September 10, 2012 - City of Saint John

City of Saint John’s Position Paper on Local Governance Reform 2012
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City of Saint John
Position Paper on Local Governance Reform
September 2012
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City of Saint John’s Position Paper on Local Governance Reform 2012
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INTRODUCTION
On July 30th, 2012, the City of Saint John Common Council committed to developing a position on local
governance reform, which would be shared with the City’s partners, including the Government of New
Brunswick. The objective behind developing the City’s position was to strengthen the current local
governance system for the benefit of the City of Saint John, municipalities, local service districts and the
Government of New Brunswick. While this position paper should articulate the City’s direction on local
governance reform, we also hope it contributes to the broader pan-provincial conversation.
The City of Saint John acknowledges the difficulties in reforming
local governance, and is encouraged by the Government of
New Brunswick’s announcement in December 2011 for an
Action Plan for a New Local Governance System in New
Brunswick. The 23 different studies to examine local
government in New Brunswick over the past 20 years are
indicative of the challenges and complexities tied to local
governance reform.1 The City of Saint John believes that New
Brunswick’s local governance structure is well-served by
increased coordination and cooperation, and the City will use
this opportunity to expand upon long-standing relationships
with the Government of New Brunswick, municipalities
within the region, the Cities of New Brunswick Association,
the City of Moncton and City of Fredericton, as well as
municipalities and local service districts from across New
Brunswick.
The current dialogue on local governance reform in New Brunswick cannot be removed from the global
economic context as well as the financial challenges faced by all three levels of government. Similar to
the Province’s Government Renewal Program, the City of Saint John has also initiated a core service
review, which mimics efforts from all governments to identify savings and new revenue streams. In
these difficult times, governments have a responsibility to cooperate in order to support a strong quality
of life for citizens. It is this quality of life indicator that must be considered in all governmental austerity
measures, including those measures that impact funding between two levels of government.
1
Finn, Jean-Guy, “Building Stronger Local Governments and Regions: An Action Plan for the Future of Local
Government in New Brunswick,” November 2008, Page 6 [available at:
http://www.gnb.ca/cnb/promos/flg/RSDprofiles-e.asp]
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The funding and legislative tools allotted to local governments by
other levels of government play a central role in supporting a
strong quality of life for citizens. Whether it is through road
infrastructure, clean water, wastewater, transit services,
safe neighbourhoods, crime prevention, arts and culture,
or recreational facilities, municipalities are inherently
involved in the delivery of services that impact the lives
of citizens. These services support an environment where
citizens and businesses want to invest in their
communities, continue their education, pursue careers,
and raise families.
The City of Saint John is committed to work collaboratively with
all levels of government to support citizens, which is why the City
embedded this principle in its 20 year community goals:
“Our City plays a leadership role with other local, provincial and national elected officials to
address common challenges and opportunities for our community.”2
Similar to what the Government of New Brunswick is experiencing, the City of Saint John has had to rely
on alternative measures to cover financial shortfalls, as costs to deliver services have increased. The
majority of Saint John’s funding shortfall has been recovered by tax-rate increases, tax-base growth and
internal austerity measures. With one of the highest tax rates in the province, the City of Saint John
must now be cautious not to simply seek additional revenue through property tax, as it may result in
adversely affecting Saint John’s competitiveness with other centres in the southern region, New
Brunswick, and Atlantic Canada. This signifies that the City must have the financial and legislative tools
to fulfill its service mandate in an efficient and effective manner.
PART ONE: GENERAL
A) The Government of New Brunswick should provide more clarity on the role all local governments
will have in “rebuilding a stronger, healthier, and more innovative province.”3
 The discussion on local governance reform is currently focused on very specific components of
the local governance system, instead of a discussion on the larger issue of redefining or
strengthening the relationship between the Government of New Brunswick, local governments
and their respective roles and responsibilities.
2
City of Saint John, “Our Saint John,” November 2007 [available at: http://www.saintjohn.ca/en/home/mayorand-council/communityvision.aspx]
3
Premier David Alward, “State of the Province Address,” January 2012 [available at:
http://www2.gnb.ca/content/gnb/en/departments/premier/promo/sop2012.html]
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B) The City of Saint John believes that the current local governance reform package should encourage
the development of strong cities in New Brunswick.
 Urban New Brunswick has played a vital role in the development of the social, economic and
cultural landscape of New Brunswick, and it has a key role in
the future. Cities in New Brunswick support their
neighbouring communities and indeed the continued
strength of New Brunswick. In addition, the
Province’s tax revenue is inextricably tied to a
strong and vibrant urban New Brunswick. If the
Province decreases the resources available to
cities, the impact will be felt across New Brunswick.
 The City of Saint John is the industrial and
commercial hub of New Brunswick, and is proud to
house an environment ideal for studying, working,
living and investing. Reforms to New Brunswick’s local
governance system should build on the City’s economic
contribution and enhance the City’s ability to generate economic
activity.
 The City of Saint John believes that urban centres must be active
partners in the Province’s growth strategy, but not at the expense of
towns, villages and local service districts. All local governments play a role
in New Brunswick’s future, and should be actively involved in its development. The City of Saint
John is interested in receiving greater direction and vision from the Province on the role urban
municipalities will play in New Brunswick’s future.
C) We believe the development and implementation of the Province’s local governance reforms will
benefit from on-going direct local government consultation.
 The Province’s consultation method associated with the proposed reforms has been directed
towards umbrella municipal associations to a greater extent than it has been directed towards
local governments. More so, the Province can benefit from more fully engaging the public
administration of local governments within discussions on an on-going basis.
D) We recommend that the Government of New Brunswick clarify all aspects of the intended reform
components before implementing individual facets of the reform in an incremental fashion.
 Local governments must understand all the components of the reform package before the
Province expects municipalities to provide meaningful commentary on one particular
component. The local governance system is an integrated system, where the numerous facets of
the system rely on each other. The Province should be cautious in their implementation of
particular pieces of the reform without providing direction on all other matters. An incremental
approach to policy development is a concerning one, and as we are all striving to build a modern
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and sustainable local governance system, the City encourages the Province to reconsider its
approach to policy development.
PART TWO: FISCAL REFORM
A) Local governments are seeking increased provincial transfers truly commensurate with their service
responsibility, whether through property assessment, the unconditional grant or any future
community funding arrangement.
 Local governments across New Brunswick, including the City of Saint John, are compromised in
their ability to deliver a strong quality of life to citizens because of lack of financial resources and
legislative tools. This local governance reform process cannot result in fewer resources for local
governments, nor can it result in the creation of additional responsibilities without additional
resources, as it is our belief that such actions may have an adverse effect on the quality of life of
citizens.
 The City of Saint John actively participated in research and deliberation associated with the Finn
Report, and continues to believe that a transfer of additional tax room in lieu of the
unconditional grant is a better long-term approach.
B) The distribution of the unconditional grant must account for the services, responsibilities and the
fiscal capacity of local governments to deliver such services.
 The financial capacity of the City of Saint John is constantly challenged because of the
geographical size of the municipality, which requires a multitude of residential and industrial
services and infrastructure. In addition, the City also houses pockets of extremely dense
residential areas with ageing infrastructure, which also has a financial impact on the City’s ability
to deliver strong and reliable services to citizens. Finally, with a poverty rate near 20 % of the
population, it must be recognized that residents’ ability to pay is not limitless.
 As indicated in the 2007 report prepared by the Cities of New Brunswick Association, “any
changes to the provincial/municipal funding arrangement needs to adhere to the principles of
fiscal autonomy, stability, predictability, simplicity, accountability, neutrality and especially
equity and fairness.”4 More adequate funding from the Government of New Brunswick will
allow for more strategic long-term decision-making on behalf of local governments.
4
Cities of New Brunswick Association, “The Future of Provincial/Municipal Relations: A Vision for New Brunswick,”
2007, page 11.
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C) In order to maintain the integrity of the property assessment system, we believe property
assessment should be uniform, market-based, and at arm’s length from all governments.
 The Government of New Brunswick’s intention to permanently freeze
property assessment for seniors5 impacts not only tax revenue for the
Province, but will also impact the limited property tax revenue to local
governments. It will also introduce distortions in what should be a
market-based assessment system.
PART THREE: BOUNDARY/SERVICE REFORM
A) The voting authority within regional service commissions should
represent the proportional size and contribution of local governments.
 While the City of Saint John represents approximately 60% of the
total population and property assessment of regional boundary
#9, the City has been allocated one vote in a commission of nine
voting members. Commissions should uphold the same values and
principles that all government entities strive to maintain, which includes
accountability, representation by population and democracy.
B) The introduction of regional service commissions should not compromise
existing collaboration within the region and it is our hope that the
commission builds on existing collaborative capacity.
 The City of Saint John has played a leadership role in encouraging
collaboration and the sharing of infrastructure and services with
neighbouring communities. The City of Saint John is motivated to
leverage its existing services, resources, and infrastructure as a
cost-sharing opportunity for the City and its neighbouring
communities in the delivery of services throughout the region.
C) The City of Saint John’s municipal plan must not only be upheld, but also contribute to regional
plans through the regional service commission.
 The City of Saint John has undergone an award-winning process in developing a strong and
focused municipal plan. The outcome is a plan that manages the City’s long-term direction, not
only for planning, but for numerous components of the City’s services, infrastructure, and
operations. We believe Plan SJ should play an important role in supporting the future regional
plan for the commission.
5
Progressive Conservative Party of New Brunswick, “Putting New Brunswick First… For a Change,” September
2010, page 14.
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D) Planning across New Brunswick would benefit from simple and concise regulations and policy
statements from the Province, which would be actualized by regional
commissions and local governments all while setting a sustainable path
for New Brunswick.
 In addition, the Province should strive to align its key
service boundaries (Department of Transportation,
Department of Environment and Local Government,
Economic Development) within the new regional service
commissions, in order to maintain consistency and
simplicity in government services and programming.
PART FOUR: LEGISLATIVE REFORM
A) The permissive legislative approach has been well-received by local
governments in other provincial jurisdictions, and the Province is
encouraged to continue their pursuit of a permissive relationship with local governments.
 Most provinces (Alberta, British Columbia, Saskatchewan, and Manitoba, among others) have
introduced permissive legislation for local governments, and the result has been positive for
provincial governments and local governments. The permissive approach is recognized as a
means to empower local governments to respond to emerging local issues in a timely and
effective manner. The permissive framework also encourages experimentation amongst and
between similar local governments to address common issues, which in turn results in a
sustainable and progressive approach to local governance.
 The Government of New Brunswick should not be prevented from modernizing its legislative
relationship with local government because of the limited capacity of some local governments.
If need be, permissive legislation should be enacted for the use of those local governments that
have the capacity to utilize such authority.
CONCLUSION
The City of Saint John is encouraged by the Province’s reforms, and the Province’s determination in
introducing important and needed changes to New Brunswick’s local governments. The City will use this
opportunity to expand upon long-standing relationships with its partners, which includes the
Government of New Brunswick. The City urges the Province to pursue a comprehensive and integrated
approach to reform that will enhance the ability of cities and all local governments to contribute to the
wealth and well-being of New Brunswick.
While the City of Saint John is energized by the Province’s local governance reform package, growing
urbanization of the New Brunswick population and economy coupled with infrastructure challenges
necessitates a renewed fiscal relationship that strengthens local governments, and subsequently, New
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City of Saint John’s Position Paper on Local Governance Reform 2012
Brunswick. This new funding arrangement is needed to deliver the infrastructure and services for
economic growth and improved quality of life for citizens. The City of Saint John hopes this position
paper contributes to the pan-provincial discussion on local governance reform, and we look forward to
continuing the conversation.
For more information, please connect with:
The City of Saint John
P.O. Box 1971
Saint John, New Brunswick E2L 4L1
Email: [email protected]
Phone: 506-658-4022
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City of Saint John’s Position Paper on Local Governance Reform 2012
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