This document provides an overview of municipal affairs and issues facing local governments in Canada presented by Paul Young, a CPA and consultant. It discusses the powers and limitations of municipal governments as defined by provincial legislation. It also identifies several issues municipalities are facing such as infrastructure funding shortfalls, rising OPP costs, economic development challenges, and the need for reforms like addressing arbitration. Potential solutions proposed include fixing arbitration, consolidating agencies, re-evaluating council sizes, improving capital planning, and embracing new technologies.

1. MUNICIPAL AFFAIRS – ISSUES AND
SOLUTIONS – MUNICIPAL
GOVERNMENT
BY: PAUL YOUNG, CPA, CGA
DATE – OCTOBER 9, 2019

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
1. Constitution Powers
2. Town of Orangeville (F/S Sample)
3. City of Hamilton (F/S Sample)
4. Government Financial Reporting
5. Operational Issues
6. Capital Spending
7. Municipal Issues
8. Greenbelt
9. Blog – Infrastructure
10.Blog – Big City vs Rural
11.Blog – Liberal Party of Ontario – Waste and
Misinformation
12.Blog – Conservation authority
13.Blog – Property Tax
14.Blog – Municipal Affairs
15.Blog – Daycare
16.Blog – City of Toronto
17.Blog – Adam Vaughan and Joe Cresley
18.Blog – GAP Analysis (School Boards and Local
Government)
19.Tweet – City of Toronto

4. INTRODUCTO
RY
• Municipal government exist to provide programs and
services at the municipal level.
• Provincial governments in various municipal acts that
govern how municipalities operate across Canada
• Limitation on how municipal government can raise
taxation
• Powers over the size of government
• Approximately 98% of taxation comes from the
following areas
• Property Taxes
• User Fees
• Municipal government is responsible for the following
areas
• Emergency Services (Fire and Police)
• Infrastructure (Roads, Bridges, Sewer, Water
Treatment and lighting, etc)
• Parks and Recreation (pools, parks, arenas, etc)
• Other areas

5. MUNICIPAL ACT
Two Acts
• Municipal Act – 2001
• Toronto Act - 2006
Objective
The Municipal Act, 2001 (the Act) recognizes municipalities as
responsible local governments with a broad range of
powers. The Act balances increased local autonomy and
flexibility with requirements for improved accountability and
transparency of municipal operations.
• Source - http://www.mah.gov.on.ca/Page184.aspx

6. CONSTITUTIONAL POWERS
• Source - http://www.mah.gov.on.ca/Page184.aspx or https://www.amo.on.ca/AMO-Content/Municipal-101/How-Municipal-Government-Works or https://lop.parl.ca/About/Parliament/Education/ourcountryourparliament/html_booklet/three-levels-
“The notwithstanding clause isn’t something you toss around
lightly,” Smokey Thomas, president of the Ontario Public Service
Employees Union, said in a statement. “If Conservative MPPs
respect democracy and the judicial system, now’s their chance to
take back their party.”
Smokey Thomas – OPSEU Union President – September 12, 2018
Source -
https://www.canadianmanufacturing.com/regulation/this-is-
about-preserving-democracy-ford-defends-moves-on-council-
cutting-plan-219260/
Municipal Act
The provincial government by law can change the size of
government
Source - https://www.canlii.org/en/on/laws/stat/rso-1990-c-
m45/latest/rso-1990-c-m45.html or
https://news.ontario.ca/opo/en/2018/07/the-better-local-
government-act.html

7. 2018
ELECTION
ISSUES
Issues
1. Arbitration (arbitration is not based on the
municipalities ability to pay)
2. Crumpling infrastructure (move moneys
required for roads, bridges and sewers)
3. OPP costs continue to rise for municipalities
4. Economic development (creating new jobs)
5. Clean Technology (forcing clean technologies
on to municipalities without their consent)
6. Declining school enrolment forcing school
closures (ARC studies)
7. Lack of affordable housing
8. Rural vs Big City
9. Size of Council

8. 1. The grants are from the gas tax and build Canada fund
2. Many municipalities are struggling with a broken arbitration
system - http://business.financialpost.com/opinion/the-
ontario-laws-that-force-cities-to-keep-spending-more-on-
unionized-workers
3. Towns that switch to OPP see costs go up -
http://www.haliburtonecho.ca/opp-costs-too-high
4. Union Support – OPFFA -
http://www.cbc.ca/news/canada/toronto/ontario-political-
party-fundraising-largest-donors-1.3540674. 2014 election
seen municipal workers claiming their jobs would be cut and
that was not going to be case. 96% of the municipal budget
comes from local sources. There are grants, but those grants
are for infrastructure
5. Economic development –
http://www.windconcernsontario.ca/municipalities-demand-
halt-to-wind-power-development-in-ontario/ or
https://www.theglobeandmail.com/opinion/is-ontarios-land-
plan-driving-housing-prices-higher/article31894191/

9. LACK OF GAP ANALYSIS BY COUNCILORS
@TOAdamVaughan @joe_cressy since neither of you read Toronto F/S then I will present it to you:
TO has surplus of $1.4B (right) - https://www.toronto.ca/city-government/budget-finances/city-finance/financial-
reporting/annual-financial-report/
TO has the lowest property taxes in Ontario - https://ca.finance.yahoo.com/news/torontos-property-tax-rate-the-lowest-in-
ontario-report-184803281.html
There are systemic issues with muni govt like arbitration - https://www.cfib-fcei.ca/en/media/new-report-broken-arbitration-
system-causing-unsustainable-rise-municipal-costs
Where have you implemented AG report recommendations on waste?
https://toronto.ctvnews.ca/nearly-a-fifth-of-city-s-light-duty-fleet-collecting-dust-auditor-general-1.4397478 or
https://nationalpost.com/news/canada/christie-blatchford-shocking-ag-report-out-of-toronto-details-duplicity-and-
indifference
Daycare
https://www.thestar.com/news/gta/2019/10/08/760-affordable-childcare-spaces-at-risk-after-ontario-budget-cuts-city-staff-
say.html Council find ways to deal with changes in funding via doing gap analysis.

10. BLOG – GAP ANALYSIS (LOCAL GOVERNMENT)
• All munis and school boards must prepare their F/S including doing gap analysis. The problem is with leadership as they rather asked for money then take
a deep look at what is required to run their areas
• https://www.slideshare.net/paulyoungcga/gap-analysis-closing-down-budget-deficits-for-government-september-2017
• It is very clear that many people that are attacking Ford do not read AG reports or Drummond Reports or F/S or actually google mismanagement. Ontario is
a mess! Ford is doing his best to fix it! BTW: The so call billions quote on beer has neither been proven nor is accurate. Brewers Retail is not in compliance
with their past agreement which included allowing more micro breweries to be shelved at their location. I suggest you look at Brewers Retail F/S before
spouting on inaccurate information! https://www.slideshare.net/paulyoungcga/ontario-lcbo-and-brewers-retail-issues-facing-alcohol-distribution
• The left only knows how to use emotions, because facts just get away of a good cry! Here are my comments on fiscal management:
• It is time for municipal governments to undertake reforms as part of their fiscal mgmt. cycle - https://www.slideshare.net/paulyoungcga/2019-election-
municipal-and-local-government-analysis-and-commentary or https://www.toronto.ca/city-government/budget-finances/city-finance/financial-
reporting/ (Toronto has low property taxes as well as $1.2B surplus). Why is that not mentioned? How AG reports -
https://www.theglobeandmail.com/news/toronto/auditor-general-uncovers-waste-fraud-and-fake-sick-time-at-toronto-city-hall/article566311/
• All munis and school boards must prepare their F/S including doing gap analysis. The problem is with leadership as they rather asked for money then take
a deep look at what is required to run their areas
• https://www.slideshare.net/paulyoungcga/gap-analysis-closing-down-budget-deficits-for-government-september-2017
• Vacant government buildings - https://www.cbc.ca/news/canada/toronto/ontario-auditor-general-empty-government-buildings-1.4437910
(Annual Cost - Maintaining the empty sites is costing Ontario taxpayers $18.9 million a year, Auditor General Bonnie Lysyk found. But she's even
more concerned about the slow pace of the government's efforts to dispose of the unused propert
• Govt cutting red-tape sell land and property - https://www.insauga.com/the-ontario-government-is-selling-massive-amounts-of-land
• TDSB under utilized or empty schools - https://www.theglobeandmail.com/news/toronto/ontario-to-put-new-pressure-on-tdsb-over-underused-
schools/article23630307/
• Funding growth held - https://www.ctvnews.ca/canada/ontario-marginally-increases-school-board-funding-but-per-pupil-amount-drops-
1.4396534
• Liberals highlighted that 300 schools needed to be closed - https://globalnews.ca/news/3298540/education-minister-reveals-300-schools-in-
ontario-slated-to-close/
• Municipalities are not dealing with their cost to serve model https://torontoist.com/2015/08/what-the-citys-surplus-means/
• Bluewater Education - http://www.bayshorebroadcasting.ca/news_item.php?NewsID=104323 (selling of vacant schools)
• Elimination of the Catholic School Board could save billions - https://www.ctvnews.ca/canada/is-it-time-to-merge-the-ontario-school-systems-

11. LEAN
GOVERNMEN
T
• @justintrudeau is for big
government as he has never
called out the size of
government
• @Andrewscheer platform needs
to included tackling the size of
government.
• Great work by the McKinsey
group on calling out the need
for all levels of government
adopt automation as part of
streamlining government
operations.
• https://www.mckinsey.com/ind
ustries/public-sector/our-
insights/how-governments-
can-harness-the-power-of-
automation-at-scale?cid=other-
pso-twi-mps-mps-oth-1908

12. FORD / CUTS
Source - https://www.cbc.ca/news/canada/toronto/ont-municipal-funding-1.5251772?cmp=rss
https://www.municipalworld.com/feature-story/big-city-
mayors-seek-modernized-federal-relationship/
The mayors of the nation’s largest communities are united in
calling for a closer federal-municipal relationship to better
serve Canadians.
Are you going to start dealing with systemic issues or put more
blame on both the provinces and the federal govt?
https://www.slideshare.net/paulyoungcga/2019-election-
municipal-and-local-government-ontario-and-canada-may-
2019
@joe_cressy @JohnTory @m_layton
https://www.slideshare.net/paulyoungcga/2019-election-issues-municipal-and-local-government-issues-and-
analysis-may-2019
It is abundantly clear that you do not read AG reports as you would see the waste and mismanagement in city
government!
1. Audit Reports - https://toronto.ctvnews.ca/auditor-general-says-city-saved-35m-in-2018-some-
employees-dismissed-amid-complaints-1.4297726
2. City Leases - https://www.cbc.ca/news/canada/ottawa/ottawa-city-leases-audit-1.5089940
3. Wastewater - https://www.stcatharinesstandard.ca/news-story/8894854-report-examines-decisions-that-
cost-region-2-1-million/
@FCM_online

13. CITY OF TORONTO
•
https://torontosun.com/opinion/columnists/lilley-city-begs-for-more-money-while-
wasting-your-cash
• Look who Toronto has elected @joe_cressy @m_layton that neither read a F/S and AG
reports nor care to read the reports.
• It should be mandatory that all politicians take accounting and public finance courses
before running for office!

14. BLOG – MUNICIPAL GOVERNMENT
• https://www.municipalworld.com/feature-story/big-city-mayors-seek-modernized-
federal-relationship/
• The mayors of the nation’s largest communities are united in calling for a closer federal-
municipal relationship to better serve Canadians.
• Are you going to start dealing with systemic issues or put more blame on both the
provinces and the federal govt?
• There are systemic issues with local government:
https://www.slideshare.net/paulyoungcga/2019-election-municipal-and-local-
government-ontario-and-canada-may-2019

15. WHAT’S NEXT
• Fixing of a broken arbitration
• Consolidation of agencies and departments
• Re-looking at the size of council
• Re-looking at urban planning - https://www.slideshare.net/paulyoungcga/urban-planning-issues-facing-
urban-planners-april-2019
• Cleaning up of brown sites
• Expanding P3 options
• Better capital planning (i.e. dedicated funding from federal and provincial governments)
• Stop pushing social policy at all cost
• More value for money auditing
• Embracing technology / automation

16. OTHER
SOURCES
• If you like to learn
more about trade
and/or other
subjects as part of
your professional
learning and
development then
feel free to review
my material on
https://www.udem
y.com/ (search Paul
Young CPA CGA