The Federation of Canadian Municipalities’ (FCM) hosted a Big City Mayors’ Caucus (BCMC) meeting on February 6, 2020 in Ottawa. Typically, the BCMC winter meeting is strategically planned to influence the federal budget cycle. This meeting in particular, was significant as it was the first BCMC meeting since the federal minority government’s election and new mandate that continues to stress the importance of direct relationships with municipalities.
The primary 2020 budget themes put forward by the federal government are fighting climate change, growing the economy and strengthening the middle class, reconciliation and the health and safety of Canadians. Many of these priorities resonate and are consistent with FCM budget priorities, which focus on public transit, housing affordability and climate action.
Policy/Strategic Implications
It is important strategically to align with municipalities across Canada to ensure a unified, strong and consistent message to other orders of government regarding municipal priorities. It is equally important to collaborate with the provincial and federal governments to create an awareness and understanding of the importance of the role of municipalities and the partnership opportunities created by working together.
There are no financial, environmental, risk/legal or other implications or considerations.
None with respect to this report.
None with respect to this report.
Due to the results of the recent federal election that spoke volumes in terms of the disconnect felt by many western Canadians, FCM created the Western Economic Solutions Taskforce (WEST), of which western BCMC mayors are members. The purpose of WEST is to find solutions to the economic uncertainty facing western communities, while bringing those voices and priorities to the federal government.
Although the mandated work of the WEST is not yet complete, the four areas being explored to date include:
• Addressing barriers to getting resources and products to market;
• Energy development, climate policy and regulation;
• Supporting communities to diversify economies; and,
• Municipal infrastructure and fiscal sustainability.
The WEST continues to meet with senior federal officials to explore solutions, which will likely include budgetary asks. The WEST will provide a report on its outcomes at the FCM Annual Convention in June 2020.
Other objectives and discussions from the BCMC meeting include:
The importance of modernizing the federal – municipal relationship. A modernized federal – municipal relationship includes the following principles:
• The federal government looks to municipalities as partners in national projects;
• Cities have greater control over local initiatives, such as infrastructure and public transit; and,
• Support for municipal priorities is predictable, stable and permanent.
The Right Honourable Justin Trudeau, Prime Minister of Canada, Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Intergovernmental Affairs, Honourable Bill Morneau, Minister of Finance, Honourable Catherine McKenna, Minister of Infrastructure, and the Honourable Ahmed Hussen, Minister of Families, Children and Social Development attended portions of the meeting. All ministers expressed appreciation for the work being done by mayors across Canada and for the direct and open relationships between mayors and the federal government.
In addition, although no financial commitments could be made at this time, the ministers acknowledge and support the BCMC priorities, those being infrastructure (transit, green and recreational), housing, and measures necessary to mitigate the effects of climate change. An important priority for municipalities and mayors was the immediate need for project approval and funding through the Investing in Canada’s Infrastructure Plan (ICIP). This remains part of a broader discussion between the federal and provincial governments. However, municipalities are ready to begin construction on important infrastructure projects and do not want to miss the 2020 building season.
BCMC Priorities:
Permanent Transit Funding:
Through the ICIP Public Transit Stream, $23.2 billion over a 10-year period will be invested in transit projects. However, many public transit projects are complex, requiring years of planning, consultation and construction. In addition, municipalities are looking for a commitment for new funding that will enable rapid adoption of zero-emission transit vehicles.
As such, FCM is calling on the federal government to maintain the current annual rate of investment under the ICIP plan through a permanent, direct funding mechanism and to commit to an additional $34 billion for the decade following the expiry of the ICIP in 2027-28.
Key Facts:
• $3 billion in economic growth is generated per every $1 billion invested in transit.
• $15 billion is the annual cost of productivity lost to traffic congestion nationally.
• 20 per cent increase in transit ridership between 2007 and 2017.
• 60 per cent greenhouse gas (GHG) reduction between private vehicles and transit.
Housing Affordability:
The growing challenge of affordable, safe and secure housing is a top priority for municipalities across the country. Finding practical solutions to the disconnect between rents, home prices and income levels requires partnerships between the federal, provincial and municipal governments and other private-sector and industry stakeholders.
Although in Saskatchewan, the responsibility for housing does not reside with the municipal government, cities understand that safe, secure and affordable housing is the underpinning to healthy, vibrant, growing communities.
Although the National Housing Strategy is important in tackling these challenges, more must be done to solve this growing challenge. Specifically, FCM is calling for increased investment in supportive housing for people experiencing or at risk of experiencing homelessness and social/affordable housing for Indigenous households residing in cities. Additionally, a new forum comprised of all orders of government is suggested to collaboratively tackle the housing affordability crisis.
Key Facts:
• Canada is experiencing its lowest rental vacancy rate in 17 years at 2.2 percent. Low vacancy rates push rental levels upwards.
• Between 2018 and 2019, rents increased on average by 4.1 per cent, well above the rate of inflation.
Climate Adaptation:
Now more than ever, municipalities are faced with weather extremes that destroy homes and businesses, more frequent floods, wildfires and other disasters. As municipalities own and operate approximately 60 per cent of the public infrastructure residents relay on daily, communities are on the front lines of climate adaptation and mitigation. Addressing these risks by retrofitting infrastructure puts additional financial strain on municipalities.
The federal government, through the Disaster Mitigation and Adaptation Fund, has committed $2 billion for climate change adaptation and mitigation strategies over 10 years. Although this funding is significant, funding applications generated requests for more than $6 billion. As such, to ensure that the most impactful projects are supported, including those related to natural infrastructure, this funding commitment needs to be reviewed and re-evaluated.
Key Facts:
• Property damage from natural disasters and extreme weather events averaged $405 million per year between 1983 and 2008 but have risen dramatically to $1.8 billion in 2018.
• The return on investment of climate change adaptation measures is generally found to be about 1:6, where for every dollar invested, there was an estimated $6 in avoided costs.
The October 2019 federal election results demonstrated the political tension and unease that exists across the country. However, it also provided municipalities with the opportunity to move beyond the election results and demonstrate the willingness and commitment to deliver solutions to local, provincial and national challenges. Especially meaningful has been the direct, relevant engagement between federal ministers and western Canadian mayors, demonstrating the significance of the voices and priorities of western provinces.
There is no delegated authority associated with this report as it is for informational purposes only.
Respectfully submitted, 
| Respectfully submitted, 
|
Sheila Harmatiuk Chief of Staff to the Mayor | Michael Fougere Mayor |
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