Towards a New Relationship with the Federal Government

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Towards a New Relationship with the Federal
Government

• Presentation by the City of Toronto to the Prime
  Ministers Caucus Task Force on Urban Issues

October 10, 2001
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Four Key Messages

• Recognize municipal government
• Consult with municipal governments
• Collaborate with municipal governments
• Fund urban infrastructure

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Increasing Importance of Urban AreasCanadas
Changing Urban/Rural Balance
1871 20 urban
2001 80 urban
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Cities are the Wealth of NationsGDP - 2000
(1992 Factor Cost)
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Education Attainment Benchmarks
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Labour Force CompositionEducation Attainment
1990-98
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The Toronto region has a diverse number of
competitive industry clusters
Aerospace Apparel Automotive Biomedical Business
Professional Services Financial Services Food
Beverages I T T Media Tourism
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International Business Costs
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But Toronto, Canada is at a Crossroads
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Toronto Faces a Serious Investment Gap
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Who can afford to invest?
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Comparison of Revenue SourcesCity of Toronto
versus Large US Cities
Total 38 Largest US Cities
Toronto
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Sustainable Development

• Healthy and competitive cities mean a healthy
  and competitive Canada. Must recognize that
  sustainable has several dimensions
• environment
• social
• economic
• fiscal

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What Are The Issues ?

• Infrastructure
• Urban Transit
• Housing
• Children Seniors
• Immigration Refugees
• Urban Competitiveness

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Infrastructure Issues
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Canada-Ontario Infrastructure Agreement

• City has concerns with the current infrastructure
  agreement in Ontario
• No municipal participation in program design
• Province has too much control
• Delay in program implementation (applications are
  not even available)
• Agreement is not being honoured (Federal
  priorities not reflected)

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What the Federal Government Can Do about
Infrastructure

• Ongoing federal investment
• Involve municipalities at all stages
• Ensure fair share for Toronto

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Urban Transit Issues
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We Must Invest in Urban Transit
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Transit Investment is Consistent with Federal
Policy Objectives

• Will help meet Canadas Kyoto targets
• Reduce health impacts of air pollution
• improved access to transit for people without
  cars helps reduce poverty

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What the Federal Government Can Do About Urban
Transit

• 3 cents per litre gas tax for transportation
• No tax on fuel for transit systems
• No tax on employer-provided transit benefits
• Locate federal facilities in transit-friendly
  locations

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Housing Issues
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Urban Housing Issues are Federal Issues Too

• Manage changing market/investment conditions
• Housing demand due to migration from Canada and
  abroad (issues go beyond City boundaries)
• Children -- conditions for healthy development
• Seniors -- OAS/GIS consumed by rising rents
• Immigrants -- 80 rent, essential for settlement
• Aboriginals -- prevent homelessness

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Government Role Needed in Housing

• Structuring the market -- e.g. taxes re rental
  investment mortgage insurance
• Market cannot serve low-income demand
• Healthy communities -- avoid slums, ensure
  dignity in old age, decent family housing
• Avoidance of other costs for emergency shelters,
  childrens aid, youth issues, etc.

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Federal recognition of Nation-Wide Housing Issues

• Tight rental housing markets nation-wide, and
  rising homelessness
• Federal government has started responding
• Supporting Communities Partnership Initiative
  (SCPI) -- homelessness funding
• Proposed affordable rental housing program
• Recognizing issues re business/tax climate

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Torontos Housing Market

• Severe shortage of affordable rental housing
• Waiting list 60,000 households and rising
• GTA needs 8,000 new rental units each year
• Toronto needs 4,000 new units each year
  (including 2,000 at below-market rents)
• Social housing download -- long-term cost
  pressures from gradual loss of federal funds

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Homelessness is a Growing Problem

• Despite strong economic growth 1997-2000,
  homelessness has been getting worse
• Family shelter usage continues to rise -- 2,000
  beds nightly in 2001

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Need for Long-term Solutions/Partnership

• City is enhancing shelters services for
  homeless -- SCPI funds are helping
• City has 650 housing units in development via
  Lets Build SCPI -- more to follow
• Long stays in shelters show need for a housing
  solution not emergency response
• City cannot go it alone, needs partnership

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What the Federal Government Can Do About Housing

• Five elements of a Federal Partnership
• 1. Action with provinces on new affordable rental
  housing program
• 2. Reform the CMHC and taxation framework for
  rental development
• 
  . . . .

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What the Federal Government Can Do About Housing

• Five elements of a Federal Partnership
• . . . .
• 3. Sustainable partnership on homelessness
• 4. Public housing capital repairs/ regeneration
• 5. Maintain federal housing funding in the long
  term -- reverse the planned withdrawal

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Childrens Issues
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Need to Invest in Our Children

• Toronto is home to
• 69 of GTA families below the poverty line
• 45 of GTA children and 66 of GTA children in
  poverty
• 62 of GTA lone parent families
• 75 of GTA households on social assistance
• 78 of GTA youth living on their own

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Child Care in Toronto

• Provincial government wont use ECDI funds for
  child care
• No growth in licensed child care
• 17,000 on waiting list for subsidized child care

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What the Federal Government Can Do For Children

• Enter into a federal/municipal partnership that
• flows federal funds directly to the City to meet
  common goals
• recognizes municipal governments as first line
  of response to community need
• endorses importance of high quality child care

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What the Federal Government Can Do For Children

• Insist that Ontario honour the spirit of ECDI by
• investing federal funds in all four areas of ECDI
• using federal funds to expand services to
  children (not to replace previously announced
  provincial spending)

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Immigration and Refugee Issues
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Immigration is an Urban Phenomenon

• 75 of immigrants live in Canadas three largest
  urban regions
• Toronto region receives almost half of all
  newcomers to Canada
• accounts for 85 of GTA population growth
• Impact on City services - e.g. public health,
  ethnic race relations
• about 800 refugee claimants in City shelters

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We Share a Common Goal

• Integration into Canadian society means
  integration into a local community
• Municipal policies and services support
  integration

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Municipal Role in Immigration Policy and Programs

• Immigration impacts at local level
• Success of national policy depends on local
  programs and public services
• Cities belong at the immigrant settlement policy
  table

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Impact of Federal Immigration Policies on Local
Service Costs

• Income support
• Emergency shelter
• Public health

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What the Federal Government Can Do For Immigrants

• 1. Consult directly with municipal governments
• 2. Provide fair, adequate funding for settlement
  services

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What the Federal Government Can Do For Immigrants

• 3. Reimburse Toronto for specific shelter, income
  support and public health costs
• 4. Resolve access too professions and trades

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Urban Competitiveness
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Urban Competitiveness

• Toronto is Canadas global business address
• Quality of life and quality of place are critical
  to attracting investment, job creation, and an
  international image.

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What the Federal Government Can Do For
Competitiveness

• Position Toronto Canada to succeed
• Support High Growth Industry Clusters
• Research Development
• Technology Transfer
• Skills Development
• Develop Arts Culture - Creative Industries
• International Marketing Branding

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In Conclusion.
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Canada Needs Sustainable Cities that have

• clean air and water
• effective, efficient transportation systems
• affordable, accessible community services
• affordable housing
• respect for diversity
• protected natural spaces
• employment opportunities for all ages abilities

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Towards a National Urban Agenda

• The federal government must
• Recognize municipal government
• Consult with municipal governments
• Collaborate with municipal governments
• Fund urban infrastructure

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www.city.toronto.on.ca(416) 338-0338