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					A New Deal for Cities and Communities
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




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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




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    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




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Principles for Partnership
        Government of Canada                   Provincial/ Territorial Principles
                                           •   F/P/T agreements should respect P/T priorities and
•   Respect for jurisdiction                   ensure that projects or programs are subject to the
                                               P/T approval
•   Flexibility                            •   P/Ts will determine the appropriate type of
                                               consultation with their municipalities
•   Equity                                 •   Agreements and fiscal arrangements must be
•   Focus on long-term solutions           •
                                               transparent as regard to P/Ts
                                               Federal initiatives must be flexible and adaptable to
•   Transparent agreements and fiscal          P/T specific needs and conditions
                                           •   Federal initiatives that concern municipalities should
    arrangements                               be planned following agreement of P/Ts
                                           •   Federal funding for municipalities must be stable
•   Regular reporting to Canadians             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.




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Approach

• Outcomes-based
  – Lower Green House Gas emissions
  – Cleaner air
  – Cleaner water
• Focused investments for maximum results
• Environmentally Sustainable




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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



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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




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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


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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




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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.




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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.




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Measuring Progress
 Outcome         Outcome Indicator             Examples of medium or short term indicators for
                     (NRTEE)                           specific investment categories

Reduced         Total annual emission of    Public transit: Increased ridership per inhabitant in the
GHG             greenhouse gases or         catchment area
emissions       energy use per capita       Community Energy Systems: amount of energy produced
                                            (KwH) by community energy systems
                Average daily 8-hour        Water Infrastructure: additional litres of potable water; daily
Cleaner Air     maximum ozone               consumption; or access to potable water
                exposure as measure by      Wastewater Infrastructure: reduced water loss and use of
                the Air Quality Trend       chemical treatments; changes in effluent quality
                Indicator                   Solid Waste: reduction in tonnes of solid waste produced and
                                            solid waste recycled and composted
                Freshwater Quality          Local Roads and Bridges: improved fuel economy
Cleaner Water   indicator based on          Capacity Building: Canadian population living in
                CCME’s water quality        communities where a sustainability plan is in place and
                index                       implemented




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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.)


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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.



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