA Impact Study
The Oakville Citizens Committee on Property Tax Reform has carried out a preliminary
study of the impacts of a Unit Value Assessment based property tax system on the
Region of Halton,
The study included the use of a file of almost 90,000 residential properties in Halton
Region (covering property codes 301 to 399 inclusive) and of a file consisting of a
random sample of this file consisting of every tenth property in the original file. Using
regression analysis -- a standard analytical statistical tool used in biology, economics
and other disciplines for the purpose of determining the importance of one variable in
explaining another variable (nutrients on rates of growth, interest rates on spending,
building size on property values, etc.) --we attempted to explain the variation across the
region in the current taxes paid by property owners using criteria such as building size,
land size, property type (single detached, condominium, etc.) and area municipal and
ward location.
Our statistical investigation of the current market value based system (MVA) revealed
the following:
. building size is important in helping to explain the differences in taxes paid
. land size is statistically important (that is, it is valid according to statistical tests) but
the implied tax rate is so small land, in effect, accounts for very little of the current
differences in overall taxes paid
B
area municipal and ward locations are important in helping to explain the variation in
taxes across the region
. property type is also an important consideration in explaining the variation in tax
levels
Based on our overall review of the most promising UVA formula would appear to be
number 2 (UVA2) which suggests that residential properties across Halton Region
should be taxed at the following rates
$0.7439 per square foot of building, plus
$0.0009 per square foot of land, plus
a flat sum which varies by area municipality equal to $650 in Oakville, $514 in
Burlington, $453 in Milton and $465 in Halton Hills
A- 1
The relative size of this latter factor (that is, highest in Oakville, lowest in Milton) reflects
the fact that the current apportionment of taxes collected within Halton Region results in
higher taxes on the average property in Oakville and lower taxes on the average
property in Milton. This apportionment is calculated by the Region based on an
equalized assessment of relative property market values throughout the Region. This
UVA formula would result in no change from current levels in the total amount of taxes
collected from each area municipality.
The following table compares the impact of this UVA formula (called UVA2) on current
property taxes to the impact of the originally proposed region-wide MVA reassessment
based on 1988 property values (based on the one-tenth sample of 8,990 properties).
The table also shows the impacts of three other UVA formulations studied by the
Committee:
B
B
B
UVA1 does not take into account the difference in relative tax load across the four
area municipalities within the region, and thus results in tax shifts from one area
municipality to another.
UVA3, which takes into account the ward location of each property in the region,
provides a set of factors on a ward by ward basis which take into account the
difference in taxes collected across the four area municipalities and across all of the
regions wards.
UVA4 raises taxes across the region by assigning the total taxes currently collected
to the following: a flat rate amount equal to $500 per property plus one half of the
remaining taxes per square foot of building and the remaining half per square foot of
land. This formulation results in a huge transfer of the regions tax burden to those
area municipalities with residences on the largest average sized lots (that is, to
Milton and Halton Hills).
The UVA1, UVA2 and UVA3 alternatives are included to show that by adding more and
more factors to the UVA calculation it is possible to get closer and closer to the system
already in place, though matching the current system is clearly not the Committees
objective. UVA4 is included to show what happens if the factor on land is allowed to
increase beyond that determined through regression analysis.
A - 2
Based on this review the Committee concludes the following about a unit based property
tax system:
B
B
B
B
B
a simple, straight forward, understandable property tax system consisting of one tax
rate applied to each square foot of building, and a separate tax rate applied to each
square foot of land, can be developed
implementation of a unit based property tax system would eliminate the type of wide
swings in the relative property tax base inherent in the proposed MVA based system
unit based factors can be phased in over any period of time that may be considered
appropriate
the relative factors on buildings and land -- and any flat rate per unit that might be
charged -- can be altered overtime as may be considered appropriate
initial unit based tax rates can be developed which have little more impact on the
current levels of residential property taxes throughout Halton Region than the
impacts expected as a result of the proposed region-wide MVA reassessment
A- 3
Description of UVA Alternatives Tested
UVA1: Based on regression equation estimated across region. Constant term is
525.5446. Building area factor is $0.7607 per square foot. Land area factor is $0.0008
per square foot.
UVA2: Based on regression equation estimated across region with no constant term
but including area municipal factors. Building area factor is $0.7439 per square foot.
Land area factor is $0.00089 per square foot.
UVA3: As in UVA2 but estimating individual factors for each Ward across Halton.
UVA4: Assigns $500 base tax per property then apportions half of remaining tax to
buildings and the other half to land. Flat rate factor is $500 per property. Building area
factor works out to $0.3917357 per square foot. Land area factor works out to
$0.0371749 per square foot,
Impacts of Various UVA Property Tax Alternatives
0
/ 0 Change Current UVA1 UVA2 UVA3 UVA4 MVA
more than 100
80 to 100
60 to 80
40 to 60
20 to 40
0 to 20
-20 too
-40 to -20
-60 to -40
-80 to -60
-100 to -80
less than -100
Total
Avg. Taxes
o
0
0
0
0
0
0
0
0
0
0
0
0
Current
133
67
278
458
1,013
3,139
2,955
734
154
50
9
0
8,990
UVAI
141
46
284
431
1,048
3,079
2,984
793
122
55
7
0
8,990
UVA2
124
41
147
407
849
2,512
3,636
1,047
142
78
7
0
8,990
UVA3
270
59
67
128
374
951
2,798
3,666
597
73
7
0
8,990
UVA4
12
8
20
134
533
3,286
4
$
857
137
1
0
2
0
8,990
MVA
Oakville 2,130 2,037 2,130 2,130 1.572 2,227
Burlington 1,775 1,814 1,775 1,775 1,560 1,699
Milton 1,814 1,910 1,814 1,814 3,669 1,822
Halton Hills 1,749 1,907 1,749 1,749 2,799 1,767
Region 1,907 1,817 1,907 1,907 1,907 1,915
A- 4
UVA3 Ward Factors
Size
6A
LA
Ward
01
02
03
04
05
06
61
62
63
64
65
66
67
68
Ml
M2
M3
H1
H2
H3
H4
Factor
0.7439043
0.0008866
Factor
429.38
319.12
611.28
574,20
382.16
474.24
496.67
684,19
548.98
492.56
412,93
391,54
637.60
425.33
412.61
435,88
582,57
266.02
557.58
426.21
433,25
A - 5
Sept
Dec
Feb
Sept
Nov
Dec
Mar
Sept
Feb
Jun
Aug
Sept
1989
1992
1992
1992
1993
1993
1993
1993
1994
1994
1995
1995
1995
(late)
Halton Regional Council passes resolution asking Province to produce
impact study on Region-Wide Market Value Assessment.
Province releases Region-Wide MVA study using 1988 market values.
Study indicates Burlington and Milton benefit and Halton Hills and
Oakville do not.
Halton Regional Council, comprised of nine seats from Burlington, five
from Halton Hills, three from Milton and seven from Oakville (plus
Chairperson) vote in favour of Region-Wide MVA being implemented
on January 1, 1993. (Burlington and Milton vote in favour, Halton Hills
and Oakville vote against, tie broken by Chairperson.) Concerned
citizens immediately start lobbying to have decision reversed.
Chairperson moves motion of reconsideration at Special Meeting
running until 3:20 am. More than 80 people slated to speak to Council
(only two speak in favour of Region-Wide MVA) with approximately
800 in attendance. Resolution passed deferring implementation to
January 1, 1994 and formation of Halton Citizens Committee on Property
Tax Reform (HCCPTR).
HCCPTR start extensive study of reforming property tax system.
HCCPTR release Final Report strongly recommending a Unit Value
Assessment study be conducted using the Region Of Halton as a test
site.
Regional Council passes resolution requesting province conduct UVA
study in Region of Halton and begin negotiations with Province to
have compromise to January 1, 1994 implementation.
Regional Council, after consultation with Province passes resolution
shifting approximately $2,000,000 of Regional and Boards of Education
taxes to Oakville from Burlington while using current assessment
system. MVA to be implemented January 1, 1996 using 1992 market
values. No further consideration of this subject is to be done unless
75% of Council and one member from each municipality agree.
Provincial Fair Tax Commission releases $9 Million report recommending
Region of Halton be used in UVA pilot study.
Regional Council reaffirms its position to have a UVA study completed
using the Region of Halton as a test site.
Regional Council forms committee to look further at alternatives (UVA).
Burlington refuses to participate.
Oakville Council forms Oakville Citizens Committee on Property Tax
Reform.
Oakville Town Council passes resolution requesting the Province
place a moratorium of Region-Wide MVA pending complete review of
assessment system and study of alternatives.
Oakville Citizens Committee on Property Tax Reform starts petition in
support of Town Councils June resolution.
Province releases impact study using 1992 values. Citizens Committee
hosts public meeting.
A- 6
T - 4 2 3 - 5 3 5 5
F - 4 2 3 - 1 5 8 4
SUBMISSION TO
THE GREATER TORONTO AREA
TASK FORCE
PREPARED BY
DISTRICT 51- EAST YORK
ONTARIO SECONDARY SCHOOL TEACHERS FEDERAT10N
SEPTEMBER 1995
The Ontario Secondary School Teach er s Federation, District 51, East York
wishes to officially inform the Greater Toronto Area Task Force of its position
regarding the future of East York within the G.T.A. structure. While this Execultive
agrees that educational reform is n eces s a r y, t h er e a r e s ever a l a r ea s of con cer n for
which our Executive has recommendations.
Greater Toronto is a community of communities. The distinct and cooperativc
nature of these communities creates an environment that makes the G.T.A. a wor ld
class area. Wc believe that it is our community commitmcnt that has enabled us to
evolve with our changing society. As members of that community the Teachers of. the
East York Board of Education have consistently, efficiently, and economically
delivered quality education to the learners of East York,
B
We believe there is an optimum size for a school board
With a population of 100000 people and a school system of 28 schools, 15
000+ learners, and 900+ employees, our school board represents the best of both
possiblc worlds, East York is large enough to enjoy the benefits of economy of scale,
yet small enough to enjoy the efficiencies 1101 evident in larger conglomerate-type
organizations. If we look to the business world for a parallel, it is the small and
medium sized businesses that are the largest generators of growth, job creation, and,
most importantly, innovation.
1
roposals that result in the amalgamation of the
G.T.A. municipalities and schools boards will result in cost savings.
The two consultants reports commissioned by the Metro School Board on
warehousing, purchasing, and computer services
found no cost benefit to East York.
Furthermore, the consultants report on centralized purchasing and warehousing has
stated thtl there are no savings to East York. The computer services report suggested
that it would take 28 years before East York realized any savings from the
amalgamation of services. Finally, studies have shown there would bc no true cost
savings yet the damage done to the quality of education and community of students in
East York would be significant.
B
Taxation for Education is not just about money.
Education and the fundamcntalf willingness to fund it is the key to maintaining
our quality of life. While a Board must be accountable for its expenditures, education
as a process of maturity within students cannot always bc measured in dollar terms.
We do not believe you can place a dollar value on teaching or coaching self-esteem.
We arc creating contributing members of the community through the educational
process.
Every East York school is over-enrolled. We are placing portables on playing
2
fields at the clementary schools. More importantly, every high school in East York has
awaiting list of out-of-borough students who want to attend East York High Schools.
They recognize the succcss of our systcm in its present medium sized structure. The
East York Secondary school teachers are proud to say that quality education is our
business!
B East York is in a position to quicklv rcspond to the evolving
needs of its community.
East York must survive as a separate entity if it is to avoid the fate of inner cities
in the United States. Right now East York acts as a magnet and is attracting younger
people and families in order to re-energize itself. These people come to be part of the
East York community.
B
The Business Community benefits from tax dollars.
The business community has a saying that you have to spend money to make
money. Similarly, you must spend tax dollars to receive tax dollars. The pay back of
educational spending is responsible citizens and taxpayers, Businesses want to enjoy
the fruits of operating i n the GTA infrastructure and sclling in the GTA without
paving the cost of doing business. A business operating near the Skydome may
complain about the high taxes in downtown Toronto yet neglects to mention that it was
3
essentially tax money that built the Skydome and spawned the economic growth of the
area, We believe that businesses should pay its fair share.
B The issue of taxation and assessment must be addressed.
Wc believe that there must be an evolution of the present system. There are
inequities that must be addressed that mean that some are overtaxcd and some are
undertaxed. The primary thrust of any taxation and assessment reform must ensure that
municipal taxes that are collected in the G.T.A. remain in the G.T.A. The G.T.A. is the
engine that drives Ontario; we must ensure its viability. The G.T.A. and especially
Metro supported other areas of the province. Now is the time for the rest of the
province to allow the G.T.A. and Metro time to usc is tax resources to renew its
infrastructure; to renew public hard and soft public services
and rebuild / build schools as we greet new growth and immigration.
District 51, East York, O. S. S.T.F. thanks the Commission for the opportunity to
provide input and looks forward to the initial report.
August 29, 1995
Dr. Anne Golden,
Greater Toronto Area Task Force,
393 University Avenue,
Suite 2001,
Toronto, Ontario
M5G 1E6
RE: Private Sector Involvement in Solid Waste Disposal in a Reformed GTA
Dear Dr. Golden:
Among the many issues that your Task Force is examining, Im sure, is the most
appropriate method of disposing of the residential solid waste that is produced within
the GTA. I am writing you today to make you aware of the essential difference
between the two main alternatives.
Solid waste disposal facilities can either be public sector or private sector facilities. In
some cases, they are joint ventures, being owned by one sector and operated by the
other. Regardless of the model the greater the role of the private sector, the less
costly it is to own and/or operate the facility.
There have been numerous studies that confirm the greater efficiency of the private
sector compared to the public sector m the delivery of a variety of services, including
waste management services. In 1993, Dr. Donald Dewees, a University of Toronto
professor, led a research team that compared the two sectors m the collection of
residential solid waste. I am including the Executive Summary
of his report for your
information.
Among other things, the Dewees Study concluded that:
B
Empirical studies strongly support the hypothesis that the private sector is
generally more efficient than the public sector. The vast majority of studies
conclude that there are eficiency advantages to private sector provision of
most of these services. We found study that demonstrated any significant
efficiency advantage to public sector service provision
Dr. Anne Golden,
Page 2
August 29, 1995
B
We find that the private sector provides more efficient and economical
performance in most areas of waste management, and that the quality of its
performance is similar to that of the public sector.
B
Where the public sector owns the landfill site, serious consideration should
be given to private operation of the site through management contracts
B
The public sector should confine itself to setting the objectives of the system
and supervising the private sector in delivering the service.
Surely one of the goals of your mission is to recommend the most cost-efficient model
for the delivery of services to the citizens of the Greater Toronto Area. We hope that,
m the matter of waste management services, you will bear m mind the findings of the
Dewees Study and include a prominent role for the private sector environmental
service companies.
I am also enclosing some other information about the Ontario Waste Management
Association.
If you have any questions about the issues raised m this letter, or if you want any
further information please do not hesitate to contact us.
Yours truly,
Nancy Porteous-Koehle
President
EXECUTIVE SUMMARY
THE REGULATION OF SOLID WASTE MANAGEMENT IN ONTARIO
A POLICY PERSPECTIVE
by
Donald Dewees
Michael J. Trebilcock
Ian Freedman
University Of Toronto
Law School and Department of Economics
and
Brent Snell
A. T. Kearney Ltd.
April 1993
i
Acknowledgments
The authors of this study are Donald Dewees, Professor of
Economics and Professor
Trebilcock, Professor of
A. T. Kearney, Limited,
University of Toronto.
of Law, University of Toronto, Michael
Law,
and
Cara
University of Toronto, Brent Snell of
Ian Freedman, a law student at the
McKerracher,
a graduate student in
economics/ Provided valuable research assistance in connection with
the data gathering and analysis.
This study was supported by the
Ontario Waste Management Association.
The opinions and conclusions
expressed in this study are those of the authors and not those of
the University of Toronto, A.T. Kearney,
or the Ontario Waste
Management Association.
Contents
Introduction . . .
The Organization of
Waste Management in
The Policy Environment in Ontario . . .
Waste Management Policies Elsewhere . .
Criteria for Choosing Policies . . . .
Ontario
. .
. .
Theoretical-Considerations in Public Versus
Performance . . . . . . . . . . . . .
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Previous Empirical Studies of Waste Management Performance
and Costs . . . . . . . . . . . . . . . .
New Empirical Study of Ontario Waste Management
Policy Implications and Conclusions
General . . . . . . . . . . .
Residential Collection . . . .
IC&I Collection . . . . . . .
MRFs . . . . . . . . . . . . .
Landfills . . . . . . . . . .
Flow Control . . . . . . . . .
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1
2
3
5
6
7
9
11
14
14
15
16
17
17
18
Introduction
This study explores the respective roles of the public and
the private sector in waste management in Ontario.
Bill 143,
enacted by the Ontario legislature in 1992, raises, but does not
resolve, the question of what roles the public and private
sectors
require
largely
should play in the future,
and the next few years will
decisions by various levels of governments that will
resolve this question. Three general questions are
addressed.
of cost and
First, what is the comparative efficiency, in terms
productivity, of the public and the private sector in
the provision of various aspects of waste management, including
collection, separation, recycling, marketing of reclaimed
material, and disposal? Second, what is the comparative
efficiency of a shared model in which both private firms and the
public sector play a role versus a
these activities? Third, what are
answers to the first two questions
integrated waste management system
evaluation of the system described
public-sector only model for
the
for
for
implications of the
the design of an
Ontario, including an
by the Initiatives Papers that
have recently been issued by the Waste Reduction Office of the
Ministry of the Environment? Our purpose is not to develop our
own system design, nor to provide a detailed critique of specific
policy proposals. Rather we have set out to provide a broad and
general evaluation of these questions,
problem all-of the relevant theory and
bringing to bear on the
evidence that we could
-.
find.
2
The Organization of Waste Management in
Turning to the organization of the
Ontario
waste management industry
in Ontario, we find that the public sector and the private sector
are both involved in most waste management activities. The main
exceptions are the collection and hauling of industrial,
commercial and institutional (IC&I) mixed waste and recyclable
and the operation of IC&I material recovery facilities (MRFs),
which are undertaken predominantly by the private sector.
Another exception is that landfills within the Greater Toronto
Area (GTA) are operated almost exclusively by the public sector.
We find that a sizeable number of private firms compete for
the private sectors share of the market in several segments.
Eleven major operators compete for IC&I waste collection in the
Greater Toronto Area,and a larger number of firms operate just a
-
few trucks. Three large firms hold 40 to 60 percent of the GTA
IC&I market. The competition between private firms for contracts
is reasonably strong in the collection and hauling of IC&I mixed
waste and recyclable.
Fourteen firms compete for residential
mixed-waste and recyclable collection in the GTA.
Three major
firms account for 63 percent of the value of these contracts.
The Ontario Waste Management Association (OWMA) directory lists
over 70 firms operating in this segment province-wide.
In both
of these segments,there is a reasonable number of competitors,
and the barriers to entry by new firms are relatively low.
The degree of competition in the MRF segment, on the other
hand, is currently fairly low,
in part because of the early stage
SUMMARY
of development of
the prospects for
3
this sector. While future growth
competition, this will be limited
may increase
by the
existence of significant barriers to entry and the fact that
transportation costs may give individual MRFs a degree of market
power within the area they serve.
The landfill segment is similar to
competition is relatively weak although
the MRF segment in that
the landfill segment is
not in the early stages of its development. The lack of
competitive intensity is due to two factors.
First, each
landfill tends to have a relatively exclusive geographic area
and
restrictions on inter-regional waste transfer limit the ability
of waste haulers to move their waste from one geographic area to
another. Second, not only do existing landfills tend to have a
relatively captive customer base, but new entrants face
significant barriers to entering the market and challenging
existing companies for their customers. The most significant
barriers are the high cost of building the necessary facilities
and, more important, the difficulty of obtaining regulatory
approval to do so. Still, with high tipping fe e s there is some
competition among landfills, and in Southern Ontario landfills
presently face competition from U.S. facilities.
The Policy Environment in Ontario
Waste management policy is strongly affected by growing
public concern about environmental issues. This concern has led
to the development of principles of environmental stewardship
4
which include placing greater responsibility for costs at the
pollutions source and holding generators/producers responsible
for a product through its entire life cycle, from cradle to
grave. There is broad support for the 3Rs: reduce, reuse,
recycle, as a means of limiting the demand for waste disposal
space. Some call for a conversion from a consumer society to a
conserver society. While the implications of these demands are
uncertain, their existence is not.
In waste management, the Ontario Government has responded
aggressively. Policy development has moved beyond the point of
setting broad objectives for waste management and into the debate
on how best to meet them. The 1992 Waste Management Act, Bill
143, set the stage for a restructuring of the waste management
industry and a realignment of roles. Taken together, recent and
emerging policy initiatives reveal the Governments vision for a
\
highly regulated, integrated waste management system, with a high
degree of government involvement at all levels.
The Governments
plans include government determination of:
o How waste is classified and measured
o What waste goes to what facility (flow control)
o Who collects and hauls waste/materials
o Where recycling facilities are located and who owns
them
o How infrastructure costs will be financed
o How secondary materials markets should function
The implications for the private sector waste management
SUMMARY
5
industry are significant.
It is a stated public objective to
reduce the flow of waste to landfills by 25% by the end of 1992
and by 50% (on a per capita basis,
compared to 1988) within the
decade.
Landfill activities should decline, while recycling and
the transport of recyclable materials may increase.
New,
centrally planned waste management activities will be created in
municipalities across the Province.
Many of these activities may
be uneconomic and demand subsidies.
The freedom of consumers,
producers and distributors will be constrained.
New objectives
are being defined for the waste management sector that differ
profoundly from the objectives of the business as it has existed
for decades.
This changing environment will challenge the
private sector to adapt its role to the emerging public policy
objectives.
Waste Management Policies Elsewhere
Other jurisdictions are modifying their waste management
objectives and policies as well although few have taken the steps
implicit in Bill 143.
Many Canadian provinces have adopted
policies similar to those that existed in Ontario prior to Bill
143, including the establishment of beverage container deposit
fees, restrictions on the type of beverage container that may be
sold, and the establishment of recycling (blue box) programs.
B.C. has adopted waste reduction goals similar to those in
Ontario.
In the United States,
a number of states have adopted
beverage container deposit fees,
set targets for the proportion
of waste to be recycled in the
a part of waste management and
6
near future,
required recycling as
stated that recycled products will
be favoured in government procurement.
Twelve states have
mandated post-consumer recycled content for newspapers and
thirteen others have voluntary agreements with the newspaper
publishing -industry.
Many cities have residential recycling
programs or comporting programs for yard waste.
A number of European countries have also adopted similar
policies including regulations on beverage containers to
encourage recycling,
comporting of food and/or yard wastes, and
encouraging producers to recover their products and/or packaging.
Germany has been the most aggressive,
with a program requiring
labelling to facilitate the recycling of packaging, a mandatory
system for the return of discarded packaging to the manufacturer,
and bans on the marketing of certain restricted products.
There
is a target of 50 percent recycling of all packaging by mid-1993.
A private collection system has been established to recycle
household packaging,
and there is a proposal to require industry
to take back used products for recycling.
In this global context,
Ontarios policies rank as more
aggressive than those in most of North America, and more
aggressive than some European countries.
Criteria for Choosing Policies
How is one to choose among the broad classes of policies,
such as centralized government control policies versus financial
7
incentives or among the large number of specific
First, we believe that two criteria must be kept
policies?
in mind:
effectiveness and efficiency. Effectiveness refers to the
ability of the instrument to achieve the desired result.
One
must not simply assume that a given policy will achieve its
intended result. Instead, one must estimate the likelihood of
achieving a result with a specific policy, looking both at theory
and at empirical evidence arising from past use of that policy or
similar policies.
Efficiency refers to minimizing the costs of achieving the
result. Costs include costs imposed on all parties, including
costs incurred by industry in complying with the policy, costs
incurred by consumers for higher product prices, fees or taxes,
or time -consumed in complying with the policy, -and costs to
government of administering and financing the policy.
We reject
the argument that waste management policies should be pursued
because they create jobs; any job creation is likely to be
offset by job destruction arising from the increased taxes or
increased prices needed to pay for the waste management policy.
A policy should be evaluated on the merits of its costs and
benefits, assigning little weight to alleged employment effects,
given their uncertainty.
Theoretical Considerations in Public Versus Private Performance
We review economic theory to inform an evaluation of the
likely relative efficiency of the public and private sectors in
SUMMARY 8
performing waste management activities. Agency cost theory
supports the proposition that the private sector is likely to be
more efficient than the public sector. In the private sector,
there are inherent incentive structures that help reduce agency
costs. To a large extent, these incentives are absent in the
public sector, resulting
public sector. However,
compete with the private
in a less efficient, less innovative
when the public sector is forced to
sector for its
become more efficient than when it does
private sector efficiency.
survival, it
not compete,
is likely to
approaching
The literature on the theory of the firm suggests some of
the factors that influence when private sector industries arrange
for needed inputs through the firm and when they do so through
the market. These factors may also be used to assess when a
municipality will find it more efficient to provide a service
itself or to contract out. These factors include contracting
costs, negotiating costs, information costs, monitoring costs,
costs of uncontrolled chiseling, and incentive effects.
Applying this theory to the waste management sector, the
theory indicates that in general private sector provision will be
more economical than public sector provision.
However it is
important to note the costs associated with the public sector
monitoring and regulating
when private provision is
Once the decision to
providers is made, one of
the performance of private contractors
chosen.
utilize private sector service
five principal private sector
SUMMARY 9
organizational options must be chosen: contracting-out,
management contracts, franchising, licensing, and individual
contracting. Contracting-out, management contracts and
franchising are best suited to situations where economies of
scale are such as to favour monopolistic service provision. As
between these three, contracting-out is to be preferred when the
.
government wishes to continue paying for the service.
Management
contracts may be preferred when highly specialized equipment must
be used in this service because this may make competitive bidding
by alternative service providers infeasible.
Franchising is to
be preferred when the government wants citizens to pay for the
services they receive directly.
Of course a grant or voucher
system can be created to ensure that
society who may be unable to pay for
receive it. If there are not strong
low income members of
the service continue to
economies of scale, then
individual contracting may be preferred if price competition is
desired, while licensing may be preferred if regulation of non-
price factors is desired.
Previous Empirical Studies of Waste Management
costs
We then turn to empirical evidence of the
performance of the public and private sector.
non-waste management activities that have been
the public and the private sector, including fi
Performance and
relative
First, we consider
provided by both
re protection,
urban transport, airlines, postal service, rail road service,
water supply, debt collection,
electric utilities and others.
SUMMARY
10
Empirical studies strongly support the hypothesis that the
private sector is generally more efficient than the public
sector.
The vast majority of studies conclude that there are
efficiency advantages to private sector provision of most of
these services.
A small number
private and public sectors were
provision of certain services.
of studies have found that the
equally efficient in the
However, in these cases, there
were usually special circumstances surrounding the study or the
service that explained the results.
Finally, we found no study
that demonstrated any significant efficiency advantage to public
sector service provision.
Turning to the waste management sector, there is a large
body of evidence regarding the relative cost of public and
private collection of residential mixed waste.
Studies of
residential mixed waste collection conclusively demonstrate
private sector service provision is more efficient - often
substantially more efficient -
than public sector service
that
provision. Cost savings from contracting-out waste collection
range from ten percent to forty percent in studies of hundreds of
cities in the United States and Canada.
A portion of the cost
saving arises from lower wages paid to workers in the private
sector, but-wage rates account for less than half, often only one
quarter, of the savings.
Public sector personnel generally have
longer vacations,
more paid holidays,
and far higher absentee
rates than do the private sector personnel, substantially
increasing the cost of public providers.
Moreover, the
SUMMARY
11
productivity of the private sector operators is generally greater
than that of the public sector:
more waste is collected per
worker-hour or per truck-hour or both in the private sector.
These results are statistically significant and recur in
virtually every study.
Finally, the few studies that measured
service quality,
found that it was similar for public and private
providers.
Thus the empirical evidence conclusively supports the
theoretical literature in demonstrating the superior efficiency
of the private sector in waste collection.
New Empirical Study of Ontario Waste Management
We conducted a survey of waste management costs for four
activities in Ontario, gathering useful data in three:
residential general waste collection and residential recyclable
collection.
The results from our survey of landfills were
insufficient to address the policy issues of this study. We
gathered data from six operators
collection service, four private
of residential general waste
and
costs of operation and
of 37 routes.
For the
surveyed three private
the volume-of
collection of
operators and
two public,
regarding the
waste collected on a total
residential recyclable we
one public operator.
We find that for residential general waste collection,
public operators experience costs as much as 75 percent greater
than private sector operators.
See Table 1.
Public sector wages
12
Table 1
Residential General Waste Collection
Results Summary
Private Public All
Tonnes/crew member/hour
1.17 0.984
1.12
Tonnes/truck/day
23.2 10.8 19.2
Labour cost/tonne ($)
16 27 18
Equipment cost/truck-day ($)
261 248 257
Equipment cost/tonne ($)
11.2 22.9 13.4
Total cost/tonne
27 50 32
are 19 percent higher than private sector wages, public sector
benefits average 42 percent of the base wage compared to 25
percent for the private sector,
and longer paid holidays and much
greater absenteeism add another 7 percent.
See Table 2.
Table 2
Analysis of Labour Costs
Cost Element
Private Public
Difference
Operators Operators
(percent)
Hourly wage
$14.27 $16.98
19%
Benefits
25%
Wage plus benefits
$17.78
Stat. holidays &
Days taken
cost (%)
Labour cost/work
Productivity
42%
$24.07
sick days
11 25
4.58% 11.1%
hour $18.59 $26.73
35%
44%
Tonnes/crew-hour
1.17 0.984
Labour cost/tonne
$15.89 $27.17
71%
13
Lower productivity,
in tonnes per worker-hour or tonnes per
vehicle-day, accounts for a substantial part of the public sector
cost disadvantage.
important as labour
between private and
Indeed, equipment costs per tonne are just as
costs per tonne in explaining the differenc
e
public costs.
For residential recyclabl
e
Collection,
the public-private cost difference is similar.
See
Table 3.
The wage, benefit,
and absentee differences are similar
Table 3
Residential Recyclable Collection
Results Summary
Private
Public
All
Tonnes/crew-member/hour
Tonnes/truck/day
. 55
5.43
. 42
4.23
. 51
5.11
Labour cost/tonne
38
66
44
Equipment cost/truck-day
200
275
220
Equipment cost/tonne
39
63
45
Total cost/tonne
77
129
89
to those for general waste collection, as are differences i
n
productivity.
Public sector costs per tonne exceed private
sector costs by more than 65 percent.
This study offers powerful
confirmation of the earlier empirical conclusion that public
sector provision is much more costly than private sector
provision of residential collection services.
. Indeed, the
differences in our study are even greater than those of the US
studies discussed above.
The results of the study of the costs
of collecting recyclable materials are also important because
SUMMARY 14
they reveal costs per tonne more than two and one-half times as
great as the cost per tonne of collecting general residential
waste. See Tables 1 and 3. Taxpayers are paying a substantial
premium for the collection activity in the governments recycling
programs.
Policy Implications and Conclusions
General
We note that the choice of policy instruments is not simply
a choice between private sector and public sector provision of
waste management services. Instead, a wide array of arrangements
exists with different degrees of public and private sector
involvement. We believe that the choice among policies should be
made on the basis of the ability of the policy to achieve the
desired objective and its ability to do so at least cost. In
general, we find that the private sector provides
and economical performance in most areas of waste
that the quality of its performance is similar to
public sector. This does not mean that we see no
more efficient
management, and
that of the
role for the
public sector, but that the public sector. should confine itself
to setting the objectives of the system and supervising the
private sector in delivering the service. Where some public
service provision is warranted, the existence of competition from
private sector providers tends to enhance the efficiency of the
public sector providers. It is essential that the public sector
not be provided with subsidies, so that the market can determine
15
the most efficient provider.
We are concerned that the policies
being developed in Ontario today are highly centralized, with an
excessively large role given to the public sector, raising the
prospect of excessive costs in the future.
Residential Collection
More specifically, since
we conclude that for residential
general waste collection and residential recyclable collection,
contracting out to the private sector is generally far less
costly than-collection by the public sector, municipalities can
probably achieve significant economies by relying on private
collection.
Furthermore,
if a municipality engages in public
collection,
it would be prudent to contract out a portion of the
-
service to the private sector and to compare the performance of
the public and private operators regularly.
This should induce
more efficient public performance than is likely otherwise.
High landfill tipping fees paid for all waste deposited may
induce municipalities to promote residential recycling.
Mandatory source separation may also be justified, but careful
consideration must be given to choosing the items to be recycled.
The net cost of the recycling programme per tonne of waste
diverted should not exceed the tipping fee for general waste,
which should represent the opportunity cost of landfill space and
the externalities associated with landfilling of waste.
16
IC&I Collection
Currently IC&I waste,
both general and recyclable, is
collected almost exclusively by the private sector, and while we
have found no evidence of relative private and public costs, the
theoretical analysis supports the proposition that the private
sector would enjoy cost and efficiency advantages here at least
as great as those found in residential collection.
Indeed the
public sector would have difficulty meeting the varying service
needs of IC&I customers,
and would have difficulty establishing
price schedules that would reflect actual costs.
We see no
justification for the public sector to begin to provide this
collection service, particularly given the compelling evidence
that it experiences much higher costs than does the private
sector.
There remains the question of determining the appropriate
policies to encourage waste reduction in the IC&I sector. We
believe that high tipping fees,
such as those charged in the GTA,
will induce a considerable amount of source reduction,
source
separation,
and recycling activity.
Tipping fees in the IC&I
sector are passed on by the collection firm directly to the
generator thereby encouraging the generator to reduce his waste
volume,
unlike the residential sector where the home-owners pay
for waste collection through taxes and not on a per-bag or per-
tonne basis.
There may also be a role for governments in
providing information regarding costs and technology for waste
reduction,
reuse and recycling.
It is less obvious that
17
regulations such as banning specified materials from landfills or
requiring source separation of certain materials can be justified
in the IC&I sector so long as the tipping fees are appropriately
set. Such policies should at least be subject to intense
scrutiny to determine that they meet some test of cost-
effectiveness.
MRFs
It seems possible that few government policies are needed to
encourage the construction and operation of MRFs, so long as
relatively high tipping fees are charged at landfills.
With high
tipping fees,
material separation and recycling becomes an
economical means of reducing tipping costs for a source or a
municipality.
Indeed, private IC&I MRFs are already in operation
in the GTA in response to current tipping fees.
It may be
appropriate to consider mandatory source separation of a few
materials, but it seems unlikely that in this complicated and
dynamic field a government ministry will be capable
its regulations so that they reflect economical and
of adapting
efficient
practices.
We doubt that the high degree of planned intervention
by the Ontario Government in this area can be justified.
Landfills
We note the trend toward public ownership of landfill sites
in Ontario, particularly in Southern Ontario.
Further study
would be needed to evaluate this trend thoroughly,
but we are
SUMMARY 18
concerned that it may reflect the superior ability of governments
to penetrate the regulatory and political thicket of site
approval, rather than any inherent advantage of the public sector
in developing or operating landfill facilities. We conclude that
the possibility of private ownership of landfill sites should
remain open
t
and that private and public proponents of new sites
should be subject to similar regulations. Where the public
sector owns a landfill site serious consideration should be given
to private operation of the site through management contracts.
Flow Control
Flow control, limiting the landfill sites to which waste may
be sent, has grown rapidly in Ontario in recent
emerging provincial policy seems to contemplate
restrictions. While we have not fully examined
years and the
further
this policy, our
preliminary analysis leaves us sceptical that it is necessary to
achieve the goals of the waste management system.
It raises the
prospect of forcing waste generators to deal with monopolist
landfill operators, with the potential for waste and excess
profits reaped by owners, whether public or private sector. At
this time, we see risks in the expansion of flow control and
little evidence that it would have socially beneficial effects.
Empirical studies strongly support the hypothesis that the private sector is
generally more efficient than the public sector. The vast majority of studies
conclude that there are efficiency advantages to private sector provision of
most of these services. We found no study that demonstrated any significant
efficiency advantage to public sector service provision.
We find that the private sector provides more efficient and economical
performance in most areas of waste management, and that the quality of its
performance is similar to that of the public sector.
Studies of residential mixed waste collection conclusively demonstrate that
private sector provision is more efficient - often substantially more efficient -
than public sector provision. A portion of the cost saving arises from lower
wages paid to workers in the private sector, but wage rates account for less
than half, often only one quatier, of the savings.
We find that for general waste collection, public operators experience costs as
much as 75 percent greater than private sector operators. Public sector wages
are 19 percent higher than private sector wages, public sector benefits average
42 percent of the base wage compared to 25 percent for the private sector, and
Ionger paid holidays and much greater absenteeism add another 7 percent
The productivity of the private sector operators is generally greater than that of the
public sector: more waste is collected per worker-hour or per truck-hour or both in the
private sector.
For residential general waste collection, the total cost per tonne is $27.00 for private
operators; for public operators, it is $50.00 (a difference of over 75 percent!)
For residential recyclable collection, the total cost per tonne is $77.00 for private
operators; it is $129.00 for public operators (a difference of over 65 percent!)
times greater than the cost per tonne of collecting general residential waste.
Taxpayers are paying a substantial premium for the collection activity in the
governments recycling programs.
We see no justification for the public sector to begin to provide IC&l collection
service, particularly given the compelling evidence that it experiences much higher
costs than does the private sector.
We doubt that the high degree of planned intervention by the Ontario government in
MRFs can be justified.
Where the public sector owns the landfill site, serious consideration should be given
to private operation of the site through management contracts.
We are sceptical that flow control is necessary to achieve the goals of the waste
management system. We see risks in the expansion of flow control and little
evidence that it would have socially beneficial effects.
The policies being developed in Ontario today are highly centralized, with an
excessively large role given to the public sector, raising the prospect of excessive
costs in the future.
The public sector should confine itself to setting the objectives of the system and
supervising the private sector in delivering the service.
Municipalities can probably achieve significant economies by relying on private
collection.
and finally,
APRIL 1993
Organizational
Structure
BOARD OF DIRECTORS
Nancy Porteous-Koehle (WMI) - President
John Sanderson (Sanderson & Sons) - Vice-President
Izzie Abrams (Dual Removal) - Secretary-Treasurer
Don Coates (Muskoka Containerized Services)
Bruce Cook (Laidlaw)
Martin Irish (BFI)
Carl Lorusso (Wasteco)
Tony Pingue (Philip)
Earl Turcott (Miller)
STEERING COMMITTEE
Joey Abrams (Dual Removal)
Alistair Commins (Toromont Cat) - Chair, Associate Services Committee
Jo-Anne Derrick (KCI) - Chair, 3/Rs Committee
Duane Fast (Fastco) - Chair, Membership Committee
Don Hemmerle (Big Bear)
Peter Mangialardi (Courtesy)
Dave Matchett (Redland Quarries) - Chair, Landfill Committee
Al Metauro (Metro Waste Paper) - Chair, Material Processors Committee
Bob Merritt (Philip)
Paul Murray (Gartner Lee) - Chair, Pub/ic Po/icy Committee
Mike Pullen (Laidlaw) - Chair, Government A1fairs Committee
Bob Redhead (Laidlaw)
lain Wates (Muskoka Containerized Services) - Chair, Safety Committee
Paul Walker (Laidlaw)
Bob Webb (WMI)
and The Board of Directors
STAFF
Terry E. Taylor, Executive Director
Nancy Crawford, General Manager
Lorna Martin, Administrative Assistant
CATEGORIES OF MEMBERSHIP
Active - waste haulers, recyclers, service providers
Associate - equipment dealers & manufacturers, lawyers, consultants
Affiliate - bureaucrats, academics, municipalities, etc.
EMPLOYMENT
SERVICES PROVIDED
HOUSEHOLDS
SERVICED
EQUIPMENT OWNED
WASTE VOLUMES
Collected
Diverted
Exported
. over 7100 people
. 90% full time
B over 1/3 are unionized (26% of those are CUPE
members)
. annual payroll is $247 million (average yearly
income is $34,788, 10% more than the Ontario
average wage)
Residential and IC&I collection; recycling; transfer
stations; landfills; incineration: sludge transport; bio-
medical waste, special and hazardous waste services;
waste audits; waste minimization counseling
Solid waste collection -
2.2 million of Ontarios 3.6
million
Blue Box collection - 1.1 million of Ontarios 2.9
million
over 4400 trucks and other pieces of equipment
6.9 million tonnes
Residential -2.6 million tonnes
IC&I/C&D -4.3 million tonnes
Residential -295,000 tonnes
IC&I -1.237 million tonnes
1.3 million tonnes
GROSS REVENUES $1.3 billion
Collection
$669.5 million
Disposal $630.5 million
Recyclable sales
$70.2 million
Other $19.5 million
ANNUAL $390.6 million
EXPENDITURES
Capital $97.6 million
Tipping Fees
$293 million
to Ontario public landfills
$150 million (est.)
to Ontario private landfills
$70 million (est.)
to U.S. landfiills $73 million (est.)
TAXES $56.3 million
Personal/ $32.5 million
corporate tax
Health tax $4.6 million
WCB premiums
$12.9 million
Fuel tax
$2.8 million
Municipal taxes $9.7 million
Other $3.8 million
The figures cited herein come from a survey of OWMA members that was
analyzed and reported by KPMG Management Consulting Toronto, Ontario,
S urvey figures document activity in 1992 and were complied in 1993.
T H E C OR P OR AT I ON OF T H E T OWN OF OR ANGE VI LLE
MUNICIPAL BUILDING
B7 BROADWAY
ORANGEVILLE, ONTARIO
L9W 1 K1
Telephone (519) 941-0439
Brampton Line (905) 846-0510
Fax (519) 941-9033
Faxed: Sept. 29/95
September 29, 1995
Greater Toronto Area Task Force,
393 University Avenue,
20th Floor -2001,
TORONTO, Ontario.
M5G 1E6
Attention: Dr. Anne Golden, Chair
Dear Dr. Golden:
In accordance with a resolution of council enacted on September 25, 1995, please find
enclosed copies of reports with respect to the Towns Growth Management Study, and a
submission to the GTA Task Force.
Although Orangevlle is not part of the defined GTA, its close proximity makes it
fictionally part of the area, and it is greatly affected by developments therein. Therefore,
we would appreciate your consideration of the reports.
Mr. Alan Young, Director of Planning will be pleased to discuss any questions you may have
regarding this matter.
Yours truly,
Armstrong, AMCT
AAcj
c .C. Mr. A. Young, Director of Planning
TO: Mayor Rose and Members of Council
FROM: Alan Young, R.P.P.
Director of Planning
DATE: September 19, 1995
RE: SUBMISSION TO THE GTA TASK FORCE
1. Purpose
The purpose of this report is to recommend that the Town of Orangeville make
a formal submission to the Greater Toronto Area Task Force. Although the Town
is located outside the GTA, as defined by the Province, it is appropriate to draw
the Commissions attention to the boundary adjustments required along the north
limit of Peel Region.
2. The Greater Toronto Area Task Force Mandate
The GTA Task Force was established by the provincial government in February
1995 with the mandate to define a system and style of governance, appropriate
to the Toronto of the next century, that promotes economic health and
competitiveness, community well-being and a high quality urban environment.
The Task Force will report on:
the appropriate geographic scale, hierarchy and responsibilities of
municipal government;
the appropriate functional responsibilities of the municipal and provincial
levels; and
the appropriate operating principles for effective, efficient and accountable
urban government.
The new provincial government confirmed the mandate of the GTA Task Force,
but advanced its reporting schedule. Municipalities and other stakeholders within
the Greater Toronto Area have been asked to submit comments by September
30, which will allow the Task Force to report to Cabinet by November 11.
2
3. Definition of Greater Toronto Area
The Terms of Reference for the Task Force do not define what is meant by
Greater Toronto Area. However, the Task Force has interpreted the boundaries
of its study area to coincide with the area within the jurisdiction of the Office of the
Greater Toronto Area, i.e. Metro and the Regions of York, Peel, Halton and
Durham. For this reason, the Task Force has not identified the Town of
Orangeville as a stakeholder, and has not asked the Town specifically to make
submissions. However, it is appropriate for Council to draw the attention of the
Task Force to the Towns plight in regard to municipal boundaries.
4. Orangeville - Part of the GTA?
Although Orangeville is not part of the defined GTA, there can be little doubt that
Orangeville is functionally part of the GTA. A large part of the residential growth
of the Town over the past quarter century has stemmed from the proximity of the
Town to employment opportunities within the defined GTA. The opening of
Highways 403 and 410, and improvements to Highway 10 have greatly enhanced
the Towns accessibility, and, in the future, it would be logical for these highway
links to be augmented by GO Transit links.
In many ways, Orangevilles role in relation to the GTA is similar to that of a
planned new town: Orangeville provides housing and employment opportunities
in an attractive and vibrant, small-town setting to those who, for one reason or
another need to be close to the defined GTA, but who dont require to be within
the defined GTA.
Orangeville continues to enjoy a distinct character and identity, founded on its
nineteenth century heritage, and buffered from the metropolis by rural Caledon.
The pattern of local government is also distinct. Compared with the area
municipalities to the south, the Town of Orangeville administers a wide range of
services: it does all its own planning, it is the only Town in Ontario with delegated
subdivision approval powers, and it provides a multiplicity of services including
police and fire protection, a water pollution control plant, a groundwater supply
system, building permits, day care, and a bus service.
Given its distinct situation and character, the Town of Orangeville should not be
included in any GTA super-regional form of government. However, its position
relative to the GTA should not be overlooked in any solutions that may be
recommended.
4. Discussion
Orangeville is not part of the defined GTA, and the structure of government in
Dufferin County is not within the mandate of the GTA Task Force. The long-term
health of Orangeville is however linked to the health of the GTA region as a
whole.
3
The current boundaries of Orangeville restrict our ability to plan for the future.
Since we do not have a long-term supply of land for housing or employment
opportunities, we are hampered in our efforts to provide for the orderly growth
economic well-being of the municipality.
We have launched a Growth Management Study that is intended to provide a
rational, planning basis for the eventual expansion of the Towns boundaries, and
we are making every effort to reach agreement with adjoining municipalities on
the extent of the Towns annexation. However, the Town of Caledon has to date
declined to participate in these discussions, and has amended its official plan to
remove the policies that provide for co-operation along the Orangeville boundary.
Similarly, the draft Peel Region official plan takes no recognition of Orangevilles
growth and infrastructural interests in the adjoining area of Caledon.
The GTA Task Force will be making recommendations affecting the future of Peel
Region and the Town of Caledon. It would be appropriate to ask the Task Force,
in its consideration of local government structure, not to overlook pressing needs
for boundary adjustments at the edge of the defined GTA.
5. Recommendation
L
THAT the report of Alan Young, R.P.P., Director of Planning, dated
September 19, 1995, with respect to a submission to the GTA Task Force,
be received;
AND THAT the report of Mr. Young, Director of Planning, together with the
report on the Growth Management Study, be forwarded to the GTA Task
Force as the Towns submission;
AND THAT the GTA Task Force be asked to frame its recommendations in
a way that encourages boundary adjustments on the edge of the defined
GTA where desirable in the interests of promoting orderly growth and
economic well-being;
AND THAT the GTA Task Force recommend to the Province that it take a
leadership role in making boundary adjustments happen where the local
municipalities are unable to reach agreement amongst themselves.
Respectfully submitted,
Alan Young, R.P.P.
Director of Planning
TO:
THE CORPORATION OF THE TOWN OF ORANGEVILLE
Circulated to members
of Council/Committee
Chairman Drew Brown and Members
Community Planning and Development Committee
FROM: Alan Young, R.P.P.
Director of Planning
DATE: August 8, 1995
SUBJECT: THE FUTURE OF ORANGEVILLE - GROWTH
STUDY
MANAGEMENT
The purpose of this report is to describe in general terms the concept and purpose
of a Growth Management Study, and to recommend that a consulting firm be
approached to prepare a Terms of Reference and study proposal.
In recent years, the Town of Orangeville has experienced considerable growth, and,
judging from general GTA trends and the development industrys continuing interest
in the municipality, considerable additional growth can be expected for the
foreseeable future. The Hemson study (1994) estimated, on the basis of current
trends, that the population of greater Orangeville could grow from 20,000 to 49,000
by the year 2021. Hemson concluded that the land area required for this amount
of growth would exceed 1,600 hectares, of which 70% would have to be found
outside the Towns boundaries.
The Towns existing boundaries also chafe for infrastructural reasons. For many
years, the Town has contemplated the construction of the South Arterial Road, a
major segment of which passes through the Town of Caledon. The construction of
this road will help take through truck traffic off Broadway and will greatly enhance
the accessibility of Towns Business Park from Highway 10. It would also provide
a logical setting for a new business park in a better location than the industrial lands
presently designated in the northwest corner of the municipality.
The foregoing considerations are well known to Council. Annexation discussions
are already underway with the adjoining townships, and the Town of Caledon has
been invited to participate.
2
During the course of those discussions, it has become apparent that a more
detailed technical assessment of the Towns future requirements is required, in
order to develop a rationale for a comprehensive annexation to serve the Towns
needs for the next thirty years.
A Growth Management Study would provide
direction for the structuring and servicing of future growth, and lay the foundation
for meeting housing demand, maintaining housing affordability, and realizing the
potential for business park uses connected to Highway 10 by the South Arterial
Road.
Once an annexation is agreed upon, the Town would be able to use the results of
the Growth Management Study for the preparation of official plan policies for the
annexed areas. The Growth Management study would provide the kind of
comprehensive approach to settlement planning that the Province will require in its
review of the Towns official plan amendments.
A Growth Management Study should:
Growth management
:
need
coordination at Greater
Municipal Federation level.
Need to contain future
growth to within already
urbanized part of GTA, and
confine provision of future
infrastructure.
1. Strengthen local (major
urban centres)
municipalities.
Eliminate the existing
regional governments,
including Metro.
Create a new regional
body called Greater
Municipal Federation
(GMF).
4. GMF would consist of 36
indirectly elected members.
to co-ordinate regional
services.
Define new boundaries for
GTA - a total of 17
municipalities forming a new
region.
Rural municipalitics - study
required for rural
municipalitics not included
GOVERNANCE OF THE GREATER TORONTO AREA.
POLICING ISSUES
The Peel Regional Police Services Board on August 25, 1995, requested that the Chief
of Police prepare an advisory report on the implications of combining the regional police
services into a single GTA police service. This report is intended to fulfil that requirement, but
the mandate has been extended to comment on the other option contained in municipal
submissions on the issue: devolution of regional forces to jurisdictions contiguous with the
boundaries of the municipalities of the GTA. The paper will also comment upon police
governance issues.
COMMENTARY
Policing is a subsystem of the more inclusive social system of society. In this sense, the
relationship and structure of policing within governmental design should conform generally to
the system evolved by political processes operating within the realm of a constitutional
framework. Whatever option is selected for GTA governance, policing must be structured to
adapt. Having said that, it is very legitimate to comment upon the predictable impact of the
major options for change currently before the provincial government. While time has limited
the assembly of comprehensive data in support of these comments, they capsulize the opinion
and advice of the Chief of Police.
CONSOLIDATION OF FIVE REGIONAL POLICE SERVICES INTO A SINGLE GTA
POLICE FORCE
Under this option, the existing police services of Metro, Durham, York, Peel and Halton
regions would be consolidated into a single organizational entity, presumably with headquarters
in the city of Toronto. The total strength following consolidation, based on current reported
complement would be 11,600 members. If Durham, York and Halton were to lose certain parts
of their current rural jurisdictions, this could mean a slight reduction to these numbers. This
immediately raises significant concern regarding governability, command and control. A
concentrated police service of this size is without precedent in Canada. A GTA force would be
almost twice the size of the police force of Montreal; would exceed the size of the Ontario
Provincial Police by 4,769; and would be one half the size of the combined federal and contract
strength of the RCMP. There are comparative forces of this scale in the United Kingdom and
United States of America. Excluding the mega forces of the London Metropolitan Police
(44,946) and the New York Police Department (39,442), a GTA force of 11,600 would compare
with Chicago (14,196) and Los Angeles (10,099).
There is a critical juncture where excessive size begins to negatively impact the ability
to respond to local needs and on the quality of service being provided. The metropolitan forces
are notorious for their cyclical scandals of corruption and malpractice. Their governability is
a continuing source of political and public concern. Aside from expression of a strong
bureaucratic bias for centralization in certain position papers reviewed to this point, there has
been no case made that consolidation would enhance the quality or improve the cost effectiveness
of police service. It has been said that all residents of the GTA should be able to expect a
common standard of police service. This is not true now and would not be true under any
configuration. In actual practice, the residents of the downtown core receive disproportionate
attention from the police, while the residents of quiet suburbs rarely see a police car on their
streets. Troubled neighbourhoods are subject to police problem solving and community relations
tactics, while the healthy and affluent areas never see these services. This process of
2
priorization is a normal part of police decision making and disposition of resources. The most
precise and focused decisions on priorities are invariably made under the influence of locally
elected councils, governing bodies and citizen advisory groups. Parochialism enhances order
maintenance and local crime control.
As observed on the British policing scene and in the functioning of metropolitan forces,
consolidation tends to strengthen the position of the Commissioner or Chief of Police. The
larger the force, the greater the concentration of power at the top and the less likely the
influence of the governing body will permeate through to the front lines of the organization.
While there is currently occurring a migration of police organizations and their inherent cultures
away from classic command and control, all police services currently retain the hierarchical
model of organization. This configuration, multiplied and expanded to accept a larger size and
scale, promises to increase the likelihood of bureaucratization and threaten the process of
delayering and empowerment now occurring. This with significant inferences for the cost of
management and supervision. The reform of the police culture is underway. Consolidation of
GTA forces at this time will stifle or kill that impetus under layers of overburdening numbers.
These listed concerns illustrate the negative factors inherent in a consolidated force:
Currently, each police service operates under the guidance of a Mission and
Values statement evolved in response to the particular concerns and priorities of
the various regions. These central principles have influenced the unique culture
of the existing force. A consolidated police service must necessarily be provided
with a single statement of Mission and Values, desirably influenced by the central
governing body, the elected representatives of the GTA, special interest groups
across the full spectrum of the area, and with opportunities for participation by
interested citizens throughout the constituency of the 4.4 million population. This
process can and has been accomplished in a region the size of Peel. It would be
a monumental task in a consolidated GTA. No doubt, a shorter path could be
found by restricting participation to the governing body and executive
management of the police service. But in contemporary organizational life, this
3
is viewed as a highly ineffectual process, unlikely to achieve acceptance by the
workforce. This may seem an unimportant factor, yet the Mission and Values
Statement of any organization is the driving inspiration for all progressive
achievement. What is at risk here is that consolidation will upset and destabilize
large portions of the organization and it will be very difficult to redeem stability
and direction.
Section 41 of the Police Services Act of Ontario compels the Chief of Police to
apply the principles of community oriented policing. This policing style is
decentralized in nature and depends heavily upon the development of community
partnerships and problem solving. It is a trite commentary in Canadian policing
that small police services have always practised community oriented policing as
their closeness to their communities broaches no option. On the other hand, the
very large forces are challenged to adapt to a style which requires local
empowerment and initiative. There has been a reliance upon a grand design
rather than the evolutionary processes of the medium sized forces. A
consolidated GTA force would have problems developing the mechanisms to
promote and sustain community policing. Municipal governments and community
groups within the constituency would have greater difficulty in influencing the
high command of the GTA force to recognize local needs and priorities. In a
hierarchy of priorities, the lesser are subordinated.
In the history of consolidation of police services, it has been observed that a
levelling-down phenomenon is evident in the early years. Centres of excellence
in the forces which are consolidated are seldom sustained in the larger soup of
varying norms of performance. Of local concern, the Region of Peel would lose
its accredited status on the date of consolidation, and given the predictable
preoccupation of central management in achieving overall stability and the non-
4
accredited status of the other four forces, it is unlikely that accreditation could
ever be achieved again. Similarly, centres of excellence such as the Peel
Regional Police child abuse program is certain to be subsumed by less
comprehensive practices. The quality improvement program of Peel Regional
Police which has earned a Certificate of Merit in the Canada Awards of
Excellence program would predictably lose momentum. This phenomenon would
be experienced by the other 905 regions, each of which has its centres for
excellence. Notable is the learning organization thrust of Durham Region.
Currently, each regional force operates under a unique system of policies and
procedures. Only that of Peel meets accreditation standards with CALEA. Top
management of a GTA force would be faced with the enormous task of
consolidating and rewriting these
of the outlying regions, for those
adopt the policies and procedures
procedures to accommodate the unique needs
needs would still exist. It is not an option to
of the Metro force.
Each region has made a large investment in police information services, in some
cases very recently. This includes 911 emergency systems, computer based
dispatch and records systems and the more specialized electronic systems such as
automated fingerprint identification systems. In each case the investment in
equipment and infrastructure has been based upon the geographic needs of the
five distinct regions. There is no feasible way of consolidating these systems into
a single cohesive system. With systems life extending from fifteen to twenty
years maximum, the first opportunity for major redesign reflecting the needs of
a GTA force would occur 2010- 2015. Until then, operational co-ordination,
command and control must necessarily remain encompassed by the boundaries of
the current regions. Police organizations are highly integrated and connected.
Information management is the nervous system of the organization, driving
operations and in turn collecting and recording every facet of operational activity.
The process of consolidating five such systems into a single one is impossible,
5
except in the long term. Design of a system connecting the central command to
the five subsystems would, in itself, involve a significant incremental investment
in design, equipment and human resources. Given the funding shortages likely
to exist, in reality this may also be impossible.
Human Resource management processes vary considerably across the five
regional forces. This impacts upon selection, staffing, promotion, and staff
relations. Again, consolidation of these processes would be a severe dislocation,
with staffing and promotion being major issues of contention.
Each Police Services Board has negotiated a number of collective agreements with
their associations. Peel alone has one contract with the Senior Officers
Association and a two part contract with the Peel Regional Police Association.
The governing body of a consolidated force would be faced with resolving this
diversity, again a complex and lengthy undertaking and certain to be extremely
expensive for the corporate interest. Past patterns suggest that the trend here is
that of levelling-up or cherry picking, so that employee associations seek to
entrench the most advantageous features of each plan in a new consolidated
working agreement. If, for instance, the pay schedule of the Metro force were
to be applied to Peel, Durham, York and Halton, the immediate impact upon the
GTA would be a significant increase in salary costs. A similar and possibly even
more consequential result could result if the two person car provision of Metro
Toronto were applied unilaterally together with the Metro practices on overtime
and court time. Potentially, this could have serious consequences for financing
GTA policing.
6
THE DEVOLUTION OPTION
Some authorities have proposed that policing authorities undergo a process of devolution
in accommodating to a new governance structure in a GTA. Devolution is the surrender of
powers to local authorities by a central government. The boundaries of the hypothetical ten to
fifteen municipalities to constitute the GTA would each have a local police service responsible
and accountable to municipal government. Under most imagined circumstances, this would
require excising portions of the area now policed by Metro Toronto. For instance, the city of
Scarborough may be a venue for a police authority. The Chief of Police of MTP has already
commented on the negative impact for his organization, given the existing integration of
Scarborough into Metropolitan policing, and the obvious expense of dislocation. Similarly, it
may be fancied that the cities of Brampton and Mississauga would have their own police services
on division of Peel Regional Police. In our local circumstances, this would leave Mississauga
without a police headquarters facility and dependent upon Brampton for location of police
dispatch. Inevitably, the desirability of shared services would emerge in the process of analysis,
leading to the conclusion that the process of separation would be so difficult and expensive that
the best solution was a shared police service based upon cost apportioning. Governance is
problematic. This notion of devolution is potentially the option most destructive of operational
effectiveness since its retrogressive aspects would denude the respective police services of
specialized crime fighting capabilities, information and administrative services only achieved
under conditions of optimum scale and scope.
FACTORS FAVOURING THE STATUS OUO
Factors favouring the status quo configuration of the five regional forces may be stated
quite simply and distinctly. They are:
Order maintenance and local crime control remain in the hands of regional forces
where local priorities under the guidance of elected and appointed local citizens
may ensure maximum sensitivity to local needs through the setting of police
priorities. Provincial and inter-regional crime control challenges are met through
joint forces operations and provincial co-ordination.
It avoids the concentration of police authority which would effectively buffer
civilian control and block local service priorities.
It ensures the continuing acceptance of policing, founded on community consent,
by sustaining the existing relationships. The priorities of policing must be based
on the needs of the local community.
This is the central principle of effective
policing.
There is no case for further consolidation of existing forces based upon objective
criteria of effectiveness, efficiency, and economy.
There is no case for devolution of the existing forces.
The current structure encourages local identity, accountability, and consultation,
all functions of community based policing.
The current form of regional policing is appropriately connected and influenced
by the communitys ability to pay, as determined by the local police services
Board and regional Council.
It is very arguable in the Canadian experience that police forces of approximately
1,500 and less are the optimum size for medium sized Canadian cities (excluding
the metropolises of Montreal and Toronto). Comparative jurisdictions are
Calgary, Edmonton, Winnipeg, York Region, Vancouver, Hamilton Wentworth
and Durham Region. The tip over may occur when the jurisdiction exceeds a
population of one million, when the policing equation and possibly other forms
8
of service delivery may undergo a shift to a metropolitan style of governance and
organization.
The Region of Peel enjoys relatively low crime rates and elevated crime clearance
rates significantly better than the national averages. There are no appreciable
order maintenance problems. This favorable record is equally shared by
Durham, York and Halton. While there is no doubt that geographic and social
factors have a great influence on this favorable condition, policing style and
sensitivity to local priorities must be accorded some credit. The 905 regions
under the current system of governance are as fully entitled to take credit for this
result as they are for debt management, waste management, and social services.
Peel Regional Police was granted accredited status by the Commission on
Accreditation for Law Enforcement Agencies (CALEA) in November, 1994,
culminating an arduous process of measuring up to some 759 standards designed
to reflect the best practices in the field of policing. The accreditation process and
the policies and procedures evolving from it are open to scrutiny and represent
a high standard of public accountability. In addition, PRP has been recognized
by the National Quality Institute through presentation of a Certificate of Merit in
the Canada Awards for Excellence competition 1995. This again is evidence of
an organizational culture dedicated to continuous improvement in providing
quality service to the citizens of Peel. These hard won achievements, and the
momentum they have provided, are surely persuasive factors militating against
any externally influenced interests who would destroy this mentality through the
process of levelling-down.
9
CO-ORDINATION OF POLICE SERVICES
There is a strong argument that the operational effectiveness of police services in the
GTA is best established on the foundation of the existing regional forces including Metro.
However, there is a case to be made that co-ordination of police functions could be enhanced
by formal mechanisms. While the Chiefs and other executive officers of the GTA forces meet
formally and informally from time to time, this is most often in response to some critical issue
and there is no practice of regular meetings. Permanent co-ordination of major crime and
intelligence activities province-wide is carried on through an umbrella organization called
Canadian Intelligence Service Ontario (CISO). CISO has a staff of officers seconded from the
participating major services. Its offices are situated in the city of Toronto. CISO is the focal
point for permanent and temporary joint forces operations targeting major organized crime and
major crime threats of a more transient nature. All projects carried out by CISO involve
interjurisdictional police operations. The province of Ontario provides annual funding for these
activities and supporting infrastructure to the amount approximating $8 million annually.
Regional participation varies with activity patterns. As of August 23, 1995, PRP was
contributing 12 officers to joint forces and the central office.
Should some future form of political co-ordinating body be established for the GTA as
suggested by some of the position papers, then a more permanent and possibly expanded role
could be given to a police co-ordinating body. While the true mandate of a metropolitan crime
control organization should ultimately include all municipalities in the Golden Horseshoe
extending from Durham through to Niagara, co-ordination of the GTA group would represent
a beginning. The functions of the co-ordinating organization could be:
Oversight of the current functions of GTA projects within CISO, and expanded
to interjurisdictional serial murders; major frauds; major commodity crime;
environmental crime; and international crime syndicates in co-operation with
provincial and federal police.
10
Co-ordination of major order maintenance challenges:
- riots/ public order events
- disasters
- disaster planning
Aerial services for fixed wing, helicopter and marine services along the
waterfront of the GTA.
Co-ordination extended to include management services, ie: co-ordination of
policies and procedures (consistency with best practices) and information
management.
This option, if considered, must make use of existing resources, especially existing
management resources. A central management committee composed of the regional Chiefs
would meet regularly to direct activities, with other executive officers assigned to functional
management roles on a part time or seconded basis. Permanent staff should be kept to a
minimum, possibly a secretariat. The co-ordinating police body would be responsible and
accountable to the co-ordinating political body as proposed by some GTA position papers. Since
policing is a very strong culture, there would be concern for the legitimacy and acceptance of
this structure. Survival strategies should include continuity of the existing CISO organization;
the establishment of joint management teams and the employment of highly experienced officers.
The timing must be right. The impetus for change must overcome natural inertia. The time
span for acceptance of this type of change by governance and the police culture is medium to
long term (two to five years).
11
LET THE PROVINCE DO IT
Beyond the co-ordinated model there is a proposal within the realm of speculation that
the provincial police could assume responsibility for tier two policing responsibilities over the
GTA, ie: criminal intelligence, major crimes, etc. All theoretical and practical rationale
militates against this. Policing is a highly integrated and interactive process. Everything is
connected to everything else, and it is the front line officer who possesses the access to local
knowledge and informants that is so essential to success. Vertical integration remains the best
means of ensuring co-ordination. Any discontinuity which represents an impediment to the flow
of information is detrimental. A discontinuity in management and accountability is the most
formidable of barriers.
The regional forces of the GTA have their roots in an urban and suburban culture and
are attuned to city life. The culture and organization of the provincial police is predicated by
a dispersed rural and small town experience with specialization in the regulation of highway
traffic.
Governance issues remain unanswered. Would the public and municipal representatives
of the GTA be satisfied with the imposed policing priorities of the Provincial Government? The
provincial police are accountable to the government through a ministry which is also responsible
for oversight of all aspects of provincial policing. There is no provision for control of budget
or priorities by local municipalities. Would the services be provided free or by contract? If the
disentanglement of provincial and municipal responsibilities remains an objective of this process,
then this option should be abandoned.
12
GOVERNANCE
The case for independent police services Boards is primarily an issue for elected officials,
currently constituted Boards, and the public. The police are subject to the governance which
is imposed upon them and in a democratic state there should be no inference that the police have
a powerful influence in the design and implementation of that system. From an official point
of view, it is the position of Peel Regional Police that the service respects and is committed to
the system of governance prescribed by the Police Services Act of Ontario 1990.
On this point only, I will digress to a purely personal view, based on experience. I have
functioned in a senior management capacity in the federal force where responsibility and
accountability flows upward to the government of Canada. Provincial and municipal policing
is provided on a contract basis and although in some instances police commissions or local
councils and committees exist, they have no direct legal authority over their contract police and
in many cases minimal influence on police priorities. This is the least responsive of systems and
instructively, this occurs where scale and scope is the largest in Canada. I was next responsible
for twelve years to a local police commission composed of a minority of elected aldermen and
a majority of citizens at large appointed by Council. This system assured a high degree of
sensitivity to local concerns and an equally high degree of accountability to local government
on issues of economy and efficiency. In a third situation I worked for three years as a City
Commissioner in a jurisdiction with no police services Board or commission where the Chief
of Police reported through the City Commissioner to a committee of Council which was also
responsible for a variety of other vital civic services. This configuration was the least effective.
Membership on the Council committee was constantly changing as members rotated through the
standing committees; they never remained in place long enough to understand policing issues and
in every case of crisis or when faced with a major organizational decision, they equivocated and
failed to act decisively. It proved very difficult for elected councillors to give direct instructions
to the Chief of Police, given the apprehension of the public for the intrusion of political decision
making into justice matters, and the watchful and sceptical omnipresence of the media. The
situation in Ontario and in Peel offers the advantage of the independent role of an oversight
13
Board coupled with the locality connections of members both elected and appointed.
Municipally appointed representatives reflect local concerns, while provincially appointed
representatives reflect the priorities of the provincial government. Independently appointed
governing bodies have the respect of the Canadian police community, and are viewed as
providing much more stability than the strong mayor or city manager systems adopted in many
cities of the United States.
CONCLUSION
The provision of police services has not received detailed attention in the GTA
governance submissions available to this date. Of the commentary available, three alternative
proposals are described: consolidation; devolution; and a hybrid model featuring two tier
policing. Assuming that cost effectiveness is a major objective of any change process, in no
case has it been established that any of these three models would produce the desired result. On
the other hand, experience has established that the current structure of regional policing is cost
effective and responsive to the needs of the local communities. Analysis suggests that policing
across the GTA would benefit by the creation of a more structured system of co-ordination than
currently exists. Desirably, any new police co-ordinating body should be responsible and
accountable to some form of civilian governance.
RFL:jrh
September 25, 1995
14
REP ORT TO COUNCI L
FROM: C. M. Timothy Sheffield DATE: September 26, 1995
Town Manager
REPORT NUMBER: M 22/95
SUBJECT: Submission to the Greater Toronto Area Task Force
- File: IG31OO
RECOMMENDATION:
A Resolution should be made identifying the issues and concerns of the Council of The
Corporation for the Town of Pickering respecting the future of the Town of Pickering in the
context of the Greater Toronto Area, for forwarding to the Greater Toronto Area Task Force,
chaired by Dr. Anne Golden.
ORIGIN:
The Greater Toronto Area Task Force has invited submissions from interested parties, to be
forwarded to it no later than September 30, 1995.
AUTHORITY and FINANCIAL IMPLICATIONS: Not applicable.
BACKGROUND:
The Greater Toronto Area Task Force, chaired by Dr. Anne Golden, has invited submissions from
interested parties identifying issues and concerns respecting the future of local government in the
context of the Greater Toronto Area (GTA) and possible reforms related thereto.
Mayor Arthurs (in discussions and debate with other GTA Mayors and GTA Regional Chairmen,
and following debate at the Region of Durham) and the Town Manager (following a review of the
literature available to date respecting this subject) have identified eight matters that appear to
warrant attention and debate by Town Council:
1.
2.
3.
4.
5.
6.
7.
8.
Economic Development Opportunities in the GTA.
Municipal Finance and Tax Reform
Disentanglement (Provincial/Municipal)
Education Reform
Governance Reform
Special Purpose Bodies Under Lower Tier Jurisdiction
Pickering as Part of a GTA Organization
Implementation Before the End of 1997
Each of these subjects is addressed briefly in this Report to enable Town Council to debate the
issue(s) surrounding it, and to propose any recommendation(s) relating to it. For Councils
assistance, proposed recommendation(s) accompany each subject.
Report to Council M 22/95 Page 2
September 26, 1995
1. Economic Development Opportunities in the GTA.
The future of the communities that make up the GTA and of the GTA itself, is far more
dependent upon the economic vitality of the area than upon political boundaries or governance
models. Consequently, the primary issue that must be addressed is the issue of economic
development opportunities in the GTA.
For a number of years in the 1960s and 1970s, economic development, as a municipal function,
was largely a Metropolitan or Regional fiction. With the advent of local municipal promotional
activity in the mid- 1970s, many area municipalities, including Pickering, undertook economic or
business development activities in an effort to attract the necessary industrial and commercial
ventures to ensure employment for their residents and a balanced and stable assessment ratio.
Those area municipalities achieved various levels of success, Pickering fortunately being among
those to achieve better-than-average results.
However, the competitiveness of the 1990s and the increasingly global nature of the GTAs
economy has resulted in most of the GTA municipalities pooling resources to promote and
develop the area as a whole. While this has not meant that any area municipality has abandoned
its own efforts, it has resulted in a unique strengthening of the GTAs ability to attract business
through the efforts of such unofficial groups as the Committee of GTA Mayors and Regional
Chairmen, the GTA Economic Partnership, the Greater Toronto Coordinating Committee, and the
provincial Office for the Greater Toronto Area.
It is therefore recommended that, as a first priority,
The Provincial Government should strengthen and formalize the existence of the Committee of
GTA Mayors and Regional Chairmen, the GTA Economic Partnership, the Greater Toronto
Coordinating Committee, and the provincial Office for the Greater Toronto Area, for the
purpose of economic development within the existing Greater Toronto Area.
2. Municipal Finance, Tax and Assessment Reform
There is no doubt that the system of municipal finance and taxation within the Province of Ontario
in general (and the GTA in particular) is inequitable and requires reform. Municipal finance and
taxation policies should support strong local government.
Municipal finance and taxation
policies, and provincial transfer policies, should be developed and implemented to ensure equity
among municipalities and to avoid artficial advantages in attracting economic development.
Further, municipal finance policy should support the concept of accountability of the municipal
government to its ratepayers.
It is therefore recommended that, as a second priority,
In the short term, the Provincial Government should,
. implement a fair and equitable assessment system for each Region within the GTA,
. to achieve fairness within arid between classes
. to attain the benefits of an optimal residential to non-residential assessment mix
across each Region
. to utilize variable mill rates to phase and control tax burden shifts between property
classes,
. shift the assessment function from the Province to the Regions, with the power in the Regions
to privatize the function should they wish to do so,
. utilize improved technologies to maintain assessment records, and
. continue to investigate the range of assessment methodologies.
In the long term, the Provincial Government should consider the implementation of the
recommendations made by the Fair Tax Commission.
Report to Council M 22/95
Page 3
September 26, 1995
3. Disentanglement (Provincial/Municipal)
The Province and the municipalities should continue the disentanglement process.
Disentanglement should occur, however, only. where
local or both) and where there will be an identifiable
province (and thereby the taxpayer).
It is therefore recommended that, as a third priority,
it will strengthen municipalities (regional,
savings to both the municipalities and the
The process of disentanglement should continue, so that,
,
. municipalities will finance certain hard services (i. e., those that are property-related),
including roads, wrote management, sewer and water, health inspection, and property
assessment,
. the province will finance soft services (i. e., those that are not property-related), including
welfare, childcare (including children aid societies), public health, and homes for the aged,
. municipalities and the province will joint finance certain other services (i.e. those that are
primarily property-related but over which the province wishes to maintain an element of
control - pay for say"), for example, transit and policing,
B
education costs will be utilized as a means of balancing the process,
unconditional grants will be discontinued, no provincial or municipal tax will be increased, and
there will be an identifiable savings at both the provincial and municipal levels.
4.
The reform of the education system in the
Education Reform
GTA is beyond the scope of this report; educators and
their advisors are in the best position to make recommendations respecting the system. However,
the means of financing the system is another matter. It is becoming increasingly clear that the
property tax base can no longer support the increasing cost of education. Nor should it. Firstly,
property owners are not the only beneficiaries of the system and, secondly, the notion of taxing
perceived property wealth for such an expensive social program is inappropriate when there are
more equitable taxation sources (e.g., income tax) available.
It is therefore recommended that, as a fourth priority,
The Provincial Government should lessen dependency on the municipal tax base as a means of
raising funds to support the education system, preferring instead a more equitable tax source
such as the (graduated) income tax.
5. Governance Reform
The issue of the reform of governance is important, and should not be proceeded with in the
absence of a specific public consultation process to review all the issues and options.
In any event, the Town of Pickering does not support at this time any consideration of boundary
or other jurisdictional (i.e. regional dissolution) changes affecting it. The Town continues to
discuss the sharing of fictions with other entities within the Region of Durham, including the
Region. Cost-saving opportunities are being and will be implemented as they are identified.
It is therefore recommended that, as a fifth priority,
The Provincial Government should refer the matter of governance to a public consultation
process intended to deal specifically with that issue.
Report to Counc i l M 22/95 Page 4
September 26, 1995
6. Special Purpose Bodies Under Lower Tier Jurisdiction
The special purpose bodies under lower tier jurisdiction in Pickering (The Pickering Public
Library Board and The Pickering Hydro-Electric Commission) are both operated under the
direction of council-appointed bodies, many of whose functions are subject to Town Council
approval. Accountability and economy may be enhanced if each of them became a department of
the Town. (The benefit of the appointed-board fiction could be maintained through the
establishment of advisory bodies. ) However, a specific public consultation process should be
undertaken to review all the issues before any action is taken.
,
It is therefore recommended that, as a sixth priority,
J
The Provincial Government should refer the matter of special purpose bodies to a public
consultation process intended to deal specifically with that issue before taking any steps to
amend legislation to enable local municipalities to consolidate certain speciaI purpose bodies
(public libraries and hydro-electric commissions) as municipal departments.
7. Pickering as Part of a GTA Organization
It has been proposed by others that the GTA be defined and formalized as a new level or style of
government (either as a corporation or a federation), and that Pickering be included within it,
either in Pickerings present form or as amalgamated with the Town of Ajax.
On this subject, three very important points need emphasizing:
1. Municipalities should not be so large that citizens are not permitted adequate access to the
political and administrative systems or that the local government loses sensitivity to its
citizens issues and concerns.
2. Municipalities should be both small enough to know what services and amenities their
citizens want, and large enough to supply them cost-effectively.
3. Boundaries of municipalities should align with natural geographic barriers or significant
linear landmarks, respect historic communities and neighbourhoods, and define proper
servicing areas.
With respect to appropriate size, it is suggested that the maximum population of a municipality
that will allow it to continue to meet the criteria set out in 1 and 2, above, is 150,000. Pickerings
projected population for the year 2020 is 140,000.
There is therefore no need to consider
amalgamation; in fact there are-compelling reasons to reject it.
With respect to appropriate boundaries, it is suggested that the Towns existing boundaries
already meet the criteria set out in 3, above.
Lastly, it is evident that many of Pickerings existing residents chose to relocate from the Metro
environment to the west. The small town environment in Pickering is attractive to them. They
enjoy the small-town atmosphere. They do not have Metro concerns with their quality of life.
It is therefore recommended that, as a seventh priority,
The Provincial Government should take no steps to remove the Town of Pickering from the
Regional Municipality of Durham, nor to amalgamate it with any other municipality, in or out of
the Regional Municipality of Durham.
Report to Council M 22/95
Page 5
September 26, 1995
8. Implementation Before the End of 1997
It has been suggested by the Province that the implementation of proposals put forward by the
Greater Toronto Area Task Force ought to occur prior to the next regular municipal elections (in
the fall of 1997).
This timing appears to be unduly hasty, given the nature and extent of the issues being canvassed,
and their importance to the persons and entities affected. It would be preferable not only to
consider each issue individually, but also to review its potential effect upon other issue, before it is
implemented. That process cannot be done until the recommendations
known.
It is therefore recommended that, as an eighth priority,
of the Task Force are
The Provincial Government should take no steps to implement any proposal put forward by the
Greater Toronto Area Task Force until such proposal has been fully considered and its effect
upon other issues reviewed. Further, the Province is urged to consider implementation only
after 1997, i.e. during the period 1998-1999.
C. M. Timothy Sheffield
CMTS:jh
Submission to the
Greater Toronto Area Task Force
September 27,1995
RECOMMENDATIONS
(addendum to Town Managers Report M22/95 - Resolution 198/95)
1. Economic Development Opportunities in the GTA
The Provincial Government should strengthen and formalize the existence of the Committee of
GTA Mayors and Regional Chairmen, the GTA Economic Partnership, the Greater Toronto
Coordinating Committee, and the provincial Office for the Greater Toronto Area, for the purpose
of economic development within the existing Greater Toronto Area.
2. Municipal Finance, Tax and Assessment Reform
In the short term, the Provincial Government should,
. implement a fair and equitable assessment system among the municipalities within each Region
within the GTA,
. to achieve fairness within and between classes
. to attain the benefits of an optimal residential to non-residential assessment mix across
each Region
B to utilize variable mill rates to phase and control tax burden shifts between property
classes,
B
shift the assessment function from the Province to the. Regions, with the power in the Regions
to privatize the function should they wish to do so,
. utilize improved technologies to maintain assessment records, and
B
continue to investigate the range of assessment methodologies.
In the long term, the Provincial Government should consider the implementation of the
recommendations made by the Fair Tax Commission.
Town of Pickering
Submission to the
September 27, 1995
Greater Toronto Area Task Force
3. Disentanglement (Provincial/Municipal)
The process of disentanglement should continue, so that,
. municipalities will finance certain hard services (i. e., those that are property-related), including
roads, waste management, sewer and water, health inspection, and property assessment,
. the province will finance soft services (i. e.,
those that are not property-related), including
welfare, childcare (including childrens aid societies), public health, and homes for the aged,
B
municipalities and the province will jointly finance certain other services (i.e. those that are
primarily property-related, but over which the province wishes to maintain an element of
control - pay for say), for example, transit and policing,
. unconditional grants w-ill be discontinued,
B no provincial or municipal tax will be increased, and
B there will be an identifiable savings at both the provincial and municipal levels.
4. Education Reform
The Provincial Government should lessen dependency on the municipal tax base as a means of
raising funds to support the education system, preferring instead a more equitable/progressive tax
source.
5. Governance Reform
The Provincial Government should refer the matter of governance to a public consultation process
intended to deal specifically with that issue.
6. Special Purpose Bodies Under Lower Tier Jurisdiction
The Provincial Government should refer the matter of special purpose bodies to a public
consultation process intended to deal specifically with that issue before taking any steps to amend
legislation to enable local municipalities to consolidate certain special purpose bodies (public
libraries and hydro-electric commissions) as municipal departments.
Town of Pickering
Submission to the
September 27, 1995
Greater Toronto Area Task Force
7. Pickering as Part of a GTA Organization
The Provincial Government should take no steps to remove the Town of Pickering
Regional Municipality of Durham nor to amalgamate it with any other municipality, m
the Regional Municipality of Durham.
from the
or out of
8. Implementation Before the End of 1997
The Provincial Government should take no steps to implement any proposal put forward by the
Greater Toronto Area Task Force until such proposal has been fully considered and its effect
upon other issues reviewed. Further, the Province is urged to consider implementation only after
1997, i.e. during the period 1998-1999.
9. Improved Municipal Act
The Provincial Government should enact an improved Municipal Act with permissive authority
and with an enhanced range of revenue generating options.
September 25, 1995
Dr. Anne Golden,
Chair,
GREATER TORONTO AREA TASK FORCE,
393 University Avenue,
20th Floor, Suite 2001,
Toronto, Ontario.
M5G 1E6
Dear Doctor Golden:
Re: Submissions of G.T.A. Police Associations
Please find enclosed the submissions on behalf of the following Police Associations - Durham, Halton,
Peel and York. If you have any questions concerning these submissions or would like an opportunity to
meet with representatives of these Associations, please do not hesitate to contact one of the undersigned.
The Associations appreciate the opportunity to make submissions and await the reply of the Task Force.
Sincerely,
DURHAM REGIONAL POLICE ASSOCIATION
Brian Curtis, Administrator
HALTON REGIONAL POLICE ASSOCIATION
Paul LaCourse, Administrator
PEEL REGIONAL POLICE ASSOCIATION
Stu Campbell, Administrator
YORK REGIONAL POLICE ASSOCIATION
Paul Bailey, President
Public Safety, Efficiency and the Police
A Report to the Task Force
on the
Future of the Greater Toronto Area
submitted by
The Police Associations of
Halton, Peel, York, and Durham Regions
September, 1995
2
Introduction
Profound social and demographic change has swept through Ontario in the past decade and
nowhere has this been more apparent than in Metropolitan Toronto and the regions of Durham,
York, Halton and Peel.
Explosive population growth, the need for fiscal restraint and rapidly changing social dynamics
have caused the residents of the GTA and their elected representatives to seek new and more
effective ways to deliver the community services which are funded by their taxes.
The Task Force on the Future of the Greater Toronto Region, the Golden Commission, has been
vested with the principal responsibility of providing options for the future of this area and its
political organization. As part of this process, the Police Associations of Halton Peel, Durham
and York Regions have prepared and submitted this report. Within it, the Associations have
outlined their proposal for police organization within the GTA that will best serve the citizens of
the area for the present, the near future and into the next century.
It is our hope that the model recommended in this report will be seen as the most realistic,
efficient and cost-effective method of delivering policing services to the residents of the
Greater Toronto Area.
After careful analysis, the police Associations of Halton, Peel, Durham and York Regions have
concluded that the most efficient and cost-effective means for providing policing services to the
residents of the GTA is a further refinement of the existing regional model.
The correct choice is one that can maximize the number of police officers on the beat for any given
geographic area or population. We believe the current system clearly out performs any other
proposed model with respect to this key criterion.
3
Principles
innovation inter-jurisdictional cooperation and seeking new
services have led the way in organizational-
ways to deliver their services better.
This submission supports a policing organizational
structure that will provide the maximum service levels
at the least cost. Specifically, the As
sociations are proposing a plan that will reflect the following
principles:
B Public Safety
B Cost Efficient
B Community- oriented Policing
B Effectiveness of Service
B Government Accountability
B Fairness and Balance
B Di versi t y
Regional Policing Historv in Ontario
Police experience in Ontario with regionalization pre-dates what we know as Regional Governme
this province. In 1957, the City of Toronto began the process when it amalgamated 13 separate p
departments into one city-wide force.
Following the recommendations of a 1974 task force report, regional forces were formed through
province. The principal rationale for this move was the reduction of duplication overlap and frag
responsibility.
After reviewing the regionalization initiative, in 1978, the Ontario Policing Commission conclude
significant operational benefits had been achieved including:
. 17 per cent lower policing costs per capita
. increased police coverage (hours per capita and police-to-population ratios)
. lower increase in crime per 1,000 people
B
a lower percentage of officers assigned to management and non-operational duties
B greater flexibility in the deployment of officers
During the implementation phase, regional services reported a number of problems, most stemming fro
the challenges of integrating separate Police Services.
However, the majority of such problems have been reduced or eliminated overtime. These tidings were
confirmed by the 1993 Commission of Inquiry into the Niagara Regional Police Force.
The available empirical evidence supports the conclusion that after working with the regional model for
more than 20 years, Ontarios police forces have learned how to make the system work.
Far from being stagnant, the regional model continues to be adapted, modified improved and although not
perfect, the current regional model provides efficient and cost-effective policing to the residents of On
5
In its efforts to achieve maximum policing efficiency and effectiveness, the Golden Commission is
considering a variety of organizational models, including the Town model, the Super Region
the so-called Super City Plan.
It should be emphasized that the current regional policing model is not dependent on any particular
government - either regional or municipal. Rather than a political model, it is in reality a
regional/geographical model, serving defied boundaries and communities.
Today, each regional police service covers its own unique blend of municipalities, ranging from
cities in Metro Toronto to suburban/urban communities in HaIton, to the dispersed towns and large rural
areas located in York, Durham and Peel who have their own unique patterns of development. The
regional police model provides optimal service.
6
The Town Model
The Town model prescribes a return to the pre-regional government organization that existed before the
1970s. It argues that regional government in Ontario has proven to be an expensive experiment in
overgovernment, and that essential services can be most efficiently and cost-effectively supplied by
individual municipalities. In addition, proponents say, municipal organization of policing will provide
municipalities with greater control over policing resources and how they are allocated.
While these arguments have substantial grass roots appeal, they are not supported by the empirical
evidence gathered in Ontario over the past 20 years.
As mentioned earlier, the adoption of a regional/geographic organization for policing in Ontario has
delivered what was expected: the reduction of duplication, overlap and fragmented responsibility. The
overall benefits to Ontario citizens have been lower per capita policing costs and a higher level of public
safety.
To revert to a Town model would undo all the efficiencies that have been achieved to date. Individual
municipalities would be forced to duplicate existing services or cut back on the number and level of
services provided. The overall quality of policing would suffer, and hence, so would the level of public
safety in the Regions of York Peel, Halton, and Durham.
Although the desire for greater public input into policing is understandable, it must be tempered by
economic realism. Even today, many small Ontario municipalities are disbanding their own police forces
and contracting policing services from the Ontario Provincial Police. If the province were to revert to the
Town model, this trend may well be heightened and accelerated with the probability of additional costs
being incurred by the Province.
7
The Super Region Model
costs to taxpayers. The arguments by the proponents for this model are essentially an extension of
forward for the regional model, i.e. a further reduction in overlap, duplication and fragmentation
responsibility. If regionalization reduced the presence of these conditions in the 1970s, the argum
then super-regionalization will deliver the same benefits in the 1990s and beyond.
However, this optimistic premise does not seem to be borne out by real-life experience. In fact, th
appears to be a definite limit to the efficiencies and economies of scale that can be reached in a pol
After the Service reaches a certain threshold size, economies of scale are transformed into diseconomi
and potential savings and efficiencies disappear.
According to the final report on Policing in British Columbia prepared by Justice Wallace Oppal
the diminution of scale economies beyond the optimal threshold size maybe attributed to three fa
policing is labour-intensive
there are few fixed capital expenditures to be shared by a larger group of residents
reductions in administrative costs will be offset by increases in police and civilian members sa
result of amalgamation.
The Oppal Commission concluded that, in general, the hoped-for savings to be accrued from furth
amalgamation of forces appear to be illusory. According to his report:
There is little empirical research on the relationship between police agency size and the quality of
delivery.... a configuration of small to medium size police departments may actually provide a bet
quality of service than one large department... Rather, investigative effectiveness depended more o
of region in which the department was located.
In Ontario, there is a widely-held, but largely fallacious belief that significant savings can still be achieved
through further rationalization of administrative overheads. In part, this is because of the lack of
standardized accounting procedures among the provinces police forces. The adoption of such a system
would improve the effectiveness of inter-regional planning
and analysis.
8
Today, most regional policing operations are functioning with relatively low administration costs
Therefore,
forces.
Additional
there is little, if any potential for increased savings through further amalgamation of pol
savings can and should be achieved through universal joint purchasing programs and o
concluded-operative ventures. Several ongoing police initiatives, including AFIS (Automatic Fi
Identification System) and the PSC (Policing Styles Committee), would be delivered more efficie
unified and coordinated approach had been taken from the outset. This could be achieved through
cooperation, and does not require reorganization under the Super Region model.
It has previously been discussed by representatives of the Government and the Policing communi
immediate measures should be implemented to ensure that all municipalities in Ontario be require
for the provision of police services within their communities. This avenue should be explored and
taken to ensure it is occurring.
In addition where such practice is not already occurring within the Police Service, consideration
given to billing commercial and private organizations and individuals for non-core police service
would assist with the recovery of some costs.
The Super Region Model and Communitv Oriented Policing
Although Justice Oppal was critical of regionalization in his report, he was examining a situatio
British Columbia that is similar to the Ontario context of the 1970s. Ontario police forces have h
years to develop and refine the current system and eliminate its weaknesses. Justice Oppals reserv
about the dangers of further regionalization should be interpreted in Ontario as a caution against
regionalization.
The Oppal Commission has concluded that larger forces do not necessarily translate into more co
effective policing. In addition, the commission has concluded the continued concentration of polic
resources into larger forces may have serious negative repercussions on the ability to deliver com
oriented policing services.
Since its first widescale implementation in the late 1980s and early 1990s, community-oriented
has been touted as an innovative and effective approach to reducing the incidence of crime.
Community-oriented policing is a philosophy or style of policing which calls for a partnership bet
police and the public in order to produce a secure and peaceful environment for our communities.
9
active in nature, in contrast to conventional police methods, which are reactive. Both policing ph
can and must work hand in hand to be successful.
To be achievable, community-oriented policing relies on problem solving, and attempts to deal wi
social, economic, political and environmental causes of crime within a specific manageable geogr
area.
Although individual models may vary, all truly community oriented policing programs stress the
elements:
B problem solving. A pro-active approach to maintaining public order, problem solving emphasiz
need to respond to community concerns in order to prevent criminal incidents.
B
accountability and authority. Authority for community-based policing is entrenched in the princ
of the Ontario Police Services Act, of 1990. The legislation prescribes a high level of co-oper
between the providers of police services and the communities they serve. Internal and external
organizational openness allows the community to participate in defining problems, and in the
development and implementation of services.
B
service orientation. Community police services exist to provide an essential service. The citizens
the community are the primary customers of this service and performance is measured by ci
satisfaction.
By adopting this approach, communities become more involved in establishing their policing prio
This new approach has struck a chord with the Canadian public, which has consistently expressed
to participate with the police in efforts to decrease crime and create safer communities.
Community-oriented policing can bean effective method of providing police services. However, si
predicated on close police-citizen interaction, community-oriented policing would be jeopardized b
to super-regionalization. In its place the more conventional reactive policing would be the only
Prioritv policing prescribes the concentration of police resources in high crime areas, usually dow
cores. It is a reactive approach to the maintenance of order, emphasizing intervention and apprehen
opposed to crime prevention.
10
In his report, Justice Oppal stated:
B
One of the strongest arguments against the regionalization of policing services is that it may be
detrimental to community-based policing.
B
Community-based policing has been accepted more and more as a strategy to combat increasing crime
rates and fear of crime. Hence local communities are concerned that, if policing resources are drawn
away from them if policing priorities are determined at a super-regional as opposed to a local level,
and if police lose identification with their community, the aims of community-based policing cannot be
met.
*
Police from a larger regional force will be transferred frequently, will not develop community ties
and will not understand or respond to the needs of the particular community.
B
The emphasis on professionalism in the regional police force may have adverse effects if it creates
police officers who are exclusively law eforcement-oriented, formal and distant from the communities
they serve.
According to the Oppal Report, other potentially harmful effects of increased amalgamation of police
Services include:
Loss of local control. Under this system, local governments would turn over control of policing to a super
regional authority. Local citizens would then have considerably less say in local policing policy.
Loss of local resources. If super regionalization results in the allocation of resources according to the
distribution of reported crime, the smaller, more stable communities will suffer the effects of reduced
service levels.
Loss of local police identity. Communities and members of the individual organizations who want to retain
their unique local identity will be unable to do so.
11
In its review of other Canadian police jurisdictions, particularly in Quebec, the Oppal Commission found
that greater amalgamation had indeed translated into a loss of local control and a loss of local resources.
The Quebec example also confirms some of the arguments against regionalization. For example, after the
formation of the Montreal Urban Community Police force, there was a redistribution of police personnel
from suburban areas to the downtown core. . . . This resulted in considerable public dissatisfaction with
policing services in suburban areas, and the growth of private security and parallel public safety services to
meet the policing needs of those communities.
An expansion of the current regional policing model will not preserve the ability of the local Police Service
to ensure the continued protection of life and property, promoting a safe environment for our communities.
When one thinks of New York City, Los Angeles or Chicago, the safety and community spirit of the Police
Services is not the philosophy that comes to mind rather, these departments are considered to be nameless,
faceless armies of officers.
12
The Super City Model
Recently a plan, commonly known as the Super City model, has been proposed as a formula to reform
the GTA.
In its simplest form, the Super city model would:
B
reduce the number of municipalities in a region
. eliminate the regional tier of government completely
. make police forces directly accountable to local municipal councils
Under this plan, the number of separate municipalities would be reduced through forced amalgamation.
The benefit of this, proponents say, is to achieve a larger critical mass, while de-layering, decreasing and
simplifying the government bureaucracy,
By adopting the Super City model, supporters say, economies of scale can be achieved, government is kept
small and accountable, and municipal identities are, for the most part preserved. This is, in effect, a best
of both worlds scenario, selecting the benefits of the Town model and the regional model now in place.
In reality, if policing were organized under the guidelines of the Super City model, policing would be
the worst of two worlds.
. For the past 20years, the Ontario experience has been to refine its regional services. In that time,
the provinces police services have led the way in seeking and finding ways to achieve greater
regional cooperation and operational efficiencies. Inter-regional contracting and other co-operative
initiatives have increased operational economies of scale to a point where they are approaching
their optimum.
If the Super City model is unable to create the uniform critical mass to achieve the required
economies of scale, a deterioration of service quality in some Ontario jurisdictions, particulatev
specialty policing services such as C. I. S. O., Homicide, Identification etc., may result in both public
safety and economic efficiencies being compromised.
13
However, if a decision is made by the political leaders of the province to adopt the Super City model,
the current regional/geographical policing system, which existed before the implementation of
Regional Government, can be fitted to the new model. The current system is designed to provide quality
policing services for a number of municipalities within a defined geographic area, and the adoption of
the Super City model would not fundamentally change the polices mandate. Only the reporting
structure would have to be worked out.
Policing is a unique public service, governed by provincial statute. We support the current Police Service
Board model as it has proven to be an effective means for ensuring necessary provincial representation as
well as community representatives.
14
Conclusions and Recommendations
The opportunity to review the current status and future direction of policing in Ontario as facilitated by the
Golden Commission has proven to be a valuable and thought-provoking exercise.
A number of models for the GTA are under consideration, and the merits of the three principal proposals
have been considered in this submission.
B
B
B
B
B
After careful analysis the police Associations of Halton, Peel, Durham and York regions have
concluded that the most efficient and cost-effective means for providing policing services to the
people of the GTA is a further refinement of the existing regional model.
The correct choice for public safety is one that can maximize the number of police officers on the
beat for any given geographic area or population. We believe the current system clearly out
performs any other model on this key criterion.
The available empirical evidence indicates that the regional police services of the GTA have reached
a point where service effectiveness and cost efficiencies arising from economies of scale are close
to optimal. In other words, the current system is the right size and of the right type for the
communities and populations it serves.
Creation of a Super Force as prescribed in the Super Region plan would result in the creation of
diseconomies of scale, organizational inefficiencies, and a reduction of public safety.
The institution of a Super Region police force would make the implementation and practice of
community oriented policing unattainable. High-crime areas would receive a disproportionate
number of the available police resources, to the disadvantage of other areas.
The adoption of the Super City model would reduce the opportunity to build on the cost efficiencies
that have been achieved in the GTA over the past 20 years. However, of all the alternatives to the
current regional model, The Super City model is the most compatible with the current system. If the
Super City model is adopted as the overall plan for political organization in the GTA, we recommend
that the current regional/geographic organization of police services remain intact.
The Town model under consideration would lead to the inefficient and un-coordinated delivery of
policing services throughout the GTA. The economies of scale that have been achieved over the past 20
years would disappear and the capacity for inter-force co-operation and coordination would be
15
seriously compromised. In addition, the current trend toward greater reliance on the Ontario Provincial
Police for provision of police services in smaller communities would be accelerated.
While we are recommending an enhanced system, we are not claiming that the current
regional/geographical model is the ultimate state of policing in the GTA. For the past 20 years,
Ontarios police forces have been constantly seeking ways to refine the regional/geographic model..
Far from being a stagnant blueprint, it has proved to be a dynamic system, capable of being adapted,
modified and improved. We welcome this continuing challenge.
We believe the current regional/geographic model used by the police should be applied to the
provision of fire, hydro, transit, garbage and other municipal services. The current system has
proven effective for policing in the GTA, and its principles can be used advantageously by other
municipal service organizations.
July 13, 1995
Golden Task Force
for the Greater Toronto
303 University Avenue
Suite 2001, 20th Floor
Toronto, Ontario
M5G 1E6
Dear Ms Golden:
Area
Administration
(416) 396-7775
Fax: (416) 396-7665
Emergency . ........911
FIRE SERVICES MODEL, GREATER TORONTO AREA
Several options for the delivery of fire services are open for consideration including
the status quo up to and including a provincial fire service. However, delivery of
essential services such as the fire service is a fundamental requirement within the
Greater Toronto Area (G. T. A.) and as such should be delivered in the most cost
effective and efficient manner. The following is the personal and professional
opinion of Fire Chief Thomas L Powell, City of Scarborough and is not intended to
reflect the position or opinion of the city of Scarborough.
The current system of providing eme
efficient and is filled with duplication
gency services and inspection service is not
The need to consolidate such aspects of the
essential emergency service that will have a direct impact on the delivery of the
services to the public is evident, Each municipal fire department is independent of
the adjacent fire department and have developed separate support systems.
Emergency dispatch and communications
Each department has its own emergency dispatch systems and communications
centres for the operational aspects of the fire department, operating on radio
frequencies that are not necessarily compatible with the neighboring department,
it is not unusual to have fire trucks on the same street that are incapable of talking
to each other,
Fire Fighter Training
Each department has its own training standards and training facilities. Training
standards in the province are the responsibility of the Ontario Fire Marshal, no
provincial standard exists therefore the standard of training varies with the ability
of the municipality to fund and support the individual fire departments. This is the
case across G.T.A. however a reasonable level of training is maintained by the
G.T.A. fire department notwithstanding that each department operates under
different levels of commitment by the local municipality in terms of financial
support. The need to consolidate the training programs and the training facilities for
use by all of the G.T.A. fire departments is in the best interests of public safety
and makes sense.
Fire Inspections and Fire prevention
Fire prevention and inspection services delivered by fire departments varies across
the G.T.A. as each department has its own method of conducting fire inspections
and interpretation of the fire code. Often the level of inspections for public fire
safety is effected by the financial ability of each municipality together with the
degree of commitment to the need for fire inspections within the various
municipalities that make up the G.T.A. In order to provide a uniform inspection
program and a level playing field for all the business owners in G.T.A. it is in the
best interest of public safety and important for the education of the public that this
function be a consolidated service.
2
Fire response and Fire station location
The operational aspect of the service is determined by the political boundary it is
not unusual to have fire stations located close to the political boundaries and as
such closer to adjacent municipalities street system than the municipalities own fire
station. However there are no agreements among the municipalities to permit the
fire department to cross the boarder on automatic response to the incident. This
should not be confused with the mutual aid agreements that are prolific in the fire
service as automatic response is the closest station to the call being the first to
respond regardless of political boundaries. The reason that automatic response is
not popular is that municipalities have developed the fire department for the
protection of their residents and have no responsibility to supplement the adjacent
fire department considering that the service they are responsible for are in place to
assist the citizens of their host city first and foremost.
Fire department administration
Central administration and central purchasing has proven to be cost effective in all
kinds of situations the fire service should be treated no differently. Duplication of
services and inconsistent purchasing processes is common place. Amalgamation of
these functions should be considered in the interest of fiscal responsibility.
3
Alternative models
Examples of larger jurisdictions can be found all over the world, an example of this
can be found in the United Kingdom a comprehensive report on the subject of
restructuring the British fire service was produced in May 1970 the Report Of The
Departmental Committee On The Fire Service, was presented by the chairman Sir
Ronald Holroyd, the report was also known as the Holroyd report, this report
initiated major change and reduction in the numbers of fire departments, by
consolidation and amalgamation of the services. The British fire services operates
under a system that allows for a local authority system outside of the municipal
government. The model contained in this report is taken from the concepts of the
British model.
In order to provide a fiscally responsible and efficient emergency fire and rescue
service to the G.T.A. consideration could be given to the appointment of a G.T.A.
fire commission. Responsible for the integrated fire department incorporating all of
the densely populated areas of the municipalities in and around metropolitan
Toronto. For example the six fire departments of metropolitan Toronto could be
combined with the fire departments from the urban and populated areas of the
surrounding municipalities for provision of one consolidated fire service.
The fire commission would consist of appointed members by the councils of the
municipalities that the new fire department serves. The commission would be
structured in a similar format to the Metro Toronto Police services board. With
appointments being directly controlled by the participatory municipalities.
When considering the provision of emergency services to the G.T.A. the role of the
fire service should not be restricted to fire operations the current fire departments
respond to a mix of calls including traffic accidents, Industrial accidents, chemical
incidents, medical assistance and of course fire calls.
The possibility of the fire service providing the emergency medical ambulance
service is certainly not uncomprehensible as the first response to all medical calls in
Metro Toronto is the fire service along with the Police and Ambulance service and
obvious area of duplication that needs to be addressed. The concept of providing
medical response and transportation by the fire service is not a new concept this is
practiced in many areas of the province and is certainly a viable and cost effective
option for the G. T. A..
5
Conclusion
In conclusion there are six fire departments within Metropolitan Toronto ranging in
size from less than two hundred fire fighters in East York to the Toronto fire
department with over 1300 fire fighters. When considering the G.T.A. there is no
reason to consider that current metropolitan boarder is restrictive when considering
emergency services.
The following model
over the G.T.A. in a
capable of including
is one method of providing consolidated emergency services
consistent and efficient manner, the model is flexible and is
such current departments as is considered appropriate in
conjunction with or independent from the political boundaries and can include such
numbers that are considered expedient depending upon or independent from the
political municipal system that may come out of the current review of the GTA as
current fire departments
the model as desired.
or portions of their areas could be added or deleted from
6
FIRE COMMISSION MODEL
OPTIONS
Option One
Create Metropolitan Toronto fire commission
Etobicoke
Scarborough
North YorK
Toronto
East York
York
Option Two
Create one G.T.A. fire commission
Defining the GTA as incorporating the populated areas of adjacent towns and cities to the
current Metropolitan Boundaries.
Toronto
North York
Scarborough
Etobicoke
York
East York
Mississauga
Brampton
Pickering
Ajax
Markham
Richmond Hill
Vaughan
Note: Extending the Metropolitan Toronto boundary from Steels Avenue to Major
Mackensie Drive to incorporate only the areas of the three municipalities Markham,
Vaughan and Richmond Hill that are densely populated.
Option three
Create four fire Commissions as follows.
Peel Durham York Toronto
Mississauga Oshawa Vaughan Toronto
Brampton Pickering Richmond Hill North York
Burlington Ajax Markham Scarborough
Whitby Newmarket Etobicoke
Aurora York
East York
Option Four
Create three G.T.A. fire commissions using geographical and population criteria
West East Central
Etobicoke Scarborough Toronto
Mississauga Pickering Vaughan *
Brampton Markham* North York*
Burlington Ajax Markham*
Oakville* East York* York
North York* Richmond Hill*
Toronto*
Note:
Portions of the municipality indicated by * incorporated within the boundaries indicated
below.
West:
The Western Fire Commission could include those areas included in the borders of
Mississauga, Brampton, Etobicoke and Burlington. as well as those areas densely
populated in Oakville
East:
The East Fire Commission could include those areas east of Hwy #404, South of
Major Mackensie Drive, West of Pickering and Ajax eastern Borders.
Central:
The Central Fire Commission could include those areas east of the western borders
of Toronto, York, North York and Vaughan, South of the Major Mackensie Drive and
west of Hwy #404.
8
METROPOLITAN TORONTO FIRE COMMISSION
SCARBOROUGH
GREATER TORONTO AREA COMMISSION
Mississauga
Toronto
North York
Scarborough
Etobicoke
York
East York
Brampton
Vaughan
Richmond
Markham
hill
Ajax
t he GTA :
Re-TooIing to Manage
Growth, Ensure Tax
Fairness and Improve
Local Accountability
Proposals to Further Discussion
Submitted by the Regional Chairs of
Durham
Halton
Peel
York
June 1995
June, 1995
Dear Reader,
The Regional Chairs of Peel, Halton, York and Durham are pleased to provide this
paper to continue the discussion on how to make the GTA work well. We recognize
that there have been, and will continue to be, new positions and briefs added to this
discussion. Our goal in this effort is to further the discussion in a constructive and
thought provoking fashion.
Clearly, there is no single, simple solution to the problems that exist within the GTA.
The problems have developed slowly over time and they have been studied. We
believe corrective action must begin now, and to ensure success, we will have to
collaborate on the solutions. While everyone involved in the governance of the GTA
may generally agree on the list of problems we face, our strategies and proposed
solutions are based on our differing perspectives. There is no question that this paper
reflects a 905 regional perspective, although every effort has been made to recognize
and value different points of view.
We make four straight forward proposals for change that include aggressive growth
management practices, a financial swap, greater accountability in governance with
improved intergovernmental co-ordination, and tax reform. We have submitted this
paper to the Golden Task Force for its consideration.
Your comments and suggestions are most welcome on this discussion paper. Please
send them to us c/ o Emil Kolb, Regional Chair, 10 Peel Centre Drive, Brampton,
Ontario L6T 4B9.
Yours truly,
Em i l Ko l b
Chair, Region of Peel
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2.
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7.
Reforming the GTA:
Proposals to Further Discussion
Table of Contents
Page
Executive Summary
The 905 GTA - Profile In Urban Growth And Diverse Communities 3
Managing GTA Growth - Fixing The Planning/Financing Problem 5
Principles For Re-Tooling The GTA 6
GTA Governance Reforms: Proposals For Discussion 8
GTA Service Financing Reforms: Proposals For Discussion 11
GTA Tax And Assessment Reforms: Proposals For Discussion 1 4
Summation - Practical And Ambitious Reform For The GTA 17
Figure 1- GTA Growth Profile 3
Figure 2- Diversity in 905 GTA 4
Figure 3- Land Use Planning - The Key 5
Figure 4- Provincial-Municipal Service Finance Swaps 11
Figure 5- GTA Unconditional Grants/Household 13
Figure 6- Assessed Value Relative to Market Value (GTA) 15
The Greater Toronto Area
Lake Ontario
Executive Summar y
Background
Metro Toronto and the four surrounding regions of the Greater Toronto Area [GTA] will
face many common challenges in the future that will require close cooperation. As the
GTA continues to grow in the years to come, most of the growth will occur in the
Regions of Durham, Halton, Peel and York, creating distinct growth-related pressures for
those Regions.
It is this common agenda centred on growth management that has prompted the
preparation of this joint discussion paper. Any GTA reform agenda must be broad enough
todeal with the core issues of Metro Toronto, as well as the growth-related challenges
of Durham, Halton, Peel and York.
In essence, GTA reform is an issue whose time has come.
The overall reform must be guided by clear and unequivocal principles, namely:
Proposals
B Improved planning and growth management through a hard service/soft service
financing swap with the Province (Assumption that provincially mandated/funded
services continue to be delivered by municipalities, most likely on a fee-for-service
basis]
B Enhanced political accountability achieved through a clean two-tier municipal system
featuring significantly fewer special purpose bodies
B Greater fairness in allocating property tax burdens among and between property
classes, achieved by adopting both assessment reform and variable mill rates in each
of the five GTA regions
This paper has been developed by the Regional Chairs of Durham, Halton, Peel and York
in order to further constructive dialogue on reforming the GTA. While many of the ideas
in this discussion paper are not new, they are presented as part of a coherent and
practical reform package. The paper is not intended to be a magical solution, but rather
a starting point that will lead to a resolution of these complex issues.
The Chairs of Durham, Halton, Peel and York look forward to playing an active role in
the governance reform process and will work diligently to ensure governance changes
work to the benefit of all residents of the GTA.
1. TRE 905 GTA - A PROFILE IN
URBAN GROWTH AND DIVERSE
COMMUNITIES
The five regional governments of the
Greater Toronto Area [GTA] will face a
number of common challenges in the
coming years the reality of provincial
fiscal cutbacks, the inevitability of
escalating service demands from an aging
population, the need for more compact
nodal urban form, the promotion of
sustainable economic development.
These challenges will be of critical
i mpor t ance t o t he r esi dent s and
businesses of the GTA. The GTAs regional
governments will need to work together
i n r espondi ng t o t hese common
challenges. The GTA regions must
maximize the efficiency and effectiveness
of service provision while maintaining
clear political and fiscal accountability to
their respective taxpayers. Many of the
challenges of the future will bind together
the interests of Metropolitan Toronto and
the surrounding area code 905 regions
of Halton, Peel, York and Durham.
Without minimizing the need for GTA-wide
co-operation on a broad range of issues,
the regions of Durham, Halton, Peel and
York are also acutely aware of distinct
challenges they must grapple with.
Foremost among these challenges is
growth management. It is the challenge of
growth management, and the need for a
clear provincial understanding of the
nature of thi s chal l enge, that has
prompted the preparation of a common
discussion paper on GTA reform. Any
GTA reform agenda that fails to address
growth management will have been cast
far too narrowly and will not enjoy broad
support across the entire GTA.
There is no doubt that the GTA is going to
grow in coming years. Most of this
growth will occur in Durham, Halton, Peel
and York. Figure 1 displays population
data pertaining to both Ontario and the
GTA, prepared by the Ontario Ministry of
Finance. This data indicates that the GTA
will account for an increasingly
share of the total Ontario population
by year 2021 ). The forecast
FIGURE 1- GTA Growth Profile (Ministry
60%
60%
40%
30%
20%
10%
o%
60%
5 0 %
40%
30%
20%
10%
o%
large
[44%
also
al t hough r oom f or
further streaml i ni ng i s
possible;
A multiple single tier
har dshi p coul d r esul t f or some
GTA t axpayer s i f t h e n e w
harmonized service level reflected
the highest previous service level
standard. Presumabl y, GTA-wi de
tax base harmonization would have
to occur simultaneously across the
new single tier catchment area.
Wh e n t h e s e a d mi t t e d l y c a u t i o u s
observations about competing governance
models are taken into account, the virtues
of the existing two-tier model become fairly
clear. Together, the two tiers act in concert
to deliver a blend of scale efficiencies and
democr at i c par t i ci pat i on, of
st andar di zed ser vi ces and
locally tailored services, of tax
base sharing and beneficiary
pay philosophies. Co-ordination
bet ween t he t wo t i er s i s
expedited through the indirect
election of regional councillors
f r om wi t hi n ar ea muni ci pal
councils. The scale economies,
account abi l i t y, a n d c o -
or di nat i on t hat char act er i ze
two-tier government make it a
ii] Expanding Municipal Powers
The reform of the existing multiple two-
tier governance model for the GTA starts
wi t h a r ecogni t i on t hat f undament al
change must begin at the Province. A
shift in the provincial-municipal paradigm
needs to occur a shift in provincial
a t t i t u d e t h a t a c k n o wl e d g e s GT A
municipalities as legitimate governments
abl e to responsi bl y wi el d permi ssi ve
legislative authority. The children of the
Province are now fully grown, and their
ascent into adulthood requires provincial
recognition through a new Municipal Act.
A s t h e A s s o c i a t i o n o f
Municipalities of Ontario (AMO]
has obser ved i n a r ecent
p u b l i c a t i o n , . . , a n e w
Municipal Act should adhere to
the principle that municipalities
shall have a general right to
act on their own initiative with
regard to any matter which is
not exclusively assigned to any
o t h e r g o v e r n m e n t o r
specifically excluded from the
c ompet enc e of muni c i pal
gover n mer i t . On c e t h e e x i s t i n g
framework of municipal powers has been
reformed to recogni ze the real i ti es of
municipal governance in Ontario in the
late 20th century, progress is possible on
other reform questions.
iii] Rationalizing Special
Purpose Bodies
Institutional reform in the GTA must take
into account the publics overall perception
of too much local government that costs
too much. GTA municipalities understand
and sympathi ze wi th publ i c frustrati on
concerning the apparent excess of local
government in the GTA. Taxpayers are
correct in noting that too many public
agencies seem to be involved in making
local decisions, spending public funds and
delivering services. The problem of too
much government is best understood as a
pr obl em of t oo much unaccount abl e
government. The municipal landscape is
dotted with numerous non-elected Special
Pur pose Bodi es [ SPBs] i nvol ved i n
municipal issues. Consider the following
list:
B
B
B
B
B
B
B
B
Library Boards
Police Service Boards
Transit Commissions
Housing Authorities
Conservation Authorities
Childrens Aid Societies
Multi-Service Agencies [MSAs]
for Long-Term Care
Hydro Commissions
Whi l e t hi s l i st i s not exhaust i ve, i t
demonstrates the nature of the problem.
The abundance of SPBs causes confusion
and di l utes the accountabi l i ty of dul y
elected municipal governments. Currently,
SPBs account f or appr oxi mat el y t wo-
thirds of each GTA regions property tax
levy a fact of great concern for elected
regional councils. The 905 regions do
not accept the proposition that taxpayers
are overwhel med by the compl exi ty of
electing local councillors, who in turn sit
on a regional council. Those who suggest
a clean two-tier system [not muddied by
an excess of SPBS] is too complex seem
to display a rather condescending attitude
t owar ds t ax pay er s . Tax pay er s ar e
certai nl y capabl e of understandi ng and
appreciating the rationale behind a clean
two-tier system of local government that
features the indirect election of upper-tier
counci l l or s. The chal l enge bef or e t he
Provi nce i s to rati onal i ze the current
assor t ment of SPBs i nt o t he desi r ed
clean two-tier system. A clean two-tier
system would see the functions carried
out by many of these SPB assumed by
elected municipal councils.
iv] Coordinating GTA-Wide Growth
Management
There i s one fi nal pi ece to the GTA
institutional reform puzzle that still needs
to be put in place a new
mechani sm/structure to ensure proper
pol i cy and pr i or i t y co- or di nat i on bot h
wi t hi n t he Pr ovi nce and bet ween t he
Province and GTA municipalities.
Informed discussion concerning the co-
ordination of growth and redevelopment
pri ori ti es wi thi n the GTA, and i ndeed
cr oss t he ent i r e pr ovi nce, begi ns by
acknowl edgi ng the key rol e pl ayed by
senior levels of government, The federal
government drives population growth in
Canada [and by extension the GTA] via
immigration policy, while the Province can
i mpact the depl oyment of thi s growth
through its own infrastructure investment
decisions, If growth priorities are to be
considered within a rational framework,
the Province needs to develop an Ontario
growth management strategy describing
where growth should ideally be steered
whenever possi bl e London ver sus
Ki t chener - Wat er l oo- Cambr i dge ver sus
Ottawa versus GTA versus Ni agara ?
Pr ov i nc i al i nf r as t r uc t ur e f i nanc i ng
decisions should be made according to
this strategy.
Once the Province has exercised best
efforts at steering growth according to
i t s st r at egy, i t s pl anni ng r ol e shoul d
normally focus on broad cross-boundary
dispute arbitration. Municipalities across
Ontario should determine the urban form
det ai l s of t hei r c ommuni t i es and
plan/phase development accordingly. In
the case of the GTA, the provincial role is
10
more complex. The nature of the GTA
megalopolis and the magnitude of its
future growth challenges suggest that a
more indepth provincial co-ordination role
may be required.
The province should establish a forum for
GTA co-ordination which would serve as a
non-i nsti tuti onaI oppor t uni t y f or
muni ci pal and pr ovi nci al el ect ed
representatives to formulate solutions to
inter-municipal servicing issues and
discuss GTA-wide development and
i nf r ast r uct ur e pr i or i t i es. Such a
forum/committee should include Regional
Chairs, Mayors and appropriate provincial
Ministers and MPPs. The forum could be
co-chaired by a new Minister responsible
for the GTA and an appropriate municipal
representative. The Minister would be
charged with the integration of various
ministrys initiatives and policies into a
coherent GTA framework. The Minister
would also act as an advocate of GTA
interests in Cabinet much in the same
Centrepiece of 905 Reform -
Provincial-Municipal
Service Financing Swap
Municipalities absorb Province absorbs
following grants: following costs:
Regions:
GWA
Roads
Child Care
Sewer/Water Public Health (General)
Health Inspection
Homes for Aged
Waste
Unconditional Grant
New Police Public
Security Grant
Area Municipalities:
Roads Properly tax supported
Storm Sewers Education (balancer)
Transit
Unconditional Grant
New:
Property Assessment
B Region/Area/School Board tax shifts eliminated through
mill rate restatement
earlier and includes both regional, area
municipal and education services. The
st r uct ur e of t he pr oposed swap
recognizes that municipally delivered
services feature varying degrees of
provincial interest. In two cases, the
provincial interest in a given service
results in continued provincial-municipal
cost-sharing. In most cases, the re-tooling
principles dictate that one level of
government assume total financing
responsibility for a given service. A
description of the proposed service
financing swap follows.
In an effort to closely align the costs of
growth/redevelopment financing with
municipally driven planning
decisions, the 905 regions
recommend the elimination of
al l provi nci al capi tal and
oper at i ng gr ant s f or t he
following hard municipal
services local and arterial
roads, sanitary and storm
sewers, water and wastewater
distribution/ collection, waste
management, local health
inspections. Transit cost-
sharing with the Province
should be re-negotiated to
allocate a higher proportion of
t ot al pr ogr am cost s t o
municipalities. The costs of
property assessment in the
GTA would also be completely
absorbed by municipalities.
the widely held belief that municipalities
are well equipped to continue delivering
these provincially mandated/funded
human services probably on a fee for
ser vi ce basi s. Fee f or ser vi ce
arrangements with the Province should
include comprehensive management
incentives clauses that preserve the
existing municipal commitment to cost
control and efficient management.
Local property tax support for education
would be reduced by the amounts
necessary to balance new municipal
costs with new provincial costs.
While simplifying the financing and
In return, the Province should assume
100 per cent financing responsibility for
human services that redistribute income
and t hose t hat f eat ur e a pr i mar y
provincial interest welfare, child care,
homes for the aged, and public health
[ except heal t h i nspect i on] . Thi s
component of the swap is consistent with
accountability structures for
many services, the proposed
swap also recognizes the
merits of maintaining shared
financing for two specific
servi ces t hat f eat ur e
si gni fi cant provi nci al and
municipaI i nt er est s. I n
recognition of the provincial
i nt er est i n GTA t r ansi t
[especially inter-nodal transit],
amended cost-shari ng
mechanisms would remain in
place. Municipal policing is a
second ser vi ce t hat has
traditionally featured a strong
provincial interest witness
the provincial insistence on
mai ntai ni ng the power to
appoint a majority of police
board members. In order to give concrete
financial expression to the Provinces
legitimate interest in municipal policing, it
is proposed that the existing unconditional
grants for all GTA municipalities be
replaced with a new conditional public
security policing grant. Existing upper
and l ower-ti er uncondi ti onal grant
r evenues woul d f i nance t he new
FIGURE 5- GTA Unconditional Grants/Household
240
220
200
180
160
140
120
100
80
60
40
20
0
conditional public security policing grant.
An important issue associated with the
proposed public security grant for
policing is the treatment of growth. The
GTA will continue to attract an increasing
share of province-wide population growth
As well, the lions share of future
population growth in the GTA will be
focused on the four 905 regions.
However, current unconditional grant
entitlements are calculated in terms of
year-over-year percentage changes that
do not recognize growth. The current
unconditional grant allocation in the GTA
also features significant per household
grant variations that can no longer be
justified by a now obsolete historical grant
formula. Figure 5 illustrates the variance
in per household unconditional grants for
the GTA regions. For Peel and York, a
1993 per
Metro level
household allocation at the
would translate into an annual
mill rate decrease of roughly 2 per cent ($
million). The proposed public security grant for
policing will need to be structured in a way that is
sensitive to growth pressures as well as non-
growth factors.
The proposed swap makes good sense from a
number of perspectives. It would result in GTA
municipalities raising 100 per cent of needed
capital financing for their road, waste, sewer and
water infrastructure and an expanded share of
transit financing the key long-term growth
management costs that arise from municipal
planning decisions. The swap would also result in
100 per cent municipal financial responsibility for
the hard service operating cost pressures that
also arise from these same planning decisions.
The Province would gain 100 per cent financing
control over social and health services that are
often income targeted and redistributive in nature
thus ensuring funding from more progressive
revenue sources. Meaningful progress could also
be made in reducing the existing reliance
on property taxes to fund primary and
secondary education.
Better muni ci pal pl anni ng and an
enhanced emphasis on responsible
growth management decision-making
would also be much needed byproducts
of the swap. The province would still
approve regional official plans and would
thus be in a position to ensure that
municipal planning and development
decisions did not adversely affect its own
human service cost structures. The
province could also consider a different
deployment of growth across Ontario, if it
believed a redeployment could improve its
return on existing human
infrastructure.
It is readily acknowledged that
more analytical work remains
t o be done shoul d t hi s
proposal prove t o be of
i nterest to the Provi nce,
Whi l e t he 905 regi ons
understand the need for some
rough measure of fi scal
neutrality in implementing
such a swap, they are not
adverse to any reasonable
modification of this proposal
servi ces
The 905 regions are sensitive to existing
inequities in the property tax/assessment
system , and feel meaningful and timely
reform is essential if successful growth
management is going to occur.
Province-Wide Inequities
The provincial-local finance system in the
GTA features a variety of problems. Many
of these problems are well documented in
both municipal and academic circles. The
most serious, all-encompassing problem
in the provincial-local finance system has
recently been documented by the Greater
Toronto Co-ordinating Committee [GTCC]
in its study Rethinking the Fundamentals:
Provincial-Local Finance in the Greater
Toronto Area, This GTCC study
assuming it is consistent with the above-
mentioned ten re-tooling principles.
6.
REFORMS: PROPOSALS FOR
DISCUSSION
This papers proposed swap of service
financing responsibilities between the
regions and the Province will result in
significant improvements in GTA planning
and growth management, but may not
materially reduce or reallocate the existing
property tax burden within each region.
documents the annual outflow
of $2,400 per household in
provincial revenues [generated
wi thi n the GTA] to other
economi c regi ons of the
province. The study notes the
outflow trend has worsened
throughout the 1990s despite
the disproportionate impact of
the recession on the GTA and
the unique port of entry
pressures faced by GTA
service providers. All GTA
municipalities support the conclusion
reached in the GTCC study that current
levels of revenue redistribution are simply
not sustainable given the relatively high
property tax burdens and relatively low
per househol d pr ovi nci al subsi dy
allocations that characterize local finance
in the GTA.
GTA Assessment Inequities
Aside from the economic development
disadvantages inherent in having the
highest per household property tax burden
in the province [see Rethinking the
Fundamentals), the property
tax/assessment system in the GTA
features a variety of fairness problems both
within and between property classes. A
brief discussion of these problems follows.
Within any of the five GTA regi ons,
properti es wi thi n the same cl ass,
featuring identical market values, do not
pay the same property taxes for school
board and regional services. This obvious
unfairness occurs because the area
municipalities within each region run on
differing market value base years. These differing
base years make it necessary to calculate
multiple school board and regional mill rates in
order to raise the required property tax revenues
from each area municipality in a given region. For
instance, in the case of York region, nine mill
rates are used to raise property taxes from nine
constituent area municipalities. There is simply no
such thing as a single regional mill rate applied to
each class of property.
Fairness problems also extend to tax burden
allocations between classes of property. Within
any of the five GTA regions, each property class
represents a certain percentage share of total
market val ue. Each property cl ass al so
represents a certain percentage share of total
taxable assessment. Perfect fairness in allocating
tax burdens among classes would demand that a
given class of property represent identical relative
shares of both market value and taxable
assessment. In reality this type of fairness simply
does not exist in any (GTA municipality. Single
family residential properties are under-assessed
(for tax purposes] relative to other property
classes given their share of total market
value. Apartments and commercial/ industrial
properties are over-assessed [for tax purposes]
given their respective shares of total market
value. The magnitude of the between class
unfairness depends on the percentage of market
value used to calculate taxable assessment for
each class, within each municipality.
Figure 6 documents the magnitude of the
between classes assessment unfairness for all
GTA municipalities. Figure 6 data should be read
across the chart for each municipality in order to
appreciate the extent of the problem. For
instance, in the City of Toronto single family
residential property is assessed at a percentage
of market value that is almost five times lower
than apartments and three times lower than
commercial property. In Mississauga single
family residential property is assessed at a
percentage of market value almost twice as low
as apartments but only slightly lower than
commercial property. It should be noted
that this problem is particularly acute in
Metro Toronto, but also exists in the rest
of the GTA. The challenge in the 905
GTA is to pre-empt any further erosion in
tax fairness.
Proposed solutions to the existing fairness
problems within and between property
classes must pass a litmus test that
includes the following criteria:
B Is the solution timely?
B Is the solution practical?
B Is the solution comprehensive?
. Does the solution promote
accountability?
A range of possible solutions to
property assessment and tax
policy inequities have been
considered, and the following
broad conclusions have been
reached:
Assessment Reform
GTA assessment reform should
result in a series of region-wide
property tax bases that feature
caused by the Business Assessment Tax
[BAT) should be addressed as soon as
possible, ideally by eliminating the BAT
and expanding the remaining owner
targeted realty component of business
taxation.
Variable Mill Rates
The Province should eliminate the current
legislative requirement that forces non-
residential mill rates to be set 17.6 per
cent higher than residential mill rates. In
place of the existing requirement, the
Province should permit municipalities to
set variable mill rates for each property
class, with said mill rates to be struck by
t he t ax col l ect i ng l evel of l ocal
within class fairness i.e. properties in
any gi ven cl ass wi t h i dent i cal
assessments should experience identical
tax burdens for upper-tier and school
services. Any proposed new assessment
system should meet the above- mentioned
litmus test of timeliness, practicality,
comprehensiveness and accountability.
The assessment system need not
address between class fairness issues.
Fairness and administrative problems
government. A variability
band could conceivably be
set to limit the degree of mill
r at e vari abi l i ty among
classes, thus avoiding any
efforts to use tax burden
differentials as bonusing
inducements.
Variable mill rates would
provide timely relief to those
muni ci paIi ti es facing
particularly acute between
class fairness problems. Variable mill
rates would also promote accountability
by providing the flexibility for each
municipality to solve its own made at
home fairness problems in a transparent
fashion. Municipal councils would gain
control over the distribution of the
property tax burden between classes, and
would exercise this control in a clear and
accountable fashion undistorted by
complex assessment discount factors
that are invisible to the public.
7. SUMMATION - PRACTICALLY AND
AMBITIOUS REFORM FOR THE
GTA
GTA reform is an issue whose time has
come. The existing system of service
responsibilities must be re-tooled to
ensure improved planning and growth
management. The existing property
tax/assessment system must be re-
tooled to ensure taxpayer fairness and
economic competitiveness. The existing
governance model must be re-tooled to
promote clarity and accountability. The
overall reform effort must be guided by
clear and unequivocal principles
respect for local diversity, the need to
preserve the elements of the status quo
that already work, the importance of both
core Metro Toronto and 905 agendas,
t he enhanc ement of political
accountability, the efficacy of two-tier
service delivery.
In summary, the 905 GTA reform
proposals would re-tool the GTA in a
fashi on that i s both practi cal and
ambitious:
B i mpr oved pl anni ng and gr owt h
management achieved via a hard
service/ soft service financing swap
with the province (a swap fiscally
balanced by removing education costs
from the property tax];
B enhanced political accountability
achieved through a clean two-tier
municipal system featuring significantly
fewer special purpose bodies;
assessment reform and variable mill rates in
each of the five GTA regions;
B necessary co-ordination of GTA-wide growth
management priorities via a new GTA forum
for co-ordination composed of provincial and
municipal politicians.
It is the hope of the 905 Regional Chairs that
this discussion paper, and its proposals, will
balance and strengthen the current dialogue on
GTA reform. While many of the ideas in this
discussion paper are not new, they are presented
as part of a coherent and practical reform
package. The Chairs are convinced that GTA
reform needs to be relevant to the entire GTA -
from Burlington to Clarington and north to
Georgina. The Chairs recognize that a strong
core city is essential, as is a viable growth
management strategy for the evolving towns and
cities surrounding the core.
The regions of Durham, Halton, Peel and York
look forward to playing an active role in the
ongoing governance reform process, and will
work diligently to ensure governance changes
work to the benefit of all the residents of the GTA.
B greater fairness in allocating property
tax burdens among and between
property classes, with said fairness
achieved by adopting both region-wide
September 29, 1995
Dr. Anne Golden, Chair
Greater Toronto Area Task Force
393 University Avenue
20th Floor -2001
Toronto, Ontario
M5G 1E6
Dear Dr. Golden:
In June of this year, the Regional Chairs of Peel, Halton, York and Durham collaborated on the development of a
Since June, each of us have met with a wide variety of stakeholders on the issue of GTA reform, using the 905 paper
as a focus for discussion. We have also worked with the GTA Mayors in an effort to gain consensus on a range of
proposals for fixing what needs to be fixed in the GTA. Accompanying this package is a letter with attachments,
from Mayor Robertson, who led the GTA Mayors Governance Sub-Committee. As you will see the Mayor has
worked hard with the Mayors to garner considerable support from Mayors across the GTA for the recommendations
contained in this paper. The product of our cumulative efforts is attached.
The proposed solutions and strategies contained in The Seven Point Plan to Reform the GTA - Leading by
Example with Meaningful Change provide a range of viable, common sense solutions that the Province can imple-
ment. Our focus has been to provide solutions that enjoy the support of most municipal political leaders across the
GTA. As you review the individual submissions of municipalities, you will see that their common threads are
woven into this paper. What is proposed promotes actions that will radically improve municipal governance and
administration across all municipalities in the GTA.
In our view this report is the beginning point for discussions and negotiations on provincial /municipal arrangements
into the future. We look forward to working with the Province to establish a framework for implementation of the
seven point plan.
Yours truly,
Emil Kolb Eldred King
Chair, Region of Peel Chair, Region of York
Cc. Mayor Peter Robertson, Chair, GTA Mayors Sub-Committee for Reform
Premier Michael Harris
The Honorable Al Leach, Minister of Municipal Affairs and Housing
THE SEVEN POINT PLAN FOR GTA REFORM
LEADING BY EXAMPLE
WITH MEANINGFUL CHANGE
SEPTEMBER 1995
EXECUTIVE SUMMARY
This paper is intended to advance the discussion of the long-term development of the GTA. It
does so by focusing on what we believe are the real problems faced by the GTA and by
expanding upon our solutions to address those problems.
The GTA faces four key problems:
property tax inequities,
inappropriate services funded through property taxes,
clouded program accountability, and
cross-boundary service co-ordination,
We strongly believe that meaningful long-term change will come through accountability, not
through simply changing the structure of governance in the GTA, The services provided by
municipal government in the GTA through the present two-tier structure cost money. They will
still cost money. The majority opinion suggests that removing a level of government will not make
the costs of public services go away.
We propose seven fundamental changes to clarify and simplify the role of municipal government
in the GTA and to enhance the direct accountability of each level of government for the services
they provide and the burden of taxation which they generate.
Page i The Seven Point Plan for GTA Reform
Under this Seven Point Plan for GTA Reform, the GTA Regions and Municipalities would work
with the Province to implement an inter-related reform program consisting of:
1.
2.
3.
4.
5.
6.
7.
Page ii The Seven Point Plan for GTA Reform
We believe that implementation of the Seven Point Plan for GTA Reform will provide for greater
clarity and accountability to our taxpayers and will allow the long-term sustainable improvements
in service delivery and taxation levels which will flow from that accountability.
I
The Seven Point Plan provides immediate savings in administration of local government services,
without the high transition costs across the GTA caused by eliminating and/or creating
governments, It also establishes clear opportunities for very significant long-term savings.
I
Improving our accountability to the taxpayer will bring the most meaningful and sustainable change
to the governance of the GTA, We believe many political leaders within the GTA share this view
and we look forward to participating further in the improvement of local government in the
Greater Toronto /Area.
Page iii The Seven Point Plan for GTA Reform
INTRODucTION
This paper focuses on what we
believe are the real problems
faced by the GTA
Page 1
The Seven Point P/an for GTA Reform
WHAT ARE THE REAL PROBLEMS FACING THE GT A?
Four key problems face the GTA:
B property tax inequities
B inappropriate services funded
through property taxes
B clouded program
accountability
B cross-boundary service co-
ordination
We believe that reviewing the experience to date in the development of the GTA and proposing
viable solutions to the real problems facing this part of the Province can lead to the most effective
solutions to the delivery of services in the GTA and thus enhance the GTAs competitive position
in the global economy.
Page 2 The Seven Point Plan for GTA Reform
Is SI MPLY CHANGI NC THE STRUCTURE OF GOVERNANCE THE AN S WE R?
Simply removing a level of
government will not make the
costs of public services go away
Agreed upon development
forecasts are presently in place
for the GTA
Many of the other submissions to the Golden Task Force have focused on changing the structure
of local government in the GTA some implying innate benefits of creating larger governments,
others implying innate benefits of reducing the number of governments assuming that changes
to the structure are beneficial in and of themselves, We do not support this view,
If we want real and sustainable improvements in the provision of local government services in the
GTA, it is not enough to simply say Remove a level of government! and expect the problems
to be solved. The services provided by municipal government in the GTA cost money, They will
still cost money, And the presence of a two-tier local government structure does not necessarily
imply duplication, In the great majority of cases, the two governments are doing different things
(police service at the upper-tier; fire service at the lower-tier) and if functions are shared there are
clearly defined responsibilities (sewage trunk and treatment facilities at the upper-tier in York for
example; sewage collection systems at the lower-tier). Simply removing a level of government will
not make the costs of public services go away.
Others have questioned whether the present structure can effectively manage the growth of the
GTA in a way that makes efficient use of our land and creates healthy, vibrant and diverse
communities, while still strengthening the role and contribution of Metropolitan Toronto and the
central core,
Agreed upon development forecasts are presently in place for the GTA with individual population
and employment targets for each of the municipalities. These population and employment
forecasts are supported by the municipalities in the GTA.
Page .3 The Seven Point Plan for GTA Reform
As the 905 Regions
development matures, densities
will be comparable with most of
Metropolitan Torontos local
municipalities
The present two-tier structure
has accommodated growth of
more than 1 million people and
500,000 jobs over the past 20
years
These projections are also supported by the Province of Ontario, Achieving these objectives is
critical to the Province if the GTA is to continue to serve as the primary engine of growth for the
Ontario economy over the next 25 years,
These plans do recognize the local visions of the role each community should play in the GTA
from the predominantly rural nature of municipalities in the north portion of York Region, for
example, to the strengthening of the urban centres to the south.
The long-term development of the 905 Regions will not create vast, land intensive bedroom
communities surrounding Metropolitan Toronto, In fact, as the 905 Regions development matures
early in the next century, it will result in communities with densities of housing units and
employment opportunities which are comparable with most of Metropolitan Torontos local
municipalities.
These plans for the GTA do not, however, ignore Metropolitan Toronto, Metropolitan Torontos
role as the dominant population and employment base in the GTA is recognized and reinforced.
Over 400,000 new residents and 300,000 additional jobs are forecast within Metropolitan
Toronto by 2021, This will represent nearly one-fifth of the population growth and over one-fifth
of the employment growth in the five Regions comprising the GTA. The agreed-upon
development forecasts clearly recognize the key role for Metropolitan Toronto in the long-term
development and vitality of the GTA.
With an ultimate population of nearly seven million people in the GTA, the quality of life and
economic opportunities will depend on vibrant nodes of business and social interaction, This nodal
growth model is incorporated within the plans of the GTA municipalities, These plans are the
result of sound and careful planning, the weighing of priorities and the evaluation of each
communitys vision for the future which were undertaken by each of the municipalities in the GTA,
Page 4 The Seven Point Plan for GTA Reform
To restructure boundaries and
start another round of planning
the GTA, in the midst of a
fragile economic recovery,
would not appear to be in the
best interest of the GTA
Meaningfu/ long-term change
will come through
accountability, not through
simply changing the structure of
governance in the GTA
The present two-tier governance structure in the GTA has successfully accommodated growth
of more than I million people and 500,000 jobs since its inception two decades ago, Through
sound planning at the local municipality and Regional and Metropolitan levels and through effective
co-ordination among the Regions, Metropolitan Toronto and the Province, this governance
structure has established a comprehensive development forecast to manage the growth of the
GTA into the next century, to keep Metropolitan Toronto and its central core active and vibrant
and to build healthy, diverse communities in the 905 Regions.
These plans are not sitting on shelves waiting to be implemented, These are not simply
tomorrows plans. They are approved and already in process. Under the present structure and
within the present municipal boundaries and approved development areas, billions of dollars of
private and public sector investments have been and are being made to implement these
development objectives, Land has been acquired by the private sector for development now and
in the future. Services have been installed by the public sector to accommodate its development
into the future, including major roadways and sanitary sewerage and water trunk and treatment
facilities. To effectively freeze these plans, while we restructure governance bodies and political
boundaries in the vague promise of a better solution, to now start another round of planning the
GTA, in the midst of a fragile economic recovery, would not appear to be in the best interest of
either the private sector or the public sector and its taxpayers across the GTA.
Meaningful long-term change will come through accountability, not through simply changing the
structure of governance in the GTA, We must address the major opportunities to enhance local
such as
The Seven Point Plan for GTA Reform
These opportunities are reflected in the pressures on local government finances, In recent years,
property tax increases in the 905 Regions have been driven by these three forces (as depicted in
Figure I).
The opportunities to enhance local accountability must be addressed.
Figure 1
905 PROPERTY TAX PRESSURES
Share of Mill Rate Increase (1 991-1 995)
Education
Page 6 The Seven Point Plan for GTA Reform
OUR PROPOSAL: THE SEVEN POINT PLAN FOR GTA REFORM
We propose The Seven Point
P/an for GTA Reform
Page 7 The Seven Point Plan for GTA Reform
THE SEVEN POINT PLAN: ASSESSMENT/ PROPERTY TAX REFORM
The property taxation system in
the 905 Regions is not placing a
burden on Metropolitan
Toronto
Page 8
This latter
inequities
perception, that the property taxation system amongst the Regions creates the taxation
within Metropolitan Toronto, is simply not true.
The Seven Point P/an for GTA Reform
Single family residences pay a
lower share of the taxes in
Metropolitan Toronto relative
to their value than they do in
the 905 Regions.
Page 9
The imbalance between the classes of properties is greatest in Metropolitan Toronto and this is
the prime cause of the inequities. Single family residences pay a lower share of the taxes in
Metropolitan Toronto relative to their market value than they do in the 905 Regions. This is why
other classes of propertiies pay more relative to their market value than in the 905 Regions (see
Figure 2).
Figure 2
UNBALANCED ASSESSMENT SYSTEMS
The Seven Point Plan for GTA Reform
If the inequities within
Metropolitan Toronto are first
addressed, comparable Region-
wide reforms should be
implemented within each of the
905 Regions
The objective of assessment/property tax reform should be to ensure equitable treatment of
properties in all classes and in all lower-tier municipalities within a Region, This would mean
comparable taxation for upper-tier services on comparable houses in all area municipalities within
a Region, It would also mean comparable treatment of similar valued properties of any class within
each municipality, as shown in Figure 3.
Figure 3
PROPERTY TAX FAIRNESS
The Seven Point Plan for GTA Reform
Comprehensive phase-in
mechanisms are necessary when
implementing
reform
assessment
I
I
If the inequities within Metropolitan Toronto are first addressed through assessment and property
tax reform, comparable Region-wide reforms should be implemented within each of the 905
Regions to ensure equity for all taxpayers within the GTA.
It is recognized that property tax reform may create significant shifts among taxpayers. This is
understandable since the present assessment system is rooted in valuations which are, in many
cases, 50 years old with no updating over that period, Comprehensive phase-in mechanisms must
be implemented in conjunction with the reform, including the use of variable mill rates by property
class to ease the transition over time,
We also propose shifting the assessment function from the Province to the Regions and utilizing
improved technologies to update and maintain assessment records. Research into other potential
property assessment methods, such as unit value assessment, would be undertaken in the future.
Because a municipality is the direct beneficiary of assessment, they would have the incentive to
update and improve the efficiency of the local assessment function, This direct relationship and
incentive does not exist when the Province is in control of assessment.
Page 11 The Seven Point Plan for GTA Reform
THE S EVEN P OI NT P L A N: PROV I NCI AL/ MUNI CI PAL S ERVI CE FI NANCI NG S W A P
1
It is critical that we address
those areas where the
municipalities and the province
are sharing the responsibility
and funding for a service
Page 12
We believe that it is critical for the cost-effective delivery of public services in the GTA that we
address those areas where the municipalities and the Province are sharing the responsibility and/or
the funding for a service, We believe that each level of government needs clear program authority
and clear funding responsibilities if it is to be accountable to the taxpayer, Each level of government
should also be responsible for funding those services which are appropriate for its tax base.
On this basis, we propose the following exchange of funding responsibilities (Financing SWAP)
between the municipalities and the Province within the GTA,
Figure 4
FINANCING SWAP SPECIFICS
(Revenue Neutral Disentanglement)
Municipalities to finance and Province to finance soft services and
deliver hard services municipalities deliver the services
Roads Welfare
Transit Childcare (includes CAS)
Waste Management Public Health
Sewer & Water Homes for Aged
Storm Sewer Policing Grant (pay for say)
Eliminate all Unconditional Grants
Property Assessment
Education capital and physical Education operating costs as balancer
plant maintenance
The Financing SWAP = revenue neutral formula, no provincial or property tax increases.
The Seven Point Plan for GTA Reform
Hard services will be a
municipal funding responsibility
Soft services, such as health
and welfare, will become a
Provincial funding responsibility
The Financing SWAP must
balance in each Region for the
taxpayers of each Region as a
whole
We believe that the implementation of a service funding SWAP, similar to that outlined here, will
ensure that the funding source for each serice is most appropriate. Hard services will be a
municipal funding responsibility and will be financed through property taxes and direct user
charges. Soft services, such as health and welfare, will become a Provincial funding responsibility
and will be financed through progressive taxation sources, such as the income tax. This is
appropriate given the income redistribution aspects of most of these programs,
It should be noted that the Policing Grant, identified as a Provincial funding responsibility, is related
to the Provincial control and management of the police function through their majority
appointments to the special purpose Police Service Boards. This grant would not be required if
our proposal to eliminate or revise membership on these special purpose bodies is implemented,
It is our belief that the Financing SWAP must balance in each Region for the taxpayers of each
Region as a whole, In each of the 905 Regions, a higher percentage of Education operating costs
would be subsidized by the Province to achieve the necessary balancing of impacts before and
after the Financing SWAP. With the transfer of funding responsibilities balanced for the taxpayers
of each Region as a whole (including the lower-tier municipalities of that Region), adjustments
would be made to the prior years mill rates among upper-tier and lower-tier municipalities within
each Region so that future changes in budgets and levels of taxation in each municipality would be
presented on a comparable basis. An example of the redistribution of the property tax bill in a
typical 905 Region is shown in Figure 5,
Page 1.? The Seven Point Plan for GTA Reform
Figure 5
The Financing SWAP will
generate large administrative
savings
Education
64.0?o
-
FINANCING SWAP
1994 Tax Shift Trend
Before Swap After Swap & Education
two budgets every year (municipal & Provincial)
cumbersome approval processes at the Provincial level
subsidy claim processing at both levels
two audits (municipal & Provincial)
Page 14 The Seven Point Plan for GTA Reform
In addition to these immediate savings, long-term cost reductions are possible through the
significantly enhanced accountability achieved through the Financing SWAP, Program and service
decisions would be made by one level of government and it would be fully accountable for the
Long-term cost reductions are
financing and taxation for those services. No longer would spending decisions be influenced by the
possible through the
presence of 50% or 75% funding from another level of government. No longer would the
significantly enhanced
taxpayer be unclear as to whom to hold accountable for a patiicular program and its costs.
accountability achieved through
Decisions would be made by one organization which would be directly accountable for those
the Financing SWAP
decisions.
In most reorganizations of service responsibilities and in many proposals to restructure
government in the GTA, high transition costs are present as formal organizations have to be
established to deliver the program in a new manner. This is not the case with the proposed
service funding SWAP.
I
The municipalities already have administrations in place which deliver these hard services in the
I
GTA. No transitional costs are expected, And there is no need to create a new Provincial soft
There is no need to create a
service delivery network to administer its responsibilities for health and social services. We
new Provincial soft service
propose that the present Regional and municipal service delivery systems be used to deliver the
delivery network to administer
Provincial programs, under Provincial direction, on a fee for service basis. Should the Province
its responsibilities for health and
develop a more cost-effective delivery system in the future, it would be free to choose to
social services
implement it but the presence of the existing delivery system means that high transitional costs are
avoided in implementing the Financing SWAP,
Page 15 The Seven Point Plan for GTA Reform
This proposed SWAP of funding responsibilities requires a detailed review between the
municipalities and the Province of the actual costs of the various programs at the present time.
We recognize the need for detailed analysis and discussion to finalize an exchange of service
funding responsibilities, such as we have proposed. We would also encourage the Province to
work with the municipalities to review other services which could be delegated by the Province.
We believe this review should include all regulatory functions performed by the Province with
respect to municipal services and all aspects of Provincial involvement with respect to planning and
servicing approvals,
The Financing SWAP would eliminate shared funding responsibilities and would immediately
remove the need for Provincial staff to administer subsidy programs for these services. Savings to
the Provincial taxpayer are immediately available through the adoption of the proposed Financing
SWAP.
Page 16 The Seven Point Plan for GTA Reform
THE SEVEN POINT PL A N: PERMI SSI VE MUNI CI PAL LEGI SLATI VE AUTHORI TY
Page 17
We propose that the Province work in close consultation with municipalities to implement
permissive legislation for Ontario municipalities at the earliest possible time, The legislation should
provide municipalities latitude in utilizing different revenue sources as well as flexibility in policy
setting for municipal programs,
We also propose that the Province review ministry functions and amend all necessary legislation
with a view to eliminating costly Provincial checking of municipal operations and right-size
Provincial operations to encompass only Provincial programs,
I
The Seven Point Plan for GTA Reform
THE SEVEN POINT PLAN: REFORM OF SPECIAL PURPOSE BODI ES
A number of special purpose
bodies should be reviewed and
restructured or eliminated
significant savings are possible
through combining support
functions
Page 18
In addition, in certain cases, the structure
clarify and enhance its accountability.
of the Special Purpose Body itself should be changed to
Figure 6
Regional Municipalities Local Municipalities
B District Health Councils
B Childrens Aid Society B Library Boards
B Ontario Housing Corporation B Hydro Commissions
(Housing Authorities)
B Police Service Boards
The Seven Point Plan for GTA Reform
THE SEVEN POI NT PL A N: SI GNI FI CANT REFORM I N EDUCAT I ON
We propose a thorough review
of the possibility of eliminating
Boards of Education and
transferring the School Trustee
and non-classroom education
functions to Regions
The responsibility for all aspects
of building and maintaining
school facilities and for school
busing would transfer to the
905 Regions
Page 19
THE S EVEN P OI NT P L A N: MUNI CI P AL L Y- DRI VEN R EVI EW W I THI N E ACH R EGI ON OF
SERVI CES, BOUNDARI ES AND REPRESENT AT I ON
Municipally-defined solutions
continue to offer the best
opportunity for viable
service improvements
long-term
Page 20 The Seven Point Plan for GTA Reform
Page 21
Commitments from the Province are necessary if this process is to succeed, The Province would
set the time frames for these reviews so that recommendations could be implemented in time for
the 1997 municipal elections. In addition, the Province must commit to implement municipally-
achieved solutions when they are recommended. Finally, the Province must commit to delaying
any externally imposed changes and work with municipalities to find solutions that are acceptable
to the affected municipalities,
The Seven Point Plan for GTA Reform
THE S EVEN P OI NT P L A N: GTA CO-ORDI NATI NG FO R U M
There are many examples of
successful co-ordination across
municipal boundaries
We propose the creation of a
GTA Co-ordinating Forum to
address cross-boundary issues
on a formal and regular basis
Page 22
There have been many examples of successful co-ordination and co-operation across municipal
boundaries over the past 25 years, with some involving considerable Provincial assistance or
direction. Sewer and water servicing systems have been effectively developed across boundaries
in Peel, York/Durham and York/Metro. Improvements have been made to inter-municipal transit
service, conservation authorities have succeeded with shared financing between numerous
municipalities, and an overall development plan for the GTA has been developed including
population and employment targets for each municipality to name a few notable inter-
municipal arrangements,
The present system has worked effectively in developing the GTA to date, but significant issues
remain, some requiring Provincial involvement and direction, to achieve a co-ordinated approach
to the completion of the GTAs development. Formal co-ordination is required on issues which
may extend beyond Regional boundaries, such as planning, economic development, sewer,
water, public transit and waste management,
We propose the creation of a GTA Co-ordinating Forum to address cross-boundary planning and
co-ordination issues on a formal and regular basis. This GTA Forum would be a consultative, non-
executive body, with no powers of taxation, It would be supported by a small secretariat within
the Cabinet office,
The Seven Point Plan for GTA Reform
The Provincial involvement and
commitment to this co-
ordinated approach is
fundamental
Page 2.?
The Provincial involvement and commitment to this co-ordinated approach is fundamental as
resolution to many of the cross-boundary issues (such as sewer and water capacity) is critical to
the development of the entire GTA and, therefore, the Provinces overall growth objectives. We
propose that the Province create a GTA Cabinet Committee to deal with GTA issues and the
GTA Forum in a co-ordinated manner, This would be one step in reversing the current lack of
co-ordination among Provincial ministries when dealing with issues of importance to municipalities.
An acceptable dispute resolution mechanism and the Provinces role in such a mechanism would
be incorporated to assist in the co-ordination if consensus could
consultation,
The present two-tier structure local government structure in the GTA
by limiting the number of issues which cross boundaries and in part
not be reached through
has served us well, in part
by keeping the delivery of
service at a manageable scale, Through the proposed formal co-ordination structure involving the
municipalities and the Province, it can continue to serve us well into the future by effectively
addressing the issues of importance to the overall development of the GTA.
The Seven Point Plan for GTA Reform
CONCLUSI ONS: THE BENEFITS OF THE SEVEN POINT PL A N
Long-term sustainable
improvements in service
delivery and taxation levels will
flow from greater clarity and
accountability
Immediate financial savings can
be achieved without high
transition costs across the GTA
Page 24
These recommendations represent a very significant streamlining of government in the GTA. They
are driven by the need for greater clarity and accountability for the taxpayers and by the
opportunities for long-term sustainable improvements in service delivery and taxation levels which
will flow from that accountability.
Our Seven Point Plan for GTA Reform will also bring immediate financial savings in administration
for Provincial and municipal taxpayers. And these benefits will be achieved without the high
transition costs across the GTA caused by eliminating and/or creating governments, without the
increased costs across the GTA caused by averaging up of service levels under one large
government, and without the increased costs across the GTA caused by splitting services (creating
10 to 15 police chiefs, for example) if five Regions did not exist.
This paper set out to propose solutions to the real problems facing the GTA as we move into the
next century, It is based on the fundamental belief that long-term sustainable change will flow from
improved accountabilit
y
of government to its residents and ratepayers.
We believe that this paper does concretely address the real problems facing the GTA. It proposes
assessment reform within each Region and a SWAP in service funding responsibilities which will
improve and clarify Provincial and Municipal roles in the GTA and enhance the accountability of
government,
It responds to cost concerns, generating significant savings to the property tax payer and to the
Province of Ontario;
the service funding SWAP will eliminate the need for costly duplication of cost-shared grant
administration, particularly at the Province,
The Seven Point P/an for GTA Reform
Improving our accountability to
the taxpayer will bring the most
meaningful and sustainable
change to the governance of
the GTA
The proposed solutions will
enhance the future economic
vitality and quality of life across
the entire GTA
review and restructure or elimination of Special Purpose Bodies will generate savings in
administrative overheads,
education administration and Board costs would be significantly reduced,
the GTA Forum will facilitate partnerships and collaboration, generating opportunities for
further savings,
greater municipal control over municipal service levels would result from permissive municipal
legislative authority and reduced Provincial regulation and policy interference, generating
additional savings, including significant savings at the Provincial level through the right-sizing of
Provincial ministries, and
municipally-driven reviews of services, representation and local government structure will
provide further opportunities for cost reduction.
We believe this paper demonstrates clear leadership and a willingness and ability to continuously
improve municipal government in the GTA, By addressing the challenges facing the GTA and by
providing for local choice and diversity, it proposes solutions which will enhance the future
economic vitality and quaiity of iife across the entire GTA,
We believe many political leaders within the GTA already share our view that improving and
clarifying our accountability to the taxpayer will bring the most meaningful and sustainable change
to the governance of the GTA. We look forward to participating further in the improvement of
local government in the GTA.
Page 25
The Seven Point Plan for GTA Reform
B
Improving the
encouraging the
economic
important
competitiveness of the GTA as a whole while
role of the core or inner area.
B
Improving urban governance
of municipal services.
B
Improving the efficiency of
management.
airmed at improving the efficiency and effectiveness
the function of the GTA through effective urban
B
Recognizing the importance of greenlands systems and rural areas to the health
of the GTA.
B
We believe none of the above can be accomplished without a passionately held vision of
what the GTA should be like in 30-50 years.
1
B
Our vision includes a GTA with:
B
a very strong and mixed use central core;
B
large mixed use nodes based on historic urban cores at selected points on the
existing or proposed transit system;
B
a system of identifiable urban areas ranging from hamlets and villages to Metro
Toronto;
B
liveable communities generally at higher densities than typical suburban densities,
with a good range of facilities to which one can walk or bike;
B
well defined areas protected from development for their environmental or
resource values including headwaters and valleys and corridors;
B
improving public access and increased recreational opportunities with publicly
owned green areas including the Lake Ontario Waterfront to provide public
access and recreation;
B
a transportation system which shifts a proportion of trips from the car to transit,
walking and cycling.
B
This vision differs from the trend based on the experience in the last 15 years in the
following ways:
B
greater proportion of development in the central core and the nodes;
B
higher density communities through both increasing numbers and proportion of
redevelopment, infilling, intensification of already developed communities and
application of reduced development standards in new development;
B
increased proportion of medium and higher density housing;
B
increased opportunities for development on brownfield sites;
B
increased provision of alternatives to car travel (telecommuting, walk, bike,
improved transit);
B
greater emphasis on greenlands as an integral part of planning for the GTA.
Summary Position of Regional Planning Commissioners of Ontario
2 August, 1995
Our summary position on the 4 areas identified for improvement based on the vision is as
follows:
1.
B
Regions have proved themselves to be excellent financial managers. GTA
Regions have AAA credit ratings, better than the Federal and Provincial
Governments. This is a real strength which should be built upon, not dismantled.
B
Part of this strength comes from the concentration in one level of government of
the ability to plan for growth, plan and design the necessary infrastructure, raise
the money and build the infrastructure at the right time. This should not be lost.
Weaknesses in the current situation include:
The urgent need for GTA wide property tax reform. The current system of
Provincial funding formulae and transfer payments precludes a municipal solution.
Furthermore, given the current inequities and therefore the enormous change
required, the 3 year term of municipal councillors makes it unlikely municipalities
will tackle the problem. We believe the Province must take a leadership role.
The tax system must achieve a goal of GTA wide equity in providing a high level
of services throughout and a fair distribution of expenses and revenues.
The heavy reliance on provincial transfer payments and subsidies for the delivery
of some services e.g. social services, roads and transit.
The impact of current ways of funding infrastructure (subsidy, property tax,
contributions, user pay and development charges) on development patterns and
density. We suspect the current situation favours greenfield development and
indicated we would prepare some additional work for you on this topic. This
clearly impacts on our ability to implement the vision.
As a principle, we believe property tax reform and changes to development
charges should be neutral from point of view of implementing the vision i.e. level
playing field.
Summary Position of Regional Planning Commissioners of Ontario
3 August, 1995
2. Improving Economic Competitiveness
3.
B
We are told inter-municipal competition is hindering economic development of
the GTA - clearly this should be a responsibility of Regions for provision of
infrastructure investments to enable economic development to take place or a
GTA wide body for marketing the area as a functional entity.
B
Property tax reform will make a big contribution.
B
Continuing improvements in the development approval process are essential. We
believe the roles and responsibilities of upper and lower tiers should be more
clearly distinguished with a greater emphasis on neighbourhood planning and
urban design at the local level. Furthermore, having the same development
approval procedure Region wide would improve competitiveness i.e. do not treat
Metro Toronto differently from other Regions.
Improving Urban Governance
To provide a context, we believe changes to the current system of municipal governance
should:
B
build on the strengths of the existing system;
B
look to the future i.e. implementing a vision for the 21st Century, not back to the
19th Century. The Task Force should recognize the importance of the City/
Region as economic unit with growth going to 6 1/2 million in 30 years and
beyond as the century unfolds;
B
have a clearly articulated role for the Province;
B
provide a way for GTA wide issues to be discussed, have alternatives considered
and decisions made and implemented. The failure of previous GTA wide
planning exercises e.g. Design for Development, COLUC, has been the inability
to get consensus and implement the plans. In our view, this can best be
accomplished with either a GTA wide municipal government or a Provincial
Ministry or a special purpose body which is responsible and accountable with an
ability to act and make decisions;
B
reduce the number of lower tier municipalities;
B
more clearly articulate and differentiate between the roles and responsibilities of
upper and lower tier municipalities to reduce overlap and duplication.
Accordingly, based on your suggestion there should not be another level of municipal
government, we propose the following models for your consideration. We believe there
is no one right answer, all have strengths and weaknesses, but all would be an
improvement over the current situation.
MODEL 1
B
Establish an upper tier government for the GTA.
B
Convert the existing regions to lower tier municipalities.
B
Abolish the existing lower tiers.
MODEL 2
B
Establish an upper tier government for the GTA.
B
Abolish the existing regions.
B
Establish a smaller number of lower tier municipalities than today based on,
among other considerations, the nodes in the vision.
MODEL 3
B
Establish a GTA Ministry at the Province to co-ordinate and make decisions.
B
Strengthen existing regions.
B
Establish a smaller number of lower tier municipalities than today based on,
among other considerations, the Nodes in the vision.
Summary Position of Regional Planning Commissioners of Ontario
5
August, 1995
MODEL 4
B
Establish a GTA wide special purpose body to co-ordinate and make decisions.
B
Strengthen existing regions.
B
Establish a smaller number of lower tier municipalities than today based on,
among other considerations, the nodes in the vision.
In Models 1 & 2, the GTA wide region would have the power of the existing regions
plus the additional responsibilities discussed in Part 4 (below). As such it may be
perceived as being too large and distant to administer and ensure effective service
delivery, - however, it would be elected and accountable.
Model 3 provides GTA wide co-ordination and decision making through a GTA
provincial ministry. In this model, we would see the GTA Ministry take over the
responsibilities of all other Ministries in the GTA so there would be no overlap. It
provides a mechanism for a strong Provincial role. However, a concern would be even
one Ministry voice at a Cabinet of 20 may not be heard sufficiently.
Model 4 on the other hand would result in a much weaker Provincial role. The GTA
wide co-ordinating body would be made up of senior administrators from the Regions
and the Province. It would have strong planning and policy development function, along
with financing and infrastructure. It would recommend plans, priorities and financing.
The role of the administrators would be to ensure a political commitment to the plans,
priorities and financing at their respective tables at the Regions and the Provincial
Cabinet.
In this way, GTA wide planning would be achieved but the Regions (with the help of the
Province) would be responsible for delivering the infrastructure and the implementing of
plans.
It is our view that while Models 1 & 2 may result in a more accountable system, the
difficulties of getting agreement may prevent any action. Our view would be that Model
4 provides the best way forward at this time.
Models 3 & 4 would see the powers of existing regions strengthened and the arrangement
at the lower tier changed. These are discussed in 4 below.
Summary Position of Regional Planning Commissioners of Ontario
6 August, 1995
4. Improving the Functioning of the GTA through effective urban management
Effective urban management requires:
B
a clear vision of where things should be headed;
B
clear division of responsibilities;
B
accountable politicians;
B
financial resources to implement the responsibilities,
In the GTA we believe there is a large measure of consensus around the vision we have
described. We urge the Task Force to base its conclusion on this vision.
When looking at roles and responsibilities we see the need to strengthen the upper tier
i.e. the GTA wide Region in Models 1 and 2, the Regions as currently constituted in
Models 3 and 4. The Task Force should add the following to the responsibilities of the
upper tier; 1) transit, 2) economic development, 3) responsibility for ecosystem
protection and open space systems including the Lake Ontario Waterfront. In addition,
the Task Force would explicitly recognize the importance of Strategic Planning,
infrastructure planning and planning for growth management (distribution of population,
jobs and development) as components of Regional Planning.
We see a need to strengthen the lower tiers responsibilities in the area of neighbourhood
planning and urban design, with the objective of having a much clearer separation in
planning responsibilities between upper and lower tiers.
For politicians to be accountable, they should be elected directly to the office, not
indirectly through another position. This leads us to believe politicians at each level
should be separate and distinct i.e. separately elected.
The Task Force should fairly assess the financial resources available to implement the
responsibilities at each level of municipal government. We are not experts in this field,
but suggest the following for your consideration:
B
reform of the property tax system to get rid of its regressive nature, allow costs
to be related to services consumed, introduce greater equity and moderate over
the long term the cyclical effects of growth and development, economic expansion
and contraction throughout the GTA.
B
review existing costs and benefits relating to the provision of infrastructure to
ensure there are no distortions (unfair subsidies) which might make
implementation of the vision more difficult;
B
consider whether mechanisms should be put in place to transfer investments from
one area in the GTA to another to ensure implementation of the vision and what
role the Province should have in that;
B
consider more opportunities for a user pay based system so people can make
choices based on the costs of providing the service or facility.
The Task Force asked us for other views on boundaries of the constituent municipalities
within the GTA. We believe:
B
The boundary of the GTA as a whole (Metro and the 4 Regions) is
administratively convenient. GTAs influence probably extends beyond this
boundary but it would be imprudent to extend the boundaries.
B
Boundaries of existing Regions although based on the old county system, do make
some administrative sense - i.e. they incorporate the main urban areas and a
substantial rural area around each. However, consideration might be given to
consolidating Peel and Halton who are west of Metro Region.
B
We see the greatest opportunity for change at the lower tier, where the current
30 + municipalities could be consolidated into 10-15 municipalities having a
larger population and administrative capability. While we have not looked at this
in detail, we suggest the following major nodes would provide the nucleus for the
consolidation. Metro Toronto, North York City Centre, Scarborough Centre,
Pickering/Ajax, Whitby/Oshawa/Courtice, Markham, Richmond Hill,
Mississauga, Brampton, Burlington/Oakville.
Di r ec t al l c or r espondanc e t o
t he of f i c e of t he Chai r man
N. Tunnac l i f f e, M.C.I .P.
Chai r man
111 Li sgar St r eet
Ot t aw a, Ont ar i o
K2P 2L7
Te l : 6 1 3 -5 6 0 -2 0 5 3
Fax : 613-560-6006
26 September 1995
Dr. Anne Golden
Greater Toronto Area Task Force
393 University Avenue
20th Floor
Toronto, Ontario
M5G lE6
Dear Dr. Golden:
Please find herewith a copy of a Second Summary Position of Regional Planning
Commissioners of Ontario to the Greater Toronto Area Task Force.
Following our meeting on 25 August, we submitted a Summary Position paper on 29
August 1995. On 8 September 1995, we met to further consider our ideas and the enclosed
paper is a result. I hope you find it useful.
Yours sincerely
N. Tunnacliffe, MCIP, RPP
Chairman Regional Planning Commissioners
Encl.
Dur ham Mr . A. Geor gi ef f Musk ok a Mr . J . Gr een Peel
Hal di mand-Nor f ol k Mr . L. Kennal ey
Mr . P. Al I en
Ni agar a Mr . A. Veal e Sudbur y Mr . B. Laut enbac h
Hal t on Mr . R. Mohammed Ot t aw a- Car l et on Mr . N. Tunnac l i f f e Wat er l oo Me. S. Thor sen
Hami l t on-Want w or t h Mr . J . Thoms Ox f or d Mr . K. Whi t ef or d Yor k Mr . M. DeAngel i s (ac t i ng)
Met r opol i t an Tor ont o Mr . J . Gar t ner
SECOND SUMMARY POSITION OF REGIONAL PLANNING
COMMISSIONERS OF ONTARIO TO THE GREATER TORONTO
AREA TASK FORCE
Following a meeting with Dr. Anne Golden and her staff on 25 August, 1995,
Regional Planning Commissioners of Ontario (RPCs) submitted a summary position
paper on 29 August, 1995. On 8 September, 1995, RPCS met to further consider their
ideas at which time it was decided to submit a second summary position paper to
elaborate on aspects related to implementation. In our first paper we described 4
models for reforming municipal governance in the GTA. These were:
MODEL 1
. Establish an upper tier government for the GTA.
B Convert the existing regions to lower tier municipalities.
. Abolish the existing lower tiers.
MODEL 2
B Establish an upper tier government for the GTA.
. Abolish the existing regions.
. Establish a smaller number of lower tier municipalities than today based on,
among other considerations, the nodes in the vision.
MODEL 3
. Establish a GTA Ministry at the Province to co-ordinate and make decisions.
. Establish a smaller number of lower tier municipalities than today based on,
among other considerations, the nodes in the vision.
MODEL 4
. Establish a GTA wide special purpose body to co-ordinate and make decisions.
B Strengthen existing regions.
. Establish a smaller number of lower tier municipalities than today based on,
among other considerations, the nodes in the vision.
We suggested that while Models 1 and 2 may result in a more accountable system,
the difficulty of getting agreement to either of the models may prevent any action. We
concluded by saying Model 4 provides the best way forward at this time. In this paper,
we discuss the major issues as we see them relating to each of the models. We have
not discussed Model 3 in further detail as we do not believe a Provincial Ministry for
the GTA can be sufficiently responsive to the needs of the GTA. This has already been
tried and found wanting.
The major issue relating to Models 1 and 2 in our view would be what responsibilities
would be given to the GTA Region and what would be given to the lower tier
municipalities (however constituted).
Based on the fact the GTA is an economic entity, we would start with economic
development. In our view, successfull economic development requires vision and a
good knowledge of where the GTA is headed. This leads us to recommend regional
planning including a strong research and information component be at the GTA
Region. By Regional Planning we mean forward looking planning to establish urban
boundaries, urban form and structure, the distribution of population, jobs and major
activity centres and community facilities, resource protection, open space and
greenspace and the rural economy including agricultural production and resource
extraction. In addition it would deal with the major components of infrastructure and
its affordability and financing required to implement the plan. Subsequently in this
paper we refer to this as the GTA Growth Strategy.
Implementation of a GTA Growth Strategy and the furtherance of GTAs economic
development requires two key responsibilities, infrastructure and financing. In
infrastructure, we include not only the traditional hard services or roads, transit,
water and sewer, but also waste, health and safety, and of the educational facilities
which we see as being part of the responsibilities of a GTA Regions.
Finally, given the extent of the GTA Region and the increasing dependence and inter-
relationship between urban and rural components of the GTA, we recommend the
special projects e.g. Conservation Authorities, Hydro Commissions within the GTA be
abolished and their responsibilities assumed by the GTA region. This may require
some small changes to the boundaries of the GTA so they more closely reflect
watersheds.
Other municipal functions could be given to the lower tier however constituted. In our
Model 1, the existing lower tier municipalities would be abolished and existing Regions
would become the lower tier in terms of responsibility. Some have argued that this
will result in a lower tier far removed from the people. We would like to draw the
distinction between the size and extent of the municipality and the way in which it
might deliver its services. There would be nothing to prevent a lower tier for example,
in the area of planning from delivering the building permit, site plan approval and
zoning functions from well located local offices, so improving service over what might
be provided now.
Model 2, in addition to creating a GTA type region, would reconfigure the lower tier
and the existing regions into 10-12 unitary authorities ie single tier municipalities of
approximately 500,000 each. They would be based primarily on the nodes chosen as
part of the GTA nodal concept.
The major issue relating to Model 4 in our view is the form of co-ordinating bo
which would be established and how to give it teeth. In this model, the existing
Regions would retain their existing powers and be strengthened with the additio
responsibilities of transit, economic development, ecosystem protection and ope
systems.
The GTA coordinating body needs to have defined responsibilities and powers
would be made up of politicians who are accountable. We suggest the 4 or 5 R
Chairs (4 if Peel and Halton are combined).
The responsibility of this Authority (Greater Toronto Area Planning Authority)
be to prepare the GTA Growth Strategy to be implemented through the Region
way we see this happening would be for the GTA to recommend the GTA Gro
Strategy to Provincial Cabinet which would adopt it as a Policy Statement unde
Section 3 of the Planning Act. Regional Official Plans would then have to be am
to be consistent with the GTA Growth Strategy. Having the Cabinet adopt the
Strategy (and subsequent amendments) would create a Provincial buy into it an
financing of the very large infrastructure program required as the GTA growth
41/2 to 61/2 million people and more.
The GTA plan will require staff and funding to do its work. We suggest a stee
group made up of GTA Regional Planning Commissioners and senior provinci
with staff seconded from the regions and province to do the actual work. We s
funding be provided equally by the Regions and the Province with the Regions
apportioned by assessment.
Naturally one expects contentious issues surrounding the development of a GT
strategy. One way of resolving them would be to allow the Ontario Municipal
hold a hearing but to submit its report to Cabinet for final disposition.
What do we want from a municipal governance system
When evaluating our models and any others which may be under consideration
you to evaluate them from the point of view of what improvements the public w
We suggest some of the criteria areas follows:
B Accountable - best achieved we believe by directly but separately elected po
to the regional and local councils.
municipal government that most closely covers the influence area of the
responsibility e.g. economic, housing and retail markets are all GTA or Region-
wide in scope.
Affordable - attained by achieving economies of scale, by clearly assigning
responsibilities to the level of government best able to cover the service area of the
responsibility in question so that duplication is eliminated.
Understandable - best achieved by assigning responsibilities to one level of
government so the public knows whereto go for specific service delivery.
Consistent - i.e. having one jurisdiction dealing with responsibilities which cover
similar areas.
Simple - best achieved by reducing the number of municipalities and particularly
special purpose bodies e.g. Hydro Commissions, Library Boards.
e opt on of the status quo i
Some might suggest that we have muddled along for so many years, why not just keep
muddling. To that we say:
B The GTA has been fortunate in the last 30 years. In a world of global
competitiveness the status quo is not an option.
. The status quo is in effect a step backwards as other urban regions around the world
modernize their municipal governments to make them more efficient and more
responsive.
conclusion
This conclusion is based on this submission and our earlier submission.
The GTA needs a municipal government system which looks forward to the twenty-first
century, not back to the nineteenth century. Such a system should be based on the
concept of the city-region as the driving generator of economic development and wealth
in our increasingly globalized society.
At the GTA level, the ideal would be, in theory, a GTA level regional government
with defined responsibilities such as economic development, regional planning,
infrastructure (defined very broadly), financing, regional open space systems,
conservation and the rural economy including agricultural production and resource
extraction.. We realize this maybe too much for some to agree with. Our more
practical recommendation would be the establishment of a Greater Toronto Planning
Authority to prepare a Growth Strategy.
Regardless of whether a regional level of government or co-ordinating body is the
chosen vehicle for delivering GTA wide services directly or indirectly through a legally
enforceable Growth Strategy, we fundamentally believe the number of municipal
governments in the GTA needs to be substantially reduced. Having a limited number
of large municipalities (in excess of 500,000 people) should be the goal in order that
delivery of services will be efficient, effective and delivered with economies of scale.
Outside Metro Toronto, given the size of existing regions, both geographic and from a
population standpoint, suggests they should be the basis of these municipalities although
their boundaries may need adjustment to correspond with sub-watershed boundaries.
Accordingly, we recommend:
.
The GTA governance be based on either:
1.
2.
A GTA wide Region with responsibilities defined in legislation to include
economic development, regional planning, infrastructure, financing, regional
open space systems, conservation and the rural economy including agricultural
production and resource extraction and a limited number of lower tier
municipalities based on existing regions (with potentially minor boundary
changes) to deliver other services, or;
The establishment of a Greater Toronto Area Planning Authority made up of
the Chairs of the Regions comprising the Greater Toronto Area. The authority
would prepare a Growth Strategy (defined in the text) and have it approved by
Cabinet. It would then become enforceable through the official plans of the
Regions.
26 September, 1995.
July 4, 1995
Dr. A. Golden Chair
Greater Toronto Area Task Force
393 University Avenue
20th Floor - Suite 2001
Toronto, ON M5G 1E6
Dear Dr. Golden:
The Town of Richmond Hill
I J
R i c h m
i i i ! =
RECEIVED 25Emt B.aver CkxkRoad
Further to our conversation of June 27th, regarding municipal government reform and the GTA
the following are my comments as requested.
Municipal government is the bedrock upon which Canadian democracy rests. By being the
closest to the people and representing a geographically concentrated are~ municipal councils are
able quickly to discern needs and respond to them without delay. With responsiveness has
coming growing demands for services, ranging from policing through housing to recreation and,
in some provinces, social services. In addition, because of the scaling down of federal and
provincial programs, even more responsibilities have been directly and indirectly off loaded onto
municipal governments.
In part because of poor communications arising from the outdated status of municipal
governments, federal policies and programs are often out of step with local realities and needs,
resulting in duplication waste and negative results for municipal government and taxpayers.
Municipal governments are challenged by the widening gap between the recognition of their role
and political and economic realities. Canadians rightly expect all orders of government to
cooperate in the delivery of public services.
The debate over the need for recognition of the status of municipal governments pre-dates
Confederation. Lord Durham in his 1839 Report, argued in favour of guaranteeing municipal
institutions in the Canadian Constitution. Lord Durhams recommendations were never embodied
in Canadas constitutional law. The Constitution Act, 1867, established the parameters of current
federal and provincial relationships with municipal governments. Section 92 of the Act set out
exclusive powers of provincial legislatures in 16 areas, with section 92(8) giving the legislature of
each province exclusive responsibility for making laws relating to the provinces municipal
institutions.
.../2
Page 2 GTA Task Force
For years municipal governments have criticized the institutional restrictions on their decision
making powers and ability to raise revenue. They have worked to simplify the complex
intergovernmental matrix of shared responsibilities and resources in favour of transparency and
accountability. Throughout the country, municipal governments have tried to find alternatives to
the current system which would provide greater autonomy. In a number of provinces, municipal
governments have engaged in exercises aimed at disentangling municipal responsibilities and
revenue sources from the provinces.
Recognition of municipal governments has a distinct order of government in the constitution
would be the ideal constitutional change. Failing such a bold and dramatic step - the development
of a Charter of Rights (a new Municipal Act) clearly stating what is not within the jurisdiction of
municipal governments and thus everything else would give them the freedom to respond to
issues in their own communities.
While Canada is one of the most urbanized nations on Earth, the constitutional gulf which
separates our municipal and federal orders of government is wider than that of any other
developed nation. The federal presence is felt in municipalities through a multitude of areas
ranging from tax policy to economic development to criminal law. The federal government must
acknowledge the effect of its policies on municipal governments.
The provinces and territories have frequently proven themselves unable or unwilling to promote
the interests of municipal governments in intergovernmental processes. A recent example is their
unwillingness to allow municipal government representatives to join as full and equal partners on
the management committees overseeing the national municipal infrastructure program. This
occurred despite the fact that municipal governments are paying one third of the costs of the $6
billion program. Another example of poor intergovernmental cooperation is the federal and
provincial practice of excluding municipal governments when discussing fiscal policies in the
interest of the overall Canadian economic performance. Despite the compelling fact that the
budgets of several of our largest cities are greater than the budgets of several provinces, not a
word is mentioned of the first order of government.
Canadians want governments to be responsive and efficient and they want to control their
institutions. Canadians expect all orders of government to cooperate in the delivery of public
services. Unless the role of municipalities in the Canadian political system is recognized, the
quality of our democracy, the efficiency of our public services and the equitable treatment of
taxpayers are all compromised.
In terms of the Greater Toronto Area (GTA) and the need to review the governance of the area.
The Association of Municipalities of Ontario (AMO), released a paper entitled Better
Government - Lower Cost the New Municipal Mandate.
.../3
Page 3 GTA Task Force
This document which was released in March 1995, outlines the issues surrounding municipal
government in Ontario and a framework of recommendations as the basis of reform of provincial-
municipal relationship. The recommendations were the result of numerous efforts by task forces
and committees and from the direct efforts of municipalities AMO represents.
This paper is something that is worth reviewing and considering in terms of governmental reform
for the GTA. A critical need is the development of a new Municipal Act (Charter of Rights)
which would free municipal governments from the restrictive yoke of the present Act. Alberta
brought in a new Charter which is a good example of what is needed to provide municipal
government with the ability to respond to issues as we approach the next century.
Replace the Municipal Act with a new simplified Act which would allow municipal governments
the ability to take action on issues and to carry out the purposes of municipal government, unless
specifically prohibited by the Act.
The fundamental issues facing the people living in the GTA is:
. what type of municipal government institutions do we need to service the community
. how should these municipal units be financed
. what type of structures should be put in place to coordinate major servicing issues in the
GTA
. who should provide the services
The Greater Toronto Area is an economic region. The Province has recognized that community
based-economic development is the preferred direction in building the local economy.
In the old industrial economy based on the older technology symbolized by production line,
economies of scale through amalgamation or regionalization made some sense. However, it is
interesting to note that, with new information based technology, the private sector is now finding
it is more effcient and cost effective to decentralize large corporations into smaller units, usually
around common processes or products.
Government has been slow to respond to the new economy. There were still people in the
previous Ontario government who felt that streaming and making local governments more cost
effective was to concentrate on Regional administrations. This is not consistent with the new
economy based on information technology.
In the GTA today, the urban municipalities are sufficiently large and mature that they do not
require Regional planning which was important at an earlier stage. Regional planning can be
effective through a cooperative method as has been illustrated through the Crombie Regeneration
Trust in its creation of the Waterfront Trail.
.../4
Page 4
GTA Task Force
The concept of regional governments established in some areas of the province in the 1970s
needs to be reassessed in light of the GTA discussions. Do regional governments work? Are they
relevant in the context of the major economic and social changes of the 1990s?
My conclusion is no. There is a need to coordinate areas such as transportation water and
sewage.
However, we do not need regional governments, a regional bureaucracy, a regional political
structure in order to achieve coordination of services.
Regional governments have not acquired a sense of identity with the public. Most people do
not know what regional governments are charged to do and do not relate to this upper tier
authority. They have become the Senate of Municipal Government in their lack of a defined
role. In the Region of York, Regional Councillors still tend after 30 plus years to act in a
procedural manner - tribalism - not thinking in regional terms.
The public cannot afford both regional and local municipal government. The cost of government
today requires that an elimination of one of these authorities is required. Regional government
can be replaced with a coordinating authority for the GTA - not a new level or bureaucracy.
The local or city level of government which is the closest to the people and represents the local
community should be strengthened.
Consider the following areas for change:
Regional Official Plan: Discontinue so that there is only one Official Plan - the Local Government
Official Plan. In areas where there are no regional governments presently such as London they
have only their Official Plan. The Office of the GTA could act as a coordinating and facilitating
agent with area municipal governments to develop broad regional planning principles for the
GTA, particularly in terms of infrastructure and transportation.
Economic Development: Discontinue Regional Economic Departments and recognized that
economic development can best be achieved by the Local Municipal Government. A GTA
Economic Development Agency could be established to help develop regional economic
initiatives among municipal governments in the GTA.
Roads: Responsibilities for roads should be at the local level with a formula arrived at to
distribute Regional tax dollars/Provincial tax dollars to the municipalities to assist with roads
which have some regional function.
.../5
Page 5 GTA Task Force
The development of a GTA Office for Coordination does not mean the development of a major
new bureaucracy nor does it mean the development of a new layer of government. The failure of
regional government lies in the fact that it is only now seeking to takeover areas such as
transportation economic development, and yet for years it failed to provide the type of leadership
necessary to establish itself as a leader of municipal government and a true representative of the
public.
People want less government. People want more effective government. People want less
participants in terms of dealing with issues. The planning process is an excellent example of how
the public becomes quickly illustrated when they attend a meeting an it is not the local council that
calls the shots but other players such as the various provincial ministries (Housing, Municipal
Affairs, Natural Resources and Environment) or the Metro Toronto Region Conservation
Authority.
The Ontario Municipal Board (OMB) should be eliminated. Its role and purpose are no longer
relevant today. People want to know that local government has the power and the responsibility
for making planning decisions in their own communities. The unallocated OMB is increasingly
making planning decisions that affect the quality of life in the community. This is unacceptable.
If the OMB is not eliminated, then the powers of the Board should be restricted to appeals dealing
with matters of provincial interest.
A major issue for people living in the GTA is the issue of assessment reform. The current
assessment situation in the GTA reflects Market Value Assessment, some assessment based on
1967 figures etc. The Ontario Government in conjunction with AMO drew up the Fair Tax
Commission Report which recommended significant changes to assessment. Removing the cost
of education from the property tax was a major recommendation. Property taxes are a very
regressive form of taxation unlike income tax which at least in theory is based on the ability to
pay.
The removal of a significant portion of the education bill from property taxes would be a step in
the right direction. Property taxes should help to assist in the financing of services derived from
property only. The Ontario government should consider providing local municipal governments
with access to Provincial income tax.
Making the GTA competitive in an economic sense has to be the number one priority.
Municipal governments need the economic tools to help finance government.
.../6
GTA Task Force
Page 6
Keep in mind the following:
We need to better define the roles and responsibilities of authority between the provincial and
municipal government. We need to eliminate the existing duplication of services. We need to
streamline decision making.
We need to eliminate costly special purpose bodies - this is the late 20th century not the early 20th
century.
There is too much bureaucratic red-tape in the existing provincial-municipal relationship.
Municipal government particularly in the GTA needs to be liberated from the political bureaucrats
at Queens Park. If Alberta can develop legislation that treats municipal government as a grown-
up and not a creature of the province so can Ontario.
In summary:
a new Municipal Act - more simplified legislation that allows municipal government to do
more with less.
define clearly municipal responsibilities - untangling provincial and municipal government
roles
integrate the functions of local special purpose bodies, such as library boards with municipal
governments
eliminate Regional Government - too cost and not very effective in meeting the needs of the
public
the establishment of a GTA Coordination Office - to work with municipal governments on
areas such as transit, piped services and roads
assessment reform - restructuring of property taxes
The public does not want to see the creation of a maga government stretching from Oshawa to
Mississauga including the southern tier of York Region. The protection of individual
communities, the preserving of individual identities are important to the average citizen.
Municipal governments are the most cost efficient of all governments. Providing services in the
most cost efficient way is critical. Bigger is not necessarily better.
.../7
Page 7 GTA Task Force
The effectiveness of municipal government depends on having the powers to respond. The scope
of powers and method of obtaining them is clearly outdated and must be reformed. This is
especially true for the GTA municipalities.
We maybe looking at radical thinking in terms of the development of a Charter for the GTA are
specifically. The Province would recognize local government as an order of government and be
committed to maintaining a legislative framework to allow local governments full authority to
meet community needs. The basic role of the provincial government and provincial legislation
would be to enable local governments to meet community. The province would only restrict or
regulate local government where it is in the provincial interest.
Preserved as a founding principle of local governments would be the requirement that any local
government would conform to the following:
. no deficits
. debt limits
. due process to respect rules of natural justice
The province would provide to local government in legislation, responsibility to manage all areas
of community life expect those areas that it or the federal government has occupied or specifically
reserved. The province would agree to respect areas of local government jurisdiction to the
extent of provincial interest.
A Charter would recognize that local government must be provided areas of taxation and revenue
authority requisite to its responsibility. It would also ensure that when the province wished local
governments to take on new responsibilities they would be provided additional revenue sources.
A Charter would recognize that the Province and local governments (this is particularly necessary
in the GTA) were partners in providing essential services to the public and include a commitment
to consultation and cooperation; including the rights of local governments to:
. guaranteed access to provincial decision-making (particularly in terms of issues affecting the
GTA)
B an amending formula for local government legislation
. negotiation of conflicts
. ensuring local government jurisdiction is respected by provincial ministries, Crown
corporations and agencies
. joint decision-making in areas of shared responsibility
What the Charter would provide is a bridge - bridge between the federal constitutional recognition
of local government and the provincial statutes that establish those frameworks.
.../8
Page 8 GTA Task Force
The Charter would include the general powers of local government to manage their communities.
These powers to act in economic development, resource management, social development, healh,
environment etc. would only be limited if there were provincial or federal legislation and by
conformity to the constitutions.
General powers would be enacted by by-law.
An example might be the regulation of tree cutting (which would fall under the general powers to
manage the communitys development and environment) which a local council could decide ought
to be a local decision, provided the provincial (forestry) interest was respected and any
constitutional, common-law, private property rights were also respected.
This would be detailed enabling powers covering much of the current scope of the Municipal Act
or Vancouver Charter.
A principle would be established to allow municipalities to vary or supplement the detailed
provisions of local government statutes where specifically authorized.
Although the Greater Toronto Area needs reform, it should also be viewed in the context of
larger reform across the province for municipal governments.
It may be concluded that a special Charter needs to be created for the GTA and that further
reform and legislative changes could be applied in other areas of the province at a specified later
date.
Immediate reform and empowerment for municipal governments needs to take place now. The
economic engine of the province cannot afford to wait any longer. Immediate and decisive action
needs to take place.
I trust that these suggestions will be helpful in achieving this goal.
Yours truly,
TO: GREATER TORONTO TASK FORCE
ATTENTi0N : ANNE GOLDEN
FROM : BI LL ROBERTS - - [ 4 1 6 ) 7 6 9 - 3 1 6 2
BRIEF BACKGROUND
I a m t a k i ng t he t i me t o wr i t e t o y ou ba s e d on my ov e r t we nt y
y e a r s e x pe r i e nc e a s a me mbe r of a l oc a l r a t e pa y e r s a s s oc i a t i on ( t he
Swa n s e a Ar e a Ra t e p a y e r s As s n . ) , my i n v o l v e me n t wi t h a c i t y wi d e
f e de r a t i on ( t he Conf e de r a t i on of Re s i de nt a nd Ra t e pa y e r As s ns . ) a s
a d e l e g a t e a n d o f f i c e r a n d a s a l a w y e r w h o h a s
r e p r e s e n t e d
r a t e p a y e r a n d r e s i d e n t a s s o c i a t i o n s b e f o r e t h e On t a r i o Mu n i c i p a l
Boar d. My c o mme n t s c o me f r o m t h i s p e r s p e c t i v e a n d s h o u l d n o t b e
v i e we d a s b e i n g o n b e h a l f o f a n y o f t h o s e o r g a n i z a t i o n s .
I t i s a l s o d r a wn f r o m my me mo r i e s o f t h e a ma l g a ma t i o n o f
Swansea, Tor ont o a nd For e s t Hi l l i nt o t he Ci t y of Tor ont o, a nd wha t
t r a n s p i r e d t h e r e a f t e r , A s a r e s u l t I a m a w a r e o f t h e p o t e n t i a l
i mp a c t s t h a t a ma l g a ma t i o n c a n h a v e o n i d e n t i t y a n d a c c o u n t a b i l i t y .
I t i s f o r t h i s r e a s o n I w i s h t o d r a w i n t o t h e d e b a t e t h e
I s s u e s o f a c c o u n t a b i l i t y , a n d t h e n a t u r e o f l o c a l g o v e r n me n t .
THE DEFI NI TI ON OF LOCAL
I n t he de ba t e ov e r t he GTA a nd r e f or m of t a x e s one i mpor t a nt
c o mp o n e n t s e e ms t o b e f o r g o t t e n . T h e Wo r d L OC A L a s i n l o c a l
government . Co l e s Conc i s e D i c t i o n a r y c o n t a i n s t h e f o l l o w i n g
d e f i n i t i o n l . r e l a t i n g t o a p l a c e , 2 . o f , c h a r a c t e r i s t i c o f , o r
c o n f i n e d t o a p a r t i c u l a r p l a c e o r d i s t r i c t . . . T u r n i n g l o c a l
g o v e r n me n t s i n t o r e g i o n a l g o v e r n me n t s r e mo v e s t h e c o n c e p t t h a t
g o v e r n me n t s h o u l d h a v e a r e a l l o c a t i o n t o a r e a l p l a c e .
GENERAL OBJECTS
Loc a l gov e r nme nt s houl d be de s i gne d t o a dv a nc e t he a t t a i nme nt
o f c e r t a i n g o a l s w h i c h i n c o r p o r a t e p o l i c i e s t h a t a r e g e n e r a l l y
a c c e p t a b l e .
T h e f o l l o wi n g p r o v i d e a b a s i s f o r my v i e w a s t o wh a t g o a l s
s houl d be pur s ue d:
1. LOCAL GOVERNMENT SHOULD BE POLITICALLY AND FISCALLY
ACCOUNTABLE TO THE ELECTORATE IN THE AREA IT GOVERNS
2 . LOCAL GOVERNMENT SHOULD BE DESIGNED TO EFFICIENTLY
PROVIDE LOCAL SERVICES
3 . LOCAL GOVERNMENT SHOULD BE ABLE TO DEVELOP LOCAL
1
SOLUTIONS TO LOCAL PROBLEMS
4 . LOCAL GOVERNMENT SHOULD PROVIDE GOOD GOVERNMENT,
EFFI CI ENTLY WI TH FI SCAL RESPONSI BI LI TY
5 . LOCAL GOVERNMENT SHOULD BE OPEN AND ACCESSIBLE TO
THE PUBLIC AND SHOULD BE PERCEIVED BY THE PUBLIC TO
HAVE DEFINED AND RECOGNIZABLE BOUNDARIES RATHER THAN
ARTIFICIAL ONES NOT RELATED TO GEOGRAPHY, ECONOMICS
OR OTHER FACTORS
6 . A CLEAR DIFFERENTIATION BETWEEN LOCAL AND REGIONAL
SERVICES
7 . PROVINCIAL GOVERNMENT SHOULD SUPERVISE AND PROVIDE
ASSISTANCE TO THE LOCAL LEVEL BUT NOT TRY TO RUN AND
CONTROL THE DAILY OPERATIONS OF LOCAL GOVERNMENTS
REDUCTION OF THE NUMBER OF POLITICIANS AT REGIONAL AND LOCAL LEVELS
ha s be e n mut e d a s de s i r a bl e .
WHAT HAS BEEN THE EFFECTS IN THE PAST
I t i s m y b e l i e f t h a t a c o m m o n m i s c o n c e p t i o n I S t h a t b y
r e d u c i n g t h e n u mb e r o f p o l i t i c i a n s t o t h e g e n e r a l e l e c t o r a t e we
r e d u c e t h e c o s t s o f g o v e r n me n t a n d ma k e I t b e t t e r .
T h e i s s u e i s n o t t h e n u mb e r o f p o l i t i c i a n s p e r c e b u t t h e
a mo u n t p a i d t o t h e m a n d t h e i r a s s i s t a n t s . Re duc i ng t he numbe r of
p o l i t i c i a n s d o e s n o t n e c e s s a r i l y r e s u l t i n s i g n i f i c a n t s a v i n g s a n d
i n s ome c a s e s a c t ua l l y i nc r e a s e s t he c os t whe r e t he s a l a r i e s of t he
r e ma i n i n g p o l i t i c i a n s a r e i n c r e a s e d t o r e f l e c t t h e i n c r e a s e d
wo r k l o a d a n d a d d i t i o n a l a s s i s t a n t s a r e a d d e d t o t h e i r s t a f f s .
Let me expl ai n f r om my knowl edge of what happened at t he Ci t y
o f T o r o n t o . Swa ns e a wa s a ma l ga ma t e d wi t h t he Ci t y of Tor ont o a nd
t h e V i l l a g e o f F o r e s t H i l l i n 1967. S wa n s e a h a d b e e n o v e r
r e p r e s e n t e d b y T o r o n t o s t a n d a r d s w i t h p o l i t i c i a n s b u t u n d e r
r e p r e s e n t e d b y b u r e a u c r a t s . As a r e s u l t o f a ma l g a ma t i o n o u r t a x e s
i nc r e a s e d I mme di a t e l y a nd our s e r v i c e s de c r e a s e d I n a di r e c t r a t i o.
Wi t h e a c h n e w e x p e r i me n t b y t h e P r o v i n c e t h e n u mb e r o f
p o l i t i c i a n s a t t h e C i t y l e v e l d e c r e a s e d .
Mo s t r e c e n t l y wi t h t h e d i r e c t e l e c t i o n t o Me t r o t h e n u mb e r o f
p o l i t i c i a n s a t t h e C i t y l e v e l d r o p p e d f r o m 2 4 c o u n c i l l o r s a n d o n e
mayor t o 16 counci l l or s and one Mayor . Of cour se t her e wer e 8 Met r o
c o u n c i l l o r s . T h i s me a n t t h e t o t a l n u mb e r o f p o l i t i c i a n s I n c r e a s e d ;
however , a c c o u n t a b i l i t y d e c r e a s e d b e c a u s e t h e r a t i o o f v o t e r s t o
p o l i t i c i a n s i n e a c h j u r i s d i c t i o n I n c r e a s e d .
2
Be f o r e t h e r e we r e t wo c o u n c i l l o r s p e r wa r d . T h e o n e g e t t i n g
t he mos t v ot e s s a t on Me t r o Counc i l a nd on t he Ci t y c ounc i l ; whi l e
t h e n u mb e r t wo c o u n c i l l o r s a t o n l y a t t h e C i t y l e v e l . T h e r e wa s
c ommuni c a t i on, a n d wh i l e t h e c i t y wa r d s we r e l a r g e r t h e r a t i o o f
g e n e r a l p o p u l a t i o n t o C i t y c o u n c i l l o r s wa s l o we r .
A s a r e s u l t o f t h e r e d i s t r i b u t i o n M e t r o C o u n c i l l o r s n o w
r e p r e s e n t 5 0 , 0 0 0 t o 8 0 , 0 0 0 r e s i d e n t s , and local councillors (City)
r e p r e s e n t e d b e t we e n 3 0 , 0 0 0 a n d 5 0 , 0 0 0 r e s i d e n t s . T h e r e s u l t wa s
t h a t c o u n c i l l o r s became over whel med w i t h t h e i r d u t i e s t o
c ons t i t ue nt s a nd l e s s a bl e t o obs e r v e t he bur e a uc r a c y . At t he s a me
t i me t h e c o s t o f g e t t i n g e l e c t e d I n c r e a s e d t o t h e p o i n t t h a t t h e
powe r of s pe c i a l l obbi e s a nd pa r t i e s i nc r e a s e d t he r e by r e duc i ng t he
a c c o u n t a b i l i t y t o t h e l o c a l e l e c t o r a t e .
T h e n u mb e r o f C i t y b u r e a u c r a t s i n c r e a s e d , t h e c o n f u s i o n
i n c r e a s e d a n d c o mmu n i c a t i o n s b e t we e n Me t r o a n d C i t y p o l i t i c i a n s
l e s s e n e d s i n c e t h e y c e a s e d t o me e t a t t h e l o c a l c o u n c i l l e v e l .
I n a d d i t i o n t h e l o c a l p o l i t i c i a n s o n t h e b a s i s t h a t t h e y
we r e n o w r e s p o n s i b l e f o r mo r e p e r s o n s h a d e x e c u t i v e a s s i s t a n t s
a d d e d t o t h e i r s t a f f . I n t h e p a s t s u c h a s s i s t a n t s we r e a s s i g n e d
o n l y t o me mb e r s o f t h e Ex e c u t i v e a n d Ma y o r b e c a u s e o f t h e i r e x t r a
d u t i e s . I t w a s a s s u me d t h a t c i t y c o u n c i l l o r s s h o u l d b e a b l e t o
d i r e c t l y d e a l wi t h t h e i r c o n s t i t u e n t s a n d t h e p r o b l e ms wi t h i n t h e i r
wa r ds . T h e t o t a l s a l a r i e s i n c r e a s e d a n d i n e f f e c t t h e e l e c t o r a t e
n o w p a y s f o r p e r s o n s wh o t h e y c a n n o t d i r e c t l y t u r f o u t a n d t h e
pol i t i c i a ns ha v e be c ome mor e r e mot e .
I t i s p r o b a b l e t h a t i f you r e d u c e t h e t o t a l n u mb e r o f
p o l i t i c i a n s a t l o c a l a n d r e g i o n a l l e v e l t h a t y o u w i l l s i mp l y
i n c r e a s e t h e t o t a l n u mb e r o f b u r e a u c r a t s a n d a s s i s t a n t s t h e r e b y
mi l i t a t i n g t h e s a v i n g s .
T h i s d o e s n o t me a n t h a t y o u n e e d t o k e e p e i t h e r l e v e l o f
g o v e r n me n t b u t c a r e s h o u l d b e t a k e n i n d i r e c t e l e c t i o n t o a n y
r e gi ona l or l oc a l gov e r nme nt t ha t t he wa r ds do not be c ome s o l a r ge
t h a t t h e y c e a s e t o r e p r e s e n t r e s p e c t i v e l y t h e r e g i o n a l I n t e r e s t s
o r l o c a l i n t e r e s t s o f t h e e l e c t o r a t e .
I t s h o u l d b e r e me mb e r e d we l i v e i n a d e mo c r a c y . T h e r e a r e
c e r t a i n c o s t s r e l a t i n g t o t h i s f o r m o f g o v e r n me n t . T h o s e wh o wi s h
t h e n u mb e r o f p o l i t i c i a n s t o b e r e d u c e d a r e a t t a c k i n g t h e c o n c e p t
t h a t p o l i t i c i a n s a t t h e l o c a l l e v e l s h o u l d r e f l e c t t h e l o c a l
communi t y. I f y o u t a k e t h e a r g u me n t t o i t s l o g i c a l c o n c l u s i o n y o u
s h o u l d e l e c t o n e p o l i t i c i a n f o r l i f e t o s a v e mo n e y . Of c o u r s e t h i s
i s h i s t o r i c a l l y c a l l e d a d i c t a t o r s h i p . D i c t a t o r s h i p s ma y s a v e
p a y i n g p o l i t i c i a n s b u t t h e r e a r e t h e i n c r e a s e d c o s t s i n f o r m o f
p a r a mi l i t a r y p o l i c e , a r my u n i t s a n d c o u n t e r i n t e l l i g e n c e u n i t s t o
be c ons i de r e d. E x c u s e t h i s l i t t l e h y p e r b o l e b u t I c o u l d n o t r e s i s t
i t .
3
I n t h e c a s e o f l o c a l g o v e r n me n t d e c r e a s i n g t h e p o l i t i c i a n s
d i s t a n c e s t h e m f r o m t h e e l e c t o r a t e a n d wi l l o n l y r e s u l t i n I n c r e a s e
i n t h e i r s t a f f a n d t h e b u r e a u c r a c y .
LOCAL WARDS AND LOCAL MUNI CI PALI TI ES SHOULD REFLECT THE PROPER
ECONOMIES OF SCALE
Wi l l t h e i n c r e a s e d wa r d s b e t h e p r o p e r s c a l e t o p r o v i d e a n d
o p e r a t e wa r d s e r v i c e s a n d wi l l t h e l o c a l mu n i c i p a l i t y b e t h e p r o p e r
s c a l e t o p r o v i d e i mp r o v e d s e r v i c e wi t h o u t l a r g e n u mb e r o f mi d d l e
manager s. T h e a s s u mp t i o n t h a t b i g g e r i s b e t t e r i s a n o u t d a t e d
bus i ne s s c onc e pt . Mo s t b u s i n e s s e s n o w s e t u p a d mi n i s t r a t i v e u n i t s
t h a t r e l a t e t o t h e t a s k s t o b e p e r f o r m e d . T h e p r o b l e m w i t h
i n c r e a s e d u n i t s i z e i s t h e t e n d e n c y t o i n c r e a s e mi d d l e ma n a g e me n t
a nd i nc r e a s e r e d t a pe a s t he c ha i n of c omma nd l e ngt he ns .
F o r e x a mp l e t h e C i t y o f T o r o n t o iS t o o l a r g e t o b e a l o c a l
gov e r nme nt . Wh i l e Me t r o i s t o o s ma l l t o d e a l wi t h r e g i o n a l i s s u e s .
A s a r e s u l t y o u n o w h a v e t h e c r e a t i o n o f t h e GT A wh i c h b e f o r e
Me t r opol i t a n Tor ont o c a me t o be , had been done t hr ough t he Regi onal
Pl a n n i n g Bo a r d f o r t h e T o r o n t o .
Co- or di na t i on f unc t i ons c a n now be done by c omput e r a nd f a x .
The 9 1 1 syst em u s e s l o c a l f i r e d e p a r t m e n t s , p o l l e e ( r e g i o n a l
s e r v i c e ) a n d a mb u l a n c e ( r e g i o n a l s e r v i c e ) . I t i s n o t n e c e s s a r y t h a t
f i r e de pa r t me nt s be c ome Me t r o de pa r t me nt s t o pr ov i de t hi s s e r v i c e .
SAVE COSTS BY ELIMINATING LOCAL GOVERNMENT
T h i s f a l l s i n t o t h e r u b r i c t h a t c o n c e n t r a t i o n and
c e n t r a l i z a t i o n s a v e s mo n e y . A s a l r e a d y d i s c u s s e d t h i s i s n o t t h e
s u r e t y t h a t i t s s u p p o r t e r s c l a i m f o r i t . Y o u n e e d t o l o o k a t
g e o g r a p h i c a n d e c o n o mi c ma t t e r s t o d e c i d e wh e t h e r t h e r e a r e t r u e
s a v i n g s . I n a d d i t i o n w i l l t h i s r e s u l t i n a n a l i e n a t i o n o f t h e
p o p u l a c e f r o m l o c a l g o v e r n me n t . I f y o u k e e p t h e s a me n u mb e r o f
Me t r o p o l i t i c i a n s a n d t h e s a me wa r d s i z e s y o u wi l l s t i l l h a v e a
l a r g e c o u n c i l b u t t h e wo r k l o a d o n t h o s e r e ma i n i n g wi l l i n c r e a s e t o
t h e p o i n t t h a t e l e c t e d l o c a l p o l i t i c i a n s w i l l b e r e p l a c e d b y
e x e c u t i v e a s s i s t a n t s who a r e n o t d i r e c t l y a c c o u n t a b l e t o t h e
e l e c t o r a t e . T h i s c o u l d b e r e s o l v e d b y d e c r e a s i n g t h e wa r d s i z e s o
t h a t t h e wa r d s wi l l r e s e mb l e l o c a l mu n i c i p a l wa r d s b u t t h i s wi l l
i n c r e a s e t h e Re g i o n a l Co u n c i l t o a Co u n c i l c o n s i s t i n g o f o v e r 1 0 0
c o u n c i l l o r s . Ho w wo r k a b l e wi l l t h i s b e ?
SAVE COSTS BY ELIMINATING REGIONAL GOVERNMENT
Thi s ma y ha v e a dv a nt a ge s but how wi l l r e gi ona l ma t t e r s be c o-
o r d i n a t e d s u c h a s i n t e r u r b a n h i g h wa y s , s e we r s , dumps, p u b l i c
t r a n s i t , p o l i c e t o n a me a f e w. I t c o u l d b e d o n e b y c o o r d i n a t i n g
c o mmi t t e e s o f l o c a l mu n i c i p a l i t i e s a n d w h e r e t h e r e i s n o c o -
o p e r a t i o n a me c h a n i s m t o me d i a t e d i s p u t e s a t t h e Pr o v i n c i a l L e v e l .
4
A n a l t e r n a t e o p t i o n i s t o e l i mi n a t e r e g i o n a l g o v e r n me n t a n d
i n c r e a s e t h e n u mb e r o f P r o v i n c i a l p o l i t i c i a n s ( M. P . P . o r M. L . A . ) ,
a nd ha v e t he m me e t i n c ommi t t e e s f or a r e a s l i k e t h e GT A . Ov e r a l l
envi r onment al , t r a n s p o r t a t i o n , a n d t r a n s r e g i o n a l i s s u e s c o u l d b e
d e a l t w i t h b y p r o v i n c i a l m i n i s t r i e s w i t h b r a n c h e s t h a t w o u l d
c o r r e l a t e t o t h e a p p r o p r i a t e g e o g r a p h i c / e c o n o mi c z o n e s . R e g i o n a l
d u mp s wo u l d b e a p r o v i n c i a l i s s u e b u t h a n d l e d b y M. P . P . s a n d
M . L . A . s . Co n f u s i o n wo u l d b e r e mo v e d i n t h e s e n s e t h a t i f i t s n o t
l o c a l i t s r e g i o n a l / p r o v i n c i a l . I n de c i di ng how ma ny M. P. P, s a nd
M. L . A. s w o u l d b e t o l o o k a t t h e t o t a l s a l a r i e s p a i d t o p r e s e n t
p r o v i n c i a l and r e g i o n a l r e p r e s e n t a t i v e s a n d d i v i d e it by the
e x i s t i n g p r o v i n c i a l s a l a r i e s .
A f u r t h e r o p t i o n wo u l d t o s p e c i f y wh a t t h e r e s p o n s i b i l i t i e s
o f l o c a l g o v e r n me n t s a r e . Wh a t wo u l d n o t b e c o v e r e d u n d e r l o c a l
g o v e r n me n t wo u l d b e a Pr o v i n c i a l ma t t e r u n l e s s d e l e g a t e d b y t h e
P r o v i n c e t o a r e g i o n a l e n t i t y , a ppoi nt me nt s t o whi c h woul d be by
t h e l o c a l g o v e r n me n t s . S p e c i f i c r e g i o n a l ma t t e r s s u c h a s p o l i c e ,
a mbul a nc e , t r a ns ur ba n r oa ds , s e we r s , r e g i o n a l p a r k s , p u b l i c t r a n s i t
c o u l d b e g o v e r n e d b y s e p a r a t e e n t i t i e s a p p o i n t e d b y l o c a l c o u n c i l s
o r b y a r e g i o n a l c o u n c i l wi t h j u s t t h o s e s p e c i f i c d u t i e s . Re g i o n a l
b o d i e s w o u l d b e more s e c r e t a r i a t s r a t h e r t h a n f u l l bl own
b u r e a u c r a c i e s .
PRESENT STRUCTURE
Loc a l gov e r nme nt i s gov e r ne d by t he Muni c i pa l Ac t , The Ac t i s
c onv ol ut e d a nd ba s e d on a n 1 8 5 0 s Ac t wi t h upda t e s . I t i s t i me f or
a ne w Ac t t ha t s pe c i f i e s wha t l oc a l gov e r nme nt s c a n do. I n a ddi t i on
t h e r e a r e p r i v a t e A c t s w h i c h g i v e s p e c i a l p o w e r s t o d i f f e r e n t
mu n i c i p a l i t i e s . T h e s e a r e n o t r e a d i l y a v a i l a b l e a n d p r o v i d e a r c a n e
k n o w l e d g e t o t h e v a r i o u s l o c a l mu n i c i p a l i t y s s o l i c i t o r s . The
p u b l i c d o e s n o t k n o w. T h i s i s wr o n g . T h e r e i s a r i s k i n a ma s s i v e
r e s t r u c t u r i n g o f l o c a l g o v e r n me n t . We ma y n o t g e t i t r i g h t , o n t h e
o t h e r h a n d t h e p r e s e n t s y s t e m i s br ok e n. No o n e k n o ws wh o i s
r esponsi bl e f or whom or what wi t hout an ext ensi ve backgr ound i n t he
f i e l d . C o n f u s i o n a l l o w s d u p l i c a t i o n . We h a v e c r e a t e d b e t we e n
r e g i o n a l a n d l o c a l g o v e r n me n t t h e s a me i s s u e s o f p a r a mo u n t l y t h a t
e x i s t s b e t we e n P r o v i n c i a l a n d F e d e r a l r e g i me s e x c e p t t h e s e c a n
o f t e n c o - e x i s t wi t h n o me c h a n i s m f o r r e s o l u t i o n .
LOCAL VERSUS REGIONAL SERVICES
We n e e d t o g e t c r e a t i v e .
T h e b e s t me c h a n i s m iS t o c r e a t e a
r e g i o n a l e n t i t y wi t h l i mi t e d p o we r s t h a t a r e c l e a r l y r e g i o n a l . A l l
o t h e r mu n i c i p a l ma t t e r s wo u l d b e t h e r e s p o n s i b i l i t y o f t h e l o c a l
gov e r nme nt s .
MORE NOT FEWER LOCAL GOVERNMENTS
Ra t he r t ha n r e duc i ng t he numbe r of muni c i pa l i t i e s a s s ome ha v e
s ugge s t e d, I s ugge s t we i nc r e a s e t he numbe r but e ns ur i ng t ha t wha t
5
i s c r e a t e d ma k e s ge ogr a phi c , e c onomi c a nd c ul t ur a l s e ns e ba s e d on
t h e e f f i c i e n t p r o v i s i o n o f s e r v i c e s a n d t h e c o n n e c t i n g o f s i mi l a r
a r e a s i n t o g e o g r a p h i c u n i t s t h a t ma k e s e n s e .
E x c e p t f o r a c t s o f h i s t o r y , w h y d o e s t h e C i t y o f T o r o n t o
s t r e t c h f r o m t h e H u m b e r R i v e r t o V i c t o r i a P a r k , and have a
p a n h a n d l e s t i c k i n g n o r t h i n t o N o r t h Y o r k . Wh y i s No r t h Yo r k t h e
f o r m i t i s . A cl ose exami nat i on of t he boundar y bet ween Tor ont o and
Yor k a t Bl oor St r e e t We s t wi l l s how t ha t t he bounda r y c ut s t hr ough
a pa r t me nt bui I di ngs t o s uc h a n e x t e nt t ha t s ome of t he t e na nt s v ot e
i n T o r o n t o a n d o t h e r s i n t h e C i t y o f Y o r k . A r e o r g a n i z a t i o n o f
l oc a l bounda r i e s t o r e f l e c t a c t ua l phy s i c a l bounda r i e s a nd e c onomi c
z one s woul d pr ov e mor e e c onomi c a l . Wh y n o t p i c k r i v e r b o u n d a r i e s
a n d r a i l r o a d t r a c k s ? T h e e x a c t s i z e o f a mu n i c i p a l i t y a t t h e l o c a l
l e v e l s houl d be l a r ge e nough t o pr ov i de e c onomi e s of s c a l e but k e e p
a c c o u n t a b i l i t y i n p l a c e .
Why not 30 or 40
r e p r e s e n t a t i v e a p p o i n t e d
gover nment ?
ELECTIONS
l o c a l g o v e r n me n t s wh o s e ma y o r s a n d o n e
b y e a c h l o c a l c o u n c i l f o r m t h e r e g i o n a l
Wh y t h r e e y e a r t e r ms ? T h e s e r e d u c e a c c o u n t a b i l i t y . I t wo u l d
b e b e t t e r t o c o n s i d e r r e q u i r i n g v o t e r s t o r e g i s t e r a t t h e l o c a l
l e v e l r a t he r t ha n t he pr e s e nt e x pe ns i v e me t hod of e nume r a t i on. Thi s
wo u l d r e d u c e c o s t s a n d i n c r e a s e a c c o u n t a b i l i t y .
Wh i l e I r e a l i z e n o t a l l o f t h e s e s u g g e s t i o n s ma y f a l l wi t h i n
y o u r mandat e, I m a k e t h e m s i m p l y t o a s s i s t
que s t i ons I woul d be pl e a s e d t o a ns we r t he m.
PROPERTY TAX
T a k i n g n o t e o f t h e f u r t h e r f l u c t u a t i o n s
you. I f y o u h a v e
c a u s e d b y a p p l y i n g
ma r k e t v a l u e t o p r o p e r t i e s a s s h o w n i n r e c e n t r e p o r t s t o t h e
gover nment shows t h e i n s t a b i l i t y c r e a t e d by t h i s s y s t e m.
Mu n i c i p a l i t i e s s h o u l d b e a l l o we d t o o p t f o r o n e o f s e v e r a l s y s t e ms
whi c h ma y be a c c e pt a bl e .
( 4 1 6 ) 7 6 9 - 3 1 6 2
6
Michael Rosenberg
73 McCaul St. #327 Toronto Ont M5T 2x2
(416)971-9428 fax (416)781-0249
Anne Golden
Chair, GTA Task Force
393 University Ave. Suite 2001
Toronto Ont. M5G 1E6
Sep 29, 1995.
There are current pressures for reform of the GTA region. These mostly
centre on business tax levels and the need to do something about the general
state of the economy.
The competitiveness direction so far taken by the GTA Task Force is a
response to the way
thinking, and is no
economy and quality
much worse economic
The main error
these problems are seen within the context of recent economic
doubt honestly intended to result in an improvement in the
of life in the region, but will actually result in a
and social situation if carried any further.
being made is in asking the question How can we be
more competitive? rather than Is competitiveness beneficial?
The consequences of continuing to pursue competitiveness are not purely in
the realm of economic theory. The magnitude of the harmful consequences for
the ecoonomy have been greatly underestimated because the advantages and
disadvantages of competitiveness have been discussed in purely financial terms,
leaving out the much larger effects of the acceleration of technology on low
wages and unemployment.
It is important to understand that it really isnt going to matter what we
do about governance and tax formulas if the present trend towards low wages
continues. It is not t he case that high-tech produces high wages. Productivity
and value added do not determine wage levels; wages are determined by the
margi nal value of labour, which will soon be as low as one dollar per hour
when computer systems already in existence in university and private research
centres get into the workplace in the next five years.
Tax structure
1) Tax reform should not be allowed to reduce taxes to the lowest level
currently in existence; an approach to equalization of tax levels should be
revenue neutral, Consideration should be taken of the following: the regions
outside metro will likely have to raise their taxes in any case because they
have kept rates artificially low by funding operating expenses out of
development fees; the tax rate in Toronto will always be higher than in the
2
other regions because of the greater concentration of public and cultural
facilities in the central city; property taxes should be based on land and
building areas and not market value; business rates should be significantly
higher than residential rates, with the exception that residential rental units
should have the residential rate; there may be a need for a regional or city
percentage on the income tax as is current done for the province.
2) In order to achieve recommendation 1, some Metro or GTA government will
be needed. Assessment pooling is necessary more than ever today, not only
so the rich can support the poor, but to prevent each city from competing
to reduce rates to unrealistic levels. It is clear that no reasonable level of
public life and civilization would be maintained if the entire GTA had to
support all its public activities on the lowest levels of taxation currently
in the region.
3) The OMB should not be setting or overturning tax rates set by elected
bodies, If there is a dispute about tax levels it should be dealt with at the
city or regional council, not at the OMB. The OMB should either be eliminated
or restricted to cases which do not remove the councils ability to make
political decisions.
Competitiveness and technology
4) The GTA Task Force report should state the following problems with
competitiveness:
4a) Tax levels are continuously under pressure to be reduced to well below
what is needed for a sustainable society.
4b) Competitiveness does not mean that one region will get ahead of another;
it means all regions get low wages and less economic output going to people
(more goes to business-to-business trade and capital projects).
4c) The continued promotion of new technology, especially advanced
computerized automation, depresses the marginal value of labour. Low wages
and unemployment of a scale unheard of up to now (with wages falling to
one dollar per hour or less) are the result of the expendability of labour.
At a minimum, by stating the negative as well as positive affects of
competitiveness, the report will be doing something towards asking the question
of whether competitiveness is beneficial to society. However, what is needed
is a reversal of the whole approach to competitiveness, with the report stating
that competitiveness will result in economic and social ruin for society.
The decline of the middle class as people lose high paying jobs and have
to take low paying jobs, even when professional qualification is expected, is
going to be greatly accelerated as automation moves into the service and
professional industries. What concerns me most is the consequcnes of the
advances in integrated planning, retail and manufacturing systems combined with
voice recognition, From my experience in the computer industry, I can assure
you that we will not want these technologies to be allowed to be used in the
workplace. Within ten years the consequences will be even worse than the
worst poverty existing today.
3
5) There needs to be a study of the effects of new technology on worklife and
society with specific reference to the following terms:
5a) The effect of computerized automation on low wages and unemployment, and
the effect of low wages and unemployment on society.
5b) Primary focus on new technologies of the next ten years, especially on
automation technology (i.e. downsizing), which will have a larger effect than
communication technology.
5c) Consideration of the magnidude of the consequences, and the need to reduce
the amount of automation if it is found that the policy of expecting benefits
from technology turns out to at best be a way to turn the situation from bad
to merely less bad, but does not prevent the decline in the social and economic
standard of living.
A full study of this kind should probably occur at the federal level, but
these issues must also be considered now when preparing the economic proposals
in the GTA Task Force report. In addition, the GTA report should state the need
for a full study under these terms of reference.
I believe we can have more confidence in the future if the recommendations
1-5 are made a part of the Task Forces report. I would be ready to meet with
the task force members or staff for further discussion of these issues.
Yours sincerely,
Michael Rosenberg.
Attached:
Letter to UN Social Summit (March 1995) on Technology and Unemployment.
Toronto Star article on London England (Sep 24, 1995).
TREATMENT
TORONTO
Wa t e r a n d Se wa ge Ca p a c i t i e s p r e d e t e r m i n e a l l GTA De ve l op m e n t
a n d Gr owt h Pla n n i n g: Only water and sewage capacity stands in the way of
devastating the best Agricultural land in the province and exploiting it for the
development of Urban Sprawl.
Dear Anne Golden;
The Safe Sewage Committee is a public interest group that is concerned
only with water and sewage infrastructure. Informally sine 1989 and formally
since 1992, we have done more research in this area than any other public
interest group in Canada.
I personally have attended all but one of the Metro Works Committee Meetings
for the past 4 years. I confess that I have witnessed millions of dollars being
approved for water and sewage projects by Metro Councillors who hardly
understand the treatment processes they are saddling the public with. The
long-term economic burden and environmental and planning impacts their
decisions will cause are not accounted for.
Re c omme n da t ion 1 : That the Golden Task Force request Public Hearings into
the landuse and development plans already being requested by the Regions
and inventory of what remaining agricultural land exists, so that the GTA is
not just sustaining development but instead a dynamic way of life that the
people of Ontario have come to know as Southern Ontario for hundreds of
years. This is a place where agricultural land should be a major focus of the
economy and not the dead industry that speculators have created by only
valuing this prime resource as a paved suburb.
Sprawl is eating away at the fabric of Southern Ontario and the GTA will
escalate this destructive influence so long as greed for tax money drives
development rather than the kind of fundamental planning that is required
for the future existence of biological needs (water, close food sources, and a
health oriented living system of communities).
Re c om m e n d a t i on 2: A forum be held on the potential for agriculture land as
an agricultural resource, the needs of people in the farm communities of the
GTA Regions, and the urban market needs, to ensure the needs of the GTA are
met before it is lost to development.
At present we destroy the Oak Ridges Moraine for example to extract gravel to
pave the way for urban sprawl. To a great extent GTA is already beyond its
sustainable limits, and part of the problem has been that no forum has ever
existed to enable the average person to gain a perception or big picture, of
the extent of change we have already imposed on the GTA, what local
page 2
developers and politicians have already approved, and what the long-term
plans for the GTA might be.
The Future of the GTA belongs to the over 4 million people living here. It must
not be what is left for us all to pay for once the politicians and developers have
carved up our land, our economy, and spoiled our heritage. There is a need for
a forum, (not another level of government to challenge the province itself),
but a reality check.
It is time to say no to sending the groundwater of the Regions to the Lake as
sewage, and then send ever more contaminated lake water back up to the
regions (at great expense) and call it drinking water. It is time to really
understand the dynamics of growth in terms of how we diminish our resources
and have no plans to restore or clean up the mistakes of past urban
development. The envelope might need closing. It is important to know when
to close the urban envelope before we lose our ability to service the needs of
the GTA within the boundaries of the GTA, and that includes protecting the
food we need from our own agricultural resources.
Metro Government is an unknown level of government and does not function
in the democratic sense. It is at best a service agency. A service agency does
not require elected politicians, a Board of Management model would be more
effective and have the opportunity to have public interest and non-
government input into decisions.
Market Value Assessment
It is our view that infrastructure is more efficient in older city models such as
the City of Toronto. The City of Toronto has also paid for over a hundred years
for the water and sewage treatment it needs. The Ashbridges Bay Sewage
Treatment Plant for example was designed for the 700,000 people of the City of
Toronto. When Metro was formed in 1953 it was given to Metro for $1, I have
been told by politicians who were there. There has to be a mechanism that is
not based on market value but begins to shape growth and brings down the
costs of urban living so that agricultural land does not continue to be devalued,
or continue to provide cheap suburban land. The older cities and
municipalities must be able to go into a maintenance mode for taxes and costs
that is quite different than the initial and true costs of providing new services
to expanded sprawl.
In Florida something called an impact tax was introduced to not only prevent
cheap sprawl but to also preserve older neighbourhoods. The costs for roads,
schools, hospitals etc., that follow the water and sewage hook ups, all cost big
dollars that developers do not really pay the full cost for, even in terms of
planning alone, nor are new residents in sub-divisions paying the true costs
for all new services. When Metro consents to pay $100 million to subsidize the
water supply to York-Durham, the City of Toronto is being asked to pay, all
over again for water and sewage. No wonder the old towns and cities are
fighting to keep people when the new suburbs are so heavily subsidized. If
general tax subsidies were stopped for roads, water and sewage alone, the true
costs of regional development may begin to produce an economic incentive to
page 3
revive the already serviced areas. The city of Toronto has approximately
100,000 fewer people than lived here in 1976. Where is the economic incentive
for people to stay in Toronto? All we seem to get are tourists and the
environmental degradation of the regions in terms of air pollution from their
sewage being incinerated and discharged along the waterfront, their
workplace waste, and their cars grid-locking our neighbourhoods.
Some kind of public discussion is necessary to review your GTA Task Force
Report. Please send me a copy.
Enclosed are a couple of articles that I think may make some of our points
more clear. An appendix or two may follow, as I need more time to find them
and send them as I have just moved house.
Sincerely Yours,
I
Karey
PUBLIC
COMMITTEE
for
SAFE
. SEWAGE
TREATMENT
METROPOLITAN
TORONTO
Re : En vir on me n t a n d Pu blic Spa c e Commit t e e Age n da Se pt e mbe r 1 1 , 1 9 9 5 .
It e m 2 4 , Wa t e r Su pply t o t h e Re gi on of Yor k
Dear Chair and Members;
It is in the interests of the whole GTA for Metro and other lakeshore municipalities, to
stop subsidizing and offering up lake Ontario as a regional water supply and subsequent
sewage disposal sink.
York Region and the other GTA Regions need immediate plans to recharge their aquifers
and contain their needs within their own unique geological drainage basins. We are aware
of no plans to recharge their groundwater supplies and all this rhetoric about so called
sustainable development in the Regions is nothing more than a contradiction in terms.
What should we be Sustaining in the Regions -
Agricultural Land or Urban Sprawl?
It is virtually impossible, with the population of the Regions today even, for
them to be sustainable, given the present ground water supply - and that will
be gone if there are no proposals to recharge the aquifers by some sort of
infiltration basins.
To think that Lake-Based water and sewage will make the Regions and the Oak
Ridges Moraine area Sustainable will instead transform a groundwater- based
agricultural geographic piece of Ontario into literally an artificial or virtual
and paved urban satellite.
What eliminates agricultural land faster - Landfill
sites or sewer capacity? Sewer Capacity of course!
Many of us in Metro do not understand how the Regions can successfully stop
Landfill proposals on the basis this will consume scarce acres of agricultural
land while they are willing to put up $111 million, and rake million of dollars
off the Metro tax base, for what - consuming vast tracts of agricultural land,
for urban sprawl and paved development.
Metro must stop subsidizing Regional development. We are placed in double
jeopardy: we need the agricultural market gardens of the region and cannot
withstand the erosion of the Metro tax base .
page 2
Di s a d va n t a ge s of La k e -Ba s e d wa t e r a n d Se wa ge
1.) Degradation of Lake Ontario
B As the Regions collapse their tertiary sewage treatment Plants and replace
them with pumping stations directed to the waterfront, only secondary sewage
treatment is provided. It is not the conventional oxygen demand and fecal
coliform that are a problem here - It is the concentration and accumulation of
all the untreated and untreatable toxic metals, and persistent toxics that will
build up in Lake Ontario. On the one hand the rural municipalities are saying
they cannot afford to enforce the more stringent Sewer-Use By-Law that
Metro Toronto has, but they will have to - or will the Regions depend on Metro
and Ajax to enforce the Sewer-Use By-Law?
2.) Degradation of the Drinking Water Supply
. It is already apparent that water purification is no match for the many
chemical contaminants in Lake Ontario. Further accumulation will raise the
cost and reduce the quality of drinking water. Removing lindane, dieldrin and
other toxics is difficult if not unaffordable or impossible.
3.) Higher Costs for Removing Higher concentrations of Sewage-born
contaminants.
4.) Higher costs for water transport and water disinfection,
5.) Huge increases of chlorine may be necessary to to overcome the delivery
time to the Regions and would require boosting and additional chlorine.
6.) Pumping over the Oak Ridges moraine is not cost effective.
Benefits of Infiltration Basins, Water Reuse and
Water Reclamation Plants
1.) No degradation to Lake Ontario water quality.
2.) No accelerated degradation to lake Ontario drinking water supplies.
3.) More stable costs for water purification for the existing urban envelope.
4.) Reduction of costs for transportation, disinfection.
5.) Reduced need for chemicals for disinfection, primarily chlorine.
6.) Reduced energy required to not need to pump water sewage up-hill in
many cases and all over the regions.
page 3
7.) Secondary water supply plants provide water for:
a) irrigation needs
b) agricultural fertilizer needs, close to the end user
c) potential water recreation opportunities
d) the stormwater Iagoon/ infiltration basins in Winnipeg suburbs, since the
mid 1960s are 1/ 4 the cost of total in-pipe drainage to sewage plants
e) source of a secondary piping system to meet institutional and non-potable
water needs, such as for water fountains, parks and swimming pools, toilet
flushing and lawn watering etc. see attachment re: Marin County.
f) infiltration basins can recharge the groundwater
g) pollution prevention and source control is far more effective at source. It is
obvious that the regions will respond to the contamination of their own water
supplies and will care less if they are degrading a lake, Lake Ontario, some 60
or more kilometers away.
Recommendation:
It wou ld be of gr e a t in t e r e s t for Me t r o t o in s is t t h a t Yor k Re gion
or a n y ot h e r Re gi on a l Mu n i c i p a l i t y fi r s t p r e s e n t a l on g t e r m p l a n
for t h e ir wa t e r s u pply t h a t a s a fir s t c on dit ion mu s t s olve a s mu c h
of t h e ir own wa t e r a n d s e wa ge n e e ds in t h e ir own a r e a s a n d
d e m on s t r a t e t h a t t h e y h a ve , i n op e r a t i on , fa c i l i t i e s t h a t wi l l
r e c h a r ge t h e i r gr ou n d wa t e r a n d c on for m t o t h e Wa t e r s h e d a n d
Su b-Wa t e r s h e d Pol i c i e s of t h e Fe d e r a l a n d p r ovi n c i a l Gove r n m e n t s
be for e a n y m on e y or wa t e r fl ows t h r ou gh t h e Me t r o s ys t e m t o
c o n s u m e a gr i c u l t u r a l l a n d t h r o u gh u r ba n s p r a wl .
-.
Metro Councillors Form
New Sub-committee
to Study Sewage Sludge
N
OBODY HAD ANY ANSWER
On January 13, Karey Shinn of Safe
Sewage and Aine Suttle of Citizens
for a Safe Environment presented a deputation
to The Metro Works Committee [this com
prises those Metro councillors, plus senior
members of the Works Department, who are
responsible for the sewage treatment system]
Shinn and Suttle were enquiring into the
alleged need for $51 million of incinerator
spending at the Main Treatment Plant [see
box below], Because no adequate reason was
forthcoming, Councillor Anne Johnston pro
posed the establishment of a sub-committee
look into sludge input and incinerartion
Works Committee Sub-Committee on Sewage
Sludge Management is: Ila Bossons [Chair]
Joan King, Paul Christie, Anne Johnston
Alan Tonks and Dick OBrien,
Several meetings of the Sub-Committee
have been held. New voices are being heard
such as Dr. R.E. Jervis, Dean of Chemical
Engineering at the University of Toronto, who
reported his findings that sewage incineration
does nothing more than kill pathogens and
boil off water; that its the wrong technology.
On this new sub-committee, Councillors
are devoting time and effort to understanding
:
the issues. This will enable them to supply the
informed leadershi
p
that has been lacking.
Through, then Taken Back for "Clarifications"
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
T
HE MTP received a Certificate of Approval
million, and new emission controls, at $29 mil-
lion, from the Approvals Dept. of the Ministry
the Environment on S ept. 22, 1992. Ruth Grier
then Environment Minister who bad already
passed legislation against garbage incineration,
as not informed. S afe S ewage was not alone in
Sludge Fudge
How new sewer-use by-laws encouraged
of hazardous waste into a system. that
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
And how Works Department statistics
the dumpin
g
can't treat it
obscured the
resulting surge in sludge flow at the Humber plant
M E T R O T O R O N T O S L U D G E F L O W
1985- 91
S. m
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
,365 ,!4 ,9s1 ,S!a ,989 ,M ,$q,
Fig. I:A dramatic trend...
t.Ei!?o TORONO SLUDGE OlS?CS_4L ; 982 1991
m
. . . -
D . - - m - 1 . .
Fig 2... that Metro Works faiLd to notice.
might have triggered thi
5
s
o
li& ]
Oa
di
ng
?
, . .
IC appears dl~t [he new Ontario and Merro
S ewer-UJ e By-Lawr are responsible. Heres why:
In 198\ the Minisr
V
of the Environment
reviewed its by-law prorecrin
g
rhe quali~ of
Con:inwdon Ptzxc~
discharges into sewers, focusing on Persistent
toxic materials. Concurrently, and quite
independently, conditions were issued to
accompany the Certificate of Approval for
sludges bein
g
landfilled at the B
roc
k \V
e5
t
Landfill Site.
Condition #
4
stares that:
in the interim Guideline for the Interpretation of
the Hazardous Waste Definition [regulation 3 0 9 ]
and the "Test Method for the Determination of
Liquid Industrial waste (Sludge Test) of the
Ministry of the Environment shall be disposed at
this site.
Also since 1985, tipping fees have gone up
significantly, and the only hazardous waste
landfill in Ontario is near Sarnia. And then
in 1989, Metropolitan Toronto followed up on
the Ontario by-law, with a more stringent
version of its own, Sewer-Use By-Law #r153-89,
A Logical Reaction
How did the commercial and industrial
sectors respond to this new combination of
Circumstances?
Were these sectors aware of how much
toxic material could be discharged into the
sewers before the Sewer- By-Laws were
publicized, stating qualities?
Did this now present itself as a COn ve-
nient, economical way to dispose of hazardous
and industrial/commercia] liquid waste and
sludges that were no longer being allowed to
enter Brock West
:
too expensive to send to
Sarnia as hazardous waste, and perhaps :00
small to make recycling feasible on a small-
business scale for generators of these wastes?
It woul d a p p e a r s o, i n wh i c h c a s e i t i s
e xt r e m e l y i r on i c that a sewer-use by-l aw
designed to limit toxic waste at source has
actually had the opposite effect.
Putting the New Sludge Stream
in Perspective
The extra 15,ooo-plus tonnes of sludge now
entering the Metro sewers for disposal is a
unique sludge waste stream that was previ-
ously nor captured.
It is a new load of solids that may well be
responsible for the bi
g
increase in some heavy
metals now arriving at the Main Plant from
the Humber.
without further ado, steps should be
taken to control the release of these solids into
the Metro sewer system, with treatment/pre-
treatment technologies co effectivel
y
protect
then~,ironment throughout Metro,
This inept example of sludge manage-
ment goes to show that its one thing to
record data, quite another to interpret it
meaningfully. If the current regime at Metro
Works cant understand the presentas
reflected in its own statisticshow can its
plans for the future be taken seriously?
Safe Sewage Presents Health Stud
y
to Scientists at IJC Workshop
WORKSHOP oN ECOSYSTEM HEALTH: A DIA-
LOGUE BETWEEN SCIENCE & THE COMMUNI TT
S ponsored by the Great Lakes S cience Advisory
Board of the International J oint Commision.
Ann Arbor, Michigan, S ept. 14 15 1992.
H
EALTH 2000, THE EAST TORONTO
Participatory Health Study was pre-
sented b
y
Laura Jones, Kare
y
Shinn,
Betty Vanderwater, and Kathe Walshe.
Our slide show depicted the proximity of
the industrial portlands to residential neigh-
bourhoods. Triggers to community concern,
previous studies, shortcomings of the Board
of Health, information on the health of
different neighborhoods, and the fallacy of
risk assessments were pointed out.
A summary, of the organizational structure
of the stud
y
and the questionnaire procedure
were outlined for the many doctors, bureau-
crats, toxicologists, and epidemiologists at the
workshop. The response was very positive and
members of the scientific community wanted
to know more. Our stud
y
was considered to
be unique, unlike an epidemiological study,
and must be criticized outside that model.
The Health 2000 stud
y
is now completed.
The questionnaires have been run through
computer analysis. The soil restin
g
is done.
We look forward to releasin
g
the results at a
public meeting to be scheduled in late May.
For further information contact: Dr. Rosalie Bertell,
International Institute of Concern for Public Health, 830
Common e r Addr e s s e s Ch lor in e Con fe r e n c e
Phasin
g
out the Chlorine Industry is the only way to
Deal with Toxic Organo-chIorines in the Environment
more resistant, the chemicals more costly and
the economic productivity from a dollar of
these chemicals had been eroded by 70%.
Large scale organic farming could bring a
n
economic renaissance by producin
g
the same
yield without the debt created b), financin
g
agricultural chemical practices.
Commoner proceeded to calculate the
economics of shuttin
g
down the chlorine
industry and concluded that it would cost
less than keeping it going.
The weekend seminars went into the
co; tent of his address in detail. Excellent pre-
sentations were made b
y
Dr. Theo Colborn
of W. Alton Jones Foundation and World
Wildlife Fund, who presented studies on Great
Lakes bird Populations; Dr. Paul Connett, St.
Lawrence University/Work on Waste, discussing
incineration; Tom Webster on organo-chlorine
production; and Gordon Durnil, U.S. Chair,
International Joint Commission.
On the whole it was a great weekend.
More than any-thin
g
else was the sense char
there are lots of people just like us, with the
bigger picture in mind: acting locally by usinS
rational understanding to clean u
p
the p ol l u -
tion and toxic mess inherited from post-war
chemical indusrialization.
Barry Commoners opening address, Breaking the)lanr:c
Trap, is on tape and available from Greenpeace, along
with other printed conference materials on chlorine and
the alternatives.
SA FE SEWAG NEW' SPRING 1 9 9 3 I 3
How Not t o Expand t he Main Plant
Two alt ernat ive ways t o enlarge t he syst em, wit hout addit ional chlorinat ion or incinerat ion
DEMAND
MANAGEMENT
A Water Capacity Credit Option
By Karey S hinn
R
increased treatment capacity to the
municipality Metro Works should
move tO constrain demand. Heres how:
STEP I: Calculate the full costs of expanding
the Main Treatment Plant or any municipal
sewer project, and divide by the number of
gallons of capacity it will buy.
e.g. divide S1.5 billion by 66 million imperial
gallons per day = approx. $23.oo/imperial gal.
At this rate, a permanently installed low
flow toilet would be worth approx. 3 imp. gals./
flush, x 4 flushes/day = 12 gals. x $ 23.oo/gal.
= $276.00
STEP 2: Create an inventory of existing build-
ings, especial), large office buildings and
medium sized industrial/ institutional water
program. (This will lower their water and
hydro costs on a Monthly), basis.]
STEP 3: Audit current water use and estimate
potential water reduction to establish a credit
and cost of the retrofit.
STEP 4: ldentify new development or redevel-
opment projects and the waste water capacity
they require for Permits.
Matching new users with existin
g
capacity
users will hel
p
to stabilize the revenue gener-
ated at the water supply end and hold rates
down. It is questionable if there is an advan-
rage to rapidl
y
cut water consumption only to
find we are stuck with huge water rate increases
to run the existing system. It also makes little
sense for individual municipalities to initiate
sewer pipe separation, if their is nothing in it
for them financiall
y
to free u
p
this volume to
Metro when they have no new development
to use the freed capacity.
STEP 5: Apply this system to the water supply
demand.
In short, the individual Municipalities could
broker volumes within their jurisdictions and
tro could broker them between Municipal-
ties. The system would subsidize irself. Also,
landowners of a number of large real-estate
holdings could be allowed to transfer capacity
to their own redevelopment projects, or
generate new candidates for conservation b
y
SOLAR
AQUATICS
An Inexpensive Way to Treat CSO
By David Done
s
met recently with engineering repre-
sentatives from Ecological Engineering
Associates and Proctor & Redfern Ltd. to
discuss the viability of Solar Aquatics in an
established urban environment. The discus-
sion was encouraging as it seemed that it
might be feasible to use Solar Aquatics [O deal
with Combined Sewer Overflows (CSO) and
stormwater in the river valleys of Metro
Toronto, In particular the cso and stormwater
outfalls in the Don Valley were of specific
concern to the Cornmittee as these impinge
on the City of Toronto Sewer Master Plan
of tunnels and detention tanks to deal with
service area.
,
Not Chemically Dependent
Solar aquatics is a set of natural techniques
employing greenhouses with various endemic
plants and microorganisms to real wastewater
with solar energy and through plant growth
and filtration. It does not create synthetic
organic by-products from added chemicals. It
does have difficulty cleaning heavy metals
from the wastewater; however, with stringent
pretreatment source control and the Harbour
Commissioners soil recycling faciliy to deal with
an
y
sludges this should not pose a difficulty
Prima facie, Solar Aquatics techniques are
environmental significant}
,
better than
collecting cso and stormwater from the Don
Valley outfalls and funneling it to the MTP
for treatment specifically, one can point to
the Don River recharge, no chlorination, no
incineration, less energy requirement, lower
cost, and natural methods.
Spreading the Flow
There are 43 cso and stormwater outfalls in
the City of Toronto with 17 of these in the
Don Valley. The combined flow from these
outfalls is estimated at 19 MIGD or 41 cubic
metres per second. On average this is a
pp
roxi-
mately .446 MIGD per outfall although probably
with wide variance among outfalls.
If a number of facilities were built in the
Don Valley at the site of these outfalls, one or
two acres per plant would be required, and
.
capital costs would be approximately three to
Continued on page 8
Co-op e r a t i on
Expose the Dangers-Promote
Many were disturbed when the Environmental
Assessment document for Sludge Utilization
stated that incineration was considered by the
consultants to be as good an option as any
other sludge management program. This is
not so. In the largest city in Canada, with
the worst urban smog, there is no way that
incinerationa technology that can only
make air pollution worseis anything but the
wrong choice.
To stop the incineration of sludges at
Ashbridges Bay will take leadership and co-
operation. Surely that is the benchmark of
good government, and an important proving
ground for our Metro Government.
The price of (nitrogen-based urea fertilizer has shot up on the world market to
over $400 per tonne from $75 a few years ago. No wonder companies are falling
over each other trying to stop Metro from incinerating its nitrogen-rich sludge.
By David Done
w
HAT I S BE NE F I CI AL U S E? Why has
it become the preferred method of
sludge management?
Beneficial use of sewage sludges or bio-
solids refers primarily to the re-use of nutrients
in sludge for economic and utilitarian purposes
in a variety of land application options. Bene-
ficial use is an environmental optimization of
limited resources in tune with natural processes
and cycles.
The Safe Sewage Committee is interested
in the beneficial use of sludge at the Ash-
bridges Bay, Main Sewage Treatment Plant,
Toronto. The difficulty with beneficial use of
any sludge is the level of toxic contamination
from residential wastewater generation, indus-
trial waste discharge and ground runoff. Stud-
ies at Ashbridges Bay Main Treatment Plant
(ABMTP) in 1988-89 by Zenon Environmental
Inc. give baseline indicators of the contami-
nants at Metro Torontos sewage treatment
plants, includin
g
the ABMTP.
Reducing risks from contaminants
Along with a variety of heavy metals there are
synthetic organic contaminants including
toluene, ethyl benzene, phthalates, lindane,
dioxins, furans, carboxylic acids, phenols,
steroids, oils and greases.l The health effects of
heavy metals are better known than the effects
of the organic contaminants. Some studies
indicate the accumulation of organic contam-
inants in the fatty tissue of various animals.2
Better known is the effect of these organic
contaminants on plant vitality and viability.
Large molecules seem to impede the aeration
and permeability of soils, degrading growin
g
environments and diminishin
g
the optimum
conditions for plant growth. It becomes
imperative to enforce stringent sewer use regu-
lations to ensure and enhance the cleanest
sludge possible for the most beneficial use
possible of this product for a given target site.
In this respect Metro Toronto and its bor-
oughs have been deficient. This is partly the
result of the Works Departments invested
interest in incineratin
g
technology and its atti-
tude that wastewater sludge is a waste product
to be disposed of rather than an organic
Ci t i es ever ywh er e are
cleaning up their sludges and
giving nutrients back to the
land fertilizing agricultural
and reforested areas
resource of slowl
y
releasin
g
nitrates. Also the
judgment that pre-treatment technologies are
too costly for companies to install rather than
close down and transfer their plants must be
resisted. We find this approach to wastewater
pre-treatment unacceptable.~ It is important to
decentralize wastewater treatment capability to
more stringently control toxic sources emanat-
ing from industries near a given site. A smaller
service area per plant site means that pin-
pointing major polluters would be easier.
Beneficial use is not a choice between land
. .
application on the one hand or various alter-
natives comprisin
g
incineration, landfill,
waterway dumpin
g
or inter-jurisdictional
transfer on the other. It is the choice between
land application agricultural uses and non-
agricultural uses such as silviculture or soil
remediation. Depending on the level of inor-
ganic and organic contaminants a compara-
tive risk decision has to be made for land
application. It is the Committees consensus
view at the present time that the quality of
Metros sludge at the Ashbridges Bay Plant
warrants non-agricultural application unless
some technological chain of remediation tech-
nologies can brin
g
about a cleaner product for
farming purposes. But if sludge quality falls
within U.S. Environmental Protection Agency
(EPA) regulation 503 it is environmentally safer
to apply to land than landfill or incinerate.i
The Toronto Harbour Commission demon-
strated chelatin
g
techniques that can remove
a spectrum of heavy metals from sludge.
Other processes claim to fix heavy metals
by making them basic compounds through
cement kiln dust liming of the sludge. The
difficulty here appears to be the stability of
these compounds in climate acidic conditions
of acid rain.
Certain dilution technologies which kill
pathogens but leave contaminants, such as
vermiculture techniques, are also available. An
elaborate monitoring capability should be
established for any beneficial use option put
in place for agricultural use. Food chain bio-
accumulation and bioavailablity must be rig-
orously monitored.
Request for Proposals: designed to fail?
The recent Request for Proposals b
y
Metro
Works for biosolids beneficial use are promis-
ing in a political sense. These alternatives now
appear to be a real possibility. However th
e
two contractors, Terratec and Harbour Reme-
diation and Transfer Inc., are only taking 50%
of the ABMTP sludge. It is imperative that
a 100% solution be planned in the ABMTP
Environmental Assessment submission to the
Environmental Assessment Board of the
Ministry of Environment and Energy.
We seek closure on the issue of incineration
through beneficial use land application rather
than a protracted public consultation and
tie-in with the Western Beaches Individual
Environmental Assessment, especially with the
Compared with beneficial use, sludge incineration in downtown Toronto exposes the public
to huge, avoidable risks of diseases such as asthma, lead poisoning, and cancer.
SAFE SEWAGE NEWS, SW M M ER 1995 I 3
City of Toronto gets serious
I
Flushing away a fortune
Rationalizing regional government in the Greater
Toronto Area (GTA) would mean bigp+esfiom Vaughan,
Newmarket, Markham, etc., to Lake Ontario
By Debra Kyles
o F AR, the Gr e a t e r Tor on t o Ar e a (G T A)
effluent and overflows into the lake. This is
comprises Metro Toronto, Peel, Halton,
implicit in mos t Polit icia n s visions of a GTA
York and Durham. It has no institutions
government, e.g. Metros Alan Tonks:
other than an office in the Ontario Ministry
Under Tonks plan [for the GTA], the
of Municipal Affairs. What makes it impor-
region takes over control of infrastructure and
tant is that municipal reform is under way,
city services, leaving municipalities to handle
and the Greater Toronto Area could replace
services to people.2
the Metropolitan Toronto Area as the unit of
Expansions of lakeshore sewage treatment
government for the supercity of Toronto. facilities at Highland Creek in Scarborough,
Under the tide of GTA 2021, The Ministry Duffin Creek in Pickering, Ashbridges Bay in
of Municipal Affairs has documented growth Toronto, and Lakeview in Mississauga are all
around Toronto and decided how much targeted to service York and Durham. Capital
expansion is possible. Its a status quo vision costs are often budgeted into the taxes of the
of the future, skewed to
growth, development and
old-tech sewage treatment.
Politicians and devel-
opers seem to know all
about the Greater Toronto
Area vision, but for many
residents it looks like a
nightmare. Local newspa-
pers across the GTA reflect
a growing concern. What
does it all mean? How
will GTA growth impact
peoples lives, lifestyles,
and communities? The
population projections
are frightening, often
doubling in 25 years. For
those who live in the
country to be near forests
The stage is set:
most population
growth will occur
in the regions,
most sewerage
spending will
occur in Metro.
The political
visionsare of
one mind: water
infrastructure is
to be managed
at the GTA level.
waterfront host commu-
nity, adding insult to
injury. So while water-
front communities are
exposed to increasing pol-
lution, odour and health
problems, those benefit-
ing live miles away from
the environmental an?
financial effects.
Towns such as Vaughan
boast of some of the
lowest property taxes in
Ontario, while Toronto
residents pay some of the
highest taxes in North
America. Forced out of
homes and businesses
because they cant afford
the cost of the city, people
.
and fields, for clean air and water, for peace are moving out to where its cheaper and
and quiet, and to escape pollution, traffic jams
and lineups, the encroachments of the city are
upsetting. Rural life will vanish as highways
and sewers are built and urban sprawl and
industrial parks cover agricultural land. Who
was asked if they wanted this?
Piping sewage 50 km for treatment
Infrastructure that services population in the
regions also effects Metro Toronto residents.
The planned development does not have the
water or sewage capacity needed to sustain it.
So, because its cheaper to build pipes than
plants, and easier to expand existing plants
than create new ones, short sighted politi-
cians, developers and engineers look south to
Lake Ontario.
It is an axiom of the planning process that
sewage from new development will be sent
down Big Pipes to be burned on the City of
Toronto waterfront, with massive increases of
SAFE SEWAGE NEWS, SUMMER 1995 I 5
S E W E R U S E B Y - LAW
Dead in the water
limits; and has charged violators.)
Characterized only by suspended solids,
oxygen demand, and in some cases phenols
and nutrients, the By-Law does not tag which
solids are toxic metals, or toxic organic chemi-
cals. In large sewer systems, the accumulation
of small dischargers such as one-hour photo
shops and dry cleaners is not addressed. Pollu-
tion Probe is working to curb the discharge of
mercury from Hospitals into the sewers, and
better understand hospital sewer-user.
Treatment plant operators boast of high
performance levels. But for all the millions of
Industry Either are very proactive in pollution pre-
vention and water efficiency, or they gripe they will
lose money if forced to clean up.
The Association of Municipalities MISA is too
expensive to be comprehensive so water it down so
that everyone can operate under the same By-Law.
The Province MISA is too expensive to enforce, so
only those municipalities that can afford to enforce
MISA must comply (48 out of over 400 in Ontario).
Others need not, even if they host Significant indus-
trial Dischargers,
Municipal Engineers Want toxic organics covered in
the By-Law, see need for monitoring of persistent tox-
ics (have suggested clams), know major advances in
technology can achieve better quality wastewater,
and believe the Sewer-Use By-Law can work.
The Federation of Labour Views the new Sewer-Use
By-Law proposed by MISA as de-regulation, wants
toxics addressed and knows that any relaxation of
the current By-Law will result in more workers being
exposed to more risks. Persistent toxics and organic
chemicals in sewage and the sludges are of great
concern to workers. They want secondary sewage
treatment as a minimum standard for all plants.
Public Interest Wants toxic organics covered in the
By-Law, a focus on control of pollutants at source,
the Sewer-Use By-Law applied to all municipal plants,
phase out of persistent toxics into the sewers, toxics
monitoring, and phase out of chlorine as a waste-
water disinfectant. The public wants the By-Law to
be a progressive instrumenta means to ensure
that sludges are clean enough to meet agricultural
land application at a minimum, and that water being
returned to the environment is best possible, non-
toxic, and without dilution to meet Provincial Water
Quality Objectives in a receiving water.
environment by way of the public sewer sys-
tem. Designed as a biological process, the
municipal treatment plants-are no match for
hazardous pollutants that flow right through.
Club Met r o pr oduct s
Safe Sewage suggests Club Metro product
labels for Metro. A Club Metro label would
identify detergents, cleaners, hygiene prod-
ucts, medications, shampoos, etc. Club Metro
products would go through the sewage treat-
ment process and leave no toxics or pollutants
in water that would be discharged to degrade
the natural environment. Similarly, labels on
untreatable would be like health warnings
on cigarette packages, e.g. This Product is
Hazardous to Human Health and the Envi-
ronment. Do Not Discharge into the Public
Sewer System. Call for a Hazardous Waste
Collection Depot at (phone no.).
T
HE C ITY OF TORONTO h a s b e e n s t o p p e d fr o m r e s i d e n t s a n d On t a r i o Pl a c e (wi t h ove r t wo mi l l i on
going ahead with a plan to build a sewer tunnel visitors a year) should all be relieved to know they now
system along the western shore of the city. have an opportunity to have the City of Toronto and
The first stage was to be a subway size tunnel over Metro rethink their plan and appropriately consider all
five kilometers long, from the Humber Bay to Ontario the new tech alternatives that can solve the old problem.
Place. The tunnel was to carry com-
bined sewer overflow (CSO) that cur-
rently pollutes the Western Beaches,
and discharge it at Ontario Place.
Solids that settled in the tunnel
would have been pumped 12 kilome-
ters to Ashbridges Bay for burning.
Moving t he pr oblem
The Citys plan did not solve the
water pollution problem in the West
End; it just transferred the problem
from twelve outfall pipes to one
large continuous and concentrated
discharge at Ontario Place.
On the basis of an independent
study by the Environmental Assess-
ment Advisory Committee, the
Honorable Bud Wildman, Ontario
Minister of the Environment, halted
the project, calling for a Full Envi-
ronmental Assessment, to be coordi-
nated with Metro under a watershed
Wester Tunnel: 5.5 m dia. \
Subway tunnel: 4.8 m dia.
Proponent.................................City of Toronto
cost. . . . . . . . . . . . . . . . . . . . . . ...........................$60 Million
Diameter. .................................................5.5 m
Length..............................................Over 4 km
Depth.....................5O-6O m below the ground
Capacity...........................................95.OOO ml
Discharge point....... Strachan Ave./Ontario P1.
Solids. . .......................368 tonnes (per annum)
to be burned at Ashbridges Bay
,
Part of a larger plan
The Western Beaches Tunnel was
only a small section of a mega-tunnel
nightmare planned to brin
g
waste-
water from municipalities across
Metro to be discharged and burned
at Ashbridges Bay. Two large tunnels
would run under the Don River
Valley, taking most of the River with
them, and join up with the big tunnel
at the Toronto shoreline. Concerned
citizens and politicians have success-
fully put this on hold.
The only sensible approach, that
has so far been resisted b
y
traditional
engineers, is to have a comprehensive
sewer-wastewater-watershed management
plan for all of Metro.
-
The future of our urban waters is
on the table. For the first time water
related projects can bring all the
sectors together, including community
planning initiative and integrated with the ongoin
g
groups who want our rivers restored, pavements removed
Environmental Assessment of the Ashbridges Bay plant. from open spaces, and water made to function as a
Yacht owners, recreational water users, Toronto Island resource, not a waste.
The nature and origin of combined sewer overflow (CSO)
c
ombined sewers carry both
sanitary waste and storm-
water drainage.
Combined sewer overflows
are a major source of pollution
to streams, rivers and lakes in
most older cities, Ironically, they
are also a heritage of societys
early efforts to reduce pollution
In the 19th century, running
water and indoor toilets were
introduced to cities before sewage
treatment plants.
At that point in time, sanitary
waste was piped from buildings
to the existing drainage system,
a network of ponds and streams,
augmented by gutters, pipes
and ditches, which carried both
stormwater and sanitary waste
down to river, lake or ocean. So,
when the first sewers were built
to reduce pollution by piping
sewage to treatment plants, they
were attached to a system with
mixed sanitary waste and storm-
water throughout, They were,
de facto, combined sewers.
Overflow devices (see below)
were necessary to prevent the
new, enclosed system from back-
ing up during wet weather,
sewers fell into disfavour, being
replaced by separate systems
f or sani t ary wast e and st orm-
wat er. However, many remai n i n
t he Ci t y of Toront o.
How a combined sewer
overflow works
In this simplified illustration,
the combined sewer line is
After World War II, combined blocked by a low weir, or dam,
Combi ned Sewer l i ne
Combi ned Sewer Overf l ow
. - .
St ream (l ake) /
I
Int ercept or Sewer l i ne t o Treat ment Pl ant I
SAFE SEWAGE NEWS, SUMMER 1995 I 7
T H E T U N N E L
How to solve the CSO problem
A pre-emptive program to clean up the Western and Eastern Beaches
T
HE PROBLEM is caused by an overloaded
interceptor sewer. The Mid-Toronto
Interceptor (MT I) is always full of
sewage and solids being pumped from the
Humber Plant to Ashbridges Bay, and cant
accommodate the large wet weather flow from
the combined sewers located to its north.
Rainfall causes the MTI t o over flow in t o t h e
ot h er in t er cept or s , wh ich in turn overflow and
spill raw sewage into the Western Beaches and
harbour areas. At the end of the MTI, over flow
surges into the Ashbridges Bay plant, frequently
causing bypasses which discharge vast amounts
of raw sewage into recreational waters on the
East Side of the city also (see box).
A pr e-empt ive st r at egy
To stop overflows from the MTI would require
a twofold strategy:
I) Rcmoval of growing tonnages of Humber
sludges from the MTI . Instead, a beneficial use
program to take away dewatered sludges from
the dewatering site previously used to truck
Humber sludges to the Brock West landfill.
2) Reduce volumes in combined sewers north
-- of the MTI. Use mandatory water meters, low-
flow toilet installations, and a downspout dis-
connection and rain barrel program. If done
north of High Park, Grenadier Pond would
also be cleaned.
Pre-emptive planning would allow a
variety of new initiatives to kick in. For
instance, separating the cso system from
8 I SAFE SEWAGE N EWS, S U M M ER 1995
T H E T U N N E L
A stormwater/CSO system at ground level is much
cheaper than one 180 ft. below. Here are some alterna-
tives to the Tunnel, to help cleanup the Western Beaches,
Sewer Separation. The City of Toronto has already
separated 70% of its combined sewers.
Downspout disconnection. A house-by-house program
would reduce overflow volume.
Exfiltration. In Etobico/re, Orrf,, exfiltration (porous pipes)
is returning groundwater locally, reducing CSO.
Enhanced maintenance. Ottawa-Carleton has cut CSO
by 25% by focusing on repairs and leaks, cleaning and
inspections, and lowering some sewer levels,
Swirl concentrators. These use the hydraulic energy
of stormwater centrifugally, to separate pollution. Big or
small, installed anywhere in the system, No moving parts,
Brampton, Ont. and Edmonton, Alberta: Stormceptor
units remove solids, oil and grease from parking lots,
service centres, commercial/industrial sites and street
allowances. Located at site, Columbus, Georgia uses H.I.L.
Stormings to treat discharges to the Chattahoochee
River, at savings of 40% over older methods, Scarborough,
Oflt. IS testing a Vortex Separator to spin out solids coated
with pollutants.
Daylighting. Most of Torontos streams and creeks have
been built into sewers, Daylighting would bring them
back to the surface, removing their flow from the system.
In Toronto, architects Brown& Storey propose daylighting
Garrison Creek, and landscaping it into an attractive
system of ponds, wetlands, parks, and waterways.
One big fix, like the Tunnel, is not possible, As one
engineer put it, Many improvements can be made to
urban drainage at only modest cost. Once we abandon
the thought that any problem can only be solved by pro-
viding a 100% solution, then interim steps can be taken.
M. Mansfield, P. Eng., Stormwater Management, Envi-
ronmental Science and Engineering, Nov. 1993.
------ - -----------------------
Don } m k s t h e n ext
S a f e S ewa ge Nws
S UBS CR I BE NO W
.L@ Sewgc NeruJ is pu blis h ed by the Pu blic Commit t ee
for Safe Sewage Treatment in Metropolitan Toronto,
P.O. Box 833, 22$3-B Queen St. Fast, Toronto, Onrario,
Canada M4E I G3. Tel. (416) 698-6680. Editor/Co-Chair:
K. Shinn; Co-Chair & Treasurer: D. Kyles; Secretary:
D. Done; Esecutive Commitcee Assistants: M. Bryden,
Mary Arm Atell, I? Lush, J. Shakky.
sam: .%@ .%wagc Nrws is free to members. Tbe annual
membership fee for individuals and citizen groups is $ro.
Sub5cripti0n rates for others: $20 per annom for gov-
ernment agencies, $mo for businesses and professionals.
In U.S.A. and Mexico, add $6.00; in all other countries,
add $11.00. All payments in Canadian funds.
NAME
ADDRSSS
CITV
PROV, POSTAL
CODF.
Make chque payable to: Safe Sewage, P.O. Box 833,
22$$-B Queen k &at, Toronto, Ont., (hnada WE 1G3.
I
1
1
T H E T U N N E L
The public responds
A Natural S ystems Group and a Clean Water Coalition have formed
in opposition to the City of Toronto Western Tunnel mega-project
F
ORGED FROM t h e ma n
y
groups and indi-
viduals opposed to the City of Toronto
Western Tunnel, a Clean Water Coalition
and a Natural Systems Group are meeting and
accomplishing what the City of Toronto failed
[o do: I) establish collaborative public involve-
ment and 2) propose and discuss alternatives
to the tunnel.
The Natural Systems Group, headed b
y
John Sewell, is a hands-on, projects-up plan-
ning group. A Natural Systems Conference
was held on June 16 and 17 at the Old Swansea
Town Hal l , and an i mpr essi ve at t endance of
Envi r onme nt a l Engi ne e r s , Muni c i pa l Engi -
neers, Provincial Officials, Landscape Archi-
tects, John Todd-Living Machine Technology
supporters, Urban Water Restoration groups
such as Garrison Creek Community Group,
and many informed members of the public
met and discussed their views. A conference
report is in the works.
A Cl ean Wat er Coal i t i on , headed b
y
members of the Green Coalition and Safe
Sewage, is working on the missing policy
directives for water related projects. Although
every level of government agrees it would be
good to have policy on stormwater and com-
bined sewer overflow, there isnt any, with
the exception of a Federal-Provincial outline
called Policy A1.3, for planning on a watershed
and subwatershed basis.
Please help us develop a new strategy: study
the ideas below and write your comments to
Safe Sewage or E-mail: ssewage@web.apc. org.
LEADERSHIP
& CHANGE
City of Scarborough GTA Task Force Submission
Its Time for Change...
Implement a Fair Taxation System
Reduce the Cost of Government
through Structural Reform
Enhance Governments Ability to Meet
the Needs of Our Customers
Scarboroughs Vision
September 1995
Frank Faubert
Mayor
CITY OF SCARBOROUGH
150 Borough Drive
Scarborough, Ontario
Canada M1P 4N7
Tel: (416)396-7222
Fax: (416) 396-4286
MESSAGE FROM THE MAYOR
On behalf of Scarborough City Council
and the citizens of
Scarborough, I am pleased to present our vision on the future of
the Greater Toronto Area (GTA).
The residents of the City of Scarborough have made it clear that
their priorities are less taxes,
less duplication and more
effective local government.
Therefore, tax reform, amalgamation,
disentanglement, and the elimination of red tape must be the
foundation of any plan to restructure the GTA.
Our proposal contains a number of recommendations that relate to
the GTA in its entirety.
Existing inequities give neighboring
municipalities an immense advantage,
and must be addressed as part
of any restructuring of the GTA.
However, we also believe that
each region,
particularly Metro,
must put its own house in order
before embarking upon a
re-alignment of
boundaries
and
responsibilities across the GTA.
The failure to do so will inhibit
our ability to create the type of structure,
partnerships and
responsible government that will address the future needs of all
residents in the Greater-Toronto Area.
Scarborough supports the process and the timeframe for change. The
time for discussion
has ended.
The time for action is upon us.
Frank Faubert
Mayor, City of
Scarborough
The City of Scarboroughs Council and staff have completed a lengthy
strategic process through which we examined the issues, trends and op-
portunities facing Scarborough and the Greater Toronto Area (GTA). Our
process focused on the future and where we want the City and the GTA to
be in that future.
The objective of this submission is to present to the GTA Task Force and
the Province of Ontario a well-reasoned proposal to
address the issues facing the GTA over the long
term - a proposal based on the good of
r
the whole.
Brock
The Greater Toronto Area
Now is the Time for Change...
B The vitality of the entire GTA is being threatened by inequities and
inefficiencies in finance and government.
B Strong and decisive leadership is required - Now! Scarborough sup-
ports the mandate of the Task Force and the intent of the provincial
government to act to make major changes to taxation, assessment,
and governance in the GTA.
The Inequitities In Our Taxation System Must Be
Addressed!
The first priority is to deal with finances - to reform the assessment and
taxation system.
Property taxes are meant to be related to properly value. Thats a simple
idea that the average person can understand and support. But thats not
the way it works today.
Similar houses in different parts of the GTA are assessed using dra-
matically different factoring mechanisms to arrive at the final assess-
ment value, so some have a lower assessment value and thus pay
dramatically different property taxes.
Owners of very expensive houses in some areas have a lower assess-
ment value and thus pay less property tax than owners of modest
houses in other areas.
Businesses can save over 50%0 in property taxes by simply moving
across the street.
Businesses in Metro Toronto pay a much higher share of the total
property tax burden than businesses outside Metro.
Throughout the region, business pays a higher portion of its property
value in taxes than residential property.
inequities are exacerbated by inequities in the provincial grant sys-
tem.
The very economic and social viability of the region is threatened.
The principles of fair taxation demand a change to the existing assess-
ment and property tax system.
The Cost of Government Must Come Down!
Dealing with finances also means dealing with the overall cost of govern-
ment, including its structures, and its agencies, boards, and commissions.
The inequities of how we collect the taxes to provide the vital municipal
services should not disguise the fact that when you add it all up, Govern-
ments are spending too much. We in Scarborough are very proud of our
record but our taxpayers are still telling us that governments are still spend-
ing too much!
The cost must come down...
By rationalization,
By elimination and consolidation.
By streamlining and disentangling all services, including education and
services delivered by special purpose bodies.
By freeing up municipalities from the restrictions of the Municipal Act
Principles & Trends
Any changes that are made should recognize existing trends and the fol-
lowing important principles.
Healthy Region
Our future prosperity and well-being will be based on a single regional
economy and not one that is divided up into smaller parts based on mu-
nicipal political boundaries. Any changes we make have to support a strong
GTA economy. One of the keys to a strong GTA economy is the regional
infrastructure on which it is based - roads and highways, transit, telecom-
munications, water, sewers, waste disposal.
Growth
The GTA will continue to grow:
B another 2 million people and 1.5 million jobs by 2021.
B most of the growth will be in the areas outside Metro.
Community and Neighbourhood
Citizens belong to communities that reach across the whole of the GTA
but their neighbourhood and its local services are still a cornerstone of
their lives.
Financial Constraints
Governments will have less money to spend on services. Provincial grants
to municipalities will be reduced, and municipalities will have to provide
some of the services now provided by provincial and federal governments.
Role of Government
Governments must ensure equal access to a basic quality of life for ail
citizens, and manage our common social, economic and physical envi-
ronment Governments should act more as catalysts or facilitators for
change than as implementors. They should define problems and put to-
gether the resources necessary to address those problems.
Qual i t y vs. Efficiency
The drive for greater efficiency and cost-cutting by governments has to be
balanced against the ability to provide high quality services that are sen-
sitive to local needs and recognize variations in needs, tastes and desires.
Accountability
Governments must be accountable to their citizens and taxpayers. Direct
election to Metro Council and the myriad special purpose bodies in the
GTA diffuse accountability for spending property taxes.
Ex i st i ng t r ends and
i mpor t ant pr i nc i pl es:
Any c hanges made have t o
suppor t a st r ong GTA
ec onomy
Nei ghbor hoods ar e st i l l a
c or ner st one of our l i ves
Gr eat er ef f i c i enc y and
c ost -c ut t i ng must be
bal anc ed agai nst qual i t y of
ser vi c e
Gover nment must be
ac c ount abl e
Munc i pal gover nment %
st r engt h i s i t s ac c essi bi l i t y
t o c i t i zens
Loc al gover nment s ar e k ey
bui l di ng bl oc k s
Accessibility
The great strength of municipal government is that it is accessible to citi-
zens - so they can have their say about the types of services they want and
are willing to pay for.
Funding
Funding sources for government services must be:
B adequate to meet the costs.
B stable to support long-term planning and capital investment.
B paid for by the beneficiaries of the service.
Local Government
Local Governments are the key building blocks for delivering local serv-
ices - efficient, accessible, accountable and responsive to local needs.
CONCLUSI ON
Fiscal reform is the first priority!
The property tax system is the primary vehicle for financing the vital local
services that we provide. But, it has broken down. It is not fair or equitable.
It must be fixed. This will require:
B taxation and assessment reform
B eliminating the business occupancy tax
B reducing the business tax differential
B equalizing provincial grants
Government must be simple, understandable,
efficient and accountable.
accessible, responsive,
Changes in the GTA must strike a balance between the goal of supporting
a healthy region, and the goal of supporting healthy neighbourhoods and
local communities. This must include:
retaining and restructuring the Metro/Regional level
creating a collaborative GTA-wide federation of Regions and Cities
disentangling and restructuring service delivery
rationalizing Special Purpose bodies
Implement A Fair Taxation System
Assessment and fiscal reform is the first priority!
The unfairness in the present property tax system in the GTA arises be-
cause:
B
B
B
1.
Metros assessed values are based on market values of the 1940s.
Since then residential property values in Metro have increased at a
greater rate than commercial and industrial values. Assessed values
in other parts of the GTA are based on a patchwork quilt of more
recent market values, so they dont have such a large built-in histori-
cal distortion.
Provincial grants are distributed inequitably within the GTA, with the
result that property taxes in Metro pay for a higher proportion of the
cost of some services. For example, the Province pays 40% of munici-
pal public health costs in Metro, but 75% elsewhere in the Province.
Greater concentrations of social need in Metro lead to higher de-
mands for some services. Property taxes in Metro bear a larger share
of these social costs (e.g., welfare, child care) than is the case in other
parts of the GTA
Implement a Section 58 Re-assessment across the GTA
1.1
1.2
By June 1996, the Province should initiate an impact study under
Section 58 of the Assessment Act for a re-assessment within each
class of property across the GTA. Scarborough Council believes
that Market Value remains the best assessment system, and as
such, remains our preferred assessment method.
The assessment practices should be changed to eliminate neigh-
bourhood and/or vicinity factors, different categories within a class,
and to make all assessment information public.
1.3 In order to mitigate the impact of the re-assessment, it should be
phased in over a 5-year period beginning January 1998.
2. Combine the Business Occupancy Tax with the Non-Residen-
tial Realty Tax
2.1 The Province should conduct a full review of the impacts of elimi-
nating the Business Occupancy Tax and combining the business
and non-residential property taxes as the base for the Section 58
reassessment
3. Reduce the Business Tax Differential
3.1
3.2
In conjunction with Recommendation 2.1 above, the Province
should review the business tax differential and consider increas-
ing the residential mill rate factor (the ratio of residential mill rate
to non-residential mill rate) by a legislated annual fixed amount
over the 5-year implementation period, in order to address the
taxation differentials between classes of property. The change in
the differential should be based on the targeted cost savings from
rationalizing, eliminating duplication, and restructuring service
responsibilities which are proposed below. Recommendation 2.1
must be implemented before Recommendation 3.1.
Municipalities should not have the flexibility to adjust the resi-
dential mill rate factor. Property taxes should not be used as an
instrument of inter-municipal competition for business within the
GTA.
4. Equalize Provincial Grants
4.1 By March 31, 1997 the Province should review all Provincial op-
erating and capital grants, including education grants, and es-
tablish fair and equitable distribution criteria which take into
account assessment differences between municipalities.
5. A mandatory review of Assessment to ensure ongoing fairness
and equity
5.1 The Province should update the base year for the assessment
every 5 years, and review the resulting residential mill rate factor.
The continuing goal of this review should be to keep commercial
property taxes throughout the GTA competitive with other regional
economies.
Reduce the Cost of Government By
Rationalizing Service Responsibilities
Taxes are too high. We are over-governed, and the different levels of gov-
ernment in the GTA often provide overlapping services. We must find ways
to cut the costs of government.
The system of government in the GTA has become too complicated. Too
much money is being spent on political, administrative and bureaucratic
systems and processes. Ultimately, bringing taxes down may involve cut-
ting services to the taxpayers, but first we must make sure we eliminate
duplication and streamline the effective delivery of services and decision-
making.
Service provision should be allocated to one level of government only on
the following basis:
B the level able to provide the service more efficiently and effectively...
...should provide the service
B the level best able to respond to the needs of the customer...
...should provide the service
6. Retain Metro in a restructured format
6.1
6.2
The Metro level of government should be retained in a restruc-
tured format The lines of communication and accountability be-
tween Metro and the local councils must be re-established. The
Metro/regional level is needed to deliver some services. But serv-
ice responsibilities must be disentangled and clearly delineated
between the various levels so that duplication and overlaps are
eliminated.
Eliminate the present system of direct election of Metro Council-
Iors in order to focus local tax spending accountability on fewer
politicians. Metro councillors should be appointed from local coun-
cils on a rep-by-pop basis. Local councils should make the ap-
pointments. There should be fewer Metro councillors than at
present, resulting in cost savings and more effective decision
making.
7. Disentangle service responsibilities
7.1
7.2
7.3
Disentangling means assigning responsibility for each service to
one level - either the Province, the Metro/Regional level or the
local level.
Special purpose bodies should be included in the review of serv-
ice responsibilities with the objective of assigning their service
functions to the government able to de-
liver the service most effectively
and efficiently.
Although excluded from the
erence, Education should be in-
cluded in the review of service re- _
tunities for efficiencies in spending local taxes
(over 50% of w hi c h are spent on education). The review should
consider mechanisms to allow municipalities and school boards
We ar e over -t ax ed and
over -gover ned.
El i mi nat e dupl i c at i on and
st r eaml i ne pr oc esses
Ret ai n Met r o i n a
r est r uc t ur ed f or mat .
Re-est abl i sh
c ommuni c at i on and
ac c ount abi l i t y bet w een
Met r o and t he l oc al
c ounc i l s.
Di sent angl e and del i neat e
ser vi c es r esponsi bi l i t i es
Assi gn spec i f i c
r esponsi bi l i t i es t o eac h
l evel of gover nment
I nc l ude spec i al pur pose
bodi es i n t he r evi ew of
ser vi c e r esponsi bi l i t i es
I nc l ude educ at i on i n t he
r evi ew of ser vi c e
r esponsi bi l i t i es
Revi ew Pr ovi nc i al
oper at i ons
Cl ar i f y Met r o/Regi onal
and l oc al r esponsi bi l i t i es
Cr eat e a GTA-w i de
Feder at i on f or pl anni ng
and c o-or di nat i on
pur poses
Thi s f eder at i on shoul d be
r esponsi bl e f or pl anni ng
i nf r ast r uc t ur e
The f eder at i on shoul d be
r esponsi bl e f or pr omot i ng
t he GTA
to enhance and broaden their existing arrangements for sharing
facilities and administrative functions.
Provincial responsibilities should include programs with a strong
income redistribution component, such as welfare, subsidized
child care, grants to Childrens Aid Societies, and social housing.
This will also address one of the causes of unfairness in the prop-
erty tax system. Local Municipalities should be able to supple-
ment provincial spending and delivery in these areas, if they wish.
The Province should review its operations in order to disentangle
services and reduce provincial involvement in municipal func-
tions (e.g., eliminate the need for provincial approval of munici-
pal Official Plan Amendments; eliminate provincial approval of
stormwater drainage arrangements, etc.).
The Metro/Regional level should be responsible for
Police
Transit
Water and Sewage treatment plants and Waste Disposal fa-
cilities
Major facilities (Zoo, CNE, OKeefe, Convention Centre, etc.)
Assessment
Emergency services
Fire departments should be amalgamated with ambulance
service into one emergency service to be run at the regional/
metro level.
The local level will provide all other services.
8. Create a GTA-wide Federation for Planning and Co-ordination
8.1
8.2
A GTA-wide federation of local municipalities and Metro/Regional
governments should be created for planning and co-ordination
purposes. This federation should not be another level of govern-
ment, but should have the authority to broker binding agreements
between federation members.
To recognize the integrated nature of the GTA-wide regional
economy, major infrastructure should be planned on a GTA-wide
basis, and the GTAs economy should be promoted to rest of the
world on a GTA-wide basis.
The GTA Federation should p/an and co-ordinate:
regional road system
transit
trunk sewers and sewage treatment
water mains and water treatment
major hydro facilities
public telecommunications networks
The operation and maintenance of these systems should be pro-
vided by the local municipalities and the Metro/Regional level
with appropriate GTA-wide policies, including arrangements for
funding. With the GTA-wide planning function there will be no
need for Metro/Regional level planning.
8.3 The GTA Federation should also be responsible for promoting the
GTAs economy to the rest of the world.
This federation will not deliver services (except for economic pro-
motion). It will not be another level of government. It will serve as
a GTA-wide forum for inter-municipal and inter-regional co-or-
dination and co-operation in cross-boundary service delivery. It
will have the authority to broker inter-municipal and inter-regional
agreements so that its planning function and policies will bind all
its members.
9. Legislative revisions will be needed
9.1 Revise the Municipal Act, to allow for the above changes and to
give municipalities the flexibility to provide these services effi-
ciently and to enter into partnerships with the private sector.
9.2 Revise the Fire Departments Act, the Assessment Act and other
relevant provincial legislation and regulations to give municipali-
ties greater flexibility to provide services and to respond to chang-
ing needs and the required service levels.
10. Establish targets for savings
10.1 The Province should, in consultation with the municipalities and
the Metro/Regional level, establish targets for the savings that
will result from service rationalization, and use these savings to
mitigate the impacts of changes to the finance and assessment
system.
11. Review Municipal boundaries
11.1 Review the number of local municipalities in the GTA in view of
the need to deliver local services efficiently, while keeping in mind
the objective of meeting local needs and respecting local com-
munities. Proposals to consolidate local municipalities should be
supported by their taxpayers and residents.
12. Further Review
121 Review service delivery and governance in the GTA every 10 years.
LEADERSHIP
& CHANGE
City of Scarborough GTA Task Force Submission
Its Time for Change...
Implement a Fair Taxation System
Reduce the Cost of Government
through Structural Reform
Enhance Governments Ability to Meet
the Needs of Our Customers
Scarboroughs Vision
September 1995
The City of Scarboroughs Council and staff have completed a lengthy
strategic process through which we examined the issues, trends and op-
portunities facing Scarborough and the Greater Toronto Area (GTA). The
process focused on the future and where we want the City and the GTA to
be in that future.
The objective of this submission is to present to the GTA Task Force and
the Province of Ontario a well-reasoned proposal to address the issues
facing the GTA over the long term - a proposal based on the good of the
whole, not just self-interest.
In the broadest sense, we are planning the future of the Greater Toronto
Area. To do this, we have to know what kind of region we want. We have to
take into account the major trends that will shape the region. And, we
also have to know what is wrong today. Besides offering proposals for
reform, our report also provides the Task Force and the Provincial Govern-
ment with a clear statement of the major issues and trends, a clear picture
of the kind of city and region we want to live in in the future, and the
principles upon which solutions should be based.
Report Outline
5
9
9
11
12
12
13
14
15
29
Whats Wrung Today
Change and the Future
Trends and Implications
Assertions of Principle
The Role of Government
Our Vision for Scarborough
A Healthy Region
Facing the Future
Scarboroughs Recommendations
Appendices
Whats Wrong Today?
1.
2.
3.
High Taxes
Taxes are too high. Government in the GTA costs too much. The aver-
age taxpayer will not pay more. Government must find ways to reduce
costs. Reducing costs does not mean passing them to another level of
government.
Scarborough has one of the lowest per capita spending rates of all
the municipalities in the GTA (see Appendix 1). But its property taxes
are amongst the highest in the GTA. This is partly because it chooses
to provide higher levels of service in some service areas, and because
Metro provides a higher level of service than other GTA regions for
some services such as transit. But it also results from inequities in the
assessment and provincial grants systems in the GTA
Unfair Assessment
The assessment system is unfair Assessment and taxes paid on a prop-
erty are meant to be related to the propertys market value. Since the
property market is a region-wide market, all property taxes should be
equally fair throughout the region. But thats not the way it works
today:
B Assessment, as a proportion of market value, varies within mu-
nicipalities, between municipalities, and across the region for all
property types. Some homes are assessed at less than one quar-
ter of other similarly valued homes in other parts of the region.
B Throughout the region, non-residential property and high-rise
residential property are assessed at a higher proportion of their
market value than single-family residential property.
B Within Metro, businesses pay a much higher share of the total
tax burden than businesses outside Metro.
B Businesses in Metro have a much higher effective tax rate than
businesses outside Metro.
The main reason for the heavy burden borne by business in Metro is
that Metros assessments are based on market values of the 1940s.
Since then, residential property values have increased at a greater
rate (7% per year) than non-residential property values (4-5% per
year). For example, a residential properly worth $25,000 in 1953 would
be worth $375,000 in 1993, whereas a commercial property worth
$25,000 in 1953 would be worth only $145,000 in 1993. Yet both would
be paying taxes based on their value of $25,000 in 1953. Assessments
in other parts of the GTA are based on a patchwork of more recent
values, so they dont have such a large built-in historical distortion.
The longer we go without a re-assessment, the worse the problem
will become.
Inequitable Grants
The Provincial grant and subsidy system does not treat all municipalities
equitably. Houses and businesses on the north side of Steeles have
their municipal services, and therefore their taxes, subsidized to a
significantly higher level than those on the south side of Steeles.
B Metro municipalities receive a health grant of only 40%, while the
rest of the Province receives 75% funding.
Gover nment must f i nd
w ays t o r educ e c ost s.
The assessment syst em i s
unf ai r
Assessment var i es w i t hi n
muni c i pal i t i es bet w een
muni c i pal i t i es and ac r oss
t he r egi on f or al l pr oper t y
t ypes
Met al s assessment s ar e
based on mar k et val ues of
t he 1940 s.
The l onger w e go w i t hout a
r eassessment , t he w or se
t he pr obl em w i l l bec ome.
The gr ant syst em needs a
maj or over hauL
4.
Busi nesses i n Met r o have
a muc h hi gher ef f ec t i ve
t ax r at e t han busi nesses
out si de Met r o.
The t ax gap i s c ausi ng
busi ness t o r el oc at e t o
ar eas out si de Met r o.
As mor e busi nesses move
out , t hey l eave a l ar ger t ax
bur den behi nd t o be
absor bed by f ew er
t ax payer s
Four l evel s of gover nment
-
r esul t i n dupl i c at i on of
ser vi c es, hi gher c ost s and
c onf usi on.
B Metro is the least subsidized transit authority in Ontario.
B Metros grant is comparatively lower than the rest of the GTA for
ambulance services.
B Grants for education are virtually non-existent in Metro.
B Metro receives 500/o provincial funding for infrastructure projects,
while the other regions receive more.
Clearly, the grant system needs a major overhaul, so that it will meet
real needs fairly and equitably throughout the region, and in particu-
lar not place an unfair burden on local property taxes to meet service
needs.
The Tax Gap
The Tax Gap is driving businesses out of Metro. Businesses in Metro
have a much higher effective tax rate than businesses outside Metro
(see Appendix 2). For example, a good quality industrial building in
Scarborough pays about $2.00 per sq. ft. in taxes, which is over 80%
higher than the $1.10 paid by an equivalent building in Markham. The
differential between commercial buildings is even greater.
The tax gap is caused by four main factors:
B the inequities in the assessment system (see above);
B the inequities in the provincial grant system (see above);
B higher levels of service in Metro (see above); and
B greater Concentrations of social need lead to higher demands for
some social services. Property taxes in Metro bear a larger share
of these social costs (e.g., welfare, subsidized child care) than is
the case in other parts of the GTA For example, Metro has over
75% of the welfare cases in the GTA, but only about 54% of the
population, and the Province requires that the Metro/regional level
of government pay 20% of welfare costs.
The tax gap is causing business to relocate to areas outside Metro
and reinforcing the movement of jobs and economic opportunities
out of Metro. We lose revenues, job opportunities, multiplier busi-
nesses, and broader business contribution to community life (spon-
soring little league teams, joining business clubs, etc.).
The tax gap creates a vicious circle. As more and more businesses
move out, they leave a larger tax burden behind to be absorbed by
fewer and fewer taxpayers (Appendix 3). Resulting tax increases or
service cuts cause more businesses and mobile middle class taxpay-
ers to move out of Metro..... resulting in further tax increases or service
cuts....... and so on.
Service Duplication
Four/eve/s of government provide services in the region- Federal, Pro-
vincial, Regional, Local Municipal. This results in duplication of serv-
ices and higher costs, and confusion over which level of government
is responsible for what services [see Appendix 4). Service responsi-
bility must be rationalized and more clearly delineated between the
three levels subject to change through this process - Provincial, Re-
gional, Municipal. Eliminating overlaps will cut costs and reduce taxes.
Leadership and Change: City of Scarborough GTA Task Force Submission o September 1995
6. Special Purpose Bodies
7.
Duplication is compounded by the large number of special purpose
bodies, agencies, boards and commissions - conservation authorities,
utility commissions, police, library, health boards, transit authorities,
and so on.
A new structure of service delivery must address this issue.
B It could assign their responsibilities to an elected level of govern-
ment.
B It could make them more accountable to one elected level of gov-
ernment and therefore to the taxpayers.
The GTA Task Forces Terms of Reference specifically excluded edu-
cation from the review. Education spending accounts for 560/o of the
property tax dollar in Metro, and an even higher proportion outside
Metro. Because they are responsible for spending a majority of the
property tax bill, the mandate and the operations of the Boards of
Education should be examined along with those of other special pur-
pose bodies.
Major cost savings will be available if school and municipal facilities
and services can be shared. The boards of education and the local
municipalities both operate parks/playgrounds, libraries, gymnasiums,
swimming pools, meeting rooms, recreational and adult education
programs, etc. They both have staff for functions such as maintenance,
personnel, information systems, finance, and security.
Paternalistic Province
The present Provincial-Municipal relationship is too paternalistic Mu-
nicipalities are constrained by the way in which provincial legislation
proscribes, prescribes, and limits their ability and flexibility to address
many issues and concerns. A new approach to governance in the
GTA must give municipalities broader permissive powers to address
local and regional issues and services.
There is far too much direct provincial involvement in the regulation
and review of regional and municipal activities and initiatives. Exam-
ples include provincial involvement in stormwater management and
provincial approval of municipal official plans and official plan amend-
ments. Municipalities in the GTA have the technical and economic
sophistication to be able to handle these kinds of activities. Provincial
involvement should be limited to ensuring that clearly stated provin-
cial policies are being implemented. Provincial withdrawal from these
kinds of activities will not only recognize the regional or local respon-
sibility for them, but also result in cost savings for the provincial gov-
ernment and the municipalities.
8. Lack of GTA Co-ordination
The present regional government arrangement in the GTA is at odds
with economic, social and ecological reality in the GTA. The regional
boundaries cross watershed boundaries and divide up the Toronto
social and economic region. Oakville, Brampton, Richmond Hill,
Scarborough and Ajax are all part of the Toronto social and economic
region, yet they are all in different regional municipalities.
The regional governments of today are not setup to provide co-ordi-
nation across this GTA-wide social and economic region, or to pro-
mote a healthy region.
9.
10.
11.
B Major regional infrastructure crosses Regional Government
boundaries
B Promotion of the regional economy is lacking
In lieu of a single effective GTA agency, the Province has provided the
regional planning and co-ordinating function:
B It plans, funds, even builds and operates, major infrastructure
(highways, transit lines, water, sewers, waste disposal, etc.]. Lately,
the areas outside Metro have been the main beneficiaries of this
planning.
B It has undertaken major regional environmental initiatives (Wa-
terfront Trust, Rouge Park).
Direct Election
Within Metro Toronto, direct election to Metro Council compounded
the confusion about whos responsible for what Without clear deline-
ation of service responsibility, the new council began to get involved
in local issues. The regional Government began to lose its regional
co-ordination focus. This resulted in confusion for the public, disrup-
tion for local municipal councils, and wasteful overlap of government
activity. This confusion was partly responsible for the City of Torontos
voters favouring by 60% to eliminate the Metro level of Government.
Direct election, ostensibly implemented to enhance political account-
ability, has merely diffused and confused it
Inefficient Small Municipalities
The present local municipalities in the GTA range in size from over
600,000 to under 20,000. Efficiencies and cost savings would result
from consolidation of some of the smaller municipalities to form larger
units. However, this drive for lower costs must be balanced against
the principle of accommodating and recognizing local needs and lo-
cal history.
Vulnerable Economy
The Toronto regions economy was hit harder than most other
parts of Canada by the recession of the early 1990s. This reces-
sion showed how the prosperity of the region may be at risk It sug-
gests that in the future we must be in a better position to support a
strong and prosperous regional economy, which is competitive on the
world stage.
The recession was particularly severe on Metros economy. It showed
that the old model of growth, whereby the core subsidized the growth
of the suburbs, may no longer be appropriate.
Trends & Implications
The GTA Task Force recommendations and provincial government deci-
sions must acknowledge and accommodate the following major trends:
1. Population growth
The GTAs population will grow from 4.2 million today to 6.6 mil-
Iion in 2021 (2.4 million more people, a 57% increase).
Most of the growth will be in the areas outside of Metro, unless
there is a concerted strategy of directing new infrastructure and
growth to Metro rather than the other areas of the GTA (building
Highway 407 and canceling subway construction are not con-
sistent with such a policy).
Immigration will continue to be a major component of growth,
with origins from around the globe. This will bring skilled immi-
grants seeking opportunities, and refugees fleeing persecution,
war, and famine.
Baby Boomers will be less important in the age structure of the
population. Age-related needs will be more evenly spread across
the population.
2. Community
Since 1945, community has become less-and-less neighbourhood-
based, and more-and-more interest-based. Communities of interest
spread across large areas - throughout municipalities, across mu-
nicipal boundaries and throughout the whole region.
This process will continue, supported by auto-based mobility, popu-
lation growth outside Metro, innovations in computer-based commu-
nication, and the immigrant-driven diversity of ethnic and religious
groups in the region.
Although people will be less-and-less committed to neighborhoods
as communities, they will still live in neighborhoods and require
basic services in their neighbourhoods. The quality of the local resi-
dential environment will still be a cornerstone of their lives.
3. Financial Constraints
The total revenue available to all governments for expenditure on serv-
ices will shrink as a result of:
B The increasing cost of servicing and retiring the public debt.
B Taxpayer dissatisfaction with high taxes.
B Likely downloading of federal and provincial services to mu-
nicipalities.
Maintaining or even preventing drastic declines in the quality and
quantity of services will require greater efficiency in production and
delivery, and better management of our resources.
By 2021:
The GTAs popul at i on w i l l
r eac h 6.6 mi l l i on.
Most of t he growth w i l l be
out si de of Met r o i f t oday%
t r ends c ont i nue.
I mmi gr at i on w i l l c ont i nue
t o be a maj or c omponent
of gr ow t h.
Age-r el at ed needs w i l l be
mor e evenl y spr ead ac r oss
t he popul at i on.
Peopl e w i l l st i l l l i ve i n
nei ghbour hoods and
r equi r e basi c ser vi c es i n
t hei r nei ghbour hoods.
The t ot al r evenue avai l abl e
t o al I gover nment s f or
ex pendi t ur e on ser vi c es
w i l l shr i nk .
Leadership and Change: City of Scarborough GTA Task Force Submission September 1995
4. The Economy
B The globalization of the world economy will continue, resulting
in major adjustments in the GTAs economy. Its strength has been
based on its role as the core of a trade-protected Canadian na-
tional economy. As trade barriers comedown, its economic health
will depend on its ability to be a competitive regional economy in
the global economy. A skilled and diverse Iabour force and mod-
ern infrastructure will be essential foundations of a competitive
economy.
B Employment is expected to grow from 2.3 jobs to 3.9 million jobs
between 1991 and 2021. It is estimated that 1.3 million of the 1.6
million new jobs will be outside of Metro.
5. Distribution in the Region
B By 2021, most of the population and jobs will be outside Metro.
Jobs 1991
6 0 % 40%
2021
43% 57%
Population 1991
54% 46%
2021
41% 59%
hip and
east in the short run, social need will be concentrated in Metro.
In 1991, unemployment rates were higher in the 6 Metro mu-
nicipalities than in all the other 24 GTA municipalities except
Oshawa.
In 1990, 19% of Metros population lived in low income fami-
lies, compared with 8% in the rest of the GTA. The levels of
low income were higher in each Metro municipality than in
all the other 24 GTA municipalities.
Change: City of Scarborough GTA Task Force Submission * September 1995
Assertions of Principle
The GTA Task Force recommendations and Provincial decisions should be
guided by the following principles and guidelines:
1.
2.
3.
4.
5.
6.
7.
8.
Government should provide services and manage its operations effi-
ciently.
Government services, regulations and policies should be sensitive to
local needs and recognize variations in needs, tastes, and desires.
Governments must be accountable to their citizens.
Municipal Government in the GTA must offer citizens immediate and
direct access to elected officials and municipal administration.
Governance in the GTA must meet needs for GTA-wide planning and
co-ordination in the provision of infrastructure.
Any changes to the way the GTA is governed must relate to practical
solutions for the issues and problems. They must be solutions that will
be broadly accepted by the residents of the GTA and by the Provincial
government.
Any changes to the way the GTA is governed must recognize that the
GTA is the most important region in Ontario. Its governance must be a
vehicle which will support the social and economic goals and policies
of the Provincial Government.
Funding sources for government services, programs and activities must
Adequate to meet the costs.
Stable, to support long-term service planning and capital invest-
ment.
Paid for by all the beneficiaries and consumers of the service,
roughly according to levels of consumption, and recognizing both
direct and indirect consumers.
Direct consumers actually use the service (have their garbage
picked up, visit the OKeefe Centre, get a welfare cheque or hous-
ing subsidy].
Indirect consumers benefit through the provision of service to di-
rect consumers (recreation programs for youth keep them off
the streets, fire fighters protect the house next door to a house
on fire, transit reduces congestion for road users).
Gover nment pr i nc i pl es and
gui del i nes:
Pr ovi de ser vi c es and
manage i t s oper at i ons
ef f i c i ent l y.
Be sensi t i ve t o l oc al
needs.
Be ac c ount abl e t o t he
c i t i zens.
Of f er c i t i zens i mmedi at e
and di r ec t ac c ess.
Meet needs f or GTA-w i de
i nf r ast r uc t ur e pl anni ng and
c o-or di nat i on.
Rec ogni ze t hat t he GTA i s
t he most i mpor t ant r egi on
i n Ont ar i o.
Ensur e t hat f undi ng
sour c es ar e adequat e,
st abl e and pai d f or by al l
t he benef i c i ar i es and
c onsumer s of t he ser vi c e.
Leadership and Change: City of Scarborough GTA Task Force Submission September 1995
We bel i eve t hat
gover nment shoul d:
Ensur e equal ac c ess t o a
basi c qual i t y of l i f e f or al l
c i t i zens.
Manage " t he c ommons .
Ac t mor e as a c al al yst or
f ac i l i t at or f or c hange t han
as i mpl ement or
Our Vi si on For
Sc ar bor ough:
Cl ean, gr een, and saf e.
A c i t y of nei ghbor hoods
A heal t hy l oc al ec onomy
Lean, ef f i c i ent , f l ex i bl e
l oc al gover nment
A gover nment w hi c h i s
r esponsi ve t o t he evol vi ng
needs of i t s c i t i zens.
The Role of Government
Proposals to change the way the GTA is governed must be based on an
understanding of what government is for - what its role should be. We
believe that government should:
1.
2.
3.
Ensure equal access to a basic quality of life for all citizens.
B By providing services.
B By setting regulations and standards, and enforcing them.
Manage the commons - the economic, social and physical environ-
ments that are created by us all, but owned by none of us. We are all
worse off if these commons are not well managed.
Act more as a catalyst or facilitator for change than as implementor. It
should define problems and put together the resources necessary to
address those problems.
In this role, government makes choices about what is good or bad, right
or wrong, too much or not enough, individual responsibility or collective
responsibility, who benefits and who pays. These are political choices, not
administrative or technical decisions.
Local Governments are key building blocks for delivering local services -
efficient, accessible, accountable, and responsive to local needs.
Our Vision For Scarborough
We have a vision for Scarborough. It builds on our strengths today.
It will be clean, green, and safe.
It will be a city of neighbourhoods. Most of them have been built
already. They will continue to provide a quality environment for rais-
ing families.
It will have a healthy local economy, providing jobs for the citys resi-
dents and playing an active part in community life.
It will have a lean, efficient, flexible local government.
It will have a government which is responsive to the evolving needs of
its citizens. as less than 40% of the people who will be Iiving in
Scarborough in 2010, live here today.
The GTA Task Forces recommendations and those
of the Provincial government should recognize this
vision and allow for its realization.
Leadership and Change: City of Scarborough GTA Task Force Submission * September 1995
A Healthy Region
This vision for Scarborough will only be realized if it is part of a healthy
region. In order to achieve a healthy region, we need the following:
1. A healthy economy will be a competitive regional economy on the
world stage. It is based on:
a well-educated, trained, flexible Iabour force; and
infrastructure to support business activities: water, sewage, gas,
hydro, highways, roads, telecommunications, etc.
The economy of the GTA is a single integrated regional economy whose
benefits should be shared by the whole region.
2. A healthy population and social environment based on:
infrastructure to deliver clean water and remove waste;
emergency and safety services (fire, ambulance, police);
employment in well-paying jobs; and
opportunities for leisure, education, and healthy lifestyles.
3. A healthy natural environment based on the recognition that environ-
mental systems do not recognize political boundaries.
4. In a healthy region, all communities share the responsibility of ensur-
ing that all communities are healthy communities. In particular, a
healthy Centre City or regional core is the responsibility of the whole
region. An unhealthy core will act like a cancer which will eventually
weaken the whole region.
Municipalities within the GTA must help each other for the benefit of
the whole. This means joining together to promote the GTAs economy
to rest of the world, rather than competing against each other for
company re-locations. We will prosper or stagnate as a region, not as
a group of separate communities; but healthy local communities are
the building blocks of a healthy region.
We need:
A w el l -educ at ed t r ai ned,
f l ex i bl e I abour f or c e.
I nf r ast r uc t ur e t o suppor t
busi ness ac t i vi t i es.
I nf r ast r uc t ur e t o del i ver
c l ean w at er and r emove
w ast e.
Emer genc y and saf et y
ser vi c es.
Empl oyment i n w el l -payi ng
j obs.
Oppor t uni t i es f or l ei sur e,
educ at i on, and heal t hy
l i f est yl es.
Leadership and Change: City of Scarborough GTA Task Force Submission September 1995
Facing The Future
The first priority is to deal with the tax gap. But there is no simple solution.
It is not possible to simply lower the tax rate for business and think the
assessment problems will be fixed. This would transfer an unacceptable
burden onto the residential taxpayers. In order to reduce the non-resi-
dential property tax, while at the same time creating a system that is pal-
atable to voters, the overall property tax bill must be reduced And this
means reducing the cost of government.
Taxpayers are over taxed already. Simply shifting the property tax burden
onto a sales tax, gasoline tax, income tax, or some other tax is not a satis-
factory alternative to making the necessary cuts to the cost of government
to maintain property taxes at an affordable level. Other forms of taxation
may on the surface seem more attractive, but any movement to new taxes
would move us away from the close connection between property-related
services and property taxes. Significant duplications exist within govern-
ment, and major savings can be found by eliminating these duplications.
The cost savings can be used to reduce the Provincial deficit [through
lower grants) and to reduce the overall property tax bill (through expendi-
ture reductions). Changes in how services are provided must go hand in
hand with changes to the assessment system.
Assessment and Tax Reform is the First Priority!
The property tax system is the primary vehicle for financing the vital local
services that we provide. But, it has broken down. It is not fair or equitable.
It must be fixed. This will require:
taxation and assessment reform
B eliminating the business occupancy tax
reducing the business tax differential
B equalizing provincial grants
The Cost of Government Must be Reduced Through Structural Re-
form
Taxpayers want government to be simple, understandable, accessible, re-
sponsive and accountable.
Changes in the GTA must strike a balance between the goal of supporting
a healthy region, and the goal of supporting healthy neighbourhoods and
local communities. This must include:
B retaining and restructuring the Metro/Regional level
B creating a GTA-wide federation
B disentangling and restructuring service delivery
B rationalizing special Purpose bodies
Leadership and Change: City of Scarborough GTA Task Force submission September 1995
Summary of Recommendations:
Implement a Fair Taxation System
1. Implement a Section 58 re-assessment across the GTA.
2. Combine the Business Occupancy Tax with the Non-Residential Re-
alty Tax.
3. Reduce the business tax differential.
4. Equalize provincial grants.
5. A mandatory review of assessment to ensure on-going fairness and
equity.
Reduce the Cost of Government by Rationalizing Service Responsi-
bilities
6.
7.
8.
9.
10.
11.
12.
Retain Metro in a restructured format.
Disentangle service responsibilities
Create a GTA-wide Federation for planning and co-ordination.
Legislative revisions will be needed.
Establish targets for savings.
Review municipal boundaries.
Further review every 10 years.
Leadership and Change: City of Scarborough GTA Task Force Submission September 1995
Implement a Fair Taxation System
1. Implement a Section 58 Re-assessment across the GTA.
The present assessment system needs to be fixed. We believe the so-
lution must bring fairness to assessment across the GTA, and not just
in Metro. The new system must allow residents and businesses to
easily compare property taxes between properties in different parts
of the GTA
The real issues are: what system to use, and how to transfer to this
new system with as little upheaval as possible. Obviously, an up-dated
system must establish a common base year for all property and it
must be understandable to the average taxpayer.
Assessment System
Should the new system be based on the market value of a property or
on some other measure of property value?
Scarborough prefers market value. It is understandable to taxpayers,
who tend to know what their home is worth. It is independently veri-
fiable, and it is objective. A propertys market value has been the ba-
sis used in all reassessments in Ontario since 1974, involving 84% of
the municipalities in the Province.
The Fair Tax Commission has proposed a unit value assessment,
which would be based on size of building, lot dimensions, type of
building, and rental value. The City of Toronto has proposed a modi-
fied version of this unit value method.
Through all their research into MVA, the worst thing that the Fair Tax
Commission could say about it was that it was not perfectly corre-
lated with income. And some of the Fair Tax Commission commis-
sioners had difficulties with the recommendation to go with unit value
assessment Vice-chair Neil Brooks in his Personal Comments in the
final report indicated that: it is difficult to know how this scheme
[unit assessment) would work since the details are not worked out in
the report and I do not know of any jurisdiction where it has been
used. However, it appears to have almost no advantages over fair
market assessment and has a considerable number of disadvantages.
A Unit Value Assessment system will require an impact study. It has
not been used elsewhere so there are no models to learn from. It
would likely take many years to implement Meanwhile, the inequities
would continue, and businesses would continue to flee Metro. On the
other hand, Market Value Assessment can be enacted quickly. We
need change soon. We cannot wait another 10 (or 40) years for change
to occur.
Overall, market value is still the best system.
Type of Re-Assessment (Section 58 vs. Section 63]
In a perfectly fair assessment system, all properties would be assessed
at their market value (a Section 63 re-assessment). This would likely
result in large tax increases for owners of single family houses in
Metro, especially the City of Toronto. Any assessment reform, there-
fore, must recognize this potential impact on the residential sector.
The major beneficiary of a Section 63 re-assessment would be the
Leadership and Change: City of Scarborough GTA Task Force Submission * September 1995
non-residential property owners, who would see their share of the
overall property tax burden decrease significantly right across the GTA
This large a shift in tax burden would be disruptive and unacceptable
to voters.
A Section 58 re-assessment for the region would re-assess each
property at its market value within each property class, so that the
total revenue from that class doesnt change when the new assess-
ments are used. A region-wide Section 58 would reduce much of
the unfairness in the present system. However, the business sector
will still bear a greater tax burden than its share of the market value of
property - an inequity that must also be addressed.
Assessment Practices
Many existing assessment practices and procedures appear to be ar-
bitrary. In addition, many of these practices are hidden to the public
until a property comes under appeal. Reassessment on a common
market value base will provide an opportunity to discard these prac-
tices. There will be no need, for instance, to use four size categories
to assess industrial buildings, or to use neighbourhoods as one of
the bases of the assessment of homes.
Implementation
Any change to the assessment system will mean tax increases for
some and decreases for others. To mitigate the impact of the increases
and enable taxpayers to adjust to them, changes should be phased in
over a finite and relatively short period.
Scarboroughs Position:
1.1
1.2
1.3
By June 1996, the Province should initiate an impact study under
Section 58 of the Assessment Act for a re-assessment within each
class of property across the GTA. Scarborough Council believes
that Market Value remains the best assessment system, and as
such, remains our preferred assessment method
The assessment practices should be changed to eliminate neigh-
bourhood and/or vicinity factors, different categories within a class,
and to make all assessment information public
In order to mitigate the impact of the re-assessment, it should be
phasedi n over a 5-year period beginning Jan. 1998.
2. Combine the Business Occupancy Tax with the Non-Residen-
tial Realty Tax
The Business Occupancy Tax is difficult and expensive to administer
and to collect. Combining the Business Occupancy Tax and the Non-
Residential Realty taxes would eliminate this duplication and save
money. The rate categories for Business Occupancy tax were designed
in 1904. They bear little apparent relationship to present day business
activity.
Combining the business tax with the realty tax on commercial and
industrial properties would involve decreasing the present 85% resi-
dential mill rate factor between residential and industrial-commercial
rates, so that the residential mill rate would be set at a level much
lower than 85% of the industrial-commercial mill rate. The proposed
reassessment by property class would thus be based on the total re-
alty and business tax revenue for commercial and industrial proper-
ties.
Leadership and Change: City of Scarborough GTA Task Force Submission September 1995
Scarboroughs Position:
2.1 The Province should conduct a full review of the impacts of elimi-
nating the Business Occupancy Tax, and combining the business
and non-residential property taxes as the base for the Section 58
reassessment.
3. Reduce the Business Tax Differential.
After the Section 58 re-assessment and the review of the Business
Occupancy Tax are completed, businesses will still have a higher ef-
fective tax rate than residential properties - their taxes will represent
a higher proportion of their market value. If this inequity is not ad-
dressed, businesses may leave the GTA
There must be a continuing goal of keeping industrial and commer-
cial property taxes within the GTA competitive with other regional
economies.
Scarborough has, in the past, supported the concept that residential
and non-residential taxpayers should have the same net burden after
income tax. Since businesses can write off their property tax pay-
ments against income, while homeowners cannot, non-residential
property taxes should be relatively higher than residential property
taxes. Combined with paying the Business Occupancy Tax, businesses
at present pay more in property tax. If the Business Occupancy Tax is
to disappear, a new relationship must be determined. Given the present
income tax rates, this new residential mill rate factor would be ap-
proximately 55%. This relationship should be reviewed periodically,
and changed if necessary to take into account changes in the income
tax rates.
-
We suggest a review every five years.
The Residential Mill Rate Factor
A cursory analysis indicates that after, the GTA-wide Section 58 re-
assessment is completed and after the Business Occupancy Tax is
combined with the Non-Residential Realty Tax, the residential mill
rate will be approximately 35% of the non-residential mill rate. If the
goal is 55%, there is a significant gap. This gap can be bridged by
increasing the residential mill rate factor through a legislated annual
fixed rate over the 5-year implementation period. Local municipal
councils will have the option of levying this lost revenue through mill
rate increases, or of cutting costs enough to hold, or even reduce,
residential taxes.
The savings that will occur as a result of the ending of duplication
within the municipal sector will help to offset the impact of adjusting
the residential mill rate factor. But, this can only occur after a re-
assessment has been implemented.
This proposal would gradually move non-residential properties to the
same effective tax rate as residential properties (the goal of a Section
63 re-assessment). Other municipalities proposals may cause some
properties assessment to go down under a Section 58 re-assess-
ment, and later to increase by even more under a full Section 63 re-
assessment Our methodology would avoid this type of fluctuation.
No Municipal Adjustment of the Residential Mill Rate Factor
(Variable Mill Rates)
Municipalities should not have the flexibility to adjust the residential
mill rate factor, so they can lower their non-residential tax burden.
Leadership and Change: City of Scarborough GTA Task Force Submission September 1995
Equal i ze ~vi nc i al gr ant s:
l he I ?mvi nc e shoul d
r evi ew al l pr ovi nc i al
oper at i ng and c api t al
gr ant s by Mar c h 31, 199z
and est abl i sh %ai r and
equi t abl emdi st r i but i on
c r i t er i a.
A mandat o~ r evi ew of
Assessment t o ensur e on-
goi ng t i i r ness and equi t y:
7he t i vi nc e shoul d
updat e t he base year f br
t he assessment ever y 5
year s and nw i ew t he
r esul t i ng n?si dent i al mi l l
t at e t i mt o~
This would encourage municipalities to compete against one another
for business, rather than competing with the rest of the world to bring
business to the GTA. This kind of inter-municipal competition has no
place in a co-operative Federation.
In the short-term, allowing municipalities to adjust the residential mill
rate factor may encourage less efficiency and cost control in the local
municipality, and in the longer term, they may lead to the same kinds
of business re-location decisions based solely on tax savings that we
are seeing today.
With a proper, fair Market Value assessment system in place, variable
mill rates, are by definition, not necessary. Our goal of a system that is
fair and equitable to all classes of property does not permit variable
mill rates.
Scarboroughs Position:
3.1
3.2
In conjunction with Recommendation 2.1 above, consider increas-
ing the residential mill rate factor (the ratio of residential mill rate to
non-residential mill rate) by a legislated annual fixed amount over
the 5-year implementation period, in order to address the taxation
differentials between classes of property. The change in the differ-
ential should be based on the targeted cost savings from rational-
izing, eliminating duplication, and restructuring service responsi-
bilities which are proposed below Recommendation 2.1 must be
implemented before Recommendation 3.1.
Municipalizes should not have the flexibility to adjust the residen-
tial mill rate factor. Property taxes should not be used as an instru-
ment of inter-municipal competition for business within the GTA.
4. Equalize Provincial grants.
The inequities in Provincial grants to municipalities in the GTA are
outlined earlier in this report. The Province must undertake a study of
all Provincial grants with the goal of establishing fair and equitable
distribution criteria for grants, after taking into account differences in
local assessment. This review should include all grants, and should
not be limited to education, health, ambulance, and transit grants.
The goal is to end the present significant tax subsidy caused by the
grants, and not to undermine the Provinces role in ensuring that mini-
mum standards of service can be delivered by municipalities. The grant
system should not result in property taxes funding an unreasonably
higher share of service in some municipalities.
Scarboroughs Position:
4.1 By March 31, 1997, the Province should review all Provincial oper-
ating and capital grants, including education grants, and establish
fair and equitable distribution criteria which take into account
assessment differences between municipalties.
5. A mandatory review of Assessment to ensure on-going fairness
and equity.
[n order to maintain the integrity of the assessment system, regular
re-assessments must occur at fixed intervals. We suggest 5 years. This
re-assessment could be a computer-based re-assessment employing
a sampling process, coupled with a physical re-assessment at longer
intervals. The re-assessment interval must be set in Provincial legisla-
Leadership and Change: City of Scarborough GTA Task Force Submission September 1995
tion, and not subject to change on the whim of the local or regional
council. The cost of this re-assessment would be borne by the level of
government responsible for the assessment function. This will pre-
vent municipalities from putting off the re-assessment, so the distor-
tions in Metros assessment system today will not be repeated.
As indicated earlier, the expected difference between residential and
non-residential property classes will still not be fair even after Rec-
ommendation 3 is implemented. After the first five-year period, the
residential mill rate factor will have to be reviewed and if necessary, a
schedule established to implement further changes to this factor.
Scarboroughs Position:
5.1 The Province should update the base year for the assessment every
5 years, and review the resulting residential mill rate factor. The
continuing goal of this review should be to keep commercial prop-
erty taxes throughout
economies.
the GTA competitive with other regional
Reduce the Cost of Governrnent by Rationalizing
Service Responsibilities
6. Retain Metro in a restructured format-
The regional government system, including Metro, has generally served
us well during the rapid growth of the GTA over the last 40 years. The
Metro/Regional level is still required to deliver some major services
which can be provided more efficiently and more effectively to areas
larger than the local municipalities.
Some might argue that Metros boundaries should be expanded to
take in the existing urbanized area of the GTA (with some room for
growth], and replace the five regional governments with one regional
government. This would represent a major change and require exten-
sive impact analysis and review before it could be implemented. It is
more important to effect change now, especially to rationalize service
delivery in order to support our first priority: assessment reform. It is
more practical to do this within the existing Metro/Regional struc-
ture. In the long term, however, more fundamental changes to the
structure of service delivery and governance should be explored. The
reforms we are proposing should be seen as the beginning of the
process - not the end.
For the present, however, it is important tore-establish the concept of
Metro as a co-operative federation of local municipalities, with a coun-
cil that is accountable to the local municipalities. This can be done by
eliminating the present system of directly electing Metro councillors,
and replacing it with a system of appointing local councillors to Metro
Council. The number of Metro councillors from each municipality
should reflect its population ("rep-by-pop). This also focuses account-
ability for property tax spending on fewer politicians, and on politi-
cians who are making decisions about local expenditures as well as
Metro expenditures. The size of Metro Council could also be reduced,
resulting in further cost savings.
Leadership and Change: City of Scarborough GTA Task Force Submission B September 1995
Scarboroughs Position:
Di sent angl e ser vi c e
r esponsi bi l i t i es:
Assi gn r esponsi bi l i t y f or
eac h ser vi c e t o one level.
I nc l ude spec i al pur pose
bodi es i n t he r evi ew of
ser vi c e r esponsi bi l i t i es.
I nc l ude educ at i on i n t he
r evi ew of ser vi c e
r esponsi bi l i t i es
Pr ovi nc i al r esponsi bi l i t i es
shoul d i nc l ude pr ogr ams
w i t h a st r ong i nc ome
r edi st r i but i on c omponent .
Revi ew pr ovi nc i al
oper at i ons i n or der t o
di sent angl e ser vi c es and
r educ e pr ovi nc i al
i nvol vement i n muni c i pal
f unc t i ons
Cl ar i f y Met r o/Regi onal
and l oc al r esponsi bi l i t i es
6.1
6.2
The Metro level of government should be retained, but in a restruc-
tured format The lines of communication and accountability be-
tween Metro and the local councils must be re-established. The
Metro/regional level is still needed to deliver some services. But
service responsibilities must be disentangled and clearly deline-
ated between the various levels so that duplication and overlaps
are eliminated
Eliminate the present system of direct election of Metro Council-
Iors in order to focus local tax spending accountability on fewer
politicians. Metro councillors should be appointed from local coun-
cils on a rep-by-pop basis. Local councils should make tie ap-
pointments. There should be fewer Metro councillors than at present,
resulting in cost savings.
7. Disentangle service responsibilities
Rationale for Service Allocation
The objective is to eliminate duplication in service delivery so that one
level of government clearly carries the major responsibility for the
delivery of the service. The service should be allocated to a level of
government based on the following criteria:
B the level able to provide the service more efficiently and effec-
tively should provide the service;
B the level best able to respond to the needs of the customer should
provide the service.
All services must be on the table - Provincial, regional, local, and spe-
cial purpose bodies, including education. Assigning special purpose
body responsibilities to provincial, regional or local levels will result
in administrative savings. It will also focus accountability for public
spending on fewer politicians by requiring them to weigh the com-
peting demands of many services. In the case of education, munici-
palities and school boards share recreational and community facili-
ties today. We think major savings would be available through identi-
fying further opportunities for sharing of administrative functions and
facilities.
The chart on the next page shows our proposed allocation of service
responsibilities.
Provincial Responsibilities
Social programs involving income redistribution, such as welfare, sub-
sidized child care, grants to Childrens Aid Societies, and social hous-
ing should be Provincial responsibilities. If these programs are fully
funded by the Province, municipalities with higher concentrations of
need will not have to levy higher property taxes. The concentration of
need in Metro is one of the causes of the tax gap. Social programs
should be a provincial responsibility, although local municipalities
should be able to choose to supplement provincial spending and pro-
gram delivery if they wish.
Queens Park could attack its deficit by eliminating its involvement in
the regulation and review of those activities and initiatives which mu-
nicipalities in the GTA can provide unaided as a result of their own
technical and economic sophistication. This will allow the Province to
focus its resources on other services and other areas of the Province
Leadership and Change: City of Scarborough GTA Task Force Submission September 1995
where municipalities dont have the technical resources of munici-
palities in the GTA. This would also enable municipalities to reduce
their costs. Examples could include:
B eliminating the need for provincial approval of municipal Official
Plan Amendments;
B eliminating provincial approval of stormwater drainage arrange-
ments.
Metro/Regional Responsibilities
Metro should be responsible for services which can be provided most
efficiently and effectively on a region-wide basis - especially those
services where the costs of inter-municipal co-ordination in the ab-
sence of Metro would significantly add to their cost or reduce their
quality. These services include police, transit, emergency services, and
major water and sewage treatment plants and waste disposal facili-
ties. Metro should also operate major regional scale public facilities,
such as the Zoo, the CNE, and the Convention Centre.
Local Responsibilities
All other services should be assigned to the local level. This will re-
flect the basic principles of accessibility, accountability and respon-
siveness to local needs. These services include the operation and
maintenance of all roads, sewers, water supply, parks and recreation
facilities. Community planning and economic development are key
municipal functions to ensure that neighborhoods and local com-
munities meet the needs and aspirations of their residents and busi-
nesses.
Scarboroughs Position:
7.1
7.2
7.3
7.4
7.5
Disentangling means assigning responsibility for each service to
one level - either the Province, the Metro/Regional level or the
Iocal level.
Special purpose bodies should be included in the review of service
responsibilities with the objective of assigning their service func-
tions to the government able to deliver the service most effectively
and efficiently
Although excluded from the GTA Task Force's Terms of Reference,
Education should be included in the review of service responsibili-
ties in order to find opportunities for efficiencies in spending local
taxes (over50% of which are spent on education). The review should
consider mechanisms to allow municipalities and school boards to
enhance and broaden existing arrangements for sharing facilities
and administrative functions.
Provincial responsibilities should include programs with a strong
income redistribution component, such as welfare, subsidized child
care, giants to Children's Aid Societies, and social housing. This
will also address one of the causes of unfairness in the property tax
system. Local municipalities should be able to supplement provin-
cial spending and delivery in these areas, if they wish.
The Province should review its operations in order to disentangle
services and reduce provincial involvement in municipal functions
(e.g., eliminate the need for provincial approval of municipal Offi-
cial Plan Amendments; eliminate provincial approval of stormwater
drainage arrangement.)
Leadership and Change: City of Scarborough GTA Task Force Submission September 1995
7.6 The Metro/Regional level should be responsible for
-
Police
Transit
Water and Sewage treatment plants and Waste Disposal facili-
ties
Major facilities (Zoo, CNE, OKeefe, Convention Centre, etc.)
Assessment
Emergency services - fire departments should be amalgamated
with ambulance service into one emergency service to be run
at the Metro/regional level.
7.7 The Iocal level will provide all other services.
8. Create a GTA-wide Federation for planning and co-ordination.
In order to meet the objective of supporting a healthy region (economy,
society, ecosystem), a mechanism for GTA-wide co-ordination and plan-
ning of infrastructure and promotion and marketing of the regional
economy is required. This would recognize the integrated nature of
the GTA-wide regional economy.
A GTA-wide Federation of local municipalities and Metro/regional gov-
ernments should be created to plan and co-ordinate the major infra-
structure, which is the physical framework for the regional economy,
and includes roads and highways, transit, trunk sewers and major
treatment plants, water mains and major treatment plants, major hy-
dro facilities, and public telecommunications networks. We stress that
the federations function will be to plan these facilities and networks,
and not to operate them. The local municipalities and the Metro/Re-
gional level will operate them, within clearly defined areas of respon-
sibility.
The Federation would not be another level of government, but merely
a co-ordinating body, with limited legislative authority. It will have to
have the ability to broker inter-municipal and inter-regional agree-
ments to bind all its members to its plans and policies. The federation
will also serve as a GTA-wide forum for co-ordination and co-opera-
tion in the delivery of other services. For example, some of the major
quality of life facilities operated by Metro (e.g., the CNE, Metro Ref-
erence Library, OKeefe Centre, Metro Zoo) benefit the entire GTA. A
GTA-wide federation would bean appropriate forum in which to de-
velop to arrangements for sharing the costs of these facilities across
the whole GTA
The present GTA covers a larger area than is required to plan infra-
structure to support a healthy regional economy or to promote the
regional economy on the world stage. In the longer term, the bounda-
ries of the present GTA should be reviewed so that they reflect more
closely the region needed to support the planning and co-ordination
function and a GTA-wide assessment system. Future boundaries should
be based on watersheds, and on the extent of the existing urbanized
area while providing some room for growth. These kinds of boundary
issues can be contentious and block other reasonable and necessary
reforms. In view of the need to act now to reform the assessment
system and rationalize service responsibilities, review of the GTAs
boundaries should be deferred until the present round of reform is
substantially completed.
Leadership and Change: City of Scarborough GTA Task Force Submission September 1995
Scarboroughs Position:
8.1
8.2
8.3
A GTA-wide Federation of Iocal municipalities and Metro/Regional
governments should be created for planning and co-ordination pur-
poses. This Federation should not be another level of govemment,
but should have the authority to broker binding agreements be-
tween federation members.
To recognize the integrated nature of the GTA-wide regional
economy, major infrastructure should be planned on a GTA-wide
basis, and the GTAs economy should be promoted to rest of the
world on a GTA-wide basis.
The GTA Federation should plan and co-ordinate:
regional mad system
transit
trunk sewers and sewage treatment
. . . I feel 1 have a
continuing responsibility to
those people, my people,
to express our idiosyncratic
view of the universe. For
too long we have been
held silent and
misunderstood.
{
. . . Canadian society still
operates by the old ways,
where beginners viewed
as being outside the
mainstream are
considered marginal
people with nothing to say.
The 80s have been a
quietly revolutionary time
for us. Sometimes in
Toronto I feel like Ive been
marooned with my own
thoughts, but it is times
like these that I look down
to find 1 am only riding the
tip of the iceberg. The 90s
will see us breaking
through in a big way and 1
believe its been long
overdue. R,A, Shiomi,
Voic e, Community,
Culture, Responsibility
Theatrurn Winter 1990/ 91
12. Appoint a committee on Cultural Equity, comprised of members
of TACs Board and Arts Discipline Committees and artists and
arts workers and supporters representative of Torontos specific
cultural communities, to assist in implementing TAC's policy on
cultural equity. After one year, this committee should provide an
evaluation of progress achieved and make recommendations
for future TAC action.
Arts Discipline Committees
Toronto Arts Council has six Arts Discipline Committees: Dance,
Music, Theatre, Literary, Visual Arts/Film & Video and
Festivals/Special Events. An additional committee, comprised of
chairs of each of the discipline committees, adjudicates applications
to the Cultural Facilities Support Grants Fund. Each committee is
chaired by one or two Board members with other committee
membership being made up of artists and arts workers with
experience and expertise related to the discipline committee on
which they serve and with an awareness of the changing artistic
practices, trends and needs of artists and arts organizations in
Toronto.
Committee members serve staggered terms of three years and
are selected through a nominating and consultative process which
includes clients of the TAC.
Committee members are responsible for making policy
recommendations to the Board of Directors on matters affecting
their discipline, for making recommendations on grants funding
requested by organizations and projects and, as members of the
Toronto Cultural Advisory Corporation, for participating at the
Annual General Meeting and the election of the Board of Directors. In
arts disciplines that have individual artists grants programs
adjudicated by independent juries, committee members are also
responsible for designing the related programs and policies and for
selection of jury members. As stated above, committees are
represented on the Board of Directors by their respective Chairs,
each of whom is a member of the Board.
Committee members are volunteers; a small honorarium is
provided annually to Arts Discipline Committee members who are
not members of the Board of Directors.
Findings
B
B
Committees recognize the need to broaden the scope of artistic
expertise in each discipline.
Committees in general are not sufficiently aware of specific
cultural communities and diverse cultural practices. Committees
have not yet fully worked out ways and means to permit them
to be responsive and accountable to the broadest possible
range of artists working in all cultural communities.
Toronto Arts Council
13
B Committees do not fully appreciate how dominant Eurocentric
arts and cultural influences are in determining current artistic
standards and decision-making practices.
B The nomination and selection process for committees is not
widely known and understood by artists based in specific
cultural communities.
B Some committees have made much more progress than others
in responding to issues of representation and accountability. In
this regard, during the time of the course of research conducted
for this report, it was observed that the Theatre Committee and
the Music Committee had astonishingly low representation by
artists from specific cultural communities, considering the
breadth of activity in these disciplines.
B Low levels of remuneration to Arts Discipline Committee
members can discourage many qualified artists from
participating in the demanding and time-consuming
decision-making process.
B While conflict of interest and confidentiality guidelines are
enunciated and observed, these do not exist in written form for
reference by committees or juries.
Recommendations
Arts Discipline Committees to:
13. Prepare and circulated widely among members of the citys arts
community a precise statement of Arts Discipline Committees
nomination policies and practices. Effectively publicize this
information in all relevant media.
14. Appoint increased numbers of qualified artists and arts workers
drawn from the citys specific cultural communities. Advise the
Board of Directors on matters such as the appropriate
proportion of committee membership to be drawn from specific
cultural communities in order to strengthen each committees
representative character and expertise, and on the ways and
means each committee considers effective in securing this
strengthened membership.
15. Make use of recommended research, expanded membership,
and expanded grants management activity, to increase their
knowledge of artists, arts organizations and of various artistic
practices and production based in Torontos specific cultural
communities.
16. Broaden definitions of artistic practice and production to ensure
more equitable Toronto municipal support for the arts.
17. Raise annual remuneration provided to Arts Discipline
Committee members to realistic professional levels.
18. Develop statements of general criteria for cultural grant
decision-making process and for individual artists grants
programs.
14
Cultural Equity
19.
20.
21.
Define and recommend ways and means of monitoring
committee effectiveness in various areas: achievement of
agreed-upon goals; policy development; decision-making
effectiveness; advocacy effectiveness; community mobilization
capability.
Advise the Board of Directors on appropriate proportion of
committee membership to be drawn from specific cultural
communities.
Develop and adopt written guidelines respecting conflict of
interest and confidentiality For use by both Arts-Discipline
Committees and juries.
Juries
The Toronto Arts Council has three programs of grants support to
individual artists: Grants to Writers; Grants to Visual Artists (all media
including film and video); and Grants to Choreographers; and is
currently developing a pilot program of Grants to Composers. With
one exception (Writers Grants), these programs are adjudicated by
juries rather than the standing Arts Discipline Committees. Jury
members are selected on the same basis and criteria as Board and
committee members but serve only for the adjudication period and
are paid fees for their artistic expertise based on a professional scale
established by other arts funding agencies.
Findings
It would be more equitable if all TAC individual artists grants
programs were adjudicated through annually selected juries
rather than by the same committees who make decisions on
grants to organizations and collectives.
As with Board and committee members,. artists expressed
concern that there should be appropriate participation by artists
from specific cultural communities on TAC juries. It was noted,
in particular, that culturally specific art forms must be properly
evaluated through appropriate jury expertise.
While conflict of interest and confidentiality guidelines are
enunciated and observed, these do not exist-in written form for
reference by juries.
Recommendations
22. All individual grants programs to be adjudicated by annually
selected juries.
23. Juries to be selected in advance of the application process; if
the character of applications received indicates a need for
additional expertise on the jury, additional members should be
added.
Toronto Arts Council
15
24. As with the Board of Directors and Arts Discipline Committees,
the composition of TAC juries to include appropriate
participation by qualified artists based in Torontos specific
cultural communities.
25. Written guidelines respecting conflict of interest and
confidentiality issues to be prepared and used in jury procedures.
Programs
Toronto Arts Council provides operating and project grants to
professional and community-based arts organizations and
collectives. In addition, grants are available to individual visual artists
(all media including film and video), writers and choreographers. A
pilot program of grants for composers is being launched in July 1992.
Groups applying to the Annual Cultural Grants program for
organizations and collectives have the opportunity to appeal their
grant recommendations directly to the committees which
adjudicated their grants. In addition to these grants programs, TAC
has a Loan Fund with loans of up to $5,000 available to groups as
short-term bridge financing when they are expecting a confirmed
grant but are in the meantime experiencing cashflow problems.
Grants to organizations and collectives are adjudicated by TAC
Arts Discipline Committees. The Grants to Visual Artists and Grants
to Choreographers programs are adjudicated by juries, as will be the
pilot program for composers. Writers grants have been adjudicated
by the Literary Committee but, as of the 1992 program, will be
juried. The Board of Directors has identified grants to individual
artists as a priority for expansion and development. A program of
grants to individual artists for independent theatre projects is being
developed.
TAC also manages a program of cultural facilities grants for
Toronto arts and culture organizations. This program is adjudicated
through a committee of chairs of all discipline committees. In
addition to the Cultural Facilities Support Grants program, there is a
separate, arms length City agency, Toronto Artscape, which is
mandated to make available affordable work space for Toronto
artists and arts organizations. Comments made during the course of
consultations regarding the need for facility support, separate from
the Cultural Facilities grants program, have been forwarded to
Toronto Artscape.
16
Cultural Equity
Findings
People cant accept a
black dancer on stage
unless he or she is truly
better than all the others.
Derek Reid, Les Grand
Ballets Canadiens, The
Globe and Mail, August 20,
1990
B The current ratio of successful applicants in the Grants to
Writers and Grants to Visual Artists programs is unreasonably
low. (It is considered that 20% represents a bare minimum ratio
of success in funding programs, while 40% or 50% are more
reasonable targets for healthy grants programs. The success
ratio of the Writers grants program is 15% and that for the Visual
Artists grants program is 10%.)
. Many artists from specific cultural communities are not well
represented or served by organizations already receiving grants
from TAC.
. Within specific cultural communities, organizational
development has not, in all cases, shared the history of
opportunity enjoyed by many organizations and groups already
receiving funding from TAC. This lack of organizational
development can be a barrier to receiving grants despite the
artistic and cultural merit of the applicant.
. Many groups from specific cultural communities find it difficult
to access information regarding TAC, its programs and
application processes. Indeed, many artists from specific
cultural communities are unaware of TAC and its funding
programs.
. For some artists from specific cultural communities, language
barriers hamper access to information and grant opportunities.
. Artists expressed the view that they do not wish to see dedicated
funding programs that result in marginalization or ghettoization.
. During 1991, some isolated initiatives were made by TAC
creating linkages with artists and arts and cultural organizations
in racial, cultural, and linguistic communities. However, it is
necessary to incorporate these needs in policy and program
services to ensure a coordinated process of development.
Recommendations
26. TAC to request City Council to provide budgets for individual
artists grants programs adequate to ensure an overall success
rate of at least 50% of eligible applications. This is of crucial
importance because of the strength of individual artist
applications coming from specific cultural communities.
27, TAC programs to be all-inclusive. No dedicated funding
programs to be established at this time.
28. TAC to extend its programs of individual grants to independent
theatre projects without delay.
29. TAC to encourage Arts Service Organizations to reflect the
principle of cultural equity in terms of their governance and
services to the arts community.
30. TAC to give priority to addressing the needs of developing arts
organizations based in Torontos specific cultural communities.
Toronto Arts Council
17
31. TAC to communicate more effectively its programs and existing
criteria. This communication initiative must extend to finding the
resources necessary to assist artists for whom language itself is
a barrier to application and information.
32. TAC to develop flexible interim initiatives, where appropriate, to
enable artists and arts organizations and groups in specific
cultural communities to benefit from TAC services. TAC also to
review criteria of existing funding programs in order to
determine whether any new programs are required.
Staff and Management
The work of the Toronto Arts Council is the responsibility, on a
day-to-day basis of the Executive Director. Assisting her is a full-time,
permanent staff of five, plus a part-time Policy Director. The TAC
also relies heavily on federal and provincial employment programs
which provide four additional staff, including the part-time Individual
Grants Officer.
All of TAC's three grants officers have responsibilities in addition
to the management and liaison of TAC's 250 organizational clients
and over 500 individual grant applicants. One grants officer also
serves as Associate Director, another has communications and
publication responsibilities, and all permanent staff assist in the
training of employment grant staff. There is no full-time
communications staff and no staff capacity for research and
development.
Management costs presently average about 7% of total budget.
Given the overload situation which faces TAC staff and
management, and TAC's commitment to the training it provides, the
current situation provides a difficult work environment and does not
lend itself to the provision of the additional service recommended in
this report.
TAC would like to have the resources to engage another grants
officer whose background would be of particular assistance in
facilitating the work of implementing cultural equity. TAC also sees
an urgent need for a full-time Communications/Publications staff
person, a significant portion of whose energy would be utilized in
developing healthy interaction between TAC and artists and arts
organizations based in specific cultural communities. An additional
full-time support person is also required.
At present, TAC does not have the resources to provide staff
with professional development training appropriate to the Councils
growing relationship with artists and arts organizations based in
specific cultural communities.
18
Cultural Equity
Findings
B TAC has insufficient staff resources to enable the Council to
implement adequately the recommendations in this Report.
B There is a need for a comprehensive TAC personnel policy
which includes hiring and equal opportunity policies, and for
professional development opportunities for staff.
Recommendations
33.
34.
35.
36.
37.
Toronto Arts Council to develop a comprehensive personnel
policy, including proactive equal opportunity guidelines,
appropriate to its unique position as an arms length City
agency which is also accountable to the entire resident
non-profit arts community of Toronto.
Toronto Arts Council to seek, from Toronto City Council, the
resources to increase its budget for staff costs at the level of
grants officers and communications.
Toronto Arts Council to seek, from Toronto City Council, the
resources to enable TAC to offer its staff professional
development training similar to that available in other arms
length arts funding agencies.
Toronto Arts Council to develop a training plan for arts
administration and management based on TAC's past and
present training responsibilities and provide such training on an
ongoing basis.
Management priorities to be stated on an annual basis.
Conclusion
Everyone is entitled to fair
access to the whole pie. If
the pie is not big enough,
efforts must be made
towards expanding it. If it
is not nourishing enough,
efforts must be made to
change the recipe that has
been handed down from
generation to generation.
Neither the merit principle,
the economy, nor
productivity are
jeopardized by an opening
of the minds and systems
of any country to a
pluralistic competition.
Rosalie S, Abella,
Solidarity attacked by
exclusion: respecting
equality and diversity,
Queen s Quarterly, 1989/ 2,
Summer 1991
Moving Forward
The changing demographics of Toronto indicate the City will
continue to be culturally, racially and linguistically diverse. The
community consultation process engaged in during the course of
preparing this Report, revealed the need for the Toronto Arts Council
to undergo a process of transformation to enable the TAC to provide
broader access and more effective delivery of services to artists and
arts/cultural organizations in all cultural communities within the City
of Toronto. This review also indicated that currently African/Black,
Asian and First Nations artists are identified as the most underserved
artists from any cultural community.
A transformed process of decision-making and evaluation of
artistic issues will create more equitable distribution of TAC
resources to the arts community, will strengthen overall TAC delivery
of services and will begin immediately to narrow the gap between
artists and arts organizations receiving support and those seeking
support. The strategies stated in this Report will facilitate this process
of transformation.
This approach is integral to future arts growth. Both the
complexity of cultural, racial and linguistic differences and historic
organizational disadvantage must be addressed. The involvement of
artists and expertise based in Torontos specific cultural
communities has already led to a strengthening of TAC's perception
of its mandate. Acceptance and implementation of the
recommendations contained in this report will require effort,
additional human and financial resources, goodwill and commitment
on all sides over the long-term.
Underlying the rhetoric of access is the very real need for action.
Financial Implications
This report identifies a number of areas of TAC policy and practice
which require change, broadening and strengthening. If it is to be
capable of responding effectively to this report, TAC will require
additional resources to be applied in two major areas: enhanced
funding capability and enhanced management capability.
The financial implications of implementing this report are
detailed in the Toronto Arts Councils 1992 Strategic Plan Report.
Summarized, the necessary management enhancement is for:
engagement of additional grants officer; transfer of existing part-time
Toronto Arts Council 21
individual grants officer salary source from Job Creation funding to
TAC regular budget; engagement of additional office support person;
research and policy development, including special research on
artists and arts organizations in specific cultural communities;
communications; additional honoraria for Arts Discipline
Committees; Committee on Cultural Equity; professional
development. Taken together, this is estimated at approximately
$250,000. Enhanced grants capability would require additional
budget of approximately $1 million.
Given the current economic realities, these recommendations
will have to be phased in over time. However, all recommendations
in this Report which do not require application of additional
resources should start being implemented without delay.
Recommendation
38. It is recommended that Toronto City Council begin providing
Toronto Arts Council with additional resources as detailed in the
TAC Strategic Plan Report as soon as possible in order to
facilitate implementation of the policy of cultural equity.
22 Cultural Equity
Appendices
L Ac knowledgements
I wish to express my gratitude to each and every person who participated in the
process of my work on Cultural Equity: to every person who attended meetings,
spent time thinking and discussing issues of the state of the arts, cultural
differences and development, strategies to eliminate racism, my thanks for the
commitment and support given to the arts and culture in the city and the generous
sharing of your experience, critique and valuable advice.
I also want to acknowledge the care and support of the Sisters, of the
Toronto Arts Council Board of Directors and Arts Discipline Committees-and of
TAC's Executive Director, Rita Davies and Policy Director, Tom Hendry, whose
assistance was essential in completing this Report.
1 am grateful for input and advice from all areas but would like to point out
that the findings, recommendations and opinions expressed are my own.
E.A. Julian*
B Betty is an arts and cultural worker and former Director of A Space gallery. She currently works as a cultural
policy advisor and independent curator, and was recently appointed to the Board of the Ontario Arts Council.
Toronto Arts Council
23
Il. Terms of Reference
The terms of reference originally stated by the TAC strategic plan have developed
through consultation and discussion of the following six priority areas:
B
B
B
B
B
B
Advancement of artistic opportunities by responding to the increased number
of artists and arts and cultural organizations creating new work in all cultural
communities in the City of Toronto.
Enlargement of TAC programs and services to respond to new forms of
artistic and cultural production and practices and to the growth and
maturation of artists and arts organizations in all sectors of the non-profit
resident arts community of Toronto.
Reconstitution of TAC Board of Directors and Arts Discipline Committees to
represent better the expertise of a much broader spectrum of artists and arts
organizations. Specifically, Asian artists, Black artists, First Nations artists,
and all artists of colour will be represented.
Elimination of any systemic barriers of language, race and cultural bias
forming part of the existing TAC structure.
Maintenance of appropriate funding levels to existing TAC clients through
annual cultural grants.
Identification through a planning process of additional human and financial
resources needed to improve the creative environment of arts organizations
and artists in Toronto.
The stated priorities have provided a clarity of expression in examining the politics
of cultural differences, issues of equal access, and the cultural grants
decision-making process.
24
Cultural Equity
Ill. Rec ommendations
1. Endorse the principle of cultural equity as a high priority of Toronto Arts
Council and demonstrate this endorsement by including this policy as part of
the TAC Strategic Plan.
2. The Board of Directors of the Toronto Arts Council to develop a
comprehensive arts and cultural policy for the City of Toronto.
3. Brief and keep informed relevant City elected and appointed officials on the
findings of this report and on the ensuing progress towards achievement of its
stated goals.
4. TAC Board of Directors to ensure appropriate levels of participation, as
members of TAC's Board, Arts Discipline Committees and juries, by qualified
artists and arts and cultural workers based in the Citys specific cultural
communities.
5. TAC Board of Directors to define and articulate strategy for accessing
resources needed in the short, medium and long-term to implement fully the
policy of cultural equity while maintaining adequate levels of support for
TAC's existing clientele.
6. TAC Board of Directors to recognize that clarity and consistency of language
is of utmost importance in all documentation, discussion and resolution of
issues relating to the principle and policy of cultural equity.
7. TAC Board of Directors to prepare and widely circulate among the Citys arts
community a clear and precise statement of Board of Directors nomination
policy and practice. Effectively publicize this policy and practice in the media.
8. TAC Board of Directors to widely circulate among the members of the Citys
arts community a description of the working relationship between TAC's
Board of Directors and Arts Discipline Committees, defining the roles and
contributions of Board, Committees, staff and arts community in the
development of artistic standards and criteria, together with a statement of
existing criteria.
9. TAC Board of Directors to develop a written policy stating TAC's policies of
nondiscrimination in terms appropriate to the arts, TAC's structure, staff and
management.
10. TAC Board of Directors to develop ways and means of identifying,
representing and advocating on behalf of artists and arts organizations not yet
served by TAC.
11. TAC Board of Directors to secure and provide an adequate budget to allow
the development of research into the history, evolution, present situation,
problems and prospects of those sectors of the Toronto resident arts
community based in the specific cultural communities. Make these findings
available to TAC Board, committees, juries and staff.
12. TAC Board of Directors to appoint a committee on Cultural Equity, comprised
of TAC's Board and Arts Discipline Committees and artists and arts workers
and supporters representative of Torontos specific cultural communities, to
assist in implementing TAC's policy on cultural equity. After one year, this
committee should provide an evaluation of progress achieved and make
recommendations for future TAC action.
Toronto Arts Council 25
13.
14.
15.
16.
17.
18.
19,
20.
21.
22.
23.
24.
25.
26.
27.
Committees to prepare and circulated widely among members of the citys
arts community a precise statement of Arts Discipline Committees
nomination policies and practices. Effectively publicize this information in all
relevant media.
Committees to appoint increased numbers of qualified artists and arts workers
drawn from the citys specific cultural communities. Advise the Board of
Directors on matters such as the appropriate proportion of committee
membership to be drawn from specific cultural communities in order to
strengthen each committees representative character and expertise, and on
the ways and means each committee considers effective in securing this
strengthened membership.
Committees to make use of recommended research, expanded membership,
and expanded grants management activity, to increase their knowledge of
artists, arts organizations and of various artistic practices and production
based in Torontos specific cultural communities.
Committees to broaden definitions of artistic practice and production to
ensure more equitable Toronto municipal support for the arts.
Committees to raise annual remuneration provided to Arts Discipline
Committee members to realistic professional levels.
Committees to develop statements of general criteria for cultural grant
decision-making process and for individual artist grant programs.
Committees to define and recommend ways and means of monitoring
Committee effectiveness in various areas: achievement of agreed-upon goals;
policy development; decision-making effectiveness; advocacy effectiveness;
community mobilization capability.
Committees to advise the Board of Directors on appropriate proportion of
committee membership to be drawn from specific cultural communities.
Committees to develop and adopt written guidelines respecting conflict of
interest and confidentiality for use by both Arts Discipline Committees and
juries.
All individual grants programs to be adjudicated by annually selected juries.
Juries to be selected in advance of the application process; if the character of
applications received indicates a need for additional expertise on the jury,
additional members should be added.
As with the Board of Directors and Arts Discipline Committees, the
composition of TAC juries to include appropriate participation by qualified
artists based in Torontos specific cultural communities.
Written guidelines respecting conflict of interest and confidentiality issues to
be prepared and used in jury procedures.
TAC to request City Council to provide budgets for individual artists grants
programs adequate to ensure an overall success rate of at least 50% of
eligible applications. This is of crucial importance because of the strength of
individual artist applications coming from specific cultural communities.
TAC programs to be all-inclusive. No dedicated funding programs to be
established at this time.
26 Cultural Equity
28. TAC to extend its programs of individual grants to composers and
independent theatre projects without delay.
29. TAC to encourage Arts Service Organizations to reflect the principle of
cultural equity in terms of their governance and services to the arts
community.
30. TAC to give priority to addressing the needs of developing arts organizations
based in Torontos specific cultural communities.
31. TAC to communicate more effectively its programs and existing criteria. This
communication initiative must extend to finding the resources necessary to
assist artists for whom language itself is a barrier to application and
information.
32. TAC to develop flexible interim initiatives, where appropriate, to enable artists
and arts organizations and groups in specific cultural communities to benefit
from TAC services. TAC also to review criteria of existing funding programs in
order to determine whether any new programs are required.
33. Toronto Arts Council to develop a comprehensive personnel policy, including
proactive equal opportunity guidelines, appropriate to its unique position as
an arms length City agency which is also accountable to the entire resident
non-profit arts community of Toronto.
34. Toronto Arts Council to seek, from Toronto City Council, the resources to
increase its budget for staff costs at the level of grants officers and
communications.
35. Toronto Arts Council to seek, from Toronto City Council, the resources to
enable TAC to offer its staff professional development training similar to that
available in other arms length arts funding agencies.
36. Toronto Arts Council to develop a training plan for arts administration and
management based on TACs past and present training responsibilities and
provide such training on an ongoing basis.
37. Management priorities to be stated on an annual basis.
38. It is recommended that Toronto City Council begin providing Toronto Arts
Council with additional resources as detailed in the TAC Strategic Plan Report
as soon as possible in order to facilitate implementation of the policy of
cultural equity.
Toronto Arts Council 27
IV. Response of the Board of Directors
to the Cultural Equity Report
The Board of Directors has received Cultural Equity, a report prepared by
consultant E. A. Julian. The Report contains 38 recommendations grouped within
10 major areas of suggested action. It is based on extensive consultation with
artists based in Torontos more than 100 specific cultural communities, many of
whom, in the past, have been underserved in the provision of City of Toronto
cultural funding assistance.
The Report, commissioned by TAC, is designed to respond to the Boards
wish to focus TAC's energies on moving into step with the needs of the 21st
century so that at all times TAC's actions and activities produce solutions to
problems, rather than a perpetuation of problems.
In its response, the Board emphasized that artists based in presently
underserved communities have huge expectations of the City of Toronto through
the Toronto Arts Council. The Board of Directors of TAC cautions that present
economic conditions may not permit the immediate and rapid expansion of
budgets called for by the Report, However, as ties with previously underserved
artists strengthen, and economic conditions improve, TAC's ability to respond, as
administrators and advocates, to the increased needs and opportunities of new
clientele will grow on the basis of priorities identified by the report and endorsed by
the Board of Directors.
in receiving the Report, the Board was gratified to note that, in many
instances, Ms Julians findings and recommendations had validated expansion and
enhancement of many of TAC's existing policies, programs and practices.
. the Report calls for a continuation of non-dedicated funding as part of an
overall avoidance of any form of subsidy ghettoization;
B while avoiding quotas, the Report urges TAC to intensify its policy of
increasing the numbers of TAC's Board of Directors and Arts Discipline
Committees elected from members of Torontos underserved specific cultural
communities;
the Report further emphasizes the need for significant expansion of TAC's
individual grants programs.
The Report defines a specific cultural community as a group of persons
having a shared communication, interest or expression and whose difference from
other groups may be based on culture, ethnicity, gender, language, race or sexual
orientation. The Board agrees that this definition enlarges TAC's mandate to better
include all arts expression and production by all Toronto artists and arts
organizations/collectives. The Board also agrees with the Reports
recommendation that TAC strengthen its communications with all sectors of the
Toronto arts community.
The Board of Directors expressed its appreciation to consultant Betty Julian,
to the Strategic Planning Committee, and to the many Torontonians, artists and
arts supporters, who contributed so effectively and extensively to the consultation
process.
28 Cultural Equity
TAC Board Response to Recommendation I
Endorse and adopt the policy and principle of cultural equity and include this policy
in the TAC Strategic Plan.
The ten principal recommendations of the Cultural Equity Report have been
approved by the Board of Directors and integrated into TAC's three-year Strategic
Plan. Full implementation of the recommendations will be contingent upon
provision by City Council to TAC of additional resources required.
TAC Board Response to Recommendation II
Prepare and publish a comprehensive statement defining the overall framework of
policy within which TAC works, and of policies and guidelines governing the work of
committees and juries. Reflect implementation of policies and guidelines in annual
statement of management priorities.
Addressing the nine areas reflected in this recommendation will require resources
in the way of policy documentation and expansion which TAC does not possess at
present. TAC is presently undertaking a review and inventory of existing policies
approved by the Board and its committees and will make this information available
when completed. TAC stresses that an effective, enlarged communications
program will not be possible without increased budgets. For 1993, and succeeding
years, TAC will annually disseminate statements of management priorities together
with assessments of results. As an integral component of TAC's Strategic Plan,
implementation of the Cultural Equity policy will be monitored by the Boards
Priorities and Planning Committee, appropriately augmented.
TAC Board Response to Recommendation Ill
Ensure that TAC Board of Directors, Arts Discipline Committees and arts juries reflect
appropriate levels of participation by qualified artists and arts supporters based in
previous ly underrepres ented s pecific cultural communities .
TAC operates on the basic principle of artist empowerment as mandated by the
1974 resolution of City Council which established TAC. At that time, City Council
directed that a majority of TAC's Board of Directors be artists. The Board agrees
that Board and Committee membership should include appropriate representation
of artists from all cultural communities and began a number of years ago to make
appointments to reflect this policy. The Board is committed to enhancing this policy.
TAC Board Response to Recommendation IV
Effect an improved two-way information flow between TAC and all its
cons tituents -thos e pres ently s erved and thos e not y et s erved. Seek res ources to
enable the preparation of inventories of artis ts and arts organizations not yet served.
Full implementation of this recommendation will be contingent on TAC's receiving
the additional resources the tasks enumerated will require. The Board notes
particularly the need for information such as the recommended inventory of
presently unserved artists and organizations, since such data is of vital importance
in discharging responsibly TAC's role as arts and culture advisor to City Council.
Toronto Arts Council
29
TAC Board Response to Recommendation V
Broaden definitions of artistic and cultural practices.
The Board has begun the implementation process here. Committees have begun
to provide themselves with the expertise to respond knowledgeably to applications
from artists based in specific cultural communities. This responsive stance will
change to proactive as additional resources become available. The election to arts
discipline committees of members familiar with a broad range of expression has
been of particular assistance. This practice will be continued and strengthened.
TAC Board Response to Recommendation VI
Extend and enlarge programs of grants to individual artists so as to broaden access
to these resources and eliminate unacceptably low levels of applicant success.
TAC's existing policy of expanding grant programs to individual artists will
continue and is in harmony with this recommendation. The Board notes, with
regard to individual candidate success ratios, that fixed percentage targets are not
always advisable or appropriate. However, the Board agrees that present overall
success rates for individual artists are unacceptably low-due to lack of fundsin
relation to the numbers of artists applying who meet all program criteria.
TAC Board Response to Recommendation Vll
Prepare and publish a comprehensive personnel policy for Toronto Arts Council,
including employ ment equity provis ions .
Toronto Arts Council presently observes City of Toronto policies in the area; as
recommended, the Board will develop a policy tailored specifically to the needs
and situation of TAC.
TAC Board Response to Recommendation Vlll
Reflect aw arenes s of the need to res tructure TAC grant programs in order to
implement the policy of cultural equity.
The Board agrees with this recommendation and notes:
B It has always been TAC's policy to give priority to developing groups; this
policy will be maintained. Similarly, TAC's policy of nondedicated funding will
continue, as recommended by the report.
B TAC will give priority to the needs encountered by arts service organizations
in responding to the policy of cultural equity.
TAC Board Response to Recommendation IX
Strengthen and broaden TAC's relations hip w ith elected and appointed municipal
leaders hip.
The Board fully agrees with this recommendation and will intensify its efforts in this
context.
30 Cultural Equity
TAC Board Response to Recommendation X to City Council
Provide Toronto Arts Council w ith the res ources neces s ary to implement the policy of
cultural equity w ithin an overall arts s upport mandate appropriate to Torontos
s tature and richnes s of artis tic texture.
The Board underlines the importance of this recommendation by stressing that full
implementation of this report will depend on TAC's ability to acquire the additional
resources required. The present economic situation may dictate a phased
implementation process based on priorities identified by the report, approved by
the Board and embodied in published statements of TAC management priorities.
Toronto Arts Council
31
V. Organizations
& Individuals Consulted
Participants in meeting on Cultural Equity in the Arts Community and the Role of
the Toronto Arts Council, August 1990
Glace Lawrence
Angela Rebeiro
Ayanna Black
Marva Jackson
Fely Villasin
Arturo Fresolone
Brenda Kamino
Yuen-Ching Chow
Azadeh Moayedi
Beverly Yhap
Lina Fattah
Black Film & Video Network, Full Screen
League of Canadian Poets
Canadian Artists Network/Black Artists in Action
Canadian Artists Network/Black Artists in Action
Carlos Bulosan Cultural Workshop
Theatre of Change
Emerald City Theatre
Panda Dance Theatre
Mithra Arts
Cahoots Theatre Projects
Ontario Arts Council
Lets Talk
In November and December 1990, the Toronto Arts Council held its Lets Talk
consultative sessions with its clients and other interested members of the arts
community. Each of the sessions for Dance, Music, Theatre, Literary, Visual
Arts/Film & Video and Festivals/Special Events addressed the topic of cultural
diversity. In addition, a special session was devoted to a forum on Cultural
Diversity. Attendees at the sessions are listed below. For a complete report on
TAC's 1990 Lets Talk sessions, please call the Toronto Arts Council.
Robert Achtemichuk
Alina Adjemiars
Robert Aitken
Ric Amis
Damir Andrei
Derek Andrews
Ellie Aylesworth
Bob Baker
Ellen Baker
Gwen Barreman
Irene Bauer
Elaine Baxter-Trahair
Marjorie Beaucage
Leo Beaulieu
Mimi Beck
Lawrence Bennett
Chris Biggs
Joanna Black
Donald Bracken
Pat Bradley
Billie Bridgman
Judy Brooks
Linda Brown
Beverly Jean Brunet
Open Studio
Independent
New Music Concerts
NRG
Independent
Harbourfront Music Program
Buddies In Bad Times
Canadian Stage Company
Dance in Canada
Buddies In Bad Times
Metro Cultural Affairs
Metro Cultural Affairs
Full Screen
Independent
Danceworks
Independent
Toronto School of Art
Inner City Angels
Media Montage
Metro Cultural Affairs
Toronto Artscape Inc.
Metro Toronto Multicultural and Race Relations Division
Ontario Arts Council
Bathurst Quay Neighbourhood Association
32
Cultural Equity
Sid Bruyn
Ken Bruzual
Diana Bryden
Rex Buckle
Jeffrey Burns
Christopher Butterfield
Peter Caldwell
S. Carstairs
Derek E. Chong
Rebecca Chua
Moira Clark
Alison Conway
Terry Costantino
Andrew Cowan
David Craig
Elizabeth Czach
Michael deConinck Smith
Lucille de Saint Andre
Paolo diSanto
Damon DOliveira
Rosemary Donegan
Jim Dube
Douglas Durand
Robin Eecloo
Daria Essop
Sarah Evans
Jeff Evenson
Andy Fabo
Lina Fattah
Lorraine Filyer
Ron Francis
Fernando Freire
Mimi Gellman
Suzanne Gerhardt
Claire Gironelle
E.M. Glavin
Henry Gomez
Nic Gotham
Dina Graser
Mike Greenspoon
Sandy Greer
Cathryn Gregor
Sandra Gregory
Gary Hall
Vanessa Harwood
Sally Han
Liz Hellreich
M. Hodgson
David Huband
Dan Hudson
Beverley Hurlbut
Annette Hurtig
Tim Jones
National Festival of Canadian Theatre
Calypso Association of Canada
A Space
Buddies In Bad Times
Independent
Independent
Arts Foundation of Greater Toronto
Creative Voc St.
Independent
Independent
Mercer Union
independent
Gallery 44
Independent
Ontario Arts Council
Pleasure Dome
Canadian Childrens Dance Theatre
Independent
Multicultural Dance of Ontario
Full Screen
Independent
George Brown School of Dance
Dancemakers
LIFT
Womens Art Resource Centre
Independent
Mayors OffIce, City of Toronto
Mercer Union
Ontario Arts Council
Ontario Arts Council
Theatre Plus Toronto
CMS Production
Gellman Designs
Harbourfront
Independent
Independent
Calypso Association of Canada
Hemispheres
First Night Toronto
Mariposa Folk Foundation
Periodical Writers Association of Canada
Toronto Symphony
Crows Theatre
Toronto Photographers Workshop
Independent
Theatre Passe Muraille
Urban Alliance on Race Relations
Able/Disabled Creative Arts Centre
Illustrated Men
Independent
Oriana Singers
Mercer Union
Buddies In Bad Times
Toronto Arts Council
33
Bengt Jorgen
Sue Kaiser
Jack Kay
Mihan Kazemi
Joyce Kline
Elizabeth Kovac
Terri Kuhl
Eric La Delpha
Cheryl Landy
Larry Lake
William Lau
Aleida Limbertie
Sarah Lockett
Carole Logan
Karen Mac Cormack
Joe Macerollo
AlIan MacKay
Ahdri Zhina Mandiela
Jane Marsland
Malcolm Martini
Ingrid Mayrhofer
Joseph Mazurkiewicz
Dawne McFarlane
Lynn McGuigan
Duncan McIntosh
Neil McLeod
M. McMahon
Alison McTavish
Sara Meurling
Ed Mihalcin
Michael Miller
Bob Moher
Jim Montgomery
Lois Morantz
Helen Morgan
Kim Morrissey
Christine Moynihan
Peter Muir
Gregory Nixon
Chloe Onari Smith
Andrew V. Paterson
Fraser Paterson
Shannon Peet
Joost Pelt
Len Pendergast
Jake Peters
Joan Phillips
Sharon Poitras
Krys Potapczyk
John Price
Ballet Jorgen
City of Toronto, General Grants
Independent
Persian Art & Cultural Foundation
Mercer Union
International Readings at Harbourfront
Prologue
independent
Theatre Ontario/PACT
Canadian Electronic Ensemble
Independent
Community Folk Art Council of Metro Toronto
Ontario Ballet Theatre
Dance Umbrella of Ontario
Independent
New Music Concerts
The Power Plant
Independent
Danny Grossman Dance Company
George Brown School of Dance
A Space
National Shevchenko Ensemble
Independent
Dance Ontario
Theatre Plus Toronto
Association for Native Development
in the Performing & Visual Arts
Independent
New Music Concerts
Theatre Centre
Planning & Development Department,
City of Toronto
Young Peoples Theatre
Ground Zero Productions
Music Gallery
Inner City Angels
Ontario Arts Council
Independent
Equity Showcase Theatre
Theatre Ontario
Fringe of Toronto
Canadian Artists Network/
Black Artists in Action
Trinity Square Video
Independent
Sound Pressure
Harbourfront Dance Program
Visual Arts Ontario
Toronto Photographers Workshop
Independent
Theatre Ontario
Ontario Arts Council
George Brown School of Dance
34 Cultural Equity
Janis Rapoport
Leslie Robbins
Audrey Rocaja
Stan Regal
Lindsay Rogan
Audrey Rose
Colin Rose
Jennifer Ross
Spencer Rowe
Jennifer Rudder
Susan Rutledge
Gerard Seguin
George Seremba
Gwen Setterfield
Kathleen Sharpe
Valerie Siren
Lisa Steele
Lillian Stermac
Bob Stevens
Jini Stolk
Warren Sulatycky
Carolyn Taylor
Jacqueline Taylor
Jennifer Taylor
Youri Thomas
Julia Tribe
Sandra Tulloch
Norm Walford
Myles Warren
Bob White
Lucy White
Sandra Whiting
Julie Whittaker-Dus
Debbie Wilson
Winsom
Carla Wittes
Elizabeth Yake
Beverly Yhap
David Zapparoli
Lilie Zendel
Independent
Jewish Storytelling Productions
Independent
Independent
Ontario Crafts Council
Black Dancers in Canada Assoc.
Theatre Passe Muraille
The Poor Alex Group
A Space
YYZ Artists Outlet
Ontario Arts Council
Esprit Orchestra
Independent
Ontario Arts Council
Metro Cultural Affairs
Syrinx Concerts Toronto
V Tape
City of Toronto Equal Opportunity Division
Mariposa Folk Foundation
Toronto Theatre Alliance
Theatre Centre
The Word on the Street
Danceworks
Music Toronto
Independent
Topological Theatre
Theatre Ontario
Ontario Arts Council
Desrosiers Dance Theatre
Cabbagetown Cultural Festival
Canadian Authors Association
Harbourfront
Independent
Independent
Independent
Theatre Ontario
Independent
Cahoots Theatre Projects
Canadian Artists Network/Black Artists in Action
Playwrights Union of Canada
Cultural Equity Focus Group
Colin Taylor Artistic Director, Theatre Wum
Ceta Ramkhalawansingh Manager, Contract Compliance Section,
Equal Opportunities Division, City of Toronto
Management Services Department
Angela Rebeiro Executive Director, Playwrights Union of Canada
Daniel David Moses Writer
Yuen-Ching Chow Lecturer, Medical Faculty, U of T/
Administrator, Panda Dance Theatre
Brenda Kamino Artistic Director, Emerald City Theatre
Toronto Arts Council 35
Individuals Consulted
Lillian Allen
Ingrid Bachman
Cameron Bailey
Luba J. Bakay
Kass Banning
Marjorie Beaucage
Leo Beaulieu
Shauna Beharry
Salome Bey
Judith Brooks
Clare Carew
Cat Cayuga
Lewis Chan
Debra Cheung
David Craig
Charmaine Dayle
Janice Dembo
Susan Ditta
Rosemary Donegan
Judith Doyle
Jules Elder
Sharon Fernandez
Lorraine Filyer
Tom Folland
Rina Fraticelli
Richard Fung
Ana Gronau
Elizabeth Hellreich
Robert Houle
Barry Isenor
Marva Jackson
Clifton Joseph
Paul Kafele
Carol Laing
Andrew Lee
Paul Lee
Keith Locke
Lana Love]]
Lani Maestro
Adhri Zhina Mandiela
Dub-poet/Writer/Cultural Worker
Visual Artist/Visual Arts Program Assistant,
Banff Centre for the Arts
Film Reviewer/Critic, NOW Magazine
Director, Ontario Folk Arts Multicultural Council
Writer/Film Critic/
Literary Committee Member TAC (1988)
Filmmaker/Cultural Worker
Director, Black Secretariat
Videomaker/Filmmaker (AKA Gallery, Saskatoon)
Playwright/Actress/Singer
Community Relations Officer,
Multicultural & Race Relations Division,
Municipality of Metropolitan Toronto
Visual Artist/Educator/Painter
Board Member, Association of Native Development
in the Performing and Visual Arts
President, Ethnocultural Council of Canada (Ottawa)
Architect (London, England)
Film/Photography/Video Officer,
Ontario Arts Council
Educator/Black Community Development (Montreal)
Coordinator, Toronto Mayors Committee
on Community & Race Relations
Head, Media Arts Section, Canada Council
Curator/Board of Directors, Euclid Theatre
Videomaker/Film Instructor, Ontario College of Art
Editor, Share
Visual Artist
Literature Officer, Ontario Arts Council
Critical Writer/
Former Assistant Curator, Power Plant
Former Executive Producer, Studio D, NFB/
Cultural Policy Advisor,
Ministry of Culture and Communications
Videomaker/Program Coordinator, Race to the Screen
Filmmaker/Instructor, Ontario College of Art
Program Officer, Urban Alliance on Race Relations
Visual Artist
Architect/C~Editor, Splinter
Coordinator, Canadian Artists Network/
Black Artists in Action
Dubpoet-at-large/Imprint Story Editor, TVO
Chair, Toronto Cares Working Group,
Community Groups Address Racism
Visual Artist/Writer
Consultant
Member, Inside/Outside Collective
Filmmaker
Videomaker/Filmmaker
Visual Artist/Co-Editor, Harbour Arts Magaz ine
Writer/Poet/Theatre Director
36
Cultural Equity
Afua Marcus
Kobena Mercer
Michael Miller
Nataley Nagy
Midi Onodera
Irene Packer
Nancy Patterson
Sheila Petty
Joan Pierre
Kirk Provo
Ian Rashid
Angela Rebeiro
Gwen Settefield
Fran Shuebrook
Roger Simon
Surindr Singh Gill
Molly Shinhat
Winston Smith
Anne-Marie Stewart
Colin Taylor
Shanti Thakur
Ronnie Thompson
Loretta Todd
Louise Trahan
Dot Tuer
Vainub Verjee
Winsom
Morris Wolfe
Lloyd Wong
Writer/Program Assistant, Images 1991
Writer/Assistant Professor Art History,
University of California, Santa Cruz
Former Artistic Director, Theatre Fountainhead
Associate Visual Arts Officer, Ontario Arts Council
Filmmaker
Board Member, Womens Art Resource Centre (WARC)
Visual Artist/Curator/Instructor, Ontario College of Art
Critical Writer/Professor Film & Video, University of Regina
Executive Director, Caribana
Independent
Poet/Writer/Cultural Worker/
Former Managing Editor, Betw een the Lines
Executive Director, League of Canadian Poets
Director of Development Ventures,
Ontario Arts Council
Marketing Coordinator, Full Frame Films
Professor of Critical Pedagogy and Cultural Studies,
Ontario Institute for Studies in Education
Race Relations Consultant, Race Relations Directorate,
Ministry of Citizenship
Photographer/Writer (Montreal)
Writer/Radio Broadcaster/Editor
Cultural Community/
Organizational Development Consultant/
Superintendent of Personnel, Toronto Board of Education
Theatre Director/Writer/Artistic Director, Theatre WUM
Filmmaker/Videomaker (Montreal)
Coordinator, Dixon Hall/Black Perspectives
Videomaker/Filmmaker (Vancouver)
Cultural Development Organizer/
Program Officer, UNESCO (Ottawa)
Critic/Writer/Curator
Independent Curator/
Media Art Director, Western Front (Vancouver)
Textile Artist
Writer
Multicultural Dramatic Film Fund Coordinator,
Liaison of independent Filmmakers of Toronto (LIFT)
Organizations Consulted
AIDS Action Now! Full Screen Film and Video Collective
Buddies in Bad Times Lesbian and Gay Community Appeal
Canadian Native Arts Foundation Native Womens Resource Centre
Canadian Union of Postal Workers Ontario Black History Society
Cantonese Musical Club Ontario Indian Art-l-Crafts
Cecil Street Community Centre Our Times
Chinese Canadian Intercultural Association Scadding Court Community Centre
Chinese Cultural and Arts Centre Sister Vision
Coalition of Visible Minority Women Women Working with Immigrant
Cross Cultural Communications Centre Women
Diasporic African Women (DAWA) Working Women Community Centre
Toronto Arts Council 37
TAC Board of Directors as at January 1991
Pr e s i de n t Margo Bindhardt
Pa s t Pr e s ide n t J.P.S. Mackenzie
Se c r e t a r y Douglas Barrett
Tr e a s u r e r Montague Larkin
Councillor Liz Amer
Ayanna Black
Anne Collins
Mary Lou Fallis
Niv Fichman
Denise Fujiwara
Jim Garrard
Henry Kucharzyk
Glace W. Lawrence
Christian Morrison
Ian Murray
Councillor Nadine NowIan
Timothy Porteous
Norman Richmond
Banuta Rubess
lain Scott
Valerie Wilder
TAC Committees as at January 1991
Da n c e Denise Fujiwara (Co-Chair)
Valerie Wilder (Co-Chair)
John Alleyne
Pat Fraser
Pamela Grundy
Rina Singha
Fe s t iva ls / Spe c ia l Eve n t s Niv Fichman (Chair)
Billie Bridgman
Ian Jones
Marcia McClung
Ian Rashid
Evangelize Wong
Li t e r a r y Anne Collins (Chair)
Mark Czarnecki
Karen Mac Cormack
Michael Miller
Libby Scheier
Antanas Sileika
Makeda Silvera
Whitney Smith
Winston Smith
Moyez Vassanji
38 Cultural Equity
Mu s ic
Th e a t r e
Mary Lou Fallis (Co-Chair)
Henry Kucharzyk (Co-Chair)
Marion Aitken
Brainerd Blyden-Taylor
Neil Crory
Monica Gaylord
Mark Hand
Lorraine Segato
Jim Garrard (CmChair)
Banuta Rubess (C~Chair)
Tom Butler
Michael Hollingsworth
Claire Hopkinson
Marvin lshmael
Tanja Jacobs
ka Levine
Sue LePage
Gregory Nixon
Vis u a l Ar t s / Film & Vide o Ia n Mu r r a y (Co-Ch a ir )
Christian Morrison (Co-Chair)
Michael Balser
Ayanna Black
June Clark-Greenberg
Judith Doyle
Oliver Girling
Shirley Yanover
Toronto Arts Council
39
VI. Referenc es
Selected Bibliography
Abella, Rosalie S. Solidarity Attacked by Exclusion: Respecting Equality and
Diversity. Queens Quarter/g 98/2 Summer 1991: 353-374.
Association for Canadian Studies. Practicing the Arts in Canada. Vol 11,
Canadian Issues. Montreal: Association for Canadian Studies, 1989.
Barker, Drucilla K. Local Art Agencies, Accountability, and Artistic Quality.
Cultural Economics 88: A Canadian Perspective. Ottawa: Association for
Cultural Economics, 1989: 191-195.
Berger, Maurice. Are Art Museums Racist? Art in America September 1990:
69-77.
Berger, Maurice. The Critique of Pure Racism: An Interview with Adrian Piper.
Afterimage 18/3 October 1990.
Breton, Raymond et al. Ethnic Identity and Equality: Varieties of Experience in a
Canadian City. Toronto: University of Toronto Press, 1990.
Breuer, Lee. The Two-Handed Gun: Reflections on Power, Culture, Lambs, Hyenas,
and Government Support for the Arts. The Village Voice, 20 August 1991.
Brown, Louise. Wake-up, color blind feminists. Toronto Star, 14 March 1989.
California Arts Council. California Dialogue II: Artistic Quality/Cultural Survival
(Report from the Second Annual Issues Conference for Multi-Cultural Arts
Organizations). Los Angeles, December 1987.
Canadian Conference of the Arts. A Strategy for the Funding of the Cultural
Sector. September 1990.
Chartrand, Harry Hillman et al. Cultural Economics 88: A Canadian Perspective.
Ottawa: Association for Cultural Economics, 1989.
Chartrand, Harry Hillman. Creativity and Competitiveness: Art in the Information
Economy. Arts Bulletin, November 1990.
Chater, Nancy. Someone Hume happens to be . . . Toronto Star writer loses
himself in reflections on Black art. Fuse (Issue 4, 1991).
Chua-Eoan, Howard G. Ups and Downs in Toronto. Time, 21 October 1991: 84.
Clifford, James, The Predicament of Culture: Twentieth Century Ethnography,
Literature, and Art Cambridge: Harvard University Press, 1988.
Nottingham, Laura. The Feminine De-Mystique: Gender, Power, Irony, and
Aestheticized Feminism in 80s Art. Flash Art Summer 1989: 91-95.
Edsall, Thomas Byrne, with Mary D. Edsall. RACE. The Atlantic Monthly
May 1991: 53-86.
Fanon, Franz. Black Skin, White Masks. New York: Grove Press, 1967.
Ferguson, Russell et al. Out There: Marginaliz ation and Contemporary Cultures .
Cambridge: MIT Press and The New Museum of Contemporary Art, New York,
1990.
Freire, Paulo. Pedagogy of the Oppressed. New York: Continuum, 1985.
Greater London Arts. Arts P/ an for London, 1990-1995. London, England. 1990.
Greater London Council (GLC). GLC Annual Report 1984.
40
Cultural Equity
Hall, Stuart. The Emergence of Cultural Studies and the Crisis of the Humanities.
October 53 Summer 1990: 11-28.
Hall, Stuart. The Popular Arts. Boston: Beacon Press, 1964.
Hendry, Tom. Role of Data in Local Cultural Planning. Cultural Economics 88:
A Canadian Perspective. Ottawa: Association for Cultural Economics, 1989:
262-269.
Home, Stewart. The Assault On Culture: Utopia Currents From Lettrisme To
Class War. London: Aporia Press and Unpopular Books, 1988.
hooks, bell. Yearning: Race, Gender, and Cultural Politics. Toronto: Between the
Lines, 1990.
Hume, Christopher. Culture or Multiculturalism. Toronto Star, 3 March 1991.
Litt, Paul. The Massey Commission, Americanization, and Canadian Cultural
Nationalism. Queens Quarterlg Summer 1991: 373387.
Lord, Catherine. Bleached, Straightened, and Fixed: The Cooptation of Cultural
Pluralism. IYew Art Examiner February 1991: 25-27.
Maart, Rozena. African Oral Power: In Defiance of the Colonialism of the Written
Word. Fuse (Issue 5 & .6, 1991): 18-21.
MacDonald, Bryden. NOT Leaving Home: Growing up Artistically in Atlantic
Canada. Theatrum Winter 1990/91: 15-18.
Mohamed, Abdul R. Jan. Colonialist Literature. Race, Writing and Difference,
ed. Henry Louis Gates, University of Chicago, 1985.
New Democratic Party of Ontario. Work of Art. NDP Party Policy on the Arts in
Ontario, 1984. Ontario, 1984.
New York African American Institute, State University of New York. Towards
Cultural Democracy: The Development and implementation of a
Multicultural Arts Policy for New York State. Document #88-5, January 1989.
Owusu, Kwesi. The Struggle for Black Arts in Britain: What Can We Consider
Better than Freedom. London: Comedia Publishing Group, 1986.
Pareles, Jon. A New Respect for FolkBut Black Tie Optional. New York Times,
28 October 1990.
Philip, Marlene Nourbese. Canadian Literature in Black Type. Notes From the
Underground, 28 April 1990.
Philip, Marlene Nourbese. The Six-Percent Solution. Fuse Fall 1990: 28-29.
Pindell, Howardena. Art (World) and Racism: Testimony, Documentation and
Statistics. Third Text 314 Spring/Summer 1988: 160.
Pindell, Howardena. Breaking the Silence: On Art World Racism. New Art
Examiner October 1990: 18-23.
Pindell, Howardena. Breaking the Silence: On Art World Racism Part II. New Art
Examiner November 1990: 23-27, 50-51.
Piper, Adrian. The Joy of Marginality. ArtPapers 144 November 1990: 12-13.
Robertson, Clive Bad Press, Bad Government, Bad Strategies? Arts Bulletin,
November 1990.
Rosaldo, Renato. Others of Invention: Ethnicity and Its Discontents. The Village
VoiceLiterarg Supplement, February 1990.
Ross, Andrew. No Res pect: lntel[ectuals and Popular Culture. New York:
Routledge, 1989.
Toronto Arts Council 47
Said, Edward. Orientalism. New York: Pantheon, 1978.
Schmidt Campbell, Mary. Speaking Out: Some Distance to Go . . . Art In
America, September 1990: 78-85.
Scheier, Libby, with Lenore Keeshig-Tobias. Writing Authentic Voices: The Writers
Union and Anti-racism. Fuse 15, nos. 1-2 (Fall 1991): 14-15.
Shaw, Douglas V. et al. Cultural Economics: An American Perspective. Ottawa:
Association for Cultural Economics, 1989.
Shiomi, R.A. Voice, Community, Culture, Responsibility and Visible Minority
Playwrights. Theatrum Winter 1990/91.
Spivak, Guyatri. In Other Worlds. New York: Metheun, 1987.
Srivastara, Aruna. lMAG(in)lNG RACISM: South Asian Canadian Women Writers.
Fuse 15, nos. 1-2 (Fall 1991): 26-34.
Stevens, Louise K. Stages i n Growth in Cultural Organizations: The Artistdriven
Versus Community-driven Organization. Cultural Economics: A Canadian
Perspective. Ottawa, Association for Cultural Economics, 1988: 1-18.
Tippet, Maria. Making Culture: English Canadian Institutions and the Arts
before the Massey Commission. Toronto: University of Toronto Press, 1990.
Tompkins, Alan. The State and Public Cultural Policies (Paper from GLCS
Cultural Industries and Cultural Policy in London conference). London,
England, Greater London Council Department for Recreation and the Arts,
1989.
Valpy, Michael. Culture Shock for Canadians. Globe & Mail, 8 April 1991.
Vassanji, M.G. Cultural Identity Survives First Generation. Toronto Star, 30 July
1991: 15.
Vincent, Isabel. Having the habits of mind. Globe& Mail, 9 February 1991.
Wallace, Michelle. Invisible Blues: From Pop to Theory. New York: Verse, 1990.
Wallis, Brian, ed. Art After Modernism: Rethinking Representation. Cambridge:
MIT Press and the New Museum of Contemporary Art, New York, 1987.
Wallis, Brian, ed. Blasted Allegories: An Anthology of Writings by Contemporary
Artists. Cambridge: MIT Press and the New Museum of Contemporary Art,
New York, 1987.
West, Cornel. The New Cultural Politics of Difference. Out There:
Marginalization and Contemporary Cultures, ed. Russell Ferguson et al. MIT
Press and the New Museum of Contemporary Art, New York, 1990: 19-36.
Toronto Arts Council Documents
Cultural Capital: The Care and Feeding of Torontos Artistic Assets. (by Tom
Hendry) Toronto Arts Council, 1985.
City of Toronto Arts and Culture Community: Financial Trends 1981-1987 with
Projections to 1999. Toronto Arts Council, March 1988.
No Vacancy: A Cultural Facilities Policy for the City of Toronto. Toronto Arts
Council, 1988.
1987 Annual Report. Toronto Arts Council, 1988.
Annual Report 1988-1989. Toronto Arts Council, 1990.
Toronto Arts Council 1, no. 1 (March 1988); no. 2 (October 1988). (newsletters)
42
Cultural Equity
Submission in Support of 1991 Cultural Budget. Toronto Arts Council,
November 30, 1990.
Submission in Support of 1990 Cultural Budget. Toronto Arts Council,
November 10, 1989.
Submission in Support of 1989 Cultural Budget. Toronto Arts Council,
November 25, 1988.
Report(s) to Toronto City Council from Toronto Arts Council:
Recommendations for City of Toronto Arts and Culture Grants:
1991 June 14, 1991 1987 May 28, 1987
1990 June 1, 1990 1986 June 6, 1986
1989 May 16, 1989 1985 May 31, 1985
1988 May 24, 1988
Lets Talk 1990. Toronto Arts Council, 1991.
Lets Talk Report (1987 Lets Talk sessions). Toronto Arts Council, 1988.
Lets Talk Questionnaire (1987 Lets Talk Sessions). Toronto Arts Council, 1987.
City of Toronto Documents
Equal Opportunity Division, Management Services Department, Equality in
Employment. . . RIGHTS for todays workplace. July 1989.
Equal Opportunity Division, Management Services Department. City as a Model: A
Paper prepared for the City of Toronto by the Institute on Women and
Work. (Linda Schachter and Catherine Scott) February 1990.
Health Department. Healthy Toronto 2000. September 1988.
Management Services Department. Review of the City of Torontos Multicultural
Access Program. (Arnold Minors, Arnold Minors and Associates) June 1991.
Planning and Development Department. Arts Policies. Cityplan 91 Proposals
Report June 1991: 381-392.
Municipality of Metropolitan Toronto Documents
The Composition and Implementation of Metropolitan Torontos Ethnic, Racial
and Linguistic Populations. Report Commissioned by Multicultural and Race
Relations Division, Chief Administrative Ofticers Department, March 1990.
Ethno-Racial Access to Metropolitan Services and Establishment of a
Translation and Interpreter Bureau. Report #23 of the Management
Committee, August 1990.
Toronto Arts Council 43
Committees of the Board**
VII. Toronto Arts Council
Organization Chart
Membership
of the
Toronto Cultural
Advisory Corporation*
I
Board of Directors Arts Discipline Committees
k
Vlll. Toronto Arts Council
Cultural Grants Budget 1991
Organizations/ Collectives
Theatre*
Music
Dance
Visual Arts
Film & Video
Literary
Festivals
Interdisciplinary
Interim Grants
Individuals
Choreographers
Writers
Visual Artists
Composers
Theatre Artists
Grants Management
Cultural Facilities
TOTAL BUDGET
1991
Actual Met
$1,440,590
$675,990
350,000
390,512
223,750
31,800
558,800
69,048
264,738
82,700
203,000
180,000
80,000
0
429,577
820,000
5,800,505
% of 1991
Requests
80
75
80
56
83
98
67
62
44
54
17
10
72
41
% of
Budget
25
12
6
7
4
1
10
1
5
1
3
3
7
14
100
Toronto Arts Council
45
IX. Toronto Arts Council
Board and Committee Members
June 1992
Board of Directors
President Margo Bindhardt
Secretary Douglas Barrett
Ayanna Black
June Clark-Greenberg
Anne Collins
Councillor Betty Disero
Mary Lou Fallis
Niv Fichman
Denise Fujiwara
Michael Hollingsworth
Henry Kucharzyk
Da n c e
CoChair Denise Fujiwara
Co-Chair Valerie Wilder
Conrad Alexandrowicz
Anna Blewchamp
Pamela Grundy
Audrey Rose
Rina Singha
Th eat r e
Co-Chair Michael Hollingsworth
Co~Chair Banuta Rubess
Paul Bettis
Claire Hopkinson
Marvin lshmael
Tanja Jacobs
Sue LePage
Daniel Maclvor
Gregory Nixon
Sandi Ross
Vis u a l Ar t s / Film & Vide o
Co-Chair June Clark-Greenberg
Co~Chair Christian Morrison
Michael Balser
Rebecca Belmore
Stan Denniston
Judith Doyle
Cyndra MacDowall
Pas t Pr es iden t Jack Mackenzie
Tr e a s u r e r Montague Larkin
Glace W. Lawrence
Councillor Howard Levine
Christian Morrison
Timothy Porteous
Norman Richmond
Banuta Rubess
lain Scott
Makeda Silvera
Valerie Wilder
Committees
Fes t ivals / Special Even t s
Chair Niv Fichman
Catherine Gregor
Ian Jones
Ali Kazimi
Angela Lee
Leila MacKenzie
Evangelize Wong
Mu s ic
Co-Chair Mary Lou Fallis
Co-chair Henry Kucharzyk
Marion Aitken
Lawrence Beckwith
Brainerd Blyden-Taylor
Rob Bowman
Mark Hand
Annette Sanger
Lorraine Segato
Lit er ar y
CmChair Anne Collins
Co-Chair Makeda Silvera
Mark Czarnecki
Libby Scheier
46 Cultural Equity
SUBMISSION IN SUPPORT OF
1995 CULTURAL BUDGET
TORONTO ARTS COUNCIL
JANUARY 1995
c
URRENTLY there is probably no Canadian manufactur-
ing or resource company that can beat the governments
subsidy/foreign earnings ratio of Cirquede Soleils deal with
Japan and Las Vegas... These successes are strongly related to the de-
velopment of an arts community through government sponsorship;
and this should not be surprising. Arts grants go to people who, by
definition, are involved innovation and who are required to respond
continually to developments in their field. A large percentage of them
are evolving skills around media-related (i.e. service sector) occupa-
tions. Most of them-in music, cinema, theatre and increasingly the
fine arts-have to work (as The Economist wished the business
world would) cooperatively. Paradoxically (and perhaps unfairly)
these people come cheap, given that they count what they do rather
than what they get an important part of their quality of life. They also
seem to be willing to work for an income level that is consistently
lower than that of people with similar educational qualifications
working in other areas, despite the fact that they are often at the
cutting edge of the technological economy (just ask any state-of-the-
art computer or electronics/video company who is trying out their
prototype equipment for them.)
Michael Mackenzie, Artist, United Nations Consultant, Visiting Fellow
at the Woodrow Wilson School, Princeton University.
1
Property taxes paid
by the resident non-
profit arts and
culture community
artists and
organizations-now
total at least $40
million yearly: about
eight times the total
annual City of
Toronto cultural
grants budget
The growing seniors
market for the arts
will lead to strong
gains in admissions
revenues for the
arts and culture in
Toronto over the
next two decades
INTRODUCTION
As the City of Torontos arms length advisor on the arts and culture we are submit-
ting this budget request for 1995. In order to sustain the job-creating growth and the
creative momentum of Torontos non-profit arts and culture community in 1995 we
are requesting $5,531,209, which represents a small increase to the Cultural Grants
Program.
We recommend that the City reinstate $217,857 to the cultural grants base. This
amounts to 34% of the $642,000 that has been cut from the base during 1992, 1993
and 1994. This partial reinstatement is only a 4.1% increase over our 1994 budget
and a freeze to the Administration Program.
City of Toronto
Grants Budgets 1991 to 1995
5.5
r
I
4.8
4.7
4.6
1991 1992 1993 1$94 * Proposed 1995
Overall annual non-
profit sector and
commercial theatre
cash flows in
Toronto have
climbed over half a
billion dollars and
generate total
economic impacts
of over $2 billion
Cultural tourism
now brings Toronto
over $1 billion a
year
7 million people
attend theatre in
Toronto every year,
half of them visitors
and most from the
United States
Why is 1995 the time to partially reinstate cuts to cultural
grants budgets?
1. Organizations and collectives have performed excellently as creators of
employment for the City during the recession, but in so doing have stretched
their resources to the breaking point. The City is in danger of losing produc-
tive groups and the jobs they offer. Over the past decade, audiences for the
arts have more than doubled and numbers of arts organizations have increased
to meet the demand. The population of organizations and collectives receiving
cultural grants-and the jobs they provide-has grown 30% from 189 organi-
zations in 1987 to 307 organizations in 1994. During the same period overall
annual cash flow has increased by $30 million.
Since 1991 this increased number of organizations has shared a shrinking pool
of City-provided resources.
2. Individual artists have always been the bedrock of Torontos success as Can-
adas cultural capital. For at least a century, the City has expressed its support
for individual artists in various waysprizes, awards, and citations-culmi-
nating in the present program of grants to individual artists. However, com-
parisons of numbers of applications with grants yearly awarded tell a discour-
aging story.
Applications vs. Grants Awarded 1994
Visual Artists Writers
Applied Grants Applied Grants
Programs with such low success rates lose credibility. Year after year, TAC
juries have reported that they could have given double the awards that budgets
permitted, and still remained within strict parameters of merit. The budget re-
quested will permit a 5% increase to composers grants, 8% to visual artists
grants, and 8% to writers grants. Even these slight improvements will be of
great value to hard-pressed working artists.
3
Stores and restau-
rants near the AGO
report business
increased between
10-30% during the
Barnes exhibit
Since the Barnes
exhibit opened in
September, an
estimated 100,000
visitors have taken
the TTC to and
from the AGO for a
gain of 200,000
rides over last year
at the same time
At least 56,000
Barnes visitors
came as part of a
package tour and
spent an average of
nearly two nights in
a hotel, 330/. above
expectations of
42,000
1500
1000
500
0
NUMBER OF APPLICATIONS RECEIVED BETWEEN
1991 AND 1994
1994
IN 1993, TAC IN RESPONSE TO 5% BUDGET CUT ($262,000) CANCELLED TWO GRANT PROGRAMS
The Citys response has not kept pace with the effort put forward by our artists and
arts organizations. As the Citys advisors in this area, we wish to draw this to the
attention of City Council and to suggest the time to begin remedial action is now.
B 307 organizations and 145 individuals received $4.7 million in
cultural grants from the City of Toronto through the Toronto Arts
Council in 1994;
B total expenditures were more than $220 million;
B the City contribution levered more than $98 million from other
governments;
B City contribution was matched more than 3:1 by the private
sector;
B There are 15million annual attendances at arts and culture events
in Toronto, not including films and rock concerts;
B Attendances at arts and culture events in Toronto have more than
doubled since 1980.
Cutbacks totalling
$642,000 in annual
cultural grants
budgets since 1991
now cost Toronto at
least 200 full-time
and 800 part-time
new jobs in the non-
profit arts and
culture community
each year. The
modest increase of
a little over 4% for
the 1995 cultural
grants budget will
immediately restore
at least one-third
of these lost
employment
possibilities
HOW CAN THE CITY SUPPORT THE CULTURAL WORK FORCE?
B In Metro and Toronto 1 in 8 jobs is arts and culture related.
B The cultural work force of Toronto, with the non-profit arts and culture com-
munity as its training mainspring, now numbers 160,000 full-time or part-time
workers. By 1996, when new census figures will be available the global total
may well be 200,000.
B Film and television producers originally lured to Toronto by the cheap Cana-
dian dollar have put out the word: the Toronto talent poolperformers,
writers, technicians, suppliers-offers first-class creativity in every area de-
manded by world-class production. Toronto joined New York and Los Angeles
in 1994 as a city hosting more than 1,000 film and major television productions.
B Almost 70 cents of every arts cash flow dollar goes directly into jobs through
salaries, and fees. The arts are the most labour-intensive area of work we
have. Generating a job in the arts in Toronto costs ten times less than in tradi-
tional light industry-roughly $20,000 vs $200,000.
Impact of the Cultural Sector on Jobs
in Metro Toronto 1989-1992
250
Direct +
Indirect Jobs
Other Arts
Related
COST TO GENERATE ONE JOB
Arts Industry
Job Creation in the Arts Is Quick and lnexpensive-Source: Statistics Canada/
Canada Council
5
Ive never had a
grant and Im not
looking for a grant.
But Im dependent
on what arts
granting agencies
do. Over the last
30 years Ive built
an organization of
people who have
come out of the
non-profit sector,
and am now
employing 1,345
people. With
another 10 years
investment in the
arts Toronto could
become an exporter
of major shows
David Mirvish, speaking at
City of Toronto Economic
Development Committee
.
According to StatsCan, the arts and arts-related work in industry and the cul-
tural industries in Toronto now provide more jobs than manufacturing, trans-
portation, the utilities, business services, finance and real estate combined.
DIRECT EMPLOYMENT IN TORONTO
1990 Industry Comparison
Utilities
Transportation
Manufacturing
31,000
Finance
Business Insurance
Cultural
Services Real Estate
Industries
56,000 79,000
160,000
Source: Actual Figures based on 1988 Canada Labour Force study. Assumed no growth through 1990 due
to recession. Numbers rounded.
Source: Estimate based on census direct employment statistics of Statistics Canada, extrapolatad to 1990.
Expenditures Distribution for Toronto
Salaries, Fees & Other Remuneration (66.7%)
Non Profit Arts & Culture
(33.3%) Other Expenditures
B Employment in the cultural sector centred in Toronto increased between 1988
and
-
1992 by 11% at a time when jobs in other sectors of the economy declined
by 9% in the Metro area.
B Jobs in the arts are real jobs, lasting jobs. Isnt it time to start betting on a
winner again?
Toronto Arts
Councils
sponsoring of
ArtWorks, a
summer arts
employment and
training program for
youth, particularly
Black, Asian, and
First Nations
communities has
been hailed by
provincial
authorities as the
most successful
youth program in
the province
Artists of colour
and aboriginal
artists in Toronto
have responded
overwhelmingly
to TACS policies
of inclusion in
decision-making
and the overall
grants process.
Toronto is now
recognized
nationally as a
leader in pro-active
implementation of
cultural equity
When we talk
about what makes
us different from
Americans, we
often refer to our
heaith-care system
or our social safety
net... what really
defines the
difference is... our
culture and the
values and
experiences
expressed in that
culture...
David Crane, Economic
Editor, The Toronto Star
THE CULTURAL VISION
Full employment is necessary to municipal health, but a great city is something more
than a collection of jobs.
Toronto, a city functioning as the heart of Canadas industrial, commercial, economic,
financial, educational and cultural heartland, has recently come in for a healthy share
of international recognition:
. Fortune Magazine rates Toronto as the seventh best city in the world in which
to do business.
B Places Rated Almanac ranks Toronto as the 5th most culturally livable city,
out of 343 surveyed in all of North America.
B UNESCO calls Toronto the worlds most multicultural city!
The dynamic role of culture was important if not central to each of these tributes.
More and more, the shape and thrust of a new and unique Toronto culture is being
formed and nourished by the artists, arts workers, cultural practitioners developing
within our more than one hundred specific cultural communities.
In 1992 TAC adopted Cultural Equity as a guiding principal for a policy of inclusion,
embracing artists and arts organizations based in all of Torontos more than 100
distinct cultural communities. The new policy was welcomed by arts and culture
practitioners, and accelerated participation rates by Black, Asian, First Nations artists
at TAC board, staff, committee and jury levels. In December of 1993, in Toward Full
Inclusion, its guide to productive institutional change, the Canadian Heritage Depart-
ment cited Toronto Arts Council as a model to be studied and followed nationally.
In a recent article in The Toronto Star, Antoni Shelton pointed to the economic indica-
tors that add to the already compelling cultural, social and equity arguments for in-
cluding distinct cultural communities in municipal investment: In a study conducted
by Goldfarb for the Race Relations Advisory Council on Advertising, it is projected
that by the year 2001, visible minorities will have projected per capita Gross Domestic
Product of almost $55,000, thus representing more than $300 billion combined pur-
chasing power.
Despite diminishing budgets, TAC has invested in successful and low-cost programs
such as Fresh Arts, Native Women in the Arts, Black Artist Service Organization.
Exciting new groups are now demonstrating that the Toronto policy of inclusion
works. These evolving groups represent the kind of truly exciting cultural diversity
that will change forever Torontosand the world svision of our City. The cultural
future is shaping itself and we must be ready, as a City to respond productively to its
challenges and opportunities. The small budget increase requested by TAC will
provide us with a measure of budget flexibility to respond to this exciting challenge
which will return significant cultural, community and economic benefits to our city.
During 1992, the
professional
performing arts in
Toronto outdrew
of all attendees
went to the arts
versus 370/o for
sports
The theatre,
galleries and
museums, dance,
opera and
symphony have
draped the city with
a cultural fabric that
is among the
broadest in North
America. When we
have a film festival
or a great art exhibit
like the Barnes, or a
play, what were
really doing is
layering the city
with attractions.
Adam Mayers,
Business Reporter,
The Toronto Star and
quoting David Mirvish
ECONOMIC IMPACT
We Have To Invest To Compete
The performing arts in Toronto, excluding commercial music, now produce total
annual economic impact in excess of $2 billion.
In 1989 the sector produced 3.2% of Ontarios gross domestic product and a
provincial cash flow of $9 billion, with $7 billion of this in Toronto. New data,
which will be updated in 1995 and in 1996 as part of census activity, will show
impressive gains here.
76% of all arts and culture production in Ontario happens in Toronto. In 1989 this
activity produced further economic impact here of $6 billion. The annual total is now
much higher, but up-to-date information on current levels is not yet available.
Toronto Non-Profit Arts and Culture SectorTotal Cash Flow
All of this production is based primarily on the creative efforts of the Toronto
pool of artistic talent now ranked as one of North Americas three greatest: New
York, Los Angeles, Toronto. L.A. recently quadrupled its arts-support budget to
$25 million; New York, in 1990, provided grants support of $90 million.
Economic Impact of the Cultural Sector
in Metro Toronto on GDP, 1989-1992
Direct Impact
Combined Direct &
Indirect Impact
Toronto has become
the third-largest
theatre centre in the
English-speaking
world, after New
York and London,
with annual gross
revenues of
$150,000,000 (Us.)
-compared with
$300,000,000 for
London and
$345,000,000 for
New York
During 1994,
film and television
producers spent
in Toronto a
record total of
$489 million, 54%
more than 1993s
previous high of
$317 million
City of Toronto Film snd
Television Office
arts and culture community equal at least $40 million annually.
B Cultural tourism brings Toronto $1 billion in visitor spending each year.
Many travel agents in border states of the USA now prefer to send their clients
to Toronto rather than New York City for a rewarding, exciting cultural
experience.
Non Profit Arts in Toronto
Sources of Overall Revenue 1991-1992
(150% Other Income
(17.60%$ MCTR
B Social scientist/economist J. Marc Davidson Schuster of the Massachusetts
Institute of Technology tells us that the ability of a resident artistic community
of artists and arts organizations to attract non-municipal support from other
levels of government and the private sector depends primarily on the numbers
of artists and arts organizations resident in the municipality. Simply by being
here, living here, working here, Toronto artists bring into the core community
cash flows of more than $100 million in subsidies annually. Every penny of
this goes to reduce ticket prices and other user fees for Torontonians and
visitors from other parts of Metro, the GTA and elsewhere.
The costs of
cost-cutting are not
immediately
apparent: but they
can be devastating
over the medium
and long term...lf
there is any lesson
in the past 20 years
of business activity,
it is that without
innovation, vision,
the future is
mortgaged...lt is
important to realize
that cost-cutting is
not a business
strategy, but a
consequence of not
having one.
Progressive
business leaders
understand this
John Dana Costa,
business consultant,
writing in The Globe and
Mail
1995 REQUEST: THE CULTURAL GRANTS BUDGET
The Board of Directors of the Toronto Arts Council is requesting:
$4,944,055 1995 Cultural Grants Program
587. 154 1995 Administration Program (unchanged from 1993 and 1994)
$5,531,209 1995 Toronto Arts Council Cultural Grants base budget (as
compared to 1992 base budget of $5,762,707)
The Toronto Arts Council appreciates that the benefits of the present economic
recovery will take time to be translated fully into significantly improved tax revenues
for the City of Toronto.
Nevertheless, TAC considers that our best possible advice to City Council at this
time as to how most effectively to protect and enhance the Citys investment in
Torontos non-profit arts and culture sector is to provide the small increase recom-
mended in this report.
The recommended partial reinstatement of the cultural grants base will enable TAC
to implement modest encouragement incentives averaging 5% for organizational
sectors and 7% for individual artists.
In 1992, the cultural grants budget represented 1.78% of the general levy. Budget
cuts reduced the 1993 cultural grants budget level to 1.62% and in 1994 to 1.58% of
the general levy. The recommended 1995 budget will represent 1.65% of the general
levy, approximately the same as 1993s level but still below the 1992 level.
CULTURAL GRANTS BUDGET AS A PERCENTAGE
OF ANNUAL GENERAL LEVY
I would like to
thank the Toronto
Arts Council for
supporting the
Dancing the
Goddess project
when it was only an
idea in my mind and
so many words
on paper. The credit
is to be shared all
around...we
achieved an
audience attendance
record of 960/.
(five of the six
performances were
sold out)
Patricia Beatty,
recipient 1990 Grants to
Choreographers
Toronto can be a
wonderful city for
writers; while I was
raised in Winnipeg
(and still love it), I
have chosen
Toronto as my
home precisely
because there is an
environment here
which promotes and
develops creative
production. Hats
off to the Council
for establishing this
new grant. We
really do need all
the help we can get
Rhea Tregebov, recipient
1987 Grants to Writers
CONCLUSION
Community, Culture and Commerce
Amid all the good news about the arts, TACS most recent analysis of medium-
term economic trends provides some disturbing new information. During the three
years beginning in 1989, arts and culture community economic growth slowed,
stopped and began very slightly to decline. In 1992, the arts experienced the
beginnings of recovery along with other economic sectors. But three precious
years of budget expansion have been lost. In 1995, we will be lucky if the Toronto
arts economy equals 1991-92 levels of activity.
Consultations with artists and their organizations indicate that the resources of the
community are stretched to the point of breaking. The danger is that, having
survived the worst of the recession, parts of the community will find they have
used up, in simply staying alive through a difficult period, all the reserves of
energy and imagination they require to regain missing impetus and growth. Full
details will be available in TACS forthcoming update to Financial Trends.
However modest the increase to the arts and culture budget the non-profit arts and
culture community of Toronto urgently needs a 1995 vote of confidence. In a
front-page editorial, The Toronto Star recently stated that Torontos future success
as a city will be based on community, culture and commerce. With City participa-
tion, the non-profit arts and culture network of Toronto will continue its signifi-
cant role in all three areas.
11
I believe (Loud
Co/ours) is an
appropriate work to
showcase at the
Worlds Fair in
Osaka because it
represents Toronto
and Ontario as part
of a pluralistic
society...l hope you
will be proud to
have the Toronto
Arts Council
credited for its
support of this work
at the Worlds Fair
90 in Japan
Denise Fujiwara,
recipient 1989 Grants to
Choreographers
What seems to be
different about
Canada is that the
best talent doesnt
necessarily
always rush off to
Hollywood at the
first opportunity.
Weve seen some
extraordinary
people, and again I
have to say, this is
not hype. We have
done two major
casting sweeps
and weve seen
people of such
extraordinary
quality and its
been a delight to
cast the show
[Tommy in
Toronto].
Pete Townshend,
interview with Peter
Gzowski, Morningside
ADDENDA
A. Statement of Basic Function
The Toronto Arts Council advises the City of Toronto on the allocation of
cultural grants and on municipal policy regarding arts and culture in general.
B. Budget Overview Statement
The requested amount of $5,531,209 reflects:
i) reinstating 4.1% of the cultural grants base, approximately one-third
of the cuts to the Toronto Arts Councils budget since 1991;
ii) a continued freeze on the TACS administration budget.
Toronto Arts Councils budget request mirrors the Citys attempt to maximize
reduced dollars in order to continue existing services and to meet new demands
within a changing environment.
Anne Collins, President
On behalf of the Board of Directors
12
June 1995
TORONTO ARTS COUNCIL
BOARD OF DIRECTORS
Anne Collins
President
Margo Bindhardt
Past President
Diana Cafazzo
Secretary
Sam Marinucci
Treasurer
Miriam Adams
Brainerd Blyden-Taylor
Darrell Calvin
Barbara Carey
June Clark-Greenberg
Stan Denniston
Paul de Silva
Councillor Betty Disero
Writer and editor. Member of Writers Union of
Canada.
Chairman and Past President, Canadian Opera
Company; trustee and Past President, Art Gallery of
Ontario; First Vice-President, Toronto International
Festival; past board member of Ballet Opera House
Corporation, Toronto Arts Awards and Young
Peoples Theatre.
Lawyer. Partner, McMillan, Binch: specialist in the
area of media, entertainment and communications law.
Chartered accountant. Former treasurer of the
Canadian Music Centre.
Former dancer, teacher, choreographer, performance
artist. Co-director of Dance Collection Danse.
Member of the Board, Toronto Artscape and Judy
Jarvis Dance Foundation. Past Board member, Dance
Umbrella of Ontario and Dancer Transition Centre.
Music Director of Orpheus Choir of Toronto. Former
Music Director of St. Pauls Anglican Church.
Events consultant, Youth Assisting Youth. Senior
Management, Performing Arts Society. Board
member, Miami Film Festival; member, International
Society of Performing Arts Administrators; past
member, New York Drama Desk. City appointment to
TAC Board of Directors.
Poet and critic. Managing Editor of Books in Canada.
Visual artist. Fine art teacher, University of Guelph;
co-founder, Womens Photography Cooperative; past
director, Winters College Art Gallery, York
University.
Visual artist. Member, Artists Cooperative of
Toronto; founding director, YYZ Artists Outlet;
organizer for Independent Artists Union. Independent
artist member of CARFAC Copyright Collective
Committee.
Filmmaker and broadcaster. President and Executive
Producer, Jenfilms Inc.
City Councillor for Ward 12. City appointment to
TAC Board of Directors.
Mary Lou Fallis
Patrick Gossage
Ian Graham
Danny Grossman
Michael Hollingsworth
Peter Jacobsen
Sandra Laronde
Glace W. Lawrence
Jim Leech
Sue LePage
Leila MacKenzie
Councillor Pam McConnell
David Rothberg
Makeda Silvera
Molly Thorn
Soprano. Appears regularly as guest soloist with
Canadian symphony orchestras and in numerous
oratorio engagements.
President, Media Profile public relations and corporate
affairs group.
Managing Partner, Quantum Mortgage Advisors Inc.
City appointment to TAC Board of Directors.
Choregrapher, dancer. Founder and Artistic Director,
Danny Grossman Dance Company.
Playwright, director. Founding director,
VideoCabaret.
Civil litigation lawyer. Partner, Paterson,
McDougall. Specialist in the area of administrative
law.
Actor, cultural activist. Founder and director, Native
Women in the Arts.
Film/video maker. Founding member of Black Film
and Video Network, CAN: BAIA, and Full Screen film
& video makers of colour coalition.
President, CEO and Director, DISYS Corporation.
Past Chairman of the Board, Canadian Stage
Company.
Set and costume designer for theatre, opera and dance.
Member and past Executive Committee member of
Associated Designers of Canada.
President, Park Med Laboratories. Member of
numerous Boards including Toronto Symphony and
Dixon Hall Community Centre.
City Councillor for Ward 7. City appointment to
TAC Board of Directors.
Investment broker, Friedberg Mercantile Group. City
appointment to TAC Board of Directors.
Writer. Managing Editor, Sister Vision Press.
Former editor, Fireweed Feminist Journal.
Associate Director of New Work Development,
Tapestry Music Theatre. Former General Manager
and Creative Director, Elephant Records. Long-time
association with Alumnae Theatre as actor, director
and administrator.
July 17, 1994
Glace W. Lawrence
Co-Chair
Paul de Silva
Co-Chair
Maria Angelica Enriquez
TORONTO ARTS COUNCIL
FESTIVALS & SPECIAL EVENTS COMMITTEE
Roger Gibbs
Lynn Hill
Alberta Nokes
Rocky Paul-Wiseman
Andrey Tarasiuk
Film/video maker. Founding member of Black Film
and Video Network, CAN: BAIA, and Full Screen film
& video makers of colour coalition.
Filmmaker and broadcaster. President and Executive
Producer, Jenfilms Inc.
Community worker, Centre for Spanish Speaking
People. Member of Board, Harbourfront Centre. Has
been involved in organizing a number of festivals and
exhibitions including Fiesta del Sol and Safe Haven at
the ROM and Reel Aboriginal at Harbourfront.
Calypsonian, a.k.a. Rajiman. Founder and Music
Director of Banja, a folk choir which performs
Caribbean and African folk.
Curator. Assistant Curator/Programmer,
Contemporary First Nations Art, McMichael Canadian
Collection. Former Education Resource Coordinator,
Woodland Cultural Centre.
Consultant in the areas of strategy, communications,
marketing and fundraising. Ms Nokes has worked
with numerous cultural organizations including the
Design Exchange, Art Gallery of Ontario, the Glory of
Mozart Festival, Elgin and Winter Garden Theatres,
Toronto Symphony, and the Stratford Festival.
Director of Eduction, Canadian Native Arts
Foundation. Member, International Network for
Indigenous Development in the Americas. Co-Chair,
Centre for Indigenous Theatre. Member, Committee
for the 50th Anniversary of the United Nations.
Artistic Producer, Theatre Direct Canada; Artistic
Director, Chysta Productions. In addition to his work
in theatre, Mr. Tarasiuk has produced and directed a
number of festivals and heritage celebrations across
Canada. Board member, PACT and TTA.
April 1995
TORONTO ARTS COUNCIL
DANCE COMMITTEE
Miriam Adams
Co-Chair
Danny Grossman
Co-Chair
Carol Anderson
Bengt Jorgen
Learie McNicolls
Alejandro Ronceria
Vivine Scarlett
Holly Small
Laura Taler
Former dancer, teacher, choreographer and
performance artist. Co-director of Dance Collection
Danse. Member of the Board, Toronto Artscape and
Judy Jarvis Dance Foundation. Past Board member,
Dance Umbrella of Ontario and Dance Transition
Centre.
Chorographer, dancer, teacher. Artistic Director and
founder, Danny Grossman Dance Company. Adjunct
Professor, Department of Dance, York University.
Choreographer, dancer, writer, teacher. Former
Artistic Director of Dancemakers.
Choreographer, dancer. Artistic Director, Ballet
Jorgen. Resident Choreographer, George Brown
College.
Choreographer, dancer. Formerly a senior dancer
with Toronto Dance Theatre. International work
includes Limbs Dance Company of New Zealand and
Hong Kongs City Contemporary Dance Company.
Choreographer, dancer. Choreographer includes The
Jaguar Project presented at the Native Canadian
Centre and the Concert for Indigenous Restoration
produced at the Royal Alexandra Theatre.
Choreographer, dancer. Performs and teaches African
and African-derived dance. Former Artistic Director,
Usafiri Dance & Drum Ensemble. Cross Cultural
Coordinator, Dance Ontario/DanceWorks.
Choreographer, dancer, teacher. Assistant Professor,
Department of Dance, York University.
Choreographer, dancer, producer. Founder and
Artistic Producer, The Taler Group. Producer,
Dances for A Small Stage.
December 1994
Barbara Carey
Co-Chair
Makeda Silvera
Co-Chair
Layne Coleman
Ramabai Espinet
George Gait
Lenore Keeshig-Tobias
TORONTO ARTS COUNCIL
LITERARY COMMITTEE
Poet and critic. Managing Editor, Books in
Canada.
Writer. Managing Editor, Sister Vision Press.
Former editor, Fireweed Feminist Journal.
Writer, director, actor. Founding member and past
Artistic Director of 25th Street Theatre, Saskatoon.
Past Artistic Director of Theatre Passe Muraille.
Poet, fiction and essay writer; critic and educator.
Published works include the collection of poetry
Nuclear Seasons and the childrens book the Princess
of Spadina. Member, League of Canadian Poets.
Critic, journalist, editor and author of two non-fiction
books Trailing Pythagoras and Whistle Stop. Member
of the Board, Writers Development Trust. Past Board
member, Canadian PEN.
Writer, storyteller. Member of Writers Union of
Canada. Founding member and chair of the Racial
Minority Writers Committee of the Writers Union.
Her childrens book Bird Talk won the 1993 Living
the Dream Book Award.
March 1995
TORONTO ARTS COUNCIL
THEATRE COMMITTEE
Michael Hollingsworth Playwright, director. Founding director,
Co-Chair VideoCabaret.
Sue LePage Set and costume designer for theatre, opera and
Co-Chair dance. Extensive design experience across Canada
including NDWT Theatre Co,, Stratford Festival and
Tarragon Theatre. Member and past Executive
Committee member of Associated Designers of
Canada.
Hrant Alianak
Maja Ardal
Jerry Longboat
ahdri zhina manadiela
Darren ODonnell
Alisa Palmer
Nadia Ross
Edward Roy
Jean Yoon
.
Playwright, director, and actor.
Director, playwright. Artistic Director of Young
Peoples Theatre. Founder and Artistic Director of
Saga.
Actor, storyteller. Graduate, Native Theatre School.
Member of Board, ANDPVA (Assoc. for Native
Development in the Performing and Visual Arts).
Director, writer, actor, filmmaker, recording artist,
Artistic Producer of b current.
Writer, director, performer, choreographer. Artistic
Director, Mammalian Diving Reflex. Former Artistic-
Director, Pow Pow Unbound.
Performer, writer, director. Artistic Co-director,
Nightwood Theatre. Co-Artistic Director, Froth.
Member of the Board, The Theatre Centre and Equity
Showcase.
Actor, director, writer. Founder and Artistic
Director, STO Union.
Writer, director, actor. Artistic Director, Topological
Theatre. Member of the Board, Toronto Theatre
Alliance.
Writer, director. Former Co-Artistic Director,
Cahoots Theatre Projects and Cross Cultural
Coordinator, Theatre Ontario.
January 1995
TORONTO ARTS COUNCIL
MUSIC COMMITTEE
Brainerd Blyden-Taylor
Co-Chair
Mary Lou Fallis
Co-Chair
Derek Andrews
Dong-Dong Dong
Beverly Glenn-Copeland
Paul Gravett
Amos Key
Ann MacKeigan
Edgardo Moreno
Linda C. Smith
Chiyoko Szlavnics
.
Music Director of Orpheus Choir of Toronto.
Former Music Director of St. Pauls Anglican Church.
Soprano. Appears regularly as guest soloist with
Canadian symphony orchestras and in numerous
oratorio engagements.
Music Programmer, Harbourfornt Centre. Founder
and President, Toronto Blues Society. Board member,
MAP (Music Alliance Project). Chair, Juno Awards
Roots & Traditional Committee for CARAS.
Pianist, teacher. President, Toronto Canadian Chinese
Artists Centre.
Songwriter, vocalist and childrens television
entertainer. Classically trained, she turned to popular
songwriting to express her interest in diverse musical
styles.
Vocal and instrumental accompanist and coach.
Artists, representative, Hart/Murdock Artists
Management.
Speaker and Founder, CKRZ 100.3 FM Community
Radio Station. Producer and on air personality, The
Real Blues Hours and Gayowah on CKRZ.
Producer, CBC Radio Music. Chair, Juno Awards
Global Advisory Committee for CARAS. Board
member, MAP (Music Alliance Project).
Composer, musician, teacher. Member of Nazka.
Board member, Latin American Artists Network.
Composer, musician. Performer and creator in the
Urge project. Past Artistic Director, Arraymusic.
Composer, musician. Instruments: flute,
soprano/alto/tenor saxophones. Member of
Hemispheres. Programmer/host of a weekly jazz
program on CKLN.
January 1995
June Clark-Greenberg
Co-Chair
Stan Denniston
Co-Chair
Shonagh Adelman
Hussain Amarshi
Rebecca Baird
Millie Chen
Robert Houle
Louise Liliefeldt
David McIntosh
TORONTO ARTS COUNCIL
VISUAL ARTS/FILM & VIDEO COMMITTEE
Visual artist. Fine art teacher, University of Guelph;
co-founder, Womens Photography Cooperative; past
director, Winters College Art Gallery, York
University.
Visual artist. Member, Artists Cooperative of
Toronto; founding director, YYZ Artists Outlet;
organizer for Independent Artists Union. Currently
active as independent artist member of CARFAC
Copyright Collective Committee.
Visual artist and cultural critic,
Cultural worker in the film and video sector. Founder
and Director of Mongrel Media distribution company.
Past experience includes a year as Executive Director
of the Euclid Theatre. Board member, Desh Pardesh.
Past Board member, Ontario Film Development
Corporation.
Visual artist. Her installation work is known for its
technical innovation uniting native art with modern
social commentary.
Visual artist. Member of The Red Head Gallery,
Name 10 parts of the body, and Another bunch of
artists.
Visual artist. Teacher of Native Studies, Ontario
College of Art Board member, ANDPVA (Assoc. for
Native Development in the Performing and Visual
Arts)
Performance/installation artist. Member of Shakewell
Performance Art Collective. Has acted in a number of
films and videos, including Wasaga.
Filmmaker, curator and critic. Coordinator of the
Perspective Canada Committee, Toronto International
Film Festival; former programmer, Cinematheque
Ontario; former director, Funnel Experimental Film
Centre.
TRUSTEE DAVID J. MOLL
CHAIR
September 26, 1995
Anne Golden
Greater Toronto Area Task Force
393 University Avenue
20th Floor -2001
Toronto, Ontario
M5G 1E6
Dear Anne Golden:
155 COLLEGE STREET
TORONTO ONTARIO M5T 1P6
397-3166
Further to our meeting of September 19, 1995, I am enclosing our reports to the Commission
on Planning and Development, which were essentially ignored by that Commission. At the
present time, the Toronto Board of Education has developed a reasonable working relationship
with this local council in the area of planning. However, this has not come about without
considerable difficulties,
I hope the above is of interest to you.
Yours truly,
DAVID J. MOLL
Chair
enc.
Pr esen t a t i on
t o
COMMISSION ON
PLANNING AND
DEVELOPMENT
REFORM
IN ONTARIO
Toronto Board of Education
1 9 9 2
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
June 2, 1992
PRESENTATION
Commissioner Sewell, Commissioner Vigod, Commissioner Penfold, thank you for the
opportunity to address the Commission this afternoon.
The Toronto Board of Education is committed to ensuring that the needs of children
are met within our City. We believe that urban environments are becoming even more
hostile to children as green spaces are lost forever and safe play areas become rare.
We must use the opportunity provided by the work of this Commission to redress and
redirect our priorities so that children come first.
Land use planning in municipalities is t ypica lly devot ed t o such matters as municipal
services, transportation corridors, environmental matters, built form, development
and redevelopment of land, and processes for consultation. The Planning Act speaks
to issues such as the equitable distribution of educational. health and other social
facilities as matters of provincial interest; and to community improvement plans,
parks, or other public recreation purposes as a matter of municipal interest.
These guidelines are critical to the well-being of society. At our Board meeting on
May 28, 1992 we discussed the lack of safe play space in many areas of Toronto for
children to expend their seemingly endless supply of energy. While we work
toward the creation of more green space, perhaps now is the time to consider the
closing of some streets to provide a safe place for children to play.
-2-
With reference to the Commissions draft goal to make efficient use of new and
existing infrastructure and common services while protecting physical and cultural
heritage and the natural environment with the policy direction that most new
development should occur on lands served by commercial or public water and sewage
infrastructure, I regret that there is no mention of the need to preserve areas for
children to play safely. Intensification of housing almost certainly means more
children and unless we address issues such as play areas for children, school
accommodation, and community services within developed urban communities, our
social fabric will be at risk. Intensification, without the appropriate social
infrastructure, will create horrendous problems for all of us, but particularly for
our children.
In the City of Toronto, school buildings and school play areas are valuable resources
for the community. Indeed, our play areas can be considered as an extension of the
park areas. In some instances, the City and Board have shared in the development
of play areas and community facilities on Board land and where possible adjacent
lands owned by the City and the Board. However, we are approaching a crisis
because of the lack of suitable school accommodation and the lack of appropriate play
space for our student population. Our Board is faced with the need to address a
space deficiency of approximately 400 classrooms. This is equivalent to twenty - 20
room schools ! In some areas of our City, such as the Bloor Junction, there is no
land available to build a school even if we had the $12-15 million dollars to acquire
land and to build one.
-3-
Play space for children in the community and school accommodation needs must be
part of our collective consciousness so that these needs become intrinsic to the
planning process. I am pleased to note that you have identified in #21 of your Goals
and Policies that Additions to urban areas will be made only if . . . a long range
municipal plan for the development and funding of infrastructure and servicing for
the area has been completed. . .
" Schools and play areas need to be incorporated in
this policy statement to highlight their importance.
Our staff participated in the preparation of The Public School Boards in Metropolitan
Torontos brief to this Commission and the Toronto Board endorsed this brief at its
meeting on May 28, 1992. It is therefore not my intent to reiterate its contents but
rather to focus on four (4) issues of specific relevance to the provision of public
school facilities in the City of Toronto.
The first issue is equity. We are particularly sensitive to the need to provide an
equitable educational experience to all students in our system. Our ability to do this
has been strained in recent years as Ministry of Education initiatives, such as the
reduction of class sizes in the primary division and the provision of special education
classes for students in need, have combined with a steady increase in elementary
student enrolment to drastically reduce the instructional space available system-
wide. In many of our schools, lack of space relegates classes and programs to
substandard non-instructional rooms, including basements and windowless spaces.
At other schools, portable classrooms occupy scarce playground space. It should
be noted that our average elementary school site is just 3.5 acres or 30 percent less
-4-
than the minimum 5 acres recommended by the Ministry of Education. This average,
however, obscures the reality. One of our downtown schools, Niagara Street P.S. ,
has only 16,500 square feet of outdoor play space (approximately 1/3 of an acre) for
230 children. Recess and lunchtimes must be staggered to accommodate the children.
Our only means of providing green space was to use artificial turf! Other schools
such as Rose Avenue P.S. , Church Street P.S. , and
deficiencies in play space. Even with these deficiencies,
designated for a building expansion to accommodate the
My reason for mentioning these facts is to highlight why
Pauline P.S. have similar
these small sites have been
increase in students.
we have endorsed changes
to the Planning Act which call for specific reference to schools and school
accommodation as matters to be taken into serious account by the Minister of
Municipal Affairs, the Minister of Housing, and by municipalities. We believe that
educational facilities are a fundamental element of sound planning and that all
approving authorities should be directed to consult with School Boards so that
student and school needs are considered at least of equal importance to municipal
services, such as water, sewers and electricity.
The issuance of a Provincial Policy Statement identifying school facilities as a matter
of provincial interest and changes to appropriate sections of the Act to reflect
this, would, we believe, highlight the adequacy of schools and school accommodation
and play
judged.
space for children as criteria by which development applications should be
The expansion of Section 34 (5) to include school facilities as a matter for
which a municipality may consider action to prohibit or delay a development would
provide the teeth needed to ensure that the school facilities issue could be
decisive. We feel strongly that, in certain circumstances, the City of Toronto would
-5-
be acting reasonably and responsibly in prohibiting residential development where
approval would result in the inability of a local board to provide school
accommodation and adequate play space.
In addition to identifying the adequacy and availability of school accommodation as
a matter of provincial interest , we suggest that the proposed Provincial Policy
Statement direct municipalities to include, in the preparation of their official plans,
policies which specify how land use decisions which permit additional housing
interconnect with the provision of community services and facilities, especially
schools and play space for children. A Policy Statement such as this is consistent
with one of the objectives of your work, specifically the broadening of the traditional
scope of planning to more effectively integrate other concerns into land use
considerations. We further suggest that the consultation and cooperation that would
be required between municipal and school board staff, and Ministry of Housing and
school board staff, to develop such integrated policies would address another of your
objectives: the clarification of the relationships between various levels of
government, to ensure that agencies in the public sector work together rather than
at odds."
The second issue is early notification. The Toronto Board of Education endorses the
recommendation that formal notice of all residential development be provided to
school boards. We view early notification as further acknowledgement of the
importance of schools and school facilities in the overall planning of a municipality.
The efforts of the City of Toronto to include Board staff and elected officials in
matters related to school accommodation, such as those dealing with land use policy
reviews (eg. Cityplan'91 ); major changes in land use (eg. the Railway Lands); and
-6-
site specific reports on residential developments are a good beginning. The
continuation and expansion of these efforts by the City, coupled with changes to the
notice provisions to ensure that developments that may impact upon the Board are
brought to our attention, would improve our long range planning ability and would
assist in the identification and resolution of school space needs.
The notification issue is particularly relevant in Toronto since residential
construction consists largely of redevelopment projects-sites occupied today by
parking lots, derelict buildings, or commercial/industrial operations. This results
in a much less predictable planning process than the "greenfield" development
characteristic of suburban areas. Finally, we believe that early notification speaks
to one of the terms of reference of the Commission: to suggest improvements to the
efficiency of the land use development and development review process.
The third issue is the possibility of raising funds for renovations, additions to, and
in some instances new schools, to accommodate students resulting from the
incremental growth from residential developments or redevelopments. Across
Toronto the number of additional classrooms required is significant although the
need at a particular school may be only one or two classrooms. We have identified
a number of infill developments, which are encouraged by the Ministry of Housing
initiatives to support the creation of affordable rental units. The City of Toronto's
Main Streets initiative will, we suspect, likewise add incrementally to Torontos
housing stock and most certainly to the number of children in our schools. We
therefore endorse exploring the feasibility of a levy similar to the parkland
dedication under section 42 of the Planning Act, whereby a contribution is collected
on a comprehensive basis from all developments.
-7-
The final issue centres on changes to a buildings use and occupancy which may
significantly change the pupil yield. I refer here to projects which may originate as
seniors buildings or adult lifestyle condominiums, then subsequently evolve into
family-oriented or even social housing projects as has occurred in the St. Jamestown
area. Potential exists for our staff to evaluate a development application based upon
certain expectations, an evaluation which may require significant re-thinking should
changes occur at later stages of the planning process. The Toronto Board supports,
therefore, the proposal that consideration be given to an amendment to the Planning
Act or its regulations which would ensure that school boards are notified of changes
to the use or occupancy of a building which may significantly affect our evaluation
of its impact on our students and their school accommodation needs.
In summary, we believe that:
School accommodation needs of students and the need for safe play areas for
children must be given the same consideration as municipal services;
Consultation and information sharing between School Boards and
Municipalities, and School Boards and the Ministry of Housing need to be
expanded if we are to encourage cooperation, partnership and consideration
in planning undertaken by the province, municipalities, public
bodies and private interests - one of the purposes that your Commission has
proposed for inclusion in the Act;
The unique nature of School Boards within an urban community is such that
a mechanism is needed to address the funding of small additions to schools or
even new schools due to the incremental and cumulative effect of students
from large and small developments; and
-8-
The unique nature of School Boards within urban communities is such that a
mechanism is needed to regulate the use or occupancy of a building such that
changes are only permitted when the effect of such changes are addressed.
On behalf of the Toronto Board Education I thank you for your attention, and look
forward to the inclusion of these concerns in your report. I would be happy to
answer any questions that you might have.
a:sewlpsnt. rrs
Presentation
to
COMMISSION ON
PLANNING AND
DEVELOPMENT
REFORM
IN ONTARIO
Toronto Board of Education
1993
PRESENTATION
Commissioners Sewell, Vigod, Penfold, thank you for the opportunity to address the
Commission this morning.
I was pleased to note that the remarks of School Boards and; in particular, the issues
raised by our Board and the other Boards within Metropolitan Toronto have been
identified in your Draft Report, Although the issues have been identified, my comments
this morning seek to strengthen the wording proposed in your Draft Report, including
those issues infection 10 -Other Issues which you have stated were beyond the mandate
of your Commission.
In the Boards presentation on June 2, 1992 we identified early notification as an issue
which would allow Boards and municipalities to work together for the ultimate benefit of
their community. In Toronto, we have developed an arrangement which addresses this
concern. However, we believe that the permissive wording notice should be given to
boards of education proposed in Recommendation #74, and as further clarified on pages
71-72, Section 8, needs to be amended to read notice shall be given to boards of
education, thereby making notification mandatory. It is imperative that boards of
education and municipalities co-operate in the timely provision of community services
-2-
(including schools) for a new community or intensification within an existing community.
Early notification is a necessary component in ensuring that facilities to service the new
or expanding community are possible or, better still, in place. Therefore, we request
in the Final Report the word should be changed to shall in Recommendation #74
that
and
any supporting text referring to notice by the municipality to boards of education. It is
vital that the Commission recognize that many established communities, including the City
of Toronto, do not have an existing over-capacity of student accommodation that can meet
the need for new student places that inevitably accompanies development. We are
frustrated that planners, developers, and sometimes even Commissioners assume that
facilities are available in established communities when they are not. Our frustration is
quickly turning to anger because in the end, it will be our inner city children and those
students who are at risk who will pay the price for the folly of experts who make faulty
assumptions rather than undertake an examination of the facts.
Your Draft Report has identified an important new concept - Strategic plans - Section
B. (pp. 53-54). This has possibilities, and I am particularly pleased with the second
objective - It should be participatory and involve the public. The strategic plan exercise
should be seen as an opportunity for council and municipal staff to work with the
community, including business, social, and community leaders, as well as with other
government agencies such as boards of education. Common goals and objectives should
be identified so a course of action can be agreed upon and resources can be used
cooperatively.
-3-
Your concept does not go far enough. You suggest that municipalities be encouraged to
establish strategic plans and that these strategic plans not be legally enforceable, except
where a municipality wishes to give legal authority by including the goals, policies and
options articulated in the strategic plan in the municipal plan. In our June 2, 1992
presentation, we stated that school accommodation needs of students and the need for
safe play areas for children must be given the same consideration as municipal services.
In order to ensure that the required infrastructure is in place for new or expanding
communities, the municipalities and boards of education must agree upon a plan of action.
I believe that the strategic plan exercise is important and hence should not only be a
mandatory requirement but also be incorporated in the municipal plan. It is not
appropriate for us (province, municipalities and boards of education) to continue to permit
new residential development or residential intensification without giving due consideration
to the resources required to service and sustain such growth. I cannot agree with the
statement under Other Issues - School Boards (p.80) that school boards should only
comment on development proposals but that decisions should be made by municipalities.
This guarantees that inequities will be institutionalized. I
same section where you state It is also clear that boards
favour your comments in the
need to undertake long-range
planning in conjunction with municipalities, and together they should consider innovative
approaches to providing school sites and facilities. You are quite right that common
goals and objectives should be identified so a course of action can be agreed upon and
resources can be used cooperatively.
We therefore request that in the Final Report you
incorporate a requirement for a Strategic plan for community services into the municipal
-4-
plan as a mandatory requirement and further expand on the need for municipalities and
boards of education to work in a collaborative and co-operative manner to identify the
goals and objectives in providing adequate school facilities for the expanding community.
And where such facilities cannot be provided because of lack of a suitable site or the
financial resources for construction, a moratorium be placed on development.
I was disappointed that no mention was made of the concern raised in our June 2, 1992
presentation regarding changes to a buildings use and occupancy. This concern could
be addressed in the strategic plan and therefore lends more weight to our request that the
strategic plan form part of a municipal plan.
It is unclear whether the statement
legislation require municipalities to
provision of educational facilities.
on page 80 - The Commission recommends that
have policies in the municipal plan addressing the
Such a requirement would ensure that reasonable
consideration is given to providing schools (and not just sites) in areas designated for
.
development or redevelopment. - is included in Recommendation 26, One section of
Recommendation 26 states that upper-tier municipalities should be required by the Act to -
Plan and coordinate regional infrastructure, including transportation, water, and sewage
treatment, Further reference to this is found on pages 55-56 where Upper-tier municipal
plans should address and contain policies on...(K) supporting infrastructure including:...(v)
the provision of educational... facilities, I believe that educational facilities are equal to
if not of greater importance than, transportation, water and sewage treatment, and thus
-5-
request that the aforementioned section in Recommendation 26 be modified to include
educational facilities.
As I stated earlier, it is essential that municipalities and school boards work together to
ensure that community facilities are delivered in a timely fashion. I am concerned that
the Municipality of Metro Toronto (upper-tier) is too far removed from the myriad of
development activities within each of the municipalities. Within the City of Toronto
(lower tier), we have identified over 200 proposed residential developments ranging in size
from the 6,900 units proposed for the Railway Lands to developments of 6 units
(developments of less than 6 units are not analyzed). It is important to consider not only
the impact of these individual developments and their cumulative effect but also to
establish a strategy to provide the school facilities which the students from these
developments will require. I believe that the permissive nature of recommendation 28
regarding lower-tier plans is inadequate to address educational needs, and therefore
propose that the Commission consider the following as an additional recommendation
immediately after Recommendation 27:
Lower-tier municipalities within the Municipality of Metropolitan Toronto should
be required by the Act to adopt, within local municipal plans, a section addressing
the strategic plans mutually established by the municipality and school boards
relating to the provision of educational facilities required to serve new residential
development and where a mutually agreeable plan cannot be supported that a
moratorium be placed on future development.
-6-
This additional recommendation will provide us with the mandate to proceed with the
direction you note on page 80- It is also clear that boards need to undertake long-range
planning in conjunction with municipalities, and together they should consider innovative
approaches to providing school sites and facilities.
My last concern is raising funds for renovations, additions to, and in some instances new
schools, to accommodate students resulting from the incremental growth from residential
developments or redevelopments. The section in your Draft Report on School Boards
@.80) correctly identifies the competition for the scarce financial resources within the
Province. The additional recommendation proposed above will hopefully address this
concern as the boards and the municipalities seek innovative solutions for the educational
facilities needed to service a growing community. Nevertheless, this issue is of such
importance that we believe it is essential that the Commission address it by way of
another recommendation. In this respect, I defer to the Commission and offer the
following from your comments on page 80: - The Commission has been made aware of
several examples of boards not being able to respond to municipal development decision.
The Toronto Board, for example, does not receive any grants from the provincial
government and is entirely dependent on property taxes for both operating and capital
expenditures. Unemployment in Metropolitan Toronto is extremely high, the assessment
base has eroded by 1.3% over the past year, and tax deficiencies have reached
unprecedented highs. In the face of these economic realities, our ratepayers cannot afford
to subsidize CNS development of the Railway Lands or the provincial governments
-7-
targets for affordable housing starts in the City of Toronto. We cannot afford to fiddle
in the midst of a tax revolt inferno rooted in reality.
This Commission has not only the power, but also the responsibility to proclaim loudly
and clearly that intensification
boards to determine what is
funding. It is inconceivable
they refuse to recognize that
must be preceded by analysis and consultation with school
possible and practical now and what must await future
that so many experts could be so isolated from reality that
in many cases and most notably the City of Toronto, we do
not have the existing facilities nor the fiscal capacity to sustain further intensification,
It is clear that leaving this issue unresolved will only create major difficulties for
communities in the future which in my opinion does not address your mandate of planning
and reform.
report/ sewell.rre
CITY OF TORONTO BOARD OF HEALTH
SUBMISSION TO THE GREATER TORONTO AREA TASKFORCE
September 29, 1995
INTRODUCTION
This report is submitted to illustrate the important contribution
of Boards of Health in achieving the following objectives put
forward in the GTA Task Force Terms of Reference:
B
a system and style of governance that promotes community
well-being and a high quality urban environment
B
a governance system accountable to and representative of
the diverse Toronto of the future, and which promotes the
broadest civic engagement
B
the maintenance and enhancement of a healthy, vibrant and
diverse central city for the benefit of all citizens of
the GTA and the country as a whole (GTA Task Force Terms
of Reference)
The report will comment on the efficacy of Boards of Health in
ensuring the planning and delivery of public health services and
programs which are responsive and relevant to the needs of local
communities.
The lead role which Boards of Health can take in
advocacy for public policy to support healthy and liveable
communities will also be examined.
The report illustrates the increased need and demand for public
health services and programs in the City of Toronto related to the
concentration of social and health services
utilized by both
residents and non-residents of the City, and to the presence of at-
risk or special needs groups
residing predominantly in Toronto.
Toronto is not only the central city of the GTA; individuals and
families from across Ontario, Canada, and countries throughout the
world are drawn to the Citys services and environment.
These
factors point to the need to maintain an adequate revenue base to
support appropriate public health responses within the boundaries
of the City of Toronto.
Without such financial support the
maintenance of the desired healthy, vibrant and diverse central
city will not be possible.
- 2 -
ROLE OF PUBLIC HEALTH
Traditionally the goal
of public health has been to reduce
premature disability and death as well as the prevalence of disease
in the population.
Public health is the enhancement of good
health, the prevention,
rather than simply the treatment of
disease.
Boards of Health and Departments of Public Health are
mandated by the provincial government to fulfil the requirements of
the Health Protection and Promotion Act and the Mandatory Health
Programs and Services Guidelines.
Examples of public health
services and programs are:
enhancement of healthy children and
families; communicable disease control; control of environmental
hazards;
promotion of healthy lifestyles related to tobacco use,
substance abuse, nutrition and sexual health.
Over the past two decades,
the public health movement has developed
an understanding of the
determinants of health, those factors
outside the health care system such as adequate employment,
housing, nutrition and social support which have a major impact on
individual and community health.
Based on this analysis, public
health bodies have become increasingly involved in community
development and advocacy for healthy public policy.
BOARDS OF HEALTH
- ENSURING ACCOUNTABLE AND EFFECTIVE SERVICE
Boards of Health are comprised of provincial representatives,
municipal councillors and interested citizens, and are accountable
to City Council.
The City of Toronto Board of Health has
demonstrated a commitment to community input and consultation
through the establishment of
four Community Health Boards
throughout Toronto,
regular invitations to community members to
depute on major policy and program issues,
as well as the convening
of special community-based meetings to enable local participation.
These lines of accountability have ensured that the planning and
delivery of public health services, programs and advocacy efforts
in Toronto are responsive
and relevant to the needs of local
communities.
The City of Toronto Board of Health has been at the
forefront of program and advocacy efforts in areas such as: drug
abuse prevention, environmental protection,
food policy, family and
child poverty,
multicultural health, homelessness, HIV/AIDS, gun
control and violence against women.
The Healthy City concept was initially developed within Torontos
Board of Health and Department of Public Health, with the goal of
shifting the way chronic urban problems were understood and
addressed. In 1989 City Council established Torontos Healthy City
office following recommendations in the Healthy
Toronto 2000
report, which looked at the various elements of our urban domain
(planning and development, parks and recreation, public works,
buildings and inspections, public health) as interrelated parts of
the same system.
- 3 -
LOCAL BOARDS OF HEALTH, CONTD
Toronto has received international recognition for its pioneering
work. In 1992, the City was granted special status as the only
Honourary Member of the European
Healthy Cities Network of the
United Nations
World health Organization.
PUBLIC HEALTH SERVICE NEEDS OF THE CITY OF TORONTO
The City of Toronto Public Health Department is located in one of
North Americas largest urban areas,
and is unique in the kinds of
services it provides and the population it serves.
The City of
Toronto is at the centre of the Greater Toronto Area (GTA) where
one in six residents of Canada,
and two in five Ontarians live and
work. As well as being responsible for the public health of the
people who live in the City,
the Department serves a large number
of people who come into the City for work,
recreation, health care
and other services.
The City of Toronto occupies 15% of the land area of Metro Toronto,
but about half of Metro workplaces, services, and institutions are
located in the City and are subject to its by-laws.
Torontos
Public Health nursing, dental, medical, inspection and by-law
enforcement and health promotion services extend to:
635,395 residents plus over 27,000 more persons estimated to
be missed by the 1991 census;
a daytime population (residents
and workers) of over 867,000 which includes about 44% of all
Metro workers; and an estimated 28 million visitors in 1994
over 80,000 elementary and secondary school students
8,392 food premises (compared to about 2,800 in North York)
246 licensed day nurseries with child care spaces for over
10,000 children
60 nursing homes, homes for the aged and seniors residences
accounting for 40% of the Metro total
32 hostels accounting for 70% of Metro hostel and shelter beds
38 food banks
60 hotels accounting for 50% of the hotels in Metro
58% of acute care hospitals in Metro
57% of all the physicians in Metro
- 4 -
PUBLIC HEALTH SERVICE NEEDS, CONTD
As shown by the comparisons which follow,
the City of Toronto has
a greater proportion
of groups with a greater need for public
health services because of poor health or lack of access to the
basic prerequisites to health (housing, income, education, social
support networks and personal safety) .
While the City of Toronto has 6.3% of the Ontario population, it
has:
B
20-22% of Ontarios cases of tuberculosis, gonorrhea,
hepatitis A and B
B
50% of Ontario AIDS cases including 80% of all people with
AIDS in Metro
While the City of Toronto has28% of the population of Metro
Toronto, it has:
B
46% of Metro persons on social assistance because of
disability or illness
B
43% of all households waiting for subsidized housing in Metro
B
40% of Metro residents who cannot communicate in English or
French. The Department regularly translates educational
materials into several languages.
B
35% of Metros single, separated,widowed and divorced persons
including 44% of Metros low income single or unattached
persons
B
36% of total Metro hospitalizations for mental disorders and
34% of Metro hospitalizations for injuries,poisonings,
violence and suicide
B
50% of Metros reported domestic violence and 70% of Metro
drug-related crimes
- 5 -
POPULATION GROUPS IN THE CITY OF TORONTO WITH GREATER HEALTH NEEDS
The percent of the population living below the poverty line
increased in the City of Toronto between 1986 and 1991 while
dropping in Ontario and Canada.
Toronto was harder hit by the
recession than many other parts of Canada, and more than half
of all the -jobs lost in Metro were lost from Toronto.
The
recession brought about 30,000 more people onto social
assistance in Toronto to a total of 35% of Metros social
assistance caseload. This is about one in si
x
persons
including about one in three children under 18.
Our highest priority is
the health and well-being of
children. Recent provincial budget cuts to social assistance
and social services denies one in three children in the City
of Toronto access to the most basic prerequisites for health.
Families with children on social assistance will now receive
an income 40% below the Statistics Canada Low Income Cutoff,
and will be placed at high risk for physical, mental,
emotional and developmental ill health.
The City of Toronto is the first place of residence for many
new Canadians including refugees.
Many of those who come from
countries without comprehensive public health services such as
immunization, prenatal care,
fluoridation and health education
have unmet health needs: immigrant
children are twice as
likely to need dental treatment as children born in Metro.
Ministry of Health data shows the average Toronto child has
more than twice the number of teeth needing treatment than the
average North York child.
One-third of residents in nursing homes and chronic care
hospitals have dental disease or infection and are in need of
dental care or dentures.
CONCLUSION
The City of Toronto Board of Health has made a major contribution
to the development and maintenance of the City of Toronto as a
healthy, vibrant and diverse central city for the benefit of all
citizens of the GTA and the country as a whole.
The City of
Torontos unique public health programs and services,
and the
leading role of the Board of Health in advocacy for healthy public
policy reflect the efficacy of local structures in identifying and
responding effectively to community needs.
An adequate tax base is essential to the maintenance of public
health services which meet the needs and challenges of Torontos
populations, and which make Toronto internationally renowned as a
healthy city.
TORONTO ECONOMIC
ADVISORY COMMITTEE
EFFECTIVE GOVERNMENT , EQUITABLE TAXATION
A PROPOSAL TO RESTRUCTURE AND REVIVE
THE GTA
September 29, 1995
INTRODUCTION
In a
city
and
report prepared by Metropolitan Toronto the interdependence of
and suburb is borne out by research by Professor H.V. Savitch
colleagues at the University of Louisvilles College of
Business and Public Administration that also exposes as a myth the
idea that city and suburb are or can be self-sufficient.
Their
study of fifty-nine metropolitan areas in the United States found
strong statistical evidence that central cities and their
surrounding regions are highly interdependent and that suburbs
benefit when their central cities are densely populated; suburbs
stagnate when they surround cities that are poor and losing
population.
Professor Savitch stated:
Suburbs that surround healthy cities tend to be
healthier than those that surround sick cities.
Suburbanites may feel they can shield themselves from
urban decline, but like a hole wearing at the centre of
a rubber raft, everybody is likely to ride a little lower
in the water. Those at the centre may be at the lowest
incline, but hanging onto the periphery may not be the
wisest alternative. Self-sufficiency at the periphery is
not a sufficient defence. The challenge of repair is as
much for those outside the centre as for those in it."
The Toronto Economic Advisory Committee (TEAC) was first formed to
deal with Market Value Assessment and the belief that everyone
should pay their fair share of taxes. This would eliminate the
unfair burden that is now carried by business. To overcharge
business is counterproductive to the economy and job creation. We
feel a more equitable tax system is essential to keep the vitality
of the financial core of Metro Toronto which in reality is the
financial core of Canada.
Although in the following report we recommend less elected
government in the Greater Toronto Area (GTA) and the consolidation
of municipal services at the local government level, the
centrepiece of TEACS report is that any change in governance and
financing within the GTA must strengthen the economic position of
Metro Toronto and in particular the financial core of Toronto.
Toronto is the economic engine for the GTA, the province and
...
2
Canada. Therefore any changes
that negatively affect Toronto
impact on the entire country, province and, in particular, the GTA.
Metro Toronto: An Historical Overview
After World War II it became clear
Toronto had stabilized while growth
of North York and Scarborough, for
a large scale.
The new demands for schools, roads
that the growth of the City of
in the adjoining municipalities
example, were just starting on
and other inter-urban services
such as transit, water and sewer and policing were too expensive
for a local government and required co-ordination of common
services to the area municipalities. The province, in co-operation
with these municipalities, created a regional government known as
Metropolitan Toronto, which was made up of representatives of local
governments to oversee the growth and provide common services to
the area municipalities. Metro Toronto has been studied by experts
on urbanization from around the world and is seen as a model of how
to manage growth and maintain a high standard of services.
The
province subsequently created regional governments for the areas
around Metro in what is now commonly referred to as the GTA.
Two significant changes have taken place over the last decade:
First, growth in Metro has been virtually non-existent; second the
Provincial Liberal Government allowed direct election of Metro
councillors in 1988 which, rather than making government more
accountable, has created turf wars. Although Metro Councillors are
responsible for interurban services they still get elected
primarily on local issues and hence continue to be involved with
issues that are the responsibility of the local municipalities.
A More Equitable Tax System
TEAC believes that the biggest threat to Toronto is the equitable
tax burden on business and the differential in the commercial and
industrial tax levels between Toronto and the surrounding region.
At present, there can be a property tax differential, including
business tax, in excess of $3.50 per square foot between a business
in North York and a similar business in a neighboring community
such as York Region. In fact, some businesses in Metro pay 100-200
percent more property and business taxes per square foot in Metro
than in some of the outlying regions. This tax differential
encourages business to relocate from the core to the outlying
regions. In fact, some regional area municipalities such as
3
Vaughan aggressively advertise
their lower tax rates to lure
business from Metro. TEAC believes that although Vaughan benefits
in the short term, such activities will eventually seriously damage
the economic vitality of the entire region.
Higher taxes in Metro are a result of too much government and
inefficiencies and TEAC recommends changes in the governance of
Metro. However, the more serious cause of the tax differential is
accounted for by the social programs funded through property taxes
and the level of services that Metro has to provide combined with
the inequity of provincial funding between Metro and the regions.
Currently, municipalities pay 20 percent of the cost of social
service which includes welfare, homes for the aged, hostels and
daycare. Because it is a large urban area, Metro Toronto has
higher welfare case loads than other municipalities and therefore
has higher taxes. TEAC believes that social assistance programs
should be funded 100 percent by the province,
since welfare levels
and qualification criteria are set by the province.
As a result,
municipalities have no control over the size of their case loads
and therefore have difficulty budgeting for this service from the
property tax base.
Metro also suffers unfairly from unequal funding for various
services such as transit, ambulance and public health. For
instance, the province pays less than 50 percent of the cost of
ambulance service in Metro Toronto and yet pays almost 100 percent
of the cost in the outlying regions.
TEAC recommends that the
province fund such services on an equal basis throughout the GTA.
These two changes alone - full funding of social assistance by the
province and equal funding for public services - would eliminate
almost half the tax differential between Metro and regions.
The cost of education accounts for at least half of our
property tax. The existing funding formula is based on
property tax assessment value to pupil ratio.
Since Metro has
relatively high property values, in comparison to most Ontario
communities, it does not receive a provincial subsidy for
education. In fact Metro subsidizes the rest of the province,
witness
the fact that under the current formula Metro
taxpayers pay a billion dollars per year more than it actually
costs to run our school system.
TEAC endorses North Yorks position of block grants for education
throughout the province which would effectively eliminate 28
percent of the tax differential between Metro and the region
4
without affecting levels of service. Most of the restructuring of
the tax base as outlined above has been addressed in the Fair Tax
Commission Report.
The foregoing changes require the province to assume costs now
borne by the municipalities. As the province is not in a position
to assume more costs or raise more taxes it is therefore necessary
to transfer funding responsibility for services such as roads,
sewers and other infrastructure to the municipalities. This
transfer of responsibility and funding must be phased in over time
and must be revenue neutral for both the province and the
municipalities . In the end, though, municipalities will be left
with the responsibility for services that they can plan and manage
but they will have to fund 100 percent of their new infrastructure
from their own tax assessment. TEAC believes that this change
alone will cause the regions to question their current strategy of
continuing to allow low density urban sprawl, which in turn
requires high cost services such as roads, water and sewer. This
should result in a better quality of urban design throughout the
GTA.
TEAC believes that if the tax differential is less than 30 percent
rather than the 100-200 percent that now exists, the incentive for
business to leave Toronto, for tax purposes, only will be
eliminated. A 30 percent tax differential can be justified because
of the superior level of services within Metro.
The other tax issue for business is the differential between the
residential and commercial tax rate. A study from the Board of
Trade demonstrated effective tax rate on commercial property is 203
percent higher in Metro Toronto than the residential property tax
rate. Property tax is the largest tax on business activity under
provincial jurisdiction, generating more revenue than either
provincial corporation income tax, Employers Health Tax or Workers
Compensation Board premiums. In Metro Toronto, commercial
properties currently pay effective tax rates more than three times
higher than those on residential property. This differential must
be addressed by a move toward equalizing tax rates between
commercial and residential property.
One method of addressing this inequity would be to pass on all the
benefits of block grants for education as outlined above to the
business sector within Metro. This would bring business taxes in
line with residential rates without increasing residential taxes.
5
A More Effective System of Governance
Metro Toronto and the existing regions, like the local governments
of 40 years ago, are too small to manage growth in the GTA. The
existing system has created inefficiencies and a lack of
coordinated planning and infrastructure. Regional governments are
too remote and are not responsive to the needs of local citizens.
New structures therefore, need to be created to co-ordinate growth
and services throughout the region while strengthening and
supporting local governments, which are without question the most
accessible and responsive form of government.
It is TEACS position that the governance of the GTA cannot be
divorced from the issue of financing. Our position is quite clear:
Eliminate direct election to Metro and other regional
governments;
Regional authorities responsible for interurban services
should be created and composed of elected officials from local
governments;
It is essential to move as many municipal services as possible
to the local municipalities.
Some of the functions and the rationale for delivery by local
governments are set out in the balance of the report. We feel that
local taxpayers relate to the concept of having a local government
and a local city hall. This is a form of government with a long
history that pre-dates Confederation. Accordingly, as many
services as possible should flow through the local city hall.
The regional governments have all built large, often ornate,
complexes which in many ways compete with local city halls but are
not user friendly and for the most part create confusion in the
minds of the average taxpayer, not to speak of the substantial cost
of duplicate regulations and administrative overlap.
In separate reports on the GTA, both Metro Toronto and Mississauga
are proposing the creation of one large Regional Government. In
our opinion this is wrong. This would only be replicating mistakes
of the past, whereby regional governments would compete with local
city halls rather than co-ordinate inter-urban services. If a
larger regional government were formed, it would be even more
remote and would eventually compete with the province itself. TEAC
is opposed to creating more government and thus the theme of this
6
report is to move more services closer to the people served.
Local governments would provide services directly to their local
residents and functions that are now delivered by both the local
and regional governments would be delivered exclusively by the
local governments.
Municipal Functions
Parks:
Many parks in Metro are serviced by both Metro and the local
government. Making parks the responsibility of the local
government concerned would eliminate duplication and provide
better, less confusing and more efficient service to the taxpayer.
The additional work load for the city could be easily managed.
Roads:
Roads are similar to parks in that each municipality maintains its
own roads and in addition Metro maintains Metro roads. This leads
to unneeded duplication, inefficiencies and confusion in the minds
of residents. Since most road repair and maintenance is already
contracted out, TEAC recommends that overall responsibility for
Metro roads be moved to the local government, resulting in cost-
savings and less bureaucracy.
Ambulance service:
Ambulance service is now the responsibility of Metro Toronto. TEAC
feels that there should be a study conducted on the feasibility of
privatizing ambulance service. Canadian companies that operate
successful ambulance services already exist in other jurisdictions.
In the meantime, however, the service should be moved from the
regional governments to local fire departments.
Ambulances can be
housed at the fire halls as is now done in Calgary.
Ambulance
services provided locally will also lower and eliminate dispatch
costs. There are non-emergency services provided by ambulance such
as inter-hospital transfers that should also be privatized.
Water and Waste:
Regional authorities would still be responsible for water and waste
water as well as solid waste management and disposal - most of
which could be privatized.
7
Economic Development:
In order for the City of Toronto, in particular, and the GTA, in
general, to compete internationally for business it is necessary to
have a comprehensive Economic Development plan.
Presently the area municipalities and the regions employ about 65
people with a budget of approximately $17 million for this purpose.
The net effect is that they work against each other, as
municipalities compete with one another and no single agency
markets the GTA as a region.
TEAC recommends that there be one Economic Development Department
for the entire region funded proportionately by all the
municipalities. This department would work in cooperation with
the private sector and organizations such as the Chamber of
Commerce or Board of Trade. The restructuring of this activity into
one body will not only save taxpayers dollars but will also be more
effective. Furthermore, TEAC endorses the City of Torontos
initiative to have senior executives on a volunteer basis act as
business ambassadors for the City when they travel internationally.
Policing:
This is a vital and complex service provided by both the province
and the regional municipalities. A current study of the needs and
types of police services required by our municipality, entitled
"Beyond 2000", calls for a form of decentralized organization and
community policing. If we had regional government, as some
municipal politicians desire,
the police would become even more
remote and unaccountable to the local municipalities.
TEAC believes that the current Police Services Board does not
necessarily reflect the needs and wishes of the local
municipalities and therefore the police should be restructured so
as to be responsible to the local municipality on local policing
matters.
TEAC believes that having a local police chief in charge of local
policing can be both cost effective and at the same time lead to
better policing. The City of London, Ontario (population 315,000),
with a police force that reports directly to City Council, is one
such example.
While community policing and parking enforcement can be delivered
by local governments throughout the GTA, there are other policing
8
responsibilities which should be directly controlled by the
province through the Ontario Provincial Police, or through a
Regional Support Police Service.
Services such as administration for payroll, technologies, capital
expenditures, detective support services, operation support and
training should be controlled by the province.
This model is similar to the policing system in Great Britain. By
following this outline, we would eliminate duplication and have
better and more responsive policing.
Transit:
The centre piece of public transit in the GTA is the Toronto
Transit Commission (TTC) . The TTC operates as a seamless system of
subways, buses and street cars which allows transfer without costs
and operates as a one fare system within Metro. Contrast this to
the outlying regions whose residents rely heavily on the private
automobile for local commuting despite the operation of bus
systems. In York Region for example, there is no regional transit
authority and as a result each area municipality operates its own
bus line. The province also operates GO Transit, an inter-urban
transit authority which consists of both commuter trains and buses.
The GO service has already been expanded beyond the GTA.
One of the inequities of the current system is that more and more
of the bus services of York and Peel are mainly being used to feed
riders onto the TTC so that the residents of those communities can
commute to work in Toronto. Although suburban riders pay fares
which cover 65 percent of operating costs, the remaining deficit
plus 25 percent of capital costs are paid for by Metro taxpayers.
Metro has also suffered from the fact that for more than 20 years
there has been no expansion of the subway system. The ultimate
cost of a heavy rail transit system is far less than allowing the
continuing urban sprawl which results in low density population and
high demands for infrastructure such as roads, water and sewers.
TEAC believes that the current transit systems within the GTA could
be better managed and coordinated to make them more cost effective
and provide better service.
TEAC would recommend that surface public transit routes should be
integrated into one, co-ordinating body managed by the TTC, thereby
eliminating costly duplication in administration and maintenance.
9
TEAC believes that after the surface system is integrated there
should be a study undertaken to investigate the potential for
privatization of individual routes similar to what was done in
London (UK) .
While surface routes should be handled by a regional authority,
TEAC believes that heavy rail should be taken over by GO Transit,
integrating the existing GO service with Metros subway system.
Heavy rail has the greatest potential to move people from one part
of the Golden Horseshoe to the other. TEAC recommends the province
control the system completely. The province could then make plans
for long term orderly and affordable expansion of the system.
The
province could also avail itself of more flexible financing for the
system, such as sale and lease back and designbuild-operate
proposals that Metro is restricted from doing.
As a result of the foregoing analysis TEAC has arrived at the
following conclusions:
1) Maintaining Metro Toronto as the economic engine of the
province is essential to the survival of the GTA;
2) The GTA is over governed, resulting in excess and costly
management and regulation;
3) The differential in tax ratio between the surrounding
regions and Metro, and the competition to lure business
from one municipality to another is ultimately
destructive to the long-term vitality of the GTA.
As a result TEACS recommendations on governance are:
1) Direct election to Metro and regional councils be
eliminated;
2) Any service currently delivered by local and regional
governments be moved to local government;
3) One economic development agency for the GTA be created.
On finance we recommend four key changes:
1) The province pay 100 percent of social services, while
municipalities pay 100 percent of hard services, with the
redeployment of responsibilities and funding being
revenue neutral;
10
2) The province finance services such as ambulance and
transit equally throughout the GTA;
3) Modified block grant funding for education that is
equalized throughout the province;
4) A gradual move to Market Value Assessment.
TEAC believes that with fewer politicians, the population of the
GTA will be better served and the quality of the services will be
maintained or improved. Our recommendations on taxation will
eliminate more than 65 percent of the tax differential between
Metro and the regions and will help maintain Metro Toronto as the
economic engine of Canada.
11
Acknowledgments
This report was prepared for The Toronto Economic Advisory
Committee under the direction of William A. Farlinger.
This report was researched and developed by Michael Doran,
President of MEH Consulting.
We wish to thank the following officials and representatives of:
City of Toronto
City of North York
City of Mississauga
Metropolitan Toronto
We would also like to thank the Metropolitan Board of Trade.
A special thanks for editing assistance to Arnold Agnew and Paul
Pivato.
12
Toronto Economic Advisory Committee
The Toronto Economic Advisory Committee (TEAC) is a
private-sector organization comprising senior executives,
who have a long-term vested interest in Metropolitan
Toronto and the Province of Ontario, and who represent
leading employment sectors. TEAC was formed in 1992 in
reaction to the (then proposals concerning market value
assessment for Metropolitan Toronto. (The group was
opposed not the principle of market value assessment but
rather to its proposed application at a particularly high
point in the economic cycle.)
Since then, the Committee has taken an active interest in
substantive issues that affect the economic well-being of
the Toronto area, working in cooperation with all levels
of government.
As of August, 1995, the members of TEAC were:
James R. Bullock
Marshall A. Cohen
Michael de Pencier
John C. Eaton
The Hon. J. Trevor Eyton
William A. Farlinger
Ronald G. Gage
Peter C. Godsoe
Richard John Lawrence
The Hon. Donald S. Macdonald
John D. McNeil
Ron R. Nolan
Paul H. ODonoghue
Robert B. Peterson
J. Robert S. Prichard
Philip Reichmann
Isadore Sharp
M. Bernard Syron
John H. Tory
The Rt. Hon. John N. Turner
W. Galen Weston
Toronto Economic Advisory Committee
The Toronto Economic Advisory Committee (TEAC) is a
private-sector organization comprising senior executives,
who have a longterm vested interest in Metropolitan
Toronto and the Province of Ontario, and who represent
leading employment sectors. TEAC was formed in 1992 in
reaction to the (then proposals concerning market value
assessment for Metropolitan Toronto. (The group was
opposed not the principle of market value assessment but
rather to its proposed application at a particularly high
point in the economic cycle.)
Since then, the Committee has taken an active interest in
substantive issues that affect the economic well-being of
the Toronto area, working in cooperation with all levels
of government.
AS of August, 1995, the members of TEAC were:
James R. Bullock
Marshall A. Cohen
Michael de Pencier
John C. Eaton
The Hon. J. Trevor Eyton
William A. Farlinger
Ronald G. Gage
Peter C. Godsoe
Richard John Lawrence
The Hon. Donald S. Macdonald
John D. McNeil
Ron R. Nolan
Paul H. ODonoghue
Robert B. Peterson
J. Robert S. Prichard
Philip Reichmann
Isadore Sharp
M. Bernard Syron
John H. Tory
The Rt. Hon. John N. Turner
W. Galen Weston
Toronto Economic Advisory Committee
The Toronto Economic Advisory Committee (TEAC) is a
private-sector organization comprising senior executives,
who have a long-term vested interest in Metropolitan
Toronto and the Province of Ontario, and who represent
leading employment sectors. TEAC was formed in 1992 in
reaction to the (then proposals concerning market value
assessment for Metropolitan Toronto. (The group was
opposed not the principle of market value assessment but
rather to its proposed application at a particularly high
point in the economic cycle.)
Since then, the Committee has taken an active interest in
substantive issues that affect the economic well-being of
the Toronto area, working in cooperation with all levels
of government.
AS of August, 1995, the members of TEAC were:
James R. Bullock
Marshall A. Cohen
Michael de Pencier
John C. Eaton
The Hon. J. Trevor Eyton
William A. Farlinger
Ronald G. Gage
Peter C. Godsoe
Richard John Lawrence
The Hon. Donald S. Macdonald
John D. McNeil
Ron R. Nolan
Paul H. ODonoghue
Robert B. Peterson
J. Robert S. Prichard
Philip Reichmann
Isadore Sharp
M. Bernard Syron
John H. Tory
The Rt. Hon. John N. Turner
W. Galen Weston
Toronto Economic Advisory Committee
The Toronto Economic Advisory Committee
(TEAC) is a
private-sector organization comprising senior executives,
who have a long-term vested interest in Metropolitan
Toronto and the Province of Ontario, and who represent
leading employment sectors. TEAC was formed in 1992 in
reaction to the (then proposals concerning market value
assessment for Metropolitan Toronto. (The group was
opposed not the principle of market value assessment but
rather to its proposed application at a particularly high
point in the economic cycle.)
Since then, the Committee has taken an active interest in
substantive issues that affect the economic well-being of
the Toronto area, working in cooperation with all levels
of government.
As of August, 1995, the members of TEAC were:
James R. Bullock
Marshall A. Cohen
Michael de Pencier
John C. Eaton
The Hon. J. Trevor Eyton
William A. Farlinger
Ronald G. Gage
Peter C. Godsoe
Richard John Lawrence
The Hon. Donald S. Macdonald
John D. McNeil
Ron R. Nolan
Paul H. ODonoghue
Robert B. Peterson
J. Robert S. Prichard
Philip Reichmann
Isadore Sharp
M. Bernard Syron
John H. Tory
The Rt. Hon. John
W. Galen Weston
N. Turner
Toronto Economic Advisory Committee
The Toronto Economic Advisory Committee (TEAC) is a
private-sector organization comprising senior executives,
who have a longterm vested interest in Metropolitan
Toronto and the Province of Ontario, and who represent
leading employment sectors. TEAC was formed in 1992 in
reaction to the (then proposals concerning market value
assessment for Metropolitan Toronto. (The group was
opposed not the principle of market value assessment but
rather to its proposed application at a particularly high
point in the economic cycle.)
Since then, the Committee has taken an active interest in
substantive issues that affect the economic well-being of
the Toronto area, working in cooperation with all levels
of government.
AS of August, 1995, the members of TEAC were:
James R. Bullock
Marshall A. Cohen
Michael de Pencier
John C. Eaton
The Hon. J. Trevor Eyton
William A. Farlinger
Ronald G. Gage
Peter C. Godsoe
Richard John Lawrence
The Hon. Donald S. Macdonald
John D. McNeil
Ron R. Nolan
Paul H. ODonoghue
Robert B. Peterson
J. Robert S. Prichard
Philip Reichmann
Isadore Sharp
M. Bernard Syron
John H. Tory
The Rt. Hon. John N. Turner
W. Galen Weston
TOWARDS A GREATER TORONTO REGIONAL PORT
A submission of The Toronto Harbour Commissioners
September 29, 1995
Recommendations
The time is opportune to consider the advantage of an expanded port authority in the Greater
Toronto region. To implement its marine strategy, the Federal government will have to repeal
or amend many of the existing statutes establishing harbour commissions, including The Toronto
Harbour Commissioners Act, 1911.
The Toronto Harbour Commissioners recommend, that in conjunction with a definition of the
Greater Toronto Area boundaries, that its governing statute be amended to expand its jurisdiction
commensurate with that boundary, that its board be expanded to include representatives from
other municipalities affected by that changed jurisdiction, as well as the Province of Ontario and
that the Province of Ontario petition the Federal government to implement these
recommendations.
Background
In the move to create a new municipal structure for the Greater Toronto area the role of a port
authority should not be overlooked.
In 1990, the Honorable David Crombie, the Commissioner for the combined Federal and
Provincial Royal Commission on the Future of the Toronto Waterfront, published his interim
report, Watersheds. Among Mr. Crombies recommendations pertaining to The Toronto
Harbour Commissioners (THC) were the following:
54. The Port of Toronto should be maintained and
continue to operate as a regional port, retaining
both public and private elements.
57. In view of the body of experience and expertise
available at the THC, in addition to operating the
marine terminals, the THC should be awarded
contracts to perform a range of marine engineering,
harbour mastering, navigation, and shipping
activities along the Greater Toronto Waterfront.
The THC should maintain overall responsibility for
harbour maintenance, including dockwall
maintenance, harbour dredging, and harbour clean-
up, as well as contractual responsibility for
maintaining the infrastructure at the waters edge,
for all other agencies along the waterfront. It
should also continue to be responsible for ship
safety and navigation within the harbour limits.
New Federal Ports Policy
Previously, provinces have not had much need to consider ports as they have been a Federal
prerogative under the Constitution. Now the Federal government is planning to divest itself of
the responsibility for a great many of the Canadian ports, reserving only for its special interest
the national ports deemed by it to be vital to the transportation infrastructure in Canada.
Other ports will be considered regional and will likely be offered to local interests. It will
become important for the Province of Ontario to consider its ports and the role that they can
play as regional economic generators.
To this point, the Federal government has relied on the Canada Coast Guard to handle its
maritime responsibilities in the areas that are not governed by port authorities. Now, however,
Transport Canada is attempting to cut $600 million from the Coast Guards cost, and to
consolidate its activities into a few specific roles. It may be that large portions of the waterfront
between Hamilton and Oshawa may not be adequately served by the government that has the
eminent power to do so.
In addition to the cut backs in the Coast Guard, the Federal government is reviewing its entire
maritime strategy, with a view to overhauling the whole structure, from ports to pilotage, from
coast to coast, and the St. Lawrence Seaway. Transport Canada has been conducting a series
of consultation meetings with marine industry operators and users, and has targeted this fall to
introduce legislation for a national marine strategy to Parliament.
Port Infrastructure in GTA
Currently, there are three port authorities between Oshawa and Hamilton: the Harbour
Commissions of Oshawa and Hamilton, and The Toronto Harbour Commissioners. The
jurisdictional boundaries of these authorities is limited to a portion of the geographical
boundaries of the municipalities that they serve. Between those municipalities there is nothing
comparable to a harbour commission. In Torontos case it is particularly absurd, as its
jurisdiction, role and focus is only related to the frontiers of the City of Toronto, not the larger
Metropolitan area.
2
Legislative Authority for Waterways
The right to legislate in matters pertaining to navigation and shipping is reserved for the Federal
government. This means that laws relating to maritime traffic, whether commercial or
recreational, are Federal. The Federal government has also enacted laws controlling
construction that may impact on navigable waterways, and, has its own environmental scrutiny
process. It is possible that attempts by the Province or local municipalities to legislate or
regulate in these fields may well be invalid. In certain instances, Provincial planning and
environmental law may also be ineffective and municipal zoning and building permits may be
inoperable.
Activities of Port Authorities and THC
Port authorities, such as The Toronto Harbour Commissioners, have a broad range of
responsibilities, generally centred on the concept of providing services for harbour maintenance
and safe navigation. They also play a role in economic development and commercial facilitation.
The activities of these agencies can be quite diverse. For instance, THC built two airports, and
currently manages one of them. It was responsible for the development of the first World Trade
Centre in Canada, and it facilitated the development of the first operational Teleport in the
country. At one time it even managed an amusement park and on another occasion was involved
in farming.
THC built Ontario Place, Bluffers Park, the Leslie Street Spit and many other popular waterfront
recreational parks. It pioneered the use of sunken ships as breakwaters for harbour protection.
It sorts out the activities of competing waterfront recreational users, attends to navigational aids
and generally keeps the port free of large navigational hazards and oil spills. At a time when
other government authorities are still just talking about the need to train, test and license boat
operators, the THC has entered its fortieth year of doing exactly that.
The Toronto Harbour Commissioners
60 Harbour Street
Toronto, Ontario
M5J 1B7
3
SEPT 28, 1995
CONCERNS OF THE TORONTO TAXI INDUSTRY; A SUBMI SSI ON BY THE TTOOA
OUR ORGANI ZATI ON I S A P ROVI NCI ALLY RE GI S TE RE D NON- P ROF I T
ORGANI ZATI ON FOUNDED I N 1989. OUR MANDATE I S THE PROTECTI ON AND
BETTERMENT OF THE TORONTO TAXI INDUSTRY AS IT RELATES TO INDIVIDUAL
AND COLLECTI VE CONCERNS. WE HAVE BEEN I NVOLVED RECENTLY WI TH
COLLE CTI VE BARGAI NI NG HE ARI NGS I N F RONT OF THE ONTARI O LABOUR
BOARD. AS RESULT WE HAVE BEEN GRANTED OFFI CI AL STANDI NG.
WE HAVE A NUMBER OF CONCERNS, HOWEVER DUE TO THE LIMITATION OF
A ONE P AGE SUBMI SSI ON WE ARE GOI NG TO ADDRE SS THE NUMBE R ONE
P RI ORI TY TH AT WE WI S H TH E TAS K F ORCE TO ADDRE S S . WE WI S H TO
EMPHASIZE THAT WE ARE PRIVATE ENTERPRISE AND TOTALLY UNSUBSIDIZED.
EACH TORONTO TAXI LI CENSE REPRESENTS ONE I NDI VI DUAL BUSI NESS WI TH
AN
APPROXIMATE VALUE OF $72 000.00.
WE ARE GREATLY CONCERNED WITH THE
..--.. ... .--. .- -------
POSSIBLE. DECREASE IN THE VALUE OF OUR LIFES SAVINGS.
FOR THE PAST NUMBER OF YEARS OUR ATTENTION WAS DIRECTED TO THE
METROPOLI TAN LI CENSI NG COMMI SSI ON WHOSE STATED OBJ ECTI VE WAS THE
REDUCTION OR EVEN THE ELIMINATION OF A TAXI LICENSE COUPLED WITH A
NUMBER OF OTHER OPPRESSI VE AND AUTOCRATI C MEASURES.
WE HAVE BEEN THE SPOKESMAN FOR THE TAXI INDUSTRY WHOSE MEMBERS
ARE UNDER CONSTANT ATTACK FROM A REGULATORY AGENCY - THE
METROPOLITAN LICENSING COMMISSION.
AS AN I LLUSTRATI ON, ATTACHED PLEASE FI ND TWO ITEMS WHICH
ILLUSTRATES OUR CONCERNS AND EFFORTS;
A PETI TI ON WI TH OVER 1000 SI GNATURES ADDRESSED TO THE LEGI SLATURE
AND A SUBMISSION TO METR() CHAIRMAN TONKS, UNFORTUNATELY NEITHER ONE
OF THESE EFFORTS PRODUCED POSITIVE RESULTS THEREFORE YOU MUST
UNDERSTAND WHY WE ARE TURNING TO YOU.
TAXICABS
Mr David Johnson (Don Mills): A petition to the
Legislative Assembly of Ontario:
Whereas the Municipality of Metropolitan Toronto
(Metro) and its agency the Metropolitan Licensing
Commission (MLC) has created and caused untenable,
harsh and restrictive regulatory and business practices to
the Metro Toronto taxicab industry; and
Whereas the MLC and Metro have refused to deal
with the taxi industry in a civil and businesslike manner,
thereby causing hardships to all individuals within the
industry; and
Whereas the MLC and Metro refused or failed: to
accept province of Ontario vehicle safety standard
certificates, or to provide published mechanical safety
standards to be applied in lieu of the certificate: to
provide an appeal procedure for mechanical safety
inspections for vehicles used as taxicabs; to implement
the MLC bylaw rewrite as promised for January 1990; to
provide leadership and control over the MLC despite
continued complaints by the industry and others; to stop
c ict-of-interest situations; to stop discriminatory fee
practices against the taxicab industry; to publicly tender
contracts for services; to exhibit apprehension of bias
against the taxicab industry as a whole;
We, the undersigned, petition the Legislative Assem-
bly of Ontario as follows:
That under the Municipality of Metropolitan Toronto
Act, Revised Statutes of Ontario, 1990, chapter M.62,
part 28, section 278, to investigate the activities and the
relationship of Metro and the MLC, and as a result
legislate that Metro and the MLC estabIish a separate
Metropolitan Toronto Taxi Authority with the appropriate
taxicab industry representation.
This is from the Toronto Taxicab Owners and Oper-
ators Association and signed by over 1,000 owners,
operators and users of the taxi industry in Metro Toronto.
I affix my signature thereto.
/ LEGISLATIVE ASSEMBLY
with the compliments of
DAVID J. JOHNSON, MPP
Don Mills
Queens Park office:
Constituency Office:
Rm. 101 N.W., Legislative Bldg.
1102 OConnor Drive
Queens Park, Toronto
Don Mills, Ontario
Ontario M7A1A8
M4B 3L4
Tel, (416) 325-7013
Tel. (416) 752-2005
Fax (416) 325-7023
RE : Directive of Legislation & Licensing Committee
of November 5, 1990 to conduct a meeting with
representatives of TTOOA and yourself.
FROM: Lawrence Eisenberg, Pr esident
Tor ont o Taxi Owners & Operators Association.
Dear Mr.
Chairman for todays presentation our association agreed
on the following presentation format: Condense the points, give a
brief illustration and
make use of references (1)*
from list of
outstanding items from L/L agenda dating back to 1989 and brought
to attention by our executive member MR. Stan Steiner.
Our assigned topics ar e:
1) Taxicab Inspection
2 ) Ame n d me n t a n d Re wr i t i n g o f By - La w 2 0 - 8 5
3 ) J u d i c i a l R e v i e w ( s h o w c a u s e h e a r i n g s )
4) Driver Training
5) Cost Recovery
6) Strategic Plan
7) Agendas & how they are handled
Issue: Lack of publicized & available standards, bias based
absence of public tendering process by MLC, unlike all
other METRO departments, boards or commissions,
lack of
accountability of the mechanical inspection examination
by the MLC and lack of an appeal process of said
examination.
Suggested Solution:
Public Tendering Process, By-Law changes
authorizing different methods:
set up industry & MLC committee to establish acceptable
standards,
accept MOT Safety Certificates just like the MLC accepts
MOT drivers Licences,
provide: summary review/appeal process.
Reference (from list):
Minute #50 of Sept 11/1989 L/L Committee
Minute #62 of Oct 6/1989 L/L Committee
Illustration: - 3 and out rule & 2 in a row rule
(1)* All reference is to Jan
18/1993 at which meeting over 22
items dating back to 1989 were brought to L/Ls attention.
I s s u e : The failure to have taxi-cab industry input into the re-
writing process of by-law 20-85.
By-Law rewrite is not an in-camera, private matter, but
should seek assistance from the industry who are affected.
Budget cannot be the issue
since the MLC is spending over
1/2 million dollars on cars,
renovations, new staff,
computers and consultants.
The question that arises ;
is this an MLC by-law or an all
encompassing METRO by-law, who supplies the funds for it,
why is an outside law firm instead of our own Metro legal
handling it and at what cost?
Suggested Solution: Give us the information that was promised to
us (originally due before the end of Jan/91) and incorporate
our (industry) suggestions.
WE KNOW THE TAXI BUSINESS.
By-law rewrite will have to be with co-operation of MLC,
Metro Solicitor and Industry Representatives.
Reference (from list): Minute #39 June 19/1989 instructing the
Commission to submit a discussion paper to L/L Committee
about the underlying structure of the Taxi Cab Industry
preparatory to a review of By-Law 20-85.
Illustration: Goodman Case, Ramopal case and other challenges.
Issue: The Commission show cause hearings and its process is a
reversal of Natural Justice even though the
been
procedure has
styled differently, whereby guilt is presumed first
rather than innocence. We require an independent pre-hearinq
process which is lacking now.
Suggested Solution: The separation of the Administrative,
Enforcement and Judicial function of the Commission.
Pre-hearing process be properly set up by amending the
by-law to make it official,said process to be conducted
by qualified and properly trained personnel not by the
General Manager as laid out in your last GRANT REPORT.
Prepare Commissioners for sittings at hearings or quasi
judicial offices,
Provide an independent (or semi-independent) prosecutor
Set up a committee made up of MLC, Staff and Industry to
make workable and realistic proposals for positive changes.
Reference (from list): minute #50 of Sept. 11/89 L/L
Illustration: refusal to provide a hearing, arbitrary refusal for
an appeal. (e.g. letter of Feb. 16, 1993 from MLC.)
Iss ue : pre -qualificat ion for driving Ski11 is lacking & required,
75% failure rate is grossly excessive & unacceptable,
of the 25% who pass the attrition rate is 95% which is
totallv unacceptable.
Suggested solution: in vehicle road test\evaluation by a
qualified instructor,
establishing a criteria which seeks the highest
obtainable standard (agreed upon by MLC & industry)
similar to other trades licensed by the MLC such as
plumbers & electricians,
a professional cab driver" is needed which can be
a c c o m p l i s h e d o n l y b y e s t a b l i s h i n g a h i g h l y q u a l i f i e d
t e a c h i n g e n v i r o n m e n t .
Illustration: Risk Management
H
proposal (model) of Sunrise
Insurance submitted to L/L on Nov. 5/92,
summary of the last ten years of taxicab driver
renewals & original applications e.g. 10, 000 original
applications only 2100 new issuance,
portion of owners renewal fee allocated to cab school
seems to be
5)
Cost
recoverv
Issue:lack of open
95% wasted. Sunrise survey.
industry participation in the decision makinq
process, expenditures and effectiveness of the MLC.
Discrimination against taxi industry and the MLCS pre-
occupation with it by excessive (over-regulation. IS 65%
revenue from TAXI INDUSTRY justified and cost effective?
Suggested solution:the Strategic Policy Plan of Metro Council
is for open public participation by those directly
affected by legislation.
Illustration: failure to tender publicly for the taxicab
inspection facility presently at Canadian Tire,
expensive, excessive property leases and facilities.
The long awaited cost model
n
is out of date and completely
inoperable (useless).
6)
Strat
egic
Plan
Issue:Does the MLC have a separate (from. METRO) free standing
strategic plan or are they part of the already existing
Metro Strategic Plan?
Suggested Solution: Our own separate Taxi Authority (Similar
to Mississagua)
Illustration: 5 years of work and no progress of any kind,no
industry input and no mechanism to effect changes.
THE TORONTO TAXICAB OWNERS AND OPERATORS Asso CIATION
22 ELROSE AVENUE. WESTON. ONTARI0 M9M2H6 746-7677
Issue; Agendas ar e not de1iver ed t o indust r y member s insufficient
t ime t o pr epar e a pr oper r esponse (L/L), t he MLC does t he
s a me t h i n g, bu t
s e l e c t s w h o m a y g e t t h e a g e n d a s & d o e s n o t
a t t a c h t h e p e r t i n e n t m a t e r i a l w i t h t h e a g e n d a .
t h e l a c k o f r e s p e c t t h a t t h e T AXI I N D U S T R Y i s s u b j e c t e d t o
i s evi d en ced by ca l l i n g off meet i n gs d u e to diminishing or
total lack of quorum in particular when TAXI matters are to
be discussed.
Deliberatly overloading agendas
knowinq in advance that
certain items (mostly taxi related) will not be dealt with,
while deputants are made to wait, sometimes the whole day.
Illustration: Legislation & Licensing meeting in February of this
year when tow trucks were discussed as an added item
and
TAXI items already on agenda were abandoned.
Metro
items
Licensing Commission meeting of March 25/93 when 22
were on agenda: Meeting was called for 8:30 A.M
but did not st a r t unt il 9:40 A.M because Councillor
Oyler was unavoidably (delayed. In fact he was seen
having breakfast in the cafeteria.
At this meeting over 60 representatives of the
courier industry were in attendance & making a
presentation.
AT 1:05 P.M. the meeting was arbitrarily called off
due to lack of time.
The only taxi matter that was dealt with was a case
represented by Mr. Charles Harnick, Provincial Member
of Legislature who was treated in the same
manner as
we are subjected to under normal circumstances:
lack of respect.
The Issue of his deputation? Only the Canadian Flag and the
Commissions refusal to allow a taxi-cab owner to display
it!
Solution; Abolish the Commission and give us the opportunity to
have a say in our own affairs a s M e t r o s o w n S t r a t e g i c
P l a n p r o c l a i m s .
S u b m i t t e d o n b e h a l f o f t he TORONTO TAXI OWNERS & OPERATORS
ASSOCIATION representing over 2/3 of the taxi industry and their
families.
Tr
- T R I N
i t
G R T A
a I n S C
I R
~ September.@95
TABLE OF CONTENTS
*
Backgmmj .-
...................................................................
1
Letterto Minister -
...........................................................
2
SteeringCommitteeMembers
........................................
3
InterimReport
................................................................
4,
List of Appendices
...........................................................jz ,,
Fact Box & Figures
........................................................
13
WorkingGroupMembers
.............................................
15
. .
APPENDIX:
.,
,.
TransitIntegrationOptions
WorkshopSummaryRepoti
~D * , ~
B
,
In responseto the need for improvedtransitservicesfor the increasing
,numberof people traveling acrossmunicipalboimdaries eachday in the
Greater TorontoArea (GTA),theMk?isterof Transpoflationestablishedt he ,
Transitlntegration TaskForcein June 1993. 14@insixmonths, #eTask
Forcepresented theMinisterwithover fwentyspecificrecommendationsfor
coordinatingtransit.servips.
me. Minister acceptedtherecommendationsin principle andappointedthe
TraiwitIntegrationSteeringCommitteeto worktowardsimplementingthose
recommendations. Lou Parsons,the former-chairofGO Transitand vice-
chairof the Task Force, wasappointedas chair. Membershipof the
committeecomprisedof outstandingrepresentativesfrommunicipal ~
governments(includingthemayorsof six partici~ting municipalitiesoutside
of~etropolitan Toronto),transitmanagementand transit labour. .
five worl@ggroups and a numberof.projectgwmmitteeswerecreatedto
support the m~&te of theSteeringCommitteein its examinationof the
majorissues includingorganizational structure,financeandsubsioy,fare
integrationand servicecoordination,humanresources, accessibletransit
and customer information.fichgroup consistedof about fit?eenmembers
representing.transitstaff, transitlabou~municipalrepresentativesMd the
Minis~of Tmnsportation.
.
Membersof the SteeringCommitteeafidthe w~rkinggroups have
Contribute dmhyhotirs of.theirvaiuabletimeto thechallen~ing taskof
exploringthe variousissuesandsumrnarizingthe workto date as ~
representedin this.document.
,,
Duringthis time therehasbeensignificantchange:both municipaland
provinc(ti ele&ons; theappointmentof the GoldenTaskForce on GTA
Reform,a t& freezeandspending cuts. lhese changes have affected.
both the timing of thisreportarid theSteeringCommittee$ability to make
clear specific recommendations,especiallywithrespect to matiers
concerninggovemanti and finance.
Inspite of these changes,thereis apressing,needto continue,coordinating
transitservices for thebenefitof thecustomer,the regionandallits citizens.
And thereis a willingnessto.addresstheissuesbyallthoseparticipatingin
this ongoing work.
,
TRANSIT INTEGRATION GROUPE DEDIRECTION SUR
STEERING COMMITTEE ~ LINTEGRATION DESTRANSPORTS
ENCOMMUN
L P a r L P a
C h P r e
. .
September 1995
To the Honorable Al Palladini,Ministerof Transportation:
As Chair of the Transit IntegrationSteeringCornmittee.~lSC), I am
ple+ed to provideyouwith the hterim.Report on GTA 7ransit.
/ntegfation. This reportwas reviewedand endorsed by TISCat its
meeting on September11, 1995.
The report highligh@TISCSmanyachievements.Though decisionsonthe
organizationalstru.@ureandfundingof GTAtransit must awaitthe otrtcome
of the broader debateon GTAtaxation.and governance,the reportis
intendedto aidthe broaderdebateby identifying,among otherthings, a.
rangeof po~ible transit organizationmodelsfor consideration.Inthis
regard, TISC has not put forwardanyspecific recommendationconcqning
what transit organizationwould best deliver cross-boundarytransit.services
in the GTA.
Oncethe GoldenTask Forcerecommendationsand Provincesres~rise ~
are known; TISCwill reconveneto considerwhat transit organizationmodel
.makesthe most sen~ withinthe framewoti of GTA reformconcerning
.stm?ure, decision-makingand accountability.TISC will alsocontinue .
workingon other transit integrationinitiativessuch as the.GTAWeekly
TransitPass, the integratedfare sy+tem;and.improvingaccessiblecross-
boundarytransit sewices.
For.yourinformation,.a copyof this reportwill ~so be fonyardedto Dr.
Arine Goiden,.C.hairof the GTATaskForceto aid the Task Forcein its
deliberations.
At this time I wishto extenda specialthanksto ail TISCandworkinggroup
members, consultants,and ministrystaff for their continuoushardwork and
dedicationtowardsthis project.
Sincer ,
,
.:$ ,
&
Louis H. Parsons
Chair
. 1 2 W i l A v 2 n F l o W e T o D o w . O M I
. e t a T o O u D o w n O n M 1
T E ~ ( 4 2 3 5 F ~ E ( 4 2 3 .
M a f r r m F t t r
*~ T I S C
Chair: .
LOUISH. PARSONS
Memtws:
HISWORSHIPMAYORWAYNEARTHURS
Town ofPickering
HISWQRSHIPMAYORWILLIAMF.BELL
Town of Richrnond.Hill
COUNCILLORPAULCHRISTIE
Municipalityof MetropolitanToronto
TTCChair
HISWOR~HIPMAYORD(jNALDCO~SENS
Townof Markham
HER&RSHlp MAYOR LoR~A J4CK50N
City of Vaughan
HERWORSHiPMAYORHAZELMcCALLION
City of Mississauga
HISWORSHIPMAYORPETERROBERISC)N
Cityof Brampton
SIMONCLARKE
President,L 15g7.
AmalgamatedTransit Union
ED DOWLING
General Manager
MississaugaTransit.
RICKDUCHARME
Managing Director
G(3Transit
DAVIDGUNN
TTC Chief General
Manager .
DAVIDHOBBS
Chair, GOTransit
ART PATRICK ~
President,
AmalgamatedTransit
Union Loca.113 ~
RONWHITTINGHAM
President ~~
AmalgamatedTransit
~UnionLocal 1572
{,
*.,
.
GTAmmm I NTEGRATI ON
I R
t T I S C
Tmnsit
integration
Sh?snv?g
Committss
Through thetransit integrationproject,the province, its
municip~ partners,transit managerntintand Iabourhave.
been workingtogetherfor overtwo yearstodisWssand
resolve GTAcross-boundarytransit issues.
,,
PhaseTwo, of thetransit integrationproject -- the Transit
IntegrationSteeringCommittee-- was initiatedin the
summer of 1994to pursuethe recommendationsof the
previousTransit IntegrationTask Force. That Task Force
had spent six monthsdeveloping,aseries of potential
actionsto removethe obsta~esto seamlesstr2nsit .
sewices inthe GTA. The initial Task Forcereport,,
Beyond the Periphe@outlined over 20 recommendations
aimed at improvinginterregionalpublictransitan dprovide
better serviceto GTAcustomers. The report received
broad supportfromallstakeholders..
Longtsnn &
S term
gosk
There weretwo mainthru$tsinthoserecommendations.
One wasto examinethe feasibilityof and identifythesteps
toward the long-termgoal of a,federationof transit services
in the GTA. TheotherwaSto implementa seriesof short-
term deliverables underthecurrent arrangementswhich
would leadto moreimmediateimprovementsintransit
services.
.,
. .
l! is anticipatedthat these improvementswill result in the
transit customerexperiencingfewertransfer, moredirect
routes, betterconnections;easieraccessto travel
information,elimination..of doublefaresfor short cross
boundary tripsand,a simplifiedunivetsal fare system. For
the transit systems,it is expected that better c~ordinated
and moreattractiveservices will.result in increased,
ridershipandhigher revenues.
c
GTATask
.D@ate on
GTAR
Rq)oaed
transit
Men#ion
f,nsit
,organkation
principles
#
,.
Sincetheinitiation of the SteeringCommittee, much of the
Iandscapehas changed. There tia&beensignificant
debateabout the futureof the GTA, its governanceand the ,
equityof its t- system. A GTATask Forcewas set up.to
examinethese issuesand report backto the Province in
the Fall. At the sametime,spurred on by the desire.of the
provincialgovemrnentto actquickly on GTAmatters,
various local and regi.onai governmentsare developing
their own govemanceproposalsfor consideration. ~
Atthispoint, the,onlycertaintyis that the fombf
governancein the GTAwill not remainthe same as today.
Whilethe results of the debateare unknownat this time, it
is clear that the waytransit services.are deliveredh the
GTAwill change.,
. .
Afundamental recommendationof the original Task Forc6
calledfor a federatedorganizationalstructuret.ocoordinate
seamlesstransit semices. This concept hasbeen the
subject ofserious,debatebythe Steering.Committee. Even
the suggestionof a.specialpurpose bodyfor transit has
comeunder considerablediscussion. Inthe chrrent .
atmospherefavoringashrinkinggovemment.presence,
suppot?for a newlevel of govern~nceis absent. However,.
there is some supportfor a commonservicesb@d to
administerinter-regionalservi,~s.
Wiihout a definedgovernanceframeworkwithin which to
work, thedetails ,ofa specificorganizational?ormwill need
to wait until the uncertaintyclears. However,some basic
principleson transit organizationare requiredin order to
provideinpti to,the debateon GTA,refotm.The ae~rifig
Committeefinds itself in a rather,uniqqeposition having a ~
divefse rangeof expertiseand representatiorialready in
placethat -- if it cantranscendits differences-- could be a
major influenceohthe shapeof transitorganizati.onin the
futureGTA. ~ ~.
.
6
The.challengeto the OrganizationalStructureWorking
Group, and ultimatelyto the SteeringCommitteeis to
identifypotential long-termdirectionsfor transti integration
that will fit anyeventualQovemancemodel adoptedfor the
GTA. In.doing,so, the SteeringCommi~eesponsored,a
WorkshoponTransit Organization..A summa~ of the
,worl@hopresultspreparedby consultantJim Mackay (The
BerkeleyConsultingGroup)are attachedin the appendices
of this document.
Two essential principleshavesurfacedthroughout the
variousdiscussions,meetings,reports,analysis, anfk
Emerging
workshopsover the past six monthsrelatedto thetr
ptimpks
organizationof transit inthe GTA: Primary,is$e.general.
viewthat, whateverelseevolvesand whichevermodel is
eventuallyadopted,therewill definitelybe aneedfor a
single policy body for.transitacross the.areathat can
ensure,a.commonapproachtoservice provision. A
secMdary me-age is that the actual transit service
deliveryin the GTAshouldcontinueto be providedby an
arrayofdifferent operators. .
Despitenumerousattemptsby avariety of sourcesto ,
~~formulatealternativeorganizationalmodelsforGTAt ransit
integration,every effort hasultimatelyendedup with the
M@ed fbra
same result: a singi.ebodycomposedof multipletransit
single body
br Wmsit
operatorsin a federation-typearrangement. Much of the ,.
existingexperiencewith actualattempts at transit ~~
integraticmunder the currentcooperativeframework
sup@ts this conclusion. Theoretically, everyone
advocatesimprovedcoordinationof transit services,
whether it bethrougha @ centre, a commonweekly pass
.or a cross boundaryroute. However,whenit corn.estime to
pay, this support quickly.vanishes.
. .
In the ~enti of acommitmentfoundedona solid ~.
organizationalstructure,there has not beensignificant ~~
progresstowards implementingany keytransit integration. ii
proposals.
7
Artother basic recornmendatio.nof.theT-k Forcewasthe
faediiisted
pursuit of dedicatedsourm of fundingfor transit servicein
tilnlting ,
the,GTA. Thissource was deemednecessarybythe Task
Force in order.to meet.the ongoingneedsof existingtransit
services as well as well as future growth,particularly
concerningthe integrationof transit sewices.
Dedicatedfunding.f?rtransit typic&llyinvolvesle~ing ..
special fees or taxes on fuel, licensesor pating. However,
it is dear that the cutient political environmentis lessthan.
favorabletowards sucha move.atthjs time. Eventhe
existingfunding levels for transit are under closesctitiny
and will undoubtedly.suffer in the comingroundof budget.
cuts.
A dramaticillustration of the depthof the problemsto come
~ appearedin the initial work of the~nance andSubsidy
Finsncisl
.l~ues WorkingGroup. Municipalitiesacrossthe GTA
ihpiicstions
have adopted official plansthat incorporatepro-ttinsit
ofoffkisl
plsns
policies dependent upon rnajorse~ce expansionto.
addr@sstravel demand, energy, urbandevelopmentand.,
cost-savinggoals. However, littleanalysishad beengiven
to the requiredfundinglevels to meetthese objectives. ~
.,
To addressthis vacuurn,the SteeringCommitteedirected
the workinggroup to analyzethe futurefundingimplications
of transit needs in the GTA. The analysisidentifiedand
quantifiedthe increasedtransit fundinglevel requirements-
in offichl plans includingfull allowan~ for replacement
-pital expenditures.
.Theresultswere startling. Infact, the financial implications
we~ so major as to causethe steering Committeeto return
to someof the fundamental-governanceissuessuch asthe
role of theprovince in fundingtransit (capital andoperating,
~ well as Conventionaland specializedservices],
expandedmunici.paitaxationautho@y,andservicedelivery
modes.
Shoti-teitn
delivembks
ontreck
Wa@2es:
towardsa
Ielephone
Callcentle.
Regional
RWGuide
introduced
Human
msoume
isSNkS
address@
cross-
boumkvy
accessible
transit
Whilethe environment for meetingthe long-termobjectives
tinceming organizationalchangeand financinghavebeen
too turbulent for specific,~commendations,the Steering
,Committeecan claima numberof successesin therealmof
short-termdeliverables.
The ultimategoal ofasingle phonecall accessingfull
transit informationfor the entire, GTA is now&,lotcloser,
thanksto the hardwork of the Customerhformation
WorkingGroup on a TelephoneCall Centre.,
Discu&ions ,arecurrentlyunderwayto explorethe pixsible
means..ofirnplementationj includingthe potentialof private
sector involvement.
Improvementsin Wstornerservicehavealready~peared
in the form of the secondeditionRegional RideGuide
whichhasan expandedformatto includepoitions or all of ,,
the transit systems of Missi~auga, Brarnpton,Vaughan,
.RichmondHill.and Markhamaswell as the TTC. Over
850,000copies are nowin circulationof this central area
transitguide and.discussionsare underwaywit! Peel and
York Regionson other versions; Sponsotihip bythe Royal.
Bankhas helpedsharingthe cbst of this product.
A joint management-labourw orking gro@organizedto
addressthe concernsoftransit Iabour--the Human
ResourceWorking Group-=hasbeensuccessfulin
reachingagreement on awidespectrumof key issues
rangingfromwork rulesto seniority. A frameworkhasbeen
developedfor addressinghumanresourceissuesthat may
arise infuture transit integrationinitiatives.
The AccessibleTransitproject Committeeiscurrently
workingon recommending@rategiestoprovideseamless
cross-boundarytransit sewicesfor passengem.with
.disabilitie,sin the GTA. Giventhe challengesin
implementingservice improvementswithinexisting,,
budgets,the committeewilldedicated its effortsto
identifyingshod and longtermneeds.
Perhapsthe most excitingachievementto date has been
: WA Weak/y
the introductionof thefir$t common,faremediumforsix
Pasx,
,differenttransitsystemsin the GTA. Forthe first t~me,
these transit systems@me togetherina joint decision
makingprocessto create a singlefaremedium.
9
Inthe year since its launch, the GTA.WeeklyTransitPass
has becomea fixtureof the fare paymentsystemattracting
almost 2000 purchaserseachweek.
while the WeeklyPassis an,importantstepinthe right
direction,fully integratedfares inthe GTAstill dependon
other reco~mendedactions.proposedby the Task Force
such as a commonSored-value,farecgud. .
Underthe currentsystemfor the Weekly:P&ss,revenue
sharing betweenmunicipalitiesinvolvesasimplified
lowaf& a
agmernentthat ~n, only succeedwhenthe.numberof users.
commonfare and sal.e.sLocations. are very limited. Full expansionof the ~~~
e.
Weekly Passprogramwould be beyondthe capabilitiesof
the existingtechnology. Also,compli@ing mattersis the.
needf~r anagreementbetweenthe participantsto
standardizefare incr~asqsl
The Fare.lntegrationahd ~wice CoordinationWorking ~
Grouphasfocussedits.resourcesonthe key issues .
involvedinsetting up an integratedfaresystem. ,Ever-
evolvingtechnologicaladvancesinfare card media have
resultedin a numberofnewfare,mediasuch as smai?
&rds, proximity.cards, optical.cards,etc. These offer the
potentialto providevastlyimprovedcustomersewice and
pricingflexibilityconiparedto the existingflasti pass or
even magnetic.stripecardtechnologysuch as usedon the.
. GTAWeekly Pass. In addition, they open up a vast
. potentialforsignifitint cost savingsand newrevenue
generationthroughimprovedefficiencies,increased
ndership,fraud reduction,and.associatedbusiness
opportunities.
,,
10
However,beforeany.majorinvestmentcanbe madein .a ~
completelynew fare collectioninfrastructure,there are ~ ~
several key strategicand busine$sissuesthat needto be
tiny exploredand properlyaddressed. - .
,.
Clearly,oneof themajor issuesis fundingsincethecosts
for aneti Systemare significant. Theapproach .
l?rfvate
sectorjoint
recommendedbythe wo.rl@ggroupis to explorethe .,
vsnturefor
feasibilityof a joint venturewiththepnvate sectorto share
intsgreted
the r and benefitsof.a newpaymentSystem. ~.
tsresystem Sucharrangementsare beingdevelopedin other
governmentsetvicefields in Canada(forinstance:.social ,
services,welfare,UIC) as well as in publictransit inother ~
jurisdictionsaroundthe world.
Typically, a consortiumis formedinvolvinga numberof
established,corporations,eachbringingits own uniquearea
of expertise. Inthe case of atransit faresystemthis might
inctudea.maj~r financial institution,a telecommunication
companyand a hightechnology.provider,aswell as a.
systemintegrator. Thesepartnershipscanalso openthe
door to value-addedventuresthat canprovidenewstreams
of revenuefor public.tra@t.
Alongwith any potential value-addedventures,a newfare
collectionsystemmust addressthe variousessential
requirementsof the participatingtransit properties. These
needsincludea customer-friendlysystemthat canfurriisli,,
.,
amongother things, precisetrackinghssignmentof
payments,reduction/eliminationof fraud, flexibilityin
pricing,and efficientsettlementarrangements. ~ .
11
Insummary,the SteeringCommitteeand its workinggroups
Conclusion
hasachievedsome majoraccomplishmentsbut progresson
other key items has beenovertakenbythe rapidlyevolving
debateon GTAreform.Throughcontinuednegotiationsby
committeemembersanddedicatedwork by staff, transit
integrationhas beenbolsteredby elementssuch anew ,
guidelinesfor resolvitighum.anresourceissues, a regional
transit guideand a GTAWeekly Pass. (However,many
tough i~ues remainunresolvedparticularlyin the context
of shrinkinggovernmentfunds and uncertainroles.
,,
Asthe future..courSefor GTAgovernance becomes
establishedover the next coupieof months, renewedefforts
can be dire@edtowardsthe key issues regardingthe ~.
appropriateorganizationaland financial structurefor
integrated transit. Ongoingefforts continuetowardsother
importantgoalssuch as a regional transit informationcall
,
centreanda commonstoredvaluefate medium.
ASthesevarious piecesof the transitintegrationpuzzle
comei@oplace,the.GTAis destinedto becomea more.
viable andefficient ttanspo,rtationcentrefor its residents .,
and businesses. .
.,
.12
. ,.
,,
L OFA
Appendicesto.followi
.I) Rep@fromthe ~nancq
& SubsidyIssues .
WorkingGroup ~
October 1995
2) Reportttom the
O~anizationafStructure ~.
WorkingGroup
O@ober1995
.
3) Reporttiomthe Human
ResourcesWorkingGroup.
October 1995
4) Report tlornthe Customer
InformationWorkingGroup Odober 199.5
5) RepOrIftOrntheAccessible
Trksit Proj~ Committee .
November1995
B) Report from.the FareIntegration
&ServiceCoordination
WorkingGroup
March1996
13
. .
FACTBOX
For the GTA (plus Hamilton-WentworthRegion), publictransit is .anessential
componentof thetransportationsystem: .
B
16 municipaltransit systemsand GOTransit,
c in 1993, 490 million riders and a $1 billion totaloperatingbudget,
B . 12,800employees, ~ .
B
also 20 s~ciaiized transfi systems.
0
Thesesyste@ ove@l peflormancehqsbeen affectedby a variety of external
.,
pressuresin recent year& From1989 to 1993:
.
ridershipfell by 1IYo, yet total revenuesincreased12Y0,
however,total expenditures roseby 22%,
.
municipaland provincial subsidies rosesignifitintly (
TheIn~r lle~systerns(tirnbers of theTransit IntegrationSteeringCommi@e)
represent. over 90?!of the total.GTAridershipand budget: ~~
B
7 municipaltransit systemsand GO.Transit, .
B
460 millionriders and a $920 milliontotal operatingbudget(1993),
B 11,700employees,
B
cross-boundaryridersareapprox. 9?4(44 million)of the inner tier riders,
B
also 6 s~cialized transit systems.
GTATransitIntegration: ,
B
The needfor GTAtransit integrationresultsfrom:
.-
populationYemploymentand interregional travel growth,
adepress6dt~ansitmarket share for cross-boundarytrips when
comparedto similar trips ,entirelywithinmunicipalities.
B
The 1995Regional.RideGuidewas published in June; 1995:
the Ride Guideis available at.transit outletsand branchesof the
Royai Bankthroughout Metro andthe surroundingareas.
B
The GTAWeekly Pa= was introducedin August, 1994:
-
it is currently priced at $30.00 (roughlyequivalent to 10 cross-
boundarymunicipal transit rides atthecurrentadult ~o-fare rate),
sales are in the range of 2,000 weekly.
14
Figure1:
Cross-Boundary Trips at the Metro Boundary (all modes)
Grew49%in 10 Years
C T
P.M. Pedcpmon Ts@c
& W& WiB7 am lam l
~gure2:
Transits,MarketShareBetween,Municipalitiesk Much Worse
Than Within a Municipality
Transit Market Share
A.M. PeakTrips, 5-10km
.Wo& Tfips
TotgJTrips
Performance
within Etobicoke . . 24Y0 18?40 Highest
WithinMississauga 16Y0, 1070 Somewh~ lower.
Acro& Missj~ga/EtobiCoke
7?40- 7?40 .,YQQ.lQIQ
Boundary
:
,.
15
+- ~~~
Fare Integration &service Cootdinatiorl ,
W G
;
Chair:
El) DOWLING
MississaugaTransit
Members:
GLENMARSHALL
BrarnptonTransit
.EVEWYATT
GOTransit
FRANKGOH
GOTransit
MARYLOUJOLLEY
MarkhamTransit
AVISE~ANS
RichmondHill Transit
Consultants:. . .
RODMCDOUGALL.
IBI Group
MICHAELOZERKOVICH
emc Partners . . .
MTOSupportStaff:
DAVIDSMITH,MANAGER
UrbanTransportationPolicyOffice
~RTINROSEN ,
Strategic.PassengerResearch
RONMCLAUGHLIN
TorontoTransit Commission
.,
RICKTAKAGI
Vaughan,Transit
NORMMCLEOD ~
Peel Trans Help
FON WHllTll!lGHAM
AmalgamatedTransit.UnionLo&l 1572
16
.+? ..
A T P C
Chair: ..
ROBERTEVANS
TTC Wheel Trans
Membars:
Consultant:
KEVINGORMAN
DawsonCatton
BramptonTransit
IBI Group
IANCAIE
MTOSupportStaff: ~.
G.OTransit :
DAViDSMITH,M
UrbanTransportationPolicyQffio&
IRENEMACNEIL
MarkhamTransit BOBBARNES ~~
UrbanTransportationPolicyOffi& ~
. JOHN ELLIOT
Mi~issauga Transit
W. (BUD) NEWTON
,RiGhmo,ridHill Tra@t
,GA~RY COE
pi*eri~g Transit
KATHERINEBIGGART
Toronto Transit Commission
RICKTAKAGI
VaughanTransit .
NORM.MCLEOD
Peel Trans Help
PtiER COGHILL
Ministry of Transportation
MARLANELEPINE
Accessibility AdvisoryCommittee
17
*
H R W G
Chaits:
KENFOSTER
AmalgamatedTransit Union
ALROBINSON
GOTransit,.
Members:
ART PATRICK
AmalgamatedTransit Union
Local 113
RoNWTTINGHAM
AmalgamatedTransitUnion
L 1572
SIMON.CLARKE-
AmalgamatedTransit Union
Local 1587
ANDYMONEITE
AmalgamatedTransit Union
Local 1573
JOHNROMIJN
BrarnptonTransit
GARRYCOE
PickeringTransit
DIMETROSCHEPANSKY
CUPELocal 129
Consultant:
CAROLYNKEARNS
The RandolphGroup
M~OSuppo~ Staff:
DAVIDSMITH, MANAGER
UrbanTransp. Policy.Office
MARYMATAS ~~
UrbanTransp. Policy Office
DONGORDON
MarkhamTransit
BILL CUNNINGHAM
MississaugaTransit
W. (BUD) NEVVJON
RichmondHill Transit
GARYWEBSTER
TorontoTransit Commission
18
*
O S W G
Chaim:
LOUPARSONS
Transit IntegrationSteeringCqmmittee,Chair
DAVIDSMITH
Transit integration ProjectManager
Members:
Consultant:
JIMBROWN
JIMMACKAY&,.
GOTransit
ROBBOGILVIE
BerkeleyConsultingGroup
BILLBURNS
. GOTransit
JURI PILL
MTOSUpport Staff:
TorontoTfinsit Commission
MARYtiTAS
UrbanTransp. PolicyOffice
EDDOWLING .
MississaugaTransit
ERNIEBARTUCCI
OntarioTransportationCapital Corporation
ROSANNASCOIT1.
Municipalityof MetropolitanToronto
EDZAMPARO
.Municipalityof MetropolitanToronto
KEESSCI+IPPER
Regional Municipalityof York
SIMONCLARKE
AmalgamatedTransit,Union
GARRYCOE
PickeringTransit
~
19
*
F a S I W G
Chair: .,
DAVIDFERGUSOIU
PublicTransportationOffice
Ministryof Transportation
Membmv Consultants:.
GLENMARSHALL PETERMARSHALL
BramptonTransit & FREDKOENIG
HemSon&Associates
COLINABERNETHY
GOTransit
VINCECASUTI
AmalgamatedTransit Union
DONGORDON
MarkhamTransit
WENDYAL-DER
Cityof Mississauga
VINCERODO
TorontoTransit Cornrnission
SHEKARf
Muniapality.of MetropolitanToronto
KEESSCHIPPER
Regional Municipalityof York
JOHNBONSALL
Ma&ormack, Rankin
MTOSupportSt6ff:
DAVIDSMITH, MANAGER
UrbanTransp.PolicyOffice
-GARYCORUPE
UrbanTransp. Policy Office
DEANNAWILSON .
PickeringTransit
20
* C I W G
Chajr:
RONMCLAUGHLIN . ~~
TorontoTransitCommission
Members:
KEVINGORMAN
BramptonTransit
JOE DESJARDINS
GOTransit
IRENEMACNEIL
MarkhamTransit
JOHNELLIOT
M~issauga Transit
DEANNAWILSON
PickeringTransit
AVISEVANS
RichmondHill Transit
RICK.TAKAGI
VaughanTransit
RONATKINSON
AmalgamatedTransit Union
C0t7Sultant: ~
FRANKSPITZER
IBI Group
MTQStipport~aff:
DAVIDSMITH, MANAGER
UrbanTransp. PolicyOffice
.
GARYCORUPE
UrbanTransp. PolicyOffke
.
workshop, attendedby thirty
peoplerepresentinga,broadset
oftransitstakeholderi
Jim Mackayand Robb Ogilvie
of the Berkeley Consulting
Group led the par&icipants as
they discussedand assessed
six transitorganizationmodels,
and consideredthemin light of
four scenariosfor the future
GTAgovernancestructure.
This reportprovidesa summary
of the workshop,as well as the
consultants interpretationof the
mainmessages. Therevvasno
attem,pt to reachconsensus at
the session and individual
participantsshould. not be seen
to concurwith or endorsethe
content .presentedhere.
operators might facilitate
t~e. proceSs of reaching
commonagreementsand,
therefore, create a more
seamless transit sy~em.
TOdothat,thismode!hasa.
transit operator for each
geographical area currently
representedby a region-
although the boundaries
could be extended or
altered. These four transit
authorities (Metro, East,
North,and South) and GO
I. StatusQuo - Voluntary
Cooperaticm
The currentarrangementof
lower and upper tier
,municipal. transit properties
and GO with Provincial
planning and funding.
involvement would con-
tinue.Acoordinatingforum
or committeeamongtransit
operatorswouldwork to
improve the transitsystem
onan issueby issuebasis,
e.g:, service,fares, and so
on. Cooperationwouldbe
voluntayso that municipal
councils would need to
,apprwe any significant
changes.
2. Four Geographical
TransitOperato&and
GO- Voluntary.
Cooperation
Having fewer ~. transit
ferred to as a federation
sinceeach transitauthority.
or municipalitywould stiil
need to endorse every
important proposal.before
anythingcouldbedone.
TTC Variationof Model2
UC isdevelopingalternatemodels
whichroughlycorrespond tothose
consideredat theworkshop.ITC and
GO favoura specific. variationof
Model2 tha~involvesthreeregional
transitoperatingauthorities(Metro,
Peel,andYcwk)andGO. Inordef,to
solvethe crossborderproblem,one
fiatfarewouldbeintroducedand
fundedthrougha dedititedfuel tax.
Otherwise, thetransitoperatorswould
cooperatevoluntarily.
3. Federation of Transit
operations :
A federation or a formal
partnershipof transitoper-
ators would require the:,
creationof,somerulesthat
wouldbindeachmemberto
decisions made by the
group..Eachpatinerwould
still run its ownopixations.
A ~ix federation muld be
established among the
currenttransitoperatorsor
a revisedregionalset-up.In
orderto balancetherelative
size,the GO operationsand
subwayscould be merged
intoone operatorownedby
the Federation. .The Fed-.
,
me Berkeley Consulting Group
2 .
.Xransit Integration Options Worphop Summaq
4.
5.
eration would establish
common fares,. se~ice
policiesandarrangefor the
sharing of revenues and
costsof commonse~ices.
Given : the nature of
decisions, the Federation
%vould, requirea legislative
mandate, politic%t re~.
resentation and account-
ability..
FranchiseModel
Underthe franchisemodel,
there would. be central
policy making and
decentralizeddelivery of
transit. A fransit authority
would be responsiblefor
establishingcommon pol-
icies, fares, and service
standards for the GTA
transit system. That
authority would also, as
franchiser, license or
contract transit operato~
(franchisees) to deliver
transit within the policies
set, and for the funding
arranged.Transit couldbe
contractedto a combination
of private operators or
public ,transit ,propefiies,
municipal orprxwincial.
Service Bureau. (or
Menu) Model
The ServiceBureau allows.
for centralized operations
and decentralized policy-
making. Aside from GO,
there wouldbe one transit
operator for local transit,
presumably an enlarged
UC. Acommonfarepolicy
wouldbe necessaryto allow
this to work. The relevant
(lower, or upper tier)
municipal council would
decide local service levels
in itsarea andcontractwith
the._iTCtodeliver.Councils
couldalsocontract withGO
to enhance provincially
fundedservice. Thiswould,.
allow for local.d e c
m a k a b howmuchto
payfortransit.
Full . Amalgamation
F u amalgamati& means
one transitoperator-- the
ITC withGO as a separate.
division. There would be
one fare policy,. common
servicestandardsand one
management oftheoverall
operations. Therewouldbe
pooleduseof non-farebox
funding, smuothing out
variations in Iocial cont-
ributionstotransit.
ASSESSING MODELS
AGAIIYST .TUNSIT
GOALS &.DESIG~
RE~uIRljME~TS
.
Each model was. assessedin
termsof howit mightaffectthe
achievement of six transit
goals. We stated. thesegoalsin
termsof design requirements-
whata good transitorganization
modeineededto satisfyinorder
tosucceed.
The lid, shoymbelow(not in
priorityorder)providedcriteria
by which to evaluate the
models.
j . G . & D E R E Q
B
S t a n d a m t r a n s c o n s a g V f
t r i D e r s m I
B I n t e g p e r s a m u l t p r t m t
b e h a a u s a c G - f policy, servicepolicies,
p r o m p l a b a r u f g r m a
B
D e v r u f r a m ~ e c t m d e o c
s u b s i d r e v s h a r o d e t m s
B
M a i l o c s t r u c o n w s e r r e
e s p e i g r a r
1
B
T a a d w o e c o o c o s e $ i n
w h p o s - r e c o l i
I
1 F i b a l i t e o e c o o s c e s f s I
B
L j t r a p l a p o l w r e g o i ( u
e c o d e v e a a b r l e e i r a G l
9
F ? m a t r a i n f r a o a G T b w I t
subsidizetransit throughpropertytax. -
B
S t r u t p r o f r e s t n e v a c h s i
a e n c o i n n i d e l
~e. Berkeley, Ccmsdfirig $hup
3
Trade-offs.- No one
Model was Ideal
Afterassessingthe six models
against the criteria,there was
no clear choice. No one model
meets ail the requirements.
There are some innate trade-
offs betvyeenhaving overall
directionsettinganda l l o for
local decision-making that need
to be facedinselectingthe best
model.
.,
Voluntary Cooperation
Within Status Quo - What
will Change?
Although the current model
works, most peoplefelt it was
not a usefulmodelto buildon
for the future. Whileit provides
for local preference a t
decentralized operations, it
does not promote seamless
service, or growth through
integratedtransitstrategies,nor
does i?..link planning at a
broadergeographiclevel. .
Voluntary Cooperation
Among Four Geographical
Transit Operators and GO
- Will it Work?
Certainly ITC and Metro
favoured a variation of this
option, but thatincludeda fuel
tax and avoidedthe issue of
getting voluntafy. agreement
fromthe partieswithoutoutside
funding. The support forthis
approachwas diminishedby a
concern about whether vol-
untary agreement would
happen. A consolidated-num-
ber of operators,while better
than the current fragmented
system,seemedinsufficientto
offeradequatehope.
Federation of Transit
Operators - PossibleWith
Questions About
Operational Organization
A federation,assumingit. h%
some strength of de@ion-
makin.g, would potentially
promote a. quality, seamless
setvice, suppoti growthgoals
and planninglinkagesat the
GTAlevel. However,wouldthe
federation partners allow the
federation to make tough
decisions, specifkaliyabout
funding? The combinationof
decentralizedoperationswith
some common sewices or
centralfunctionswoulddo well
in terms- of cost economies.
The greatest controve~y
created by this ~odel
concerned the potential
combinationof subwaysand
GO. Most questionedthis
sugge~ion, finding it a key
weakness.Yet,somewerestill
supportiveof the idea interms
of promo~ing sound transit
planning, funding and
eccmornir@ delivery.
Franchise ModeI - A Good
Possibility .
The franchise model, being
similarto a federation,provides
the beneftisof united transit
direction and servicepolicy,as
wellas planninglinkages. It
alsosupportsthe.economicsof
transitbycontractingoperations
while allowing for some
functionsto be centralized. In
many ways it correspondsto
some of the strong federation
models in Germany and the
UnitedStates; The mainlimits
concern the. loss of . local
influencein decisionsinvolving
sewice levels. and funding.
Overall, the franchise model
had more strengths than
weaknesses.
si~i.ce Bureau(or Menu)
ModeI - Does not Make .
Sense
Overall, the service bureauor
menu model.was seen to be
illogical.Peopleliked the, local
choicebutsawa singleoperator
as a disadvantage,economic-
ally. If a local, decentralized
approach were favoured, a
voluntarycoordinationmodel is
preferred. Onthe other.hand,if
a consistent centralized
approachto transit policyand
service were desired, a
franchise or amalgamated
approachmakessense. There
was no. obvious s o
conditionswhere this model
madesense.
FullAmalgamation- . .
Wea@esses Outweigh
Benefits
Amalgamationmeans a bigger
7TC. with one,consistentset of
serv~ce policies and funding
poolfor the relevantGTA area.
Mr. Juri Pill presented an
analysisof the implicationsof
amalgamating. This was helpful
to.thegroup.The groupsawthis
modelas strong.on providinga
quality, GTA-tide servicei
promotingtransit growth and
linkingplanning issues across
the area. However,therewere
significant downsides.The size
of the organization created
perceived weakness since it
would be less cost effective,
less innovative, and. less
flexible. More. importantly,
people . reacted to the
projections of the potential
..
The Berkeley Consulting Group
.
~
effectonIoi%ltaxes. Increases
to 905 tax Qntnbutionsto
transit were considered an
unacceptableprice to pay for
potentially improved setiice.
Overall, while the positives
were. acknowledged,no one
promotedthis model as being
,theanswer.
of course, any.. transit
organization.model W-llneedto
ftiwithinthe GTAstrWturethat
is decided. The consultants
described four .scenanos for
GTAstructureroughlybased on
submissionsthat have been
publicized.The four scenarios
are describedin the insed (to
the right). ,The participants
discussed which transit
model(s) would suit each
scenario.
If Scenario A, Then . . .
Under.the current municipal
structure with a
similar
Provincial role,.VoluntaryCoop
eration Models.1 and 2 or
FederationModel 3 wouldbe
most appropriateto cootiinate
transit. Wtihout an umbrella
political bodycoveringthe GTA,
othermodelswouldbe awkward
. orimpossible.
If ScenarioB, Then. . .
Under a scenario like that
proposedby City of Toronto,
therewouldbe no politi@lbody
atthe Metrolevelrequiringthe
Provinceto establishan org-
anizationalvetiicle to oversee
1
EV/iLUATION OFMODELS AGAINST
SCEN/UllOS ABOUT GTAAND
PROtiCL4LROLE ANDFUNDING
B F i s c f i
B $ g o v e r e i p l
B P r o c o n f u r a a
l o I e a w d i f
m e c h a
B R e g m c o n t s
B F i s t f i
B R e g r e i p l a M e
eliminated. ~
B M e r o r e a s t P r o
l o t i i M e o t M e t
s e r f e d e ( o b l o
t i e
B P r o c o n p o a f u
r o w i d i f m e c h
B P r o v R e g a l o t
M e e s t s f o t r e
a h o a g r e o v e f G
,.
s e r v
B U p t i r e m ~
B A s s s e t f u n
o p e a c r G b f e d o
p a r t n C o m m
B - T r a d e s i a G T A
B P r o p r o o o t r a
o p e r as.part o s o f u n
o r , f p o w
B
P r o v r e m i n v i ~
o n p r o n o f o r b
B
P r o e s t a i m p
m e c h f d e w G
i s s o a i n t e b a
,
G g o v e r e p M e
A s s f u n a s e r
m a n a d i r . G
g o v e r
T r a a . s e r
P r o c o r e i o g o o
o p e r a c a p f u n
I P r o r e m i m p
l i n w i G T d e c i s
and fund transit., Either the
Franchise Model or Arnai-
gamation offers that vehicle
and, therefore, wouldsuit this
scenario.
If Scenario C, Then.. .
The third scenario, ,Iike that
proposed by North York and
Mississauga, ineffect setsupa
superfederation.of GTA-wide
servicesincludingtransit. In
theoty; a number. of transit
models(3, ,4, 5 or 6) couldbe ~
established.Practically, Modets
3 and4 are mo~eappropriate
since they are consistentwith
the philosophyof decentralized
operations and a consistent
directionfor sefvicesliketransit
acrossthe GTA. . .
. If Scenario D, Then . . .
With trans~ assignedto the .
GTA, level reportingto a GTA
Council, cooperationwouldno.
longer be voluntary. Either
Model 4 or 6 wouldfit the GTA
government scenario. Under
the Franchise Model, the GTA
Council would be the policy
makingboardforthe franchiser.
Alternately, the GTA Council
could simply overseea larger
.lTC sewing all or most
(dependingon,the boundaries)
of the area.
Othekconsidiwations
While participantsconcentrated
on . consideringwhat. models
made sense for transit, there
were concerns expressed on
related topi~ that should be
noted.
B Labours ctincems abo~
participation on transit
. ,
The Berkelev Consuliinc ~rnmti
,,
. .
5
decision-makingbodies is
being,Iost.
. There is a preoccupation
with Iabouras a problem
,andapotentiallyexcessive
expectation that privatiz-
ationisa panacea.
B As.well as assessingwhat
would be ideal, the
implementationand trans-
ition issues need to be
taken intoaccountat some
point. It maybe difficultfor
all stakeholdersto accept
the problems of imp
.I.ementing ce~ainmodels.
Mr. Pills presentation ad-
dressedsome additionalissues
concerningtransit organization
that were not adequately
debated in the workshop.
However,theseissueswillneed
some attentionwhen the GTA
debateisresolved.
. StiouldGObe considered
as a separate operation
fromurbantransitbecause
of the differences oper
ationall,y?,
. Shouldtransitbe organized
to recognizenatural catch-
ment areas or commuter
sheds? .
. Service levels (routes,
frequency)arenotthesame
as sewices policy /
standards/ criteriawhich
aredecisionguidesor rules
for developingwhat levels
areappropriategiven,rider
andpopulationconditionsin
anyarea.
. Having a common fare
policycould meanfare by
distance, or a f l fare.
Most discussions have
concentratedon flat fares,
todate, forsimplicity.
m:
No Recommendations .
About Transit Organization
POssjb]eat This Stage ~.
The workshopparticipantswere
not askedto forma conclusion
nor was any consensus, .
expected: The discussions
confirmed the. view tha~. no ~EQ}}`}.
remmmendationsabout transit
organizationare possibleat this
The matterwill needto
be returned to after the
Government, respondsto the
GoldenTaskForceR~pofi.
.Consultants see Some
.Messages Fiom the
Workshop
.Whilethe wofkshopparticipants
did not reachaconsensus, the
Wnsultants,.upon reflectingon
the workshop,see a numberof
messages. While there is no
total picture, there are some
relativelyclear ingredientsthat , .
need to be taken from the
deliberations.
B Tmnsfi . Cari
be addressed under all
GTA scenarios. No
matter what GTAscenario,
there are ways to bring
someunifyingthrusttoGTA .
transit.
B Decentmlized. oper&tions
.a posti-ve feature.
Decentralized operations
weie generally .favoured
and shouldbe builtintoany
ultimatemodei.
IntegratedTransitpolicies
and direction across the
GTA would.be welcomed
by most. A healthydegree
of centralized direction,
policymakingand strategy
will be welcomed to
accommodatethe broader
transitgoalsThisimpliesa
singlepolicyworkingbody. ~~
Misgivings aboti, the
implicatiahs of ceqtral
dimCfiOnexist. There are
signifi~nt misgivingsabogt
the by-productsof central
transitpolicymaking. With
pooled funding. which is
presumably necessary to
some degreeto accomplish
standardized, ,service pol-
icies,therewill be.aloss of
local politicalchoice about
transitpriorityand funding.
Moreover,there are acute
concerns about, which
taxpaye~ win and lose in
te~s of the effects on
taies andsewice..
Misgivings must be
solved to create more
integrated transit These,
&ncems need to be
addressed.to allow.for a
healthy degree of central
direction and integrated
transit policy. You cant
haveyourcakeandeat it.~
Althoughit is po5sibleto.
have decentralizedoper-
ations and centralized
policy,it is not sosimpleto
have. both centralizedand
decentralized direction
Setting.:
.,
The Berkelev Consnltin; Gtiun ~
6
B Tax fiimess ispart ofa o Franchise and Federation B Franchise or Federation
bigger puzzle. Concerns mode& most appealing. mode/s go beyond the
aboutfairnessandchanges Whether the. federationor original Limited
inlocaltaxfortransitneed franchise model, the
to be consideredinlightof federation-like approaches
the overallchangestofiscal with decentral operations
andtax acrosspartsof the and central policy making
GTA. Overreactingto one and planning, seemto be at
pieceofthe overallpuZzle thetopof the list. Naturally,
iscounter-productive. they will need to operate
within the political
framework that emerges.
from the GTA governance
debate.
Purpose,Federation. The
type of models being
discussed along the
franchise or federation
approach establishes a
strong dire~ion setting
organizationmore like the.
strong Europeati~ or
American federations.
.,,t (
certainlygoes beyond the
limited purpose, almost
staffless federation
originallyproposedby the
IntegrationTaskForce.
The Berkelev. Consultimz Grmm
Anne Golden, Chair
GTA Task Force
393 University Avenue
Suite 2001
Toronto, Ontario M5G IE6
Dear Ms Golden,
Policies which attract road freight transport to rail would also be a way to avoid highway
development and wear and tear costs, meet land use objectives, improve highway safety,
cleaner air, and improve our economic competitiveness. Rail transit and rail freight are
compatible.
In order to enhance the growth of industry within and beyond the GTA, maximize the use of rail
commuter services and ensure continued investment in rail infrastructure for both freight and
passenger services (Please note attachments which deal with the high rate of energy efficiency
of rail as compared with road transport.), we fully support the Canadian National Railways and
CP Rail System presentation to the GTA Task Force which urges the following action required for
railway property:
B
Immediate (1996 Taxation Year).
-Freeze existing right-of-way taxes.
-Ensure non-discriminatory taxation of non-corridor property.
B
Long Term
-Exempt rights-of-way from property taxation (Note that roads are not taxed).
-Ensure non-discriminatory taxation of non-corridor property.
-Provincial commitment to remove the impediments to the future viability of railways.
In 1970, Ontario had 9,193 miles of railway line, we now have less than 7000 miles.
Abandonments could reduce this to between 3 and 4000 miles in the near future. Action is
urgently required to protect and increase the use of this irreplaceable real estate, and preserve
an asset of immeasurable value and potential. The above steps would help to level the road-rail
playing field, and combined with other strategies, rail usage would once again thrive, much to our
economic, environmental and social benefit. Please note that 2 rail lines equal 16 lanes of
highway in carrying capacity.
Please also note Transport 2000s twelve transportation objectives.
Respectfully submitted,
Elizabeth Hill
President
Transport 2000 Ontario Inc.
copy to: Hon. Al Palladini, Minister of Transportation
Hon. William Saunderson, Minister of Economic Development, Trade and Tourism
Town Hall
September 27, 1995
SUBMISSION TO THE
GREATER TORONTO AREA TASK FORCE
BY THE
TOWN OF WHITBY
T.J. EDWARDS
MAYOR
WHI TBY: (416) 668-5803
TORONTO: (416) 686-2621
F A X (416) 686-7005
THE CORPORATION OF THE TOWN OF WHITBY
In the Regional Municipality of Durham
MUNICIPAL BUILDING
575 Rossland Road East
Whitby, Ontario, Canada
L1N 2M8
Sept. 27, 1995.
Dr. Anne Golden, Chair,
Greater Toronto Area Task Force,
393 University Ave.,
20th Floor, Suite 2001,
Toronto, Ontario.
M5G 1E6
Dear Dr. Golden:-
1 am pleased to submit the attached submission for your
consideration. The essence of the submission addresses the belief
that local municipal government must be enhanced and strengthened.
Further, it is the Towns opinion that a new form of
governance with legislative authority to incorporate the Greater
Toronto Area is not desirable.
The Executive Summary incorporates some fourteen (14)
elements that Whitby wishes to bring to your attention.
If I may be of any assistance
matters further, please do not hesitate to
Sincerely
as you consider these
let me know.
yours,
T. J. Edwards,
M A Y O R
cc: The Honorable M. Harris, Premier of Ontario
The Honorable A. Leach, Minister of Municipal Affairs &
Housing
D. Martin, Provincial Facilitator, Ministry of
Municipal Affairs & Housing
J. Flaherty, M.P.P., Durham Centre
J. OToole, M.P.P., Durham East
H. McCallion, Chair, G.T.A. Mayors committee, C/o City of
Mississauga
G. Herrema, Chair, Regional Municipality of Durham
I
,
I
SEPTEMBER 27, 1995.
THE TOWN OF WHITBY
BELIEVES THAT
LOCAL MUNICIPAL GOVERNMENT
MUST BE
ENHANCED, STRENGTHENED AND EXPANDED
EXECUTIVE SUMMARY
(1) R ECOGNIZE THAT W H I T B Y S BOUNDARIES
AND ITS SIZE , WITH SIGNIFICANT
CAPACITY FOR FUTURE GROWTH, CONTINUES
TO BE APPROPRIATE TO SERVE THE
RATEPAYERS OF WHITBY, NOW AND IN THE
FUTURE .
( 2) RECOGNIZE THAT WHITBY COUNCIL A N D I T S
RATEPAYERS WILL STRONGLY RESIST ANY
CHANGE TO ITS BOUNDARIES AND
REDUCTION TO W HITBY AUTONOMY, I T S
UNIQUE QUALITIES AND CHARACTERISTICS ,
AS WELL AS ITS STRONG SENSE OF
COMMUNITY IDENTITY AS A VIABLE LOCAL
MUNICIPALITY IN DURHAM REGION.
I
2
(3) RECOGNIZE THAT
LOCAL MUNICIPAL
GOVERNMENT IS THE MOST ACCESSIBLE,
CAPABLE , EFFICIENT AND INVALUABLE
RESOURCE CENTRE TO ITS RATEPAYERS,
WHOSE FUNCTIONS SHOULD BE MAXIMIZED,
ENHANCED AND EXPANDED TO RESPOND TO
THEIR NEEDS.
(4) R EDEFINE LEGISLATION FOR ALL LEVELS
OF GOVERNMENT TO PROVIDE CLEARER
RESPONSIBILITY , GREATER ACCOUNT-
ABILITY AND AUTONOMY TO REDUCE
OVERLAPPING AND DUPLICATION AMONG
GOVERNMENTS, 1. E ., ONE STOP SHOPPING
FOR INFORMATION AND SERVICES . (E. G.,
LOCAL, REGIONAL AND PROVINCIAL
HIGHWAYS, OTHER THAN THE 400 SERIES,
TO BE MAINTAINED BY THE LOCAL
MUNICIPALITIES BASED ON A SINGLE
STANDARD OF SERVICE WITH SUITABLE
COST SHARING. )
(5) RECOGNIZE THAT NEW LEGISLATION SHOULD
BE INTRODUCED TO PERMIT PUBLIC/
PRIVATE PARTNERSHIPS WHILE PERMITTING
LOCAL MUNICIPALITIES TO SELF-GOVERN
AND INTEGRATE SERVICES WITH OTHER
MUNICIPALITIES AND LEVELS OF
GOVERNMENT ON A VOLUNTARY, CO-
OPERATIVE AND COST EFFECTIVE BASIS .
(6) R E C O G N I Z E THAT IT SHOULD NOT B E
NECESSARY TO CONSIDER THE EXPANSION
OF SERVICES CURRENTLY PROVIDED AT THE
3
(7)
(8)
(9)
LOCAL LEVEL TO THE REGIONAL OR COUNTY
LEVEL UNLESS THERE IS AN EXPRESSED
DEMAND FOR SUCH SERVICE BY ALL
AFFECTED LOCAL MUNICIPALITIES ,
AND
FURTHER , IT IS DESIRABLE FOR THE
P ROVINCE TO RATIONALIZE THE PRESENT
SCOPE OF SERVICE UNDERTAKEN BY
REGIONAL MUNICIPALITIES .
RECOGNIZE THAT LOCAL MUNICIPAL
PLANNING APPROVAL POWERS SHOULD
INCLUDE APPROVAL OF SUBDIVISIONS,
LAND SEVERANCES AND PART LOT CONTROL
WHERE REGIONAL A N D LOCAL O F F I C I A L
P LANS EXIST, WHILE BROADER GENERAL
STRATEGIC PLANNING ABILITIES SHOULD
REMAIN WITH THE REGIONS . LOCAL
MUNICIPALITIES SHOULD CONTINUE TO
MAINTAIN LOCAL DETAILED LED POLICY
PLANNING ABILITIES .
R EDEFINE THE LEGISLATION GOVERNING
HYDRO COMMISSIONS AND LIBRARY BOARDS
SUCH THAT THE LOCAL COUNCIL WI L L
ASSUME COMPLETE RESPONSIBILITY FOR
THE PROVISION OF THESE SERVICES THUS
E L I M I NAT I N G DU P L I CAT 10N OF
ADMINISTRATIVE EFFORT AND REINFORCING
ACCOUNTABILITY OF THE LOCAL ELECTED
COUNCIL .
R ECOGNIZE THAT THE C O S T L Y AND TIME
CONSUMING PRACTICE OF ADMINISTERING
BUSINESS ASSESSMENT AND TAXATION
4
(l0)
(11)
(12)
SHOULD BE DISCONTINUED IN FAVOUR OF
A LESS COMPLICATED CRITERIA
FOR
APPORTIONING COMMERCIAL/ INDUSTRIAL
ASSESSMENT AND TAXATION .
R EPLACE CONDITIONAL AUTHORITY A N D
C O N D I T I O N A L O P E R A T I N G
GRANTS/SUBSIDIES WI TH ANNUAL
UNCONDITIONAL "BLOCK" GRANTS
RECOGNIZING , HOWEVER, THAT ONE TIME
GRANTS FOR SPECIAL INFRASTRUCTURE
PROGRAMS OR OTHER MUNICIPAL SERVICES
INITIATED BY THE PROVINCIAL
GOVERNMENT SHOULD CONTINUE TO BE
CONDITIONAL .
R EQUIRE A STANDARD PROPERTY
ASSESSMENT SYSTEM HAVING FAIRNESS
WITHIN EACH PROPERTY CLASSIFICATION ,
WITH THE FUNCTION RETURNED TO THE
REGIONAL/COUNTY LEVEL OF GOVERNMENT.
I MPLEMENTATION TO HAVE A SUITABLE
PHASE-IN PERIOD AND BE UNDERTAKEN IN
SUCH A MANNER AS TO GUARD AGAINST THE
BURDEN OF ANY TAX SHIFTS.
RECOGNIZE THAT THE LOCAL MUNICIPALITY
IS THE PRIMARY SOURCE OF CONTROL FOR
ECONOMIC DEVELOPMENT, IT BEING BEST
SUITED TO DEVELOP AND PROMOTE THE
UNIQUE ATTRIBUTES OF A COMMUNITY AND
IS THE BEST SUITED LEVEL OF
GOVERNMENT CAPABLE OF SUSTAINING
ONGOING SUPPORT REQUIRED BY EXISTING
I
5
Commercial/INDUSTRIAL CLIENT BASE AS
WELL AS BEING THE MOST ACCESSIBLE,
EFFECTIVE AND EFFICIENT SOURCE OF
INFORMATION FOR THE SMALL BUSINESS
ENTREPRENEUR .
(13) RECOGNIZE THAT THE PROMOTION AND
MARKETING OF MUNICIPALITIES TO THE
NATIONAL AND INTERNATIONAL BUSINESS
COMMUNITY IS MOST EFFICIENTLY AND
COST EFFECTIVELY EXECUTED THROUGH
VOLUNTARY CO-OPERATIVE ALLIANCES SUCH
AS THE G. T. A. E CONOMIC D E V E L O P M E N T
PARTNERSHIP COMMITTEE.
(14) RECOGNIZE THAT A NEW FORM OF
GOVERNANCE WITH LEGISLATIVE AUTHORITY
FOR THE G REATER T ORONT O AREA IS NOT
DESIRABLE .
6
BACKGROUND
In 1968, the Town of Whitby and former Township of Whitby amalgamated
to blend the urban and rural advantages of both municipalities. This
voluntary initiative by the two municipalities added a new dimension in
governance to the, then, County of Ontario. Our ratepayers, both resident
and corporate, identify with the Town of Whitby as it continues to be a strong
and viable community in the Region of Durham.
The amalgamated Town of Whitby, containing a land area of more than 56
square miles, became the only municipality to not experience a change in local
municipal boundaries when the Region of Durham was incorporated in 1974.
In fact, the geographic size of Whitby was mirrored by the consolidation of
the City of Oshawa and the former Township of East Whitby with the
formation of the Region of Durham.
Since the Whitby merger, ever increasing numbers of people have recognized
the advantages of locating their families, opening their businesses and
establishing their industries in this vibrant and growing Town. The Town of
Whitby is proud of its heritage and its continuing evolution. Whitby has a
vision for its future. More than 70,000 people who share that vision and
continue to invest their future in Whitby each day will not support the loss of
their identity to a bigger, less responsive government.
7
Whitby, through its elected and appointed officials, has demonstrated that the
local level of government is accessible, approachable and efficient as it
responds to its population on a continuous basis. It also is satisfied that the
1968 vision of creating a new, enlarged Town of Whitby continues to be the
proper size to serve the ratepayers of
capacity for growth in the future.
B
Whitby believes that its boundaries
capacity for future growth, continues
ratepayers of Whitby, now and in the,
Whitby now and with significant
and its size, with significant
to be appropriate to serve the
future.
B
Whitby believes that its ratepayers will strongly resist any change to
its boundaries resulting in a reduction in Whitby autonomy, its
unique qualities and characteristics, as well as its strong sense of
community identity as a viable local municipality in Durham Region.
RESPONSIBILITY WITH ACCOUNTABILITY
Let us get back to basics. Let us reshape the needs of government to reflect
the requirements of our customers, the ratepayers. If there are to be changes
in governance, let us reduce the confusion by the public as to which level of
government is responsible for providing public services by giving more
autonomy to local government. Ratepayers, in general, bond and identify
with their local municipalities. Local municipalities are often considered by
residents as being their most valuable, accessible and efficient resource.
8
Since the inception of Regional Government, an important relationship has
existed within government which has co-ordinated the provision of services to
our inhabitants. Local municipal governments recognize that there are
economies of scale to be realized in the provision of certain services. In
particular, where the required service is more efficiently and cost effectively
provided involving other governments beyond local municipal borders, those
resources should be encouraged to continue to provide and/or co-ordinate such
services. The foregoing recognizes the existing relationship among the local,
regional and provincial levels of government and the important role that each
plays in the delivery of services. However, it should not be necessary, for
example, for all three jurisdictions, with different service levels and standards,
to maintain roadways within the borders of local municipalities, save and
except Provincial highways numbered 400. The same can be said of a number
of other services. When two (2) or more levels of government are jointly
responsible for delivering services, there tends to be a loss of accountability
resulting in public confusion
to rationalize the present
municipalities.
and frustration. In that context, it is desirable
scope of services undertaken by regional
B
Whitby believes that the local municipality is the most accessible level
of government and, as such, is best able to respond to its citizens by
providing quality, affordable service levels that reflect the needs of its
ratepayers.
B
B
B
9
Whitby believes that the level of government which best relates to the
requirements of the ratepayers is the local municipal level of
government and that services performed by existing local
municipalities should be strengthened, enhanced and expanded.
Whitby believes that there are immense opportunities available among
local municipalities to improve the co-operative integration of services
in a more cost effective manner.
Whitby believes that the local municipality should be the primary
government that our ratepayers contact for the provision of
information and service, i.e., one stop shopping.
Inter-community services such as transit, fire protection and animal control,
to name a few, should be cost shared with other municipal governments as the
requirements of the ratepayer and the municipality dictate.
B
Whitby believes that it is not desirable to expand services currently
provided at the local level to a regional/county level unless there is
an expressed demand by all the affected local municipalities.
B
Whitby believes that it is desirable for the Provincial government to
rationalize the present scope of services undertaken by regional
municipalities.
10
Decisive action must be taken to reduce the costly and inefficient overlap and
duplication of effort where it exists in government today. As service
providers, we must take positive steps to eliminate the public confusion over
which level of government provides what service. Wherever possible, the
provision of modern technologies should be employed to achieve this desired
result.
Further, existing overlaps between government levels in the decision making
process should be eliminated wherever practicable. More senior governments
should strengthen autonomy at the local municipal level through increased
responsibility and accountability.
B
Whitby believes that the Province of Ontario should legislate a new
Municipal Act which will allow municipalities greater flexibility and
clearer responsibility, accountability and autonomy to strengthen
government at the local level. Whitby supports the required checks
and balances within the legislation.
B
Whiby believes that new legislation should recognize the capabilities
of local municipalities to self-govern and to integrate services as
desirable on a voluntary, co-operative, cost effective basis with other
municipalities and other levels of government.
B
Whitby believes that duplication among governments can be signifcantly
reduced through a new definition of responsibilities to reduce costs and to
eliminate public confusion and frustration.
11
B
Whitby believes that the provision of services, where practicable,
should be encouraged through public/private partnerships by the
enactment of permissive legislation.
PLANNING
The streamlining of municipal functions is encouraged. Local municipal
planning approval powers should, where local Official Plans exist, be
expanded to include the approval of local planning matters. Local land use
planning should continue to be protected to ensure good and orderly
development and consistency with larger provincial and regional planning
requirements.
B
Whitby believes local municipal planning approval powers, where an
official plan exists, should include approval power for subdivision,
land severances and part lot control, while broader general strategic
planning abilities should remain with the regions. Local
municipalities should continue to maintain local detailed policy
planning abilities.
SPECIAL PURPOSE BODIES
The existence of special purpose bodies has eroded the understanding of the
public as to who is really responsible for the provision of certain local services. i
clarification of these uncertainties, as well as the elimination of a great deal I
12
of duplication of administrative effort can be realized. It will also reinforce
accountability at the local elected level.
B
Whitby believes that special purpose bodies such as library boards
and hydro commissions should be functions of the local municipality.
MUNICIPAL FINANCE
The root of municipal finance is
administered by the Province of
the property assessment system currently
Ontario. The establishment of common
assessment practices for all Ontario municipalities continues to be an essential
basis for the distribution of revenue within the province.
Unfortunately, the administration of the assessment function has become
progressively inconsistent amongst Ontario regions and municipalities. To
compensate, the Provincial Government has, from time to time, employed
complicated formulae to the grant system, which have only made the equitable
distribution of financial resources impossible to achieve.
Also, assessment personnel have been shifted from assessment region to
assessment region to accommodate the Provincial requirement. There is no
doubt that the shifting of these important resources has not only added to the
inefficiency of the system but, more importantly, has resulted in the loss of
substantial revenues to municipalities.
13
Within each assessment region a variety of assessment systems are allowed to
exist. Many municipalities have multiple assessment
further demonstrate the need for a consistent
assessment. The equitable distribution of municipal
accuracy and consistency of the assessment system.
bases. These disparities
approach to property
revenue depends on the
The assessment criteria
against an unreasonable
selected by the Province of Ontario should guard
shift in evaluations between property classifications.
B
B
B
B
B
Whitby believes that fairness in the property tax system can be
achieved in each assessment region through a re-assessment of real
propery employing a consistent set of criteria throughout Ontario.
Witby believes that the responsibility to establish the criteria for the
assessment system should remain with the Province of Ontario.
Whitby believes that the timing for implementation of the selected
assessment criteria should be established by the Province of Ontario.
Whitby believes that the function of real property assessment should
be returned to the regional/county level of government.
Whitby believes that the costly and time consuming practice of
administering business assessment and taxation should be discontinued
in favour of a less complicated criteria for apportioning
commercial/industrial assessment and taxation.
m
14
B
Whitby believes that a suitable phase in period should be allowed
when the new criteria for assessment is implemented to ease the
burden of any tax shifts between property classes and/or taxpayers.
B
Whitby believes that a consistent assessment system will pave the way
for a fair and equitable distribution of revenue between the Province
of Ontario and its municipalities.
Today, the
that have
Provincial
conditional grants system rewards the supply of specific services
been pre-determined by the Provincial Government. Many
subsidies/grants are conditional upon specified services being
provided by the municipalities. This parent/child relationship does not allow
the local municipal council to make clear decisions about the desired levels of
local services or its priorities.
Further, the conditional present grant system requires senior levels of
government to ensure that the work being completed at the local level meets
the criteria anticipated by the Provincial, and even Federal, level of
government.
On the other hand, we are not advocating that there be no special conditional
grants for particular one-timeinfrastructure or service programs which may
be introduced by the Province
B
Whitby believes that the Province of Ontario should eliminate annual
conditional operating grants/subsidies in favour of unconditional or
15
block grants to empower the elected councils of local municipalities
to determine services and service levels that are locally significant.
B
Whitby believes that an unconditional or block grant system will
facilitate a substantive reduction in Provincial staff resources that
currently verify that local municipalities are conducting themselves in
accordance with Provincial policy.
B
Whitby believes that one-time grants for special infrastructure programs
initiated by senior levels of government should continue to be conditional.
ECONOMIC DEVELOPMENT
Traditionally, the first point of inquiry for a potential commercial or
industrial investor is the office of the local municipal mayor, the local
municipal economic development office and the local municipal planning
office. Although more senior levels of government also have development
interests, the most meaningful and informative contact is that which is made
at the local municipality where the potential investment will ultimately be
made. Services at the local municipal level are essential in the planning and
development of the community.
Equally as important is the continuous support and assistance which must be
provided by the local municipality to its existing commercial and industrial
cIients. This important customer base, which provides employment
opportunities and a significant source of taxation revenue, often becomes a
16
local municipalitys best promotional source. The importance of maintaining
a close relationship with your commercial and industrial community can lead
to additional investment through joint ventures and strategic alliances.
B
Whitby believes that the local municipality should continue
primary source for economic and development contact.
to be the
One requirement of a strong local economy is a continuous, concerted effort
to renew the local economic base. Proactive economic development programs
must be put in place to diversify the local business base and increase
employment opportunities.
B
Whitby believes that the local municipality is best suited to develop
and to promote the unique attributes of a community, through effective
and effcient service, particular to the needs of the customer.
B
Whitby believes that the most responsive level of government capable
of sustaining the ongoing support required by its existing commercial
and industrial client base is the local municipal government.
Eighty per cent of new jobs created in the Canadian economy are created by
small business entrepreneurs. Historically, individuals interested in starting
their own business have approached the local municipality for assistance. The
local municipality is readily accessible to prospective business and is able to
provide coaching to the entrepreneur in such matters as government processes
17
and procedures, as well as to suggest business linkages and alliances that
might assist the small business entrepreneur to achieve success.
B
Whitby believes that the local municipality is the most knowledgeable,
accessible, effective and effcient source of information for the small
business entrepreneur.
Senior levels of government exercise responsibilities that influence the economy
such as interest and exchange rates, inflation, income and sales
those factors will influence the direction and expansion of regional
While those regional influences also impact local economies,
taxes, and
economies.
additional
attention at the local municipal level is required to ensure that business
investment will be attracted.
B
Whitby believes that a local modern infrastructure consisting of such
amenities as accessible business services, efficient local transportation
linkages, an educated workforce and cultural and recreational
opportunities is best serviced by the local municipality.
A voluntary initiative to promote and market the Greater Toronto Area for
business investment, both domestically and internationally, has been initiated ---
by the G.T.A. Economic Development Partnership Committee. This
Committee, consisting of representatives from municipalities, has united to co-
operate and co-ordinate an initiative to attract business investment to a
geographic area consisting of five regional governments. Voluntary co-
1
18
operation provides a more efficient and cost effective vehicle to those
municipalities that have a common interest in the attraction of economic
development in a national or international environment.
B
Whitby believes that the promotion and marketing of municipalities to
the national and international business community is most efficiently
and cost electively executed through voluntary co-operative alliances
such as the G. T.A. Economic Development Partnership Committee.
G.T.A. GOVERNANCE
Clearly, a new form of governance for the Greater Toronto
to public confusion and frustration and is not desirable.
B
Whitby believes that a new form of governance with
authorship for the Greater Toronto Area is not desirable.
Area will only add
legislative
TO
F ROM An n e Go l d e n
RE - INVENTING
ALL OF THE GOVERNMENT
& SPECIAL PURPOSE BODIES OF
ONTARIO
FROM THE TOP DOWN
-
GTA TASK FORCE
AND THE BOTTOM UP
Robert M. White
358 Finch Avenue
Burlington Ontario
L7T 2T7
September 25 1995
Dr. Anne Golden - Chairman of The GTA Task Force
Mr. Jack Diamond
Mr. Thomas McCormack
Mr. Robert Prichard
Dr. Joseph Wong
c/o
The Greater Toronto Area Task Force
393 University Ave.
20th Floor -2001
Toronto Ontario
M5G 1E6
Dear Madams/Sirs:
Re: A Proposed Solution to our GTA Financial and Governance Problems
After much research, thought and effort, I believe I have discovered a very practical and
even elegant solution to the divisive financial and governance issues we now face. Attached
(for each of you) is a copy of my Proposed Strategy for Re-inventing All of the
Governments and Special Purpose Bodies of Ontario From the Top Down and the
Bottom Up. This Proposed Strategy has been prepared as a private citizen and not as a
member of the Halton Civil Service.
Although a separate GTA solution is included within the attached Proposed Strategy, what I
propose is not a GTA Specific Proposal but rather a Province Wide Strategy. We must not
forget that the current GTA, like our 800 plus municipalities, is a human abstraction. As
such it is a dynamic - flexible entity whose boundaries, composition and influence is
constantly changing - evolving over time. It is for this reason that we must view the GTA
within a Province Wide Strategy i.e. a Province Wide Framework which rationalizes (re-
invents) All of our Many Governments and their Special Purpose Bodies. I believe this
approach is absolutely essential to a successful resolution of our ongoing debate.
1
I believe you will see my Proposed Strategy as a Win - Win Scenario. It reconciles the lon
standing debate between those who argue for the Centralization of Government with those
who want De-centralization. It places the entire Conservative Government effort, as
articulated in the Common Sense Revolution, in a very positive light. It creates a flexible
framework for the downsizing and fixing of all our broken governments and their special
purpose bodies. It recognizes and strengthens the distinction between the Civil Service and
the Politicians to their mutual benefit and it can be applied to the Local, Regional, Provin
and even the Federal levels of Government. I seriously believe it will likely meet the
critical approval of a vast majority of Ontario stakeholders, including most local Municip
Politicians.
This Proposed Strategy is a small part of my ongoing (twenty five year) examination of ou
governments. I hope you and your staff find both the Proposed Strategy and the additiona
research material I have submitted (three separate binders) of some help in your task. I
look forward to your comments and ideas and would be most pleased to present or discuss
them further at your convenience.
Yours Truly
Robert M. White M. C.I.P. R.P.P
Cc. John Livey - Executive Director
A
PROPOSED STRATEGY FOR
RE - INVENTING
ALL OF THE GOVERNMENTS & SPECIAL PURPOSE BODIES OF
FROM THE TOP DOWN AND THE BOTTOM UP
BY
ROBERT M. WHITE
PREFACE
How Can We Fix Our Broke(n) Governments
and Their
Special Purpose Bodies?
June 8th 1995 will be remembered as turning point for all of the numerous Governments and Special
Purpose Bodies of Ontario. After a ten year hiatus the Ontario Progressive Conservative Party was
swept back into power by a wave of populist voters fed up with expensive, inefficient and
ineffective government. The message sent is clear - Ontario residents are demanding a big change
in the way our many government(s) operate and it now appears, based on recent statements and
actions by Ontarios new Premier and Cabinet Ministers, that the ruling Conservatives are
determined to deliver.
Over the last ten years Canadians have been dismayed by large increases in both government
spending and taxes. On the International Front we have watched the relative value of our dollar, and
our incomes, fall. We have even heard some frightening predictions by a few of the worlds top
financial gurus that Canada is about to hit the wall. If this ever happened many of our Federal,
Provincial and Municipal Governments, and their Special Purpose Bodies, would soon be forced into
bankruptcy, along with possibly thousands of Canadians who are currently banking on the future
financial well being of our Governments.
Canadians everywhere are finally beginning to realize that our numerous governments and their
special purpose bodies are not the panacea for all of lifes many problems. Despite the huge amounts
of tax and user fees we now give them, and despite the vast amounts of money they now spend on
our behalf, our many governments and their special purpose bodies are not only broke, they are truly
broke(n) in an organization sense as well. In fact, the pessimists amongst us argue it is already too
late to fix our many broken governments and their special purpose bodies and that we all should
prepare for a drastic reduction in our current standard of living.
Re-inventing All of the Governments and Special Purpose Bodies of Ontario - From the Top
Down and the Bottom Up, is not a dissertation on how Canada got into this incredible mess, nor
is it about who is responsible (the answer is we all are). It is simply a Proposed Strategy on how
we can begin the process of solving both our financial and our governance problems at the same
time. It provides a Vision of Government that is radically different from the unwieldy monsters we
have today. It is a Vision of Government which is easy to understand and likely will be embraced
by a vast majority of Ontario stakeholders. Whats more, the following Proposed Strategy sets out
an Action Plan on How we can all work together to attain our Vision of a Re-invented Ontario.
TABLE OF CONTENTS
PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
TABLE OF CONTENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii
EXECUTIVE SUMMARY
. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
PART ONE - INTRODUCTION
UNDERSTANDING OUR GOVERNANCE PROBLEMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
THE GOVERNMENT(S) WE NOW HAVE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
THE GOVERNMENT WE WANT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
GETTING THERE WILL BE THE PROBLEM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
PART TWO - PROPOSED ACTION PLAN
PROPOSED ACTION PLAN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
PART THREE - PROPOSED STRATEGY
RE-INVENTING ALL OF THE GOVERNMENTS & SPECIAL PURPOSE
BODIES OF ONTARIO-FROM THE TOP DOWN AND THE BOTTOM UP...........................1O
PROPOSED PROVINCIAL-MUNICIPAL GOVERNMENT ADMINISTRATIVE
DISTRICT (PMGAD) ORGANIZATIONAL STRUCTURE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...............15
HALTON-PEEL PMGAD AS AN EXAMPLE.................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. ..........20
THE GREATER TORONTO AREA - PMGAD PARTNERSHIPS . . . . . . . . . . . . . . . . . . . . .......................23
THE CONSERVATION AUTHORITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
CONCLUSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
APPENDIX - REFERENCE MATERIAL
ii
EXECUTIVE SUMMARY
RE - INVENTING
ALL OF THE GOVERNMENTS AND SPECIAL PURPOSE BODIES OF
ONTARI O
TO SOLVE OUR GOVERNANCE & FINANCIAL PROBLEMS WE MUST DO THE FOLLOWING:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Separate - Disentangle the Civil Service Arm of Government from the Political Arm.
Consolidate, Re-organize and Downsize all Provincial Ministries into 5 Super Ministries.
Consolidate (in stages) all of the CIVIL SERVANTS presently working for the Local
Municipalities, Region or County Municipalities, Local Boards and Commissions, (and some
Provincial Civil Servants), into 17 large PROVINCIAL- MUNICIPAL GOVERNMENT
ADMINISTRATIVE DISTRICTS (PMGAD).
Deliver all PMGAD services to the customer at his/her closest Local Government Branch
Office and create One Common District Computer Data Base System linking key PMGAD
Civil Servants.
Establish a Provincial - Local Municipal Board of Council (consisting of those
Mayors/Reeves and MPPs located in each Administrative District) and a Partnership
Agreement on how each District & Board of Council is to be governed - operate.
Transfer the responsibility for certain Region and County functions to the Province (e.g.
Health and Social Services), transfer responsibility for the remainder to the Local
Municipalities and Eliminate all Regions and Counties in Ontario.
Re-organize, Streamline and Downsize each PMGAD Civil Service.
Re-organize all Special Purpose Boards and require them to report to the Board of Council.
Operate the PMGAD on a charge back basis (according to the population and service
provided) with the aim that all costs be shared equally between the Province and
Municipalities.
Adopt a Common District Property Tax System and agree to Share Industrial/Commercial
Taxes and Establish a PMGAD Agreement on the sharing of all public revenues.
I I I
INTRODUCTION
UNDERSTANDING OUR GOVERNANCE PROBLEM
As one can guess by the title, Re-inventing All of the Governments and Special Purpose Bodies
of Ontario - From the Top Down and the Bottom Up, borrows many ideas from scholars and
experts in the fields of finance and governance. Ideas from Re-inventing Government by Osborne
and Gaebler and the many books and Articles by John Carver, particularly Boards That Make A
Difference, have been used extensively. The following Proposed Strategy is based on the premise
put forward by many noted authors that how our governments are organized is one of the main
reasons why we are having such great difficulty in solving our government and societal problems.
This report is all about solutions to our governance problems. It proposes a two prong attack on our
financial and governance problems - first from the Top (Provincial Level) Down and second from
the Bottom (Municipal Level) Up. Since all of Ontarios numerous governments exist solely at the
pleasure of the Province, the newly formed Government of Ontario must point the direction and
provide the necessary leadership to achieve our mutual goals. Once a Provincial Proposed Strategy
has been established all of the many other governments and special purpose bodies in Ontario can
begin the job of Re-inventing our public institutions from the Bottom (Municipal Level) Up. This
simultaneous assault will require the cooperation of a great many people, however, Canadians are
noted for their ability to work together in a civil manner.
The following Proposed Strategy requires the reader to make a paradigm shift in how one perceives
our many governments and their special purpose bodies. However, once fully grasped, additional
possibilities (not mentioned in this Proposed Strategy) will quickly become evident to those who
understand how our governments now operate. Fundamental to this paradigm shift are the ideas that:
1. In the eyes and wallets of all Canadian Taxpayer there is ONE, and only one,
Government (and not numerous governments with their special purpose bodies);
2. Our Government is a Business Corporation responsible to its shareholders and as such
must operate in a rationale, economic and customer focused fashion;
3. The Workers of our Government Corporation (the Civil Service) can and should be
kept separate from the Political arm of government;
4. The Board of Directors (the Political arm of government) must concentrate on
WHAT is to be done; and
5. The Civil Service must be kept free, as much as possible, to concentrate on HOW it
carries out the Political directives.
THE GOVERNMENT(S) WE NOW HAVE
Canada has just Two Official Levels of Government - the Federal and the Provincial. Each of these
two levels has been assigned specific responsibilities by the British North America Act. Despite the
specific assignments contained in our Constitution, each level of government carries out some
responsibilities that are currently assigned to the other level. Furthermore, because of our societys
increasing complexity, each level has created numerous Ministries, Departments, and Special Purpose
Bodies to achieve their stated purposes. In addition to the assigned and assumed responsibilities our
governments undertake special initiatives and provide special services considered important by the
governments of the day. These initiatives and services change over time as they normally are
established to address some specific need (which the government perceives to be currently lacking)
or to solve a particular problem. Invariably these additional initiatives and services result in more
government, often a special purpose body and bureaucracy with a particular stated mandate.
Although Canada is currently one of the largest countries in the world it has not been divided, like
our neighbour to the south, into 50 individual Provinces or States. In fact almost all of Canadas
Provinces (except Prince Edward Island) are larger than most world Nations. The huge expanse of
our Nation has forced both the Federal and Provincial levels of Government to further subdivide our
country into numerous Administrative Districts, Regions, Counties, Townships, Cities etc. In fact
Ontario has two major Tiers of Municipal Government i.e. the large Regions and Counties and
the smaller Local Municipalities. Both Tiers of Municipal Governments are dependent on the
Provincial Government for their very existence and both have their own separate bureaucracies.
The bulk of our current day government structure has been created over the last 50 years after the
World War II at a time when big government seemed to be the answer to many of our social
problems. Unfortunately the compartmentalization and specialization of our governments has meant
that each level, ministry, branch, department etc. has needed to duplicate much knowledge,
information, management and resources in order to provide services and solve problems which
are society wide based. The sheer size of our governments coupled with its increased
specialization and complexity has now itself become a major problem. Approximately 1.1
million Ontario residents, or about 24% of Ontarios total employed work force, currently work
for the greater public sector. Ontario has over 800 municipalities, 49 Regions, Counties and
Districts, 38 Conservation authorities, 165 School Boards, 307 Hydro Electric Commissions, 105
Police Services Boards, and a wide range of other government bodies too numerous to mention.
Our Governments have a well deserved reputation of being not only big and expensive but also as
being remote, inefficient, ineffective, difficult to understand and generally not customer friendly.
Normally this kind of reputation would be the death knell for most Canadian businesses, however
as our governments are monopolies we all have no choice but to deal with them. But before we can
deal with our governments we often find ourselves in the frustrating situation of trying to figure out
which government level, which Ministry, Branch or Special Purpose Body, is responsible for the
matter in question. We then hope we have guessed right, that we will get to speak to someone who
actually understands what it is we want, and that the Civil Servant who serves us knows how to help
us out. We have all heard the phrase You have got the wrong department/government.
2
CANADIAN AND ONTARIO EMPLOYMENT STATISTICS
TOTAL CANADI AN EMPLOYMENT 13, 505, 000 TOTAL ONTARI O EMPLOYMENT 5, 233, 000 38. 75%
TOTAL PUBLIC EMPLOYEES (ALL) 2, 640, 356 19. 55% REPORTED ONT. EMPLOYMENT (Al 1, 100, 000 21. 02%
TOTAL SALARY $98, 349, 000, 000 TOTAL PUBLI C EMPLOYEES 645, 742 58. 70%
AVERAGE SALARY $37, 248
PUBLI C SECTOR EMPLOYEES
P U B L I C S E C T O R E M P L O Y E E S FEDERAL * EST, 1 9 7 , 2 1 5 1 7 . 9 3 %
F E DE RAL 3 9 4 , 4 3 0 1 4 . 9 4 % P R O V I N C E 1 3 1 , 2 4 0 1 1 . 9 3 %
P PROVI NCI AL/ TER. 1 , 0 1 7 , 3 3 8 3 8 . 5 3 % HOS P I T AL S 1 7 5 , 4 9 6 1 5 . 9 5 %
L OCAL 8 9 8 , 2 2 0 3 4 , 0 2 % MUNI CI P AL 1 2 8 , 2 1 0 1 1 . 6 6 %
T OT AL 2 , 3 0 9 , 9 8 8 8 7 . 4 9 % S C H OOL B OA R D S 2 1 0 , 7 9 6 1 9 . 1 6 %
T O T A L 6 4 5 , 7 4 2 7 6 . 6 3 %
O T H E R G O V E R N M E N T B U S I N E S S E N T E R P R I S E S O T H E R G O V E R N M E N T B U S I N E S S E N T E R P R I S E S
F E DE RAL 1 4 9 , 3 5 2 5 . 6 6 % F E DE RAL E S T , 2 5 , 6 9 5 2 . 3 4 %
P R O V I N C I A L / T E R 1 2 9 , 3 7 4 4 . 9 0 % ONT ARI O E S T , 2 2 , 2 5 8 2. 02%
L OCAL 5 1 , 6 4 1 1 . 9 6 % L OCAL E S T , 8 , 8 8 5 0. 81%
T O T A L 3 3 0 , 3 6 7 1 2 . 5 1 % T O T A L 5 6 , 8 3 8 5. 17%
POSSIBLE PROVINCIAL & MUNICIPAL & SCHOOL BOARD SALARY SAVINGS
BY CI VI L SERVI CE DOWNSI ZI NG AT 2% PER YEAR
ASSUMING $40, 000 PER EMPLOYEE
T OT AL P ROV I NCI AL L OCAL - S CHOOL BOARD CI V I L S E RV I CE 6 4 5 , 7 4 2
2 % D O WN S I Z E A T $ 4 0 , 0 0 0 P E R E MP L O Y E E =
II
$516, 593, 600
GRAND TOTAL ALL PROVINCIAL - LOCAL - S CHOOL BOARD CI V I L S E RV I CE 1 , 1 0 0 , 0 0 0
2 % D O WN S I Z E A T $ 4 0 , 0 0 0 P E R E MP L O Y E E = I
$ 8 8 0 , 0 0 0 , 0 0 0
. . . .
.
POSSIBLE REGIONAL MODEL FOR
THE GOVERNMENT WE WANT
To understand how to fix our broke(n) governments we must first empathize with the governments
chief customer - the Canadian taxpayer. Studies have shown that most Canadians like their Local
Municipal governments best. Despite their short-comings, Ontarios 800+ Local Governments are
generally recognized as the most convenient, accessible, accountable and customer friendly
government.
If we step back and visualize all of our numerous governments, and their special purpose bodies, not
as many separate entities but rather as ONE Large Business Corporation (with numerous -
convenient Local Branch Offices) dedicated to providing ALL of our customer needs, we begin to
see various possibilities. If we could obtain almost all Ontario, Region/County, and Municipal
government services from just one convenient Local Municipal Government Branch Office we
would all be much happier government customers. To do this would require much re-organization
of our CIVIL SERVICE. At a minimum our Local Branch Office would need to be maned by Civil
Servants who really know how our governments work and who are dedicated to satisfying customer
needs. These Civil Servants would need to electronically connected to one Central District Office
and computer data base system.
But how can we Re-invent ALL of our Ontario governments and their special purpose bodies so that
they all work together as ONE Large District Corporation dedicated to providing all of our customer
needs at our Local Government Branch Office? The answer, in a nutshell, is to separate the Civil
Service from the Political arm of government and then to Consolidate, Re-organize and
Downsize all of our Civil Service as outlined by the following Summary of the Proposed
Strategy:
A. Establish One Stop Shopping - Customer Focused Government
1. Undertake a complete overhaul of Ontarios governments including all Ontario
Municipalities and Special Purpose Bodies. The purpose of the overhaul will be to
simplify the number, size, location and function of Ontario governments. This will
be done in stages with the ultimate goal of having All Local, Regional/County and
Many Provincial Government Services DELIVERED LOCALLY where the
customer - taxpayer is located. This means the Local Municipality Office is to
become not just a Local Government Office but rather a Local - Region/County -
Provincial Government Office - where the public can get all the information needed
to deal with government and/or receive the service requested without being sent all
over the Province.
B. Efficient Government - End the Duplication
2. Eliminate the current Region and County form of government.
3
3. Consolidate all of the current Local Municipality and all of the current Regional or
County Government Civil Servants into one large group to be administer (during the
interim - transition period) at the Region or County or District level. The new Civil
Service Group will be consolidated streamlined and restructured at the Region/County
level and then re-assigned back to the Local Municipality on a charge back basis.
4. Determine which Provincial government services can be delivered locally and begin
the process of transferring those staff to the Interim Region/County Civil Service. All
Provincial Local Field Office staff will be considered for this program.
5. Begin the process of establishing, across the Province, not more than 20 large
Geographic Districts based on a Collection - Partnership of Local Municipalities
(established by the Province after consultation with all concerned) to be called a
Provincial Municipal Government Administrative District (PMGAD).
A total of 17 proposed PMGADs, their location, size etc. is attached.
6. Transfer some of the responsibilities currently handled by the Regions and Counties
back to the Province and transfer the remaining back to those Local Municipalities
which are located in the PMGAD.
7. Transfer all of the real estate and infrastructure of the current Regions and Counties
to the Local Municipality in which the real estate and infrastructure is located.
8. Streamline and then Re-organize the Civil Servants in each PMGAD into new
Departments corresponding to the services provided. The services will be provided
to the people in the PMGAD at their closest LOCAL Municipality Office. The level
of service provided will depend on the type of service, whether it is urban or rural,
and the service level chosen by the Local Council.
9. Downsize the Civil Service.
10. Eliminate most Region/County Special Purpose Bodies.
11. Amalgamate some Local Municipalities, and Create some new ones (this will be much
easier once the Bulk of the Civil Service is separated from the political arm and once
the new PMGAD is established).
c . Effective Government - Clarify the Roles
12. (Once the PMGAD is established) have the Local Municipality Mayor or Reeve (or
designate) sit on a Board of Council which will meet once a month at the PMGAD
with other Local Municipality (like) representatives in order to establish Broad
PMGAD Policy common to the entire District. The Local Municipal Politicians will
sit at the local level as the Local Council and will decide on Local issues.
4
13. Instruct and Authorize the PMGAD Civil Service to enter into agreements with the
Local Municipalities on the provision of PMGAD services to each Local Municipality
and to Implement the Policy established by the Board of Council.
14. The MPPs within each PMGAD shall also sit at the PMGAD.
D. Accountable Government - No Buck Passing
15.
16.
17.
18.
19.
20.
A new system of voting will be introduced at the Board of Council level based on
Local Municipality population served plus size of geographic area.
Provincial - Local Government Budgeting will be coordinated through the PMGAD.
The operating cost of the PMGAD will be split between the Province and the
Municipalities.
The Local Municipality portion of the costs will be funded on the basis of population
served, the type of service delivered and according to the level of service chosen by
the Municipality.
All Property within the PMGAD will be assessed according to one MVA or UVA
system.
All Industrial & Commercial property taxes will be assessed a uniform District tax
basis the revenue from which will be shared at least 66% being retained by the Local
Municipality and 33% for the other PMGAD Municipalities on the basis of their
respective populations.
GETTING THERE WILL BE THE PROBLEM
To get from where we now are, to where we want to be will not be a simple task. There are
hundreds of thousands of people directly involved, both within and outside government. Many of
the stakeholders, including the Public and special interest groups, have a substantial vested interest
which they will want to protect. Nevertheless, we must not forget we all have a stake in this issue
and that we may not have as much time as we want to bring about all the changes needed.
The changes outlined in this Proposed Strategy should be implemented on an ongoing basis, however,
the bulk can be completed within 4 years. The 4 year time frame is necessary not just because of
logistic and economic reasons but also because the likelihood of success of the Proposed Strategy
increases immensely if it is embraced by all those most affected i.e. the Civil Service and the
Politicians. To get everyones commitment to a change in the way we govern we must first make
sure that the proposed changes make sense to both those who understand how government works and
to those concerned about adverse impacts on the level of service to be delivered.
5
PROVINCE OF ONTARIO
A
PROPOSED STRATEGY FOR
RE - INVENTING
ALL OF THE GOVERNMENTS AND SPECIAL PURPOSE BODIES OF
ONTARIO
FROM THE TOP DOWN AND THE BOTTOM UP
PROPOSED STRATEGY FOR
RE - I NVENTI NG
ALL OF THE GOVERNMENTS AND SPECIAL PURPOSE BODIES OF
NTARI O
THE DESIRE OF THE PEOPLE OF ONTARIO TO: WHEKEAS IT IS
I.
II.
III.
IV.
v .
VI.
VII.
VIII.
IX.
x .
x l .
Reduce government regulation.
Eliminate one level of government.
Reduce the total size of government.
Reduce the total cost of government.
Increase government efficiency
Increase government effectiveness.
Make government more accessible & convenient.
Improve government customer service.
Make government more accountable.
Make government easier to understand.
Make government more democratic.
AND WHEREAS THE NEW ONTARIO GOVERNMENT BELIEVES
1. The Primary Purpose of Government is to: Enhance the Social Good; Secure Justice
and Freedom; and Provide a Forum for Peoples Free Expression.
2. The Primary Purpose and Obligation of the Elected and Appointed Government
Officials and the Civil Service is to serve the needs of the people - the customers,
owners and bill/taxpayers of Canadas Governments.
3. That to the Canadian Taxpayer there is also only one body of government.
4. That the Implementation Arm of Government, i.e. the Civil Service, should be kept
Separate from the Legislative/Policy Arm of Government - the Politicians.
5. That Most Government Services should be Delivered where the customer is located
i.e. in his/her Local Community.
AND WHEREAS IT IS THE STATED PLAN OF THE GOVERNMENT TO:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Reduce Non-Priority Government Spending by 20%
Reduce Red Tape and Regulatory Burden.
Cut the Size of Government in Ontario.
Balance the Budget in 4 years.
Cut out Fat and Waste and put People First.
Reduce Management Bureaucracy and the Provincial Public Service by 13,000 people
by 1999.
Eliminate many School Boards and Duplication in our School Boards.
Reduce the Number of Politicians, Trustees, and Commissions and officials.
Eliminate One Level of Government and the Duplication of Services at the Municipal
levels.
Reduce Government Spending by $5.35 billion by 1999.
Work with Government Employees, listening to their ideas and eliciting their help
in taking action.
7
Therefore the Government of Ontario announces its intention to make major changes
t o ALL of t he numerous
government Ministries, Agencies,
Bodies, Commissions,
Municipalities and Special Purpose Bodies of Ontario as follows:
1. Consolidate, Re-organize, Streamline,
& Downsize ALL Government of Ontario
Ministries, Branches, Departments, Agencies, Commissions, and Special Purpose
Bodies government within the following context:
a) Ministry of Finance. Planning & Governmental Affai
rs - (This Super-
Ministry is Dedicated to the Overall Management of all Ontario
Government Ministries, Departments etc. and includes the Cabinet Offices and
Management Boards and the Departments of:
Finance - (All Provincial Expenditures and Revenues)
Municipal Affairs - (Matters Concerning Ontarios Municipalities)
Intergovernmental Affairs - (Matters Concerning Ontarios Relationship
with the rest of Canada and the World)
b) Ministry of Urban & EC
onomic Developmen~ - (This Super-Ministry is
Dedicated to the Business of Economic Growth and Community Economic
Development particularly as it relates to Urban Areas of the Province and
includes the Departments of:
Economic Development and Trade
Labour and Employment
Consumer and Commercial Relations
Urban Affairs and Housing
Transportation and Communications
Energy, Hydro and Utility Conservation
c) Ministry of Rural & Natural Resource Development - (This Super-Ministry
is Dedicated to Business of Economic Growth and Community
Development particularly as it relates to Rural Areas of the Province and
includes the Departments of:
Agriculture and Food
Rural Recreation, Tourism and Community Affairs
Natural Resource Development
Northern Development and Mines
Native Communities and Affairs
d) Ministry of Social & Community Development - (This Super-Ministry is
Dedicated to the Overall Societal Growth and Human Development as it
relates to the entire Province and includes the Departments of:
8
PROVINCIAL GOVERNMENT RE-ORGANIZATlION
SEVENTEEN MINISTRIES PLUS VARIOUS OFFICES
AND 81251.6 CIVIL SERVANTS
T O
FIVE. MINISTRIES INCLUDING TWENTY - FOUR "DEPARTMENTS"
MI NI STRY OF SOCl AL
AND
COMMUNI TY DEVELOPMENT
PLUS
SIX DEPARTMENTS
I
14,152 CI VI L SERVANTS
1
MINISTRY OF JUSTICE,
AND
ENVI RONMENTAL PROTECTI ON
PLUS
FOUR DEPARTMENTS
36,758 CI VI L SERVANTS
MI NI STRY OF URBAN
AND
ECONOMI C DEVELOPMENT NATURAL RESOURCE
PLUS
P L U S
SI X DEPARTMENTS FI VE DEPARTMENTS
14,352 CI VI L SERVANTS 7,482 CI VI L SERVANTS
Education, Colleges and Universities
Community and Social Services
Culture and Citizenship
Francophone Affairs
Womens Issues
Childrens Issues
e) Ministry of Justice, Health, Safety & Environmental Protection - (This
Super-Ministry is Dedicated to the Overall Health and Safety of All of the
People of Ontario and to the Conservation and Protection of Ontarios
Natural Environment and includes the Departments of:
Attorney General
Solicitor General & Correctional Services
Health (Human)
Natural Environment Protection
2. Decentralize as much of the provincial bureaucracy (staff), and the services they
deliver, to the municipal level(s) of government.
3. Expand and Strengthen the authority and ability of Local Municipal Governments to
provide one stop shopping of a wide range of Municipal and Provincial public
services currently provided to the taxpayers within their local community.
4. Consolidate, Re-organize, Streamline, & Downsize all Ontario Regional, County,
Local Municipal Governments, and their Special Purpose Bodies (no Provincially
funded or Provincially controlled government body will be overlooked).
5. Eliminate ALMOST all of the current 49 Region/County/Districts and their related
Governments and Special Purpose Bodies as now constituted. This includes all 165
School Boards both the Public and Separate.
6. Eliminate many other non Region/County/District Special Purpose Bodies as presently
now constituted including:
a) Most of the 307 Local Hydro-Electric Commissions (not more than 20
new Consolidated HEC will be established);
b) Some of the 38 Conservation Authorities (approximately 17 CA will be
established).
7.
8.
9.
10.
11.
12.
13.
14.
15.
Establish not more than 20 new Provincial - Municipal Government Administrative
Districts (PMGAD) across most of Ontario whose primary purpose shall be to bridge
the current Political Policy Gap between the Local Municipality level of Government
and the Provincial Level of Government and to ensure that all Provincial and
Municipal government services are provided in the most efficient, effective, and
coordinated manner possible.
Establish, and/or adjust the responsibilities, authorities and boundaries of all
remaining: Area and Regional/County Governments; Police Services Boards; School
Boards; Hydroelectric Commissions; Conservation Authorities; and Provincial
Administrative Bodies and Districts.
Re-examine what services should be provided by Ontarios Governments and what
services should be discontinued, sold, or transferred to the private sector.
Establish which Government services can be delivered on a Public - Private
Partnership basis (the private sector).
Establish which Government services can be delivered on a Partnership basis with
another Public sector body (Federal).
Change the manner in which many government services at both the Provincial and
Municipal level are funded.
Focus the computerization of Information at the PMGAD level with direct networks
to both the Local Municipalities and the Province.
Encourage a return to Non-partisan Participatory Government in Ontario by
introducing Legislation to:
a) Permit Referenda Questions (subject to Provincial approval) to be held at same
time as each Municipal Election Year (every 3 years) as a regular means for
the public to express its desire concerning both important Municipal and
Provincial matters; and
b) Change the manner in which Ontario residents elect Municipal and Provincial
officials i.e. establish a weighted voting system where each voter can indicate
hi/her first choice (5 votes), second choice (3 votes) and third choice (1 vote).
Try to accomplish as much of the Downsizing of Government with the Cooperation
of the Civil Service and through attrition wherever possible.
10
A
PROPOSED
ORGANIZATIONAL --- GOVERNANCE MODEL
FOR THE
AND ITS
C OM M I T T E E S
PROPOSED ORGANIZATION
OF THE
PROVINCIAL - MUNICIPAL GOVERNMENT ADMINISTRATIVE DISTRICTS
PMGAD
Each PMGAD shall be established by an Act of the Legislature after consulting with the
a p propriate government bodies, affected parties and the public.
PURPOSE OF THE PMGAD
1. To provide the Government Institutional Structure to bridge the Gap between the Municipal
and Provincial Levels of Government.
2. To provide Economies of Scale in the Planning, Administration, Coordination and Delivery
of needed Public Services and Infrastructure to citizens of the District.
3. To Oversee the Administration and Implementation of all Authorities and Responsibilities,
Assigned and/or Delegated by the Province to the Local Municipalities, so as to ensure that
all proposed Development and Infrastructure within the PMGAD is processed, evaluated, and
adjudicated in accordance with:
a) Relevant Provincial Legislation, Regulations, and Delegation Orders;
b) Relevant Provincial Plans, Policy Statements, and Guidelines;
c) The PMGAD Policy Plan and Guidelines;
d) PMGAD Council Bylaws, Policies and Procedures;
e) Relevant Area Municipality Official Plans and Zoning Bylaws.
4. To Maximize the Assets and Strengths of the Provincial and Local Municipality Governments.
5. To Coordinate Provincial efforts and better deliver Provincial Objectives at the Local
Municipality level.
6. To Resolve Problems and Disputes within and between the Local Municipalities.
11
PMGAD GOVERNANCE
1. Each PMGAD shall be Governed by a Board of Council whose membership will consist
of one representative member from each of the Local Municipalities (preferably the Mayor
or Reeve) plus those Members of the Provincial Parliament who represent the District.
2. The Board of Council, of each PMGAD shall meet approximately once a month and shall
consist of not more than 50 members based on the following:
i) All Those Provincial MPPs whose Riding (or part thereof) is located in the
PMGAD;
ii) All Area Municipality Mayors and Reeves (or his/her acting);
3. Each Board of Council Member, Mayor, Reeve or MPP who is selected to attend the
PMGAD Board of Council Meeting, shall be entitled to caste votes on the basis of the
following:
a) Any Mayor, Reeve or MPP who sits on the Board of Council as a participating
Member Who Represents a Riding Population of:
not less than 1,000 and not more than 20,000 may cast = 1 vote
not less than 20,000 and not more than 35,000 may cast = 2 votes
not less than 35,000 and not more than 55,000 may cast = 3 votes
not less than 55,000 and not more than 80,000 may cast = 4 votes
not less than 80,000 and not more than 110,000 may cast = 5 votes
not less than 110,000 and not more than 145,000 may cast = 6 votes
not less than 145,000 and not more than 185,000 may cast = 7 votes
not less than 185,000 and not more than 230,000 may cast = 8 votes
not less than 230,000 and not more than 270,000 may cast = 9 votes
not less than 270,000 and not more than 315,000 may cast = 10 votes
not less than 315,000 and not more than 365,000 may cast = 11 votes
not less than 365,000 and not more than 410,000 may cast = 12 votes
12
POSSIBLE PMGAD ORGANIZATIONAL STRUCTURE
COMMI TTEE OF
COMMI TTEE OF PUBLI C
PUBLIC & SEPARATE -EDUCATION ,
ADMINISTRATION AND FINANCE
COMMI TTEE OF PUBLI C
COMMITTEE OF HEALTH AND COMMI TTEE OF PLANNI NG
PROTECTION AND EMERGENCY COMMUNITY & SOCIAL SERVICES
INFRASTRUCTURE & PUBLIC WORKS
not less than 410,000 and not more than 470,000 may cast = 13 votes
not less than 470,000 and not more than 535,000 may cast = 14 votes
not less than 535,000 and not more than 605,000 may cast = 15 votes
not less than 605,000 and not more than 780,000 may cast = 16 votes
not less than 780,000 and not more than 860,000 may cast = 17 votes
4. Establish Special Purpose Committees consisting of elected members from the Local Council
and MPPs, to assist in its role as Policy Maker for the District.
PMGAD CIVIL SERVICE
1. The PMGAD shall be Administered and Operated by a newly formed group of Civil Servants
who will initially be staffed by all existing Local and County - Region Government employees
currently employed and located within the PMGAD. Certain Special Purpose Body staff and
certain Provincial Government staff who provide a function/service which should be delivered
in the PMGAD will be transferred to the PMGAD at different points in time.
2 A new PMGAD Management group - CAO and Commissioners - will be selected by the
Board of Council and who will report to the Board.
3. The PMGAD Management shall oversee all PMGAD staff and shall ensure the Delivery of
all PMGAD services across the District most of which will be provided locally at the
existing Area Municipality Offices and Facilities and the Implementation of the Councils
Policy.
PMGAD AREAS OF RESPONSIBILITY
1. All of the currently assigned and optional services provided by each County or Region (i.e.
their legislated - mandated responsibilities) will be transferred (assigned) to the Local
Municipality of the Province. The Contract provider of the service, however, will be the
PMGAD Municipal Service Provider. The Province will assume responsibility for the
following:
a) Health
b) Social Services
c) Provincial Planning at the PMGAD
13
2. The PMGAD shall enter into an Agreements with constituent Local Municipalities on the
Provision and cost of:
a) Base Services to be provided throughout the entire Local Municipality,
b) Base Services to be provided to the Local Municipality Urban Areas Only;
c) Base Services to be provided to the Rural Area Only; and
d) Enhanced or Extra Service Deliveries,
3. District Planning will be undertaken at the PMGAD however the PMGAD Plan will be a
Broad Policy Plan
TRANSFER OF REGION AND COUNTY ASSETS AND LIABILITIES
1. All of the real estate property, buildings and infrastructure of the former County or Region
will be transferred to the appropriate Local Municipality.
2. All of the debt and liabilities of the former County or Region will be Transferred to the
PMGAD.
3. Once created the Constituent Local municipalities and the Province will be responsible for
all liabilities established by the PMGAD.
PROPERTY TAXATION
1. All property taxes shall be assessed on a uniform District wide basis using Land Area and
Building Size, and Land Use.
2. All Industrial & Commercial property taxes will be assessed a uniform District tax basis the
revenue from which will be shared at least 66% being retained by the Local Municipality and
33% for the other PMGAD Municipalities on the basis of their respective populations.
TRANSITION PERIOD
1. Initially all current Region and County Governments within the PMGAD will be retained and
will only be disbanded one the PMGAD for the area has been created.
2. Initially all current Local Municipalities within each PMGAD will be retained, however
the number size and boundaries of each Local Municipality will be reviewed by the
Province.
14
3.
THE
An Implementation Plan will be prepared for each District confirming which Local
Municipalities will be in which PMGAD.
17 PROPOSED PROVINCIAL PMGADs
The Attached Proposed PMGAD Map 1 shows 17 PMGADs based on certain combinations -
consolidations of the existing Counties, Regions and Districts. Although there are some advantages
to the 17 PMGAD Combinations indicated on Map 1, the Final Approved PMGADs will only be
decided after public consultation with all concerned. Map 2 has been provided in an effort to
generate further discussion on the possibilities of slightly different configuration of areas and
populations.
A chart is attached explaining the key information for each PMGAD and the amount of savings that
can be accrued to the Ontario taxpayer as the result of just a 2 % Downsizing of the PMGAD Civil
Service each year that the Program is in existence. A 2% Downsizing Target has been chosen to
take advantage of the normal staff retirement and attrition that occurs on an ongoing basis.
Downsizing through attrition is the most cost effective manner to Downsize as it will save the
Ontario taxpayer the expense of costly staff buy out packages that often happen when organizations
downsize. These Totals include an estimate of the annual personnel savings that could be accrued
by the consolidation of the Municipal, Hydroelectric and School Board staff but does not include all
those accrued personnel savings that may be accrued due to the consolidation and downsizing of other
Special Purpose Bodies and Provincial Ministries.
The Annual 2% Downsizing in the Civil Service is made possible due to the large Consolidation of
the Civil Service (pooling of staff and resources) within each PMGAD. Economies of scale in the
operation of the new PMGAD, (various capital expenses, office space, computers etc.) will inevitably
occur as the result of the Consolidations. These Nonstaff savings have not been factored into the
totals outlined in the attached charts. The possible additional savings to the taxpayer as the result
of large reductions in the total number of Civil Servants could actually exceed that of the actual
savings in staff personnel costs (salary/wages and benefits).
The Political Organization of each PMGAD may vary however it is recommended that all Local
Municipal Councillors be encouraged to sit on the various PMGAD Committees so that Local
Council views are represented. The Province may re-consider Direct Election of certain Officials
e.g. School Board Trustees, in favour of a system which allows the Local Councillors to sit on a
wide variety of PMGAD Committees. Since each Municipality has only one seat on the PMGAD,
and since the Mayor or Reeve may not always be available to sit at the PMGAD, the Local Councils,
with the Mayors/Reeves agreement, may wish to rotate certain Local Councillors to sit at the Board
of Council or to attend a Board of Council Meeting to present or provide specific information to the
Board.
The Province is prepared to consider various ways to improve Local Councillor involvement in the
decision making that affects a wide range of Municipal, Provincial and Special Purpose Body
matters.
15
STAGE 2
INITIAL
SIMILIAR
STAGE 3
CONSOLIDATION OF ALL
MUNICIPAL EMPLOYEES
STAGE 1 DISCUSSING AND DECIDING ON A PLAN OF ACTION
STAGE 2 INITIAL CONSOLIDATION OF IDENTICAL DEPARTMENTs/FUNCTIONS
STAGE 3 INITIAL CONSOLIDATION OF ALL SIMILIAR EMPLOYEES
STAGE 4 CREATION OF NEW DISTRICTS AND CONSOLIDATION OF MUNICIPAL EMPLOYEES
STAGE 5 CONSOLIDATION WITH SELECT PROVINCIAL EMPLOYEES
STAGE 4
CREATI ON OF NEW DI STRI CTS AND
CONSOLIDATION OF MUNICIPAL EMPLOYEES
STAGE 1
STAGE 2-
STAGE 3
STAGE 4
STAGE 5
STAGE 6
STAGE 7
DISCUSSING AND DECIDING ON A PLAN OF ACTION
INITIAL CONSOLIDATION OF IDENTICAL DEPARTMENTS/FUNCTIONS
INITIAL CONSOLIDATION OF ALL "SIMILIAR" EMPLOYEES
CREATION OF NEW DISTRICTS AND CONSOLIDATION OF MUNICIPAL EMPLOYEES
CONSOLIDATION WITH SELECT PROVINCIAL EMPLOYEES
LOCAL MUNICIPALlTY CONSOLIDATION
FEDERAL GOVERNMENT CONSOLIDATION
T H E H AL T ON - P E E L
PROVINCIAL - MUNICIPAL GOVERNMENT ADMINISTRATIVE DISTRICT
A GOVERNMENT PARTNERSHIP
CONSISTING OF
THE P ROVI NCE OF
AND
ONTARI O
THE CITY OF BURLINGTON
THE TOWN OF OAKVILLE
THE TOWN OF MILTON .
THE TOWN OF GEORGETOWN
THE TOWN OF ACTON
THE CITY OF MISSISSAUGA
THE CITY OF BRAMPTON
THE TOWN OF CALEDON
HALTON - PEEL PMGAD (REGIONS) AS AN EXAMPLE
Year One - Consolidation of Halton
A. Municipal Staff (1 Region and 4 Area Municipalities)
Burlington staff = 745
Oakville staff = 729
Milton staff = 105
Halton Hills staff = 154
Halton Region staff = 1,483
Total Halton Municipal staff = 3,216 Staff
A 2% Downsizing would reduce this Halton Total Staff to 3,152.
B. Hydroelectric Commission Staff (4 Area Municipalities)
Burlington staff = 128
Oakville staff = 107
Milton staff = 33
Halton Hills staff = 38
Total Halton HEC staff = 306 Staff
A 2% Downsizing would reduce this Halton Total Staff to 300
C. School Board Staff (2 Boards - Public and Catholic)
Public staff = 5,000
Catholic staff = 1,400
Total School staff = 6,400
A 2% Downsizing would reduce this Halton Total Staff to
6,272.
Total Halton Municipal, Hydro and School staff Downsized from 9,922 to 9,724
16
EXISTING HALTON REGION & HALTON AREA MUNICI PALI TI ES
TOTAL 4 MPP + 1 CHAIRMAN + 4 MAYORS + 51 COUNCILLORS + 3,216 CIVIL SERVANTS
CITY OF BURLINGTON
I
MAYOR +
1 6 L O C A L C O U NC I L L O R S
AS S E T S
7 4 5
LI ABI LI TI Es
E MP L OY E E S
I ADMINISTRATION
CLERKS
LEGAL
PROPERTY
FINANCE
LOCAL PLANNING
PARKING
STORM SEWERS DRAINAGE
LOCAL ROADS
FIRE PROTECTION
SOLID WASTE COLLECTION
PARKS AND RECREATION
BUSINESS DEVELOPMENT
BUILDING & FIRE CODE PERMITs
TAX COLLECTION
MUNICIPAL LICENSING
MUSEUMS
TRANSIT
R EGiON oF HALTON
CHAI RMAN +
24 REGIONAL COUNCILLORS
ASSETS
1,483
LIABILITIEs
EMPLOYEES
ADMINISTRATION
CLERKS
LEGAL
PROPERTY
FINANcE
REGION PLANNING
WATER SUPPLY
SANITARY SEWERs
REGION ROADS
P O LICE P R OTECTI ON
SOLID WASTE LANDFILL
SOCIAL SERVICES
B USI NESS D E V EL O P M E N T
HEALTH
TAX COLLECTION
MUNICIPAL LICENSING
MUSEUM
HOME CARE NURSI NG
HOUSING
TOWN OF OAKVILLE
MAYOR +
1 2 LOCAL C O UN C I L LO R S
ASSETS
729
LIABILITIEs
EMPLOYEES
ADMI NISTRATI ON
CLERKS
LEGAL
PROPERTY
FINANCE
LOCAL PLANNING
PARKING
STORM SEWERS DRAINAGE
LOCAL ROADS
FIRE PROTECTION
SOLID WASTE COLLECTION
PARKS AND RECREATION
BUSINESS D EVELOPMENT
BUILDING & FIRE CODE PERMITs
TAX COLLECTION
MUNICIPAL LICENSING
MUSEUMS
TRANSIT
ANIMAL CONTROL
TOWN
OF MILTON
MAYoR +
11 LOCAL COUNCILLORS
ASSETS
105
LIABILITIEs
EMPLOYEES
ADMINISTRATION
CLERKS
LEGAL
PROPERTY
FINANCE
LOCAL PLANNING
PARKING
STORM SEWERS DRAINAGE
LOCAL ROADS
FIRE PROTECTION
SOLID WASTE COLLECTION
PARKS AND RECREATION
B USINESS DEVELOPMENT
BUILDING & FIRE CODE PERMITs
TAX COLLECTION
MUNICIPAL LICENSING
MUSEUMS
TRANSIT
ANIMAL CONTROL
TOWN OF HALTON HILLS
MAYOR +
12 LOCAL COUNCILLORS
ASSETS
154
LIABILITIEs
EMPLoY
ADMINISTRATION
CLERKS
LEGAL
PROPERTY
FINANCE
LOCAL PLANNING
PARKING
STORM SEWERS DRAINAGE
LOCAL ROADS
FIRE PROTECTION
SOLID WASTE COLLECTION
PARKs AND RECREATION
BUSINESS DEVELOPMENT
BUILDING & FIRE CODE PERMITS
TAX COLLECTION
MUNICIPAL LICENSING
MUSEUMS
TRANSIT
ANlMAL CONTROL
Year One Consolidation of Peel
A. Municipal Staff (l Region plus 3 Area Municipalises) -Year One
Mississauga staff =
Brampton staff =
Caledon staff =
Peel Region staff =
2,545
1,203
129
3,772
Total Peel Municipal staff = 7,649
A 2% Downsizing would reduce this Peel Total Staff to 7,496
B. Hydroelectric Commission Staff (3 Area Municipalities)
Mississauga staff =
Brampton staff =
Caledon staff =
318
200
0
Total Peel HEPC staff = 518
A 2% Downsizing would reduce this Peel Total Staff to 508
C. School Board Staff (2 Boards - Public and Catholic)
Public staff = 9,071
Catholic staff = 6,500
Totol Peel School staff = 15,571
A 2% Downsizing would reduce this Peel Total Staff to 15,260
Total Peel Municipal, Hydro and School staff Downsized from 23,738 to 23,264
17
N E W H A L T O N D I S T R I C T & H A L T O N A R E A MU N I C I P A L I T I E S
STAGE ONE HALTON MUNICIPAL EMPLOYEES CONSOLIDATION
TOTAL 4 M P P
II CITY OF BURLI NGTON
r
TOWN OF OAKVILLE
11
+ 1 CHAIRMAN + 4 MAYORS + 51 COUNCILLORS + 3,152 CIVIL SERVANTS
DI STRI CT OF HALTON
CHAIRMAN +
24 DI STRI CT COUNCI LLORS
ASSETS 3,112
LIABILITIES EMPLOYEES
ADMINISTRATION
CLERKS
LEGAL
PROPERTY
FINANCE
REGION & LOCAL PLANNING
WATER SUPPLY
SANITARY & STORM SEWERS
REGION & LOCAL ROADS
POLICE PROTECTION
SOLID WASTE LANDFILL
SOCIAL SERVICES
BUSINESS DEVELOPMENT
HEALTH
TAX COLLECTION
MUNICIPAL LICENSING
MUSEUM
HOME CARE NURSING
HOUSING
PARKING
FIRE PROTECTION
PARKS AND RECREATION
BUILDING & FIRE CODE PERMITS
TRANSIT
ANIMAL CONTROL
NEW PEEL DI STRI CT & PEEL AREA
I TOWN OF HALTON HILLS 1
MAYOR +
12 LOCAL COUNCILLORS
ASSETS 10
LIABILITIES EMPLOYEES
ADMINISTRATION
MUNICIPALITIES
STAGE ONE PEEL MUNICIPAL EMPLOYEES CONSOLIDATlON
TOTAL 7 MPP + 1 CHAIRMAN + 3 MAYORS + 34 COUNCILLORS + 7,496 CIVIL SERVANTS
DISTRICT OF PEEL
CHAIRMAN +
21 REGIONAL COUNCILLORS
ASSETS 7,466
LIABILITIES EMPLOYEES
ADMINISTRATION
CLERKS
LEGAL
PROPERTY
FINANCE
REGION & LOCAL PLANNING
WATER SUPPLY
SANITARY & STORM SEWERS
REGION & LOCAL ROADS
POLICE PROTECTION
SOLID WASTE LANDFILL
SOCIAL SERVICES
BUSINESS DEVELOPMENT
HEALTH
TAX COLLECTION
MUNICIPAL LICENSING
MUSEUM
HOME CARE NURSING
HOUSING
PARKING
FIRE PROTECTION
PARKS AND RECREATION
BUILDING & FIRE C ODE PERMITS
TRANSIT
ANIMAL CONTROL
ClTY OF MISSISSAUGA
MAYOR +
9 LOCAL COUNCI LLORS
ASSETS
2,545
LIABILITIES
EMPLOYEES
ADMINISTRATION
CLERKS
LEGAL
PROPERTY
FINANCE
LOCAL PLANNING
PARKING
STORM SEWERS DRAINAGE
LOCAL ROADS
FIRE PROTECTION
SOLID WASTE COLLECTION ,,
PARKS AND RECREATION
BUSINESS DEVELOPMENT
BUILDING & FIRE CODE PERMITs
TAX COLLECTION
MUNICIPAL LICENSING
MUSEUMS
TRANSIT
ANIMAL CONTROL
REGI ON OF PEEL
CHAIRMAN +
21 REGIONAL COUNCILLORS
ASSETS
3, 772
LlABILITIES
EMPLOYEES
ADMINISTRATION
CLERKS
LEGAL
PROPERTY
FINANCE
REGION PLANNING
WATER SUPPLY
SANITARY SEWERS
REGION ROADS
POLICE PROTECTION
SOLID WASTE LANDFILL
SOCIAL SERVICES
BUSINESS DEVELOPMENT
HEALTH
TAX COLLECTION
MUNICIPAL LICENSING
MUSEUM
HOME CARE NURSING
HOUSING
CITY OF BRAMPTON
MAYOR +
16 LOCAL COUNCILLORS
ASSETS
1,203
LIABILITIES
EMPLOYEES
ADMINISTRATION
CLERKS
LEGAL
PROPERTY
FINANcE
LOCAL PLANNING
PARKING
STORM SEWERS DRAINAGE
LOCAL ROADS
FIRE PROTECTION
SOLID WASTE COLLECTION
PARKs AND RECREATION
BUSINESS DEVELOPMENT
BUILDING & FIRE CODE PERMITs
TAX COLLECTION
MUNICIPAL LICENSING
MUSEUMS
TRANSIT
ANIMAL CONTROL
TOWN OF CALEDON
MAYOR +
9 LOCAL COUNCI LLORS
ASSETS
129
LIABILITIES
EMPLOYEES
ADMINISTRATION
CLERKS
LEGAL
PROPERTY
FINANcE
LOCAL PLANNING
PARKING
STORM SEWERS - DRAINAGE
LOCAL ROADS
FIRE PROTECTION
SOLID WASTE COLLECTION
PARKs AND RECREATION
BUSINESS DEVELOPMENT
BUILDING & FIRE CODE PERMITs
TAX COLLECTION
MUNICIPAL LICENSING
MUSEUMS
TRANsIT
ANIMAL CONTROL
NEW HALTON
PEEL DI STRI CT & AREA MUNI CI PALI TI ES
STAGE TWO PEEL & HALTON MUNICIPAL EMPLOYEES CONSOLIDATION
TOTAL 11 MPP + 1 CHAIRMAN + 8 MAYORS + 85 COUNCILLORS + 10,435 CIVIL SERVANTS
CITY OF BURLINGTON
!
MAYOR +
16 LOCAL COUNCILLORS
ASSETS
10
LIABILITIES
EMPLOYEES
DISTRICT OF HALTON PEEL
CHAIRMAN +
24 DISTRICT COUNCILLORS
ASSETS
10,365
LIABILITIES
EMPLOYEES
ADMINISTRATION
CLERKS
LEGAL
PROPERTY
FINANCE
DISTRICT & LOCAL PLANNING
WATER SUPPLY
SANITARY & STORM SEWERS
DISTRICT & LOCAL ROADS
POLICE PROTECTION
SOLID WASTE LANDFILL
SOCIAL SERVICES
BUSINESS DEVELOPMENT
HEALTH
TAX COLLECTION
MUNICIPAL LICENSING
MUSEUM
HOME CARE NURSING
HOUSING
PARKING
FIRE PROTECTION
PARKS AND RECREATION
BUILDING & FIRE CODE PERMITS
TRANSIT
ANIMAL CONTROL
TOWN OF MI LTON
MAYOR +
11 LOCAL COUNCILLORS
ASSETS
10
LIABILITIES
EMPLOYEES
ADMINISTRATION
TOWN OF GEORGETOWN
MAYOR +
8 LOCAL COUNCILLORS
ASSETS
5
LIABILITIES
EMPLOYEES
ADMINISTRATION
TOWN OF ACTON
MAYOR +
4 LOCAL COUNCILLORS
ASSETS
5
LIABILITIES
EMPLOYEES
ADMINISTRATION
CITY OF BRAMPTON
MAYOR +
16 LOCAL COUNCILLORS
ASSETS
10
LIABILITIES
EMPLOYEES
ADMINISTRATION
Year Two - Consolidation, Streamlining and Re-organization at the PMGAD
1. Halton - Peel Total Municipal Staff - End of Year Two = 10,801
A 2% Downsizing would reduce this Halton - Peel Total Staff to 10,585
2. Halton - Peel Total HEPC Staff - End of Year Two = 808
A 2% Downsizing would reduce this Halton - Peel Total Staff to 792
3. Halton - Peel Total School Staff - End of Year Two = 21,532
A 2% Downsizing would reduce this Halton - Peel Total Staff to 21,101
Total Halton - Peel Municipal, Hydro and School staff Downsized from 32,988 to 32,478
Year Three - Re-organization and Downsize of all Existing Halton - Peel Staff
1. Total Halton - Peel Municipal, Hydro and School staff = 32,478
A 2% Downsizing would reduce this Halton - Peel Total Staff to 31,829
Year Four - Bring in all Other Ontario Staff that could be Re-assigned to the PMGAD
1. Re-Organize, Streamline and Downsize
2. Begin discussions with the Federal Government
HALTON - PEEL IMPLEMENTATION STRATEGY
Stage 1 Planning and Initial Consolidation of Like Local & Regional Departments
Stage 2 Streamline - Re-examine what you do, why, where (Local) and how you do it
Stage 3 Consolidate with certain Special Purpose Bodies staff and Streamline
Stage 4 Re-organize after Sorting Out what Expertise you need - functions and areas
Stage 5 Downsizing - Attrition - Re-location
Stage 6 Centralization and Decentralization - To new PMGAD
Stage 7 Merge Some Federal services with the PMGAD
18
NEW HALTON PEEL PMGAD DI STRI CT & AREA MUNI CI PALI TI ES
STAGE THREE PEEL & HALTON MUNICIPAL, HYDRO & SCHOOL EMPLOYEES CONSOLIDATION
TOTAL 11 MPP + 1 CHAIRMAN + 8 MAYORS + 85 COUNCILLORS + 31,829 CIVIL SERVANTS
DISTRICT OF HAL T ON PEEL
CITY OF BURLINGTON
MAYOR +
16 LOCAL COUNCI LLORS
ASSETS 10
LIABILITIES EMPLOYEES
ADMINISTRATION
TOWN OF OAKVILLE
MAYOR +
I
12 LOCAL COUNCILLORS
ASSETS 10 I
LIABILITIES EMPLOYEES
ADMINISTRATION
.
CITY OF MISSISSAUGA
MAYOR +
1
TOWN OF CALEDON
MAYOR +
9 LOCAL COUNCILLORS
ASSETS 10
LIABILITIES EMPLOYEES
ADMINISTRATION
CHAIRMAN +
24 DISTRICT COUNCILLORS
ASSETS 31,759
LIABILITIES EMPLOYEES
ADMINISTRATION
CLERKS
LEGAL
PROPERTY
FINANCE
DISTRICT & LOCAL PLANNING
WATER SUPPLY
SANITARY & STORM SEWERS
DISTRICT & LOCAL ROADS
POLICE PROTECTION
SOLID WASTE LANDFILL
SOCIAL SERVICES
BUSINESS DEVELOPMENT
HEALTH
TAX COLLECTION
MUNICIPAL LICENSING
MUSEUM
HOME CARE - NURSING
HOUSING
PARKING
FIRE PROTECTION
PARKS AND RECREATION
BUILDING & FIRE CODE PERMITS
TRANSIT
ANIMAL CONTROL
TOWN OF MI LTON
MAYOR +
11 LOCAL COUNCILLORS
ASSETS 10
LIABILITIES EMPLOYEES
ADMINISTRATION
I
TOWN OF GEORGETOWN
MAYOR +
8 LOCAL COUNCILLORS
ASSETS 5
LIABILITIES EMPLOYEES
ADMINISTRATION
TOWN OF ACTON
MAYOR +
4 LOCAL COUNCI LLORS
A S S E T S 5
LIABILITIES EMPLOYEES
ADMINISTRATION
CITY OF BRAMPTON
MAYOR +
16 LOCAL COUNCI LLORS
ASSETS 10
LIABILITIES EMPLOYEES
ADMINISTRATION
4
NEW HALTON PEEL PM GAD DI STRI CT & AREA MUNI CI PALI TI ES
STAGE FOUR PEEL & HALTON MUNICIPAL, HYDRO, SCHOOL& PROVINCIAL EMPLOYEES CONSOLIDATION
TOTAL 11 MPP + 1 CHAIRMAN + 8 MAYORS + 85 COUNCILLORS + 32,172 CIVIL SERVANTS
STAGE FI VE PEEL & HALTON MUNI CI PAL, HYDRO, SCHOOL, PROVI NCI AL & FEDERAL EMPLOYEES CONSOLI DATI ON
TOTAL 11 MPP + 1 CHAI RMAN + 8 MAYORS + 85 CO UNCI LLORS + 32, 508 CI VI L SERVANT S
16 LOCAL COUNCILLORS
ASSETS 10
LIABILITIES EMPLOYEES
I
ADMINISTRATION
\
\
GTA APPROACH
Each of the PMGADs is a Partnership of Local Municipalities with the Province. The Three
PMGADs of Toronto - York, Halton - Peel, and Durham - Victoria will establish a GTA
Partnership with the Province. The GTA Partnership body will be administered by a GTA
Coordinating Committee consisting of three PMGAD Members from each District (regardless as to
population served) plus the Minister of Municipal Affairs and Housing. The GTACC will work
with the Province on the establishment of AN APPROPRIATE GTA PLAN which will be
approved by the Province as a separate Provincial Policy Statement. The three PMGADs in the
GTA will be charged with the responsibility of ensuring implementation of the GTA Plan once it has
been approved.
The GTA Plan will be prepared within an Overall Provincial Policy Statement for the entire
Province. The Ontario Policy Statement, the GTA Policy Statement, the Parkway Belt West Plan,
and the Niagara Escarpment Plan will be implemented by the Province. The MMA will be charged
with the responsibility of ensuring that the 17 PMGAD Official Plans conform to - or possibly do
not in conflict with the Provincial Policy Statements (Plans).
The GTCC will also establish which PMGAD services can be provided in an overall GTA structure,
e.g. Transit, in a fashion similar to that established by each PMGAD. Before an agreement is
entered into between all Municipalities and the Province, each PMGAD Board of Council should
debate and agree on what public services are to be provided by the PMGAD Civil Service.
Partnerships with Local Municipalities outside the GTA (e.g. Hamilton) may also be
possible/desirable. Each Local Municipality Council must decide on the level of service to be
provided in their particular Municipality with the cost of any enhanced level of service to be borne
by the local taxpayers.
THE CONSERVATION AUTHORITIES
Also attached as Map 3 is a proposed Consolidation of 38 Conservation Authorities into 17 Large
Conservation Authorities (CA). These 17 proposed CAS take into consideration not only watershed
boundaries but also the proposed PMGAD boundaries.
The Province is prepared to discuss the
further Re-arrangement of the PMGADs and the Conservation Authority watershed areas to reflect
a better matching of geographic areas with the local communities, their populations, live - work
patterns and areas of employment assessment.
The Conservation Authorities should be required to
report through the PMGAD and the Civil Servants working for the Conservation authorities could
be consolidated into an appropriate PMGAD.
The new Consolidated Conservation Authorities are as follows:
1.
2.
3.
4.
5.
6.
7.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Essex - Lower Thames Valley - St. Clair Region
Ausable/Bayfield - Upper Thames River - Kettle Creek - Catfish Creek
Maitland Valley - Saugeen Valley -Grey Sauble
Grand River - Long Point Region
Niagara Peninsula
Hamilton - Halton Region
Credit Valley
Nottawasaga Valley - Lake Simcoe
Metro Toronto and Region
Central Lake Ontario - Kawartha - Otonabee - Ganaraska Region
Prince Edward - Lower Trent - Crowe Valley - Moira River
Napanee - Mississippi Valley
Cataraqui - Rideau
South Nation River - Raisin Region
North Bay/Mattawa - Sault St. Marie- Nickel - Mattagami River
Lakehead
20
PROVINCE OF ONTARIO
ACTION PLAN FOR
,,
ALL OF THE
.. ..
.
ACTION PLAN FOR
RE - INVENTING
ALL OF THE GOVERNMENTS AND SPECIAL PURPOSE BODIES OF
NTARIO
INTRODUCTION
The following Proposed ACTION PLAN outlines a Proposed Strategy on how the Government of
Ontario can deal with the issue of Governance, Downsizing of the Public Service, and Budget
Reductions. The Action Plan is based on a Proposed Strategy for Re-inventing the Government and
Special Purpose Bodies of Ontario which is attached to this Action Plan.
The Purpose of the Action Plan is to outline how the Government intends to deal with the many
stakeholders involved in this important Process of a Change in Governance. Hopefully it will result
in a product we all want and will be proud of i.e.
1.
2.
3.
4.
5.
6.
7.
Less Government
Less Expensive Government
More
More
More
Efficient Government
Effective Government
Accountable
Customer Focused
Government
Government
Government That We All Can Understand
21
AN ACTION PLAN ON GOVERNANCE (DOWNSIZING & THE BUDGET)
1.
2.
3.
4.
5.
6.
7.
8.
9.
The following (proposed) Action Plan and attached Proposed Strategy on Governa
be agreed to by the new Cabinet. It is recommended that this matter be one of the t
government priorities as it impacts on the Governments Common Sense Revolu
will also have a substantial impact on the Golden Commission- and should be u
reference document which would enable the GTA to be established within an
Provincial perspective.
The new Cabinet Discusses and Agrees on the (an) Action Plan (How Government w
the issue of Governance, Downsizing, the Budget and the Golden Commission).
The Premier and Cabinet decides on Who is to Champion this Project.
The Premier and Appropriate Minister Confers with the Golden Commission regard
present Terms of Reference and asks whether the Commission would be interested a
to also take on the job of spearheading the Governments new Proposed Governanc
for all of Ontario.
The Premier and Assigned Minister Determine if the Golden Commission and its
Members would be the appropriate body/group to handle the job.
IF the answer to 5 above is yes, the Golden Commissions TOR are revised and
members from outside the GTA, are added to the Commission. The Commission w
re-organized into three distinct teams headed by Golden i.e. the GTA; the Southwes
Northeast.
If not a new Commission of 6 Members plus a new Chair is established with new T
a mandate to review the Governance issues outside the GTA.
The Premier Announces the Governments Action Plan on Governance and the at
PROPOSED STRATEGY FOR
RE - INVENTING
ALL THE GOVERNMENTS AND SPECIAL PURPOSE BODIES OF
ONTARIO
Premier introduces the Minister and Commission Members responsible to Imple
Action Plan, and requests that written comments on the Proposed
the Commission within 100 days from the date of announcement.
Strategy be submitted to
22
10. Goldens three teams will hear submissions both oral and written across Ontario.
11 The Commission will analyze the submissions and submit its report to Cabinet within 180
days from the date of announcement.
PUBLIC CONSULTATION OF THE PROPOSED STRATEGY BY GOLDEN
1. Golden establishes the Commissions Organizational Work Plan (establishes 3 sub-
Commission hearing groups i.e. the GTA, the South West, and the North East) and
establishes the framework and schedule to hear submissions within the Cabinet established
time frames.
2. The 3 Golden Commissions hear the delegations, receive their submissions, and analyze the
Sector comments.
3. The 3 Sectors Meet and discuss and analyze the submissions and comments.
4. The Golden Commission prepares its Consolidated and Sectoral Report and
Recommendations.
5. The Golden Commission Publishes its Report and Recommendations and Submits its Report
to Cabinet.
CABINET CONSIDERATION
1. Cabinet allows 45 days for additional Submissions to Cabinet during which time Cabinet
Analyses and Discusses the Golden Report.
2. Cabinet Considers the Golden Report and all new submissions to Cabinet.
3. Cabinet decides on the Governments Strategy on Governance.
4. The Premier and Minister announce the Governments Decision.
5. The Minister is Directed to begin Implementation of the Plan within the established time
frames.
23
PLAN IMPLEMENTATION
Implementation will happen in Stages over the next 4 Years and will run simultaneously at both the
Provincial and Municipal levels.
The Existing Regions and Counties will be used as the interim
base for Consolidation. The Goal is achieve most of the Downsizing and Re-organization in time
for the next Provincial election which should be no
Implementation Stages by Year are as follows:
YEAR ONE - Consolidate, Re-organize & Streamline
sooner than the spring of 1999. The
Existing Staff & Organizations:
Any Necessary Enabling Legislation is drafted;
Provincial Consolidation, Streamlining, and Downsizing Begins; and
Municipal Consolidation, Streamlining, and Downsizing Begins.
YEAR TWO - Create new PMGAD & Begin the Transfer of Municipal & Provincial staff:
Transfer Assets to Locals;
Transfer Region and County Liabilities to PMGAD; and
Prepare for Implementation of Board of Council after 1997 Municipal Election.
YEAR THREE - Streamline & Re-Organize - Begin Downsize:
Transfer Special Purpose Staff; and
Create PMGAD - Policy Advisory Committees;
YEAR FOUR - Establish Final Organizational Structure & Make Final Downsize
Fine tune; and
Begin Discussions on Bringing in the Federal Government.
24
CONCLUSION
Although some students of governance might argue that much of what is presented in this Proposed
Strategy is not new (some aspects have been published in numerous public forums over the last 50
years) most would agree that Re-inventing Ontario reconciles the long standing debate between
those who argue for the Centralization of Government with those who argue for De-centralization.
It is important to remember that arguments as to which Local Municipalities should be partnered in
which PMGAD or which Ministries should be consolidated is not as important as is the job of
actually restructuring and downsizing our Civil Service. This is because it is through the
rationalization of the Civil Service, (followed by the elimination of many unnecessary government
activities), that we will achieve savings of Billions of taxpayer dollars.
A good example of this debate is found in Halton Region. A strong case can be made that the City
of Burlington should be partnered with the Hamilton PMGAD and that the Town of Acton
should be partnered in the Waterloo - Wellington PMGAD. It also can be argued that the Ministries
of the Attorney General and the Solicitor General should be grouped with the Social Ministries.
What is needed most at both the Municipal and Provincial level is not a final solution but rather a
common focus point around which consolidation and downsizing can begin. Once the 5 Super
Ministries and the 17 PMGADs have been created and once the Civil Service has been
Rationalized within the new structure, it will then be possible to transfer Civil Service staff from one
Super Ministry or PMGAD to another.
Much more work on Downsizing and rationalization can be accomplished by the Political arm of
government once the Civil Service arm has been consolidated, streamlined, and downsized. The
secondary task of Re-inventing all of our Local Municipalities is an ongoing affair (best left to
politicians) that is the natural consequence of our local communities evolution and growth. Re-
engineering, Re-inventing, and Changing peoples Perceptions about their governments will not
happen over night, particularly for those of us who have been around for a while. Nevertheless we
must not lose sight of our goal to reduce the overall cost of our governments, to increase their
efficiency, improve their effectiveness and to provide a much better level of customer service. This
task can, and must be, accomplished because if we fail it will be our children who will suffer,
consequently it is our obligation to provide the tools necessary to address the upcoming challenges.
Despite its advantages, Re-inventing Ontario does not claim to have all the answers required to
Fix all of our Broke(n) Governments and their Special Purpose Bodies. It does provide the one
key - essential ingredient currently missing in our governance debate - a Practical Framework for
the Re-organization of the entire Province. Without this type of framework, it will be extremely
difficult, if not impossible, for all Ontario stakeholders to work together to solve our many problems.
I would like to acknowledge the contributions of the hundreds of authors, scholars and everyday
people (too numerous to mention here) who have inspired the contents of this Proposed Strategy.
Robert Murray White M. C.I. P. R.P. P.
25
OUR NEW RE-INVENTED
ONTARIO
I
. ! . . . . , * :
.-.
APPENDIX - REFERENCE MATERIALS
KEY REFERENCE MATERIAL
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11
12.
13.
14.
to
RE-INVENTING
The Peel-Halton Local Government Review
O N T A R I O
(The Plunkett Report), September 1966,
A Blueprint for Local Government Re-organization Association of Ontario Counties
- September 14, 1967.
Community Planning and Local Government by Ralph Krueger, 1968.
Report, November 1969.
Report of the Commission on the
Guidelines for Action - A report
Local Government Review. The Steele Commission
Reform of Property Taxation in Ontario, March 1970.
by the 1971 Special Study Committee of ACRO, the
Association of Counties and Regions of Ontario -April 6, 1971.
The Steele Commission Report, 1971
Decentralization of Government Administration Management Services Division -
Treasury Board, December 1, 1971.
Proposals for Local Government Reform in the Area West of Metropolitan Toronto -
T. E. I. G. A., January 1973.
A Position Paper on Public Finance - The Honorable John White, Treasurer of Ontario
and Minister of Economics and Intergovernmental Affairs. OCT. 1973
County Restructuring Studies Program Guidelines Ministry of Treasury, Economics and
Intergovernmental Affairs - February 1974.
Developments in the Management of Local Government - T. E. I.G.A. - Dec. 1995
Regional Government in Perspective: A Financial Review T. E. I. G. A., May 1976.
Discussion Paper No. 71: The Demand and Supply of Government: What We Want
and What We Get - by Scott Gordon, February 1977.
15.
16.
17.
18.
19.
21.
22.
23.
24.
25.
26.
27.
28.
Report of The Commission on the Reform of Property Taxation in Ontario - March 1977
The Region of Halton - A Partner in Local Government - R.B. Morrow - Sept. 1977
Report of the Bill 151 Committee 1978- The Regional Municipality of Halton Act. *
Local Government Finance in Ontario - MMA, November 1983.
A New Distribution of Responsibilities - Ian A. Stewart, August 30, 1984.
The Little Brother Approach - Pierre A.H. Frauche, August 31, 1984.
Regulations and the Orwellian State - Tony Campbell, August 30, 1984.
Commercialization of Public Services: A Positive Tool to Promote Wealth - A.R.
Bailey. August 1984
Boards That Make a Difference - John Carver. April 1990
Ottawa-Carleton Regional Review 1990
The Hopcroft Report - August 1991.
Haldimand-Norfolk Regional Review 1991
Re-inventing Government - David Osborne and Ted Gaebler. - February 1993
VARIOUS MAGAZINE & NEWSPAPER ARTICLES REGARDING GOVERNANCE ARE
INCLUDED WITHIN THE ATTACHED THREE SEPARATE BINDERS AND ARE
SORTED INTO BY SEVERAL RELEVANT CATEGORIES.
JOHN CARVER
BOARDS THAT MAKE A DIFFERENCE
(Governance is about Values, Strategic Leadership, Dreaming - creating worlds)
The Board is an owner is a trustee acting on behalf of its shareholders
Principle 1
Principle 2
it owns the business it is not there to help staff
it is not a volunteer
The board owns the organization (as trustee) for some ownership
to whom the board owes primary responsibility
legal, moral, total accountability is with the Board
all organization action
the main difference the Board is trying to make is regarding Ends
the Board should decide:
What good
Which people
What cost
Who is better off
Always Prescribe the ends but stay out of the means
Too much emphasis on the means can result in missing
Council sets the ends, .. the boundaries..
The means of the Board the Board owns
Policy
Instruction to CEO - 1 Ends
2 Means
Boards own Means - 1 Governance Process
2 Board - Staff Relationship (monitoring)
Mission - Big ends question vs
Small ends - Box within boxes
Board starts with the biggest box
the ends
Principle 3
Principle 4
Principle 5
Principle 6
Principle 7
Principle 8
Monitoring
Decide the largest issue in each category before smaller issues in
any category
Board establishes the context of decisions
Come into smaller issues at will but only in one issue at a time
The Board must ask Are we willing to let staff make any
reasonable interpretation of the Boards stated policy.
Board must establish the limits of interpretation
Board and CEO must ensure they dont cross the line
Board is responsible for governing
Board must know what characteristics it needs in the people on the
Board
Board must be responsible for its own development
Board must let staff take on its role - it must be responsible - it
must realize it is making the decision
Members of Board must realize which hat they are wearing -
decision hat or helper hat (doer) - these must be kept separate
Chair role is to ensure that the Board gets the job done
Make sure you do not confuse customers with shareholders
Board must be disciplined - know its role and acts accordingly
Renegade Board members must be controlled by the Board
Board as a whole must act
Board is obligated to protect staff from individual Board members
Boards must stay out of the details KISS Principle - Broad Issues
Higher level - big issues - not the little
Few succinct policies with bounds
Board must understand the diversity of values/ideas
The Board has only one voice or not at all!
Board Committees are to help the Board do its job not the staff
Board Committees give options and implications to the whole
Board
Types of information necessary for the Board to make good
decisions
Monitoring of staff - did we get the job done
Most Boards get too much info
Incidental info is not info, it crowds out - hides important info
Principle 9
Only monitor against criteria previously set
Always observe the sequence
1. Expectation/Criterion
2. Assessment/Judgement
Monitoring methods -
1. Executive report
Problem usually is Board has no
criteria
every quarter & answers the Board
criterion (is it met?)
2. External report - 3rd party
3. Direct inspection - by the Board a crude measure of the
right thing than a right measure of the wrong thing
Board Job Products
1. Linkage with Ownership
2. Written Governing Policies
3. Assurance of Executive Performance
Board
Board
Principle 10 - Board
7 or 8
Board
Principle 11
Governance is about Values,
Job Description is not the perpetual Agenda
must evaluate its own performance on a periodic basis
speaks through the CEO
pages of staff limitations
should not do long range planning it does do visioning
Board should concentrate on ends and linking with ownership
Partial Implementation can be a problem
Strategic Leadership, Dreaming - creating worlds
REINVENTING GOVERNMENT - DAVID OSBORNE AND TED GAEBLER
We must:
1. Change the bureaucratic
inefficient and ineffective
How do we do this:
government structures built up over the years - it is fat,
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Begin steering vs rowing - (end driven not means driven)
Community owned government - empowering rather than serving
good citizens (not clients) make good
communities
Competitive Government - Injecting competition service delivery
Mission Driven
around mission)
Results Oriented
obligations)
Governments - Transforming rule driven organizations (reorganize
Government Funding Outputs not inputs (reward success and mutual
Customer Driven Government - Adapt to customer needs
Enterprising Government - earning rather than spending
Anticipatory Government - Prevention rather than cure - foresight
Decentralize Government - Reward Participation and teamwork - top managers
Market Oriented Government - create incentives to move people as to where the
community wants to go
Strategic Planning
(Strategy - Greek word [army & leader])
SP - is a disciplined effort to produce fundamental decisions and actions that shape and guide
what an organization is, what it does and why it doesnt.
Why do it - It allows decision makers within an organization to see how the organization fits,
and does not fit, into the grand scheme of things. By so doing it enables decision
makers to design strategies on how it should act.
Comprehensive Planning - Community/Area based Plan taking into consideration
1. mandate - responsibilities
2. existing conditions (issues) and trends
3. possible alternative futures
4. goals and objectives of Halton residents
5. plan, policies
Strategic Planning is
Harvard -
and actions necessary to achieve the end vision required
Organization based
best fit between the organization and environment?
Stakeholder - any group or individual who is affected by or has an interest in the corporation
SP - is a tool to
8 Step Process
1. Agree on
help us make good decisions
Process
2. Identify our mandates - responsibilities, obligations
3. Clarify our mission
l
and values
2
4. Assess External Environment - SWOT
5. Assess Internal Environment - SWOT
6. Identify Strategic Issues (key to our existence and success)
7. Devise Good Strategies
8. Establish and Communicate/Indoctrinate the Vision!
What is Haltons Mission? (Inspiring)
To provide what?
Questions that need to be answered
1. Who are we as an organization (or community)?
2. What are the basic social or political needs we exist to fill, or the problem we are to
solve?
3. What do we do regarding 2?
4. How should we respond to our key stakeholders?
5. What is our philosophy and core values?
6. What makes us distinctive or unique?
13.
I
/
A further advantage of the common regional centres and the adjacent
location of a number of government offices would be that senior
officers in the various departments would be able to form regional
committees to discuss problems that cut across departmental boundaries;
While this is already happening in a number of areas, it is recommended
that such an approach be given formal recognition and that the senior
departmental officers in each region be members of the regional
15.
ccmmittee. These committees would provide policy input to depart-
mental head offices and would serve to solve many problems at the
local level. These committees would have an administrative chair-
man, but in no sense would one department be superior to another,
for a hierarchical committee structure would not be valid for
decision making purposes. Such committees would also serve as a
means of communication between the government and local citizens.
This pattern which has been proposed is somewhat similar to that
which has been developed in recent years in the Federal Government
of the United States. The U.S. experience is outlined in Appendix
c.
16.
it performs functions or provides services to
clientele in a particular region of the Province
other than Toronto;
it is engaged in operations to carry out well
defined policies and programs which require only
limited day-to-day headquarters supervision;
it is a regional district or other field office
(it is worthy of note that a number of depart-
ments have field forces serving the Province who
are located in Toronto) ;
it provides large scale supporting services of a
relatively repetitive or routine nature, such as
records maintenance, procurement and inventory
control, training includinq the operation of
Schools
r
administration of real property and
related engineering services, manufacturing,
financial accounting and disbursinq activities,
or statistics and data collection and related
fact gathering and processing operations;
it is a review function or administrative service
activity which could be performed equally well by
field offices exercising general supervision over
operating offices;
it operates in a relatively self-sufficient manner
which does not require it to have close intra-
departmental or inter-departmental working relation-
ships;
18.
1. )
2. )
3.)
4.)
5. )
19.
Legislature, or non-governmental agencies or
individuals located in the Toronto area;
6.) the cost of dispersal including replacement of
specialized physical facilities (loss of personnel
with specialized skills, special training,
relocation, travel, communications and disruption
of current operations) would outweigh benefits to
be gained;
7.) workload would not justify development of additional
specialized staff solely in order to achieve dis-
persal or regionalization.
20.
The costs of re location, both in real and implicit term must be
determine d. The two following lists are presented to indicate
which departments and agencies might be included i n a study list.
.-
Correctional Services
Education
Environment
OWRC
21.
22.
Revenue (entire department except the Toronto
regional office)
Social and Family Services (elements of Family
Benefits Branch, Child Welfare Division , etc. )
Transportation and Communications (central
regional offices and district six offices)
Tourism and Information (entire head office)
This list is only meant to suggest areas for further studies.
There are undoubtedly reasons why some of these departments and
agencies or segments thereof, could not be dispersed or extensively
reqionalized. Neverthe less it is thought that some 8,000 employees
now located in Toronto could be relocated elsewhere.
23.
1.
2 .
3 .
4 .
5 .
6 .
7 .
8 .
9 .
1 0 .
11.
Authority be
of the civil
increasingly decentralized to the lower levels
service.
Strategic policy formulation must remain the prerogative of
Ministers assisted by their senior officers.
Opportunities for dispersal be studied in depth in selected
departments and agencies.
Organization structures of operating departments be modified
to recognize the primacy of regions in the delivery of
government services.
Operating departments be instructed to deliver services on a
regional basis.
All operating departments have common regions with co-
terminous boundaries.
Only one administrative centre be established in each reqion.
Inter-departmental regional office
which are covenient for t h e public
An inter-departmental committee on
buildings be established
and highly visible.
decentralization reporting
to Treasury Board be established to recommend policy.
TWO or three departments be selected for in-depth study to
develop methodology for general application.
Management Services be responsible for the development work
and the co-ordination of studies in co-operation with workinq
groups from the selected departments.
24.
12. Managment Services reports and recommendations be made to
the inter-departmental committee and to Treasury Board.
2 5 .
Reasons for Regional Government
B
B
B
B
B
B
B
Drainage areas - servicing requiring agreements between municipalities
uniform building code - better ensure housing in accordance with proper planning p.
shared assessment means housing in appropriate locations
need integrated transportation and traffic control
industrialization and assessment linkage (shared)
wider approach to planning and land use - is the Commissions view the single most
impt. contribution
planning should be directors possibility of the Council (Region)
Association of Ontario Counties - A Blueprint for Local Government Reorganization 1967
(Regional Govt Committee) 37 Counties
This association which includes both the elected or appointed county government
officials of this province accepts the fact that government was created to serve the
people. Our concern is not with the preservation of a term of government merely
because it is historic, nor with the maintenance of the status quo because its familiar
and comfortable. Rather, we are concerned that the best possible job is done by the most
appropriate level of government in the most economic fashion.
PUBLIC WORKSHOP PRESENTATION ON THE
DRAFT NEW HALTON REGION OFFICIAL PLAN
MAY 8TH 1993
PAST, PRESENT, & EMERGING PROVINCIAL POLICIES
R. M. White May 71993
THE HISTORY OF HALTON
Canada was first settled by the aboriginal people who lived off, and fought over, the land.
Then came the French and English . . . who also fought,... and in 1763... (230 years ago)...
established Canada, a new Colony subject to British Common Law.
From 1788 to 1853 most of Halton was governed by Crown Appointed Officials. These Crown
Appointed Officials were of course good loyal subjects who could be counted on to enforce
Crown Policy throughout Halton.
In 1791, Upper and Lower Canada,
were separated and various forms of representative
government were established... at the Provincial level.
In 1805 and 1819 the Crown bought all of Halton from the Massasauga Indians. The land was
surveyed and then given or sold to United Empire Loyalists and Europeans.
The people in Halton of course flourished and multiplied.
Various Villages and Settlements
began to spring up resulting in increasing demands for local self government and to some degree
the Rebellion of 1837.
In 1849 Ontario passed the (Baldwin) Municipal Act thereby enabling the incorporation of
numerous cities, towns, villages, townships, and counties and the establishment of Local
representative government throughout Halton.
In 1853 HALTON COUNTY was created by the Province as a separate entity.
In 1867 Britain enacted the British North America Act thereby creating the Dominion of Canada
and the Provinces . . . The effect of this legislation on Halton was two fold. First, the
PROVINCES GOT RESPONSIBILITY AND CONTROL OVER THE LAND and
RESOURCES. Second, Canadian Municipalities exist solely at the pleasure of the Province.
A fact that is still true today.
CURRENT
In 1946 the Province enacted THE PLANNING ACT. This legislation is much the same as the
Planning Act we have today. As such it enables... not directs . . . . Municipalities,.. and not the
Province . . . to prepare and adopt Official Plans controlling development within their respective
Planning Areas.
At first glance the Planning Act appears to give municipalities almost unlimited Planning
authority. However the Province did not give Municipalities a free reign over their territories.
Official Plans can only become statutory on ApprovaI by the Province. Furthermore the
legislation ensures that the Province has the right to require municipalities to have regard for
matters of Provincial interest. By so doing the Province was ensuring that Provincial Policies
and Provincial Interests are being secured through Local Official Plans.
In 1955 the Province approved the Town of Burlington Official Plan. Apparently this was the
first Provincially approved Official Plan outside of Metro Toronto.
Official Plans were also approved by the Province for the remaining areas of Halton as follows:
Trafalgar Township, and Towns of Georgetown, & Milton -1957
Town of Acton -1958
Town of Oakville -1961
Nassagewaya Township -1967
Esquesing Township -1973
In the late 1960s and early 70s there was a flurry of Provincial Planning Activity. At that time
it seemed that the Province finally woke up to the fact that as there was no Provincial Plan it
was extremely difficult for the Province to tell Local Municipalities exactly what provincial
policies should be included in their Official Plans.
The Provincial need to coordinate and control local planning resulted in such major Provincial
Planning efforts as:
THE TCR PLAN -1970 which set out a framework for decentralizing growth east and
out from Toronto within three Planning Zones;
THE COLUC PLAN -1974 which set out the two levels or tiers of urban development
south of the 401 in Halton including the proposed new urban areas of North Burlington
and North Oakville now referred to as Milton east and Milton west;
THE ONTARIO PLANNING AND DEVELOPMENT ACT which,.. for the first
time,.. enabled the Province to essentially do Local Planning on a Provincial scale. The
end result of this particular legislation was the approval of the Parkway Belt West Plan
in 1978;
THE NEPDA - which enabled the Province to Prepare the NEP which was approved in
1985; and finally.
THE ESTABLISHMENT OF REGIONAL GOVERNMENTS which, at that time, was
viewed by the Province as the best level of government to give effect to Provincial
Planning policies.
In 1974 the Province created Halton Region and the four Area Municipalities. Under the
Regional Municipality of Halton Act the Region was directed,... not enabled... directed... to
prepare an Official Plan. Unfortunately the Halton Act did not define what was Regional
Planning, That was left up to the Region to decide, in consultation with the Province and Area
Municipalities.
This same Act also requires all Area Municipality Official Plans and Zoning Bylaws to conform
to the Regional Official Plan. This ensures that Provincial Policy interests are also secured in
area Municipality Official Plans.
The Regions first and current Official Plan was approved by the Province in 1980. It
recognizes the Toronto Centred Region Plan and Parkway Belt West Plan, but not the
communities of North Burlington and North Oakville, and it includes many Provincial Policy
interests of that day such as the Foodland Guidelines.
Since Provincial approval of the Halton Region Official Plan, the Province has also approved
the following Local Municipality Official Plans:
The Towns of Oakville and Milton in 1984 and
The Town of Halton Hills in 1985
In 1988 the Province, through Ministers Order, brought the Regional Plan in conformity with
the NEP.
The 1980s was a decade of schizophrenia for the province.
In 1983 the Province made major changes to the Planning Act. The new 1983 Act was prepared
at a time when the Province was retreating from those Provincial Planning initiatives set in
motion in the 60s and 70s. The TCR Plan was abandoned. Large parcels of land previously
bought by the Province and set aside for future development were sold. Even the Parkway Belt
West Plan languished.
The Provincial attitude at that time was low key and one of general non interference. The
Province decided, with the encouragement from the municipalities, that it should not intrude into
local planning and that good planning was best left to be decided by each Municipality.
On the Other hand, the 1983 Planning Act also gave new and special recognition to Provincial
Planning Policy previously not included in the old act. Section 2 of the 1983 Act describes the
Provincial interest as including, .... among other matters:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
the natural environment and resources and agricultural resource base;
significant natural, architectural, historic or archaeological features;
energy supply and conservation;
major communication, servicing and transportation facilities;
equitable distribution of educational, health and other social facilities;
coordination of planning activities;
resolution of planning conflicts;
health and safety;
provincial and municipal economic and financial well being; and
the provision of a range of housing types;
This extremely broad and all encompassing list leaves the Provincial policy door wide open for
the Province.
Furthermore Section 3 of the 1983 Planning Act provides for the special recognition of Specific
Provincial Policy Statements, adopted by Cabinet, which all municipalities must have regard for.
To date, 4 Policy Statements have been approved by Cabinet:
1. Mineral Aggregate Resources -1986
2. Flood Plain Planning -1988
3. Land Use Planning for Housing -1989 and
4. Wetlands -1992
There is a fifth PROPOSED PROVINCIAL POLICY STATEMENT - FOODLAND
PRESERVATION - which was drafted in 1986 but is still not yet approved.
EMERGING PROVINCIAL POLICIES
In addition to these Provincial Policy statements, various provincial Ministries and agencies have
adopted numerous Plans, policies, programs and guidelines which municipalities are constantly
being encouraged to adhere to. A good example is the Ministry of Natural Resources
Cambridge District Strategy of 1983. A more recent example is the 1992 Ministry of Municipal
Affairs new Policy guideline, called Growth and Settlement. This Guideline, oddly enough, was
approved by Cabinet and is to apply to all land use decisions that are covered by the Planning
Act including the review of official plans...
At last count the Region has reviewed, or is still reviewing over 30 new proposed Provincial
policy initiatives.
FUTURE PROVINCIAL POLICY STATEMENTS OR GUIDELINES could include:
1. THE LAKE ONTARIO WATERFRONT
2. GREENLANDS AND WATERSHED PLANNING
3. CUMULATIVE IMPACT AND ECOSYSTEM PLANNING
4. HEALTHY COMMUNITIES PLANNING
5. and last but not least is THE GREATER TORONTO AREA POLICY
STATEMENT.
Trying to make sense of all this Provincial PLANNING Policy and how it relates to Regional
and Local Planning policies is not an easy task. It is no wonder that the Province has once again
tried to get everyone re-focused by establishing the Commission on Planning and Development
Reform in Ontario.
Judging by the Sewell Commissions just released Draft Report requiring Compliance with
Provincial Policy Statements and the mandatory inclusion of items that must be addressed within
Official plans, it appears that the new resurgence of Provincial P1anning will not be over for
quite some time. Given the History of Provincial development and Planning in Ontario, and the
problems we are encountering, I personally do not find this development surprising.
At the beginning of my presentation I asked the question what is Provincial Planning? My
answer is that there is no simple or final answer. Provincial Policies can cover whatever the
Province wants, and depending on the philosophy, concerns, and mood of the Province at the
time, are constantly changing. Given recent events at the Province I believe that Bob Rae, with
his Social Contract and Budget cuts. has proven quite emphatically to all concerned that the real
power and control is at the Province.
RMW
1 9 9 1
CHAPTER THREE
PROPOSED REALIGNMENT OF RESPONSIBILITIES BASED ON PRINCIPLES
3.1 Background
The principles developed in Chapter Two suggest that, to the
extent that it is workable,
local government should have
clearly assigned functions for which it is accountable, as
well as access to sufficient revenues to be able to carry
out those functions. The Province should endeavour to
establish a legislative framework for municipalities which
is consistent and promotes accountability in decision
making. Although the Province must retain its ability to
address its priorities, local autonomy is highly desirable.
Based on these principles, the Committee examined a list of
functions with some current degree of municipal involvement.
The Committee
s
consensus on a possible new division of
responsibilities are presented in chart 3-1 and should serve
as a blueprint for further analysis specific to individual
services. For definitions of the function categories used,
see Appendix 1.
The Committee categorized each dimension of service
responsibility in the following manner: municipal,
predominantly municipal, shared,
predominantly provincial,
or provincial. Policy/service management determines the
level of government best suited to make policy and service
management decisions regarding the level and nature of the
service and the manner in which it is delivered.
Service
delivery determines the level of government best suited to
actually deliver the service and entails very little scope
for management decisions. Service funding indicates the
extent to which each level of government should finance the
service related to the function.
- 33
Chart 3- 1
THE DIVIS1ON OF RESPONSIBILITIES BETUEEN MUNICIPAL AND PROVINCIAL LEVELS OF GOVERNMENT Current Perc ent a g e of Exp end i t ul .
0 . 5 1.5 0 . 7
0 . 2 1.1 0 . 3
12.0 1. 0 11. 7
55. 5 0 . 0 4 9 . 8
0 . 7 1 . 8 0 . 8
34. 3 44. 0 3 9 . 9
6 . 4
67. 3
22. 4
0 . 7
53. 0
0 . 2
74.3
6-$.9
0 . 0
1. 9
4 . 4
4 . 8
2 . 4
20. 4
1 . 0
3 4 -
Chart 3-1 b
KEY FOR COMMITTEE RESPONSES
Decision Criteria
c ommittee members were asked to evaluate each of the
functions according to the questions listed below:
1)
2)
3)
4)
5)
6)
Is the programs objective income redistributive in
nat ur e? ( Y=Yes or N=No)
Does the provision of the service produce spillovers?
(l=few or none, 2=some spillovers, or 3=significant
spillovers)
Which level of government can produce the service most
economically? (M=municipal, S=shared or p=provincial)
Which level of government can deliver the service most
effectively? (M=municipal,
S=shared or P=Provincial)
Is there a need for uniform standards? (I=few or no
standards required, 2=some standards required, or
3=many standards required)
Service provision by which level of government will
foster accountability? (M=municipal S=shared or
P=Provincial)
Recommended Responsibility
Based on their rating of each function using the above
criteria, Committee members were asked to assign
responsibility for policy/service management, delivery and
funding:
Policy/service management determines the level of
government best suited to make policy and service
management decisions.
These are decisions regarding
the level and nature of the service and the manner in
which it is delivered.
Service delivery determines the level of government
best suited to actually deliver the function and
entails very little scope for management decisions.
Service funding indicates to what extent each level of
government should be responsible for financing the
function.
For each dimension of responsibility,
functions were rated
as being most properly: M Municipal; pM - predominantly
M u n i c i p a l ; S - Sh a r e d ; PP -
Predominantly Provincial; or
P Provincial.
35
3 . 2 Municipal Responsibilities
The Committee determined that the provision of the following
functions should be either solely or predominantly municipal
responsibilities in terms of policy/service management and
financing: general government, fire, local roadways, local
winter control, parking, street lighting, local storm sewer
systems, sanitary sewer-collection, water works-
distribution, garbage collection, public health inspections,
cemeteries, parks and recreation, libraries, planning and
zoning, economic development, agriculture and reforestation,
and community services. These are functions where the group
that benefits can be identified as being predominantly, if
not totally, local. In such cases, allocating these
services at the municipal level promotes efficiency because
the services provided by each municipality will more closely
correspond to the preferences of local residents than would
be the case if provided province-wide.
For these services,
municipalities would act as local providers of services.
The Committee also identified several functions for which
policy/service management should be either solely or
predominantly a municipal responsibility but for which
financing should be a shared responsibility. These
functions are transit, waterworks-plant and cultural
activities.
3.3 Shared Responsibilities
As a co-provider of a service, a municipalitys scope for
local decisions regarding management and delivery may vary
significantly depending on the service. Similarly,
Provincial involvement may also vary significantly.
36 -
The following services are those that the Committee believes
should be a shared responsibility with the municipal sector
acting as a co-provider of services with the Province:
police; conservation authorities; collector, county,
arterial and regional roadways; collector, county, arterial
and regional winter control; transit for the disabled;
cultural activities; sanitary sewerplant; collector,
county, arterial and regional storm sewer system; and
garbage disposal. In the case of protective inspection and
control, the Committee felt that policy/service management
should be a shared responsibility but funding should be a
municipal responsibility.
3.4 Provincial Responsibilities
S e r v i c e s w i t h s i g n i f i c a n t s p i l l o v e r s a n d / o r a s t r o n g n e e d
f o r p r o v i n c i a l s t a n d a r d s a r e mo s t - a p p r o p r i a t e l y p r o v i n c i a l
r e s p o n s i b i l i t i e s . Un i f o r m a n d p r o v i n c e - wi d e a c c e s s i s
g e n e r a l l y a n i mp o r t a n t f e a t u r e o f t h e s e t y p e s o f s e r v i c e s
a n d a s a r e s u l t t h e y a r e u s u a l l y c h a r a c t e r i z e d b y t i g h t
l e g i s l a t i v e o r r e g u l a t o r y c o n t r o l .
Co n s e q u e n t l y , t h e
mu n i c i p a l s e c t o r c a n e x e r c i s e l i t t l e a u t h o r i t y o r c o n t r o l
a n d s h o u l d b e r e l i e v e d o f f i n a n c i a l r e s p o n s i b i l i t y f o r t h e s e
s e r v i c e s . I d e a l l y , t h e P r o v i n c e wo u l d a c t a s t h e p o l i c y
ma k e r / s e r v i c e ma n a g e r , c h o o s i n g t h e d e l i v e r y me t h o d s a n d
a l l o c a t i n g i t s a v a i l a b l e r e s o u r c e s a mo n g p r o g r a ms a n d
d e l i v e r y a g e n t s . Th e mu n i c i p a l s e c t o r wo u l d e i t h e r h a v e n o
r o l e o r b e r e s t r i c t e d t o t h a t o f l o c a l s e r v i c e d e l i v e r y
a g e n t .
Similarly, services that have income redistribution or
stabilization as their major purpose should be a provincial
and/or national responsibility because of the economies of
37
scale involved and the ability to fund such programs from
income-based revenue sources such as corporate and personal
income taxes. These types of service cannot be performed
adequately at the local level as the ability to finance them
varies greatly from municipality to municipality. For
instance, if a plant closes in a single-industry town,
municipal government is least able to afford general welfare
assistance costs at the time they are needed most.
Alternatively, since the provinces economy is the aggregate
of a number of regional economies,
it has greater scope for
income redistribution than any individual municipality.
The Committee has determined that the Province should be
predominantly or solely responsible for policy/service
management and financing in the following services: air
transportation, public health services, hospitals, ambulance
services, general welfare assistance, childrens welfare,
assistance to the aged (homes), child care, assisted
housing, tile drainage and shoreline assistance.
Perhaps the most significant changes indicated by the
application of the Committees principles emerge in the area
of health and social services,
including general welfare
assistance. The Committee argues that the provision of
these services and their funding is most appropriately the
exclusive responsibility of
are significant benefits to
administration.
the Province, except where there
be gained from local
In the case of health services, the Committee notes the
potential for spillover effects in this service. The
importance of establishing preventative health measures with
a view toward improving the general wellbeing of the
population is not logically a local responsibility as there
38
is a social value to having a healthy population.
Therefore, in most instances, the need for uniform
provincial standards was deemed to outweigh the benefits of
local discretion in the provision of these services.
I n t h e c a s e
assistance,
of social services, including general welfare
the Committees position is that these services
are i mpor t a nt i nc ome r e di s t r i but i on me c ha ni s ms a nd t he r e f or e
s h o u l d b e a p r o v i n c i a l r e s p o n s i b i l i t y .
T h e p r o v i s i o n o f s e r v i c e s t o t h e e l d e r l y p e r mi t t h e e l d e r l y
t o l i v e a s i n d e p e n d e n t l y a s p o s s i b l e i n c o mmu n i t i e s
t h r o u g h o u t On t a r i o . I t i s a f u n c t i o n t h a t mu n i c i p a l i t i e s
h a v e b e e n i n v o l v e d i n f o r a s i g n i f i c a n t p e r i o d o f t i me .
Mu n i c i p a l i t i e s h a v e a l s o h a d a ma n d a t o r y r e s p o n s i b i l i t y t o
a d mi n i s t e r h o me s f o r t h e a g e d .
I n n o r t h e r n On t a r i o t h e r e
are di st ri ct boards t o admi ni st er homes for the aged.
Discretionary involvement exists in such areas as home-
makers and nursing services, elderly persons' centres, and
home support services.
However, given the redistributive nature of elderly
assistance and the need for uniform standards, the Committee
decided that the responsibility for homes for the aged and
non-community based services for the elderly should be
predominantly provincial, although it concluded that these
services should be delivered locally. There are significant
benefits to be gained in local administration, particularly
in homes for the aged. In addition, it was recognized that
homes for the aged may be effectively delivered by a variety
of non-government organizations.
The Committee
odds with the
notes that some of its recommendations are at
findings of the Social Assistance Review
39 -
Commi t t ee ( SARC) and the Provincial Municipal Social
Services Review (PMSSR) . These differences are likely due
to the limited mandate afforded PMSSR when compared to this
exercise, rather than to true differences in philosophical
approach. PMSSR examined the realignment of services but
was effectively limited to recommending changes that did not
increase costs to either level of government.
On the other hand, this Committee had the latitude to
recommend changes in the context of the full provincial-
municipal partnership. If PMSSRS framework had been less
restrictive, the Committee believes that the question of a
municipal contribution towards the costs of administration
for general welfare assistance, family benefits allowance,
supplementary aid and special assistance would likely have
been resolved.
The Committee also notes that it is at odds with the PMSSR
on assigning the responsibility for child care. PMSSR
concluded that the level and type of child care facilities
need not be uniform across the province and that it would be
appropriate for municipalities to assume the role of service
manager. This means that municipalities would decide
whether child care would be provided, and if so, how to
deliver the service (directly, through non-profit agencies
and/or the private sector) . They would also carry out
licensing and monitoring of facilities.
This Committee, on the other hand, determined that the
overall provision of child care should be a provincial
responsibility. However, a service-specific analysis would
likely examine the subsidy and program elements of child
care separately. It was felt that child care subsidies
represent a substantial income redistribution mechanism and
40 -
as such are not an appropriate municipal function.
However,
the effective delivery of this service may be provided by a
variety of agents.
Committee Recommendation
2* The Committee's proposed f r a m e w or k should be adopted by the
P r o v i n c e a s a g u i d e f o r r e a l i g n i n g p r o v i n c i a l - mu n i c i p a l
r e s p o n s i b i l i t i e s .
3*5 Expenditure Implications of Realiqning
Responsibilities
Table 3-1 summarizes the impact that the Committee
s
proposed realignment of expenditure responsibilities would
have on the municipal sector.
See Appendix 2 for the
methodology used and analysis of the proposed realignment by
sector. In general, the Committee felt that where
municipalities have sole responsibility for providing a
service, they should incur 100 per cent of the costs
associated with the provision of that service.
In the case
of a wholly provincial responsibility, there should be no
municipal contribution.
If municipalities act as delivery
agents, they should do so on a fee for service basis.
For the purposes of this analysis,
a 50 per cent transfer
rate was applied to those functions that are most properly a
shared funding responsibility.
This transfer rate was
applied to total expenditures except in the case of transit,
where the transfer rate was applied after user fees.
This
recognizes the unique role that user fees play in the
provision of transit services.
41
The 50 per cent transfer rate
was applied to both operating
This approach recognizes that
between capital and operating
for shared responsibilities
and capital expenditures.
to some extent the division
expenditures is artificial.
Capital expenditures can dictate the level of operating
expenditures required to provide a service and conversely,
operating expenditures can often act as a substitute for
capital expenditures. Therefore, transfer rates which vary
between capital and operating purposes may distort the
decision making process. An exception to this general rule
was made in the area of water and sewer expenditures. In
recognition of initiatives toward cost recovery through
greater use of user fees, no provincial transfers were
applied to water and sewer operating expenditures.
T o t a l ( 7 0 9 , 0 6 4 ) ( 1 7 , 9 8 8 ) ( 7 2 7 , 0 5 2 )
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
* Net of transfers
As may be expected, the proposed realignment of
responsibilities would have significant impacts on the
municipal sector as a whole, as well as on individual
sectors. It is expected that net municipal expenditures
(net of transfers) would decrease by about $709 million in
operating expenditures and $18 million in capital
expenditures for a total decrease in net municipal
42
expenditure responsibilities of $727 million.
This decrease
in net municipal expenditures would result in an equivalent
increase in provincial expenditure responsibilities.
However, this analysis should be viewed with some caution as
it does not consider whether it is appropriate that
municipal revenues increase or decrease.
On a sectoral basis, Metropolitan Torontos net expenditure
responsibilities would decrease by the greatest amount, $494
million. This would be largely due to reduced policing and
general welfare assistance operating costs.
Counties would
experience the largest increase in expenditure
responsibilities, $187 million. This would be for the most
part due to increased local roadway operating and capital
costs.
3.6 The Role of Special Purpose Bodies
.
The Committee has found that, in general, accountability
would be better served with fewer special purpose bodies.
The issue here is not special purpose bodies that are
directly accountable to municipal council; the Committee
feels that the number and scope of these types of boards and
commissions should remain a local decision.
The problem
arises from provincially mandated special purpose bodies
where both political and financial accountability are beyond
the reach of municipal council.
Political accountability is absent in that the majority of
members of these bodies are often not elected municipal
officials. Financial accountability is absent because these
bodies can requisition funding from municipalities without
obtaining councils approval.
In other words,
municipalities have less authority over the daily operations
and budgets of these bodies than their financial
contribution would suggest. This violates the pay for say
n
principle.
Since there are a significant number of special purpose
bodies, large portions of the municipal budget are fixed by
requisitions from these groups. This limits a
municipalitys ability to tailor services to best meet the
needs of its citizens.
A key exampl e of t hi s pr obl em occur s wi t h pol i ce
c ommi s s i ons . Mu n i c i p a l i t i e s t h a t p r o v i d e t h e i r o wn p o l i c e
s e r v i c e a r e r e q u i r e d t o h a v e a p o l i c e c o mmi s s i o n c o n s i s t i n g
o f a ma j o r i t y o f p r o v i n c i a l l y a p p o i n t e d r e p r e s e n t a t i v e s .
Thi s c ommi s s i on a nnua l l y de t e r mi ne s t he numbe r of pol i c e
o f f i c e r s a n d t h e s t a n d a r d o f s e r v i c e t o b e d e l i v e r e d . I t
n e g o t i a t e s s t a f f wa g e s a n d b e n e f i t s , s t r i k e s i t s o wn b u d g e t
and requisitions the funds from council accordingly.
Although there is every reason to believe the commission
does this judiciously and prudently, council has no direct
authority to overrule its decisions.
In situations where council disagrees with decisions made by
a p o l i c e C O m m i S S i O n ,
its only recourse is to appeal to the
Ontario Police Commission. However, this bodys predominant
interest is adequate and effective police services in
accordance with the needs of the municipality, rather than
with the associated costs. Under these conditions, it is
highly unusual for a municipality to win an appeal. This
leaves municipalities with no recourse but to raise the
required funds and be held accountable by the ratepayers for
the decisions made by another body.
44 -
Committee Recommendation
3 . Each level of government should have representation on
special purpose bodies commensurate with their
responsibility and accountability for that service.
3.7 Responsibility for Education
The assignment of responsibility for financing Ontarios
educational system is beyond the mandate of the Committee.
However, given that municipalities and school boards share
the property tax base, and that this tax base is the major
own-source revenue for each body, municipal financing
matters cannot be effectively discussed without giving some
attention to the financing of education. As a result, the
Committee reviewed the work of the Select Committee on
Education and the Commission on the Financing of Elementary
and Secondary Education in Ontario (the MacDonald
Commission) . In particular, the Committee noted the
MacDonald Commissions proposal that an education property
tax credit be established.
The Committee agreed that the
proposal is worthy of further pursuit by the Ministry of
Education.
Total education expenditures in Ontario, both mandated and
non-mandated, are expected to be roughly $12 billion in
1990. The property tax is expected to fund almost 55 per
cent of these expenditures compared to less than 47 per cent
of total education expenditures financed from the property
tax in 1978. This 8 per cent increase is equal to a $950
million increase in the share of education expenditures
funded from the property tax in 1990 alone.
45
Table 32 shows how the proportion of property tax revenues
used for education purposes has grown over time across
Ontario. This increasing use of the property tax base for
education purposes has significant implications for
municipalities as these revenues are now shared on a roughly
equal basis. As educations share increases, there will be
less room for municipalities to raise revenues for their own
purposes from the property tax.
Table 3-2
Education Taxes as a Percentage of Total Property
Tax
1978 1988
---------------------------------------------------
% %
Metro 50.3 53.3
Regions 48.8 53.6
co. Cities 44.1 47.6
Dis. Cities 46.1 48.3
Counties 54.4 57.3
Districts 46.5 49.5
Total 49.3 53.0
---------------------------------------------------
Although the Committee acknowledges that it would be
financially and administratively impractical to move to a
system where the Province funds 100 per cent of education
costs, it recognizes that the growing trend of increasingly
financing education from the property tax undermines the
effectiveness of this revenue source to fund municipal
services. Education is a broad based service benefiting
all society and as such it should be funded from more
progressive revenue sources.
Committee Recommendations
4 . The share of the property tax base used to support
provincially mandated education programs should be decreased
46
by increasing provincial funding, thereby lifting some of
the load off property taxes.
5. The Committee endorses a number of recommendations made by
the Select Committee on Education:
. Th e Mi n i s t r y o f Ed u c a t i o n s h o u l d c o n s u l t wi t h t h e
k e y p a r t n e r s i n e d u c a t i o n a s s o o n a s p o s s i b l e i n
o r d e r t o :
- determine a clear and understandable mode of
calculating the cost of providing the education
services mandated in the Education Act and identifying
the basic components of recognized
expenditure; and
- develop a rational means of updating these cost
calculations and ceiling determinations within a
realistic expenditure framework.
. In reviewing the overall calculation and adequacy
of provincial operating and capital transfers, the
Minister of Education and key partners in
education should examine how to improve equitable
access to education resources throughout the
province.
. The Minister of Education should establish a task
force to examine options to make the tax base for
education funding more progressive.
. The Ministry of Education should conduct all
policy reviews with the goal of simplifying the
structure of education finance.
4 7
REGIONAL PLANNING COMMISSIONERS OF ONTARIO
Comments
on
A Reformed Manning Process
in Ontario
DELIVERING PROVINCIAL POLICIES
1 An important mandate of Regional Governments is to ensure that planning
c a n b e
undertaken on a wider and more comprehensive scale. Recent reviews of this role
(e.g. Sewell, Crombie, Ottawa-Carleton Review) have confirmed its increasing
importance and the need for a direct delivery mechanism to translate policies into
action.
2 The subdivision approvad process is the most important planning tool t o ensur e
pr ovincial policies ar e deliver ed in t he ar eas of ur ban gr owt h, int ensificat ion,
affor dable housing and envir onment al pr ot ect ion.
3 Given br oad pr ovincial plannin g object ives, t he r ole of Regional Planning is t o
est ablish Regional Plans t hat pr ovide a Iodized context for the Local Plans to
express their individuality while ensur ing Pr ovincial policies ar e at t ended t o.
INTRINSIC NEED FOR UPPER-TIER PLANNING
4 The delegation of the approval of Official Plans, Official Plan Amendments and plans
of subdivision are best maintained at the upper tier level to ensure that matters of
region-wide importance and upper-tier concerns are addressed in accordance with
the legislative mandates.
6 Plans for growth depend on capital investment and the provision of urban services.
The Regional Municipalities responsible for these areas must be able to make the
integrated decisions related to growth, phasing of growth and the designation of
urban boundaries.
7 The G.T. A. planning exercise examined the complex issues of water and wastewater
infrastructure, transportation, live/work relationships, watershed planning, greenlands
systems and rural development across the G.T. A. While these matters are patently
difficult to co-ordinate, the G.T.A. exercise has proven that it is possible to
achieve co-ordination by working with the five Regions. It is highly improbable
that such co-ordination could be achieved among 35 local municipalities.
ECONOMIC REVITALIZATION
8 The current lengthy development approval system is seen as being a major detriment
to economic growth. A central theme of the latest Provincial review of planning is
that the planning system in Ontario needs to be streamlined so that planning decisions
can be undertaken faster without compromising the natural environment or due
process. Clear Provincial @icy direction will certainly speed up the planning
process; however, if there are 35 different interpretations of a Provincial policy in the
G. T. A., it will negate much of the advantage expected by the development industry.
Strong Regional policies reflecting local desires and circumstances and delivered
through the development approval system is the most efficient means of facilitating
9 In the past Provincial Ministries have taken the brunt of criticism with respect to
delaying the pl
anning process; however, a true analysis of the problem areas in the
approval system would show t hat local municipal delays have been an even greater
problem. The planning process in Ontario needs strong administrative leadership in
addition to strong policy leadership.
The Regional Governments in Ontario have a
proven track record in the delivery of such leader ship. The economic vit alit y of
Ontario depends on a planning administ
ration that can deliver development
approvals in a timely fashion.
REDUCING ADMINITRATIVE cosTs
10 All governments are being asked to do more with less. It is difficult to imagine that
the delegation of subdivision approval, using the G.T. A. as an example, from five
jurisdictions to 35 jurisdictions will result in a cost saving. The administrative
strictures necessary to properly manage and track the development approval function
is already established and running well in all five G.T. A. Regions, and in other
Regions throughout the Province. It is a costly system to operate even with the
substantial economies of scale that are possible at the Regional level. Replicating
this administ rative structure and cost by a factor of seven will benefit neither the
taxpayer nor the economic growth of the G.T.A.
11 Regional planning approvals are, for the most part, delegated to Senior staff. This
results in major time saving and avoids unnecessary duplication of political debate.
The present system has the advantages of allowing for load political and public
input during the process and receiving a quick administrative approval at the end
of the process.
MEMO TO JOHN BURKE
FEBRUARY 1995
FROM R. M. WHITE
Further to our conversation regarding Regional Councils Governance Resolution of February
1, 1995, I have prepared the following comments and recommendations for your consideration.
At our last SPCC Meeting we established the following Halton Region Strategic Objective:
To Redefine Haltons Role in the provision of Government Services in cooperation
with others.
I think youll agree with me that the intent of both the above Strategic Objective and Regional
Councils February 1st Resolution is essentially one and the same. Both directives express
our collective desire to answer the big question as to who (what government body or agency)
is best suited to do what in the way of providing Government Services in Halton.
Furthermore both directives recognize the necessity for cooperation amongst the various
stakeholders in order to sort it all out.
Despite this similarity in their intent, there are two major distinctions between the two
directions. The first is that the SPCC Strategic Objective is Staff Driven and assumes that
Halton Region, as a Corporation, will continue to exist (in one form or another). The Bob
Brechin Resolution is of course Politically Driven and appears to make no assumptions other
than that a change in Governance is required and that we should get on with it as quickly
as possible i.e. consider a report on the matter no later than the end of April 1995.
We all know that achievement of the above Strategic Objective will not be an easy task, even
if we eliminate Bob Brechins end of April 1995 deadline. The tangled complexity of this
subject matter, the fact that it involves so many stakeholders all of whom have a legitimate
vested interest, coupled with the realization that we dont really have direct control over the end
result, is sufficient to dissuade all but the foolhardy from tackling this problem.
Those of us who are oldtimers (familiar with Haltons History of governance) remember the
controversy and difficulty the Province of Ontario experienced in creating the current Region
of Halton, its constituent Area Municipalities and School Boards. At that time:
the very existence of this Region and Area Municipalities;
the establishment of political boundaries;
the assignment of areas of responsibilities
and
between the Region and Area Municipalities;
t he establishment of political accountability,
were then, as they are now, the subject of much acrimonious debate. I believe you would agree
with me that many of the findings, conclusions and recommendations contained in those initial
(pre-1974) reports on Halton Governance, (and elsewhere in Ontario), are just as valid today as
they were then.
I think its extremely important that we not forget the insights contained in those initial Halton
Governance Reports. Furthermore we should not ignore the valuable governance lessons learned
by both staff and politicians over the last 21 years of the Regions existence. I think Regional
Council realized this fact when it decided to review past Reports and Recommendations of the
Regional Review Committee. I think too that this is one of the reasons why you and your
cohorts are currently involved in your Streamlining Initiatives.
Obviously we should all try to build on our past knowledge and experiences on what works and
what doesnt in our collective efforts to Re-define and Re-invigorate our government
organization(s).
Probably the most important lesson that I have learned about governance over the last twenty
five years is that its an unbelievably complex subject. Before one can Define or Redefine
what public service (business) the Regional Municipality of Halton should be in, one must
clearly understand, and Define, what public service (business) both the Area Municipalities
and the Province should be in. To Define what public service (business) the Province should
be in, presupposes that one also clearly understands what public service business the Federal
Government should be in. Finally, this whole governance exercise pre-supposes that we all have
a clear understanding and agreement on what should be (and what should not be) a government
provided service. The sheer scope of this task can be mind boggling to say the least.
It is unfortunate that we cant approach this whole governance problem from the same business
perspective as the private sector i.e. Where/How can Halton Region make the most money?
Whether we all agree on the purpose of specific government bodies, or not, the Corporation of
the Regional Municipality of Halton, like all other government agencies (except maybe the
Lotteries), was created by the Province not to make money but rather to better provide
necessary public services and to better solve certain Halton geographic area problems than
was previously the case (pre 1974).
The term better is obviously a relative term. From my perspective Money is still at the heart
of this better comparison (as it was when the Region was first created). Now more than ever
before financial considerations are clearly front and centre stage. We all know what is coming
and we all know that it is our current Federal and Provincial financial crisis with the Public
Debt and Deficits which will plunge us all into a Municipal Budget Crisis in 1996.
After considering this issue for sometime, I have come to the conclusion that there can never
be a final right or wrong answer to the question of governance, here or anywhere else.
The History of Governance in Halton has proven (time and time again) that the best we can hope
for is the odd periodic (every twenty to thirty years?) Re-engineering of our organizations by
the Province followed by long periods of continual tinkering by the Halton governments and
agencies themselves to try and make the re-engineered solutions work better.
I dont need to tell you that regardless of what final solution is decided upon by the political
powers that be, there will always be a group of people, both in and outside government, who
will argue that we/they didnt get it right and that we should change it all again. It has been
my observation that this often happens even when there is nothing seriously wrong with the
current political governance system. I suspect this tendency to constantly re-examine the who,
what, where, when, how, and why, is our human desire to put our own stamp on things and to
convince ourselves that we are actually advancing or improving the sate of the art and thereby
making a positive contribution to society.
In the next few months we will have a new Provincial government. The NDP sponsored Golden
Commission has been instructed to report on the GTA Governance scene within the next 18
months. Both the Liberals and the Conservatives say they will act on this matter much more
quickly (the Conservatives are talking about a decision within a short few months of taking
office). It is abundantly clear that regardless of which Political Party is elected, Halton Region
and its constituent governments and agencies will be forced to justify:
1. their very existence;
2. their current areas of responsibility within the overall context of the GTA
(whatever form and boundaries that might become); and
3. their political accountability.
In light of these observations you might well ask: Why should Halton and its constituent
governments and agencies even want to discuss this matter at this time? After all it may be
pointless and possibly even counterproductive for us to consider re-arranging the furniture when
we may end up selling the house and moving to different city.
Like it or not change is coming. The public demands it, the political decision makers (including
many senior government staff,) believe in it, and the people who control the money will make
it happen. Either we get out in front and lead the parade or we follow along behind (those
claiming they know whats best for all Halton residents and taxpayers).
I think this new ground swell - uprising for change in governance - is best exemplified by the
often heard slogan There is only one taxpayer!
To me this slogan best summarizes what you and your cohorts are trying to achieve through your
Streamlining Initiatives. This Slogan makes such clear economic sense it would be ludicrous
for us to ignore its message. We all (all the government bodies and agencies who provide
government services in Halton must recognize this paradigm shift to the right and we must be
SEEN as understanding and agreeing with its logical conclusions.
For a long time now the Regional Planning and Development Department has recognized this
new reality. Over the last several years we have tried to better streamline our operations with
those of our local government brethren. We have tried to work with our customers to better
identify how we can avoid duplication of work and thereby reduce government costs. We have
worked with our neighboring Regions/County and the Province to try and steer this issue in a
direction favorable to the interests of the Halton Region Corporation and our community.
We all have a lot to lear n on how t o better cooperate with one another in order to save total
public tax dollars. In this regard both the government staff and the politicians must be SEEN
as constantly trying to maximize t he ut ilit y of all exist ing (and fut ur e) Halt on area government
resources and facilities for the benefit of all taxpayers.
This is why I believe Bob Br echins Resolut ion (which r equir es immediat e act ion) fit s in quit e
nicely wit h our current ongoing Streamlining Initiatives.
When you consider the length of time it will likely take the Province to make up its mind on the
Entire GTA Governance Issue, coupled with the immediate need to address the upcoming 1996
Municipal Budget Crisis, there is much logic in having all Provincially created local
government bodies and agencies in Halton (particularly those dependent on the property tax
base) to cooperate with one another and to re-examine how we can better serve our
communities and customers. Whats best about the timing of Brechins Resolution is that
to accomplish this task we (Halton) has already investigated (and established) an appropriate
implementation mechanism to address this issue.
As you well know over the last few years Halton Region has been carefully examining the issue
of Partnerships, particular Public - Private Partnerships as it relates to the HUSP. On April 26th
our two key standing Committees will consider this issue.
It is my contention that to survive in 1996 Halton Region and its other constituent municipalities
and agencies will need to cooperate like they have never cooperated before. To accomplish this
I Recommend that we all agree (all political bodies in Halton) to establish Formal Public -
Public Partnerships amongst ourselves. To this end the CAOS of each government
body/agency could cooperatively draft up a Manifesto or Agreement of Understanding outlining
the General Purpose and Principles of this Halton Cooperation Agreement (amongst all
signatures) and its Goals, and likely Outcomes. This Broad Agreement should then be followed
by a Directive that all Public Commissioners and/or Departments in Halton who provide similar
public services or who might be able to provide assistance to one another, be required to meet
and discuss how to go about accomplishing - implementing the Agreement. Individual Detailed
Reports and Separate Formal Agreements could then follow from each public service sector
thereby providing categorical proof to the Province and any naysayers that we (both the elected
officials and staff) are acting on this problem.
The beauty of this proposal is that it enables the politicians to have a direct say in the change
they want to see happen while at the same time ensuring that the appropriate government staff
(the people who really know what is going on and what is possible) have sufficient time to work
it all out to their mutual benefit. Should these Agreements prove successful we could then
expand them to include Agreements with neighboring Regions and Municipalities, the Province
etc. Finally we could then explore the Public - Private Agreements which we all know will
involve some very complicated Public Discussion and Legal consideration.
By approaching the governance issue in this way at this time I think that we, both the Public
Servants and Elected Officials, could have a significant impact on the final governance
decision by the Province for all Halton Region area government organizations.
RMW
FROM Richard Whitehead TO 4163271516 P.02
From The Office Of:
Richard Whitehead
Regional Councillor
Region of Peel/ Town of Caledon
Date: September 26, 1995
Dr. Anne Golden
Chair
Greater Toronto Area Task Force
393 University Avenue, 20th Floor-2001
Toronto, Ontario
M5G 1E6
Dear Anne
Subject; G.T.A, Reform
As requested, lam enclosing a copy of my discussion paper regarding a position for Caledon and Peel in the
future Greater Toronto Region. I want to emphasize that the positions put forward here are mine and not necessarily
those of Peel or Caledon. You will find, however, that some of the text and many of the conclusions are similar to, or
the same as, the Caledon proposal since I have participated in the process and have had the benefit of having some
of my text included in the Towns position.
You will recall that 1 was one 01 the Council speakers at the Region of Peel meeting with you and also at the
meeting you had with the joint Conservation authorities in my role as a Board and Executive member of the
M.T. R.C.A, It might also interest you to know that I was the last Deputy Reeve for the Village of Bolton in the County
of Peel and Boltons first Regional Councillor in the Region of Peel. Currently I represent the rural areas, villages and
settlement areas of the East side of the Town of Caledon. I served as a member of the transitional team that took
Peel into Regional government in 1973 and 1974. I was also the first President of the Peel Non Profit Housing
Corporation (Region of Peel) and a Board member and Chair of the Peel Regional Housing Authority (Ontario
Housing Coloration).
My experience in local and regional government and at the agency and Board levels is extensive and varied
giving mea broad and focused perspective of municipal and agency governance. I believe that I am also capable of
providing a high level of objectivity to the issues at hand.
Please call on me at any time that I can be of further assistance to the process.
Yours truly
Richard Whitehead B.A., A. M.C.T. (A)
18820 The Gore Road
R.R. # 3, Caledon East
Ontario, LON 1EO
Phone/Fax:
Office/Res (905) 880-o911
.
Office/Fax (905) 880-2386
SEP 26 95 16 : 51
II-I
Facsimile Cover Sheet
To:
Company:
Phone:
Fax:
From:
Organization:
Phone:
Fax:
Date:
Pages including this
cover page:
Anne Golden
Greater Toronto and Area Task
Force
(416) 327-1515
(416) 327-1516
Richard Whitehead,
Regional Councillor
Town of Caledon / Region of Peel
(905) 880-0911
(905) 880-2385
9/26/95
Comments: Attached find a copy of my submission with
covering letter
4163271516 P.03
Caledon and G.T.A. Reform
For Discussion Purposes
prepared by:
RICHARD WHITEHEAD
Regional Councillor
(Town of Caledon / Region of Peel)
Date: September 11,1995
SEP 26 95 16 : 52
Discussion:
Some months ago the O.M.B, held hearings in Caledon regarding the need to
restructure the electoral wards within Caledon. It was evident, at the end of a
lengthy process, that there is a high level of satisfaction with our municipal
government and Caledons partnership in the Region of Peel. Speaker after
speaker pointed with pride to our community of communities and our ability to
cooperate and enrich our natural heritage. There was very little support for
substantial structural change but an eagerness to carry on with the evolutionary
model created over the last twenty years. People have a genuine feeling that
we have reached a point where it is all starting to work. Caledon has gained a
threshold where its relatively large size has become physically manageable and
financial stability is becoming achievable with careful planning and
management,
In the last few years substantial progress has been made in community planning
and environmental awareness. The community has worked together on
common goals and objectives while internally maintaining the characteristic and
unique differences within Caledon and externally in the context of living with the
large urban partners in Peel and the G.T.A.
Even though Caledon is a large rural and environmentally rich area, the majority
of its population live in urban serviced communities, villages, hamlets and
settlement areas. The three main urban communities and most of the serviced
industrial areas are part of the South Peel system for sanitary sewers. A large
majority of Caledon residents are on piped municipal water provided by the
Region of Peel. The Regional roads and provincial highways system are
essential to Caledon being the host for large volumes of through traffic not only
from north to south for employment and shopping but from south to north for
recreation and leisure opportunities. Caledon does not rely on its neighbors in
Halton, Dufferin and York for any essential services other than for reciprocal
emergency services and boundary road shared costs typical of any local inter-
municipal partnership.
Caledon and G.T.A. Reform
SEP 26 95 16 : 53
1 416 B8D2385 PAGE .005
Conclusion:
Peel is not much more than half way through the growth cycle envisioned over
twenty years ago. In the next twenty to thirty years it will grow to a mature state
of about 1.4 million. Caledon is slated to grow from 40,000 to over 80,000
people, The new Regional official plan and strategic plan provide the blueprint
for growth and change.
Increasingly, Caledon is seen as the steward for Peels substantial natural
heritage. Depending on Peels large infrastructure and financial resources,
Caledons role is to husband and enrich the fragile environment that provides
the green space, agricultural reserve, fresh water and open areas so essential
for healthy communities. Caledon is at the leading edge in environmental and
rural community planning. Suggestions that the large urban areas of Peel
should be restructured to exclude the rural areas to the north are not practical
solutions. Environmental well being is not well served if headwaters areas are
politically separated from the lake.
While the political decision in the 1970s to amalgamate Peels rural
municipalities to form the Town of Caledon was correct for planning, economic,
social and environmental reasons, it is a fact that its sheer size has always been -
a logistical problem that has had to be managed carefully. Any suggestion that
Caledon, or any other local municipality in the G. T.A., should be made even
larger should be reviewed very caution.
Change to bring about needed reform and improvements in effectiveness and
affordability is desirable, but, change just for the sake of change should be
avoided. We must be conscious of the substantial reasons for reform and keep
these objectives clearly before us as we look at the options. Municipal reform
brings its own price tag in cost, dislocation and reorientation. Twenty years is
not a long time in municipal life.
Some change in Caledon and Peel is necessary and required. A form of
modification and not a major overhaul of municipal government in Peel is the
preferred option.
Caledon and G.T.A. Reform
Conclusion: - 3
SEP 26 95 16 : 54
The Golden Commission or the Government of Ontario may want to choose a
more radical option for local government reform and look for even greater
consolidations in the Greater Toronto Area. If this is to be the ultimate direction,
Peel and Caledon can serve as the anchors for new and larger structures. The
recommendations following offer twO other options.
The first option would see Peel expand its external boundaries to provide
more growth infrastructure for West York while maintaining the
advantage of having only three local area municipalities, Caledon would
merge with King West of the 400 highway and a small portion of North
West Vaughan to maintain a municipality dedicated to the preservation
and enrichment of rural and small communities. Brampton would absorb
the remainder of Vaughan West of highway 27 providing a host for
extensive and continuing urbanization from the South Peel water and
sanitary sewer system.
The second option would fit a scenario contemplating an expanded
Metropolitan Toronto containing Mississauga, Brampton Oakville, Milton,
and Vaughan but not containing the other suburban areas in Halton,
Peel West York and South Simcoe. In this model a new Head Waters
Region would be formed in an expanded G.T.A. The new Region,
bounded on the East by the 400 highway, would consist of four new area
municipalities. Caledon and West King would merge. Halton Hills, Erin
and Erin Township would merge. Orangeville, Mono, East Garafraxa,
Luther, Grand Valley and Amaranth would merge. New Techumseh,
Adjala and Tosorontio would merge. A similar new Region would be
formed on the East side of the G.T.A. using highway 400 as the Western
boundary.
This new Region, dedicated to environmental protection and rural living,
would belong to a new G.T.A. and require special financial consideration
in the absence of sharing higher commercial and industrial assessment
or infrastructure caused by substantial urbanization. The advantage of
creating these two new suburban G.T.A. Regions in this way would be to
reduce the need for a feeding frenzy of constant growth in
assessment to survive financially,
Caledon and G.T.A. Reform
Conclusion; B 4
Recommendations:
Municipal Structure:
Two tier municipal government should be retained throughout
the G.T.A with close ties between the upper tier and the lower tier
within the same region and with a clear and defined protocol for
discussing and resolvlng Inter regional Issues. For Instance, all
members of the upper tier council should also be members of the
lower tier council by running at large in wards structured to elect
members to sit on both tiers. Where necessary and where
effective, lower tier municipalities should be further rationalized.
The structure of the two tier municipal system must continue to
be flexible allowlng each region and each area municipality to
maintain a custom built system to meet the special needs of the
various communities.
. Region Of Peel
Ideally, The Region of Peel, one of the most rationalized Regions,
should be retained as it is currently structured with the three
local area municipalities of Mississauga, Brampton and Caledon.
Alternatively, Peel could be expanded to include Vaughan West
of Highway 27 and King West of Highway 400 increasing the size
of Brampton and CaIedon and permitting the extension of the
South Peel Water and Sanitary System into West York.
Alternatively, Peel could be disbanded with Mississauga and
Brampton joining Metropolitan Toronto and Caledon forming part
of a new Headwaters Region.
. Town of Caledon
Ideally, The Town of Caledon, the G.T.A.'s largest municipality
geographically, should be retained at Its current size and
composition.
Caledon and G.T.A. Reform Recommendations: . 5
Alternatively, in an expanded Peel, Caledon would merge with
West King and Rural Vaughan to form a new rural and small
community municipality retaining its five seats on the new
Regional Council and thereby its political viability.
Alternatively, in a new Headwaters Region, Caledon and West
King form one of four new area municipalities.
These
municipalities would be as follows:
Humber Credit Highlands (Caledon and King West of
400)
Halton Highlands (Halton Hills, Erln, Erin Township)
Dufferin Highlands (Orangeville, Mono, East Garafraxa,
Luther, Grand Valley, Amaranth)
the
Simcoe Highlands (New Techumseh, AdJala, Tosorontio)
Local Agencies and Boards:
B Educat i on
The whole structure, financing and service delivery of education
at the elementary and secondary level should be reviewed
including the relevance of retaining school boards.
Municipalities should play a greater role in capital programs to
build and maintain facilities.
Provincial revenues, and not
property taxes, should
function.
B Hydro Commissions
be used to support the actual educational
Hydro services should be a regional responsibility pulling
together the big three utilities of water, sanitary sewers and
Hydro Into one combined and consolidated urban program
planned, financed and operated by the upper tier municipality.
Caledon and G.T.A. Reform
Recommendations; B 6
B Public Housing Authorities
Municipal and provincial housing authorities should be merged
in each Region into upper tier authorities. Greater reliance
should be placed on rent supplement agreements with the
private sector providing the physical shelter opportunities.
. Library Boards
Library Boards should be abolished but retention of advisory
committees, in smaller municipalities or easily identified
communities within larger municipalities should be seen as a
means of maintaining optimum use of dedicated volunteers.
Approval of budgets and financing of capital projects should be
solely the responsibility of local area municipal councils.
. Police
Policing should remain the responsibility of Regional
Government. Pollee Service Boards should either be eliminated
or all or at least the majority of the members should be Regional
Councillors selected by the Regional Council. Where there are
separate policing arrangements within one region, as is the case
in Caledon with the O. P.P., and where there are pollee services
boards, a separate board shall be set up for each separate
arrangement and the membership of each board shall be from
the area served.
Trans Regional Bodies:
B The G.T.A
Assuming that there will be a retention of the two tier municipal
government system and the area will be served by several
different regions, the G.T.A. should still be a visible entity for the
purposes of provincial, Inter-regional and inter municipal
planning, service coordination and service delivery.
The
boundaries of the G.T.A. should be expanded to include a wider
area with respect to watersheds, transportation corridors,
environmental and resource management and urban growth and
development.
Caledon and G.T.A. Reform
Recommendations; B 7
B G.T.A Advlsory Committee
This committee should replace the G.T.A. Mayors Committee
and be a non Institutional forum designed to formulate
solutions to inter municipal servicing issues and discuss G.T.A
wide development and infrastructure priorities. Since most of
the issues will be regional and provincial in nature, the core of
the forums membership should come from the province and the
Regional or County Councils on an agreed formula. A Local area
municipality, not represented on the core membership, would be
invited to participate fully on specific issues related to the
mandate of that municipality and its Council.
. Conservation Authorities
Watershed management and related environmental and resource
management is a very special area of service that is trans
regional and key to the principles of ecosystem management.
The role and purpose of this type of environmental protection are
best maintained through the retention of the concept of a
conservation authority. Gaps In regulatory powers and
duplication of service are best resolved by strengthening the
powers and responsibilities of the authority though a further
delegation of federal and provincial responsibilities and
maintenance of the Board membership coming principally from
the upper tier municipalities.
B Niagara Escarpment Commission
This Commission should be retained for the foreseeable future
given the Importance of retaining and protecting the Integrity the
Niagara Escarpment.
. Go Transit
Either this agency must be given more authority to regulate
levels of service or efficiencies In the area of inter-regional and
Inter municipal transit and required to provide minimum service
levels to the outlying areas or a better model must be found to
deal with these issues.
Caledon and G.T.A. Reform
Service Delivery:
. Peel & Caledon or any two tier option
Assessment and Taxation
. Assessment
Ontario needs to Introduce and regulate meaningful and Ongoing
assessment reform. Regions should be delegated the task of
implementing provincial assessment policies once approved
through a consultative process with all levels of government.
Municipal tax reform begins with placing a much higher
percentage of the municipal tax bill In the exclusive control the
municipal government. Direct costs of education should be
removed from property taxes. In return for this reform municipal
governments should be prepared to rely much lesson provincial,
direct or indirect, subsidies for services that are purely
municipal. The tax structure and tax sharing structure is far too
complex and inequitable.
Caledon and G.T.A. Reform
October 12, 1995
VIA FAX 416-327-1516
Dr. Anne Golden
Greater Toronto Area Task Force
TAXI REGULATION AND INDUSTRY CONCERNS WITH CONVERSION FROM
TORONTO LICENCES TO GREATER TORONTO LICENCES
I am a Chartered Accountant operating my public practice in
Newmarket, Ontario. However, I still have maintaned my licence to
operate a taxicab in Toronto (from my University of Toronto days)
and still act as agent for my late fathers Metro taxicab plates.
My education and first hand knowledge of the industry combined
with my study of economic regulation should give this task force
a realistic look at the problems in conversion CO a single GTA
TAXICAB LICENCE AND GTA TAXI OWNERS LICENCE.
Driver Training
a) Driver training is a joke under the present Toronto system.
Drivers can not spell and/or speak english. Almost 20% of the
cabs are lost when given the major intersections in the Toronto
area. Also, 5-10% of the cabs do not have proper map books that
are up to date and can find streets when asked to look them up.
Therefore, if these cabs do not have a working knowledge of
Toronto what happens if they try to work in another city???
Solutions
The GTA agency to have a driver training facility and each
city would have a minimum 10 hours of training per city
of 100,000 or less in population. If the cities have a population
which is over this 100,000 threshold a 1 hr training per every
10,000 people would be required (ie a city with a population of
3,500,000 would require 350 hours of training which translates
into 10 weeks of classroom time) , This would ensure the licensing
system is fair and drivers have proper training based upon the
complexity of the city within the GTA in which they select
operation. Under this system each taxi driver would have a GTA
licence issued for each city he is trained for (ie GTA-Richmond
Hill).
The fees and costs for each course would be based on the length
of the course to ensure the smaller cities are fairly treated as
it should cost more to train a driver in a larger city than a
smaller one.
cont. ..2
OCT 11 95 14: 43
2
Conversion of Owner Plates to GTA
Presently, each city has a different market value for a plate. I
believe that plates should be looked at in a similar fashion to a
franchise. Thus, plates have market value and it is based upon
operating location. Toronto has the highest value and Airport
plates are even higher. This concept of value is established in
most cities and the licence values in major US cities are
similiar to the established Toronto values. Therefore, the
smaller cities in the GTA must raise the values of the plates to
say $75,000 before a conversion could take place. In order to
achieve this a plate freeze (even buyback in smaller towns may
need to happen) and meter increases should occur in the smaller
cities until the plate values are all within $2,000 of the
established value. The established value should be $75,000 in
1995 dollars and indexed to inflation.
The above recommendations would balance the operating costs and
demand differences as the plate value represents the return on
investment after reasonable wages and operating costs. The
smaller cities would have improved working conditions as plate
values are too low reflecting too many cabs on the road.
Also,
these changes would create stability in the entire region for the
cab industry and is one of the major reasons for regulation in
the first place. If the above recommendation occurs then no
incentive would be to flood a region with too many cabs at the
expense of another since everybody would be concentrating
serving their own area of training.
GTA Vehicle Safety
The current Toronto system is far to complex. To simplify
on
the
issue the GTA enforcement should consist of two annual safety
certificates that must occur in January and July and delivered to
the GTA commission. Also, street enforcement should consist of
inspection for clean vehicles and in good repair. The commission
inspectors should be able to demand a physical and mechanical
check with the power to remove the owner plate for 24 hours if
the repair is not done in 48 hours.
If the plate is pulled twice
in any twelve month period a automatic 14 day suspension should
occur. If a third offence occurs in twelve months a 60 day
automatic suspension to occur.
This is fair and the focus would
be on the bad operators with a consistent and simple penalty.
3
OCT 1 1 9s 14:4!-4
3
What happens when the taxi supply is to be increased for
increased population growth??
I believe that my plate value formulae iE fair and once plates
increase above $75,000 (1995 value- indexed to inflation
thereafter) an increase in supply is justified.
How do we increase the supply?? This is a difficult question.
Does the GTA sell the plates at 100% market value to any
interested buyer?? Does the GTA provide financing???
Do we reward long-term drivers (ie those with 20 years of more
experience) with first shot at the increase in supply??
My recommendation
The formation of a new list would be based upon the first date
the taxi driver or owner licence was issued for those taxi
drivers and owners that are not owned directly or indirectly a
taxi plate in the last twenty years.
This new list would then allow any long-term taxi driver to
purchase a plate at 90% of the indexed established value being
$75,000 of the 1995 value indexed to inflation. The GTA is also
to provide a loan guarantee (for a fee) to those drivers that do
not have financing. This will ensure that the drivers can have
access to financing.
The issue of new GTA plates should pay for most of the GTA
commission costs that are associated with its operation. If more
money is needed the annual fee per GTA taxi owner plate should be
at a maximum of $500.00 per year (1995 value indexed to
inflation). This recommendation will ensure efficient operation
of the commission and it will also prosper through the entire
growth of the area. This is built in incentive to the commission
to keep red tape at a minimum and try to ensure that government
over-regulation or gouging of it does not happen.
When to Issue NEW GTA PLATES
The only time a plate can be issued is if the GTA plates sell for
more than $10,000 above the GTA established value of $75,000
(1995 year indexed to inflation). This is to prevent owner
excessive profits and allow for minor blips in demand. This helps
to create future stability of this industry as it allows
predictable end controlled working environment for the drivers
and efficient public service which is the main reason for
economic regulation.
cont. . .4
OCT 1 1 95 14:44
1 905 836 1677 PAGE.17G14
Wu d
4
Airport GTA Taxi Service
The main loser of these recommendations are the Airport cabs as
they sell for more than the $75,000 1995 established value
indexed to inflation. The Toronto Airport should be opened up to
all in the GTA. This should improve service to the Airport and be
fair to of the other municipalities and taxi cab owner and
operators. The City of Toronto is the onlv major citv that is
not served by its local cabs. Mississauga cabs serve the airport
and not Toronto taxicabs. Before the airport is opened up any cab
wishing to serve the airport a special Airport Training Course
must be completed to ensure proper street guides and GTA
knowledge has been obtained by those drivers wishing to take
passengers from Pearson. The RCMP can effectively check the GTA
licence of drivers for enforcement.
If any questions arise or further comment or input is needed,
please feel free to call me at 905-898-3355. I will attend in
person for a submission on October 18, 1995 if further
clarification is needed or if someone would like me to attend.
Your very truly
Peter A. Wiesner BComm CA
cc John Duffy, Publisher Taxi News
Dennis Fortinos office
Metro Clerk, Rosalind Vyers
OCT 1 1 9 5 1 4 : 4 4
THE CORPORATI ON OF THE CI TY OF YORK
-- the unilateral decision to def er construction of the
Eglinton Subway Line with devastating effects on Yorks and
Metro's planning and economic development objectives.
-- the pos s i ble cancellation of the City Centre GO Transit
station again with devastating impact on the City Centre
development, in spite of a signed Memorandum of Understanding.
-- the possible withdrawal of funding for the new Humber
College campus and the closing of the Keelesdale campus, with
no consultation. Humber College is an essential component of
our Citys skills training and economic development strategy.
2.
--the recommendations that a number of hospitals will be
closed specifically, Northwestern Hospital in the City of York
--the suggestion from the Sweeney Report on School Board
Reduction that the Board of Education for the City of York b e
amalgamated with the Toronto School Board along with the East
York Board of Education, thus making the newly created Board
larger than the recommended size in the report.
Areas where provincial/municipal interface needs
to be
st r eamlined:
- .
Ministry of Environment and ENERGY delays on
comments/approvals. Timelines need be es t ablis h ed for
response to the Municipality to avoid protracted length of
time for response.
--Provincial approva1s to Official Plan amendments, again
timelines need to be established to avoid documents getting
lost in the shuffle. It should be ticked that some positive
steps have been t aken at better co-ordination amongst
Ministries through efforts of the Provincial Facilitator.
--t h er e h a s
governmental
to be a more defined process for an inter-
consultation process
Frances Nunziata
Mayor
City of York
A Creative Response to the Challenge
The City of York s Submission
to the Greater Toronto Area Task Force
Contents
PART 1 FINDINGS& RECOMMENDATIONS
FINDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... .1
WhyYorkWorks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Focus Of The Submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
PART 2 EXECUTIVE SUMMARY
The U.S. Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
The Canadian Model... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Options for Property Tax Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
RECOMMENDATIONS AT A GLANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
PART 3 YORK: RESPONDING WITH ENERGY& INNOVATION
METRO TORONTO: ECONOMICALLY VULNERABLE:.. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . ....11
DIMENSIONS OFTHE CHALLENGE FACINGTHETASKFORCE ONTHEGREATER TORONTOAREA....11
Certain Needs Know No Boundaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Municipal Winners and Losers.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
ONTARIO HAS LED THE WAY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
A Successful & Evolving Federation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
SHARING HAS WORKED.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , 14
Principle of Shared Responsibility
Robarts Commission: Bounda ry Changes Recommended . . . . . . . . . . . . . . . . . . . . . . . ..........16
York: Primary immigrant Reception Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....17
YORK DEMONSTRATES INNOVATIVE LOCALGOVERNANCE . . . . . . . . . . . . . . . . . . . . . . . . ......18
i) Multi-Agency &Comm unity-Based initiatives... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
ii) initiatives Taken By City Departments and Local GovernmentAgencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Cost-Effective&Responsive LocaI Administration.........., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Service Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Yorks Human Service Delivery System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .........24
THE YORK EXPERIENCE: A MODEL FOR THE GTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
SIX PRINCIPLES FOR EVALUATING CHANGES TOTHE WAY THE GTA OPERATES . . . . . . . . .
.2 5
Sharing
An Equitable, Understandable &Flexible Tax Base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
C I T Y OF Y OR K 9 5
PART 4 CONCLUSIONS& RECOMMENDATIONS
SHARED RESOURCES EQUAL SHARED BENEFITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
1. Strengthen Pooling Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2. Strengthen Revenue Sharing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..27
Options for GTA Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REVIEWINGTHEOPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;:
l) incremental Changes to Existing Arrangements... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
2) A GreaterToronto Area Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
3) A Revised Provincial Grant Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
5) Local Boundary Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
ACHIEVING TAX BASE EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Assessing Alternative Approaches to Reassessment . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . ...........35
I) Market Value Assessment (MVA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....-35
2) Factored (Partial) Market Value Reassessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 6
3) Unit Assessment Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
TAX SHIFTS &WAYS TO ADDRESS THEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
PropertyTaxRelief .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Ontario PropertyTaxCredit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...............40
The Experiences of Others... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............40
APPENDIX A SUBMISSION TO THE GTA TASK FORCE:WHAT WE DID... 41
APPENDIX B REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
C I T Y OF Y OR K 9 5
THE CORPORATI ON OF THE CI TY OF YORK
2700 Eglinton Avenue West, City of York, Ontario M6M IVI Tel. [416] 394-2607
Fax [ 416] 394- 2782
PLANNING AND
ECONOMIC DEVELOPMENT
Edward R. Sajecki. P. Eng. . MCIP.
CommIssloner
September, 1995
Mayor & Members of Council,
I am pIeased to present for Councils consideration, the final report of the City of Yorks GTA Steering
Committee for submission to the Greater Toronto Area Task Force.
City Council, in the spring of this year, appointed a Steering Committee consisting of members of Council
(Mayor Nunziata, Councillors McDonald, Mihevc and Saundercook), and City staff (Bob Hamilton, Karen Hen,
Ron Maurice, Wendy Tysall and Ed Sajecki) to develop the Citys position. The Committee was supplemented
by consultant assistance in the areas of municipal organization and finance, and maintained close liaison with
all City Departments, as well as Boards and Commissions.
Our work included a review of relevant background material on governance and municipal finance, and
specifically assessment data and other relevant statistical information for York. This included the work of
previous Royal Commissions; approaches to municipal finance and municipal organization in other jurisdictions
across North America; submissions as they became available; and key issues derived from the extensive
research knowledge and experience brought by our consultants - Dr. Frances Frisken of York Universitys Urban
Studies Program, and Carla Nell and David Powell of Municipal Tax Equity Consultants Inc. The Director of
Finance & City Treasurer, Wendy Tysall, worked closely with the financial consultants in coordinating Yorks
position on municipal finance reform.
I wish to thank all who assisted in the preparation of this report, in particular the members of the Steering
Committee and our consultants. I would be remiss if I did not specifically recognize the special contribution of
Dr. Frisken in the research and writing of this report.
Most invaluable was the support of Department Heads and their staff, as well as the Citys Boards and
Commissions.
Additional thanks to the community and business participants who once again answered the call to assist the
City by participating in the focus group sessions and whose insights greatly contributed to developing the
submissions principles; to those individuals who provided input during the process; and to our focus group and
public meeting facilitator, Bill Tranter of Co-Design Training Services Inc., whose assistance was so valuable
in drawing out discussion.
A special thanks to Jim Hoshko, Bill Davis and Bob Windsor who contributed many evenings and weekends to
this project. And to Brian Green, Vera Elliott and Sharon Ramer for their extra efforts.
Finally, on behalf of the Steering Committee, I wish to express my thanks to the Mayor and members of Council
for their support during the total project.
Commission; of Planning
& Economic Development
GTA Project Coordinator
The Greater Toronto Area Task Force was
established by the provincial government to
consider what structure and form of government
would work best to manage the communities both
within Metropolitan Toronto and the surrounding
areas (such as Oshawa, Burlington, Mississauga,
etc.). Individuals, groups and communities have
been invited to make recommendations to the
Task Force. This is the City of Yorks submission.
FINDINGS
The Toronto area has avoided the serious
problems that afflict many large urban regions in
the United States, Consequently, it has a
worldwide reputation for effective governance.
The governing arrangements to which it owes that
reputation should not be discarded lightly, nor
should their achievements be ignored. At the
same time, the growth that is occurring in the
areas surrounding Metro, together with the
increasing complexity of change within Metro,
suggest a need for adjustments.
Our findings show that the City of York has
responded to the challenges of economic and
social change with energy and imagination. The
City has responded effectively to a complex and
changing community despite a tightly constrained
budget. It leads all other GTA municipalities in
providing housing and local services to
newcomers to Canada.
York works as an efficient and responsive unit of
local government. According to municipal financial
data from the province, York has consistently had
among the lowest local government overhead
costs per household in Metropolitan Toronto and
the GTA. For the most recent years that data is
available (1990-1 993), Yorks overhead has been
the lowest in three of the four years in Metro, and
third lowest in the GTA in 1993. Thus York has
made impressive progress toward making local
governance more cost-effective. The reasons for
its achievement deserve to be taken seriously.
RECOMMENDATIONS
AT A GLANCE
York should continue as a self -
governing municipality
Reaffirm principle of area-wide
responsibility as a GTA
cornerstone
Strengthen arrangements for tax
pooling
Keep two-tier system or replace
with another process that spreads
costs for services based on ability
to pay
Make local government more cost
effective, more accountable & more
understandable
Establish intermunicipal working
group on boundaries with
representation from York, Toronto
and North York
Move to GTA.wide Market Value
Assessment (MVA)
Phase-in over 5 years
Use Ontario Property Tax Credit
to cushion impacts
Take steps to stop erosion of Metro
tax base resulting from assessment
appeals
Obtain both local & external
reaction to GTA Task Force
proposals
CITY OF YORK 95
1
Wh y York Work s
a) Its relatively small size. York is still small
enough to allow for ongoing interaction among
City officials, business leaders, community
organizations and private citizens. Its local
government displays many of the
characteristics that private corporations now
seek by breaking up large bureaucracies into
smaller operations. These characteristics
include co-operative relationships among
different parts of the civic administration;
avoidance of excessive specialization;
accessibility and accountability to
constituents.
b) A well-developed sense of community.
City of York programs have benefitted greatly
from the dedicated work of community
organizations and the contributions of a large
number of local volunteers.
c) A context that promotes the sharing of
local resources for regional benefit.
Services provided to York residents by
Metropolitan Toronto are financed out of
pooled local taxes to which municipalities
contribute according to their ability to pay. As
a low assessment community with a high level
of need, York has been a net beneficiary of
Metro spending on social services and public
education.
A collective approach to financing regional
services is essential to ensure that the City of
York and other municipalities remain healthy
and vibrant communities within a healthy and
vibrant urban region. There are two serious
obstacles to maintaining or strengthening a
collective approach, however:
1) The large inequities that characterize the
existing system of property taxation in the
GTA; and,
2) The financial hardships some taxpayers
will experience if that system is changed.
The existing system of local governance needs
immediate adjustments to make it more cost
effective, and there needs to be regular review
to keep it that way. Erratic local boundaries
cause problems for some taxpayers and add to
local administrative costs. While upper-tier and
lower-tier government functions tend to
complement rather than duplicate each other,
there are areas of conflict or overlap. Lines of
accountability are not clearly drawn. There is
not always co-operation either within or between
levels of government. The two-tier system is not
well understood by most area residents.
Focus of the Submission
This submission focuses on three issues of
particular concern to the City of York:
1) How to finance local services in an urban
region composed of municipalities that
differ in wealth, population characteristics
and stages of development;
2) How to make local government more
efficient while keeping it responsive to
local residents; and,
3) How to approach property tax reform.
While it regards property tax reform as
necessary to maintain the financial health of
core municipalities and ensure equity in the local
revenue system, it also acknowledges the
difficulties of implementing it. It does not
address issues, like the business occupancy
tax, alternatives to the property tax, and special
purposes bodies, that are dealt with adequately
in other submissions.
To prepare this report and develop the
recommendations, civic staff and consultants
have drawn on past studies of the Citys
administrative structure, meetings with and
submissions from officials of City and
community agencies, focus group discussions
among representatives of community and
business organizations, the comments of
citizens attending public meetings, and a large
body of published information about the way
urban regions evolve.
2
CITY OF YORK 9 5
RECOMMENDATIONS
1. The City of York should continue as a self-
-governing municipality with the legal
authority to respond to the needs of its
culturally diverse population. York is a
lean, efficient and effective administrative
unit which should be assured the financial
means to respond effectively.
2. The Task Force should reaffirm the principle
of area-wide responsibility for services of
area-wide benefit, as stated by Lorne
Cumming and Carl Goldenberg, and make it
a cornerstone of its recommendations for
GTA governance.
3. The Task Force should recommend
measures to strengthen arrangements for
pooling local property tax and provincial
income tax revenues to fund local services
that benefit the entire Greater Toronto
Area.
4. In keeping with the principle of area-wide
responsibility for services of area-wide
benefit, the Task Force should recommend
either:
a) that the present two-tier system of local
government continue; or,
b) that it be replaced by a system that
spreads the local costs of public
education, general welfare assistance
and other services of regional benefit
among all GTA municipalities according
to their ability to pay.
5. If the Task Force recommends retention of
the present system of local governance, it
should identify ways to make that system
more cost-effective and more accountable
and understandable to GTA residents and
taxpayers. These should include ways to
eliminate service overlaps and duplication,
promote intra and inter-governmental co-
operation, and streamline operations.
6. The provincial government should
establish an intermunicipal working group
comprised of representatives of the Cities
of York, Toronto and North York to
recommend ways to make their shared
boundaries less erratic and more
considerate of local taxpayers.
7. A GTA-wide market value reassessment
would provide the most equitable basis for
local tax base sharing either in the existing
or in a revised system of GTA governance.
Because it would cause some hardships,
however, it should be accompanied by:
a) measures to phase-in large property tax
increases over a period no longer than
the period leading to the next regular
reassessment (five years or less); and,
b) changes to the Ontario Property Tax
Credit system to assist local ratepayers
for whom reassessment results in
property tax increases that outstrip their
ability to pay.
8. The GTA Task Force should recommend
measures to stem the erosion of the Metro
tax base resulting from assessment
appeals. Such measures might include a
temporary freeze on appeals.
9. The Task Force and the government
should solicit local and external reactions
to Task Force recommendations before
making substantial changes in the GTAs
system of governance.
CITY OF YORK 95 3
The Toronto area has so far avoided the severe
economic and social problems that afflict many
large urban regions in the United States. It will
go on doing so only if its system of governance
continues to integrate three different concepts of
.
B
as sites of economic
production having
interdependent and interactive
parts;
the second depicts them as
administrative units with
boundaries and responsibilities
prescribed by law;
the third emphasizes their
importance as sites of social
interaction, communities or
collections of communities
whose members are linked by
shared interests, concerns and
aspirations.
The Canadian Model
The Ontario Government moved away from an
approach based on municipal self-reliance when
it created Metropolitan Toronto in 1953. It
authorized Metro agencies to provide area-wide
services out of a pool of tax revenues collected
from local municipalities according to the size of
MAI NTAI N A
COLLECTIVE
APPROACH TO
GTA
GOVERNANCE
The approach taken to municipal finance will
either link or fail to link these concepts, and thus
determine whether or not an urban region can
function as a cohesive whole.
The U.S. Approach
The more divisive approach gives priority to the
concept of the urban place as a legally-defined
administrative unit, and requires all such units to
take care of most local needs out of locally-
raised revenues. In urban regions made up of
many local units, this approach leads to fierce
inter-local competition for new assessment, jobs
and amenities. Municipal losers in the
competitive struggle experience economic
decline accompanied by social deterioration,
which gradually spreads to all parts of the
region. This approach is widely used in the
United States and is often blamed for many of
that countrys urban problems.
their assessments; that is, according
to their ability to pay. This collective
approach recognized the Toronto area
as an interdependent economy and a
regional community to which all
municipalities contributed in different
ways, even though some were
wealthier than others.
The government adhered to that
approach when it made Metropolitan
Toronto and regional governments
responsible for local welfare and most
public education costs between 1967
and 1974. It also based some of its
grant programs on formulae that took
account of variations in local fiscal capacity and
local need.
Within a context that promotes a sharing of local
tax returns, Metro and its member municipalities
have done well in comparison to core
municipalities in many other North American
urban regions. The City of York therefore asks
the GTA Task Force to reaffirm the importance
of maintaining a collective approach to GTA
governance.
Because of its history, its location within the
Toronto area, and its dependence on a shrinking
manufacturing base for much of its non-
residential assessment, Yorks per capita
assessment has been declining relative to the
Metro average since the 1960s. During the
same period, York has evolved into the GTAs
primary immigrant reception area.
In comparison to other GTA municipalities, the
CITY OF YORK 9 5
5
City of York has a higher proportion of residents
with a mother tongue other than English or
French; a higher proportion of residents with
less than Grade 9 education; a lower average
family income; and higher rates of
unemployment for both men and women.
York has responded vigorously to the
challenges of economic and social change with:
.
.
.
B
B
B
Principle #1: Shared contributions and
shared benefits require a sharing of local
resources.
Principle #2: Local systems of government
should be structured in a way that allows for
frequent interactions and a sharing of ideas
among local public officials, community
organizations and local residents.
Principle #3: Local programs that benefit the
larger community (regional, provincial or
national) should be able to draw most of their
funding from the pooled resources of all
municipalities in the metropolitan area, and
from federal and provincial sources.
Principle #4: Revised arrangements for local
finance and local governance in the GTA
should aim 1) to make government simpler
and easier to understand and 2) to reduce
government costs by eliminating unnecessary
duplication of effort where it exists, and by
promoting cooperation and coordination
among public and private agencies with
overlapping concerns.
Principle #5: It is imperative to consider the
long-term as well as the short-term
implications of changes in GTA governance
for the financial and social health of the GTA
and its municipal members.
In Table 2.1 we apply these five principles to
five options for GTA governance:
1) modifying the status quo;
2) creation of a GTA Authority;
3) a revised role for the provincial
government based on clear distinctions
between provincial and local responsibilities;
4) provincially-administered local tax base
pooling; and,
5) a revision of local boundaries to make GTA
municipalities more equal in population size
and assessment.
6 CITY OF YORK 95
No option is clearly superior to all others in
satisfying the five principles, although
provincially-administered tax base pooling might
be less difficult to implement than major
structural change. It would also be easier to
adapt to future growth patterns.
Nonetheless, accepting the principles is more
important than the way they are put into effect.
A sixth principle deals with the challenge of
devising an equitable basis for local revenue
sharing.
Principle #6: While the basis for sharing local
tax revenues should be made as equitable and
understandable as possible, it should also allow
for measures to alleviate damaging impacts of
tax reform on financially-vulnerable taxpayers.
Options for Property Tax Reform
We considered the likely impacts on the City of
York of three alternative approaches to property
tax reform:
B Full market value reassessment (Section 63
of The Assessrnenf Act), which would shift
some of the Citys tax burden from the
commercial/ industrial to the residential sector,
as well as causing tax shifts among residential
taxpayers.
In considering full market value
assessment it must be emphasized that
tax shifts are already occurring as a result
of assessment appeals, but in an
unsystematic and uncontrolled way.
CITY OF YORK: 8TH
LARGEST IN THE GTA
1991
Municipality Population
1 Toronto
635,400
2 North York
562,560
3 Scarborough
524,600
4 Mississauga
463,390
5 Etobicoke 309,990
6 Brampton 234,450
9 Burlington 129,580
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Oshawa
Oakville
Vaughan
East York
Richmond Hill
Pickering
Whitby
Ajax
Clarington
Newmarket
Halton Hills
Caledon
Milton
Georgina
Aurora
East Gwillimbury
Whitchurch-Stouffville
King
Scugog
Uxbridge
Brock
129;340
114,670
111,360
102,700
80,140
68,630
61,280
57,350
49,480
45,470
36,820
34,970
32,080
29,750
29,450
18,370
18,360
18,120
17,810
14,090
11,060
B
o
Partial market value reassessment (Section
58 of The Assessment Act), which would
result in tax shifts within property classes but
not between them.
Unit value reassessment, which would use
physical characteristics (possibly
supplemented by a rental factor to
differentiate among differently-located
properties) to determine assessed values.
A full market value reassessment across the
GTA is the approach most likely to make the
property tax system more comprehensible,
more uniformly administered and more
equitable than the system currently in place,
CITY OF YORK 9 5
7
Table 2.1 Application of Principles
to Evaluate Options for GTA Governance
Modified Status A Greater Toronto A Revised Role Tax Base Pooling Local Boundary
Quo Area Authority for the Provincial Adjustments
Government
Principles
Evaluating
Changes
#1 Shared Metropolitan and Extent of sharing More sharing of Could be done by a Robarts Report
contributions and regional depends on the locally-raised GTA authority or by (1977) proposals
shared benefits governments authoritys income taxes if the provincial would bring Yorks
require a sharing of already pool local structure, province assumed
local resources.
government. non-residential
resources for responsibilities and full responsibility assessment to 1/2
physical and social financial for welfare and Extent of sharing Metro average and
services. arrangements. public education; depends on which 2/3 suburban
reduced conditional and what average.
grants, use proportion of local
unconditional taxes were shared. Other possibilities
grants to equalize available.
local spending
capacity.
#2 Local Existing system Established Established Established Would need a
government allows interaction, patterns of local patterns of local patterns of local period of
systems must allow though more easily interaction could interaction could interaction could
interaction and
readjustment and
at the local than at continue. continue. continue if local community
sharing ideas. the regional level. municipalities redefinition. New
remained as they
Municipal size may
patterns of
are.
be a factor.
interaction would
have to be
established.
#3 Local programs Cuts in Metro and Division of Would help Would depend on Inter-1ocal
benefiting larger provincial support responsibilities maintain a what proportion of disparities in
communities are endangering would have to be relatively uniform local taxes are
should be financed
spending capacity
Yorks programs to worked out. quality of local
out of pooled local
pooled, and how would likely be
strengthen its services throughout they are used. reduced but not
resources and/or economy, assist the GTA. eliminated. Funding
provincial or federal recent immigrants Effect on grant and administering
grants. and maintain social programs not area-wide services
cohesion. known. still need to be
determined.
#4 Changes in Existing system Would likely be Existing conditional Simple, easy to Confusing for
governance should works, but is not less complex, more grant structure understand. affected local
reduce complexity, well understood, accessible and gives rise to residents at start.
eliminate There are few more conducive to duplication of effort
duplication and
Inter-1ocal
areas of inter-local and competition cooperation an Some affected
promote duplication, cooperation than among local inherent feature. local governments
cooperation. Inter-1ocal use of special agencies and local may not cooperate.
cooperation exists purpose agencies governments
but could be to deliver regional
improved. services.
#5 Consider the Allows pooling of Allows pooling of Local governments Funding distribution The restructured
long term economic resources and resources and would have little or change as local tax units are likely to
and social provision of provision of no say in bases change. A diverge in taxable
implications of any area-wide services area-wide services developing social flexible option. wealth as their
proposed changes. within Metro and within the GTA. and education separate
regions but not policies. As area grows, economies expand,
among them. Not easily altered provincial
to accommodate Provincial
stabilize or decline.
Inter-regional
government could
future expansion. government would add municipalities If boundary
disparities likely to have little or no to the pooling changes are
increase. influence over the arrangement. inter-regional,
quantity or quality inter-regional
of locally-funded differences would
services. persist.
8 CITY 0 F YORK 9 5
It would also help reduce differentials in the
taxes paid by commercial and industrial property
owners inside and outside Metro, and so help
stem the exodus of businesses and jobs from
Metropolitan Toronto.
Reassessment will result in shifts in the burden
from the commercial/industrial to the residential
sector in the City of York and from some
residential taxpayers to others. Consequently,
York taxpayers likely to experience the largest
percentage tax increases as a result of
reassessment are the owners of lower-priced
single family homes. Large tax increases could
jeopardize the ability of these owners to keep
their homes, thereby causing individual hardship
and threatening neighborhood stability.
RECOMMENDATIONS
AT A GLANCE
a
B
e
@
.
e
B
.
*
York should continue as a self-governing
municipality
Reaffirm principle of area-wide
responsibility as a GTA cornerstone
Strengthen arrangements for tax pooling
Keep two-tier system or replace with another
process that spreads costs for services based
on ability to pay
Make local government more cost effective,
more accountable & more understandable
Establish intermunicipal working group on
boundaries with representation from York,
Toronto and North York
Move to GTA-wide Market Value Assessment
(MVA)
Phase-in over 5 years
Use Ontario Property Tax Credit to
cushion impacts
Take steps to stop erosion of Metro tax base
resulting from assessment appeals
Obtain both local & external reaction to
GTA Task Force proposals
CITY OF YORK 9 5
9
METRO TORONTO:
ECONOMICALLY
VULNERABLE
The Greater Toronto Area, and more specifically
Metropolitan Toronto, has dealt more
successfully with the problems of large city
growth and suburban expansion, than most
other city regions in North America. It enjoys its
good reputation because it has avoided the
severe financial and social deterioration that
.
afflict core cities and inner suburbs of large city
regions in the United States.
Now, however, there is the realization that
ongoing decentralization of industry and
*
population is sapping the economic and social
vitality of the GTAs inner municipalities.
The City of York applauds the priority given by
the GTA Task Force to attacking (the apparent
and potential further decline in economic
.
attractiveness of the core of the GTA. It does
so not only as the core municipality most
immediately vulnerable to the serious effects of
fiscal and social decline but also as a
municipality long compelled by circumstances to
pursue a second Task Force objective: that of
DIMENSIONS OF THE
CHALLENGE FACING THE
TASK FORCE ON THE
GREATER TORONTO AREA
To devise an effective and efficient form of GTA
governance, the GTA Task Force must
reconcile three competing concepts of the
The first stresses the role of urban places as
sites of economic production and major
contributors to regional and national
economies.
The second defines them as administrative
units with rights and obligations to raise
revenues, provide services and regulate
specified activities within legally-defined
boundaries.
The third emphasizes their importance as
sites of social interaction, communities or
collections of communities whose members
are linked by shared interests, concerns and
aspirations.
keeping the costs of local governance as low as
Distinctions among these concepts often
possible.
become blurred in discussions about urban
Yorks recent initiatives to deal with the effects
growth patterns and the administrative problems
they create. Nonetheless, distinctions do exist
of rapid economic and social change illustrate
the capacity for initiative and innovation that
and come into conflict when trying to develop a
already exists within the municipal sector. It
workable approach to local/regional governance.
The task of reconciling them is not easy.
also shows how complex is the challenge of
devising a system of governance that will help
that capacity survive in a time of government
austerity.
CITY OF YORK 95
1 1
Municipal Financial Arrangements
The current concern with dangers posed to
Metros municipalities by rapid peripheral growth
is more than a concern with what growth trends
imply for the regions strength as an
interdependent economy. It is also a concern
with what they mean for the future of the GTA as
a cohesive community, and for the economic
and social health of the various communities
within it.
This concern is not new to the Toronto area. It
was present in analyses of social and economic
trends that preceded the formation of
Metropolitan Toronto, and in subsequent
changes in its structure and responsibilities.
interdependent unit to which all local
governments contribute in important ways,
though not necessarily in ways that bring them
equivalent financial benefits. This approach
works against the development of a regional
community by pitting one local municipality
against another in fierce competition to generate
new assessment and other types of resources.
Municipalities may compete by trying to keep
out those types of businesses and households
considered burdensome to the local tax base or
incompatible with a preferred community
character.
Inevitably some municipalities are able to
compete more successfully than others, with the
result that some get richer, while others get
The same concern has dominated the many
poorer;
studies of city/regional problems in
other North American urban regions
throughout this century - studies that
have seldom led state governments
to make changes in the way
municipalities are governed or
financed, and have never resulted in
changes as comprehensive as those
introduced by the Ontario
government between 1953 and
1974.
Experience gained from the different
ways in which provincial and state
governments have dealt with the
problems of local/regional
governance shows the crucial role of
municipal finance in linking, or failing
to link, competing concepts into a
successful approach to governance. The
approach taken to municipal finance is also
THE
FEDERATED
ARRANGEMENT
PROVED
REMARKABLY
SUCCESSFUL
IN
EQUALIZING
SERVICES
important for the well-being of an areas
separate municipalities and neighborhoods
Certain Needs Know No
Boundaries
One approach to municipal finance gives
precedence to the concept of urban places as
legally-constituted administrative units, which
makes those units responsible for providing all
or most local services from locally-raised
revenues.
It implicitly denies that the area is a functionally
12
CITY OF YORK 9 5
some remain socially cohesive, while
others become burdened with social
tensions.
Since municipalities largest share of
revenues comes from property
taxation, the ones most hurt by
competition are those that have few of
the locational advantages that
investors are seeking (and these can
change as the economy changes), or
that are experiencing a decline in
property values because of neglect or
abandonment.
To perform their legally-mandated
responsibilities, these municipalities
have to raise taxes, reduce services, or
both. Either response makes locations
in these municipalities still less
attractive to business and residents,
causing some of them to leave.
Those left behind are more likely to need the
services that their governments find increasingly
hard to provide, and social decay sets in.
History has many lessons . . .
Municipal Self Reliance -
A U.S. Approach
An approach to local/regional governance based
on municipal self-reliance was the one followed
by Ontario and other provincial governments
until the 1930s.
To varying degrees it still predominates in the
municipal policies of many U.S. states, where it
has resulted in noticeable disparities in the
quality of public services and communal life for
residents of different municipalities within single
urban regions. Consequently it is frequently
linked to many of the serious social problems
associated with urban life in the United States:
problems initially identified with central cities but
now found in many suburbs as well.
Nonetheless this approach has its defenders,
who argue that it contributes to economic growth
by stimulating local governments to take
initiatives to improve the financial well-being of
their municipalities. Moreover, they claim, it is
the most democratic way to manage urban
regions because it allows businesses and
residents to choose from among a variety of
locations offering distinctively different mixes of
taxes and local services.
Less often stated is that it provides senior
governments with a rationale for placing both
the costs and the blame for local problems onto
local governments, even when many of those
problems can be traced to senior government
policies.
Municipal Winners and Losers...
critics of municipal self-reliance emphasize the
high economic and social costs associated with
the economic decline and communal decay
experienced by municipal losers in the
competitive struggle.
They also claim that it increases choice only for
those citizens and businesses who can afford to
move freely from one municipality to another.
The others are likely to see their choices
diminish as jobs and recreational activities
disperse, and as public services, including
public transit, are curtailed or eliminated.
York and others in the GTA are faced with this
possibility.
ONTARIO HAS LED THE WAY...
Ontario made a significant move away from this
policy when it created Metropolitan Toronto in
1953. Underlying the change of direction was
the principle spelled out by Ontario Municipal
Board Chairman Lorne Cumming:
The basic problem to be solved in the
Toronto metropolitan area is indicated in the
significant contrast between the underlying
social and economic unity of the area on the
one hand, and the illogical and inequitable
but extremely rigid divisions of political
jurisdiction and available taxable resources
011 the other (Ontario Municipal Board 1953, 43)
Cumming maintained not only that the areas
problems were common problems, but that
most were related to circumstances quite
beyond the control of the local councils. He
depicted the areas municipal units as members
of a single regional economy to which they
contributed in various ways and from which they
realized various types of costs and benefits.
A Successful and Evolving
Federation...
The federated arrangement that Cumming
recommended proved remarkably successful in
furthering the construction of new schools and
major public works. It was much less successful
in reducing wide disparities in local revenues
and in spending on social and community
services and education.
According to Carl Goldenberg, the Royal
Commissioner who studied the Metropolitan
Toronto system in the mid-1960s, While the
equalizing influence of Metro [had] prevented far
greater inequalities from developing, the spread
between the lowest and highest taxed
municipalities [had] tended to widen. (The Royal
Commission on Metropolitan Toronto 1965,
CITY OF YORK 95
13
172). He recommended that the thirteen
municipalities be amalgamated into four cities as
a way of giving local units more equal
assessment bases from which to pay for their
shares of social services.
The government decided to reduce the number
of municipalities to six rather than four. It also
transferred responsibility for social services and
school financing to the Metropolitan Toronto
Council and the Metropolitan Toronto School
Board.
These changes meant that Metros member
municipalities would contribute to the local share
of those services according to their ability to pay.
Eventually Five Regional
Municipalities...
While changes implemented in 1967
fell short of Goldenbergs
recommendation, they still
represented an attack on the
sanctity of local boundaries virtually
unheard of anywhere else in North
America.
The provincial government acted
similarly when it surrounded Metro
Toronto with regional governments in
the 1970s. Between 1967 and 1974
the number of municipalities in what is
now defined as the Greater Toronto
Area was reduced from 66 to 30.
urbanizing regions as social communities, not
simply as interdependent economies, had been
embraced.
Consequently the government vested
responsibility for financing schools and social
services in regional school boards and regional
councils, just as it had done in Metropolitan
Toronto.
Local government restructuring was not the only
way by which the government acted on the idea
that shared participation in an urban economy
implies shared responsibility for the needs of the
urban community.
This same idea was implicit in government
P R O P E R T Y
TAX AND
GRANT
REFORM ARE
NOW AT THE
TOP OF THE
LIST OF ISSUES
decisions during the 1950s, 60s
and 70s to make or increase
contributions to public welfare
assistance, public education, social
housing, urban public transit and
other local services.
It influenced government decisions
to base some of its contributions
(most notably grants for education)
on municipal ability to pay and
various measures of municipal need.
It was also used in government
attempts to reform local property
taxation and the local municipal
grant structure in the 1970s.
Because attempts to reform the
municipal finance system were
largely unsuccessful, property tax and grant
An important objective of regional government
reform are now at the top of the list of issues the
was to spread the costs of servicing the
provinces growing urban populations over
expanded local tax bases. However, in
restructuring local government into regions, the
provincial government stopped short of treating
the entire Metro Toronto area as a regional
community. Instead, it assigned responsibility
for regional services to five separate upper-tier
units, each with its own set of boundaries and
legally-mandated responsibilities.
Certain Needs Require Shared
Responsibility...
By the time the regional governments were
created, however, the principle of viewing
GTA Task Force must address.
SHARING HAS WORKED...
Provincial grant policies shifted some of the
costs of local services to the provincial income
tax, thereby making Metro taxpayers, with their
relatively high incomes, net contributors to
services provided residents in many other parts
of the province, including residents of regions
surrounding Metro.
The policies also left Metros municipalities, with
their relatively high assessments, more reliant
on their own resources and less reliant on
provincial grants than most other municipalities.
14
CITY OF YORK 95
Even so, in a policy context influenced by the
principle of shared responsibility, Metro and its
six municipal members have fared well, in
comparison to core municipalities in other North
American urban regions.
The principle of shared responsibility has
recently come under attack from provincial and
municipal officials, some of them inside Metro.
These critics argue for a system of GTA
governance based primarily on the principle of
municipal self-reliance, for a weakening or
elimination of upper-tier governments, and for
limiting the provincial governments role in the
administration of local services.
The City of York does not support this position.
In Yorks view, the principle of municipal self-
reliance in policies for GTA governance or
finance would make Metros economic decline
difficult or impossible to reverse.
It would also lead to serious erosion in the
quality of life in the City of York and in other
GTA municipalities.
Thus, it would contribute to the gradual
disappearance of those characteristics that have
won the Metro Toronto area admiration, not just
in North America but throughout the world.
Principle of Shared Responsibility
The City of York therefore urges the GTA Task
Force to reaffirm the principle of shared
responsibility stated by Cumming and
Golden berg and to use it as the basis for
evaluating alternative proposals for restructuring
the present system of municipal finance and
local governance.
At the same time, it asks the Task Force to
recognize that individual municipalities have
unique characteristics which allow them to
make distinctive and important contributions
to the economic and social health of the
GTA, and to recommend a system of
governance that will enable them to go on
doing so.
What it favours is a system of governance
that allows for municipal self-realization
within a context of shared resources and
responsibilities.
This position comes from an historical
assessment of the way the Citys economy and
social structure have evolved within the regional
context, and from a sense of pride in recent
community initiatives to deal with the challenges
of economic restructuring and rapid
demographic and cultural change.
Municipal Financial Arrangements
Critical
At the time of Metros creation the Township of
York, with a population of over 100,000, was the
second largest of the areas thirteen
municipalities. It received fewer advantages
from Metros large investments in new capital
works than did the outer suburbs because it
already had some of the services Metro was
created to provide, and because it had less land
available for new development.
Nonetheless York did benefit from Metro
improvements to the areas water supply and
arterial road systems, and from Metros
decisions to support the construction and
extension of an east-west subway along Bloor
Street.
Despite a 25% increase in population between
1953 and 1963 and a 44.5%. increase in total
taxable assessment, Yorks total assessment
per capita declined in relation to the Metro
average, from 76.2% to 68.5% (Table 3.1).
Large and persistent disparities in the per capita
assessments of Metros thirteen municipalities
prompted Commissioner Goldenberg to
recommend the restructuring of Metro into four
municipalities.
His proposal called for the amalgamation of the
Townships of York and East York, the Town of
Leaside, and the Villages of Forest Hill and
Swansea with the City of Toronto.
The provincial government opted instead for six
municipalities. It enlarged the Township slightly
by amalgamating it with the Village of Weston,
thereby creating the Borough of York. The
change meant a slight improvement in Yorks
total and non-residential assessment per capita
in relation to the Metro average.
CITY OF YORK 95
15
Table 3.1
Per Capital Assessment in the City of York 1954-1994
Total
Assessment
per capita
as % of
Metro
average
Non .
residential
assessment
per capita as
% of Metro
average
Non -
residential
assessment
as % of total
assessment
Non -
Total
Assessment
per capita
assessment
per capita
1580.98
1817.05
76.2 28.9
68.5 31.8
+
1967 141,562
1974 142,297
1909.98
2115.69
72.7
70.0
32.5
30.7
2382.78 56.5
1) Goldenberg
526,61 29.0
(1965), 11, 79-01 and (2) Jarrett, G
22.1
old & Elliot, 3,
13; and supplied by (3) Ontario Ministry of Finance, Regional Assessment Office
Welfare & Education
Financing...Regional
Responsibilities
Since 1989, the twin forces of world wide
recession and economic restructuring have
resulted in the loss of 176,000 jobs, or more
than 8% of all jobs in the GTA. By early 1994,
the number of unemployed in the Toronto
Census Metropolitan Area reached 233,000, or
just under 12%. In Metro the number of persons
receiving general welfare assistance soared to
over 220,000 (lO
O
/. of Metros population) in the
same period, with case-loads tripling since
1989, from 40,000 to 120,000.
At the peak of the recession, over 36 million sq.
ft. (over one square mile) of floor space was
empty in industrial buildings in Metro. In the
GTA as a whole, over 80 million sq. ft. of
industrial space lay empty at the end of 1993.
Vacancy rates within Metro and the GTA have,
however, steadily declined since early 1994. At
a vacancy rate of 9.4%, Yorks rate is the
second lowest in Metro (Torontos is at 8%).
Scarborough and Etobicoke are each about
15%; and North York and East York are 130A.
Across the GTA, vacancy rates run from highs
of 23% in Pickering and 15% in Burlington, to
lows of 7% in Brampton, Vaughan and
Markham.
In York, approximately 1.6 million sq. ft. of
industrial space, out of an inventory of 17 million
sq. ft., is presently vacant. Much of this vacant
space is in large buildings which are more than
30 years old. These larger spaces are
considered by the brokerage community to be
functionally non-competitive. However, there
has been surprising activity in the adaptive re-
Of much greater significance for York and other
Metro municipalities long term well-being,
however, were government decisions to transfer
responsibility for general welfare assistance and
public school financing to the Metropolitan
Toronto Council and the Metropolitan Toronto
School Board.
These changes meant that the quality of these
services provided to residents of York, which
registered the lowest average family income and
the lowest assessment per capita in Metro,
would be roughly equivalent to those provided in
other parts of Metro.
Robarts Commission: Boundary
Changes Recommended
Improvements in Yorks assessment resulting
from reorganization proved to be short-lived. By
1973 Yorks assessment per capita had fallen in
relation to the Metro average. The second
Royal Commission on Metropolitan Toronto (the
Robarts Commission), after noting continuing
disparities in local assessments, recommended
that York and East York be enlarged by adding
to them parts of North York, Toronto and
Scarborough. The proposed boundary changes
would have meant population increases for
Metros two smallest municipalities and
16
CITY OF YORK 9 5
use of such buildings.
Very recently, large buildings which had been
vacated by major local companies that either left
or closed down, are being converted for creative
re-use. Two current examples are the new
International Food Trades Centre on St. Clair
Ave. W., and the proposal to convert the former
Cooper Canada building into an International
Trade Centre for small businesses.
The losses in manufacturing employment may
have hit its peak through the worst of the
recession, as job loss between 1993 and 1994
was less than 2%. Increasingly, however, the
Metropolitan Toronto and York economies are
depending on smaller, non-manufacturing
service businesses. Today, over 60% of Yorks
companies are small, having less than 10
employees. This is a trend that is
expected to continue in York and
across Metro and other parts of the
GTA. It is vital that new employment
sectors to replace Yorks traditional
manufacturing base be aggressively
pursued.
Small retailing is a particularly
important sector in York. The
percentage of Yorks employment
devoted to retailing is substantially
higher than for Metro as a whole -
26% of the total jobs in York, versus
16% for Metro. This sector has a
strong multi-cultural and multi-ethnic
base which mirrors the residential
population of the City. York Council
Subway. In very recent meetings with the
Provincial Government, the City has received
assurances that the July announcement on the
subway by the Minister of Finance is a deferral,
and that the subway will be re-commenced.
York: Primary Immigrant
Reception Area
York is a primary reception area for immigrants
and refugees in Canada. While Yorks
importance as a site of manufacturing
employment has been declining, the City has
been fulfilling an equally important but less
productive role in terms of providing jobs and
generating assessment in the Toronto area
economy: that of accommodating immigrants and
refugees to Canada and helping them adapt to
YORK ISA
PRIMARY
RECEPTION
AREA FOR
IMMIGRANTS
AND
REFUGEES IN
CANADA
the Canadian economy and society.
Just as Metro attracts a higher
proportion of new immigrants than any
other Canadian city, so York attracts a
higher proportion of immigrants than any
other Metro municipality.
Just over 50% of the Citys population in
1991 was born outside Canada (City of
York Community and Agency Social
Planning Council 1994, 6). Many
immigrants and refugees begin their stay
in York. As they become established
and move on, their places are taken by
other newcomers.
Thus York has experienced a gradual
has targeted retailing as a key component of
decline in the proportion of its residents who trace
community economic development-and renewal.
Employment in the office sector has remained
relatively stable, with losses of less than 400
employees in this sector through the recession.
By 1990, office employment actually increased
from the mid- 1980s level by about 25%, but
declined by almost the same amount during the
recessionary period between 1991 and 1993.
Between 1993 and 1994, office employment in
the City of York has actually increased by nearly
4%, while Metro has declined by almost the
same amount. However, any significant
increase in this sector will be dependent on the
progress of the York City Centre and the re-
starting of construction of the Eglinton West
their origins to the United Kingdom and Europe,
and a gradual increase in the proportion of
residents who trace their origins to Latin America,
the Caribbean and Bermuda, India, Asia and
Africa.
There are a number of reasons why York has
become the GTAs primary immigrant reception
area.
The most important is probably its location, which
gives its residents relatively good bus access to
most other parts of Metro, and thus to ethnic
support groups and institutions and to a range of
job possibilities. Housing prices are lower in the
City of York than other parts of Metro, adding to
the advantages of Yorks central location.
CITY OF YORK 95
17
Table 3.2
Selected Characteristics of GTA Municipalities
Municipality % Mother % Housing
Tongue other rented rather
than English or than owned,
French. 1991 1991
Average census
family income,
1991
% families with
Income above
the O atinnal
average
% pnpulation Unempl oyment Unempl oyment
with less than rate, males rate, females.
Grade 9
education, 1991
9.5
9.5
10.0
9.1
30.7 54.9
35.2
43.3
42,3
-
50.7
$55,434
$61932
S63,394
$54,612
$65.116
$50,619
10.5
9.8
7.8
8.7
11.4
12.4
8
16. 1
9.7
9.1
8.6
10.5
33.4
37.8
42. 7
41.2
62.2
5 3 . 9
10.7
12. 2
$62.646
848,265
$59,496
$54,386
$67,669
$6(3.911
$68,278
$67.660
18
11
14
8
6 A 6.4
6.4
8.7
9.9
19.1
18.8
16.7
37.2
16.2
16.5
22.2
23.6
5.5
6.5
9.1
5.6
5.4
5.0
6.3
12
29
6.6
11.1
24
$69,365
$65,428
$70,802
$81,094
6.3
6.4
5.7
5.1
6.5
6.6
4.7
6.5
11.5 28.6
9.3 22.1
9.6 22.7
18.9 24.1
8.3
6.4
8.3
23.9
15.2
32,5
27.4
13.5
35.0
$61,332
$76,907
$63.565
13
40
20
3.0
4.8
7.7
7.0
7.3
5.3
9.0
4.9
10.6 22.5
8.8 12.6
7.8 19.9
$77.329
$68.170
$51,398
$86.891
$79,729
$68,279
$72,464
19.2
31.6
10.9
31.5
46.0
16.3
15.9 4.9
4.0
6.3
13.0
7.1
6.3
6.1
8.2
23.1
23.5
10.1 $75,165
7.2 4,4 5.6
11.1 22,0 $71,769 37
Post. Canadian Markets, 1994.
Whatever the reasons, the large number of
.
immigrants settling in York, in conjunction with
York has the highest percentage of residents
in the GTA with less than a Grade 9
education.
The unemployment rates for both males and
females in York is the highest in the GTA.
Yorks continuing role as a residential
community for industrial workers, has created
special challenges for Yorks municipal/
.
educational institutions, social agencies and
community groups.
The nature of those challenges can be inferred
YORK DEMONSTRATES
from a comparison of Yorks population
INNOVATIVE LOCAL
characteristics with those of other GTA
municipalities (Table 3.2):
GOVERNANCE
Average family income in the City of York in
York is responding simultaneously to severe
1991 was the second lowest in the GTA.
challenges to its economy and to its
cohesiveness as a community,
Only 3% of York families have incomes above
the national average.
These challenges stem from factors over which
the City of York has had virtually no control: its
Nearly 43% of York residents have a mother
geographic location within the GTA; the
tongue other than English and French.
movement to the suburbs of industries seeking
.
.
.
18 CITY OF YORK 9 5
more space, cheaper land or lower taxes;
federally-negotiated free trade agreements that
have led some local industries to relocate to the
United States and Mexico, others to cease
operations altogether; and federal immigration
policy.
Nonetheless the City of York, as a
community and as an administrative unit,
has responded with energy and imagination
in two ways:
B through collaborative efforts among City
departments, volunteer agencies and
members of the community; and,
B through actions taken by individual agencies.
i) Multi-Agency & Community-
Based Initiatives
.
B
Development of a mixed use City
Corporate and Residential Centre in the
geographic heart of the City linked to rapid
transit. Spearheaded by the Citys Planning
and Economic Development Department, and
involving other City agencies, businesses and
residents in a City Centre Working Committee
and a Transportation and Regulatory Task
Force, it will help York attract a larger share of
the service jobs that are becoming an
increasingly important component of the Metro
economy. It will also help strengthen the
Citys non-residential tax base.
Community Economic Development
Program based on recommendations made
by a Community Economic Development
Advisory Committee (CEDAC) that completed
its work in June, 1995, after a comprehensive
community consultation process. Described
as quietly developing Greater Torontos
most innovative and potentially most
effective economic development strategy
(Globe & Mail, Barber 1995), CEDACS 24
recommended action plans are based on four
strategic directions, or programs to: 1)
provide support to small local businesses; 2)
encourage businesses to stay in York and
attract new business; 3) develop effective use
of community resources by identifying
promising business niches, building on Yorks
multicultural nature and the links it provides to
international markets, and providing
appropriate training to community residents;
and, 4) foster ongoing consultation and
collaboration between the community and its
local government.
One of CEDACS early accomplishments was an
agreement among the City of York, the City of
Toronto and the Province of Ontario with the
potential of creating a two million dollar package
of incentives for the specialty food industry.
(City of York Community Economic
Development Advisory Committee 1995, 24-25).
.
.
.
The Learning Enrichment Foundation
(LEF), established 16 years ago to address
the educational and training needs of Yorks
population, was involved in the following
activities in 1995: 1 ) an employment
counseling centre that provides services in
more than twenty languages; 2) the York
Business Opportunities Centre and several
self-employment training programs to foster
self-employment and local job creation; 3) 15
day care centres and nursery programs for
more than 600 children of parents who work
or are in job training; 4) a variety of skill
training courses ranging in length from eight
hours to 26 weeks, as well as courses in
English as a Second Language for
newcomers to Canada. (The Learning
Enrichment Foundation 1995).
York Community Services (YCS), a
multidisciplinary, multi-service centre, headed
by a community board, provides York
residents with one-stop shopping for health,
legal and community services. YCS has
worked to develop programs that address the
needs of a wide range of cultural groups. For
example, it initiated the first program in Metro
for the Somali community, and has developed
close working relationships with the
Vietnamese and Tamil communities. With the
help of a large group of volunteers it provides
services in 17 languages.
The York Community and Agency Social
Planning Council (YCASP), one of Metros
newest Social Planning Councils, conducts
research on the Citys social characteristics,
which it publishes in an annual Community
Profile of the City of York; works with the City
and the United Way to train volunteers for
social agencies; operates a program to
combat racism among young children; works
CITY OF YORK 9 5
1 9
to improve relations between the police and
community youth; and brings together
community groups to plan and coordinate
services. A recent outcome of its coordination
role is the Program Without Walls, run by a
committee representing eight different mental
health agencies who are trying to eliminate
service overlaps (thereby cutting costs) while
ensuring that clients receive the type of
services they need.
ii) Initiatives Taken By City
Departments and Local
Government Agencies
Some of Yorks collaborative initiatives are
unique within Metro, while others have served
as models for other communities. The same
can be said for initiatives taken by City
departments to improve service, reduce costs,
or both.
.
.
.
.
The Works Department was the first in
Canada to adopt the inlet control
method of flood control Introduced in
Denmark, it allows storm water to be stored in
large underground tanks until the storm is
over and water can be released into the sewer
system at a controlled rate. This technique
solved a serious flooding problem much
earlier than if the City had constructed
separate storm sewers, and at considerable
savings. The method was subsequently
sanctioned by the Ministry of the Environment
for widespread use.
Yorks Works Department was the first in
Metro to introduce the Blue Box Recycling
Program.
Through innovative programs in the Sanitation
Division, the Works Department now has the
lowest solid waste collection costs in
Metropolitan Toronto.
The turnaround time for development
approvals through Yorks Planning &
Economic Development Department is
among the fastest in the GTA. Yorks size
allows for issues to be worked out with all
Departments and the community at an early
stage, before they become problems and
result in delay.
Yorks Planning & Economic Development
Department was one of the first in Canada
to fast-track
]
large development projects
by hiring outside planning consultants to
assist in their processing. Charging back
these costs to applicants resulted in savings
to the City of over $500,000 in 1992/1993.
The Economic Development Division has won
awards from the American Economic
Development Council, Economic Developers
Association of Canada and the Economic
Developers Council of Ontario. The 1995
Royal Bank Community Economic
Development Award was presented to the
City and its Community Economic
Development Advisory Committee (CEDAC)
for inovation, creating partnerships and results
Because of its small size and modest
budget, it has had to do more with less,
and has mobilized assistance from
hundreds of volunteers (e.g. CEDAC,
Humber College, business seminars, joint
trade show exhibits, etc.)
Yorks Legal Department was the first in the
GTA to obtain warrants to inspect for
occupancy zoning infractions, pursuant to
provincial Bill 120.
Yorks Animal Control Section opened the first
Wildlife Rehab and Transfer Station in Metro,
and took leadership in establishing a Metro-
wide database to share information on lost
and found animals. In addition, it opened the
first municipal low-cost sterilization clinic in
Canada and the first municipal rabies
vaccination clinic in Metro ; and was the first
animal shelter in Metro to provide the Board of
Education with animal patrols of school
property and educational programs for
students.
The Fire Departments response time is the
fastest in the Metropolitan Toronto area. Its
Policy and Operational Guidelines Manual,
including a Career Path Manual, is considered
innovative and progressive.
The Clerks Department reduced the cost of
running the Municipal Election from $430,000
to $225,000 in the last election.
The Health Units York Centre for Health is
Ontarios only drop-in health promotion
20 CITY OF YORK 9 5
B