Atlantic Canada's Urban Growth Agenda - Greater Halifax Partnership

• A central inventory of federally owned lands and buildings, their current and future use that could have the
potential for strategic urban redevelopment; and
• Removal or reduction of the capital gains tax on the restoration, preservation and adaptive reuse of heritage
buildings.
They also recommended that the National Sustainable Infrastructure Program have specific criteria,
performance measurements, rigorous evaluation and monitoring of all projects funded under this program. The
recommendations are currently under consideration and expected to be part of a formal national urban agenda in the
future.
5.2 Social Issues
Another key thrust of the national urban agenda involves the social health of Canadian cities. There is increasing
pressure on social infrastructure within Canada’s largest cities. Affordable housing, better integration of immigrants,
safe, accessible public spaces and environmentally-sustainable development.
5.3 Governance/Leadership
A key finding of the research relates to the issues of governance and leadership in the large urban areas in Canada.
Many of the new challenges facing municipalities are still formally provincial responsibilities (or joint) but the
municipalities are funding an increasing share and as they are becoming ‘urban’ issues (i.e. environmental, housing,
etc.) the pressure on the municipal level of government is increasing.
5.3.1 The fiscal imbalance
One of the interesting findings of the research relates
to the so-called fiscal imbalance between the federal,
provincial and local levels of government.
Municipalities incur significant costs associated with
development (such as new infrastructure and
increased local services). The greater the
development the greater the costs incurred by the
municipality. At the same time, the revenue derived
from property taxes and other sources does not
increase proportionately to the required investment in
new infrastructure and services.
61.0%
The City of Winnipeg recently completed an analysis 29.0%
of incremental tax revenue associated with economic
growth in the City from 1995 to 2001. This analysis
determined that the three main sources of tax
revenue for the federal and provincial governments
(personal income tax, corporate income tax and
sales tax) grew strongly during that time frame while
property tax revenue to the City actually declined by
13% (adjusted for inflation) (Figure 13). Winnipeg’s
conclusion was that without a new tax distribution
formula, the city has no incentive to support development in the community.
Figure 17: Changes in Taxation Revenue: Winnipeg Example
2001 compared to 1995 Adjusted for Inflation
Personal
Income Tax
Federal Provincial City
Corporate
Income Tax
40.0%
GST
Source: City of Winnipeg
19.0%
Personal
Income Tax
103.0%
Corporate
Income Tax
21.0%
PST
-13.0%
Property
Tax
2.0%
Business Tax
…Atlantic Canadian Context 31