It is very easy to print money via taxation, but it is more difficult to fix systemic issues with delivering of taxation to various municipal programs. This presentation includes a look at all levels of government undertaking more value for money audits. Some of the value for money audits could be set up via automation through triggers as way to ensure taxpayers dollars are maximised as part of delivering program spending.

1. GOVERNMENT POLICIES AND
ISSUES – MUNICIPALITIES
AND CITIES – CANADA
BY: PAUL YOUNG, CPA, CGA
DATE: JULY 22, 2017

2. PAUL YOUNG - BIO
• CPA, CGA (1996)
• Financial Solutions (FOPM/FPM)
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Advance Technology and
Market Entry
• SME – Supply Chain Management
• SME – Business Strategy and
Restructuring
Contact information:
Paul_Young_CGA@Hotmail.com

3. AGENDA
• Issues facing Municipalities and Cities
• Capital Spending
• Revenue sources
• Funding/Infrastructure
• Compensation
• Pensions
• Water Act (Regulation)
• Green act
• Downloading
• Arbitration issues

4. • Here are key issues facing the cities
• Development fees are drying up due to lack of land available for development
• Arbitration – OPP settlements have put pressure on municipal budgets due to matching of
those settlements. OPP Costs - http://www.durhamregion.com/news-story/4414447-
municipalities-pushing-back-against-opp-costs/ or Arbitration -
http://www.thestar.com/opinion/editorialopinion/2012/02/28/ontario_municipalities_struggl
e_with_cost_of_essential_services.html or http://www.parrysound.com/news-story/5447183-
new-opp-billing-model-angers-municipalities/ or
https://ca.news.yahoo.com/blogs/dailybrew/are-police-officers-getting-paid-too-much-
174554130.html
• OMERS – OMERS is underfunded as such the municipalities will be part of the pension solution
http://www.omers.com/corporate/news_article.aspx?newsid=7000
• Transportation – Why are you not pushing Ontario Government for an integrated solution for
transit including using GO with TTC as well as other Transit systems to help move people
around the city?
http://www.metrolinx.com/en/docs/pdf/board_agenda/20140905/20140905_BoardMtg_PPI_
Report_EN.pdf
• Size of Government – You increased your staff budget when other parts of the economy have
either cut or reduced their costs. You have asked other departments to cut, but you grew your

5. • Here are key issues facing the cities
• Build Canada and Gas Tax Funds link Municipalities: http://www.slideshare.net/paulyoungcga/municipalities-canada
• Economic Development - Key Market Indicators KPIs for January 2015 - http://www.slideshare.net/paulyoungcga/key-
market-and-industry-indicators-for-canada-january-2015
• Hydro Rates/Rental - http://www.slideshare.net/paulyoungcga/power-generation-canada
• Housing Prices - http://www.cbc.ca/news2/interactives/housing-canada/
• Property Taxes - http://c.ymcdn.com/sites/www.realpac.ca/resource/resmgr/research/2013_realpac_-_altus_propert.pdf
• Greenbelt Legislation - http://www.mah.gov.on.ca/Page195.aspx.
• CPPIB Proposal - http://news.nationalpost.com/2015/01/23/kelly-mcparland-justin-trudeaus-hidden-agenda/
• OPP Costs - http://www.durhamregion.com/news-story/4414447-municipalities-pushing-back-against-opp-costs/
• Arbitration -
http://www.thestar.com/opinion/editorialopinion/2012/02/28/ontario_municipalities_struggle_with_cost_of_essential_servi
ces.html.
• Private Sector –vs- Public Sector - http://www.cfib-fcei.ca/english/article/6301-a-closer-look-at-private-public-sector-
wage-gaps.html.
• P3 Failures http://www.auditor.on.ca/en/reports_en/en14/305en14.pdf
• Corporation taxation http://www.slideshare.net/paulyoungcga/corporation-taxation-canada-44675640.
• Internal trade barriers - http://www.slideshare.net/paulyoungcga/internal-trade-canada. Wynne will not budge on union
contracts - http://www.theglobeandmail.com/news/politics/saskatchewan-premier-wall-threatens-retaliation-over-

6. CAPITAL SPENDING
https://www.fraserinstitute.org/sites/default/files/myths-of-
infrastructure-spending-in-canada.pdf
Commentary
• 1993-2006 the
liberals were the
ruling government
• 2006-2015 the CPC
were the ruling
Government
• CPC introduced both
the Gas Tax and
Build Canada Funds

7. GOVERNMENT SPENDING

8. GAS TAX FUND

9. BUILD CANADA FUND

10. FEDERAL GOVERNMENT SPENDING ON
INFRASTRUCTURE

11. FEDERAL GOVERNMENT SPENDING ON
INFRASTRUCTURE

12. COMPENSATION
http://www.cfib-fcei.ca/english/article/7114-
public-sector-workers-earn-more-work-less.html

13. DOWNLOADING
T here are a range of ways this happens, but some of the most common forms of
senior government downloading include:
• Direct offloading of federal or provincial programs and/or responsibilities without
adequate funding or revenue tools;
• Regulatory changes that require spending by municipalities.
• Enforcement of federal and provincial regulations;
• Cancellation of programs and services that are needed or expected by the public;
• Reduction or cancellation of senior government transfers or program funding;
• Programs that are paid for municipally, but where municipalities have little control
over costs;
• Grant-based or 'one time only' funding of downloaded or new programs
encouraged by senior governments;
• Underinvestment by senior governments in infrastructure maintenance, renewal
and replacement; and Failure to adequately address issues or problems that should
fall under provincial or federal jurisdiction
Source: http://thetyee.ca/Opinion/2014/09/24/Downloading-Steamrolls-Cities/ or
http://rabble.ca/blogs/bloggers/municipal-matters/2014/09/municipalities-
struggle-to-cover-costs-federal-and-provinci

14. PENSION FUNDING
Funding of pensions is becoming an issue for many cities/municipalities. The latest to come forward has been the city of Houston
- http://www.click2houston.com/news/mayor-turner-to-announce-historic-pension-reform-plan.
The issue has been market returns a pension funds have a portion tied money market investments. Money market investments
are driven by interest rates.
Shortfall in pensions are the responsibility of the municipalities. Municipalities are under pressure as such dealing with shortfalls
in pension plan will be put pressure on taxation as well as delivery of program spending.
Pensions plans also driven by contributions/matching by various municipalities. The problem is that public sector has not moved
enough when it comes to salary/pension reforms - http://www.cfib-fcei.ca/english/article/7114-public-sector-workers-earn-
more-work-less.html
Here are key plans in Canada
• OMERS - http://www.theglobeandmail.com/report-on-business/omers-posts-67-return-in-2015-bolstered-by-
infrastructure-real-estate-assets/article28925778/. OMERS is underfunded by about 10%. OMERS is investing heavily into
infrastructure projects, like transportation systems.
• British Colombia - http://www.fic.gov.bc.ca/pdf/pensionplans/ReportOnPensionPlans2016.pdf - Issues with unfunded
liabilities - https://www.moodys.com/research/Moodys-US-government-pension-shortfall-overshadowed-by-Social-
Security-Medicare--PR_346878 http://business.financialpost.com/news/fp-street/inside-the-risky-strategy-that-made-
canadas-biggest-pension-plans-the-new-masters-of-the-universe
What needs to happen:
• More regulations over pension funding including risk testing as well as ensure there are plans to make the plans including
solvent.
• Pension/Salaries reforms to close the gap between private and public sector payroll gaps
• Fixing a broken arbitration systems

15. ARBITRATION ISSUES
• OPP Costs - http://www.durhamregion.com/news-
story/4414447-municipalities-pushing-back-against-opp-
costs/
• Arbitration -
http://www.thestar.com/opinion/editorialopinion/2012/02/28
/ontario_municipalities_struggle_with_cost_of_essential_service
s.html

16. WATER ACT
• http://www.thestar.com/news/queenspark/2014/12/09/public
private_financing_cost_ontario_taxpayers_8_billion_auditor_say
s.html

17. MUNICIPAL PENSIONS

18. REVENUE

19. GREEN ACT
• http://www.lfpress.com/2014/12/02/pov-rural-urban-divide-
blowing-in-the-wind
• http://www.windconcernsontario.ca/ontario-rural-citizens-no-
say-in-wind-farm-development/

20. JUSTIN TRUDEAU /FUNDING – MARCH 2017
• Fiscal Monitor

21. LPC/ INFRASTRUCTURE FUNDING
Source - http://www.cbc.ca/news/politics/infrastructure-pbo-delays-
CBC News – February 2, 2017

22. INFRASTRUCTURE BANK
Source - http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/fp-
comment/jack-m-mintz-beware-a-new-infrastructure-bank-canadas-had-enough-of-these-failures-
already&pubdate=2017-05-19

23. VALUE FOR MONEY
Source - https://www.hamiltonnews.com/news-story/7044004-ontario-minister-brushes-off-
municipalities-demand-for-audit-on-npca/

24. VALUE FOR MONEY
Source - https://www.hamiltonnews.com/news-story/7044004-ontario-minister-brushes-off-
municipalities-demand-for-audit-on-npca/

25. VALUE FOR MONEY AUDITS
• Source - Independent audit of a not-for-profit organization
(government agency or unit, charity, trust, etc.) to assess the
effectiveness and efficiency of its utilization of funds. It is
employed where the standard commercial performance (profit
oriented) measures cannot be used. Also called value for money
analysis
Source - http://www.businessdictionary.com/definition/value-
for-money-audit.html
• Municipal government need to start looking at including value for money audits as part
of review of all their policies. Government costs need to be review as part of
effectiveness of program spending.