"Municipalities in which the predominant land use is that of single families or other low-density forms of accommodation find that real-estate taxes simply don’t meet the cost of providing hard (street lighting, garbage pickup etc.) and soft (libraries, parks etc.) services. To continue building cities in this way can only plunge municipalities even deeper into debt.
Given our constitutional constraints and the extent of low-density suburban growth already in place, how do we address this seemingly intractable condition?
First, the federal government could review the way in which it has provided infrastructure funding, which has not been made on the basis of the most effective long-term benefits. In 1997, Ottawa created the Canada Foundation for Innovation, with $4-billion sequestered for health care and biomedical research. Applicants compete on the basis of objectives, means and targeted outcomes. The fund has attracted the very best from around the globe and stimulated research that brings kudos to Canada and will be of enormous benefit worldwide.
Why not apply this model to infrastructure funding? The federal government could demand performance standards designed to reduce the cost of operating cities and, at the same time, improve their productivity and quality of life. Cities with proposals that best met the performance standards would win the necessary funding. Consideration of this model is particularly timely, as Ottawa is to hold talks with the provinces and cities on what a long-term infrastructure plan should look like. (The Building Canada Plan expires in 2014.)
An essential criterion might be to improve the modal split – that is, to increase the ratio of public ridership versus automobile use. Another might be to increase average residential density. (This wouldn’t mean no single-family housing, only a more balanced residential portfolio.) One result would be that investment in transit could pay its way.
Second, the provinces could introduce full cost pricing. Currently, they fund expressways, water and sewage trunk services – in effect, subsidizing the developer at the expense of the city. Such a measure would benefit the city’s configuration and its servicing costs.
And third, at the municipal level, improvements can be made through zoning and city bylaws. These could be rewritten, for example, to allow development of any land use, whether residential, commercial or industrial, only within 1,000 metres of a transit stop. This would tie land use and density to transportation capacity (Planning 101) and also ensure jobs accessibility and reduce commuting times. It also would encourage the integration of all modes of transportation across city regions."
