New research calls for more integrated financial and land-use planning for sustainable urban growth in Ontario municipalities.Canadian Business Journal

TORONTO, OCTOBER 18, 2022 (GLOBE NEWSWIRE) — NEW REPORT BY THE GREENBELT FOUNDATION Local Government Finance and Growth Plans in the Greater Golden Horseshoe, examines how finance and land management are intertwined and need to support each other to create a sustainable growth model for Ontario’s municipalities. Findings show that more efficient and integrated planning is needed to ensure that local governments generate revenue to meet the financial needs of new development and infrastructure projects.

According to the Ontario Office of Financial Accountability, the province’s municipal infrastructure backlog in 2020 is estimated at $52 billion. , on growth management goals. This study is to analyze the impact on Ontario’s municipal government financial system, decision-making on the Greater Golden Horseshoe (GGH) growth plan, and to provide recommendations on how to reform processes to align with goals. was carried out on

“Major investments are needed, as well as growth in Ontario’s population and economy, to provide the municipal infrastructure and services needed to meet the demand for affordable housing. , seeks to highlight where stronger links between local government finances and growth goals can result in more sustainable cities and communities that can thrive while providing a high quality of life for their residents.”

As part of this study, nine municipalities were examined: Halton Hills, Halton Region, Caledon, Peel Region, Waterloo, Waterloo Region, Markham, York Region, and Hamilton. A panel of experts, consisting of academics, agricultural associations, development industries, homebuilder associations, environmental groups, and state and local government staff in finance and land use planning, was involved to explore tools and processes in four categories. did. The report provides insight into how some local governments are implementing their strategies in innovative and cost-saving ways and shares recommendations for further efficiency.

1. Integrated Growth Plan: Planning procedures, infrastructure planning, and financial considerations should be integrated into a long-term approach to growth management decisions.

Example: The Peel Region adopted a new approach in 2014, and by the end of 2020, better integration of plans reduced infrastructure debt by $584 million compared to 2015 projections.

2. Development cost: These will help us meet our prudent growth goals by better reflecting the true costs of development to promote consolidation and multi-purpose development.

Example: Kitchener uses a two-zone system with different rates for suburban areas and intensified zones in more established parts of the city. The difference in fees is substantial, and this system is seen as more equitable than the municipal-wide approach, so it is supported by the development industry.

3. Property tax: There is an opportunity to use the property tax system to strengthen growth practices. For example, applying the same tax rate to multifamily and low-density properties, eliminating tax breaks for vacant properties, and instead offering discounts in areas designated for concentration.

Example: London has its own Community Improvement Plan (CIP) program that combines tax increases and development subsidies. The Downtown CIP was established in 1995 to stimulate investment, increase the supply of residential units and ensure a viable downtown population.

4. Usage fee: User fees can create a more reliable source of revenue for local governments to pay for infrastructure services, encouraging sensible growth outcomes.

Example: In 2016, Mississauga implemented a stormwater fee based on the total roof area of ​​the property. This fee covers the full cost of operating and maintaining the city’s stormwater management system, discourages inefficient land use, and rewards on-site management to reduce stormwater runoff.

The report includes key recommendations for government at both the state and city levels, including legislative changes, updates to state training modules and guidebooks, and continued improvements to municipal guidelines and capacity building. increase. While the report offers a number of suggestions, it turns out that there is no silver bullet. Solutions must work together for cumulative impact.

The GGH region is expected to grow to about 15 million residents by 2051, and billions of dollars will be spent on creating and maintaining municipal infrastructure. The report’s recommendations may reduce costs for state and municipal governments and support the building of more complete communities within the region.

Click here to read the full report. Click here for background with detailed information.

additional quotes

“Contrary to popular opinion, growth does not match the growth of GGH, especially given the long-term financial obligations to operate, maintain, and refurbish the infrastructure that accompanies growth. A compact and complete community. One of the best ways to ensure financial sustainability is that the growth that is taking place today is generally more efficient, not only from a land use but also from a long-term financial perspective. It is to better integrate financial considerations into management decisions.”

Ray Tomalty, Consultant at Smart Cities Research

“The choices we make in managing urban growth will have a lasting impact on our common future. It provides insight into the need to find ways to integrate finance, infrastructure and land use planning.”

Bill Hughes, Senior Fellow, Institute on Local Government Finance and Governance

“One of the keys to enabling local governments to meet the challenges of climate change, housing affordability and sustainability is to ensure that all aspects of the various programs run by local governments are all moving in the same direction. The Greenbelt Foundation’s Local Government Finance Reports provide appropriate and thoughtful recommendations through which to link local government financial measures and land-use planning objectives. provides a toolbox that local governments can use as they work to meet these challenges.”

Kevin Evey former director, Planning and development, waterloo area

About the Greenbelt Foundation

The Greenbelt Foundation is a charitable organization dedicated to ensuring the Greenbelt is enduring, protected and thriving. We will make the right investments in interconnected natural, agricultural and economic systems to ensure a working and thriving greenbelt for all. Ontario’s Greenbelt is one of the world’s largest greenbelts, with over 2 million acres of farmland, forests, wetlands and rivers working together to provide clean air, fresh water and reliable local food sources.

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