OGRA/ROMA Annual Conference
Monday, February 26, 2007
Fairmont Royal York Hotel
Toronto, Ontario
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Good morning.
Thank you, Bill.
I am very pleased to be back at the OGRA/ROMA conference and to have another opportunity to meet with you. I know that Premier McGuinty and many of my cabinet colleagues are also looking forward to being here over the next few days.
My congratulations to those of you who are here for the first time having been elected in November. And, of course, my congratulations to those of you who were reelected.
From my own experience, I know how challenging and rewarding it can be to serve on municipal council. I also know the impact you have on building strong communities for the people of Ontario.
You will form the first cohort of municipal governments to serve four-year terms. I know many of you believe, as I do, that a longer term will improve your ability to serve your communities and make your governments stronger and more effective.
In fact, I was pleased to note that Peterborough Mayor, Paul Ayotte told The Examiner that the new four-year terms will give council more time to “realize the community vision.”
I would like to thank you for choosing public service. I hope the next four years are successful for you and your communities.
I would also like to take a minute to thank Tony Prevedel and O-G-R-A, ROMA and all of you who have contributed so much to the initiatives that our government has introduced over the past three years. Their input and counsel on each of these matters has been invaluable:
- Bill Vrebosch and Doug Thompson – are outstanding representatives for rural municipalities
- Roger Anderson and Doug Reycraft – have both been tremendous advocates for the municipal sector throughout the ministry’s consultations on planning reforms
- Lynn Balfour, vice president of the Ontario Building Officials Association, has served for the past year as co-chair of the Building Advisory Council providing valuable insight into implementation issues related to Ontario’s new building code
- Councillor Marguerite Ceschi-Smith from the City of Brantford, has been a tireless advocate for initiatives to support brownfield redevelopment serving on my ministry’s Brownfield Stakeholder Group and as co-chair of AMO’s Brownfield Task Force
- I would also like to thank the group of people who were involved in the Intergovernmental Action Plan (IGAP) exercise in Simcoe County – the mayors of the 16 lower tier municipalities, the mayors of Barrie and Orillia, and the Warden of Simcoe County. We know that you will collectively consider the information that was gathered through the various IGAP studies and apply that to make the best possible decisions for your residents. We look forward to seeing the progress you make together at the next stage of this growth management exercise.
We are three and a half years into our mandate.
It is a good time to review where we were three and a half years ago and where we are today.
Municipal Act, 2001
When we came into office three years ago, nowhere was the need for change greater than in the relationship between the province and municipalities.
Improving that relationship has been one of our top priorities. And, I think we have made a great deal of progress.
This relationship is now characterized by consultation, significant investments, cooperation and joint achievements.
We approach this relationship knowing that municipal governments are mature, responsible governments that are accountable to their residents. We made changes to the Municipal Act to reflect that understanding.
As a result, you now have more flexibility to make the best possible decisions for your communities.
New powers mean that you can—and are expected to—plan for the long term and be responsible for your futures.
Your new Municipal Act:
- Provides you with broad powers to pass bylaws to respond quickly to local issues
- Provides you with new authority to delegate legislative and quasi-judicial matters
- Provides a broader range of financial instruments for investment, and managing risk for debt financing purposes
- Allows more flexibility to use user fees, local improvement charges and area rating
- Provides improved enforcement abilities, such as right of entry, search warrants and fines.
We know you will take advantage of these new powers and act responsibly for your communities.
I know that you are working diligently to prepare for the sections of Bill 130 that have not yet been proclaimed.
Planning Act
Also as of January 1, our government’s reforms of the province’s planning system are in force. New planning tools and instruments give you more power to direct the kind of development you want for your communities. The reforms also provide greater certainty for all parties involved in the planning process.
You now have the power to determine through your official plans what information you require to make decisions—what constitutes a complete application.
Changes were also made to the rules for land use planning appeals to address key concerns and to enhance the municipal role. The OMB must now have regard for municipal councils’ decisions. In cases where new evidence is presented during appeals that may have affected council’s decision, the OMB can send the new information to council for further consideration and recommendation.
We also set time limits for appeals in cases where municipal councils refused a zoning bylaw amendment or official plan amendment. No longer can appeals of such municipal decisions be launched months or years after the decision was made by council.
Collectively, these reforms, and the host of others we made, arm you with greater power to make the best decisions for your communities.
Provincial-Municipal Fiscal and Service Delivery Review
We are aware that more needs to be done. We are aware of the many challenges you face and we are committed to working with you to find solutions.
As you know, Premier McGuinty announced the Provincial-Municipal Fiscal and Service Delivery Review at AMO’s conference in August.
The Review is examining how we, the province and municipalities, can best deliver and fund services for our communities.
Our goal is to work together to develop a sustainable approach for both municipal governments and the Province.
We are making good progress.
A table of elected provincial and municipal representatives is leading the Review.
The political table has met twice since municipalities selected their representatives following the elections in November.
I think the first two discussions were very fruitful. I have been very impressed with everyone’s approach. People have come to the table looking to find solutions. They are willing to work hard, honestly and cooperatively to come up with new ways of tackling these issues.
Minister Sorbara and I are joined on the political table by:
- Richard Adams, Mayor, Town of Parry Sound
- Roger Anderson, Chair, Region of Durham and AMO Immediate Past President
- Eddie Francis, Mayor, City of Windsor
- Peter Hume, Councillor, City of Ottawa
- Hazel McCallion, Mayor, City of Mississauga and AMO Past President
- David Miller, Mayor, City of Toronto
- Michael Power, Mayor, Town of Greenstone
- Doug Reycraft, Mayor, Municipality of Southwest Middlesex and AMO President
- Bob Sweet, Mayor, Town of Petawawa
I encourage you to seek out the panel members who are here over the next couple of days to get their observations of the process and hear more about their experiences so far.
We will be looking for your input, and that of others, at various points throughout the process.
At a staff level, the coordinating table, made up of senior municipal administrators from across the province, as well as provincial and AMO staff, has also been meeting on a regular basis.
We have established three working tables to analyze issues related specifically to service delivery accountability, infrastructure, and fiscal architecture and economic competitiveness.
As well, a team made up of municipal treasurers and other senior financial staff from municipalities and the province has begun work on a shared perspective on Municipal Fiscal Health.
We have established a Review website to keep you and members of the public informed on the Review’s progress. The site is hosted on the ministry’s website. You can reach the Review’s site through the Ministry of Municipal Affairs and Housing’s homepage.
The website is one of the ways that we are seeking input into the Review. Today we are launching a webpage seeking public engagement.
I invite you to visit the Review’s website regularly for up-to-date information.
Likewise, if residents in your communities are interested in learning more about the Review, or if they would like to share their ideas on solutions, please encourage them to visit the site.
As you know, we face a formidable challenge.
It will take some time to work through priority issues and come up with reasonable solutions, but I am confident that we will issue a consensus report in spring 2008 that will set the stage for a sustainable approach to service delivery and funding in this province.
Fiscal Imbalance
After all, we all want to deliver the best possible services for Ontarians.
It would be easier for all of us to do so, of course, if Ontario received its fair share of federal funding.
As you know, we have been fighting hard for fairness in Ontario.
Ontario gets $1.2 billion less over the life of six key federal infrastructure programs than we would if we received our per capita share.
Ontario also currently receives $1.1 billion less than its fair share for health care, postsecondary education, and social services than equalization-receiving provinces.
This is not a partisan issue. All three parties supported Ontario’s position through a unanimous resolution in Ontario’s legislature.
Leaders from across the province and from all sectors are standing with us. Several of them recently wrote to the federal finance minister calling for fairness.
To date, more than 120 municipalities have expressed support for Ontario’s position on the fiscal imbalance.
Even the federal government, in its fall fiscal update said transfers outside of Equalization should treat all Canadians equally, agreeing with Ontario’s position. The federal budget is the opportunity for the federal government to finally provide fairness to Canadians living in Ontario.
We appreciate your support. And, we will keep consulting with you as we continue this ongoing discussion with the federal government.
Municipal Investments
Let’s talk money …
Even with the significant financial challenges we face, one of our government’s top priorities has been to increase funding to municipalities.
- Ontario Municipal Partnership Fund (OMPF)
- We are investing $824 million in municipalities across the province in 2007—this represents a $206 million, or 33% increase over CRF payments in 2004
- COMRIF Intake Three
- Under Intake Three of COMRIF, the total federal-provincial investment was $93 million in 72 communities. Together with municipal contributions, the total Intake Three investment in local infrastructure improvements exceeds $139 million.
- In total for all three intakes, the governments of Ontario and Canada are each contributing up to $298 million. With municipal investments, this program will stimulate up to $900 million in capital investments over five years.
- We provided 428 municipalities, particularly rural and northern communities, with $400 million in new money for roads and bridges under the Move Ontario initiative
- We are providing $70 million in 2007 to support investments in local infrastructure in rural and small municipalities across Ontario
- The Ontario government, through Infrastructure Ontario's OSIFA loan program, has committed to provide more than 190 municipalities with up to $2.4 billion in affordable loans for more than 1,200 critical public infrastructure projects
- We gave municipalities a direct role in negotiating with the federal government on the transfer of federal gas tax revenues that resulted in $1.8 billion in funding over five years
- We are increasing the province’s share of public health funding to 75 per cent in 2007
- Between 2006 and 2008, we are investing an estimated $300 million to move towards a 50-50 cost sharing for municipal land ambulance services by 2008. This represented a $50 million increase in 2006 and an additional $50 million planned increase in funding to municipalities in 2007.
In 2005, municipalities received a total of $5.7 billion in transfers from the province. This is the highest level recorded in almost a decade and represents approximately $1.4 billion, or a 31% increase over 1999 levels, which was the first full year following implementation of Local Services Realignment.
I expect that total will increase significantly for 2006 given our government’s municipal investments over the past year in areas such as land ambulance, public health, infrastructure programs and the provincial gas tax program.
In short, our government has given unprecedented consideration to the needs of municipalities.
Affordable Housing
Affordable housing is an issue that I know is very important to many of you, as it is to our government.
We’ve made solid progress under the Canada-Ontario Affordable Housing Program. The program, delivered through a federal-provincial-municipal partnership, is worth more than $734 million, both for new housing and for housing allowances, available to both the private and non-profit sectors.
Of the 132 approved housing projects under the Affordable Housing Program, 50 of them are in rural municipalities.
Under the agreement, more than $46 million has been committed to build 1,400 units in rural municipalities across the province.
Of those 1,400 units, 538 are occupied, 718 are under construction and 144 are in the planning approval stage.
For example, we’re building:
- 24 units for seniors in Eganville;
- 24 units for families, seniors and people with disabilities in Paris; and
- 54 units in Woodstock and Ingersoll.
Together, we have rejuvenated affordable housing in Ontario. We continue to create new units and more is yet to come.
Rent Bank
We must also consider what we can do to make sure vulnerable people do not lose the housing they already have.
That is why we established the Rent Bank Program, investing $14 million in the program.
To date, this funding has helped almost 8,000 tenants avoid eviction when they have faced temporary financial setbacks resulting from illness, job loss or family emergencies.
I consider it money well-spent.
Short-term arrears is the most common reason tenants with lower incomes lose their housing and are forced into shelters.
Our Rent Bank Program helps to keep them in their homes as they deal with the crisis.
Legacy Savings
I know that you are under increasing pressure to fund capital repairs and operating costs for existing social housing in your communities.
As mortgages on social housing units are paid off, the federal government is accruing savings, what we call legacy savings, as its payments to the provinces and territories to cover these mortgages get smaller.
The federal government currently provides Ontario municipalities with $520 million per year for social housing. This amount is scheduled to decline to zero by the year 2032.
We invite you to join us in making the case to the federal government that we need continued funding to protect the social housing stock.
Brownfields
Over the past three years, I have visited almost every corner of this province. I can tell you that if there is one thing that most municipalities—large and small, urban and rural—have in common, it is brownfields.
Old gas stations, dry cleaners, feed mills—they’re part of our landscape.
These sites offer endless opportunities to stimulate economic development and create healthier, more vibrant communities.
One of our priorities has been to find new tools for you to use to tackle this issue.
I am very pleased with the enthusiasm we have seen from municipalities over the past couple of years to find ways to turn these sites into positive aspects of their communities.
The Village of Point Edward, the Township of Stirling-Rawdon and many other municipalities are developing new community improvement plans with financial incentives to stimulate redevelopment.
Municipalities are also taking advantage of the Brownfields Financial Tax Incentive Program.
However, issues related to liability and financing continue to be barriers to further redevelopment.
These are very challenging issues. We have talked to countless municipalities, developers, lawyers and other experts in the field. We also commissioned research to learn more about how liability issues are dealt with in other jurisdictions.
I think we are at a turning point now, having made real progress in the past few months.
In January we posted for comment on the EBR Registry a number of possible legislative reforms that would encourage brownfield redevelopment.
The EBR comment period closed two weeks ago. Ministry staff are now reviewing the comments we received and we will determine the most appropriate next steps shortly.
MAH Newsletter
Finally, let me tell you about a new initiative that we are launching to keep you, our municipal partners, and our stakeholders informed as to the latest ministry news and initiatives.
Next week we will issue the first of our new monthly ministry updates. We think this will be an important tool given the recent implementation of many new pieces of legislation.
If you are interested in receiving these updates, please visit MAH’s booth or subscribe on MAH’s website.
Conclusion
Again, let me tell you how much I, and our government, have appreciated your input on all of these initiatives.
Together, we have achieved a great deal, but we all know there is still more to be done. I look forward to your continued input and partnership as we continue to strengthen Ontario’s municipalities.
The new partnership between the province and municipalities is an exciting platform from which to tackle the issues we face.
I wish you a successful conference.
