A New Deal for Cities and Communities

A New Deal for Cities and Communities

2 www.infrastructure.gc.ca

The New Deal for Cities and Communities

• The New Deal represents a collaborative way of doing business that is respectful of jurisdictions

• It is based on a shared vision of sustainable communities including environmental, cultural, social and economic elements

• National priorities play out in cities and communities and require all governments working together – climate change, clean air and water, immigrant settlement and

affordable housing


Approach

• Partnerships between governments to achieve shared outcomes. Specifically, entering into an agreement that will outline:

–the use of gas tax funds

–areas for further collaboration on the shared priorities to achieve all four elements of sustainability


Implementation Strategy

• Federal-Provincial/Territorial agreements that set out a framework for the use of the gas-tax funds. Agreements could outline:

• Purpose and Principles

• Use of funds

• Commitments and contributions

• Allocation formulae

• Accountability and reporting

• Existing or potential agreements on other common objectives

• New mechanisms for better cooperation and collaboration


Principles for Partnership

Government of Canada

• Respect for jurisdiction

• Flexibility

• Equity

• Focus on long-term solutions

• Transparent agreements and fiscal arrangements

• Regular reporting to Canadians

Provincial/ Territorial Principles• F/P/T agreements should respect P/T priorities and

ensure that projects or programs are subject to the P/T approval

• P/Ts will determine the appropriate type of consultation with their municipalities

• Agreements and fiscal arrangements must be transparent as regard to P/Ts

• Federal initiatives must be flexible and adaptable to P/T specific needs and conditions

• Federal initiatives that concern municipalities should be planned following agreement of P/Ts

• Federal funding for municipalities must be stable and on-going to achieve long term solutions

• P/Ts and municipalities will not be expected to sustain initiatives over the long term without funding

• Federal initiatives will not pressure P/Ts to divert resources from P/T priorities

• Federal initiatives will not create expectations of new revenues from P/Ts to municipalities

• Federal initiatives relating to municipalities will be available to all P/Ts.


Approach

• Outcomes-based– Lower Green House Gas emissions

– Cleaner air

– Cleaner water

• Focused investments for maximum results• Environmentally Sustainable


Gas Tax Investments: ESMI

• Capital expenditures related to environmentally sustainable municipal infrastructure (ESMI) which:– improve the quality of the environment and contribute to reduced

GHG emissions, to clean water or air; and,

– fall into one of the following investment categories:• Public transit

• Community energy systems

• Water and wastewater

• Solid waste management

• Capacity building

• Roads and bridges


Federal Financial Commitment

• $5 billion over 5 years

• $2 billion in year five

• These funds are net new federal funding

• For your P/T it represents ($M) :

NL PEI NS NB QC ON MB SK AB BC YK NWT NU FN

$5B 82.3 37.5 145.2 116.1 1151.0 1865.5 167.3 147.7 476.9 635.6 37.5 37.5 37.5 62.5

$2B 32.9 15.0 58.1 46.4 460.4 746.2 66.9 59.1 190.8 254.2 15.0 15.0 15.0 25.0


Agreement Parameters

• Net incremental spending on municipal infrastructure on the part of all three jurisdictions (i.e. no clawback or displacement)

• Appropriate integrated sustainability plans by municipalities or other regional groupings to reinforce provincial/territorial environmental priorities

• Municipal perspective, consistent with provincial/ territorial principles, to be reflected

• Generally agreed upon administration and reporting on the use of funds and results achieved

• Renewal process will begin with a federal-provincial/territorial bilateral evaluation of the gas tax funds and a summative national evaluation by the GOC in the 4th year


P/T Contributions

• Provincial/ territorial support could take alternatives forms – New provincial/territorial funding

– Supportive and enabling legislative or regulatory changes

– In-kind contributions such as demand management strategies including

• user fees

• enhanced cost recovery for water and waste treatment infrastructure

• use of “smart” technology e.g. metering

– Capacity building initiatives and support to municipalities/regions to prepare integrated sustainability plans


Flowing the Funds

• Flexibility on intra-jurisdictional allocation of gas tax funds consistent with:

– Equity: all municipalities, large and small, are eligible to benefit from funding

– Transparency: allocation decisions are easily understood by municipalities and are clearly communicated to them

• Trigger to flow federal funding to municipalities to be included in the federal-provincial/territorial bilateral agreements.


Accountability and Reporting:

• Bilateral agreements to identify an appropriate accountability framework for the management of expenditures, including audit and evaluation provisions, and consequences of non-compliance.

• Reporting mechanism to be included in the bilateral agreement:• An annual expenditure report detailing the use of federal funds (gas tax, GST

rebate)

• No later than at year 3 of the bilateral agreement, P/Ts agree to report on the outputs and outcomes. Possibility of using existing provincial/ territorial reporting mechanisms

• The GOC to consolidate jurisdictional activity reports in its Canada’s Annual Performance Report. Other forms of federal reporting to Canadians could also be considered.


Measuring Progress

Outcome Outcome Indicator

(NRTEE)

Examples of medium or short term indicators for specific investment categories

Reduced GHG emissions

Cleaner Air

Cleaner Water

Total annual emission of greenhouse gases or energy use per capita

Average daily 8-hour maximum ozone exposure as measure by the Air Quality Trend Indicator

Freshwater Quality indicator based on CCME’s water quality index

Public transit: Increased ridership per inhabitant in the catchment area

Community Energy Systems: amount of energy produced (KwH) by community energy systems

Water Infrastructure: additional litres of potable water; daily consumption; or access to potable water

Wastewater Infrastructure: reduced water loss and use of chemical treatments; changes in effluent quality

Solid Waste: reduction in tonnes of solid waste produced and solid waste recycled and composted

Local Roads and Bridges: improved fuel economy

Capacity Building: Canadian population living in communities where a sustainability plan is in place and implemented


Communications

• A Communications Protocol will be included in each bilateral agreement, featuring:– Communications around the signing of the bilateral agreement

– Involvement of all orders of government in proactive announcements on funding decisions, acknowledging federal role (MPs)

– Branding of the New Deal (GST rebate, gas tax and beyond)

– Clear identification of GoC gas tax investments

– Public reporting of outcomes

– Access to information

– Protocol for future activities (trilateral agreements, etc.)


Other Elements of the New Deal

• Other elements that improve coherence, integration and harmonization of government planning, policy outcomes and program and service delivery in cities and communities.

• Bilateral and trilateral agreements that identify specific areas of collaboration on other elements of the New Deal.

Documents

A New Deal for Cities and Communities