The release of the 2006 census information this week had few surprises. It recorded that most Canadians live in cities, and one-quarter live in the Golden Horseshoe around Toronto in southern Ontario. Greater Sudbury's population grew by about 3,000 people in five years after a decade of out-migration.
Bigger cities mean bigger bills. Expanding cities need to
invest in infrastructure (hard services), as well as constantly
repairing existing systems. They need better public transit.
They need more recreation facilities. And larger cities have
larger social problems (soft services).
Cities have always had to stretch budgets to pay for hard
services, but since the mid-1990s they have also had to pay for
soft services that were downloaded to Ontario cities by the
Harris government.
The Association for Municipalities of Ontario estimates
municipalities are now paying $32 million for social programs.
The association argues property tax was never designed to cover
these expenses.
Greater Sudbury council recently had to attempt to stretch
property taxes to cover the costs for 2007. But there is little
fat and no cash for things that enhance quality of life, such
as an arts centre and more recreation facilities.
The mayor of Toronto, David Miller, thinks he has a solution to
the problem of funding cash-strapped cities.
The federal government has promised to cut the GST one more
cent from six percent to five percent. Miller says that instead
cutting the GST, one cent more of that penny should be given to
cities. It amounts to $5.5 billion. (The six cents of GST
Ottawa collects on every dollar spent brings in $30 billion
annually).
Miller unveiled his One Cent Now campaign at the recent Toronto
Summit.
The money returned to each city would be based on each
community's gross domestic product. It would mean about $410
million for the City of Toronto; $43 million for Victoria; $47
million for Halifax; and at least a couple of cool million
dollars for Greater Sudbury.
Miller when announcing the campaign Feb. 26, he said, "While I
speak for Toronto, this will be a nation-wide effort.
In the near future, the One Cent Now campaign will be coming to a municipality near you. It enjoys the full support of the Big City Mayors Caucus and many other municipal leaders. The reason is simple. It provides a fairer, more rational and more ambitious vision of our country. A vision that makes proper room for urban centres where over 80 percent of our families dwell and where so much of our economic activity is created."
Miller has set up a $100,000 marketing campaign to sell the
idea to Canadians and municipal politicians throughout the
country. (The website is
www.onecentnow.ca
.)
The One Cent program would use tax money Canadians are already
paying. Given the rising price of gasoline and all products
that are shipped to market, reducing the GST from seven to six
percent almost a year ago has done little to stimulate the
economy. Although, it has been estimated that consumers who
purchased new cars priced at $26,737 saved $267.37 in GST.
While there is nothing wrong with consumers spending their
"extra" cash on a dishwasher built in China, the money put in
the hands of cities would be used to build better transit
systems, improve programs for the poor and elderly, and help
cities with greening efforts.
Sudbury rookie Councillor Joe Cimino plans to put the One Cent
campaign on the agenda at a future priorities meeting.
"I like the idea," he said. "There is a gap between property
tax and what the city needs to run it."
Councillor Doug Craig said he thinks the idea is an excellent
one. "The term cash-strapped cities is not a cliché, it is a
reality."
He would welcome getting the GST "rebate," if it came with no
restrictions and each city could spend it on the things it
needs.
Councillor Ron Dupuis also thinks the One Cent plan has merit.
"The feds are getting huge surpluses and they are doing this
off the backs of municipalities.
"Local governments are struggling with tax increases and trying
to comply with many regulations imposed on them for things such
as water and wastewater. We have a long way to go and the
important thing is that we seem to be getting less resistance
from the feds and province which is encouraging."
The Ontario government has undertaken a "provincial-municipal
fiscal and service delivery review," a look at who pays for
what expected next year.
In the meantime, city politicians are hoping for some relief in
the March 19 federal budget and the March 22 provincial
budget.
With federal and provincial elections looming, this is a good
year to get serious about cities.
Vicki Gilhula is the managing editor of Northern Life.
