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
• 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


• 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
        •   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                   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.


• 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
 • 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
        • 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

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
    •   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             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


 • 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
    – 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.


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