SEEING THE BIG PICTURE: AMCTO PRE-BUDGET PRESENTATION TO THE STANDING COMMITTEE ON FINANCE AND ECONOMIC AFFAIRS

AMCTO | BACKGROUND

• 2,200 members located in almost every municipality in Ontario

• Ontario’s largest voluntary association of local government professionals

• Dedicated to providing management and leadership services to local government professionals through learning opportunities, member support, and legislative advocacy

• Work in partnership with AMO and many other municipal associations

AMCTO | MEMBERSHIP BREAKDOWN

CAOs, 13%

Managers (various dep'ts), 33%Finance, 23%

Legislative Services, 31%

PRINCIPLES FOR AN EFFECTIVE PROVINCIAL-MUNICIPAL RELATIONSHIP

1. Respect for municipal diversity

2. Treating municipalities as responsible orders of government

3. Legislating outcomes and not behaviours

RECOMMENDATION 1 | Take the lead on a regulatory approach for the sharing economy

• Sharing economy companies, like Uber and AirBnB, have grown to become dominant forces in our economy

• 45% of Canadians are willing to rent their belongings to others, and 42 percent are willing to rent from others

• Uber operates in 67 countries and over 371 and cities

• AirBnB has more than 2 million listings in over 34,000 cities, in 190 countries

RECOMMENDATION 1 | Take the lead on a regulatory approach for the sharing economy

28%

22%

17%

12%

72%

74%

76%

80%

0%

4%

6%

8%

December (2015)

July (2015)

April (2015)

November (2014)

Never heard of Uber No Yes

Uber Use in Toronto November 2014—December 2015 (Have you used the Uber ride sharing mobile app?)

Source: Forum Research Inc., “Uber use continues to climb; satisfaction high,” December 29, 2015

RECOMMENDATION 1 | Take the lead on a regulatory approach for the sharing economy

Public Preferences on How to Regulate Uber (Which of the following is the best solution to this dispute?)

Source: Forum Research Inc., “Uber use continues to climb; satisfaction high,” December 29, 2015

7%

30%

34%

17%

7% 6%

Banning Uber Regulating Uber just like taxis are regulated now

Loosening regulations for taxis to compete with Uber

Deregulating the taxi industry Something else Don't know

RECOMMENDATION 2 | Continue to invest in infrastructure

• The infrastructure deficit is perhaps the most significant fiscal pressure facing municipalities

• Local governments in Ontario own more infrastructure than any other level of government, including more than 140,000 kilometres of roads, and 15,000 bridges and large culverts

• 2016 Canadian Infrastructure Report Card found that 1/3 of municipally-owned infrastructure in Canada is at risk of rapid deterioration

• In 2008 the infrastructure deficit was estimated to be approximately $60 billion, not including parks and recreation facilities or social housing units, which were valued at an additional $40 billion

RECOMMENDATION 2 | Continue to invest in infrastructure

Federal, Provincial, and Municipal Asset Ownership, 1961—2005 (excluding provincially-owned infrastructure dedicated to education and healthcare)

Source: Association of Municipalities Ontario (AMO), What’s Next Ontario? Imagining a prosperous future for our communities, 2015, 23

38%

67%

31%

22%

31%

10%

1961 2005

LocalProvincial Federal

RECOMMENDATION 3 | Modernize and streamline regulation and provincial reporting

• Local government’s in Ontario are drowning in regulation and unnecessary reporting

• More than 70 pieces of provincial legislation that affect the municipal sector – countless regulations

• Municipalities are responsible for a variety of cumbersome reporting requirements, like financial reporting, performance measurement, compliance reporting for fiscal transfers and conditional grants, and audits and evaluations of provincially mandated programs

• Digital technology and open data, and smart regulation provide potential opportunities to lessen the reporting and regulatory burden for municipalities

RECOMMENDATION 4 | Invest in capacity building and succession planning in rural, remote and northern municipalities

• Northern, rural and remote municipalities face an additional challenge of attracting and maintaining qualified municipal staff

• Demographic changes more significant for the public sector

• Retirements offer exciting opportunities for new professionals to enter the sector, but also result in a loss of accumulated knowledge, expertise, and experience

• AMCTO has prioritized this work through the Municipal Management Internship Program and the ONWARD initiative

RECOMMENDATION 4 | Invest in capacity building and succession planning in rural, remote, and northern municipalities

Projected Municipal Staff Retirements (How long do you have until your anticipated retirement date?)

Source: AMCTO, State of the Membership Survey, 2015

8%

21%

19% 18%

12%

19%

Less than 2 years

2-5 years 6-10 years 11-15 years 16-20 years More than 20 years

RECOMMENDATION 4 | Invest in capacity building and succession planning in rural, remote, and northern municipalities

Projected Municipal Staff Retirements (How long do you have until your anticipated retirement date?)

Source: AMCTO, State of the Membership Survey, 2015

8%

21%

19%

18%

12%

19%

9%

24%

17%

22%

14%

13%

Less  than  2  years

2-­‐5  years

6-­‐10  years

11-­‐15  years

16-­‐20  years

More  than  20  years

The  North General

RECOMMENDATION 5 | Give municipalities access to new revenue tools

• Local governments in Ontario facing a fiscal squeeze

• Concerned about their ability to continue providing high-level services to their citizens

• Despite expansion of responsibility, municipalities have access to limited sources of revenue

RECOMMENDATION 5 | Give municipalities access to new revenue tools

Projected Ontario Municipal Operating Costs to 2020 (in millions)

Source: Association of Municipalities Ontario (AMO), What’s Next Ontario? Imagining a prosperous future for our communities, 2015, 23

$33,968

$40,329

$45,318

2009 (Actual)

2015 (Projected)

2020 (Projected)

RECOMMENDATION 5 | Give municipalities access to new revenue tools

Ontario Municipal Expenditures, by Service Area 2014

Source: Ministry of Municipal Affairs and Housing, Financial Information Returns, 2014

General Gov't, 5%

Protection Services,18%

Transportation, 24%

Environmental Services,15%

Health/Emergency Services, 5%

Social Services (including housing),

22%

Recreation/Cullture, 10%

Planning/Development, 2%

RECOMMENDATION 5 | Give municipalities access to new revenue tools

Sources of Municipal Revenue, 2013

Source: Ministry of Municipal Affairs and Housing, Financial Information Returns, 2013

Property Taxes, 41.70%

User Fees,19.90%

Transfers,21.30%

Licenses and Permits, 2.60%

Other Revenues, 14.40%