A4

Stumble Upon

del.icio.us

Digg

Facebook

Print

Email

Speak Up

With a federal election apparently in the offing, Canadian mayors are pushing for a realignment of how cities are funded by other levels of government.

They've got a solid argument.

In North America and around the world, cities are where the population is growing most rapidly, because that's where the bulk of economic growth is occurring. But growth comes with a price tag: as new industries and new residents arrive, cities must expand and improve supporting infrastructure, from roads and public transit to water and sewage networks.

Cities take the financial hit for these improvements, even as new industries boost employment and commerce and home values rise. That's the taxes generated by business, property and trade overwhelmingly go to support other levels of government.

Take Greater Saint John as an example.

Southwestern New Brunswick is expected to lead the nation in job creation within a few years, thanks to construction of a new potash mine, the refurbishment of Point Lepreau, and major energy sector developments in Saint John. Approximately 92 cents of every tax dollar generated by this new growth will flow to the federal and provincial governments. With just eight cents on the dollar in new revenues, Saint John's municipal council will have to deal with demands for new infrastructure.

Moncton has experienced similar pressures; so have smaller communities that host substantial industries. The funding formula, as it stands, does not work.

In Saint John, the federal and provincial governments have made a commitment in principle to adopt a new approach. The Benefits Blueprint initiative is a proposal to reinvest a greater portion of tax revenues generated by new industrial activity at the community level. These funds will be used by community partners to address concerns that range from health care to affordable housing.

Canadian mayors are calling for more comprehensive reforms - a change in how municipal funding is calculated at the root level, so municipalities are equipped to deal with the challenges of growth. It's an argument federal and provincial politicians need to address, and New Brunswickers are in an excellent position to do so.

In just a short time, provincial commissioner Jean-Guy Finn will issue his report into municipal reform. His mandate was to examine the structure and organization of local governance in New Brunswick, including regional co-operation, property taxation, funding arrangements and the legislative framework required to change the system.

After a year's review and plenty of public consultation - and having already committed in principle to Benefits Blueprint - the Graham government soon will have an opportunity to redefine the provincial-municipal relationship. It needs to rebalance the equation, giving municipalities reliable new streams of funding while pushing for greater transparency and efficiency measures such as regional service delivery.